How to start a nonprofit in Connecticut

Short answer: To start a nonprofit in Connecticut, you incorporate by filing a Certificate of Incorporation (Nonstock Corporation) with the Connecticut Secretary of the State ($50 as of 2026), get a free EIN from the IRS, adopt bylaws, and seat a board. Then comes the part people miss: a nonprofit is not automatically tax-exempt, so you file IRS Form 1023 (or 1023-EZ) to become a 501(c)(3). On the Connecticut side, you file the Organization and First Report with the Secretary of the State within 90 days, register with the Department of Consumer Protection (DCP) Public Charities Unit before you fundraise, and — good news here — Connecticut actually does exempt qualifying 501(c)(3) purchases from sales tax, claimed by handing retailers Form CERT-119. The charitable registration is the step a church can often skip but a general nonprofit cannot, so plan for it from day one.

The federal core — EIN, bylaws, board, and the 501(c)(3) application — is the same in every state. For the full national walkthrough, read how to start a nonprofit; this page focuses on the Connecticut layer stacked on top of it, where the state-specific forms, fees, and agencies actually live.

The formation steps that are the same anywhere

Forming a nonprofit in Connecticut follows the standard checklist, and most of it is federal rather than state-specific:

1. Incorporate as a nonstock (nonprofit) corporation — the Connecticut-specific part, covered in detail below.
2. Get an EIN — a free federal tax ID from the IRS, applied for directly at irs.gov. Never pay a third party for one; the EIN is always free.
3. Adopt bylaws — the organization’s internal rulebook for decisions, leadership, and money. Start from a proven document rather than a blank page; see nonprofit bylaws for what to include.
4. Seat a board of directors who govern the organization, set policy, and hold it accountable.
5. Apply for 501(c)(3) with Form 1023 — this is the step that turns a nonprofit corporation into a tax-exempt charity. Unlike a church, an ordinary nonprofit is not automatically exempt; you must file IRS Form 1023 (or the streamlined Form 1023-EZ if you qualify) and receive a determination letter (IRS, applying for 501(c)(3) status). The full path is in how to start a 501(c)(3).
6. Open a bank account in the nonprofit’s legal name using the EIN and formation documents.
7. Set up the books on fund accounting from day one, before the first grant or donation arrives.

Each of these is walked step by step in the national formation guide linked above. The rest of this page is the Connecticut layer on top.

Incorporating a nonprofit in Connecticut

Connecticut creates the nonprofit as a legal entity when you file a Certificate of Incorporation (Nonstock Corporation) with the Connecticut Secretary of the State. The filing fee is $50 as of 2026, with an optional $50 expedite add-on; confirm the current amount with the Connecticut Secretary of the State, since fees change. You can file online through the Business.CT.gov portal or by mail to Hartford, and standard processing typically runs around three business days.

A nonstock corporation is simply Connecticut’s term for a corporation that issues no shares of stock — the form a nonprofit uses. The Certificate of Incorporation asks for the nonprofit’s name, its registered agent in Connecticut, and its statement of purpose. Two clauses belong in that purpose statement, because the IRS will look for them when it reviews your 1023:

• A 501(c)(3) purpose clause stating the organization is formed exclusively for charitable, religious, educational, or other exempt purposes.
• A dissolution clause stating that if the nonprofit closes, its assets pass to another 501(c)(3) organization, not to any individual.

Getting that language right at formation saves an amendment later. The full breakdown of what these documents need is in articles of incorporation. Connecticut’s nonstock corporation statute does not set a hard minimum number of directors — the count is fixed in your certificate or bylaws (Connecticut General Statutes, Chapter 602) — but three unrelated directors is the practical standard, and the IRS treats a one-person board as a red flag on the 1023.

One follow-up the state requires of every new corporation: within 90 days of filing your Certificate of Incorporation, you must file the Organization and First Report with the Secretary of the State, which carries a $50 fee as of 2026. The report records your officers, directors, and addresses on the public record; confirm the fee with the Connecticut Secretary of the State. After that, nonstock corporations file an Annual Report to keep the registration in good standing.

Registering to fundraise in Connecticut

Here is the step that trips up nonprofits coming from a church background, where it usually does not apply: Connecticut requires most charities to register with the Department of Consumer Protection (DCP), Public Charities Unit before they solicit a single donation. A church taking offerings can often skip this; a general nonprofit asking the public for money cannot. The requirement comes from the Connecticut Solicitation of Charitable Funds Act, which says an organization must register “prior to the commencement of solicitation” (Connecticut DCP, charitable solicitation registration).

Registration runs through the state’s eLicense portal, and the initial fee is $50 as of 2026, with a $50 annual renewal tied to your fiscal year. Confirm both with the Connecticut DCP before filing, since fees change. The renewal requires a financial report for your prior fiscal year, so the registration is not one-and-done — it tracks your finances each year you fundraise.

There is a real exemption for small nonprofits, and it is worth knowing before you pay anything. An organization that normally receives less than $50,000 in contributions annually and does not compensate anyone primarily to conduct solicitations can claim exemption from registration by filing Form CPC-54, with no fee (Connecticut DCP, charitable funds act). “Normally” means you met the threshold in two of the last three years; a brand-new nonprofit can make a good-faith estimate. The catch: hire a paid fundraiser, or cross $50,000, and the exemption falls away and full registration kicks in. Treat the exemption as a temporary fit for a genuinely small operation, not a permanent escape hatch.

Claiming the Connecticut sales tax exemption (CERT-119)

Now the part Connecticut gets right where many states do not: the state does exempt qualifying 501(c)(3) organizations from sales and use tax on what they buy. There is no application to fill out and no permit to wait on — the exemption rides on your federal determination letter.

The mechanism is Form CERT-119, the certificate for purchases by qualifying exempt organizations. Once you hold your IRS 501(c)(3) determination letter, you complete CERT-119, attach a copy of that letter, and give it directly to the retailer at the time of purchase — you do not send it to the Department of Revenue Services (Connecticut DRS, tax exemption for nonprofits). The retailer keeps it on file and stops charging you sales tax on qualifying purchases. To qualify, the purchase has to be made by the organization, used exclusively for its exempt purposes, and paid for with organization funds.

A note on the old paperwork: Connecticut stopped issuing E-number exemption permits on July 1, 1995. If your organization is older and still holds one, the state honors it; everyone forming today simply uses the federal determination letter with CERT-119, no E-number required. Confirm the current certificate and rules with the Connecticut DRS, since forms get revised.

On the income side, a 501(c)(3) is generally exempt from the Connecticut corporation business tax once it holds federal exemption. The Department of Revenue Services asks the organization to submit a copy of its IRS determination letter to the agency’s Registration Section so its records reflect the exempt status (Connecticut DRS, state tax guide for nonprofits). Unlike states with a standalone minimum franchise tax, Connecticut does not bill an exempt nonprofit a flat annual income tax for simply existing.

Connecticut filing at a glance

The table below maps each step to its agency, form, and cost. Treat the fees as accurate as of 2026 and confirm with the listed agency, since Connecticut fees change.

What you’re doing	Agency	Form	Fee (as of 2026)
Incorporate the nonprofit	CT Secretary of the State	Certificate of Incorporation (Nonstock)	$50 (confirm)
File the first report	CT Secretary of the State	Organization and First Report (within 90 days)	$50
Get a federal tax ID	IRS	EIN application (online)	Free
Apply for 501(c)(3) status	IRS	Form 1023 or 1023-EZ	$600 / $275 user fee
Register to fundraise	CT DCP, Public Charities Unit	Initial registration (CPC-54 to claim exemption)	$50 initial, $50 renewal
Claim sales tax exemption	CT DRS	CERT-119 (given to retailer)	No fee
Confirm income tax exemption	CT DRS	Submit IRS determination letter	No fee

Setting up the books once the nonprofit exists in Connecticut

Once the entity is formed and the exemptions are in place, the work shifts from one-time paperwork to the monthly routine — and that routine is where nonprofits either hold together or quietly fall apart. A nonprofit holds money in trust for the people and purposes it serves, much of it restricted by donors or grant terms, so it tracks money by fund rather than as a single bottom line. Set the books on fund accounting before the first grant lands, keep the giving records donors need, and document that the board reviews the finances; the discipline is covered in nonprofit accounting. The Connecticut angle to keep on your calendar is the DCP renewal — that annual charitable registration filing requires a financial report, so the books you set up now are exactly what you will hand the state each year to stay in good standing.

FAQ

How much does it cost to start a nonprofit in Connecticut? The required state cost is modest. The Certificate of Incorporation (Nonstock) is $50 as of 2026, the Organization and First Report due within 90 days is another $50, and the DCP charitable registration is $50 — so the Connecticut paperwork runs about $150 plus your time. The bigger line item is federal: the IRS charges a $275 user fee for Form 1023-EZ or $600 for the full Form 1023, which is what actually makes you a 501(c)(3). The CERT-119 sales tax exemption has no fee. A small Connecticut nonprofit can be stood up properly for a few hundred dollars once you include the federal exemption application.

Do you have to register with the Connecticut Department of Consumer Protection? Yes, in most cases. Connecticut requires charities to register with the DCP Public Charities Unit before soliciting donations under the Solicitation of Charitable Funds Act (Connecticut DCP). This is separate from incorporating with the Secretary of the State and separate from your IRS 501(c)(3) application. The exception: a nonprofit that normally receives under $50,000 a year and pays no one primarily to fundraise can claim exemption with Form CPC-54.

Does Connecticut exempt nonprofits from sales tax? Yes, for qualifying 501(c)(3) organizations. Once you hold your IRS determination letter, you complete Form CERT-119, attach a copy of that letter, and give it to the retailer at purchase — no application to DRS and no permit needed (Connecticut DRS). The purchase has to be made by the organization, for its exempt purposes, and paid with organization funds.

How long does it take to start a nonprofit in Connecticut? The Connecticut incorporation itself is quick — the Secretary of the State often processes a nonstock Certificate of Incorporation in about three business days, faster with the paid expedite option. The slow part is federal: the IRS can take anywhere from about a month (Form 1023-EZ) to many months (full Form 1023) to issue the 501(c)(3) determination letter, and you want that letter before you start using CERT-119. Plan for the state entity to exist within a week or two but the full tax-exempt status to take several months end to end.

---

Vestrybooks sets up a new Connecticut nonprofit’s books on fund accounting from day one — funds, reconciliation, and the board reports — so the financial side is right before the first grant arrives. See how it works.

More state guides: Maine · New Hampshire · Vermont · Massachusetts · Rhode Island