How to start a nonprofit in Washington

Short answer: To start a nonprofit in Washington, you incorporate by filing Articles of Incorporation (Nonprofit) with the Washington Secretary of State, Corporations Division ($40 to $80 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 Washington side, before you ask the public for a dollar, you register with the Secretary of State’s Charities Program, which charges a $60 initial fee and a $40 annual renewal as of 2026. And one honest warning most guides bury: Washington has no state income tax, but it also generally does not exempt nonprofit purchases from retail sales tax — your nonprofit pays it like any other buyer.

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 Washington 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 Washington follows the standard checklist, and most of it is federal rather than state-specific:

1. Incorporate as a nonprofit corporation (the Washington-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 Washington layer on top.

Incorporating a nonprofit in Washington

Washington creates the nonprofit as a legal entity when you file Articles of Incorporation (Nonprofit) with the Washington Secretary of State, Corporations Division, under the state’s Nonprofit Corporation Act (chapter 24.03A RCW). The state rewrote that Act, and the current statute and forms reflect the newer chapter rather than the old chapter 24.03. You can file online through the Corporations and Charities Filing System or by mailing the form to Tumwater.

The filing fee is $40 if you certify that the nonprofit’s gross revenue was less than $500,000 in its most recent fiscal year, and $80 otherwise; a brand-new nonprofit with no revenue history typically qualifies for the $40 rate. Confirm the current amount with the Washington Secretary of State, since fees change. Expedited processing is available for an added fee (around $100 as of 2026).

The Articles ask for the nonprofit’s name, its registered agent in Washington, and its statement of purpose. To set up the federal 501(c)(3) application later, keep two clauses in the document rather than stripping them out:

• 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. On board size, Washington’s general rule is one or more directors, but the statute requires three or more directors once the corporation is, or has applied to be, an IRS public charity under section 509(a)(1) through (4) — which describes the typical 501(c)(3) (RCW 24.03A.505). Plan on at least three unrelated directors; the IRS also treats a one-person board as a red flag on the 1023.

Registering to fundraise in Washington

Here is the step that trips up nonprofits coming from a church background, where it usually does not apply: Washington requires charitable organizations to register with the Secretary of State’s Charities Program before soliciting donations from the public. A church taking offerings can often skip this; a general nonprofit asking the public for money cannot.

You register first as a Charitable Organization with the Charities Program, and registration must be in place before you fundraise in Washington (Washington Secretary of State, charitable organizations). The initial registration fee is $60 as of 2026, and the registration then renews every year. There is a narrow exemption for the smallest groups: an organization that raises less than $50,000 in an accounting year and runs entirely on unpaid volunteers — no paid staff, no commercial fundraiser — is not required to register. If you pay anyone or hire a fundraiser, that exemption is gone.

Registration is not one-and-done. Each year afterward you file an annual renewal with the Charities Program, which costs $40 as of 2026 (Washington Secretary of State, charities fee schedule). The Charities Program sends renewal reminders by email and postcard roughly 60 days before your registration expires, but the deadline is yours to track. Confirm the current fees with the Secretary of State before filing, since the schedule can be revised.

Washington sales tax and B&O for your nonprofit

Now the honest answer most state guides skip. Washington has no state income tax, which sounds like a clean win for nonprofits — but the state funds itself through retail sales tax and the business and occupation (B&O) tax, and a nonprofit is exposed to both. Washington law gives nonprofits no blanket sales-tax exemption: a 501(c)(3) generally pays retail sales tax on the supplies, equipment, and services it buys, the same as any other consumer (Washington Department of Revenue, nonprofit organizations).

The B&O tax is a tax on gross receipts, and nonprofits owe it on income from regular business activity unless a specific exemption or deduction applies. The most useful break is for fundraising: income from qualifying fundraising activities is exempt from both B&O tax and retail sales tax when the proceeds go toward the organization’s purposes and the activity is not run out of a regular business location. That exemption is real but narrow — it covers a benefit dinner or a one-off auction, not a year-round storefront. Budget as if your purchases are taxable and your routine business income may owe B&O, then check whether any specific exemption actually fits your activities with the Department of Revenue before you rely on it.

Washington 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 Washington fees change.

What you’re doing	Agency	Form	Fee (as of 2026)
Incorporate the nonprofit	WA Secretary of State, Corporations Division	Articles of Incorporation (Nonprofit)	$40 (under $500K) / $80
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	WA Secretary of State, Charities Program	Charitable Organization Registration	$60 initial, $40 renewal
Sales tax on purchases	WA Department of Revenue	—	Generally taxable (no blanket exemption)
State income tax	—	—	None (B&O tax instead)

Setting up the books once the nonprofit exists in Washington

Once the entity is formed and the registration is filed, 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 Washington angle to keep on your calendar is the annual charity renewal — that yearly filing to the Secretary of State’s Charities Program is what keeps your fundraising registration current, and letting it lapse can put the registration into delinquent status while you are still soliciting donations.

FAQ

How much does it cost to start a nonprofit in Washington? The required state cost is modest. Filing Articles of Incorporation (Nonprofit) costs $40 for a new nonprofit certifying under $500,000 in revenue (otherwise $80) as of 2026, and the Secretary of State’s charitable registration is $60 initial plus $40 a year to renew — so the Washington paperwork runs roughly $100 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). Realistically, a small Washington nonprofit can be stood up properly for a few hundred dollars once you include the federal exemption application.

Do you have to register to fundraise in Washington? Yes, in most cases. Washington requires charitable organizations to register with the Secretary of State’s Charities Program before soliciting contributions from the public, and to renew every year (Washington Secretary of State, charitable organizations). A narrow exemption covers all-volunteer groups that raise under $50,000 a year, but the moment you pay staff or use a commercial fundraiser, registration is required. This step is separate from incorporating with the Secretary of State’s Corporations Division and separate from your IRS 501(c)(3) application.

Do nonprofits pay sales tax in Washington? Usually yes. Washington gives nonprofits no blanket sales-tax exemption, so a 501(c)(3) generally pays retail sales tax on the goods, supplies, and services it buys, just like any other purchaser (Washington Department of Revenue, nonprofit organizations). The state has no income tax, but it does have a B&O tax on gross receipts; qualifying fundraising income is exempt from both B&O and sales tax, while routine business income generally is not. Budget for taxable purchases and confirm any specific exemption with the Department of Revenue.

How long does it take to start a nonprofit in Washington? The Washington incorporation itself is relatively quick — online filing with the Secretary of State is the fastest route, with paid expedite options if you mail the form. 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. Plan for the state entity to exist within days to a couple of weeks, but the full tax-exempt status to take several months end to end.

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Vestrybooks sets up a new Washington 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.

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