Start a nonprofit · Alabama
How to Start a Nonprofit in Alabama
Alabama makes you reserve the name before you file, and it charges $200 for the certificate of formation, of which $100 goes to the county treasurer. Charity registration with the Attorney General costs $25 and does not apply to a small charity that raises no more than $25,000 with unpaid fundraisers. Alabama also does not exempt nonprofits from sales tax in general: an organization must be specifically listed in the law.
Every fee and rule on this page was checked against the agency's own publication on November 8, 2026. Sources are linked under each item.
At a glance
The Alabama requirements in one table.
| Type of entity | An Alabama domestic nonprofit corporation under Title 10A, Chapter 3A of the Code of Alabama, created by filing a Certificate of Formation with the Secretary of State. Sources: Certificate of formation form, SOS domestic corporations |
|---|---|
| Name reservation | Required first. The Certificate of Name Reservation is attached to the filing. Sources: SOS domestic corporations, Certificate of formation form |
| State filing fee | $200 processing fee. The Secretary of State passes $100 of it to the county treasurer for the county of the initial registered agent's office. Sources: Certificate of formation form, SOS domestic corporations |
| Registered agent | One agent with an Alabama street address, no P.O. boxes, and the county. Sources: Certificate of formation form |
| Incorporators | At least one. An entity cannot serve as an incorporator. Sources: Certificate of formation form |
| Federal exemption | Form 1023 ($600) or Form 1023-EZ ($275), filed electronically on Pay.gov. Sources: IRS fee page, IRS e-filing notice |
| Charity registration | $25 initial and $25 for each annual filing, with the Attorney General. Charities that do not intend to receive and do not receive more than $25,000 in a fiscal year, with unpaid fundraisers, are exempt. Sources: AG charitable organizations |
| Sales tax | No general exemption. The nonprofit must be specifically listed in the law, and statutorily exempt entities use a certificate valid for one year. Sources: Revenue FAQ |
The steps
Six steps, in the order they happen.
Reserve the name.
The Secretary of State states that you are required to obtain a Certificate of Name Reservation prior to filing your formation documents. A nonprofit's name does not need to include Corporation or Incorporated. The certificate is attached to the Certificate of Formation.
Sources: SOS domestic corporations, Certificate of formation form
Prepare the certificate of formation.
The form asks for the corporation's name, whether it has members, one registered agent with an Alabama street address and county, the purpose, which is any lawful purpose for which Alabama nonprofits may be incorporated under Title 10A, Chapter 3A, and the duration, which is perpetual unless an exhibit says otherwise. It also asks for the name and address of the person who prepared the form.
At least one incorporator is required, and an entity cannot serve as one. Each incorporator provides a street address, signature and date. The form does not state a minimum number of directors. Initial directors' names and addresses may be attached, and unless the certificate says otherwise, the bylaws can change the number of directors.
The form warns that failure to include certain provisions could mean the entity will not qualify for tax exemption under Section 501(c)(3). Attached provisions should include distribution of assets on dissolution, so add the language the IRS expects, which is in the Form 1023 instructions.
Sources: Certificate of formation form
File and pay $200.
Submit the Certificate of Formation with the Certificate of Name Reservation to the Secretary of State, Business Services, P.O. Box 5616, Montgomery, AL 36103. The form says to mail two typed copies with a self-addressed, stamped envelope, and that email submissions are not accepted. The processing fee is $200, payable by check, money order or credit card. Card payments carry convenience fees of 3 percent plus $2.00, and a dishonored check incurs a $30 fee.
Sources: Certificate of formation form
Apply to the IRS for 501(c)(3) status.
Forming a corporation does not make it tax-exempt. The federal application is Form 1023, with a $600 user fee, or the shorter Form 1023-EZ, with a $275 user fee, for smaller organizations that pass the eligibility worksheet in the form instructions. Both are filed electronically on Pay.gov, and the IRS returns paper applications. The IRS notes that the amounts can change.
The IRS answers with a determination letter, the written ruling that recognizes the exemption.
Sources: IRS fee page, IRS e-filing notice
Register with the Attorney General, if it applies.
Charitable organizations and institutions that solicit contributions in or from Alabama register with the Attorney General's Office. The fee is $25 for the initial registration and for each annual filing. An organization that does not intend to receive, and does not receive, more than $25,000 in a fiscal year is exempt if its fundraisers are unpaid. If contributions exceed $25,000, registration is required within 30 days of crossing that amount. Notify the Attorney General within 10 days of any change to registration information.
Sources: AG charitable organizations
Check sales tax before you assume an exemption.
Not all Alabama nonprofits are exempt from sales and use tax. The nonprofit must be specifically listed in the law as being exempt, and many charities with a statutory exemption are listed in Title 40, Chapter 9 of the Code of Alabama. A statutorily exempt entity applies for a certificate of exemption on Form ST: EX-A1-SE, by email to [email protected] or by mail to the Exemption Unit, P.O. Box 327710, Montgomery, AL 36132-7710. A corporation needs an IRS letter verifying its federal identification number.
The certificate is valid for one year and must be renewed annually before the end of the expiration month. Tax-exempt purchases are not allowed after a certificate expires.
Sources: Revenue FAQ
Charity registration exemptions
Who does not have to register with the Attorney General.
These come from the Attorney General's charitable organizations page, which cites Ala. Code section 13A-9-71.
Under $25,000 with unpaid fundraisers.
Organizations that do not intend to receive, and do not actually receive, more than $25,000 in a fiscal year, provided their fundraisers are unpaid.
Sources: AG charitable organizations
Educational and religious organizations.
Educational institutions and their related foundations, and religious and political organizations.
Sources: AG charitable organizations
Members only.
Certain fraternal, civic and social organizations, and civic groups soliciting only their own members.
Sources: AG charitable organizations
Named individuals.
Fundraising for a named individual, if total collections are under $10,000 and are passed on without deductions.
Sources: AG charitable organizations
Volunteer services.
Certain volunteer-run veterans, firefighter, ambulance and rescue organizations, and recipients of community chest or united fund allocations that meet specified conditions.
Sources: AG charitable organizations
After you form
Staying in good standing.
Three things recur.
File the charity renewal.
The annual filing is due within 90 days after the fiscal year ends, with either an annual financial report or a copy of IRS Form 990, and the fee is $25. A December 31 year-end is due March 31, and a 180-day extension can be requested through the registration profile.
Sources: AG charitable organizations
Renew the sales tax certificate every year.
A statutorily exempt entity's certificate is valid for one year. To renew, submit a new application, or, if the application on file is less than three years old and still current, email the exemption unit. The entity may be required to file an information report, which is a prerequisite for renewal.
Sources: Revenue FAQ
Confirm any annual report requirement.
The Secretary of State's page does not mention an annual report requirement for nonprofits. Ask Business Services at the Secretary of State's office before you assume there is none.
Sources: SOS domestic corporations
Common questions
Quick answers.
How much does it cost to start a nonprofit in Alabama?
The government fees are $200 to the Secretary of State, of which $100 goes to the county treasurer, plus the IRS user fee, which is $275 for Form 1023-EZ or $600 for Form 1023. That totals $475 or $800 as of the date this page was verified. The name reservation and any Attorney General registration fee are additional.
Do I need to reserve my name first in Alabama?
Yes. The Secretary of State states that a Certificate of Name Reservation is required before you file the formation documents.
Do I have to register as a charity in Alabama?
If you solicit contributions in or from Alabama, yes, unless an exemption applies. A charity that does not receive more than $25,000 in a fiscal year and uses unpaid fundraisers is exempt.
Is an Alabama nonprofit exempt from sales tax?
Only if it is specifically listed in the law. Many charities with a statutory exemption are listed in Title 40, Chapter 9 of the Code of Alabama, and they apply for a certificate of exemption.
After the filing
What comes next for a Alabama nonprofit.
The state filing is the short part. These are the next four jobs, and the book that handles each.
- Book I
Get the federal application and first-year budget right
The name, bylaws, the IRS application, a founding board and a first-year budget that balances.
- Book X
Start from finished documents
Forty annotated documents, including bylaws, budgets, policies, job descriptions and board papers, as editable Word files.
- Book VII
Build the board on purpose
What a board is for, recruiting for the skills you lack, working with the chair and running meetings that reach decisions.
- Book VIII
Stay in good standing
Charitable solicitation registration, operating in a second state, insurance and annual filings.
The complete set
All ten books and forty documents, $149.
All ten books in PDF and EPUB, plus the forty documents from Book X as editable Word files. The books are not sold separately.
Free when you join the list
Every Document a New Nonprofit Needs
Articles, bylaws, minutes, the exemption application, the policies and the filings: the whole sequence a new organization has to produce, in the order it arrives.
Sources
Where each figure comes from.
- Alabama Secretary of State, Domestic Nonprofit Corporation Certificate of Formation
- Alabama Secretary of State, Domestic Corporations
- Alabama Attorney General, Charitable Organizations
- Alabama Department of Revenue, Are all non-profit entities exempt from sales and use taxes?
- IRS, Form 1023 and 1023-EZ: amount of user fee
- IRS, Changes to the exempt organization determinations process
Last verified November 8, 2026. Fees and rules change, so confirm with the agency before you file. This page is general information and not legal or tax advice.