Start a nonprofit · Iowa
How to Start a Nonprofit in Iowa
Iowa charges $20 to file nonprofit articles of incorporation, and the biennial report costs nothing for a nonprofit corporation. Iowa does not automatically exempt a 501(c)(3) from sales tax on its purchases, so the tax rules deserve a look before the first large purchase.
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 Iowa requirements in one table.
| Type of entity | An Iowa nonprofit corporation, formed by filing articles of incorporation with the Secretary of State. Sources: AG, organizing |
|---|---|
| State filing fee | $20 for articles of incorporation of a nonprofit corporation under Iowa Administrative Code rule 721-40.6(1). Sources: Admin. Code ch. 40 |
| Federal exemption | Form 1023 ($600) or Form 1023-EZ ($275), filed electronically on Pay.gov. Sources: IRS fee page, IRS e-filing notice |
| Biennial report | No fee for a nonprofit corporation. Nonprofits file in odd-numbered years, between January 1 and April 1. Sources: Admin. Code ch. 40, SOS biennial report, Iowa Code 504.1613 |
| Attorney General | Charitable trusts administered in Iowa with more than $25,000 in assets must register. Professional fundraisers must register. Sources: AG trust registration, AG, organizing |
| Sales tax | Nonprofits are not automatically exempt from sales tax on purchases. The Department of Revenue describes no general exemption certificate for them. Sources: Revenue, nonprofits |
The steps
Four steps, in the order they happen.
Prepare the articles of incorporation.
Nonprofit corporations file articles of incorporation with the Iowa Secretary of State. The sources reviewed for this page do not state the minimum number of directors, so confirm that requirement on the Secretary of State's filing forms before filing.
Sources: AG, organizing
File the articles and pay $20.
The fee for articles of incorporation of a nonprofit corporation is $20 under rule 721-40.6(1) of the Iowa Administrative Code. The Secretary of State's fee page does not list the amount, so the figure comes from the administrative rule. Confirm it in the online filing system at filings.sos.iowa.gov.
Sources: Admin. Code ch. 40
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
Check whether the Attorney General needs a registration.
The Attorney General's office states that charitable trusts administered in Iowa with more than $25,000 in assets must register and file annual reports online. Its page covers trusts and does not say whether nonprofit corporations are included, so confirm with the office at [email protected] or 515-281-5926. A professional fundraiser, if the organization uses one, must register with the Attorney General.
Sources: AG trust registration, AG, organizing
Sales tax
What Iowa does and does not exempt.
The Department of Revenue treats nonprofits like other buyers unless a specific exemption applies.
Purchases.
Nonprofits are not automatically exempt from sales tax on goods and taxable services. Private nonprofit schools, colleges, universities and libraries are exempt on items used for educational purposes. PTAs and booster clubs are not automatically exempt.
Sources: Revenue, nonprofits
Sales.
A nonprofit's sales are exempt only when net proceeds go to educational, religious or charitable purposes and the organization is exempt under 501(c)(3), or the proceeds go to certain other qualifying recipients. Gambling receipts are taxable except for specific exemptions.
Sources: Revenue, nonprofits
Other taxes.
Nonprofits are not exempt from hotel and motel tax, the 5% vehicle registration fee or motor fuel tax.
Sources: Revenue, nonprofits
After you form
Staying in good standing.
One state filing recurs, every other year.
File the biennial report.
Nonprofits file in odd-numbered years between January 1 and April 1, at no fee. The report lists the corporation's name, registered office and agent, principal office, the president, secretary, treasurer and one board member, and whether the corporation has members.
Sources: SOS biennial report, Iowa Code 504.1613, Admin. Code ch. 40
Common questions
Quick answers.
How much does it cost to start a nonprofit in Iowa?
The articles of incorporation cost $20 under the Secretary of State's administrative rules, plus the IRS user fee of $275 for Form 1023-EZ or $600 for Form 1023. That totals $295 or $620 as of the date this page was verified.
Does an Iowa nonprofit pay to file its biennial report?
No. Nonprofit corporations pay no fee for the biennial report, whether filed online, by mail or in person.
Is a 501(c)(3) automatically exempt from Iowa sales tax?
No. The Department of Revenue states that nonprofits are not automatically exempt from sales tax on goods and taxable services.
After the filing
What comes next for a Iowa 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.
- Iowa Administrative Code, Secretary of State, Chapter 40, Division IV Corporations
- Iowa Secretary of State, How do I file a Biennial Report?
- Iowa Code section 504.1613, Biennial report for secretary of state
- Iowa Attorney General, Organizing a Non-Profit
- Iowa Attorney General, Charitable Trust Registration
- Iowa Department of Revenue, Iowa Tax Issues for Nonprofit Entities
- 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.