Thinking About Starting a Nonprofit? Which Option Is Best—Do It Yourself, Hiring An Attorney, Or Joining A Class?
When I started a nonprofit organization earlier on in my career, I was super fortunate to be in a situation in which I was heading an initiative of a family-run foundation, and we were spinning off into a separate entity, totally controlled by the community. I had access to the best attorneys and consultants in the business, and we never skipped a beat. We got tax-exempt status the first time out the gate, started developing the systems, and never looked back.
My situation is not typical. I learned how to start a nonprofit organization the right way the first time by working with professionals. I was able to use those lessons to work with grassroots organizations without an attorney—both as a member of the organization and as a consultant and trainer.
I can honestly say that starting a nonprofit is an exciting and purpose-driven journey—but how you begin can impact your success for years to come. If you get it right the first time, you will save time, money and effort. Miss a step, and your mistakes could come back to haunt you immediately, or several years down the road. It all depends on what mistake you make. Regardless, one of the first decisions you’ll face is how to get your organization off the ground. Should you figure it out on your own, hire an attorney, or invest in a course that walks you through the process?
Let’s break down the pros, cons, and costs of each option so you can make the best choice for your vision and budget.
Option 1: DIY – Do It Yourself with No Professional Help
Pros:
DIY is the most affordable option. You will only need to pay required state and federal fees and be willing to take the time to do the necessary research, and complete the forms. You will have total control over every phase of the process and schedule for bringing your idea from concept to reality. There are plenty of free resources online, including the Internal Revenue Service (IRS), state and local government websites, Google searches, YouTube videos, your local library, etcetera.
Cons:
While choosing the DIY option maximizes saving and control, there are several opportunities to miss details or make costly mistakes. The process is confusing and full of legal jargon. Answering questions using common language, in many instances, may result in rejection of your state and federal forms or delays in processing, because specific language is required. In some cases, forms may pass muster for the state regulators but may not meet IRS requirements. There’s a high risk of making costly mistakes—especially with IRS Form 1023 or bylaws. On top of that, the precise combination of forms to be completed varies from state to state, and a complete set of all the forms and filings you need are almost never found in one place—even in documents produced by government entities. What’s worse, some government entities will develop a form for you to complete, but tell you to seek an attorney’s advice to answer the questions you ask about the form that the agency created. Basically, you’re on your own—no guidance, no feedback, and no support network. There is a strong likelihood that you will miss certain state and local forms to complete, and you won’t know until you have a problem receiving funds because you didn’t complete a form you never even knew about.
Estimated Cost
The estimated total state and federal filing fees in the State of Illinois could be up to $750, depending on whether you file IRS Form 1023 EZ or Form 1023.
Founders Who Are Best Suited For DIY
Founders who are self-starters with time, strong research skills, and no budget are best suited to go the DIY route.
Bottom Line
DIY may be feasible, but it requires patience, confidence, and a willingness to learn through trial and error.
Option 2: Hire an Attorney
Pros:
An attorney will handle legal documents, filings, and correspondence with the IRS. They can even serve as the organization’s registered agent, should the organization decide. The registered agent is the person responsible for ongoing communication with government entities and other legal notices. Most nonprofit organizations use their founder, treasurer or executive director for this purpose.
Another reason to hire an attorney to help you, is they can navigate complex government bureaucracies and help you to avoid common mistakes and ensure initial legal compliance. You’ll also receive personalized legal advice, which is great if your structure is complex.
Cons:
Word of caution: not all attorneys are created equal. Just as doctors have general practitioners and specialists, the same is true for attorneys. Just because an attorney has passed the bar exam in their state does not mean they specialize in tax or organizational law. If nonprofit organizations are not their specialty, you could very well be paying the attorney to learn the process on your dime. Make sure your attorney is well-versed in structuring nonprofits, with experience with organizations and/or tax law.
Another con is the fact that hiring an attorney to help you start your organization is the most expensive option by far, with rates ranging from $150-1,000 per hour in the State of Illinois. Even if you get an attorney to handle your case pro bono, you risk the fact that your case will not get the same priority as paid clients. Not to mention, a pro bono attorney may or may not have a specialty with taxes, nonprofits or organizations.
When you hire an attorney, you typically are paying for the time it takes them to file the regulatory paper work, develop bylaws and help you organize your first meeting of the board of directors. Even so, you might not fully understand your organization’s foundational documents or compliance needs. You may need to have a separate meeting(s) with your attorney to better understand the purpose of each form and the implications of not filing them correctly, in a timely manner. This will come at a cost over and beyond your filing fees with the regulatory agencies and the time for the attorney to complete the forms.
Attorneys typically don’t help with program design, board development, or fundraising plans. You and your team will either do this yourselves or pay a professional to help you facilitate these processes.
Estimated Cost
The estimated cost of using an attorney includes fees ranging from $0 (pro bono)-$8,000 in the State of Illinois, plus up to $750 in filing state and federal fees.
Founders Who Are Best Suited For Using Attorneys
Founders with funding who want a hands-off experience are better off using an attorney who is well-versed in tax law and/or nonprofit organizations.
Bottom Line:
Hiring an attorney is great for legal peace of mind—but it doesn’t prepare you to run your nonprofit day to day.
Option 3: Join a Nonprofit Startup Course
Pros:
Courses walk you through each step with a structured plan to take you from concept to reality. Most courses will walk you through the process of incorporation, filing Form 1023You’ll learn how to lead, fund, and manage your nonprofit long-term.
- Many courses include templates, group coaching, and a supportive community.
Cons:
- You must dedicate time and energy to complete the course and filings.
- You’re still responsible for submitting paperwork (though you’ll have support).
- Quality varies—look for courses taught by nonprofit professionals with real experience.
- Estimated Cost: $297–$1,500 (may include coaching and tools)
Best for: Founders who want to learn the process, gain leadership skills, and launch strategically.
Bottom line: A course is ideal if you want to launch smart and build your leadership skills from day one—without spending thousands on legal help.
Which Path Is Right for You?
| Approach | Cost Range | Best For |
| DIY | $275–$600 | Self-starters with no budget and strong research skills |
| Hire an Attorney | $1,500–$5,000+ | Busy founders who want someone else to handle it |
| Join a Course | $297–$1,200 | Mission-driven leaders who want to learn and grow |
Some founders even combine approaches—taking a class to understand the process, then paying an attorney to review documents before submission. That way, you save money while still ensuring compliance.
Final Thoughts
Starting a nonprofit is more than paperwork—it’s about building a mission-driven organization that changes lives. The path you choose should reflect not just your budget, but also your goals as a founder. Whether you DIY, lawyer up, or join a class, what matters most is launching with clarity, purpose, and sustainability in mind.
Are You Ready to Start Your Own Nonprofit?
Download our FREE workbook to help you and your team find out critical questions you should ask yourselves before starting a new nonprofit, and how to proceed. Use your answers to decide whether or not to start a new organization and how to lay a strong foundation if you decide to move forward.
Want Help Starting Your Nonprofit the Right Way?
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