Are you looking to start a nonprofit, but you don’t know the ins and outs of nonprofit compliance requirements?
Is hiring a traditional law firm outside the reach of your budget? Thankfully, there are plenty of services available to assist you with the crucial startup phase ― even if you need 501(c)(3) status.
In this Foundation Group nonprofit review, we’ll go over some pros and cons, pricing and features, customer reviews, and more. By the time we’re done, you’ll have a good idea whether they’re right for your nonprofit, or if you should examine other options.
Pros & Cons of Foundation Group
Pros
- They have a 100% Internal Revenue Service (IRS) approval rate. No nonprofit they’ve ever filed was turned down! That’s amazing when you consider how complex many nonprofit platforms can be in terms of legalities.
- Foundation Group has 20+ years in business, with 17,000+ nonprofits started. This level of experience is noteworthy on its own merit, but in their case, it makes that 100% approval rate even more impressive.
- The Foundation Group SureStart nonprofit formation system covers incorporation, 501(c)(3) status, charitable solicitation registration, and state and federal compliance filings. It’s a complete service package that leaves little to chance.
- Every Foundation Group client receives oversight from an IRS-licensed tax specialist. This ensures that your organization is compliant from day one with both state and federal taxation requirements for nonprofits.
- Their blog is updated weekly with relevant, valuable posts aimed at answering questions nonprofits didn’t even know they had.
- Not many of their customers choose to review their services, but those that do are almost all satisfied. On Facebook, they average 4.9 out of 5 stars.
Cons
- Starting at $1,750, their prices are a bit higher than some of their competitors. For example, Harbor Compliance offers nonprofit formation with 501(c)(3) certification starting at $1,499.
Foundation Group Nonprofit Alternative
Northwest is our top choice for seamless nonprofit formation, compliance services, and more. Start your nonprofit off right today with Northwest’s $29 formation package.
Start NowFoundation Group Pricing & Features
Foundation Group’s SureStart nonprofit formation service is custom-tailored to your organization, so your exact rate may vary a bit from their standard listed prices.
For most companies, Foundation Group offers formation services at two different price points, $1,750 and $3,000.
Foundation Group has a unique consultative approach to nonprofit formation that covers incorporation, 501(c)(3) status, and more. They can help you avoid challenges like conflicts of interest, copyrights and intellectual property, selling of goods or services, etc.
Many nonprofit providers are broad document-filing services that include nonprofit formation as one of their many services. Foundation Group only works with nonprofits, going well beyond simply filling out forms. Think of them more as a business partner with an encyclopedic knowledge of nonprofit compliance requirements.
Let’s discuss the differences between their two nonprofit formation service packages:
SureStart Lite = $1,750 + State Fee
What It Includes: This package features the basics of nonprofit formation, including a name availability check, along with the full prep and filing of your articles of incorporation.
They will also acquire your 501(c)(3) status, draft your bylaws and your conflict of interest policy, and provide you with a federal employer ID number (EIN). Finally, you’ll receive oversight from an IRS-licensed tax specialist to ensure you are compliant with state and federal tax regulations.
Who It’s Right For: Most nonprofits that need 501(c)(3) status should be interested in this package. The oversight from a licensed tax specialist is a nice feature that most competitors don’t offer.
SureStart = $3,000 + State Fee
What It Includes: Everything from SureStart Lite, plus a personal compliance specialist to keep your business compliant after your formation, a state tax exemption (if necessary), a state fundraising registration, preparation of your IRS Form 990 for 501(c)(3) nonprofits, a sales tax exemption application (where available), ongoing consultations, and one year of complimentary access to Kindful fundraising software.
Who It’s Right For: If your nonprofit has complex ongoing compliance requirements, the full SureStart is an excellent choice because of its comprehensive compliance features.
Recommended Package
Most nonprofits that require 501(c)(3) status will be served well by the SureStart Lite package, although for those organizations that need some more advanced features, SureStart is a worthy purchase.
Foundation Group Alternatives
When forming a nonprofit organization, several alternatives to Foundation Group exist. Each service offers unique features and pricing structures to assist with the incorporation and 501(c)(3) application processes. Let’s explore some popular options:
Northwest Registered Agent
Northwest Registered Agent is known for its personalized customer service and transparent pricing. The company offers a comprehensive nonprofit formation package that includes state filing, registered agent service, and guidance through the 501(c)(3) application process. Northwest’s team of former IRS employees provides valuable insights — potentially increasing the chances of application approval. Northwest’s services may be pricier than some competitors, however, and the company has a smaller range of specialized nonprofit resources compared to Foundation Group.
LegalZoom
LegalZoom is a well-established name in online legal services, including nonprofit formation. The company offers a user-friendly platform and a wide range of services beyond just nonprofit creation. LegalZoom’s packages include state filing, registered agent service, and basic guidance for 501(c)(3) applications. While LegalZoom can be a cost-effective option for simple nonprofits, the company may not provide the depth of nonprofit-specific expertise found with specialized services like Foundation Group. Some users also report that LegalZoom’s customer support can be less personalized.
Swyft Filings
Swyft Filings focuses on quick and affordable business formation services, including nonprofits. The company offers a straightforward process for state incorporation and can assist with 501(c)(3) applications. Swyft Filings has competitive pricing and fast turnaround times. However, the company’s nonprofit-specific resources and expertise may not be as extensive as those offered by Foundation Group. Swyft Filings could be a good choice for those prioritizing speed and cost-effectiveness over specialized nonprofit guidance.
Bizee
Formerly known as Incfile, Bizee provides a range of business formation services that include support for nonprofits. The company offers affordable packages that feature state filing and registered agent service. While Bizee can assist with 501(c)(3) applications, its focus is broader than just nonprofits. Bizee offers a user-friendly platform and good value for money. However, the company may not provide the same level of hands-on guidance and nonprofit-specific expertise as Foundation Group.
Is Foundation Group Right For Your Nonprofit?
Foundation Group specializes exclusively in nonprofit formation and management, offering deep expertise in this niche. Consider your specific needs and priorities when choosing a formation service.
It’s particularly well-suited for:
- Organizations seeking in-depth, specialized nonprofit expertise
- Complex nonprofits requiring hands-on guidance through the formation process
- Those who value ongoing support and resources for nonprofit management
However, it may not be the best fit if:
- You’re working with a very limited budget and prioritize cost over specialized support
- You need an extremely fast turnaround time for basic formation services
The bottom line? Foundation Group stands out for its focused nonprofit expertise and comprehensive support throughout the formation process and beyond. While it may come at a higher price point than some alternatives, Foundation Group’s specialized knowledge and ongoing resources can be invaluable for many nonprofits. However, organizations with simpler needs or tighter budgets might find suitable alternatives in services like Northwest Registered Agent, LegalZoom, Swyft Filings, or Bizee. Carefully consider your nonprofit’s specific requirements, budget, and lon-term goals when choosing a formation service.
Frequently Asked Questions
Can’t I Handle My Own Nonprofit Filing?
You legally can, but it’s not a great idea. Nonprofits ― especially those seeking 501(c)(3) status ― can be extremely complex due to their many layers of compliance regulations, and unless you’re already familiar with the ins and outs of nonprofit legalities, this isn’t something we advise taking the DIY route for.
Does My Nonprofit Formation Include 501(c)(3) Status?
Yes. Foundation Group includes your 501(c)(3) application as part of your nonprofit startup process. Not only that, but they also guarantee its acceptance by the government.
How Long Will My Nonprofit Filing Take?
This can vary. Sometimes, nonprofit startup takes less than a month. Other times, it could take 12 weeks or even longer. It’s hard to predict what the case will be for you, which is another reason it’s nice to have Foundation Group in your corner.