Starting and running a nonprofit in Maryland

Forming your nonprofit corporation

The state creates your organization; the IRS separately recognizes it as tax-exempt. This is the state part.

Where you file

Maryland State Department of Assessments and Taxation (SDAT), Charter Division (online through Maryland Business Express, by mail, or in the drop boxes at 123 Market Place, Baltimore)

Official source · checked October 21, 2026

Form

Articles of Incorporation for a Tax-exempt Nonstock Corporation (SDAT's fill-in form, which already includes 501(c)(3) purpose and dissolution language)

Official source · checked October 21, 2026

Filing fee

$170 in total: the $100.00 filing fee, a $20.00 organization and capitalization fee, and a $50.00 assessment for the Maryland Not-For-Profit Development Center Program Fund. Expedited review (7 to 10 business days) costs $50 more.

Official source · checked October 21, 2026

Annual report

File Form 1 (Annual Report and Business Personal Property Return) with SDAT every year by April 15. There is no filing fee for a nonstock corporation. If you don't file, your corporation's charter can be forfeited.

Official source · checked October 22, 2026

Then get your EIN and apply to the IRS for 501(c)(3) status: the formation stage walks through both.

Registering to ask for donations

Many states want charities to register before they ask residents for money. Here's what this state says.

Do you have to register?

Yes, unless you're exempt: register with the Maryland Secretary of State's Charitable Organizations Division and get a registration letter (Bus. Reg. § 6-401) before you ask for donations. You can file online through Maryland OneStop. If you raised more than $25,000 in your last fiscal year you file the full initial registration; if less, the Exempt Organization Fund-Raising Notice is the only form required.

Official source · checked October 22, 2026

Exempt

If you don't use a professional solicitor, you're exempt if you don't receive more than $25,000 a year in contributions from the public, are a religious organization (or its parent organization or affiliated school) with federal tax-exempt status, solicit only your members, raise money for a named individual and give the whole amount to that person, or receive contributions only from companies and private foundations (Bus. Reg. § 6-102). You must be able to show evidence of your exemption if the Secretary of State asks.

Official source · checked October 22, 2026

Fee

Based on contributions from the public in a year: no fee under $25,000 ($50 if you use a professional solicitor); $50 from $25,000 to $50,000; $75 to $75,000; $100 to $100,000; $200 to $500,000; $300 above $500,000 (Bus. Reg. § 6-407).

Official source · checked October 21, 2026

Renewal

Every year, within six months after your fiscal year ends, with an automatic extension to the 15th day of the 11th month (no IRS Form 8868 needed). Late filers pay $25 for each month or part of a month. Groups under $25,000 refile the Fund-Raising Notice each year instead.

Official source · checked October 21, 2026

State tax exemption

IRS approval doesn't automatically exempt you from state taxes. Here's how this state handles them.

Income tax

Organizations exempt under IRC section 501 are not subject to Maryland corporation income tax and don't file Form 500 unless they have federally taxable income such as unrelated business income. Even if you don't file, nonprofits operating in Maryland that are subject to federal exempt-status notification requirements must register with the Comptroller's Revenue Administration Division by sending a letter signed by an authorized official with a copy of the IRS determination letter.

Official source · checked October 22, 2026

Sales tax

Not automatic. Apply to the Comptroller of Maryland for a sales and use tax exemption certificate (online through Maryland Tax Connect; paper on request), with your IRS 501(c)(3) letter, articles of incorporation and bylaws. Only nonprofits located in Maryland, Delaware, Pennsylvania, Virginia, West Virginia or D.C. qualify. Certificates are renewed every five years; current ones expire September 30, 2027.

Official source · checked October 21, 2026

Your board

The smallest board the state's nonprofit law allows. Many charities choose more.

Minimum directors

One or more (Md. Code, Corps. & Ass'ns § 2-402(a), which applies to nonstock corporations through § 5-201). Your charter sets the number until your bylaws change it.

Official source · checked October 21, 2026

Every year

• Maryland Secretary of State: charity annual update of registration

  Charities registered with the Maryland Secretary of State file an Annual Update of Registration within 6 months after the fiscal year ends. If you have a current registration and miss that date, you automatically get an extension to the 15th day of the 11th month after year end, with no request needed. The yearly fee depends on donations from the public: $0 under $25,000 ($50 if you use a professional solicitor), $50, $75, $100, $200, or $300 for $500,001 and up. Charities with less than $25,000 in donations file a shorter Fund-Raising Notice instead and pay no late fee. A late Annual Update costs $25 for each month or part of a month it is late. Confirm with the Maryland Secretary of State's Charitable Organization Division.

  Official source · checked October 17, 2026

• Maryland Department of Assessments and Taxation: annual report (Form 1)

  Maryland nonprofit (nonstock) corporations file the Form 1 Business Entity Annual Report with the State Department of Assessments and Taxation (SDAT) by April 15 each year. Nonstock corporations pay no filing fee. Confirm with SDAT.

  Official source · checked October 17, 2026

Federal deadlines (the Form 990 family) depend on your fiscal year and size. The compliance calendar puts them and Maryland's in date order.

Make my Maryland calendar

Who to ask

We don't list a free legal help program for Maryland charities yet. The directory has the programs we know of.