Service Fees (Goal: 5-10% of Revenue)

Service Fees (Goal: 5-10% of Revenue)

Most nonprofits prefer to serve the community without considering any fees to the public. While many cannot pay, some people can pay a small fee for any services provided. The startup period for a nonprofit is often difficult, and every penny can help further its mission.

For example, an organization providing community art education and classes may charge a small fee for supplies. This fee helps offset costs for the organization and provides motivation and buy-in for the participant.

Whenever charging fees, it’s important to remember you are serving a charitable class. Not everyone you serve will have the ability to pay the full amount. In the 1023 Long narrative, the IRS typically wants to know what happens in this situation. Does the organization make accommodations? If so, what are they, and who qualifies? These are important questions to address when setting service fees.


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