Nonprofit Basics

Awareness & Understanding

Every food bank, after-school program, and community garden you have ever benefited from was probably run by a nonprofit organization. But what exactly makes an organization nonprofit? In this first step, you will explore the basics: nonprofits are organizations that put their money back into their mission instead of paying profits to owners. Browse the Utah Nonprofits Association website at utahnonprofits.org to see the wide variety of causes local organizations serve. Look up two Salt Lake City nonprofits that work on issues you care about and read their mission statements. Notice how each mission statement is short, clear, and focused. Write your own rough mission statement for a cause you care about — it does not have to be perfect yet. You are ready for the next step when you can explain in plain words what makes a nonprofit different from a regular business.

Research & Investigation

Starting a nonprofit requires understanding the legal and organizational steps involved. The State of Utah makes it relatively straightforward to incorporate a nonprofit — visit corporations.utah.gov to read about the process. The IRS website at irs.gov explains what a 501(c)(3) tax-exempt status means and why it matters for fundraising and donations. Look for free guides from the National Council of Nonprofits at councilofnonprofits.org, which offers plain-language explanations of bylaws, boards of directors, and fiscal responsibility. Research at least one Utah nonprofit founder story — many organizations like the Utah Food Bank and Spy Hop Productions share their history online. List the five key steps most nonprofits take to get legally formed. You are ready for the next step when you can explain the role of a board of directors and why 501(c)(3) status is important.

Planning & Preparation

Now you will build the foundational documents every nonprofit needs. Start with a clear mission statement — one or two sentences that say who you serve, what you do, and why it matters. Then draft a vision statement describing what the world looks like when your mission succeeds. Write a simple list of your organization's core values. Sketch out a basic organizational chart showing a board of directors at the top, an executive director below, and any program staff or volunteers underneath. Look at free nonprofit plan templates from SCORE at score.org, where volunteer mentors also offer free advice. Draft your first simple budget showing estimated expenses and how you plan to cover them through donations, grants, or fundraising events. You are ready for the next step when you have a written mission, vision, values, and a one-page budget draft.

Taking Action

This step is about building your team and testing your idea in the real world. Recruit two or three trusted people to serve as your founding board — look for people who are passionate about your cause and bring different skills like finance, communication, or community connections. Host your first informal board meeting and write up simple minutes: who attended, what you discussed, and what you decided. Launch a small pilot of your program or service — even one event or one hour of service counts. Document everything with photos and notes. Reach out to the Utah Nonprofits Association to ask about their free resources for new organizations. You are ready for the next step when you have held at least one board meeting with minutes and delivered at least one small version of your program or service.

Leadership & Expansion

Your nonprofit is taking shape — now it is time to grow your reach and sustainability. Research grant opportunities through the Utah Division of Arts and Museums, the George S. and Dolores Dore Eccles Foundation, and local community foundations like the Salt Lake City Foundation. Write a one-page case for support that tells your story, shares your impact data, and explains why funders should invest in your work. Develop a fundraising plan that includes at least two strategies: a small community event and an online campaign. Build your public presence by creating a free organization page and sharing updates consistently. Mentor one younger person who is curious about starting their own nonprofit by walking them through what you have learned. You are ready for the next step when you have submitted at least one grant application or grant inquiry and launched a public-facing presence for your organization.

Impact & Reflection

Eight weeks in, your nonprofit journey has taken you from curiosity to real organizational action. Now reflect on every phase: What problem are you solving, and how have you confirmed that it is real? What has your pilot program taught you about what works? Write a one-page impact report covering your mission, the people you have served, your financial picture, and your goals for the next year. Present this report to your board, a mentor, or a community audience. Connect with the Utah Nonprofits Association to find a peer network of other new nonprofit founders in the Salt Lake area. Your story — the challenges, the breakthroughs, and the lessons — is itself a resource for the next person who wants to do what you have done. You are ready for the next step when you have completed a written impact report and shared it with at least one outside audience.