UNA is the catalyst in creating a strong, vibrant, mutually supportive nonprofit community in Utah.

"Utah Non-Profits is the best at providing on-going relevant and valuable networking, information, and educational opportunities to non-profit practitioners."Salt Lake Education Foundation

Should I Start a Nonprofit Organization?

UNA wants nonprofits to begin on the right foot! Once you have reviewed the information below, if you still have questions please contact us for technical assistance.

A great resource is the Utah Arts Council's handbook, The Art of Forming a New Nonprofit, which is available both on-line and for purchase on the Utah Arts Council's website. Click HERE for more information about this publication.

You may also wish to consult with an attorney who specializes in incorporating nonprofits. UNA can provide a listing of attorneys who, for a reasonable fee, provide this service. Also search the Consultant Database--click HERE.

Tips & Items to Consider - Should You Start a Nonprofit Organization?

  1. Evaluating the Idea
    • What is our mission and vision? Will it be clear to others what we are looking to do
    • What are our goals and objectives? Can these be easily defined?
    • Can this work on its own? Would it be better to collaborate with an existing organization with a complementary mission?
    • Who else is doing this? Check the UNA Member site for other organizations that may be doing the same work that you are looking to do. Click HERE to go directly to the UNA Members web page.
    • Can I/we afford to do this? Do NOT assume that funding with be easily forthcoming; for example, many foundations will only fund organizations that have been in existence for several years.
    • Be sure to perform a SWOT analysis. See below for a description of that overall process.
  2. Be sure you can answer the following questions BEFORE you move forward:
    • Is the proposed project something a nonprofit organization can legally do?
    • Is there a demonstrated need for this service/project that is not being fulfilled elsewhere?
    • Can you clearly state your mission (it should be two sentences or less)?
    • Have you carefully considered a partnership with an existing organization? Link to the UNA Member List for suggestions.
    • Can you describe what success would look like?
    • Can you clearly describe the steps needed to succeed?
    • Will others (foundations & government grantmakers, individual donors, board members & volunteers) commit time and resources to your cause?
    • Do you and your supporters have the needed skills to start the new organization?
  3. Reasons NOT to start a new nonprofit organization:
    • It is for a time-limited special project that will benefit the community
    • You wish to support a specific needy individual
    • You think a lot of grant money is available
    • You have a service or product to provide below cost or donate, but want a tax deduction
    • You feel your current work is not meaningful
    • You have important knowledge or perspectives to share
    • You want to do things your own way, without the “bureaucracy” normally involved
  4. Overview of how to perform a SWOT Analysis:
    SWOT stands for Strengths (internal), Weaknesses (internal), Opportunities (external) and Threats (external).
    Use this tool to create a quick map of the internal and external view of your potential organization, and the SWOT will help make the decision of how to proceed. More important, it will provide some creative thinking about your organization and its relation to the general community. This tool will also help determine how to use internal strengths to manage threats, and it will identify weaknesses to focus on improvements through awareness. It will increase success by identifying new opportunities for the organization. Keep in mind that if the result of the SWOT is to not proceed with forming your nonprofit, that is a sign not of failure, but that the community cannot successfully support your project.

Steps to Incorporating your Nonprofit Organization

  1. Choose a name for the organization. Check availability for your proposed name by clicking HERE.
  2. If you want a particular name, file an application for Reservation of Business Name (not required) through the Utah State Dept. of Commerce, Division of Corporations - $20.00
  3. File Articles of Incorporation with Division of Corporations (there are sample articles on the Dept. of Commerce website, click HERE for guidance). - $20.00
  4. File IRS form SS-4, Application for Employer Identification Number. Click here for the link.
  5. Prepare By-Laws. There are many resources over the Internet on how to prepare by-laws. Go to the UNA Resources page for more information.
  6. Prepare IRS form 1023, Application for Recognition of Exemption under Section 501(c)(3)--this is not a quick process, and you may need assistance. This is the "meat" of your incorporation as a charitable organization. Expect the approval to take at least several months. The IRS website has good information for nonprofits--click HERE.
  7. Mail By-laws, Articles of Incorporation (with Utah stamp), Form 1023, Form 8718 with appropriate fee, and 872-C if requesting an advance ruling, all to the IRS.
  8. Apply for appropriate state tax exemptions, including sales and use tax. For more details on these exemptions, visit the Utah State Tax Commission site by clicking HERE.
  9. Complete and submit the Charitable Organization Permit Application Form. - $100, annual filing. To access the Charitable Solicitation Permit for Utah, click HERE. The Unified Registration Statement (which is accepted by over 20 states, including Utah) can be found by clicking HERE.
  10. File Annual Report with UT Division of Corporations - $12 for initial filing, then $7 annually (on anniversary of incorporation). For the forms, visit the Division by clicking HERE.
  11. Prepare Form IRS 990 annually - if your organization's revenues exceed $25,000 per year, and your organization is not a religious institution (i.e. a church)--which will exempt you from having to file the 990 return. For more information, visit the IRS website, listed below.

Additional Resources:

Utah Department of Commerce - information on incorporating in Utah (including sample Articles of Incorporation) and relevant forms for nonprofit corporations at the state level.

IRS Section on Charitable Organizations - great resources for forms and information for charitable nonprofit organizations.

The Foundation Center has a tutorial on how to start a nonprofit organization.