Problem:
You have been asked by a group of local citizens to assist in establishing a not-for-profit organization for the purpose of raising funds to keep their neighborhood safe and clean. These people are concerned about the growing crime rate and increased amount of trash and traffic in their community. They believe that a collaborative effort is needed to address these problems. The citizens are not sure how large the organization should be.
Question 1. Prepare a memo to the group that outlines the process involved in creating a tax-exempt not for profit entity. Include particular alternative strategies, including advantages and disadvantages.
Question 2. What resources are available on the internet to help this group understand the regulatory, taxation, and performance measure issues they will face as a tax exempt not for profit organization.