Establishing a Not-for-Profit Organization. As a certified public accountant, 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 will be.
Required
a. Prepare a memo to the group that outlines the process involved in creating a tax-exempt not-for-profit entity. Be sure to point out particular alternative strategies, including the advantages and disadvantages you believe the incorporating officers should spend time considering.
b. What resources are available on the Internet to help this group understand the regulatory, taxation, and performance measure issues that they will face as officers of a tax-exempt, not-for-profit organization?