As the newly appointed director of a  large public foundation that makes grants to organizations, institutions, or individuals for charitable purposes such as science, education, culture, and religion. you are debating whether to continue the current nonprofit status of the foundation or encourage a large, nearby municipality to assume financial accountability for the foundation while still maintaining its charitable purpose.  What factors would you consider in evaluating the change in organizational arrangement for the public foundation which you now direct? As you think through this issue, what GASB criteria must be met for the foundation to become a component unit of the municipality? Moreover, what tradeoffs would you evaluate if (1) the municipality were to assume this responsibility or (2) the current nonprofit status of the foundation was maintained?  In your analysis, you may ignore the financial statement presentation requirements for component units ("blended" vs. "discrete"). 

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Step 11 There are many factors to consider when determining whether to maintain the current nonprofit status of a foundation or encourage a municipali... View the full answer