When establishing a non-profit organization, there are multiple steps. Which important step considers size of the organization, perceived liabilities, and tax-exempt status?
A) Idea phase
B) Gather people who share one's vision and commitment
C) Determining the form or legal structure for the non-profit
D) Development of a strategic plan

Question

Quizplus · Accepted Answer

Starting a non-profit organization is much the same as starting a for-profit business. The tasks for starting a non-profit organization are listed in Box 8-3. The first stage is the idea phase. It is important to research the services or products one hopes to deliver. Is there a need that is not being met by other community agencies? This aspect should be identified in the business plan as well. The second stage is to gather people who share one's vision and commitment. These are people who will become the board of directors, officers, and volunteers. The third stage is determining the form or legal structure for the non-profit. Considerations at this stage include size of the organization, perceived liabilities, and tax-exempt status. Next is the development of a strategic plan, followed by publicity and a fund-raising campaign. Finally, there must be a plan for growth and the continued development of the organization.

When Establishing a Non-Profit Organization, There Are Multiple Steps