What are the pros and cons of forming a charity?

Question

not sure whether to form a non-profit organization or a registered charity for a small community.

Answer 1

Either of your choices is going to require the forming of a board of directors, lots of paperwork, excellent financial record-keeping, and endless fund-raising.

The choice is really whether to form a nonprofit (or charity), OR, whether to try to launch a program within an existing organization. The advantages to the former is that the organization starts with a "clean" slate, is controlled by its board of directors who have a set vision for the organization that may not be shared by other organizations, and has no previous negatives in its past to overcome. The disadvantages are the huge difficulties in getting start up funds, trying to create a positive reputation and admirable results quickly, and competing for attention and funds among other nonprofits.

Answer 2

The pros are you can help people and make a difference in a previously unfulfilled area of your community. You can also become known/infamous for meeting that need, you are a resource.

The cons are you have to know what is a legitimate need, and why you want to do this.

Here are some questions which people need to ask themselves before filling out the paperwork needed to certify their organization as a non-profit

Are you looking to be 'popular' in the community?

Do you actually know what starting up a non-profit organization/charity involves?

Will you be in it for the long haul?--or are you looking to be 'rich'--definently not the non-profit way!

Can you work with other people in the community or are

you a micro manager who has to have things done exactly their way everytime?

Who are the people you are trying to help? Are you part of this same community--or comming in from the outside and wanting to direct others?