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There is a long history in communities across Canada of people beginning with a concern or a dream, and immediately starting a new organization to carry out this dream. They do not take the time to step back and look at whether a new organization is the right approach. However, this is a viable option that needs to be considered. But remember, it is only one of the options45.
The pro’s of this approach include:
- A fresh new start, with new energies and visions
- Independence, the opportunity to design the new organization to create the best fit with your new program or club
- A unique, distinct identity for your program or club.
The potential con’s include:
- The costs of creating a new organization (for example: becoming legally incorporated and acquiring charitable status)
- The challenge of recruiting a new Board of Directors, and sustaining it well
- The difficulties in acquiring charitable status, which have increased over the past few years
- The costs of running a separate organization (for example: setting up and maintaining financial, facility, people, risk management and information systems)
- The time, energy and expertise required to build a strong organizational infrastructure and credible image in the community
- Potential negative reactions from funders, donors, and others in the community46.
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45.
Appendix N provides additional information on starting a new organization.
46. There have been increasing concerns across the country about the trend to developing more and more, often smaller, nonprofit organizations. People identify issues such as: overlapping administrative costs, lack of connections across programs in separate organizations, and the unique challenges in running small nonprofit organizations where there are insufficient funds to hire management resources.
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