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You've decided to launch a new non-profit organization by redistributing gently used computers and handheld devices from your local community to those in need, particularly newcomers to Canada and students. You know that raising the needed funds and community support to launch and maintain your new organization is going to be extremely challenging. This is the most important consideration in your decision about a legal structure.

Which legal structure (legal entity) do you think is the best option in this situation? (select the best answer)

A. Registered Charity
B. Public Foundation
C. Social Enterprise
D. Private Foundation

User M Yil
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Final answer:

A Registered Charity is likely the best legal structure for a non-profit focused on redistributing computers and devices due to its ability to issue tax receipts, no tax liability, and access to a range of funding opportunities.

Step-by-step explanation:

Considering the challenge of raising funds and community support for a new non-profit organization, focused on redistributing gently used computers and handheld devices to those in need, a Registered Charity would potentially be the best legal structure. A Registered Charity can issue tax receipts for donations, which encourages community contributions and can aid in fundraising efforts. Such an organization is set up not for profit but to provide charitable, educational, or social services, aligning with the mission to support newcomers to Canada and students.

A Registered Charity benefits from no tax liability, meaning that it can concentrate on achieving its mission rather than focusing on generating profits. Providing there is strict adherence to the rules and regulations governing charities in Canada, this structure also allows for a wide range of funding opportunities, including grants and government funding, which could help in maintaining the organization. Moreover, being recognized as a Registered Charity can add to the credibility and trustworthiness in the eyes of the public, further assisting in the organization's sustainability.

User Elliott Hill
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