It's a non-profit. It operates separately from it's funding source with it's own corporate documents, and, one assumes, it's own 501C-3 (tax exempt) status, it's own board and employees. To be a city agency, it would operate under the direct supervision of a city department head and would not have it's own board. It's employees would be employed directly by the city.
As a non-profit corporation it could, if needed, accept funds from sources instead of or in addition to city grants.
The mayor of a large city approaches a group of citizens and suggests that they form an organization to provide social, educational, and recreational programs for local youth. The group agrees and forms an entity called the Community Youth Organization (CYO). The group also chooses a board of directors, and the board hires an executive director and several staff members. CYO’s activities are financed entirely by grants from the city, and many of CYO’s programs are held after school hours in the high school. Is the CYO a not-for-profit or a government organization? Why? What changes in characteristics would be needed to change it from one type of entity to the other?
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