Why produce a race?
Here's a scenario I've encountered many times:
A not-for-profit Executive Director participates in a race, is electrified by a huge crowd, and has a very enjoyable experience. He has no idea the race lost money.
He persuades his Board of Directors to approve a race as an organizational fund-raiser and delegates management responsibility to the Development Director. She reviews the necessary components of the event and concludes it will lose money.
Too often, organizations launch races for the wrong reasons.
Fund-raising? Entry fees don't cover costs and overhead is huge. A different type of event would be more profitable.
Get kids involved? Kids don't race. A different type of event would be more appropriate for them.
Conduct a neighborhood activity? Most runners come from outside the neighborhood. A different type of event would better serve the local community.
Think of the goal first, then work backward to select the proper venue.
There are a lot of reasons to produce a race: garner publicity, promote fitness, advocate athletic competition, etc. Just be sure the race offers the most likely venue to achieve the goal. It may be a wonderful event - just not the right one for your group.