Groups that start off small and expect to grow usually have a lot of
problems. 80% of most nonprofit's money comes from individual
donations. Corporate & government grants are usually only for specific
projects, and do not cover general expenses. You need a core of those
$500 a year donors who know how to put the touch on their friends.
You can organize as a 501(c)6 with no problems. Use the 501(c)3
sponsorship when your donor needs the tax deduction. Remember you will
be faced with several income tests as a 501(c)3. Sales of donated
prints will probably be the biggest fundraiser in the beginning, but
will be limited to 1/3 of cash donations as a 501(c)3. You may find the
ability to sell prints, even as a fundraiser, prohibited. Partner as a
project with a big group like APERTURE of Friends of Photography, and
you will be able to raise money much faster because the income will be
matched against their much greater charitable income. Even when you
count the usual 5% management fee. And the folks who buy those prints
are the future power board members.
David