This past March I co-founded a (for-profit) NV corporation, which created a Facebook App in the C2C social gifting space. This software, however, can be used in multiple industries, and I wanted to demonstrate this by applying the core concept to NGOs and 'donations', where I think there would be a disproportionate interest and demand.
The problem is, even though we already developed the core software (which has been beta tested) and we are in talks with a well respected National/International charity (with ~400,000 Facebook fans) to pilot it's use in this industry, and we seem to have traction with them… we do NOT yet actually have the money to tweak the software to use it in this fashion, even though it's not that much, and I think $5k should cover it.
But I'm personally tapped out just getting our main App 'mobile friendly' right now, Angels aren't going to touch it (and neither will the micro-funding sites) because there is no real money to be made in the non-profit industry… so I'm considering forming a 501(c)(3) organization myself, with hopes that might bring with it some funding options (and press) that are not open to us right now, so we can move forward. But, if I want to do that, now I need another $5k just to get the non-profit shell up and functional, so now I need more money…
Any thoughts, feedback, rules of thumb, advice (or even loosely masked shallow insults) are welcome:) Am I just making red tape for myself here? Or am I really creating options? Maybe I just need to pitch the idea to some Internet savvy philanthropists and see if anyone wants in? I got software, mockups, and I think a big brand partner... I need $5k to make it happen, and then I can replicate for other non-profits.
I've seen worse propositions.