I've been checking on the NFP thing. From files of another NFP it looks like we would need to file an application for exemption with the U.S. Treasury Department - Internal Revenue Service. The mudcat would most likely have to incorporate. Regular filing would have to include financial statements. The application is self-explanatory in most areas and would not require legal advice. Operation of the organization must be at least 12 month to sufficiently document the process and purpose of the organization. If NFP status is granted, the mudcat would receive a letter of determination it can then use to solicit tax-exempt contributions. I don't know about your local state laws or internet commerce rules, but I think a local application is necessary as well to solicit tax exempt contributions. Will continue to research this!