our local folk group has incorporated, donoe the 501 c thing and all
the benefits are that we can be considered for city funding...there
is a tax that is funnelled into entertainment..tax on motels and restaurants or something...we did get a grant from the city to provide
services (music) for folks that were citizens (tax payers? voters?) in that town..so we could get more money, but of course there were strings.we had to get insurance,,and it was a snow ball of paper work.
another group i am in, the contra dance group, joined anther organization in order to get insurance coverage (it might be folk alliance) (or it might be country dance and song society) so there is
another layer of paper work required,,,but then it is a good thing to affiliate with other like minded groups..
We have been also working with the state book keeping system to
acquire abandonded funds from another area music society which folded..our non profit status is supposed to give us access to some
advantages..but there have been times when groups i was in spent
more time raising money to pay for insurance than we did conducting the activities which we were involved in!
good luck to you-and let us know how it turns out.