Non-for-profits take a lot to setup and administer ... more so than
corporations. I've set up all different types of corps: Schedule S,
Schedule C, LLCs, but never a 501c3 (non-profit). I have 2 family
members who have extensive experience setting up and administering
501c3's and from talking with them about it over the years, it's much
more work to administer than any other type of corp. Nevertheless, as
comments in this thread point out, there is a body of users who will
not consider web2py unless it has some sort of "foundation" status/
ownership. I'm not an attorney, so take what I say with a heavy dose
of salt -- I think it's OK to discuss not-for-profit status at this
time, but probably too early to execute on going all the way. I say
that because I think web2py functionality is still where the bulk of
effort should go. We're still in the early-adopter stage of web2py,
and the people you're going to lose by not being a 501c3 are probably
in the early- or late-majority category. Demonstrating an intention to
move in this direction is probably good enough for the early adopters
and maybe some early majority types. I know that under the current
structure, I'm not the least bit concerned about moving my apps to
web2py. But then again, I have full control and don't report to a
pointy-haired boss somewhere who has a herd mentality.