Most FLOSS projects probably could benefit from the structure and services that a NPO could provide. However, whether or not you need to start your own NPO to gain these services is a different question. We'll try to address both issues in this document.

NPO Benefits

• Ability to raise funds more easily/effectively
• They can give donors a tax benefit, and avoiding taxes on funds raised
• It may help them create a governance structure
• It gives greater brand recognition
  

FLOSS Foundations spawned off a software project (of sorts). If you are interested in software systems to help in the management of non-profit organizations, join the Foundations Software list.