We fall in the first category, since their requirements for open source software projects are well beyond our present capabilities. But here is the problem I found with the first category: we don't have to do all the legwork of becoming a 501c not-for-profit, but in order to accept donations and make use of them, we need to apply to a Fiscal Host, which is typically a 501c, which uses their bookkeeping department to run the books on our donations, as well as hold the money, and then disperse it when we submit invoices that follow rules we set up.