Quote Originally Posted by Startup View Post
... requires us to interact with SMMEs, Mobile Network Operators and Mobile Payment Service Providers, which for reasons of credibility, confidence and trust requires us to run a normal For-Profit organisation.
The fact that a business is operated for-profit doesn't help the credibility/trust factor one bit, I reckon. It's about evidence of sound management and control.

The right legal entity will probably depend on your annual budget, but assuming in excess of 75% of the income will come from donations or member subscriptions, there's no need to be anything other than a non-profit organisation in one form or another.

First prize would be a Section 21 company. It has to have an annual audit and has to comply with reams of other legislated requirements which is why they are reasonably credible when it comes to entering into contracts. But they come with a fairly stiff administrative overhead cost.

A trust would also be viable. Still a juristic person but a lot more flexible in terms of rules. However, credibility might prove tricky as a result at times.

Last would be an organisation defined by constitution. The main problem here is that lots of suppliers (including Telkom) will not enter into contract in the organisation's name alone - some individual will have to be bound as the representative (which effectively makes that individual bound as surety for all sorts of potential claims).

I don't know if there are any other ideas on this... Anyone?