Additional 501 (c) 3 answers from a professional in the field

Supporting information regarding becoming or adding a 501(c)3 organization:

From the report available below

Note also that audit costs generally begin at around $5,000 annually for small organizations.
This would be in addition to the $15,000 compliance costs referenced above.

It is my recommendation that if you’re not looking at a minimum of $100,000 in real dollars contributed annually, this will not pay off appropriately for the organization.

Additional information about requirements for compliance with the rules for 501(c)3 organizations from Lawyers for NonProfits.