I'm lucky enough to train at a place that's affiliated, but I can see where it'd be frustrating to not be able to compete. Really though, how many schools aren't affiliated properly to sign off on a belt promotion?
I think there a lot of misconceptions about this whole thing. It's really not that big of a deal. Take my teammate and I.
My teammate, Mike Harmon is a black belt under Dave Ginsberg (a Mario Sperry black belt). My instructor is under Marco Barbosa.
Both of them just never bothered to get IBJJF certified (Ginsberg is now).
When we did our paperwork, a friend at our gym signed off for us. And the IBJJF KNOWS that the person who signed off didn't promote us, because our paperwork included who promoted us and the dates (our coaches).
It's just a weird technicality. I think it's silly, but not this huge deal people make it out to be. We paid our $40, got our card fairly quickly, and started competing. In fact, Mike won No-Gi Worlds.
If you want to compete in IBJJF, most people find a way, however I'm sure there are outliers. I know organizations like the Jiu-Jitsu Brotherhood have helped individuals get their paperwork signed off on when they were having trouble.
One of my instructors Noh Young-ahm in Korea got his club IBJJF affiliated recently. It didn't cost thousands of dollars. It was a simple, straight forward process ( according to him).