Awww...I'm a self-professed kitty queen!!! I've owned and loved cats long before dogs, and besides my current 3 doggies, I also own 3 cats!!! Equal opportunity pet-owner, here!
This kitten is closer to the 4 month mark, and could easily be neutered NOW. As long as he's larger than 4 lbs., the neuter will be fine. And please, don't get him declawed, in case ANYONE tries talking you into that...it is absolutely cruel and unusual, and can have lifelong detrimental consequences on his health and well-being. I would also advise against allowing him to roam outside...I know a lot of people choose to give their kitties outdoor time, but unfortunately, there is a host of horrible consequences to this as well. It's certainly better to be safe than sorry.
As far as food, if you really want to go with a cheap but somewhat healthy option while you're shopping around for a better food, try the Meow Mix wet pouches. I know it sounds nutty, but flip over the pouch, and you'll see that the ingredients are fairly good...real meat, few by-products, etc. Meow Mix dry is crap, of course, so don't even bother with that. And, if for some reason, you end up keeping the little guy, and you want to try a better food, I'd highly suggest Innova, Wellness, Felidae, or Chicken Soup for the Cat (or Kitten) Lover's Soul.
Get him used to nail trimming early...play with his paws A LOT to get him used to the feel of having his little toes manipulated. And get a scratching post, so that he has an APPROPRIATE outlet for scratching behavior, which cats physically and mentally NEED to do. A vet visit is definitely in order NOW, to rule out FIV, FeLK, and other disease, and also to eradicate any ear mites or internal parasites. Toys don't have to be fancy for a kitten this young...wadded up balls of tinfoil, empty toilet paper tubes, and if you can find one, get "The Cat Dancer", which is basically a long wire with a tube on the end that simulates an insect's movement...cat's LOVE them...they're only about $4.00 at most pet shops. And please, no balls of yarn, or string...it's actually a strangulation and choking hazard.
Cat's are NOT den animals like dogs, and don't appreciate confinement as much...a safe room, such as a bathroom (toilet seat DOWN), would be better, equipped with litter pan, and food and water at the opposite side of the room, would be preferable to an actual crate for the kitten.
And he may not like or appreciate dogs NOW, but given time and patience, he probably will with enough exposure at this age. It's best to socialize kittens with dogs while they're this young, because if you wait too long, they tend to never quite get used to the idea later down the road. Cats and kittens need much longer to see that dogs and cats can be friends...dogs tend to try to make friends with anything right off the bat, and cats really aren't like that.
As far as adopting him out, a local no-kill shelter is a good option, as he's cute, young, and will get snatched up easily because of his size, unfortunately. He'll be far more easily adoptable because he's a kitten...it's the adults that have a far rougher go of it in shelters. However, if you do decide to re-home him on your own, please visit TCS (The Cat Site), as I'm sure you will definitely find someone more than willing to adopt him...
www.thecatsite.com ...it's a fabulous place for all things cat, and people there will bend over backwards to help you find a GREAT home for him. If you want to re-home him through a local contact, charge an adoption fee...say, $35 or so. Have him neutered PRIOR to the adoption, and keep records of his prior vet visits so his new owners know where he is in his vaccination and de-worming schedule. Remember, there is no such thing as a "free" kitten or puppy, so don't feel bad about charging a fee...you'll be more likely to attract someone who will take owning the kitten seriously if they're willing to pay for him.
Good luck...he looks like a little delight! Be prepared for some KITTEN CRAZIES to set in once he's a bit more comfortable...kittens are nuts!!! But, they are so much fun...and worth every headache they tend to give us!