While maintaining separate records and accounts for a ferret shelter may
appear to be a lot of unnecessary work, the benefits gained from these
efforts can yield great results that can save work and money in the long
run.  Small shelters may not need the structure of an accounting system
separate from personal finances, but larger shelters or those that share
facilities with a large collection of pets or breeding stock may find it
very beneficial.
 
A separate checking account allows the shelter operator to quickly plot
income and expenses and formulate a budget.  A checking account for a
shelter need not be a big expense: US Bank has a nonprofit organization
account type that is free as long as the account balance is at least $1,000
and costs $8 a month otherwise.  The cost of filing for nonprofit status
varies from state to state, but the process is typically simple and
inexpensive (a single form and $20 in Oregon, for example).
 
Separate veterinarian accounts simplifies matters both for the shelter
operator and the veterinarian's staff.  Volunteers may bring in shelter
ferrets to a clinic or generous vets may offer discounted fees for shelter
ferrets, and having a shelter account allows them to properly bill the
shelter without error or doubt.  Likewise it allows the shelter operator to
track veterinary expenses (and confirm them or add details by calling the
clinics) more easily.
 
Keeping track of shelter specific resources such as cages, bedding, food
and litter may not seem important in tracking expenses (for purchased items
this should already be done with the shelter's checking account), but many
donations to shelters are in the form of these resources, which should be
tracked.  Of course donated resources and resources purchased with shelter
funds should only be used for shelter ferrets.  With a separate inventory
of supplies, a shelter operator can easily judge the quantity and condition
of their inventory and avoid shortfalls, which can save money in the long
run.
 
Keeping all three of these items separate: checking account and financial
records, veterinary records, and shelter resources clearly make a statement
that shelter resources and donations will only be used for shelter
purposes, and promotes confidence in the shelter from the public,
veterinarians, ferret enthusiasts, and other businesses.  With this
confidence it becomes easier to obtain donations, veterinary and other
professional discounts, discounts on supplies, and a dedicated volunteer
staff.
 
Filing for 501(c)(3) status is indeed a major undertaking, and will involve
at least one sizable cost (the filing fee) and possibly the fee for an
accountant to help fill out the complex federal forms (and documents that
your corporation must have, such as bylaws).  A shelter calls attention
to itself when it files for tax exempt status, and it must be able to
withstand IRS scrutiny of shelter finances and operations.  However, the
advantages of 501(c)(3) status are significant and include eligibility for
public and private grants, association with other 501(c)(3) organizations,
participating in corporate programs (such as the PetSmart adoption program
or the newly introduced Petco programs), and having tax deductible
contributions (contrary to what many people are told, only donations made
to federally tax exempt coprorations are tax deductible -- nonprofit status
is not enough).
 
As a volunteer for the Cascade Ferret Network
( http://www.cascade-ferret.org ), I know that these procedures are working
quite well, and have enabled its board of directors to plan for the future
to ensure that it will continue to operate with its very high standards for
many years to come.
 
Obviously I see maintaining separate shelter accounting and resources as a
tool to help shelters rather than as shackles that limit them.
 
Leonard Bottleman        [log in to unmask]
                         http://www.teleport.com/~leonard
[Posted in FML issue 2874]