Especially Ferrets wrote:
>have a volunteer go clean up a few nice cages real good and set them up
>with a hammy, some toys, ferretone, bag of TF, etc, ...take out the cost,
>add some profit, split the profit with the worker!!  Sometimes it 50
>bucks!! to the shelter and 50 bucks to the worker.  And then have them
>clean a few cages while they are there.  I also give my crew 10% of any
>adoption they do.
 
Uh....maybe I'm wrong here but these aren't volunteers anymore, they have
become paid employees.
 
I hope that you have spoken to someone regarding paid employees and how
they are claimed when the shelter files its tax returns each year and
whether or not you have to provide employee benefits and compensation --
including unemployment and workman's compensation.  That varies by state
and by the number of paid employees.
 
The cages were donated to the shelter and as such, belong to the shelter.
They have a value and are assets of the corporation.  By 'splitting the
profits' you are possibly illegally removing or underselling assets from
the corporation.  You are 501(c)3, aren't you?  Are you filing a 990?
(For those that haven't experienced the joys of the 990 form, its
approximately 10 pages long and it asks for lists of assets, expenditures,
overhead, etc., broken down and explained in detail.) Even on the 990 EZ
form there is a line for salaries and compensation.  Part IV in particular
on the 990 asks for a listing of directors, trustees and key employees,
even if not compensated.
 
Do you have it posted in your incorporating documents that 10% of your
adoption fees goes to the employee 'selling' the ferret?  If not, you
should.  I as a potential adopter, would like to know that your employees
have a vested interest in what ferret or how many ferrets I choose.  And
that part of the adoption fee goes into the pocket of the employee.
 
I would highly suggest telling your accountant these things and also seek
the advice of a tax attorney -- so that you don't unknowingly break the
law.  I'm no expert, but it seems that you are at least stretching some
of them.
 
[FS]
[Posted in FML issue 3559]