Hi all,

I looked though the archives when I joined the FML, and noticed the
controversies regarding this big rescue attempt. I think some of
it certainly has to do with a lack of knowledge about reporting
requirements, and of the function/rules of 501c 3 organizations/ aka
charities. You do NOT have to file with the IRS until the following
year, and if you are not great at record keeping and are a small org
you just have to put your receipts/expenses in a box and pull them in
March of the following year (as a volunteer with a non-profit I do that
with my expenses I'm embarrassed to say, but my tax guy understands
when I file October 14).

You are supposed to send an acknowledgement/receipt of cash donations
by the end of the calendar year or by a few months in the next year so
you can have something to give the Infernal Revenue service, but other
than that no organization is required to give a daily or monthly
accounting of their expenses. That would be an incredible amt of
paperwork and a burden for large groups and I doubt you could have
one rule from the IRS for a small charity with one executive director
and another for a large charity with hundreds of employees.

I belong to a wildlife organization that takes in injured wildlife. We
are a 501c (3) organization. We do NOT have to show our current years
bookkeeping to the IRS, members of the public or anyone else. Another
misconception: as treasurer for about ten years I was told by several
people who joined the group that we should/could not make a profit. I
explained that non-profit meant no distribution to shareholders and
that charities (501c 3's) can pay staff, have savings accounts for
future catastrophes (oil spills, emaciated seabirds during El Nino,
fires with burned animals, fires in rich suburbs -- can you guess what
state I'm in ?).

People (even volunteers) who got copies of the budget/previous years
expenses of the previous year were often horrified that much of the
expenses - in 2001 when I retired - $292,000 (for 10,000 animals) -
went to salaries, payroll, taxes, insurance, telephone, and rental of
our center - gas and electricity costs were enormous in the winter.
Actual food, vet bills, caging, feed, utensils, equipment were only
about 66,000, fundraising/newsletters/postage cost 8,000 (newsletters,
events. Salaries at our center (so at least one person per shift turned
up at our center to feed 50 baby birds 12 hrs a day, 7 days a week and
supervise volunteers) were $70,000. Repairs maintenance (computer
crashes are expensive) $7000,

We have/still have a separate office (rent15,000) more paid staff to
answer questions from pissed off members of the public who complain
their animal (non-releasable) was euthanized -- groan ($25,000) and to
keep paperwork straight. We have someone to reimburse some volunteer
costs, answer the phone and generally keep paperwork records. Oops
forgot FICA and the workers comp -10,000. Rent was about 30,000 for
office and our animal care center, electricity and water extra. We did
have a bookkeeper (we paid one -- ouch 6,000/yr) and she was usually 2
months behind in record keeping because she did not charge us the full
rate. And the auditor -- to make sure the IRS didn't get us- another
2,200. Guess they would go to the IRS with us if we needed it - when
someone complained they hadn't received a thank you letter (another
way to really be mean to your local shelter).

Those of us who do wildlife home care with this group do pay our own
expenses - but write off the mileage, food etc as IRS deductions. And
why the paid staff rather than volunteers you may ask? Well, sorry
to say, few want to supervise at our wildlife center on weekends,
weekdays, Thanksgiving and Christmas etc for 12 hour days. People
have to live, work and pay the rent.

For our 10,000 animal caseload in 2001: About 80% birds, 20% mammals.
It broke down we spent over 11,000 on vet bills (usually free
euthanasia, but mammal and bird surgeries are usually $200-$500 a pop.
(Its double that in 2006), In 2006 raccoons cost us $3000 alone in vet
bills, admittedly 90 animals - only about 20 with injuries - and we pay
even if they die - how unfair is that!!!); caging in 2001 (admittedly
aviaries and large mammal enclosures are not needed for ferret rescue)
was 23,000; (repairs ending up being done every year - even with free
labor from our cage building team); feed and supplies (some donated or
bought by volunteers but the rest purchased) 22,000; phone bills (we
have volunteer phone answerers, but we pick up the phone costs on a
plan from A T and T) 5,000. This did not include costs for our
administrative stuff -newsletters, answering email, which a ferret
rescue might not have to deal with.

Every organization is a little different, but some things are
expensive - animal care, feeding, meds, vaccinations, vet bills. And
what I listed was the costs for 6 years ago!!! People are demanding
this charity to account for expenses as they are carrying on the
rescue. If that is the case, I think we should all be required to
report to the IRS on our tax status on a monthly status as well; after
all it is the same situation, and only fair. If anyone wants to join
with me to call the IRS and suggest that we all do this, give me a
call, but you'll have to get my phone number from BIG since I am one
of those illegal ferret owners.

Finally, I think it is a little tough when you are swamped with
animals, trying to place them, , fund raise, pay bills, answer email,
run a website, even maybe get some sleep, to answer people who want a
printed spreadsheet -- right now dammit -- and a receipt so I can list
in my deduction to charity in 2008!!!! I'm being facetious of course,
but you need to walk in someone's shoes before you can tell them how
to behave.

I think we should cut the lady who helped these animals a bit of slack.
But that's just my opinion. And for those suspicious folks, I checked
the IRS site -- and yes she is a 501(c) 3 charity. You have to keep
records for that or they nuke you from the list.

M,
plus Ferris the new head ferret, Foster the follower, Felicity the
female head ferret, Evelin with a heart problem, Buxom Babs(over wt)
and Xena the screaming warrior queen.

[Posted in FML 5811]