It is not quite true that 501(c) IRS registered non-profit can not be
involved in politics.  The 501(c) status prohibits you from spending more
then 5% of your budget on political lobbying, campaign contribution, etc.
 
A 501(c) is allowed to educate the public about existing laws and attempts
to change them, inform people how elected officials voted, and to provide
educational materials to the public and the gov't.  You can testify in court
as an expert witness, file friend of the court briefs, etc.
 
Running a 501(c) does not suspend your individual 1st amendment rights, you
still have the ability to sign petitions, speak to elected officials, write
letters, etc.  As long as the organization does not spend more then 5% of
its budget on politics it is legal.  501(c) like AARP, and many religious
groups with 501(c) are very active in politics within these restriction.
 
Generally the 501(c) that get into trouble are the ones that handle a lot of
money, are publically biased togethers a certain idealogical position, have
government grants, or involved in government watchdof activies.  The
Christic institute is a fairly well known example of a 501(c) that was
attacked by the IRS because of its watch dog role in opposing US policy in
Latin America.
 
I used to be involved with running a 501(c) org and the 501(c) doesn't
really pay for itself unless you take in more money then you spend in the
same year, or you plan to asks for public or private grant money, or hope to
get donations from rich people looking for tax write-offs as they main
reason for giving.
 
You could operate a shelter as plain old Doing Business As (DBA) and just
pay yourself nothing, and make sure you don't make a profit (that should not
be hard).  That will allow to buy at wholesale (no sales tax).
 
Being a corporation does have some REAL advantages if you are a shelter.
Mainly as a corporation if someone visits you to adopt a ferret, slips and
breaks a hip they can not sue YOU as an individual, only the Corp assets can
be sued.  This should be considered as running a shelter will give you
plenty of ways to be sued (adopted ferret bites new owner...).  This will
protect your house, car, IRA, and the assets of your husband or wife.
 
Most business sections of newspapers are full of ads to incorporate in cheap
states like NV or MT.
[Posted in FML issue 1582]