DOOK-WOOF-DOOK <[log in to unmask]> wrote on 4/17/2006, 3:03 AM:
>Second....I was questions about the 501c(3) AGAIN.  In the state of
>Pennsylvania, I do NOT, let me repeat...DO NOT qualify for 501c(3).  As
>much as I would LOVE to do that, legally I can not be 501c(3).  I need
>a board of directors for one and alot of other qualifications.  I am a
>family run shelter.  I am not able to make a 12 year old a board member.
>Therefore, I am not opposed to the idea, I am LEGALLY not qualified.
 
I have no desire to enter into a debate on whether or not Marguerite and
her shelter should be helped, or whether or not they are bad.  However,
I do want to clarify something here.
 
Getting 501(c)(3) status has nothing to do with state requirements.
501(c)(3) refers to a section of the IRS Code - a part of the Federal
Code - which discusses tax exempt organizations.  Most organizations that
are qualified under section 501(c)(3) are non profits, but meeting your
state regulations does not automatically guarantee that you will qualify
under Federal Regulations, and also not qualifying under state law does
not mean you can not get your Federal tax exempt status.
 
Marguerite is correct that to qualify for 501(c)(3) exemption, you do
have to become incorporated and have a Board of Directors.  However,
it is her choice not to do this.  Many family run shelters have
incorporated, and manage to follow the rules necessary to have this
status.  It is not that she can't do this - it is that she chooses
not to.
 
I am also not saying that for a shelter to be legitimate they need to be
a tax exempt organization.  There is a lot of paper work involved in
filing and maintaining that status.  However, there are also benefits to
it.  When a shelter does have tax exempt status, there are more sources
for donations and money available to them.  Each shelter operator must
decide for themselves how they want to operate, and whether or not the
benefits of tax exempt status will be helpful to them.
 
The downside of being tax exempt - since you must incorporate, and have
a Board of Directors, you no longer have full control over your shelter.
If you put together the right Board, this is usually not a problem, but
many people do not want outsiders, even their friends, having a say in
how their shelter is run.
 
Additionally, it is necessary to keep certain types of records, and to
keep careful accounting of sources of income and how the income is spent.
Many people simply do not want to be bothered with this type of
accounting.
 
Anyone interested in learning more about tax exempt status, and how to
apply for it should see the IRS website.  Here is a link to a page with
some basic information on tax exempt organizations, and from it you can
navigate to other pages with information that might be helpful or of
interest.
 
  http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html
 
--
Danee DeVore
International Ferret Congress Health Issues Coordinator
http://www.ferretcongress.org
ADV - If your ferret hasn't been tested, you don't know!
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[Posted in FML issue 5216]