One of the things I like most about this list is that passion that we all
have for our ferrets.  Sometimes though it seems to get the best of us
and we may overlook a good point made by some else.  The point that
Anon. made about whether shelters use funds appropriately is a valid
one.  I can't see anyone setting up as a shelter to make a profit, simple
economics as well as the experience of the many shelters that have come
and gone can attest to the fact that it is a labor of love and that it is
very unlikely to operate in the black.  But to suggest that every person
that sets up as a shelter or rescue has the best intentions would be
erroneous.  It is an unfortunate fact of life that there are people out
there who function in a different reality than what most of us would
consider normal.  Is it possible for someone to set up a "rescue fund",
accept donations and run?  Absolutely!  That's not much different than
those heartless scabs that took advantage of 9/11 to make a quick buck.
And knowing how much we care a community of ferret owners, it could be
an easy target for fraud.  So I question everything.
 
>Since I go to the grocery store and buy chicken, olive oil, chicken baby
>food for duck soup and pay for it with shelter funds, does that mean I
>am using the money for personal gain
 
 - Operating expense
 
>Since I go to Pet Supplies Plus, Pet Smart, and a few other local pet
>shops to shop prices for food in the mix that isn't carried by any of
>the above listed "stores", and pay for the food with funds from the
>shelter, is that profit?
 
 - Operating expenses, also the mileage used is tax deductible.
 
>Since I shop at thrift stores to find bedding and toys and pay for it
>with shelter funds, is that personal gain?
 
 - Only if your making a bed for yourself =).  Otherwise, these are also
   operating expenses.
 
>If that is all personal gain, then the $500 I paid to the emergency
>clinic two months ago for emergency blockage surgery on a turn in and
>paid for it out of my pocket, is that a personal loss?  Or a gain for
>the shelter?
 
 - This would also be an expense of the shelter, however funds should
   avoid being mixed.  A better alternative is to set up a 501 (c) not
   for profit then "donate" personal funds so as to have a tax write-off.
 
>Since the only place in the house that is air conditioned is upstairs
>where the ferrets are (BTW over of the house is ferret shelter) and my
>electric bill runs $125 to $175 over what is does when I don't run the
>air for the ferrets, is that personal loss or shelter gain?  Not to
>mention the water, sewer bill from doing laundry, or the supplies to do
>the laundry.
 
 - Much like any other "home business" many of the utilities and costs in
   your home can be deductible, usually on a percentage of square foot
   basis, unless you can show the direct increase.
 
>Or the tons of money that gets spent on cleaning supplies.
 - Operating expense
 
>How about the tons of paper, and ink for informational handouts.  Or the
>long distance bill for the phone.
 
 - operating expense
 
>Now how about the cost of keeping a roof over the ferrets heads?  We
>bought a house because of the shelter ... is that personal loss or
>shelter gain since the cost comes out of the operators pocket.
 
 - A certain percentage can be used as expense for the shelter.
 
Please note, I am an accountant working towards my CPA.  The answers
given here are simplifications and all matters relating to tax
deductibility should be reviewed by a licensed CPA.
 
James, Melissa, Kassidy & Jasmine
 
Loving:  Bebe, Riley
Missing: Wheezer, Pym, Rikki, Jako
[Posted in FML issue 4230]