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]