Animal Welfare Professionals

 View Only

  • 1.  Is it Really worth the cost & work to file 5013c?

    Posted 02-05-2023 08:07 PM
    We're new, small, a local cat Rescue.  We have obtained a legal Nonprofit Corp status in our state.... but getting 5013c is Expensive & makes More requirements.   Is it really worth it & do we need a lawyer?

    #FosterPrograms

    ------------------------------
    Christy Hintz-Stecker
    President
    The Cat Connection
    ------------------------------


  • 2.  RE: Is it Really worth the cost & work to file 5013c?

    Posted 02-06-2023 03:45 AM
    Hi Christy;

       Making the decision to form a non-profit can be challenging.  To answer your question I would say "it depends".  

    I would say yes if any of the below statements are true:
    If your intention is to build an organization that goes on beyond your current team's time
    You have a core team of board members and operations team helping to develop the non-profit(it takes a village, a legal person, an accounting person)

    I would also say yes if any of the below statement are true and there is no other 501 c3 in your community you could collaborate with:
    You have liability by fostering cats with recruited volunteers and you are adopting cats out into your community
    You know of specific foundations in your area that have expressed interest in funding your efforts

    I would say no if:
    You have an organization in your community that you could partner with(even if it is in a "pilot" stage) just to check things out.  Use their 501 c3 and you trust this group.

    Things have gotten a lot better about applying for 501 c3 status- it is cheaper to do and the turn around time is only a month or two now.  You can use Legal Zoom to research the process and see if it seems like something you want to do.  

    There can be a lot of administrative management and committee management with forming a non-profit, but it also can be very rewarding too. 

    Good luck Stacy

    PS You may want to check trademark issues with the name The Cat Connection(I know of one Cat Connection in Massachusetts)

    ------------------------------
    Stacy LeBaron
    Head Cat
    The Community Cats Podcast
    Warren VT
    978-239-2090
    ------------------------------

    Original Message


  • 3.  RE: Is it Really worth the cost & work to file 5013c?

    Posted 02-06-2023 07:48 AM
    Stacy's points are all really good, a few more items to think about:

    • 501c3 status gives you federal tax exemption which you would need in order to avoid paying sales tax, so if you're making a lot of purchases or big purchases, it would be worthwhile.
    • 501c3 status also makes your business exempt from paying property taxes, which if you're renting or buying a location for the rescue, can factor in to the ongoing costs you have to pay.
    • 501c3 status also means that donations to your organization are tax deductible, so if you're planning on asking for donations beyond small things like Facebook, will be important for your donors.
    • 501c3 status is also going to be a requirement if you apply for any grants
    There may also be local resources for you that offer free consultation on non-profit/501c3 formation and/or offer small grants to help cover the formation of the organization to offset the cost if you are interested in taking that next step.

    ------------------------------
    Jeff Okazaki
    Humane Society of Jefferson County
    ------------------------------

    Original Message


  • 4.  RE: Is it Really worth the cost & work to file 5013c?

    Posted 02-06-2023 08:33 AM
    Hello Christy - 

    Depending on income expectations you should be able to do the short form that is relatively easy. I used to do non profit applications for people but its literally so easy now. I would suggest however doing it sooner rather than later. Once you have been in business for a few years and then you try to establish a 5013c it becomes a longer process and there are additional schedules.  I would suggest biting the bullet and doing it now especially if you plan to stay small.

    ------------------------------
    SAMANTHA BROWN
    President/Founder
    Living the Dream Rescue
    ------------------------------

    Original Message


  • 5.  RE: Is it Really worth the cost & work to file 5013c?

    Posted 02-07-2023 06:50 PM
    Hi Christy - I founded & run a small dog rescue in Louisiana (approx. 100-120 dogs per year).   I find that having the 501(c)3 designation does open doors that may not be available to us if we didn't have it.  I'd definitely do it.   Honestly, to get your designation now for a SMALL non-profit through the IRS is very simple. I do have a legal background (retired)..but I honestly think anyone who is computer literate and knows the stats for the rescue could handle applying for it.  I believe it's for a group who receives less than $50K annuallY?    I can't swear to that since it's been 5 years since we formed ours..but go to irs.gov and definitely look over the application for a small one.. It's not nearly as scary as it used to be!  Best of luck! Cindy

    ------------------------------
    Cindy Shotwell
    Founder/Executive Director
    Must Luv Dogs Rescue
    ------------------------------

    Original Message


Related Content