Some benefits of an animal rescue group having 501(c)3 Do You Need A 501(c)(3)? When you have formal tax-exempt status, many doors open for you! Most agencies that provide grants to animal welfare organizations require a 501(c)(3) determination letter (a letter that is issued by IRS that states an agency is a 501(c)(3) organization). For example, the Petfinder Foundation Sponsor-A-Pet program is open only to organizations with tax-exempt standing or municipal shelters with a fund dedicated to animal care. Pet store-based adoption centers often require a 501(c)(3) determination letter to utilize adoption cages within their store. Some animal shelters require a 501(c)(3) determination letter from groups with whom they partner to move animals from the shelter environment to foster care. Your group will not only be free from paying taxes on all income from activities related to its nonprofit purpose, but people and organizations that donate to a nonprofit can take a tax deduction for their contributions (the burden of proof for tax deductibility is on them should they be audited). Donors are hesitant to donate large sums to groups without 501(c)(3) status.
Posted on: Sat, 02 Nov 2013 13:10:02 +0000
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