Tax Information on an Animal Sanctuary

Most animal sanctuaries are non-profit organizations.

Legal issues arise for any given organization, be it public or private, profit or non-profit. The IRS requires all businesses and organizations to file taxes regardless of filing status. Rescuing animals may seem far from paperwork but following the laws will help build a solid foundation for your charitable organization.

Charitable Organizations

Animal sanctuaries are usually founded on the premise of saving homeless, hurt or difficult animals, but just as for-profit businesses need to file taxes, so do charitable organizations such as animal sanctuaries. Most animal sanctuaries are tax exempt non-profit organizations; they rely solely on volunteers and donations, which are tax deductible. A non-profit status, aside from showing credibility, helps separate the charity and personal finances. In order to track the money coming in and going out, a charitable organization must file a Form 990.

Tax Exempt Requirements

According to the IRS website, "to be tax exempt, a charitable organization must be organized and operated exclusively for exempt purposes." The organization may not operate or use any of its earnings for private parties. The charitable organization may not have a transaction that brings economic benefit for an unqualified person, such as someone who has influence over the organization.

Federal vs. State

For most organizations, federal tax law does not require specific verbiage in the bylaws or internal operating rules. As stated by the IRS website, state law may require non-profit organizations to have bylaws. The IRS advises contacting your state official for more information.

References

• Petfinder: How to Start and Animal Sanctuary
• IRS.gov: Exemption Requirements -- Section 501(c)(3) Organizations
• IRS.gov: Exempt Organizations - Bylaws

Resources

• IRS.gov: Life Cycle of a Public Charity