Stuck on what to do...

[WastelandExotics]

Hey everyone: I know it's been a while since I've posted but lots of things have changed / been uncertain in my life for a while now but I think I'm finally putting the pieces back together and know what I want to do. Only problem is, I don't quite know how to execute it.

I used to think I wanted to breed balls and contribute to the hobby that way but over the past half year or so, I've shifted my focus more to rescuing and rehoming unwanted reptiles. The only thing is, to accomplish my goal of a successful non-profit rescue, I need to make some sort of money on the side. I plan to focus primarily on offering feeders (which would also go to feeding the rescues), enclosure and cage decor to start but have been kind of seeing it as a conflict of interest?

What I'd like to do is breed feeders, make enclosures and do all that while making a profit to both support the rescue and support myself (can't run a rescue if I'm homeless) but therein lies the issue. Do I start a for-profit business and rescue and rehome reptiles without the benefit of being a non-profit with 501(c)3 status or is there a way I can form a non-profit and use the money I generate from sales to keep it above water without it being against the non-profit regulations/requirements? Do I form two separate entities or is there some sort of hybrid entity I could form?

Needless to say, I've put a bunch of thought into this already and the fact that I'm coming up short on answers (surprisingly, internet searches aren't yielding any info worth while) is making me a little nervous about going full steam ahead on this idea and depending on what needs to be done and how, my game plan can vary drastically so I'd like to avoid the headache of going with one plan, hitting some sort of avoidable roadblock and having to start all over again. Any sort of advice or help would be greatly appreciated as I'd like to get started sooner than later.

[predatorkeeper87]

Hey everyone: I know it's been a while since I've posted but lots of things have changed / been uncertain in my life for a while now but I think I'm finally putting the pieces back together and know what I want to do. Only problem is, I don't quite know how to execute it.

I used to think I wanted to breed balls and contribute to the hobby that way but over the past half year or so, I've shifted my focus more to rescuing and rehoming unwanted reptiles. The only thing is, to accomplish my goal of a successful non-profit rescue, I need to make some sort of money on the side. I plan to focus primarily on offering feeders (which would also go to feeding the rescues), enclosure and cage decor to start but have been kind of seeing it as a conflict of interest?

What I'd like to do is breed feeders, make enclosures and do all that while making a profit to both support the rescue and support myself (can't run a rescue if I'm homeless) but therein lies the issue. Do I start a for-profit business and rescue and rehome reptiles without the benefit of being a non-profit with 501(c)3 status or is there a way I can form a non-profit and use the money I generate from sales to keep it above water without it being against the non-profit regulations/requirements? Do I form two separate entities or is there some sort of hybrid entity I could form?

Needless to say, I've put a bunch of thought into this already and the fact that I'm coming up short on answers (surprisingly, internet searches aren't yielding any info worth while) is making me a little nervous about going full steam ahead on this idea and depending on what needs to be done and how, my game plan can vary drastically so I'd like to avoid the headache of going with one plan, hitting some sort of avoidable roadblock and having to start all over again. Any sort of advice or help would be greatly appreciated as I'd like to get started sooner than later.

I'd play it safe and make two separate entities. I'd also speak with either a lawyer and CPA to see what is all needed.

[cchardwick]

You could run it like a small animal / dog / cat shelter such as the Humane society. I'd look at one of those organizations and see how they generate revenue, I'm guessing you would want a flat 'adoption fee' to cover your expenses. Not sure if breeding and selling rodents aligns with a non-profit, but you could sure do it internally to feed your animals. Personally I'd use the adoption fees to pay for the rodent feed. You could also give away or sell rodents at a steep discount to bird of prey rescues. Another route that I think would be more sustainable in the long term would be to get a pair of mid range snakes and breed them to generate revenue, then use that money to support the rescue / rehoming operation. Of course that's not really in line with a non-profit, but do you really need non-profit status to do this?

[bcr229]

If you want to sell feeders and build/sell enclosures for profit and take in rescues along with having people make tax-deductible donations to support your rescue then you will need two separate organizations, with all of the overhead that entails (quarterly tax filings, CPA, annual fees to maintain the corps, etc).

Personally I would keep everything at the hobby level for the next year or so, so you don't have to deal with the overhead of maintaining two corporations - which in CA isn't cheap anyway. You would still have to track your income versus expenses and pay taxes on any profit on your own personal tax return, but that's a lot easier and less paperwork/overhead than what you're suggesting. The only downside is that you can't offset losses from your reptile keeping hobby with other income like you could if you were really running a business - but taking such losses is a big flag for a tax audit.

If in a few years you find you start making significant money offering feeders and enclosures then you can look into standing up a business for that.

[WastelandExotics]

Of course that's not really in line with a non-profit, but do you really need non-profit status to do this?

Unfortunately, yes. To pull from shelters and the like in my area, you need 501(c)3 status and those are the reps that seem to need the most help around me. Shelter staff usually don't know anything about reptile care or their needs and these reptiles sit for months in an environment that they aren't thriving in.

Also, I don't think you can even claim to be a rescue without registering with your state and I think that the state would consider all rescues as non-profit, unless I've got that wildly wrong?

[bcr229]

Why couldn't you just do a direct adoption from the shelter if one takes in a reptile? I recently got a yellow anaconda that way, after she was abandoned by a deadbeat tenant and the landlord called animal control. The folks at animal control couldn't wait to be rid of her because she bites. A lot. She's gotten better in the last few weeks though.