Episode Notes
We’re very happy to offer a conversation, hosted by the MicrosanctuaryA microsanctuary is a small scale community of human and nonhuman (generally “unconventional or farmed”) animal companions, who live together in a chosen shared lifestyle and in commitment to ending the oppression of all beings. Microsanctuaries adhere to the notion that no nonhuman member of the community should “serve a purpose.” Microsanctuaries can exist in any context: rural, suburban, or urban. A microsanctuary can consist of as small a community as one animal and one human caregiver. For more information on microsanctuary please refer to the Microsanctuary Resource Center. Resource Center, with NonprofitA non-governmental organization whose primary purpose is something other than selling goods or services. Specialist Julia on the pros and cons of nonprofit status for animal organizations. In it, MRC staff Alastor and Bird discuss with Julia some of the considerations that come into play when deciding whether to go nonprofit!
This Episode’s Referenced Open Sanctuary Project Resources:
- Microsanctuary Resource Center Website
- Starting A Nonprofit Organization For Animal Sanctuaries In The United States | The Open Sanctuary Project
- Weighing The Costs And Benefits Of Nonprofit Status | The Open Sanctuary Project
- A Suggested Governance Curriculum For Your Animal Organization | The Open Sanctuary Project
Episode Transcript (Auto-GeneratedThe following content was transcribed through an automated process and may contain transcription errors or misspellings.)
Julia Magnus: Welcome to another episode of the Open Sanctuary Podcast. I am Julia, a nonprofit specialist, and today I am very happy to share with you a collaboration with our friends at the Microsanctuary Resource Center, Alastor and Bird. As part of their education initiative, the Microsanctuary Resource Center has been recording a series of conversations on sanctuary-related subjects which includes the chat that we are sharing today. In this discussion, we touch on some of the pros and cons to nonprofit status and why organizations might choose one or the other. Thanks to MRC for creating the space for this discussion. If you would like to learn more about MRC, you can check them out at microsanctuary.org. You can also find the video of this discussion on their site and on ours.
Alastor: Thanks Julia and Bird for joining me for an MRC chat. We are going to be talking a little bit about becoming a nonprofit and thoughts around whether or not that is a good model for someone who is starting a microsanctuary or at any stage of their rescue journey. I really wanted to talk to you two about it. Julia, because obviously you are the nonprofit specialist at the Open Sanctuary Project and we have worked with you on a number of resources that are geared to help people become 501(c)(3) sanctuaries. You all have a ton of resources on the administrative steps and how to do it if you decide to do it. But I really wanted to hear from both you and Bird because in your non-work lives, you run private microsanctuariesMicrosanctuaries are small scale communities of human and nonhuman (generally “unconventional or farmed”) animal companions, who live together in a chosen shared lifestyle and in commitment to ending the oppression of all beings. Microsanctuaries adhere to the notion that no nonhuman member of the community should “serve a purpose.” Microsanctuaries can exist in any context: rural, suburban, or urban. A microsanctuary can consist of as small a community as one animal and one human caregiver. For more information on microsanctuary please refer to the Microsanctuary Resource Center.. I thought we would just go ahead and jump right in and talk first. I would love, Julia, if you could maybe talk a little bit about why you have decided in your own rescue work to not pursue becoming your own 501(c)(3).
Julia Magnus: Sure. In my private life, there are two things that I do. One of them is that I am a co-founder and co-organizer of a grassroots rescue organization. By grassroots, I mean we do not have any formal status, which I think when we are saying nonprofit here, we are talking about formal recognition by the federal government and the granting of the title of 501(c)(3) status. I do not have that for Chicago Rooster Crew, which is the grassroots rescue. I also do not have that for my private microsanctuary, which is home to my partner and me, as well as 23 non-humans who pretty much run the place. For neither of those areas of my life have I chosen to get formal recognition. In part, because the microsanctuary part is just my lifestyle. I never thought about it. It never occurred to me that this would be something I would want formal recognition for or that it was anything other than a way of living for me. For the grassroots rescue, and I am sorry if you hear raptor screams, those are just parrots; we have parrots as residents and you might hear someone screaming “Hannibal” or something that sounds like a baby screaming, but that is just Hannibal. The reason the grassroots rescue always stayed grassroots and never got formal recognition is for a few reasons. First, it came together organically as a group of people who just wanted to pick up stray birds that were loose in Chicago. We just did that together and did not think about making it a formal thing. We did not even really have social media until we encountered our first cockfighting bust in 2019. At that point, we needed more help, so we did get social media going. We have an Instagram and a Facebook because we are super fancy. But we did not get formal status at that time because we were too busy with all the bonkers stuff that was happening. As it turned out, there were more busts that followed, and making decisions and taking action seemed like getting a formal 501(c)(3) in place, with all the structure that involves, could even be a hindrance to our decision-making process and our action. It just never happened. Also, people cycle in and out at different times depending on what they are capable of. Obviously, with a 501(c)(3), you need to have a board and people who are 100% committed at all times. Sometimes people just cannot give that much, and having that flux and flexibility that comes with being grassroots was our best fit. I will kick in that there have been times where we felt like the 501(c)(3) structure would have been helpful, typically when we received large donations where donors wanted to receive a deduction. In those cases, we used a workaround called fiscal sponsorship, but that is a whole other thing. We have been able to work around that with the grassroots organization.
Alastor: Cool, that makes sense. The formality of the 501(c)(3) and the hierarchization of decision-making can be a component that is not always obvious to people regarding what it means to be a formal organization. Bird, I know you are also a private microsanctuary, so I am curious if you would share your thinking as to why you have never decided to pursue becoming a formal 501(c)(3).
Bird: Yeah, for me it has been two main reasons. The first is very similar to Julia; this is my life, this is my home, and these are my family members. That is very sacred to me, including the relationships I have with them. I never really thought about them on a grander scale as part of an organization. The second reason would be the pressure, whether I put that on myself or not, of growing bigger and doing more. So many of my friends that have nonprofitsNon-governmental organizations whose primary purpose is something other than selling goods or services. are inundated with messages asking for help, and it almost feels like people are entitled to their resources and time. I never wanted to put that pressure on myself or have that take away from the residents I already have. They have always been my priorities and my family members.
Alastor: That makes sense, thanks for sharing that. I am really resonating with what you both said about them just being family. It is a component of why I see people pursuing 501(c)(3) status when they start a microsanctuary for farmed animalsA species or specific breed of animal that is raised by humans for the use of their bodies or what comes from their bodies., whereas if someone adopts a couple of cats or a dog, their next step isn’t usually to start a 501(c)(3). It is an interesting example of how we think about certain species differently than others. There is a model and messaging where, if you are a farmed animalA species or specific breed of animal that is raised by humans for the use of their bodies or what comes from their bodies.<animal rescueAn organization that helps secure animals from dangerous or unacceptable situations. As organizations, rescues may or may not have dedicated permanent infrastructure for housing animals., you need to start fundraising and thinking about becoming an organization. It is a phenomenon worth pointing out because it happens so often, and it is great to see examples of people who just rescue chickens the same way they rescue cats. Julia, what do you think would be the best reasons for someone who runs a small-scale, intimate microsanctuary to pursue 501(c)(3) status?
Julia Magnus: I think the most common reason I hear, and one of the most common questions OSP gets asked, is because they want to be able to raise funds. I do not know if that is the best reason. There are other reasons you might want it, like if you are working closely with a municipal shelter and you need it to pull animals from that shelter. You may also be able to get around that by affiliating with other 501(c)(3)s. For most people, the thought that pops into their head is fundraising, and they think it is easier if you are a 501(c)(3). It opens doors, but it also comes with its own constraints. Every time you increase a variable of capacity, like fundraising, you are also decreasing another area of capacity because 501(c)(3) status comes with many requirements like filings, record-keeping, a board, regular board meetings, and doing your 990 every year. I think people do not recognize that the potential expansion in fundraising comes with these other burdens. Another good reason to consider it is for limited liability. If you have an educational component that involves members of the public coming to your home and potentially interacting with residents, there are risks associated with that, and having limited liability can be helpful. You also can enter into contracts as an official incorporated body, which you cannot necessarily do as a grassroots group. It depends on what you want to do, but the most common reason I hear is that it will be easier to raise money, though I always tack on that it is going to be hard.
Alastor: Yes, Ed McMahon will not just show up with a check. Becoming an organization is not a guarantee for being able to raise money. We became a 501(c)(3) for Triangle Chicken Advocates primarily to be able to work with county shelters easily. Fundraising is hard even if you are a 501(c)(3), and it is only becoming more difficult as more people start sanctuaries and the economy fluctuates. It is not a guarantee whatsoever. It also comes with a lot of responsibility, like being on the radar of government agencies for reporting. We have to file paperwork every year, and that can be very stressful. It is important to consult resources like what you have at OSP to understand the full picture.
Julia Magnus: It is a whole thing. I know organizations that started 501(c)(3)s and did not realize they had to do annual filings, and then years later found out they did not have status anymore. You can fundraise as a grassroots organization, but you should consult with a qualified accountant or financial advisor regarding GoFundMe and whether donations are considered gifts or taxable income. General disclaimer: none of us are your accountants or lawyers. You need to get your own and consult with someone in your jurisdiction.
Alastor: Thank you for bringing that up. It is worth doing your research because rules are different from state to state. You need to be aware of rules at the federal, state, and local levels because you open yourself to potential consequences if you do not follow them. That actually happened with us in our first year; I mixed up the deadline for the charitable solicitation license in North Carolina. I realized after the fact that our license had lapsed, and though I fixed it quickly, it was something I did not even realize I had wrong. Julia, what are your thoughts on what can go wrong with either model?
Julia Magnus: I think it is really important to figure out what kind of person you are and what you like to do. A lot of folks in this movement are direct care people who want to work directly with individuals. If that is you and you hate spreadsheets, you are going to need someone who likes spreadsheets to help you if you go the nonprofit route, or you will have administrative nightmares. As a nonprofit, you are also beholden to the general public, which brings pressure. You may be pushed beyond your capacity because the nonprofit model mimics a for-profit corporation. I have seen organizations get caught in a trap where donors want to see new rescues and stories, which can lead to slipping into a corporate vibe of chasing numbers and funds. This can impact the residents and the perception of the entire movement if organizations take on more than they can chew. On the grassroots side, bad scenarios can involve liability. If a resident bites a visitor, you could face a lawsuit with minimal liability protection. There is also less structure and sometimes less community accountability. Good communication and being clear on your goals and capacity from the get-go are ways to mitigate these traps.
Alastor: Those are great points. With a private sanctuary, there is also the potential for someone to feel alone or get lost in grief and the struggle of managing care. Even if you remain private, remember that everyone needs support. Community is really important regardless of the structure you choose. Julia, do you have any recommendations for how people could get experience with what it takes to be a 501(c)(3) before they actually pursue it themselves?
Julia Magnus: Research is the first thing. Go to OSP and check out the resources written by our board member Peggy, who is an attorney and nonprofit consultant. She wrote a resource on starting a nonprofit in the United States, which is a critical read. I also did a resource on the costs and benefits of grassroots versus nonprofit. To get hands-on experience, volunteering with other organizations and helping with administrative tasks or record-keeping is useful. You can also look at the publicly available 990 filings of organizations you admire to see their funding and expenses. You can find these on the IRS website or ProPublica. And again, talk to a licensed professional in your jurisdiction.
Alastor: I would add that you could look into volunteering as a board member. I have seen cases where someone who was a board member for a sanctuary eventually started their own microsanctuary. Larger sanctuaries often recruit board members from the local community, and it is a way to get a feel for what it is like to be a 501(c)(3) without starting one yourself.
Julia Magnus: I also wanted to mention fiscal sponsorship again. It is a pathway where you can be grassroots but work under the umbrella of a 501(c)(3) so that donations can be tax-deductible. They take an administrative fee, and you essentially become a program of theirs.
Alastor: It does not have to be another farmed animal rescue; there are nonprofit centers or community development organizations in your state that might offer fiscal sponsorship programs. Definitely do some research because it may be available from places you would not think of right off the bat. Julia, are there any other OSP resources you would like to mention?
Julia Magnus: OSP is divided into a few categories. We are best known for our direct care resources, but we also have many on educational programming, governance, and organization. If you click on the “Explore Open Sanctuary” button on our website, you will see categories like “Addressing Possible Liability”. We also have a “Governance Curriculum” which is a suggested order of reading for our governance resources. Many people also like our fundraising resources written by Chrissy DiNardo, who is a development professional. If you need something you cannot find, email us and we will try to make it for you.
Alastor: I cannot recommend the stuff at OSP highly enough. The governance section is really valuable for people at the stage of thinking about how to do this. I also recommend consulting state and federal agencies to know what is required if you decide to become a nonprofit. Julia, it has been really helpful to talk with you. Did you have anything else you wanted to add?
Julia Magnus: I am just super excited you are doing this. This topic can be intimidating, so it is great to offer it in this format. People can listen to these while they are on long drives to the vet.
Alastor: Open Sanctuary Project has its own podcast as well. You have been going for a few years now?
Julia Magnus: Yeah, we are currently on hiatus, but there are about 58 episodes to listen to.
Alastor: There is plenty of stuff to listen to. Julia, thank you so much. Bird, thank you so much for helping us out here. It was great chatting with you both.
Julia Magnus: We hope that this podcast has been helpful to those considering formal nonprofit status. Many thanks to our friends at the Microsanctuary Resource Center for hosting this conversation. You can check out more MRC chats at microsanctuary.org. If there are more subjects we can cover, please contact us via our page at opensanctuary.org. We have put a list of referred resources in our show notes. If you found this valuable, consider leaving a five-star review. Both MRC and OSP warmly welcome tax-deductible donations. Thanks for listening and for your support.
