Everything You Need to Know About Starting a Horse 501c3
What Is 501c3?
Section 501(c)(3) is the portion of the U.S. Internal Revenue Code (IRS) that allows for federal tax exemption of nonprofit organizations, particularly public charities, private foundations, or private operating foundations.
Entities that can seek this determination from the IRS include corporations, trusts, community chests, LLCs, and unincorporated associations. Most 501(c)(3)s are nonprofits.
In order to qualify as a tax-exempt, 501(c)(3) organization, a nonprofit must exist for exclusively charitable purposes that include:
- Religious
- Charitable
- Scientific
- Testing for public safety
- Literary
- Educational
- Fostering of national or international amateur sports
- Prevention of cruelty to animals and children
Planning for Your Horse Rescue
Business Plan
Along with planning the practical aspects of the facility itself, nonprofits should develop a basic business organizational structure and operational plan. A basic business entity, such as a sole proprietorship or limited partnership, should be chosen. The decision should depend on factors like the size and scope of the operation, capital funding, and the long-term goals of the business.
Facility Design
The type and scope of the facility for a horse rescue depends on the size and location of the property, the weather conditions in the area, the number of horses it will house, and the activities.
Overall, there are principles related to the design and construction of the horse facilities that are similar, no matter where the facility is located. Pasture fencing should be strong and able to weather the abuse from horses over time.
The number of stalls will depend on the number of horses you intend to keep. Most light breeds will be fine in a 12-foot x 12-foot stall, but draft horses may need more space. All barns, stalls, and enclosures should offer good visibility to ensure horses and handlers are safe.
Finally, stalls should be inspected for loose boards, protruding nails, and other flaws that can lead to injury. Remember, some rescue horses arrive suffering from medical conditions that require stall rest, which increases the likelihood that the horse can become injured.
Expenses
When you’re formulating your business plan, some expenses are going to seem obvious. Still, many business owners underestimate expenses – or forget some of them entirely.
The general expenses you’re looking at for a horse rescue include the cost of the property and structures, such as a stable and pasture or turnout. Also, you know horses are expensive to feed and care for, but those costs can be far more significant with an abused or neglected horse that’s coming to the rescue with severe problems.
Aside from the direct costs of the horses’ care, you should also consider business expenses like insurance, lawyers, office or software supplies, employee salary, and more. It’s better to slightly overestimate your expenses than underestimate them, which can leave you in a bind with your cash flow.
Emergency Evacuation Plan
Natural and manmade disasters can strike at any time. From wildfires to earthquakes to hurricanes, any of these situations may make it necessary to evacuate horses from the facility. Moving animals of this size and complexity is no small feat, especially if you have a large group.
All horse facilities, nonprofit or otherwise, should have a written evacuation protocol in the event of a disaster. You should create a list of volunteers that can be called if a disaster happens, and all disaster procedures should be reviewed and practiced in regular training sessions to ensure that everyone knows the drill if the worst happens.
The plan should include local facilities that can provide temporary housing, transportation, driving routes to the locations, and a contingency plan if a disaster takes out the primary routes to these locations.
The facility should also have a first-aid kit with adequate supplies for the number of horses the facility can house. Consider supplies like feed tubs, water buckets, shovels, pitchforks, and grooming supplies.
Attending Veterinarian
Rescue horses often come with health problems from life in an abusive or negligent environment. Any new arrivals should be screened by an attending vet to rule out illnesses or injuries. The attending vet should be chosen in advance and should be made aware of the protocol for the horses under the facility’s care.
Quarantine Procedures
Unless the horse comes with current vet records that confirm its safety, all horses should be quarantined for at least two weeks before they’re kept within close quarters with other horses. It’s important to have space and a plan to handle quarantines for new arrivals or horses that develop health problems.
Fundraising
Fundraising, grants, and donations are a big part of running a nonprofit. Rescues often host small events, such as online auctions, fundraising events, and giveaways to collect small amounts of money to help.
Grants are another way to raise funds for a rescue. Along with government grants, organizations like the Equus Foundation, the American Society for the Prevention of Cruelty to Animals (ASPCA), and Blue Horse Charities all offer grants to assist rescues in paying for care and retraining horses to prepare for adoption.
Adopter Evaluation
If you plan to adopt out rescue horses once they’re rehabilitated, it’s important to thoroughly evaluate potential adopters. All adoptions should be accompanied by a legally binding document that prohibits the adopter from selling the horse or placing it with another owner or facility without first contacting you.
Adopter applications should include a variety of information to gauge the horse’s potential new home. Veterinary records to show that other pets and livestock are up to date on vaccinations and veterinary exams and that the prospective owner hasn’t surrendered animals or been brought up on animal cruelty charges. It should also include a questionnaire with questions that are relevant to owning a horse or taking on a rescue horse with possible lifelong problems.
Non-Profit Helps
Filing for a federal 501(c)(3) nonprofit status with the IRS has advantages. With this status, you can raise funds from donors all over the country – and they may even be tax deductible for the donor. It also adds legitimacy to your organization, which may make some feel more comfortable donating.
If you want a 501(c)(3) status, you have to complete IRS documents that include a detailed description of the corporation, its mission, and its strategy. The documents should also include your bylaws, or rules that govern the business, the officers and their responsibilities, the articles of incorporation, and a list of the board of directors.
