1. Legal Considerations for Rescues
October 15, 2017

2. Fiscal Sponsorship as Alternative
Resources:

3. 10 Steps to Start a California Nonprofit
Determine the name of the corporation
Draft and file the articles of incorporation
Appoint the board of directors and officers
Draft the bylaws and conflict of interest policy
Take the initial board actions
Obtain an employer identification number (EIN)
File the initial registration form with the CA Attorney General’s Registry of Charitable Trusts
File the Statement of Information with the CA Secretary of State
Apply for federal tax exemption with the Internal Revenue Service
Apply for California tax exemption with the CA Franchise Tax Board
National Council of Nonprofits Graphic
Resources:

4. Determine if Compliant
Visit CA State Registry of Charitable Trusts to determine if missed any annual filings:
If delinquent or suspended, contact the Attorney General’s Office for help to make current:

5. Federal Annual Filings
Rescues charities must file an annual informational return with the IRS:
Large rescue organizations
Gross receipts ≥ $200,000, or total assets ≥ $500,000
Due 4 months and 15 days after FYE
Form 990
Medium rescue organizations
Gross receipts <$200,000 and total assets <$500,000
990-EZ
Small rescue organizations
Gross receipts ≤$50,000
990-N
(e-postcard)
Form 990-T if unrelated business income
Perform independent audit if gross annual revenue ≥$2M
Review solicitations and donor receipts
Other
Resources:

6. California Annual Filings
Who: All rescue charities
What: Annual Registration Renewal Fee Report with CA Attorney General
When: Deadline 4 months and 15 days after FYE
Fee: $0 - $300, based on revenue
RRF-1 Form
Who: Rescue charities w/gross receipts >$50,000; or ≤$50,000 can file 199N
What: Exempt Org Annual Information Return with CA Franchise Tax Board
When: Deadline is 4 months and 15 days after FYE
Fee: $10 for 199; $0 for 199N
FTB Form 199 or
199N (“e-Postcard”)
What: Annual Statement of Information with CA Secretary of State
When: Within 90 days of incorporation; every 2 years thereafter
Fee: $20
Form SI-100
FTB Form 109 if unrelated business income
Form 3509 if declared political or lobbying activities
Forms CT-NRP-1/-2 if planning to have or had a raffle
Form 267-A if welfare exemption from property taxes
Other
Resources:

7. Prioritize Organization

8. Annual Issues for Board to Consider
Hold meeting at least annually (quarterly or more recommended)
Record minutes
Conduct officer, director, and committee elections
Review major financial reports
Approve upcoming year budget
Approve Form 990 before submission to IRS
Evaluate executive performance
Compare purpose statement and mission against activities
Review bylaws and updated if needed
Perform legal compliance and risk management
Resources:

9. Sample Board Calendar Resources:
Jan
Executive performance
Financial review
Mar
Form 990 (due May 15)
Major program(s)
May
Director and officer elections annual meeting)
Legal compliance
Jul
Mission
Board and committee composition
Sep
Risk management
Fundraising and communications
Nov
Programmatic plans
Budget for next year
*Calendar assumes that the directors elect their successors and the organization follows a calendar accounting year.
Resources:

10. Prioritize Recordkeeping

11. Reduce Liability Exposure
3 C’s for reducing risk:
Conduct (policies/protocols)
Contracts
CYA (insurance)
Use written agreements for adoptions, volunteers, and fostering
Example foster terms:
Rescue retain animal ownership
Expense allocation for routine care and veterinary care
Indemnification and hold harmless to protect rescue agency
Other: nutrition and exercise needs, inspection of foster home, records disclosure, anticipated length of foster relationship, documentation required on return, etc.
Simpler is better when possible
Resources:
More on insurance:
Sample (long) foster agreement:

12. Helpful Resources
Nonprofit Attorney: Gene Takagi, NEO Law Group Animal Law Attorney: Bruce Wagman, Schiff Hardin Legal Zoom Cal Nonprofits National Council of Nonprofits:

13. Brandy Kuentzel, Esq. SF SPCA General Counsel bkuentzel@sfspca.org
Thank You
Brandy Kuentzel, Esq. SF SPCA General Counsel