BY CARTER COUNTY MAYOR LEON HUMPHREY

There has been a great deal of talk about a 501(c)(3) taking over the Elizabethton / Carter County Animal Shelter (ECCAS). As I have publicly shared on many occasions, I am in favor of an established 501(c)(3) organization taking over the Animal Shelter operations. However, that can only be done by an organization that is capable and has the financial and operational means already established to do so. Our neighboring Washington County has an Animal Shelter and supporting organizations assisting them that are 501(c)(3) organizations. Likewise, the Shelter in Greene County is a 501(c)(3) organization as are most Shelters in the First Tennessee Development District. Many Shelters throughout the country are run by a local Humane Society such as the ASPCA or SPCA.
A lot of people in Carter County are asking the question, “Why isn’t the ECCAS managed by a 501(c)(3) instead of the County Government and especially since Government Shelters, by law are prohibited from soliciting donations or fundraising?” Before you can answer that question you must first understand exactly what a 501(c)(3) is. The best way to share that is by looking to the Internal Revenue Service (IRS) for clarification.
In looking at the IRS website (last updated January 26, 2017) https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-section-501-c-3-organizations
“EXEMPTION REQUIREMENTS – 501(C)(3) ORGANIZATIONS
To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.
Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170.
The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization’s net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction.
Section 501(c)(3) organizations are restricted in how much political and legislative (lobbying) activities they may conduct. For a detailed discussion, see Political and Lobbying Activities. For more information about lobbying activities by charities, see the article Lobbying Issues; for more information about political activities of charities, see the FY-2002 CPE topic Election Year Issues.
ADDITIONAL INFORMATION
Application Process Step by Step: Questions and answers that will help an organization determine if it is eligible to apply for recognition of exemption from federal income taxation under IRC section 501(a) and, if so, how to proceed.
Private foundations — requirements for exemption
Tax-Exempt Status- online training available at the IRS microsite StayExempt.irs.gov”.
In the past, there has been no 501(c)(3) organization in Carter County willing or financially capable of running the ECCAS or establishing their own Animal Shelter. Looking back well over 20 years ago, the ECCAS was established by the County and City governments because of our ‘citizens’ and animals’ urgent needs. There was no other organization capable or willing to establish a Shelter in the County. Furthermore, the Shelter, even run by the government, has never been properly funded or staffed. Based upon research over the past year looking at how other comparable Shelters are operated and funded by both government and 501(c)(3) organizations, past annual combined funding of approximately $200,000 is simply not sufficient. The investigative audit has shown that the past Directors were illegally fundraising to try to come up with the additional funds to operate the Shelter. Not knowing something is unlawful or wrong is no excuse but once you know something is wrong, legally and morally, you are required to comply with the law. We all know now and ignorance is not an acceptable excuse.
In the United States, Local, State and the Federal Government are required to provide services to their citizens that the citizens cannot provide for themselves. The ECCAS must continue to be funded until a solvent 501(c)(3) organization establishes their own Shelter in Carter County or contracts with the County to operate the ECCAS. The only other option is to shut the Shelter down completely and have no Shelter. However, that doesn’t solve the problem and does not address the citizens’ or animals’ needs in our County. I don’t think any of our citizens want that.
I shared with the ECCAS Advisory Board and County Commission in May 2017 that I will be issuing a Request for Proposal (RFP) from solvent non-profit organizations for Animal Shelter Services. That RFP will be going out this month. The RFP will be published on the County’s website at http://www.cartercountytn.gov/public-documents/general-information-notices/ . I would like to make clear to everyone; I support 501(c)(3) organizations such as the Humane Society, ASPCA, SPCA or similar animal welfare organizations. I encourage such organizations to come forward and submit a proposal. If you know of an organization who might be interested, please be sure to help spread the word. Hopefully an animal welfare organization will come forward and ultimately take over the operation of the government Shelter. This would be in everyone’s best interest; especially the animals. Being operated as a government shelter, we are prohibited by law from fundraising which is key to the successful operation of any animal shelter.
Please feel free to contact me at mayor@cartercountytn.gov or by phone at 423-542-1801 if you have any questions or if I can be of assistance to you. My office is located at 801 East Elk Avenue, Suite 201 located in the County Courthouse in Elizabethton. I have an open-door policy and everyone is always welcome.