Atwater cat network using another group’s tax ID scrutinized

While most Atwater residents agree that controlling the city’s overabundance of stray cats is a positive step, new concerns have surfaced about the group running the city-funded program.

Atwater Community Cat Network, a group of volunteers leading the effort to spay and neuter feral cats, uses the nonprofit status of Last Hope Cat Kingdom, an Atwater animal rescue, to allow for tax-deductible donations. Since ACCN is not a nonprofit, the group used Last Hope’s tax ID number, according to volunteer Amanda Hage.

In an email obtained by the Merced Sun-Star, Hage told a donor to make checks out to Last Hope and use its tax ID number, but to specify on the check that the money is for “Atwater cats.” She said the donations are kept in a separate account.

However, using another organization’s nonprofit status and tax ID number carries consequences, according to the Internal Revenue Service.

Anabel Marquez, an IRS spokeswoman, said she could not comment on specific cases due to disclosure laws. But information on the agency’s website indicates that a 501(c)(3) exempt organization must ensure “its earnings do not inure to the benefit of any private shareholder or individual.”

In other words, if a nonprofit such as Last Hope is getting money that’s benefiting any organization other than itself, it’s jeopardizing its exempt status, according to the IRS website.

The agency’s website also indicates there could be consequences for donors who contribute money to ACCN using Last Hope’s tax ID number. The donation may not be tax-deductible because the money is not actually going to the organization whose name is being used, according to the website.

ACCN volunteers trap feral cats, spay or neuter them, administer vaccinations and then release them. The city program was created in response to an ordinance in November that proposed a ban on feeding feral cats.

Atwater Mayor Jim Price said Monday he didn’t know the group – which gets paid $20 to $40 by the city for each cat it traps and sterilizes – was using another organization’s tax ID information.

“If they’re not following the law, that’s something that would have to be explored,” Price said.

ACCN also has not released vaccination records for the cats or an address where people can mail donations, both requested by the Sun-Star. Hage originally set up a Merced postal box to receive ACCN donations, but said it was switched to an Atwater volunteer’s house.

Hage wrote in an email on Monday that donations are now being sent to Monte Vista Small Animal Hospital in Turlock. Hospital director Sara Leimgruber acknowledged Wednesday the hospital is accepting donations on behalf of ACCN, but said they would not be tax-deductible under the current plan.

The Turlock hospital has performed the spay and neuter surgeries on more than 45 Atwater cats thus far.

Critics of the program also worry about how quickly the cats are being released after their surgeries. According to advocacy group Alley Cat Allies, cats are still under the effects of anesthesia for 12 to 24 hours, sometimes longer. In a series of emails, Hage said male cats trapped in the evening are usually released the next day.

Price said that causes him concern because he was told the cats were kept for two or more days following their surgeries.

“My understanding was they were supposed to be keeping them for two days, maybe three,” Price said. “If they’re being kicked out post-surgical 12 hours later, that wouldn’t be good.”

The mayor said he’ll review whether the cats are being given enough time to recover from their surgeries. “That’s not enough recuperation time – I know that for a fact,” Price said. “I will look into that.”

This story was originally published April 22, 2015 at 7:29 PM with the headline "Atwater cat network using another group’s tax ID scrutinized."