Support the Pets, Inc., a § 501(c)(3) organization, provides pet food to humane societies. All of the pet food is received as contributions from individuals or from a wholly-owned, for-profit subsidiary (Sales, Inc.), which is in the retail pet food business (i.e., pet food that has been in inventory for over 120 days is transferred to Support the Pets for distributions to humane societies). In addition to the pet food, Sales distributes 75% of its net income each year to Support the Pets.
a. Is Support the Pets or Sales, Inc., a feeder organization?
b. How would your answer change if nearly all of the work of Support the Pets was done by volunteers?

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The Answer of Support the Pets, Inc., a § 501(c)(3) organization, provides pet food to humane societies. All of the pet food is received as contributions from individuals or from a wholly-owned, for-profit subsidiary (Sales, Inc.), which is in the retail pet food business (i.e., pet food that has been in inventory for over 120 days is transferred to Support the Pets for distributions to humane societies). In addition to the pet food, Sales distributes 75% of its net income each year to Support the Pets.
a. Is Support the Pets or Sales, Inc., a feeder organization?
b. How would your answer change if nearly all of the work of Support the Pets was done by volunteers?