For the second time in three years, the Cherryland Humane Society is facing a desperate financial situation and possible closure.

The board of directors says it needs to raise $500,000 to keep the more than 60-year-old nonprofit animal shelter afloat and caring for the 60-plus animals currently lodged there. Letters have been sent to previous donors and other fundraising activities are in the works while the board explores “numerous ways to ensure financial stability going forward.”

Local veterinarian and Board President David Burke says donations are down considerably, costs are up and the organization has enough money to operate “another three or four months.” If funds don’t materialize, he sees two choices: cut operational hours and staff or close down completely.

“I would hate to see us have to do either one,” says Burke, who has served as president for three years and also was on the board from 1980-86.

The dark cloud looming over present operations is a mortgage debt of more than $800,000, according to Burke. The $500,000 financial target will primarily go toward paying down the building loan and to help fund daily operations and cash reserves.

“We have been hard pressed to pay that mortgage debt,” Burke says. “Without the mortgage, we would be sitting pretty good.”

The animal shelter constructed a new, state-of-the-art facility on Ahlberg Road (off LaFranier) in 2002 – at a cost of $1.3 million, including the land. Building pledges were secured to pay off the new building, says Burke, but most were stock-based. When the market bottomed out, most of those financial promises fell through.

The Humane Society’s previous facility was a converted old house with a crumbling foundation, says Burke, that couldn’t be adequately sanitized and had a poor ventilation system.

“The disease rate was much higher then,” due to those conditions, says Burke, and so was the number of euthanizations, as many as 50-60 per week. “Right now, it’s 20 per year,” he says – either due to serious behavior issues that put caretakers at risk or animals suffering due to incurable illness.

The Humane Society also found itself facing closure back in 2011 before the community raised some $200,000 to keep the doors open.

The nonprofit’s 2013 expense budget was $430,600 (this year’s budget has not been “finalized” according to Executive Director Mike Cherry). Current operational costs are approximately $29,000 monthly in addition to an $8,800 mortgage payment.

Planned giving such as wills, trusts and charitable gift annuities make up the bulk of the Humane Society’s funding – contributions the board says are usually large, but also infrequent. The board says the current shortage must be made up with donations and memberships.

A year ago the Humane Society partnered with Grand Traverse County Animal Control to house stray animals. The county pays the Humane Society $2,262 per month for providing care (based on a 5-year average of 343 animals).

“That’s break even at this point,” says Burke. “We may even be losing a little money on that.”

Two revenue-raising ideas the board has discussed are raising the $125 adoption fee (which is considerably lower than other area animal adoption groups, according to Burke), and requiring a donation when people drop animals off – rather than simply requesting one. Board members are concerned, however, that raising fees will discourage adoptions and increase the number of abandoned pets.