Last October, the no-kill animal shelter nearly closed their doors due to shortfall of about $400,000. But were able to recover due to a surge of community support.
KYLE, Texas — A group of Hays County residents are calling for more transparency from the PAWS Shelter of Central Texas in Kyle, months after the nonprofit nearly closed due to financial troubles.
PAWS Board President Greg Sabatini said the organization is now in a stronger position.
“We feel pretty good about where we are right now,” Sabatini said.
But that wasn’t the case just a few months ago. Last October, the shelter faced a financial crisis that almost forced it to shut down.
He attributed their mounting financial troubles to years of leadership turnover, rising costs to operate the business, and a lack of fundraising efforts.
“We spent more than we made over the course of the previous two years resulting in us probably being about $400,000 in the negative,” Sabatini said. “We did not come to the realization soon enough that we needed to ask for help.”
Sabatini said they would’ve needed $200,000 in a very short amount of time to stay open, or would be forced to close their doors temporarily to recover.
When news of the potential closure broke, donations and volunteer support surged. Sabatini said the community helped raise nearly half a million dollars to keep the shelter open.
Despite that rebound, some Hays County residents remain concerned.
Former PAWS board member Cody Bradstreet said she was caught off guard by the financial situation.
“We hadn’t heard anything about PAWS being in financial distress, it was confusing, like what happened,” Bradstreet said.
Bradstreet said when she left the board in 2023, the shelter appeared financially stable.
“They had about just shy of a million dollars in cash and investments, no debt, strong assets,” she said.
The surprise prompted Bradstreet and other volunteers, donors, and community members to form the PAWS Transparency & Recovery Group, which is asking the board for detailed explanations about the shelter’s current condition.
“What we really wanted to understand is, where are you today? How did you get here? What is your plan to move the organization forward and how can we be helpful?” Bradstreet said. “This isn’t about blaming anyone or pointing fingers. It is about accountability and transparency.”
In mid-October, the group sent a letter to PAWS Shelter board members asking for a current list of board members, public board meeting minutes, and public financial statements.
Eventually, Bradstreet said the board agreed to a meeting with their group, but it didn’t bring her any comfort saying they lacked accountability and transparency in their financial standing.
She added that the transparency group requested that the board members all resign from their positions.
“I have some real concerns about whether they have the effort, the motivation, or the competence to get them out of this hole,” Bradstreet said.
On the other hand, Sabatini said resigning would not help the situation adding that he’s “not someone who’s going to walk away from a problem that I’m partially responsible for.” He said the board has since implemented a turnaround plan to avoid a future crisis.
“We’ve definitely reduced the costs by spending less on superfluous items, asking more for donations. We have reduced the overtime. We have increased the number of board hours,” Sabatini said.
He added that the shelter hired a full-time staff member focused on applying for grants, fundraising, and finding corporate partners to match monthly donations.
He says they will also hold fundraising events on the weekends, as well as planning two larger fundraisers which would bring in a substantial amount of money.
“I would hope that we can leave the organization – you know, myself and other board members– in a better situation than we were in three or four months ago, and everyone is committed,” Sabatini said. “We understand just how important this place is.”
Still, Bradstreet said some community members doubt the current board’s ability to lead the shelter out of debt. In November, the transparency group filed a formal complaint with the Texas Attorney General’s Office, requesting an investigation into the shelter’s operations.
“Take a look, and if there’s nothing wrong, that’s great. If there is something, then let’s get it fixed. And let’s make sure we don’t lose PAWS,” Bradstreet said.
She said they’re still waiting on the AG’s office to respond.