Several other people have wanted to start a rescue, and this is a huge project. You are correct in saying that:
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"some rescues work with puppymillers on wholesale basic, something like rescues buy unsold puppies from them. I truly believe this is wrong, since puppy millers still get their money, just wholesale price."
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However, these are not legitimate rescues, they are more like pet stores, they buy wholesale too. Rescues work mainly with adult dogs, not puppies, and a rescue should have the funds to spay and neuter every dog it receives and not place any unaltered dog, otherwise you will be contributing to the problem.
Rescues have to have many homes that are willing to foster dogs until a long term home can be found. This is really where most of us can best serve, and as a foster home, you will help save many lives. Private individuals cannot bust puppy mills, they have to work with some sort of state authority, and your local human society can probably give you more information on this.
Regarding your thoughts on most rescues are too hard on the potential clients, I strongly disagree, and breeders should be every bit as hard as the rescue, not visa versa. The job of the rescue and good breeder is to place the dog in a permanent home where rehoming is never necessary. Rescues do not make ANY money, they spend more on the dogs than they receive for the dogs, they make up the excess in donations, but this money must be accounted for, and you can't spend it just any way you want.
Just want to add, I would never donate to a recue who was working more to make the client happy than to make the dog happy. You should have more unhappy unsatisfied humans, than dogs. Many humans should not own a dog.