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SPECIAL FEATURE : REGULATING THE CONFLICT INDUSTRY

"I’ve heard the term ‘conflict industry’ used to describe what is happening today. I can see why." Two-time Pulitzer Prize Winner Tom Knudson in "They Damaged Themselves," Evergreen Magazine, commenting on his Sacramento Bee investigation of environmental organizations.

The "conflict industry" is a largely unregulated multinational business sector which prospers by causing friction between resource users and the general public. The industry's key areas of operation are environmental issues and animal welfare / rights. (See also the Press Kit Special Feature : Safe Farms Campaign.)

Should Nonprofit Tax-Exempt Corporations Promote Crime? Two-page flyer produced by Fur Commission USA calling on the Internal Revenue Service to reconsider whether U.S. corporations which promote crime or repeatedly break the law deserve tax-exempt status.

ENDORSING CRIME = INCITING CRIME?

Applauding crimes already committed is protected speech, but it can also incite others to commit new crimes, and is thus inappropriate behavior for a tax-exempt corporation. Meanwhile, intentionally inciting others to commit crimes is simply illegal.

Judge for yourselves what the intent of these animal rights leaders is ...

For more quotes from the leaders of extreme animal rights groups, see In Their Own Words.

CRIMES OF THEIR OWN

Any illegal act from vandalism and burglary to trespassing and public obscenity imposes a financial burden on society. Law-breaking should never be considered appropriate behavior for a corporation, least of all a tax-exempt one.

Check out the arrest records of some prominent tax-exempt corporations ...

ADVOCACY OR PORNOGRAPHY?

In 2007, People for the Ethical Treatment of Animals ratcheted up its whole concept of baring human skin to draw attention to itself.

View its "State of the Union Undress", resulting in full-frontal nudity. Is this really public education work, warranting PeTA's tax-exempt status?

LIARS AND FRAUDS
On Jan. 15, 2008, the Sea Shepherd Conservation Society claims two of its activists were captured and held hostage by Japanese whalers. View the video to learn what really happened!
RESOURCES

Dedicated websites:
ActivistCash.com Information from IRS returns of US activist groups. Provided by the Center for Consumer Freedom, an organization of 30,000 restaurant and tavern operators.
PeTA Watch Provided by the Center for the Defense of Free Enterprise.

Internal Revenue Service:
Apr. 5, 2005: IRS Commissioner Mark Everson statement to Senate Committee on Finance hearing on Charities and Charitable Giving: Proposals for Reform. (PDF format)
June 22, 2004: IRS Commissioner Mark Everson statement to Senate Committee on Finance: Charitable Giving Problems and Best Practices. (PDF or HTML)
Revenue Ruling 75-384
relating to nonprofit organizations (specifically anti-war organizations) which urge demonstrators to commit violations of local ordinances and breaches of public order. (Outside link)
Internal Revenue Service, Charities & Non-Profits, including Life Cycle of a Charity - Jeopardizing Exemption

See also:

Two key senators urge IRS to require charities to disclose additional information. Chronicle of Philanthropy, May 30, 2007.

Baucus wants stronger scutiny of tax-exempt groups for terror ties. New report faults IRS efforts to identify possible supporters of terror, Finance Chairman asks Treasury Secretary to explain lackluster effort. Committee on Finance news release, May 25, 2007. (PDF format)

Fur Commission USA recommendations to Mark Everson on the reform of the non-profit sector, Oct. 4, 2005. (PDF format)

Federal Bureau of Investigation:
Feb. 18, 2005: Criminal complaint - United States of America v. Ryan Daniel Lewis, re: ELF-related arson spree in Auburn, California, case #2:05-MJ-00036PAN, affidavit of Special Agent Angela Amrstrong. (Outside link)

U.S. House Committee on Ways and Means:
Apr. 20, 2005: Hearing on an overview of the tax-exempt sector. (Outside link)

U.S. Senate Committee on Environment & Public Works:
Oct. 5, 2004: Inhofe releases detailed report on environmental group political fundraising. Delivers floor speech outlining the "environmental family affair". Majority press release. (Outside link) Related reports to the Chairman: 1) Political activity of environmental groups and their supporing foundations; 2) Grants management at the Environmental Protection Agency: A new culture required to cure a history of problems. (PDF format)

U.S. Senate Committee on Finance:
Apr. 5, 2005: Hearing on Charities and Charitable Giving: Proposals for Reform. Includes statements from Sen. Charles Grassley, IA; Sen. Max Baucus, MT; Mark Everson, IRS; George Yin, Joint Committee on Taxation; Leon Panetta, Panetta Institute for Public Policy; Mike Hatch, Minnesota Attorney General; Dr. Jane Gravelle, Congressional Research Service; others. (Outside link) Related article: Tax abuse rampant in non-profits, IRS says, Washington Post, Apr. 5, 2005. (Outside link)
June 22, 2004: IRS Commissioner Mark Everson statement to Senate Committee on Finance: Charitable Giving Problems and Best Practices. (PDF format)

International:
Protecting people from animal rights extremists: A progress report, British Labour government, 2006.

Articles:
June 30, 2009: An unmarked anniversary: A dozen years on HSUS's payroll. FCUSA commentary on the career of J.P. Goodwin.
June 4, 2009: Seal hunt protest has always been about money. By Fred Hazel, Telegraph-Journal (New Brunswick, Canada).
Mar. 5, 2009: Nothing Humane about it. By Rich Landers, The Spokesman-Review (Spokane, WA).
May 17, 2008: Evolve or die: Can we shed our moral primitivism before it's too late?, by Dr. Steve Best, Cyrano's Virtual University. (Outside link)
July 3, 2007: Animal group [SHAC] linked to crimes is banned. Journal Live, Newcastle, UK. (Outside link)
Apr. 20, 2007: Furrier sues activists and city of Portland over protests. The Oregonian. (Outside link)
Apr. 19, 2007: Animal rights extremism meets academia. By Jacob Laksin, Front Page Magazine. (Outside link)
Apr. 3, 2007: Protest groups vying for piece of flipper pie. Editorial, The Telegram (Newfoundland). (Outside link)
Mar. 26, 2007: Seal protest makes a killing. By Cyril Doll, Western Standard (Canada).
Mar. 19, 2007: The Great Global Warming Swindle, by S. Fred Singer, The Independent Institute. (Outside link)
Feb. 15, 2007: Charity needs a better foundation. Financial Times (UK). (Outside link)
Feb. 12, 2007: Just how charitable is Greenpeace? Report from Germany. Spiked. (Outside link)
Feb. 2, 2007: Farley Mowat, pirate of the Antarctic. (Sea Shepherd boat's registration revoked.) Globe and Mail. (Outside link)
Jan. 20, 2007: IRS checks virtues of charity. By Arden Dale, Wall Street Journal. (Outside link)
Jan. 11, 2007: Eco-intimidation bypasses scientific debate. By Steven Milloy, Fox News. (Outside link)
Sept. 25, 2006: Leaders "losing faith" in charities. By Vincent Morello, The Australian. (Outside link)
Mar. 22, 2006: Rights group (PeTA) misled public over animal testing, watchdog says. The Guardian, UK. (Outside link)
Dec. 25, 2005: Don't write the check before checking the fundraiser. By June Sandra Neal for NE Magazine, The Hartford Courant, Connecticut (Outside link)
Oct. 11, 2005: Sea Shepherd Conservation Society: An Extraordinary Exposé. From Animal Crackers, reproducing "Paul Watson and the Sea Shepherd Society: A Financial Exposé," by Myles Higgins, for the Canadian Free Press.
Aug. 20, 2005: Your Kids, PETA's Pawns: How the animal "rights" movement hurts children. Center for Consumer Freedom. (Outside link)
May 12, 2005: Florida cuts HSUS (license) plate funds, Daily Herald, Chicago. (Outside link) See also Florida neuters HSUS funding, Center for Consumer Freedom, May 13.
Apr. 5, 2005: Tax abuse rampant in non-profits, IRS says. Washington Post, Apr. 5, 2005. See also under Senate Committee on Finance. (Outside link)
Sept. 30, 2004: Federal Officials Warn Nonprofit Coalitions to Make Changes or Risk Ejection from Charity Drive. Chronicle of Philanthropy, Washington, DC. (Outside link)
Aug. 20, 2004: Proactive FBI isn't the stuff of totalitarian regimes. Daily News Journal (Tennessee). (Outside link)
Dec. 30, 2003: Major Animal Charities Still Flunking the Ratings. A review of the latest Charity Navigator ratings.
Oct. 19, 2003: Terrorism in the Name of the Earth; Flushing Out Ecoterrorism Money, San Francisco Chronicle. (Outside link)
Aug. 16, 2003: Planned Parenthood Win Landmark Free Speech Case; What's In It for the Rest of Us? FCUSA's Simon Ward analyzes the relevance of the Nuremberg Files ruling for others, including animal users.
Aug. 13, 2003: A Diarist of Animal Rights Crimes : The Respectable Face Behind "Bite Back". FCUSA's Teresa Platt investigates the career of Palm Beach cultural communicator Nicolas Atwood.
Aug. 8, 2003: "Charities" that Are Really Political Lobbyists Must Be Exposed. The Age reports on the aversion of Australia's charitable sector to accountability. (Outside link)
Aug. 6, 2003: Deductions for Destruction Greg Yardley of FrontPage Magazine questions the right of many American charities to tax-exempt status.
Aug. 3, 2003: California Arson Fits Terrorist Pattern! National Animal Interest Alliance press release on a $50 million arson in San Diego claimed by the Earth Liberation Front. (Outside link)
May 6, 2003: High Court: States Can Sue Charities for Fraud; Ruling Targets Misleading Statements to Donors. Washington Post. (Outside link)
May 2003: The Environmental Left: Breaking the Law in the Name of Charity, by George Landrith, President, Frontiers of Freedom Institute.
Also available in PDF format.

"The IRS is coming in here for an audit starting in November. There's no reason for them to do that. Are we really at the top of their list of people to audit? We're a charity. All our books are always open anyway. … Our lawyers say that we should be polite and that we should show them everything. I think that they should go to hell in a handbasket." Ingrid Newkirk, PeTA president, BBC 4 News (UK), Nov. 11, 2003.

Apr. 23, 2003: Seeing Spots : The Spotted Owl Fiasco. By Teresa Platt, executive director, Fur Commission USA. (Outside link)
Jan. 30, 2003: Animal Charities Get Poor Marks for Stewardship. By the American Physiological Society. (Outside link)
Dec. 13, 2002: A new breed of activists put the "pro" in protest. Protesters, advocacy groups have adopted corporate strategies. Portland Tribune (Oregon). (Outside link)
Dec. 3, 2002: Major Animal Charities Flunk Annual Rating FCUSA commentary on latest Charity Navigator listings.
Nov. 24, 2002: Financing Domestic Terrorism By David Martosko, Director of Research, Center for Consumer Freedom, letter to the editor published in the Washington Times. (Outside link.)
Oct. 22, 2002: The RSPCA should be saving animals, not hounding MPs Telegraph (UK). (Outside link)
Sept. 30, 2002: Update: Farmers and Ranchers Win Battle for Safe Farms FCUSA commentary with reference to release of personal information on farmers, ranchers under Freedom of Information Act.
Sept. 30, 2002: PETA in the Dog House Toledo Blade. (Outside link)
Sept. 27, 2002: Anti-globalization activists: Divided, They Make a Stand; Groups Face IMF, World Bank Talks with Disjointed Agendas USA Today. (Outside link.)
Sept. 27, 2002: Who's Really Behind The Protest Curtain? By David Martosko, Director of Research, Center for Consumer Freedom, for CNSNews.com. (Outside link.)
July 19, 2002: PeTA and the Making of a Conflict Industrialist: Gary Yourofsky Finally Lands a "Job" FCUSA commentary on the career of the founder of Animals Deserve Adequate Protection Today and Tomorrow.
May 28, 2002: PETA Could Lose Nonprofit Status; Animal-Rights Organization Gave Money to Group on FBI's "Terrorist" List By Jodi Sokolowski for the Spokesman Review. (Outside link)
May 20, 2002: HSUS Eco-fleece? FCUSA's Teresa Platt casts a sceptical eye on the outrageous percentage of funds given to professional fundraisers.
May 1, 2002: They Are What They Are - Scam-Artist Phonies Herald and News (Klamath Falls, Oregon) guest commentary on environmental groups, in particular the Sierra Club, by retired college professor Bill Speers. (Outside link.)
April 14, 2002: Conservatives Test Greens' Tax Status Washington Times commentary. (Outside link.)
Mar. 20, 2002: Closing the Net on PeTA; IRS Urged to Pull Tax-Exempt Status FCUSA commentary on the aftermath of a Congressional ecoterrorism hearing.
Dec. 13, 2001: Activist Inc.: Professional Agitators Can't Claim to Be Grassroots Anymore By Kimberley Strassel for the Wall Street Journal. (Outside link)
Nov. 11, 2001: Conservation Groups Walk Fine Line on Taxes By Tom Knudson, Sacramento Bee. (Outside link)
Aug. 12, 2001: Careers in the Conflict Industry : HSUS and the Making of a Conflict Industrialist FCUSA commentary examines the career of JP Goodwin, and his relationship with the Humane Society of the US.

Apr. 22-26
, 2001: "Environment, Inc." by Tom Knudson, Sacramento Bee. Five-part series. (Outside links.)

Apr. 12, 2001: A Domino Too Far; UK Government Tells Animal Rightists "Enough Is Enough" FCUSA commentary on fur farming ban, fox hunting, and campaign against Huntingdon Life Sciences.
Oct. 15, 1998:
Monkey Business Mel Parkinson reports for Las Vegas City Life on how PeTA set out to destroy orang utan trainer Bobby Berosini.
December 1997: Totems, Taboos, Sacred Cows and Tunafish By Teresa Platt, FCUSA executive director and former head of the San Diego-based Fishermen's Coalition.
Sept. 22, 1990: In Defense of Tree-Spiking. By Paul Watson, Sea Shepherd Conservation Society, for Earth First! Journal.

Other resources:

Environmental Working Group

Feb. 20, 2002: Center notifies Joyce Foundation of apparent illegal grant to Environmental Working Group, asks the money be revoked and refunded; Letter comes in wake of Center's complaint to IRS against EWG. Center for the Defense of Free Enterprise press release. (Outside link)
Feb. 8, 2002: Complaint against Environmental Working Group, Inc. filed by the Center for the Defense of Free Enterprise with the Internal Revenue Service. "We write to alert the Internal Revenue Service to serious violations of the tax laws governing nonprofit organizations. Public information shows that The Environmental Working Group (EWG), a 501(c)(3) organization, has violated its tax status by unlawfully engaging in excessive lobbying and politicking. The evidence leads us to believe the violations are flagrant and we submit specific documentation for your scrutiny. ..." (Outside link)

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