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!

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:

Fur Commission USA recommendations to IRS on the reform of the non-profit sector, Nov. 19, 2009. (PDF format)

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)

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:
Sept. 27-30, 2010: Special Report: Big Green. Washington Examiner.

• Environmentalists aren't really about clean air and water. Sept. 27, 2010.
• They're the green gorillas of American politics. By Mark Tapscott, Sept. 27, 2010.
• Five key members of Obama's green team. By Mark Hemingway, Sept. 27, 2010.
• Big Green regulations suffocate jobs, economic growth. By Mark Hemingway, Sept. 27, 2010.
• The big green road map. By Mark Hemingway, Sept. 27, 2010.
• Environmentalists left David behind long ago. By Mark Hemingway, Sept. 27, 2010.
• Five most important environmental movement leaders. By Mark Hemingway, Sept. 27, 2010.
• Loads of campaign cash make Big Green a Democratic powerhouse. By Mark Tapscott, Sept. 27, 2010.
• Emanuel's pot of green gold is called Exelon. By Mark Hemingway, Sept. 28, 2010.
• How Wendy Van Asselt and her friends made 26 million acres disappear. By Ron Arnold, Sept. 28, 2010. (Also in PDF)
• Don't get hit on the campaign trail by this environmental wrecking ball. By Mark Hemingway, Sept. 28, 2010.
• Who you know - or oppose - is key to getting federal payola. By Mark Tapscott, Sept. 28, 2010.
• Big Green: How much do they make? By Mark Hemingway, Sept. 28, 2010.
• Crucial funding for Big Green comes from taxpayers. By Mark Tapscott, Sept. 28, 2010.
• Global warming and EPA's threat to regulate everything. By Mark Hemingway, Sept. 28, 2010.
• An Iron Triangle based in NOAA is killing the U.S. fishing industry. By Ron Arnold, Sept. 28,2010. (Also in PDF)
• Working for Big Green can be a very enriching experience. By Mark Tapscott, Sept. 29, 2010.
• When journalists become Big Green's spinmeisters. By Mark Tapscott, Sept. 29, 2010.
• How environmentalists do it when Congress fails them. By Ron Arnold, Sept. 30, 2010. (Also in PDF)
• A Big Green propaganda film that sparked a dud of a house hearing. By Mark Hemingway, Sept. 30, 2010.
• Portrait of a Big Green activist who scares your kid. By Mark Hemingway, Sept. 30, 2010.
• Examiner editorial: A human balance neede for the environment. Sept. 30, 2010.
• It's still the same old radical California agenda. By Paul Chesser, Oct. 1, 2010.
• Schwarzenegger's green dream for California. By John Seiler, Sept. 1 (Oct. 1?), 2010.
• Prop 23 foes look to Bently Reserve for cash flood. By Anthony Pignataro, Oct. 1, 2010.

Jan. 27, 2010: Terrorist sets himself ablaze in attempt to torch shop and those inside. FCUSA press release.
Jan. 10, 2010: Groups allege HSUS fraud. HSUS leader defends group's lobbying efforts, tax-deductible status. By Wes Sander for Capital Press.
Nov. 12, 2009: Animal lovers should stop sending money to zealots. By Rich Landers, The Spokesman-Review (Spokane, WA).
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.

• Part 1: Fat of the Land; Movement's Prosperity Comes at a High Price. A century after John Muir served as the Sierra Club's first president, environmental groups have successfully traded on his legacy, becoming bigger and richer than ever before. But in their quest for power and money, have they cashed in their tradition? (PDF format)
• Part 2: Green Machine; Mission Adrift in a Frenzy of Fund-Raising. When you give $20 to an environmental organization, you expect it to go toward protecting the environment. But creative accounting hides the myriad ways groups can fold a hefty chunk of that donation back into their fund raising and bureaucracy. (PDF format)
• Part 3: Litigation Central; A Flood of Costly Lawsuits Raises Questions About Motive. Suing the government has long been one of the environmental movement's most important tools. But today, the targets and proliferation of environmental lawsuits are yielding an uncertain bounty for the land. (PDF format)
• Part 4: Playing With Fire; Spin on Science Puts National Treasure at Risk. Scientists say Western forests are gigantic tinderboxes inviting disaster, badly in need of thinning. But many environmental organizations are ignoring - and sometimes manipulating -- that message. (PDF format)
• Part 5: Seeds of Change; Solutions Sprouting from Grass-Roots Efforts. A new kind of conservation is blossoming at the grass roots that focuses on results, not rhetoric. Its goals include buying, protecting and restoring land, and making commerce and conservation work together - without crying wolf. (PDF format)
• See also Environmentalists' Tactics Face Review by Tom Knudson, May 3, 2001; and They Damaged Themselves, interview with Knudson reproduced in Evergreen Magazine, June 18, 2001.

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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