Unethical Campaigns and Growing Litigation Building Activist’s Coffers
John DillardUniversity of Richmond School of Law
Animal Agriculture Alliance Ninth Annual Stakeholder’s Summit - Ballston, VA - April 28, 2010
Overview
• Success of HSUS• Deceptive fundraising efforts• Revenues and expenditures• Ramifications for animal agriculture• Combating HSUS efforts
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Factors of recent HSUS success
• Substantial disconnect between agriculture and consuming public
• Motivated activists– 25,000 donated to YES! on Prop. 2
• Moderate public message achieves underlying radical goals
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HSUS Attacks Animal Agriculture on Multiple Fronts
• Environment– Private nuisance litigation– Funding environmental research, groups
• Administrative enforcement– Whistleblower suits – USDA– Citizen suits – EPA
• Shareholder Activism– Steak ‘n Shake
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HSUS Attacks Animal Agriculture on Multiple Fronts
• Public Perception– Undercover video– Celebrity endorsements– “Low-hanging fruit” wins give credibility• Horse Slaughter Ban• Dogfighting/Cockfighting
• BALLOT INITIATIVES
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HSUS has not been successful in the legislative arena
States Allowing Ballot Initiatives
Source: Initiative and Referendum Institute at the University of Southern California, available at http://www.iandrinstitute.org/
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24 states allow some form of citizen ballot initiatives, an effective tool for the HSUS and other Animal Rights groups
How is HSUS able to accomplish its goals?
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Fundraising
• HSUS needs a tremendous amount of money to accomplish its objectives
• Advertising strategy focuses on presenting a message that is “simple, moderate, and resonates with the average citizen1”
• HSUS has learned lessons from PETA’s radical message
81 Jonathon R. Lovvorn & Nancy V. Perry, California Proposition 2: A Watershed Moment for Animal Law, 15 ANIMAL L. 149, 155 (2009)
Moderate Message Trumps Shock Value
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vs.
Who is the average American more likely to donate to?
* $1,000 USD, Source: 2008 PETA & HSUS Annual Reports
$34 M$125 M
Donations to HSUS
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Although damaged by the economy, HSUS war chest remains strong through annual donations
Source: HSUS, 2008 IRS Form 990
Sources of Revenue
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Periodic and one-time donations account for 79% of HSUS revenue
Total Revenue - $131 M
Source: HSUS, 2008 Annual Report
How is HSUS able to take in substantial donations during a bad economy and use it for radical efforts?
Massive and Concerted Fundraising Campaigns
• Television ads• Direct-mail solicitations
• Celebrity endorsements• Proceeds from
entertainment sales
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Familiar and trusted faces help to soften and “mainstream” the HSUS’ efforts
HSUS Expenditures
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Only 5.4 % of HSUS Funds Are Directed Towards Animal Care
1: HSUS, 2008 Annual Report
HSUS Expenditures
• Less than one-half of one percent of fund hands-on pet shelters1
• By its own admission, HSUS directly assists only 70,000 animals through its programs– In total, we provided direct care to more than
70,000 animals in 2009.2
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HSUS Budget / Animals Assisted = Cost/animal assisted$125,118,158 / 70,000 = $1,787
1: HSUS, 2008 Annual Report2: E-Mail from Mike Makarian, COO, HSUS to John Dillard (Feb. 1, 2010, 10:10 EST)
But Does the Public Know?
• HSUS is not affiliated with local humane societies
• HSUS does not operate, own, or lease any animal shelters
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Question % Responding “True”
Familiar with HSUS name? 79%
HSUS is an umbrella group representing local shelters 71%
My local shelter or humane society is affiliated with HSUS 63%
HSUS contributes most of its money to organizations that care for cats and dogs
59%
Source: Opinion Research Corp., Feb. 25 – 28, 2010, Commissioned by Center for Consumer Freedom, Sample Size = 1,008 adults
What’s at Stake?
• Livelihoods• Investments• Efficient use of
resources• GLOBAL
COMPETITIVENESS
16Source: USDA NASS
Gestation Crate Ballot Initiative – 2002Final Phase-out - 2008Gestation Crate Ballot Initiative – 2002Final Phase-out - 2008
Future Battles Looming?
• Ohio– Livestock Standards Care Board “guidance”
• Judicial Standing– Seek to distinguish animals from traditional
property– Can you be sued by your cow?
• HSUS in Law Schools– Ex. - Georgetown, GWU– Encourages animal rights litigation on the cheap
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Encouraging Signs
• Pushback– Social networking is the new grassroots• [yellowtail]• Pilot Travel Centers
– Charity Navigator downgrades HSUS’ rating
• Spreading the word– HumaneWatch.org– Letters to editor– Social networking
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Future Tools
• Social-networking, digital media– Data and science-based reasoning – “Soft touch”
• Put a “face” on targets of HSUS’ efforts
• State Consumer Fraud Protection Laws– Force honesty in fundraising, expenditures
• Unite with common HSUS targets– Hunters & anglers– Local animal shelters– Targeted breeds
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Remember the Big Picture
20Source: UN FAO, HIGH-LEVEL EXPERT FORUM: HOW TO FEED THE WOLRLD IN 2050, Rome, Italy (Oct. 12-13, 2009), available at http://www.fao.org/wsfs/forum2050/wsfs-forum/en/
UN FAO estimates global food needs will increase 70% by 2050
