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

Questions?

Contact:john.dillard@richmond.edu

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