HSUS LOBBYGATE
Losey starts
with the original National Humane Society’s conversion into
Humane Society Of The U.S. that acts like a lobbying
organization, not an animal welfare group. IRS Contact Info,
Case Numbers at end.
By
Frank Losey, Jan 2011 condensed from The Metro Voice, MO
Once
upon a time - November 22, 1954 to be precise - three
individuals prepared articles of incorporation for an
organization that was originally called the “National Humane
Society.” That organization later became known as the Humane
Society of the U.S. (HSUS).
The original
incorporators included the following language in their articles
of incorporation: “no substantial part of the activities of
the corporation shall consist of carrying on propaganda or
otherwise attempting to influence legislation or to participate
in or intervene…in any political campaign on behalf of any
candidate for public office.” Fast forward fifty years to
2004 when Mr. Wayne Pacelle became President and CEO of the
HSUS. The articles of incorporation were the same as they were
in 1954, but the political focus of the HSUS had dramatically
changed and has continued to evolve into an extraordinarily
sophisticated and highly prolific lobbying organization.
In this expose of the HSUS ‘Lobbygate’ cover-up, let us peel
back layers of a very deceitful and smelly ‘HSUS lobbying
onion.’ Mr. Pacelle, who had served as the “Chief Lobbyist” for
the HSUS before becoming its President and CEO, had already
created the Humane USA Political Action Committee (PAC) - an
“affiliate organization” of the HSUS.
Meet The
HSUS Political Action Committee
The HSUS PAC has
submitted over 2,300 pages of lobbying related documents to the
Federal Election Commission! HSUS states the PAC has “channeled
more than $400,000 to candidates through direct PAC
contributions and through fundraising events that we hosted”
(in 2008), and “gave direct contributions to 115 federal
candidates who ran for election in 2008.” 2010 hasn’t been
reported yet however the following Humane USA PAC statement is
most revealing: “[We] will be involved in hundreds of races at
the state and federal level during the primary and general
elections.”
Thus, HSUS has participated in political campaigns, contrary
to the explicit prohibition in its articles of
incorporation! Note that Mr. Pacelle continues to serve on the
Board of Directors of the Humane USA PAC, and that Mr. Michael
Markarian, the HSUS Chief Operating Officer – the number two
official of the HSUS - serves as the Chairperson of the Humane
USA PAC, and that both Mr. Pacelle and Mr. Markarian participate
in the decisions as to which political candidates receive HSUS
Political PAC contributions.
Meet the
Humane Society Legislative Fund (HSLF)
When Mr.
Pacelle became President and CEO of the HSUS, he also created
the Humane Society Legislative Fund (HSLF). He serves as Vice
President and Mr. Markarian is President.
The HSLF publishes a “Scorecard,” which tracks how all 535
members of Congress voted with respect to the HSUS’ legislative
agenda, and each year it hosts a Congressional reception to
honor those members of Congress who have been most supportive of
their agenda. The HSLF also contributed $50,000 to the 2010
YES! on Prop B ballot initiative campaign in Missouri.
Meet The
Fund For Animals (FFA)
Wayne
Pacelle orchestrated the merger of the Fund for Animals into the
HSUS in 2004, of course he serves as its Executive Vice
President – with Mr. Markarian as President. Still further,
this ‘affiliated organization’ has been used to launder
contributions to political campaigns, such as the $110,000 FFA
contributed to the same MO YES! Prop B campaign.
Meet The
Doris Day Animal League (DDAL)
Mr.
Pacelle also orchestrated the merger of the Doris Day Animal
League (DDAL) into the HSUS in 2006 as yet another “affiliated
organization” of the HSUS. The DDAL is recognized by the IRS as
a lobbying organization under the provisions of the U.S. Tax
Code, and it too “launders” money. DDAL gave nearly $600,000 to
the Humane Society Legislative Fund in 2008 and $80,000 to the
YES! on Prop B campaign in Missouri. Mr. Pacelle serves as DDAL
Executive Vice President.
HSUS Buys
Missouri Ballots?
The
Humane Society of Missouri (HSMO) became so involved as a
‘surrogate’ organization for the HSUS for the purpose of
lobbying in support of the YES! on Prop B initiative that it is
now in jeopardy of losing its tax-exempt, public charity
status. The IRS has assigned a Tax Fraud Case File No.
2010-003995 for its investigation of the Humane Society of
Missouri. The HSMO contributed nearly $197,000 to the YES! on
Prop B Campaign.
And
HSUS itself contributed over $4.1 million dollars - according to
documents filed with the Missouri Ethics Commission - to the
YES! on Prop B Campaign. Again, one is left to wonder why the
HSUS would spend over $4.1 million dollars on a lobbying effort
in Missouri, but apparently not a single penny in direct support
of any animal shelter in the State of Missouri.
Under
another layer of the ‘HSUS lobbying onion’ we discover Ms. Nancy
Perry, the HSUS Vice President for Government Affairs, reveals
in her bio that “She oversees lobbying efforts in state
legislatures, including ballot measure campaigns, and Congress
and directs grassroots activities nationwide. She also lobbies
directly for federal animal protection legislation; and that the
HSUS has lobbied in all 50 states for animal protection
legislation and secured felony cruelty provisions in 41 states
(including Washington, D.C.).” This conclusively
establishes that Ms. Perry devotes a ‘substantial part’ of her
activities to lobbying!
IRS Statute
& HSUS Articles State “No Lobbying”
Mr.
Pacelle’s bio states he “helped to defeat some of the strong
anti-animal welfare politicians in the United States, including
Rep Richard Pombo of California (2006) and Rep. Chris John of
Louisiana (2004).” Not only was such action contrary to the
prohibitions contained in the original articles of incorporation
for the HSUS, but it was contrary to an explicit IRS prohibition
that reads as follows: “Under the Internal Revenue Code, all
section 501 (c) (3) organizations…are absolutely prohibited from
directly or indirectly participating in, or intervening in, any
political campaign on behalf of (or in opposition to) any
candidate for political office….Violation of this prohibition
may result in denial or revocation of tax-exempt status and the
imposition of certain excise taxes.”
HSUS
repeatedly boasts that it is responsible for the passage of more
than 550 – that’s 550! - Federal and State statutes and ballot
initiatives. This too reinforces the fact that a ‘substantial
part’ of the activities of the HSUS are lobby-related.
Up
until filing its 2009 Tax Return, the HSUS repeatedly included
detailed comments as to its lobbying activities for the year.
Comments included: “In 2008, the HSUS organized and taught
‘Lobbying 101’ workshops in more than 40 States... the HSUS
assisted in sending constituent E-mails and Faxes to lawmakers
through a functionality on the Society’s website... Lobbying on
these issues included direct contact with legislators and their
staff.”
Perhaps
the most compelling evidence of a ‘cover-up’ of the magnitude of
the lobbying activities of the HSUS may be derived from the fact
that when the HSUS filed its 2009 Tax Return, all such
references were omitted. Why the ‘omissions,’ if not a COVER-UP?!
The
HSUS has sent hundreds of millions of lobby-related E-Mails each
year to members, volunteers and lawmakers. The total number of
lobby-related E-Mails for the last 4-5 years could very well
exceed over a billion! A ‘substantial part’ of the HSUS
activities.
Tens of
thousands of HSUS volunteers have lobbied on behalf of the HSUS
Legislative Agenda. And according to IRS Regulations, the
lobbying time expended by ‘volunteers’ must be attributed to the
public charity in order to determine if it has engaged in TOO
MUCH LOBBYING, and has exceeded the “substantial part” threshold
of the IRS.
So
when the above described lobbying activities of the HSUS are
added to over 100 other examples of HSUS lobbying activities
that are included in over 1,400 pages of incriminating documents
that have been provided to the IRS, it becomes an inescapable
fact that the HSUS devotes at least 40% or more of its monetary
expenditures and the time of its paid staff, members, and
volunteers to direct or indirect lobbying activities.
Missing
Millions On HSUS Tax Returns?
That
is twice the amount of allowable lobbying activities for a
tax-exempt, public charity! Consequently, one is left to wonder
why the IRS has tolerated such lobbying abuses by the HSUS,
especially in light of the fact that its own Regulations provide
that “No organization may qualify for 501 (c) (3) status if a
substantial part of its activities is attempting to influence
legislation (commonly known as lobbying.... The IRS considers a
variety of factors, including the time devoted by both
compensated and volunteer workers and the expenditures devoted
by the organization to the activity, when determining whether
the lobbying activity is substantial.... Under the substantial
part test, an organization that conducts excessive lobbying in
any taxable year may lose its tax-exempt status, resulting in
all of its income being subject to tax.”
As
if the above evidence of excessive lobbying is not enough to
call into question the need for the IRS to crack down on the
HSUS in order to maintain the integrity of the IRS Compliance
Program for tax-exempt, public charities, there is the omission
of significant revenue on its Tax Returns. In this regard, it
is shocking and incredulous that, even though the
HSUS claims to have over 11 million
Members, and its Annual Dues are $10 per year, the HSUS claimed
on its Tax Returns for the last five years (2005-2009) that it
received ZERO - that’s right ZERO - revenue from Membership
Dues. What happened to the missing $500 million dollars!?
So
WHY hasn’t the IRS done something about the fact that the HSUS
may be a TAX CHEAT, and WHY has the IRS permitted the HSUS to
engage in excessive, prohibited, under-reported and non-reported
lobbying activities?
Well,
the IRS has assigned a Tax Fraud Case Number (29-92012) to its
“on-going” investigation of the HSUS. However, its
investigation has been on-going for over two years, and there
does not appear to be any sense of urgency to hold the HSUS to a
strict and timely standard of accountability. That is why the
issue has been elevated to the Department of the Treasury’s
Office of the Inspector General for Tax Administration, which
has also assigned a Case File Number (55-1005-0025-C). This
office has oversight over the IRS, and if this office were to
receive thousands of E-Mails from concerned citizens who believe
that the HSUS should be held to a strict standard of
accountability, that may create the compelling ‘critical mass’
of pressure that will result in the IRS being directed to
expedite the completion of its investigation of the excessive
lobbying activities of the HSUS, as well as for the IRS to be
directed to ask the HSUS to account for its failure to report
any revenue from Membership dues - up to $500 Million!
If
anyone wishes to help create the critical mass of pressure on
the IRS to expedite its investigation of the HSUS by sending an
E-Mail to the Treasury’s Office of the Inspector General for Tax
Administration, the following is suggested for your
consideration:
-
Address
your E-Mail to:
Complaints@tigta.treas.gov.
-
HOTLINE
800-366-4484 (may be anonymous) or FAX: 202-927-7018
-
Use for
the Subject line of your E-Mail: OIG Case File Number
55-1005-0025-C.
-
For
the text of your message, you may wish to use language such
as: “Now that the IRS has received over 1,400 pages that
document the excessive lobbying activities of the HSUS,
which may amount to an HSUS LOBBYGATE COVER-UP; and that the
HSUS may have under-reported its revenue from Membership
Dues on its 2005-2009 Tax Returns by as much as $500 million
dollars or more, would you please urge the IRS to complete
its investigation of the HSUS in an expeditious manner in
order to ensure that the integrity of the IRS Compliance
Program for tax-exempt, public charities is maintained.”
(Note: You do not need to include your name or address if
you do not wish to do so.)
*Note* Take an extra minute to FAX, email, and call. No one is
counting how many times anyone urges IRS to do the job. It is
the total number of complaints received and tallied. That is
what puts your favorite American Idol over the top.
If you send an
E-Mail, please blind copy me at
f.losey@insightbb.com
on the bcc line of the E-Mail so that I may keep track of
how many E-Mails are sent to the OIG You can also call the OIG
HOTLINE at 1-800-366-4484. The FAX Number is 202-927-7018; and
the Mailing Address is Treasury Inspector General for Tax
Administration, HOTLINE, P.O. Box 589, Ben Franklin Station,
Washington DC 20044-0589.
http://www.thedogplace.org/TERRORISTS/HSUS-Lobbygate-1101_Losey.asp
