The irregularities involve PETA’s failure to identify recipients of monetary grants and donations for two consecutive years during the late 1990s. CDFE’s findings form the basis of a new complaint, filed today with the IRS, urging the agency to revoke PETA’s privileged non-profit tax exempt status. See www.cdfe.org/petagrants.htm.

The complaint cites PETA’s non-disclosure of grant and donation recipients in the group’s IRS Form 990s for fiscal year(s) ending in 1997 and 1998. During this time frame, PETA reported income in excess of $25 million – but those who received PETA grants totaling nearly $1 million remain a mystery.

This omission is conspicuous, as PETA revealed its funding of other groups in its tax filings for the years prior to 1997 and following 1998. Its discovery also follows recent news surrounding PETA’s $1,500 contribution to the North American Earth Liberation Front (ELF), classified by the FBI as a domestic terrorist organization. Ironically, PETA’s grant to the ELF was revealed in its own FYE 2001 IRS Form 990.

"Grant and donation disclosure by non-profit organizations is required by law," stated Ron Arnold, CDFE’s Executive Vice President. "PETA has denied the tax-paying public – as well as PETA’s own financial supporters – the ability to verify the group’s funds were not used to finance additional terrorist enterprises. Because of these and other irregularities, we urge the IRS to revoke PETA’s privileged tax exempt status."

Founded in 1976, the Center for the Defense of Free Enterprise is a non-partisan education and research organization which works on free enterprise studies, public policy research, book publishing, conferences, white papers, and media outreach.