Now you can buy animal welfare bonds

Sunday, November 8, 2015

Are animal activists affecting your farm's bottom line? Well, they may have also come up with a way to recoup costs – if you're not adverse to risk that is.

In April, Animal Justice Canada presented an offering of bonds with a three-year term that pay five per cent simple interest. The organization describes itself as "advocating for the humane treatment of animals."

A June newsletter notice tells would-be investors that their money will ensure "we'll be better-resourced and better able to fight for animals in courtrooms across the country."

The offer, however, is far from secure.

According to its information (which hasn't been scrutinized by a securities commission), the bonds, with a minimum investment of $1,000, are unsecured. No government or insurance covers them; and "a purchaser may lose some or all of his or her investment." Moreover, despite Animal Justice being a charitable not-for-profit organization, you can't write off the purchase on income tax. And if you're looking to sell you're out of luck, "as there is no market for these bonds," the information says.

An Ontario Securities Commission spokesperson says the offer is legal and, because the investment's purpose is charitable, Animal Justice doesn't have to file a prospectus with any securities commission.

Animal Justice plans to raise $150,000 to $250,000 through the bonds. Financial statements indicate that the organization received nearly $120,000 in donations and grants in its 2014/2015 fiscal year. That amount is up substantially from its $43,820 total revenue for the year before. BF