Ah, yes, the ole dog-in-the-stash trick. I know it well. I have a picture on my blog of my dog looking very proud of herself when she got into my stash. I was able to salvage some of it, but some of it went into the trash. I'd say try using it, and if it's really driving you crazy, get some new yarn for your gift. You can always knit something for yourself with the dog fur infused yarn.