Posts tagged "Donors Trust"

Two foundations that have been described as “the dark money ATM of the right” have spent more than $1 million combined funding a non-profit organization whose primary function is distributing libertarian education materials featuring Fox Business host John Stossel.

Donors Trust and Donors Capital Fund, the affiliated funding groups, were until recently obscure entities. But over the past month a series of reports havedetailed how those organizations have paid out more than $400 million to over 1,000 conservative groups since their 1999 founding. Those reports have described how the two organizations have allowed wealthy individuals to discreetly underwrite trending conservative causes likeclimate change denial.

The groups have also been the primary funders behind an effort to flood American classrooms with packaged libertarian lessons branded with John Stossel’s mustachioed face. In 2011, Donors Trust gave $540,000 to the Philadelphia-based Center for Independent Thought (CIT), with the funds earmarked for the distribution of “Stossel in the Classroom” teaching materials, according to IRS filings obtained by Mother Jones

"Stossel in the Classroom" began in 1999 when Stossel was still with ABC News. It was seeded with financial support from the libertarian Palmer R. Chitester Fund and grew slowly until CIT took over the program in the mid-2000s.

CIT was a natural home for “Stossel in the Classroom.” Founded with Koch money as the Libertarian Review Foundation in the 1970s, real estate developer Howard Rich took control of the organization in 1990 and gave it its current name. Rich is part of the libertarian donor elite,  founded Americans for Limited Government, and sits on the board at Cato, the Club for Growth, and the Friedman Center for Educational Choice. (Rich’s wife, Andrea, runs CIT, but does not draw a salary.)

At the same time the group took over “Stossel,” new right-wing funding began flowing into its coffers. While Donors Trust was its main sponsor in 2011, it has also received money from Donors Capital Fund ($500,000 from 2007 to 2010) and foundations linked to the Koch brothers.

The purpose of groups like Donors Trust and Donors Capital Fund is to allow wealthy benefactors to support conservative causes anonymously. The Tides Foundation is a liberal analogue, donating millions of dollars to left-leaning groups (including Media Matters).  According to Mother Jones, whose non-profit arm has also received Tides funding, “Donors Trust’s strategic intent is far narrower and more coherent than Tides’. The groups funded by Donors Trust more or less pursue the same agenda—eliminate regulations, kneecap unions, shrink government, and transfer more power to the private sector.”

The Center for Public Integrity produced this graphic detailing the flow of money in recent years from Koch-backed and other right-wing foundations through Donors Trust to a variety of conservative groups:

Graphic

CIT’s funders — whoever they are — will find nothing in their program’s activities to make them question their investment in helping produce the next generation of libertarians.

The new caretakers built a slick new website, archived more videos spanning Stossel’s career, instituted a professional organization of requests and distribution, and began producing specially designed economics DVDs and teaching guides.

The program now offers hundreds of free clips from Stossel’s shows and specials that claim to seriously address a range of academic subjects, including Art (“Why does Hollywood Hate Capitalism?”), Biology ("Debunking Food Myths"), and History (“The Real Story of Thanksgiving,” which explains “how the Pilgrims were hurt by sharing”).

"Stossel in the Classroom" also produces libertarian economics courses. The small team of economists that writes materials such as “Making Economics Come Alive with John Stossel” has multiple close ties to the Stavros Center for the Advancement of Free Enterprise and Economic Education at Florida State University.

The videos on the site are stacked with pundits echoing Stossel’s radical laissez-faire views. A typical lesson pairs videos of Fox Business pundits tearing into a regulatory effort — a video on the 2011 health care law features serial liar Betsy McCaughey and industrial-fan entrepreneur Bob Luddy — with teacher’s guides that ask if government regulation is necessary. 

h/t: MMFA

Working out of an nondescript brick rowhouse in suburban Virginia, a little-known organization named Donors Trust, staffed by five employees, has steered hundreds of millions of dollars to the most influential think tanks, foundations, and advocacy groups in the conservative movement. Over the past decade, it has funded the right’s assault on labor unions, climate scientists, public schools, economic regulations, and the very premise of activist government. Yet unlike its nearest counterpart on the progressive side, the Tides Foundation, a bogeyman of Glenn Beck and Bill O’Reilly, Donors Trust has mostly avoided any real scrutiny. It is the dark-money ATM of the right.

Founded in 1999, Donors Trust (and an affiliated group, Donors Capital Fund) has raised north of $500 million and doled out $400 million to more than 1,000 conservative and libertarian groups, according to Whitney Ball, the group’s CEO. Donors Trust allows wealthy contributors who want to donate millions to the most important causes on the right to do so anonymously, essentially scrubbing the identity of those underwriting conservative and libertarian organizations. Wisconsin’s 2011 assault on collective bargaining rights? Donors Trust helped fund that. ALEC, the conservative bill mill? Donors Trust supports it. The climate deniers at the Heartland Institute? They get Donors Trust money, too.

Donors Trust is not the source of the money it hands out. Some 200 right-of-center funders who’ve given at least $10,000 fill the group’s coffers. Charities bankrolled by Charles and David Koch, the DeVoses, and the Bradleys, among other conservative benefactors, have given to Donors Trust. And other recipients of Donors Trust money include the Heritage Foundation, Grover Norquist’s Americans for Tax Reform, the NRA’s Freedom Action Foundation, the Cato Institute, the American Enterprise Institute, the Federalist Society, and the Americans for Prosperity Foundation, chaired (PDF) by none other than David Koch. 

In a recent interview, Ball, who calls herself a libertarian, went to great lengths to stress that she’s no Koch brothers stooge, and that Donors Trust is not yet another appendage of the almighty "Kochtopus." She insists, “We were not created by them at all.”

Donors Trust is a so-called "donor-advised fund," a breed apart from a family foundation like, say, the Lynde and Harry Bradley Foundation, which helped build the conservative movement over decades with donations totaling tens of millions of dollars. The people who donate to Donors Trust don’t get final say over how their money is spent. But they get to recommend where their cash goes, and in exchange for giving up some control, they get a bigger tax write-off than they would with a family foundation. (And those who wish it get anonymity.)

Ball says she travels all over the country courting wealthy conservatives and libertarians, and attends Koch donor retreats and Cato “shareholder” meetings. The crux of her pitch is this: Rich folks can give to Donors Trust and rest easy knowing that their millions will continue bankrolling the conservative movement long into the future, even after their death.

Donors Trust grew out of the fear among right-leaning donors that their family foundations might end up in the hands of those who would fund centrist or, even worse, left-of-center causes. At the behest of the late Bruce Jacobs, a Seattle-area businessman and “paleocon” who didn’t want to underwrite a local community foundation, Ball and a conservative strategist named Kimberly Dennis created Donors Trust.

Donors Trust is the only honey-pot of its kind for right-leaning donors. But on the left, there’s theTides Foundation, which gives out tens of millions of dollars each year to thousands of left-leaning groups in the US and overseas (including Mother Jones' nonprofit arm, the Foundation for National Progress). Tides is a target of conspiracy theorists such as TV and radio host Glenn Beck, who hasfeatured Tides on his infamous connect-the-dots chalkboard. But Donors Trust’s strategic intent is far narrower and more coherent than Tides’. The groups funded by Donors Trust more or less pursue the same agenda—eliminate regulations, kneecap unions, shrink government, and transfer more power to the private sector.

Donors Trust keeps its contributors secret. Funders can ask Donor Trust to publicly identify their donations, but very few do, Ball says. The reasons for preferring anonymity are many. Some donors want to avoid attention; others don’t want their mailboxes and inboxes filling up with unwanted solicitations for more money.

Tax records, however, reveal some of the sugar-daddies of the conservative and libertarian movement who funnel big money through Donors Trust. The Knowledge and Progress Fund, a charity bankrolled by Charles Koch, gave $2 million in 2010. The DeVos family charity, another pillar of conservative politics, contributed $1 million in 2009 and $1.5 million in 2010. And yet another long-time bankroller of conservative politics, the Bradley family, donated $650,000 through their charity between 2001 and 2010.

h/t: Mother Jones