the heritage foundation 2009 annual report Our Mission To formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values and a strong national defense.

Board of Trustees Senior Management Thomas A. Saunders III,Chairman Edwin J. Feulner, Ph.D., President Richard M. Scaife, Vice Chairman Phillip N. Truluck, Executive Vice President J. Frederic Rench, Secretary Stuart M. Butler, Ph. D., Vice President Meg Allen Becky Norton Dunlop, Vice President Douglas F. Allison John P. Fogarty, Vice President Larry P. Arnn, Ph. D. Michael G. Franc, Vice President The Hon. Belden Bell Michael M. Gonzalez, Vice President Midge Decter Kim R. Holmes, Ph. D., Vice President Edwin J. Feulner, Ph. D. Edwin Meese III, Reagan Fellow Steve Forbes Ted E. Schelenski, Vice President Robert J. Herbold Michael Spiller, Vice President Todd W. Herrick John Von Kannon, Vice President and Treasurer Jerry Hume Genevieve Wood, Vice President Kay Coles James Robert E. Russell Jr., Counselor Lee Klinetobe The Hon. J. William Middendorf II Honorary Chairman and Trustee Emeritus Abby Moffat David R. Brown, M.D. Nersi Nazari, Ph. D. Honorary Trustees Robert Pennington Kathryn Davis William E. Simon, Jr. The Hon. Frank Shakespeare Brian Tracy Phillip N. Truluck Patron of The Heritage Foundation Barb Van Andel-Gaby The Right Honourable The Baroness Thatcher,LG, Marion G. Wells PC, OM, FRS

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Building an America where Freedom, Opportunity, Prosperity, and Civil Society Flourish Message from the Chairman and the President Photo: Newscom Photo: Sept. 12, 2009: Hundreds of thousands converge on the grounds of the Capitol for a massive “Tea Party.” The grassroots movement shares Heritage’s desire to build an America where freedom, opportunity, prosperity, and civil society flourish. Getting “Hope and Change” Right

Hope and change. Seldom have so few words generated so much anticipation. And so much irony. The 2008 campaign slogan became the Left’s battle cry at the dawn of 2009. But by year’s end, many of their troops were dispirited. Instead, hope was stirring through the growing and energized ranks of conservatives. And change? Well, that takes a little more telling.

arack Obama signaled the kind of and use their majority to go on a trans- greater regulatory control of banks and change liberals had in mind in 2001, formational rampage. Federal spending investment firms. Bwhile serving in the Illinois Senate. The exploded. General Motors became Gov- Internationally, our president kept Constitution, he said, had “deep flaws.” ernment Motors. Financial institutions apologizing for America while bow- He faulted the Supreme Court as well, fell under federal control. Budget deficits, ing before dictators. As North Korea because “it didn’t break free from the once measured in billions, skyrocketed test-fired missiles and Iran raced to essential constraints that were placed by into trillions. An economic “stimulus” build nukes and the missiles to deliver the Founding Fathers in the Constitu- package morphed into history’s biggest them, we scaled back on ballistic missile tion.” Just before the 2008 election, he pork-grab—and a jobless one, at that! defense. The Administration down- proclaimed, “We are five days away from Yet Washington wanted still more graded the war on terrorism to “overseas fundamentally transforming the United power: a government-run health sys- contingency operations” and reclassified States of America.” tem… a “cap and trade” energy scheme terrorism as “man-caused disasters.” We Congressional leadership, too, was that would send utility bills through the insulted the British and jilted our Polish eager to cast aside “essential constraints” roof and kill off millions of jobs… even and Czech allies, while chumming it up

Leadership for America The Heritage Foundation 1 In Memoriam with the likes of Ahmadinejad, Assad Initially drawing hundreds of and Chavez. participants, and then thousands, by It was change, indeed. But not July 4 the crowds numbered in the tens the kind of change most Americans of thousands. The spontaneous pro- wanted. Predictably, it triggered a tests hit a new level on Sept. 12, when massive backlash. several hundred thousands marched

Photo: Newscom Photo: on Capitol Hill. There, they called on Robert Novak: The Spirit of America Congress: “Stop spending money you The backlash began in February, in the don’t have!” “Stop saddling our grand- 1931-2009 President’s own back yard. On the floor children with debt!” “Start acting like of the Chicago Board of Trade, CNBC responsible adults!” analyst Rick Santelli loosed a rant For many it was their first political heard ’round the world: “If you read our protest. It confirmed Tocqueville’s obser- Founding Fathers — people like Ben- vation that, when roused to action, Amer- jamin Franklin and Jefferson — what icans unite in voluntary associations. Like we’re doing in this country now is mak- no other people on Earth, Americans will ing them roll over in their graves.” Amid join causes for common purposes. Photo: Chas Geer Chas Photo: applause from the floor, Santelli went House Speaker Nancy Pelosi Jack Kemp: on to spark a bonfire: “We’re thinking tried to dismiss the protesters, brand- 1935-2009 of having a Chicago Tea Party in July,” ing them first as insurance company he said. “All you capitalists that want to hirelings, later as dupes of “the rich.” show up to Lake Michigan, I’m gonna But the polls told a different story: The start organizing.” American people are rejecting the Left’s Soon the Internet crackled with radical agenda. plans for rallies evoking the spirit of Consider findings of the Pew Re- the 1773 Boston Tea Party. Within search Center. Its polls ask for a word weeks, Tea Parties were popping up in that describes President Obama. In cities and towns across America. One February the most common words were Photo: Newscom Photo: Internet site listed more than 600 Tea “change” and “intelligent.” Just two months Irving Kristol: Party organizations— from Jasper, Ga., later, “change” was no longer in the top 10, 1920-2009 to Cottage Grove, Ore.; from Brenda, and “socialist” stood at number 3. Ariz., to Concord, N.H. More importantly, 41 percent of

2 The Heritage Foundation 2009 Annual Report Photo: Teter Alunans/Victims of Communism Memorial Communism of Alunans/Victims Teter Photo: Photo: Captured Moments Photography Moments Captured Photo: Dr. David Brown, left, accepts the Clare Boothe Luce Award— Heritage Distinguished Fellow Edwin Meese III displays the Reagan- Heritage’s highest honor— from Edwin Feulner at a ceremony in Truman Medal of Freedom, bestowed on him in June. Celebrating Oklahoma City. Brown served as chairman of Heritage’s Board from with him are Roger Ream (left), president of The Fund for American 1997-2009. Studies, and TFAS Chairman Randal C. Teague.

Americans identified themselves as con- Founders’ principles. And The Heritage servative on the issues of taxes, govern- Foundation gladly provided them. The ment spending, and business regulation; core goal of our ongoing “Leadership for The Heritage Foundation Board of Trustees only 12 percent called themselves liberal. America” campaign is to help the Amer- (from left): Abby Moffat; Todd W. Herrick; And polls showed independent voters ican people rediscover and revive the Steve Forbes; Kay Coles James; Brian Tracy; moving en masse toward conservatism. first principles of liberty. Throughout Richard M. Scaife, Vice Chairman; David R. Brown, Trustee Emeritus; Marion G. In October, for the first time since Presi- 2009, we reached out as never before, Wells; Nersi Nazari; Thomas A. Saunders dent Obama took office, a majority of engaging Americans in civic action and III, Chairman; J. William Middendorf II; Americans said our country was on the inviting them to join our cause. Edwin J. Feulner; Jerry Hume; Phillip N. wrong track. The response has been amazing. Truluck; J. Frederic Rench, Secretary; Barb As Americans recoiled from the On Jan. 1, 2009, our member- Van Andel-Gaby; Larry P. Arnn; Douglas F. Allison; Lee Klinetobe; Midge Decter; Left’s agenda, they earnestly sought ship stood at 400,000. At year’s end Belden Bell; Robert J. Herbold; Meg Allen; viable alternatives—effective, conserva- we numbered 582,000, a 45 percent Robert Pennington. (Not pictured: William tive policy solutions that uphold the increase. We are now, many times over, E. Simon, Jr.)

Photo: Frasierphoto.com

Leadership for America The Heritage Foundation 3 Photo: www.DavidHills.net Photo: Heritage Foundation Senior Management: (from left, top row) Michael Spiller, Vice President; John Von Kannon, Vice President and Treasurer; Michael G. Franc, Vice President; John P. Fogarty, Vice President; Ted E. Schelenski, Vice President; (middle row) Becky Norton Dunlop, Vice President; Michael M. Gonzalez, Vice President; Genevieve Wood, Vice President; Edwin Meese III, Reagan Fellow; (bottom row) Phillip N. Truluck, Executive Vice President; Edwin J. Feulner, President; Stuart M. Butler, Vice President; Kim R. Holmes, Vice President. (Not pictured: Robert E. Russell Jr., Counselor.)

the most broadly supported think tank service as Chairman of our Board of servatism and a respected intellectual in America. Trustees, David Brown stepped down. leader for several generations of conser- Our operating revenues grew as We are grateful he remains with us vatives. well, up 13 percent over 2008. And that as Honorary Chairman and Trustee We also celebrated some well- during an abysmal economy! Emeritus. The Board named a new deserved honors: David Brown re- Equally gratifying, more people Chairman (Me! –Tom Saunders) and ceived our Clare Boothe Luce Award, than ever sought out our views: Visi- welcomed three new trustees: Meg Al- Heritage’s highest honor. The Victims tors to Heritage.org jumped 42 percent, len, Abby Moffat and Robert Penning- of Communism Memorial Foundation averaging nearly 1.2 million visits per ton. Our Senior Management team awarded Ed Meese, our Ronald Reagan month. More than 140,000 subscribed welcomed two new members: Mike Distinguished Fellow, the Truman- to our daily e-letter, “Morning Bell.” The Gonzalez, Vice President of Commu- Reagan Medal of Freedom. ranks of our Facebook “friends” swelled nications, and John Fogarty, Vice Presi- We even changed our appearance to over 100,000, while 35,000 followed dent of Development. a bit— refurbishing Lehrman Audito- our every move on Twitter. With sadness but deep gratitude, rium, giving our Web site a complete Lawmakers on Capitol Hill request- we bid final farewell to some old friends makeover, and hosting our first-ever art ed—and received—over 125 private and colleagues. Among them were: exhibit, the Gulag Collection. The lat- analyses of their bills from our Center Trustee Holly Coors; Ambassador ter presented 50 paintings by Ukrainian for Data Analysis. More than 85 political Harvey Feldman, Distinguished Fellow artist Nikolai Getman memorializing candidates came to us for issue briefings in China Policy at Heritage; Robert his years of sorrow and suffering in a — and it wasn’t even an election year! Novak, an extraordinary reporter and Soviet gulag. conservative columnist; Jack Kemp, the And we made tremendous progress Leadership for America pioneering supply-sider who came to restoring and expanding the burnt-out Heritage also marked institutional epitomize “bleeding-heart conservatism,” building we acquired last year at 227 changes during 2009. After 17 years of and Irving Kristol, architect of neocon- Pennsylvania Ave., SE. Soon that facility,

4 The Heritage Foundation 2009 Annual Report Photo: Chas Geer Chas Photo: The summer 2009 interns gather in Allison Foyer with Heritage President Ed Feulner and staff of our Young Leaders Program. More than 340 top students competed for the 67 summer slots available. complete with meeting rooms and office federal spending, Heritage answered the fast, stronger than ever, because of space, will give Heritage an outpost on call, speaking out for freedom and the you. Thank you for all you do to make the other side of Capitol Hill, just blocks rule of law. Details of those battles and Heritage an institutional leader. We are from the House office buildings. more await you in this report. grateful for your generosity, inspired by Yes, 2009 was a remarkable year. The fight to protect our nation’s your dedication, and humbled by your Liberals expected to cakewalk America founding principles from “progressive” trust in us. We pledge to remain worthy into collectivism, chanting, “Yes, we incursions has begun in earnest. We of it. can!” But the American people rose up, can’t foretell outcomes, but of this you Sincerely, moved right, and replied emphatically: may be certain: Wherever the battle “No, you won’t!” lines are drawn, The Heritage Founda- And every time the Left tried tion will be in the vanguard. And we will to advance its agenda—on scores of remain faithful to the First Principles Thomas A. Saunders III,Chairman fronts—Heritage was there, leading that made America a beacon of true the fight for freedom. On health care hope to all the earth. reform, on national security policy, on In 2010, we will remain stead- Edwin J. Feulner, President

Thomas A. Edwin J. Feulner Saunders III has been was elected President of as Heritage’s The Heritage Chairman of the Foundation Photo: Frasierphoto.com Photo: Board in April. Frasierphoto.com Photo: since 1977.

Leadership for America The Heritage Foundation 5 Empowering Patients, not Politicians

Bathed in March sunshine and surrounded by liberal congressional leaders, President Obama proclaimed: “The stars are aligned” for health care reform. Moreover, he declared, the deed would be done before Congress adjourned for August recess.

ut, come July, the deadline slipped health care was headed in precisely the to “this year.” And with Novem- wrong direction. Bber’s stunning defeat of liberal gu- Throughout the year, Heritage bernatorial candidates in the Obama delivered a steady stream of rigorous strongholds of Virginia and New original research and clear-eyed analysis Jersey, all bets were off. Senate Major- that exposed the harsh realities buried in ity Leader Harry Reid announced he the 1,000-plus-page House bill and the was “not going to be bound by any 2,000-plus-page Senate proposal. timelines,” and eager-beaver reformer Systematically, repeatedly, Chuck Schumer—the senior senator Heritage experts exposed the false from New York—abruptly decided promises of liberal reformers and the that “the most important thing is to dangerous consequences of putting get it done right, not quickly.” government in charge of health care The “Massachusetts Miracle” financing and delivery. brought the Obamacare juggernaut to a Newscom Photo: Take the Administration’s mantra: Local protesters make their views known screeching stop. But it’s not as though outside a public forum on health reform “If you like your current coverage, you progressive lawmakers hadn’t been hosted by Sen. Claire McCaskill, D-Mo., at can keep it.” Heritage commissioned warned their bold effort to remakeOne in FiveJefferson on CollegeMedicaid? in Hillsboro, Mo. the Lewin Group—a nationally re- The House-passed health bill would extend Medicaid eligibility to all adults earning up to 150% of the poverty level. That’s 62.1 million adults—almost 21 percent of our entire population. One in Five on Medicaid? Percentage of Population Eligible for Medicaid Under Proposed Federal Legislation Percentage of Population Eligible for Medicaid Under The House-passed Proposed Federal Legislation health bill would extend Medicaid eligibility to all adults earning up to 150% of the poverty level. That’s 62.1 million adults—almost 21 percent of our entire population.

Key 10% to 15% 15.1% to 20% 20.1% to 35% 25.1% +

6 The Heritage Foundation 2009 Annual Report Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna Heritage Vice aliquam erat volutpat. President Stuart Ut wisi enim ad Butler testifies minim veniam, quis before the Senate nostrud exerci tation Finance Committee ullamcorper suscipit on affordable, lobortis nisl ut aliquip market-based ex ea commodo health reforms that consequat. can expand health coverage far more efficiently than government-run

Photo: Spencer Anderson Spencer Photo: systems.

nowned, independent health research new statistical model that generated Predictably, the Finance Commit- organization—to analyze exactly how much interest from lawmakers. Several tee bill was a public option in co-op the House version of Obamacare members of Congress, intent on devel- clothing. So, once again, Heritage would affect those already insured. oping cost-effective reforms, relied on experts fired off a series of papers ex- Their conclusion: 85 millionfewer our new analytical tools to evaluate and plaining that, while true health care co- Americans would have employer-based refine their own proposals. Our rigor- operatives should be encouraged in the coverage, and many would end up in a ous research informed virtually all of private sector, a government-managed government-run plan. the practical conservative alternatives to cooperative would only create the same We brought the message of the the Left’s big-government solutions. problems as other government-run Lewin study even closer to home with Intellectual ammunition from health systems. our own state-by-state analysis of how Heritage also figured prominently in We exposed other flaws in both

Again and again, members of Congress cited Heritage research in floor

speeches and newspaper articles. At congressional town hall meetings,

protesters asked informed questions based on our findings.

many people would lose private cover- the national debate. Again and again, the House and Senate bills. Like the age and wind up in government-run members of Congress cited Heritage fact that cutting billions of dollars programs. To the consternation of research in floor speeches and news- from the Medicare Advantage program the Left, the dynamite findings were paper articles. When congressional would result in millions of seniors no cited repeatedly—from major media proponents of Obamacare held town longer enrolled in this popular cover- such as The Wall Street Journal and hall meetings in their home districts, age. And the fact that the proposed The Washington Post, to local outlets protesters used our research to ask Medicaid expansions would cost state like the Minneapolis Star-Tribune and questions for which proponents had no and federal taxpayers billions. So much Montana’s Big Sky Business Journal. satisfactory answers. for reform not costing a penny more! Throughout the yearlong debate, Unable to buffalo the public Other Heritage research focused Heritage competed head-to-head about the virtues of a “public option,” on the host of new taxes strewn with government agencies in analyz- Senate liberals dug into their bag of throughout the proposals—including ing health proposals. Experts in our rhetorical tricks and came up with a the House bill’s new surtax on “the Center for Data Analysis rolled out a “co-op alternative.” rich.” Our analysts identified how

Leadership for America The Heritage Foundation 7 False Promises of ObamaCare Many of President Obama’s promises about his approach to health reform were too good to be true. Here are just six debunked by Heritage analysts in 2009: n If you like your health insurance, you can keep it. Fact: Imposing an employer mandate or creating a new government-run health plan would change or dissolve exist- ing private coverage for millions of Americans. n Obamacare will be fully paid for and not add to the deficit. Fact: The 10-year price tag for various versions ranged from $900 billion to $2.5 trillion, and that’s with taxes starting years before the benefits kick in. Photo: Chas Geer Chas Photo: n Obamacare will save the typical Sen. Jim DeMint, R-S.C., describes draft legislation to offer every family a tax credit to family $2,500. Fact: The bills actu- buy health insurance—part of his comprehensive proposal to “Stop America’s Slide into ally increase total health care spend- Socialism”—at a July presentation at Heritage. ing. Many Americans, especially the young and healthy, would face these taxes would hurt small-business invention”—to experiment with new higher health care costs, not lower. owners and otherwise discourage job ways to expand coverage and make it n Middle-class Americans making creation and economic growth. affordable. $250,000 or less won’t see The American public got it: A And we worked to make those ex- their taxes go up. Fact: The severe recession is no time to impose periments succeed. We convened a trail- personal mandate, higher taxes on new taxes. But many lawmakers re- blazing health-reform conference for investment income, new taxes on fused to listen. policymakers from the Southern states insurance plans, medical devices, By year’s end, the House and Sen- to review “best practices” of state health and pharmaceuticals… all would ate had narrowly approved two pro- reform, and how to adapt them to meet increase taxes for many middle-class foundly dysfunctional bills. Heritage needs peculiar to the region. The pro- families and businesses. analyses identified and explained the gram featured Mississippi Gov. Haley n Obamacare isn’t a government grave pitfalls and false promises in each. Barbour, a hands-on health reformer, takeover. Fact: The Left’s proposals Conservative lawmakers seized upon and drew high-level officials from Texas would concentrate decisions over this information to help rebut and resist to Georgia. health care financing and delivery the effort. We also worked with Westerners in the hands of Washington bu- These same lawmakers insisted interested in market-based reform. Af- reaucrats and politicians. That’s a that there must be a better way to ex- ter months of consultation with Heri- government takeover. pand coverage to all Americans—and tage experts, Utah policymakers en- many of them turned to Heritage for acted an impressive package of health n All health care negotiations will recommendations on how to do it. We reforms. And we continue working be broadcast on C-SPAN. Fact: responded by developing alternative with lawmakers elsewhere to develop Virtually all of the House and Senate reform proposals to increase consum- innovative, responsible health policy bills were hashed out in closed- ers’ options for affordable insurance and recommendations for their states. door meetings. The result: ugly leave medical decision making to them Throughout the year, Heritage and costly back-room deals to gain and their physicians, not government. proved to be an indispensable leader, support for Obamacare. In accordance with the core prin- informing lawmakers—and the general For information on the right way to reform ciple of federalism, we also urged Con- public—of the ill effects arising from health care in America, please visit Heritage’s gress to drop its grandiose, centralized government-managed health care and www.fixhealthcarepolicy.com. approach to health reform and instead the benefits of pursuing market-based, free the states—those “laboratories of consumer-driven health systems.

8 The Heritage Foundation 2009 Annual Report Fighting for our Fighting Forces

In 2009, Congress spent as never before… with one disturbing exception: national defense.

tion urging defense spending sufficient to meet our core needs. More than 115,000 Americans signed on. By the time Newt Gingrich de- livered the closing address, the month- long educational campaign had raised awareness throughout the nation and on Capitol Hill. Indeed, it prompted House Minority Whip Eric Cantor and Sen. Kay Bailey Hutchison to join a new coalition of lawmakers pledged to seek an adequate defense budget. The Softening of Resolve As the Left retrenched on defense Scene from 33 Minutes, Heritage’s feature-length documentary on missile defense. spending, so it downplayed the seriousness of the war on terror. Here, the first cutbacks were semantic. The ust weeks after taking office, Presi- Bob Graham, who head the congres- administration banned the phrase “global dent Obama ordered the Joint Chiefs sional Commission on the Prevention war on terrorism,” replacing it with Jto cut the Pentagon’s budget by at of Weapons of Mass Destruction Pro- “overseas contingency operation.” Acts of least 10 percent. Key programs went on liferation and Terrorism. terror became “man-caused disasters.” the chopping block—including missile As an adjunct to the lecture series, Substantive strategy shifts followed. defense, new fighter jets, and the next Heritage sponsored an online peti- Big-stick deterrence was eschewed in generation of weapons. As the cuts fell, Heritage experts North Korea’s missiles move within stressed that—by any reasonable measure—maintaining a robust defense striking distance Current range: requires an annual budget of at least Russia 3,000–6,000 4 percent of gross domestic product. Arctic Ocean miles That’s about half of what we spent Mongolia throughout the 40-year Cold War. Ab- sent a firm commitment to defense, even China this level of spending will be increasingly Alaska vulnerable to “crowd-out” by soaring en- Canada titlement costs. To raise awareness of our growing Bering defense “deficit,” Heritage designated Sea U.S. June as Protect America Month, host- Seattle North ing a series of lectures mapping out Korea 1993 range: 1998 range: Pacific 620 miles 1,250 miles Ocean the dangers of “penny-wise” policies that threaten to hollow out our na- Japan North Korea’s ballistic missiles have increased their tion’s military. range five-fold since 1990. When Pyongyang perfects a Mitt Romney delivered the kick- third stage for its Taepodong-2, the missiles could reach off lecture. Other speakers included Air anywhere in North America—in about 33 minutes. Force Chief of Staff Norton Schwartz and former senators Jim Talent and

Leadership for America The Heritage Foundation 9 Photo: Chas Geer Chas Photo:

Photo: Chas Geer Chas Photo: Mackenzie Eaglen, Heritage research fellow for national security Sen. Mark Begich, D-Alaska, discusses the need for missile defense studies, introduces Lt. Gen. Charles E. Stenner Jr., commander of in a July presentation hosted by Heritage President Ed Feulner (left). the Air Force Reserve.

favor of soft diplomatic charm. Naively, officials tried to negotiate with self- Confronting the Nuclear Threat proclaimed enemies—including the rogue regime in Tehran. There’s nothing wrong with di- plomacy, of course. In fact, Heritage worked hard to form a Public Diplo- Retired Air Force macy Network group—policy organiza- Lt. Gen. Henry tions that are now pressing Congress to “Trey” Obering, a exercise oversight over the Administra- former director of the Missile Defense tion’s more questionable diplomatic ini- Agency, discusses tiatives. We also helped lawmakers form the nuclear strike a new caucus of members dedicated to capabilities of effective Public Diplomacy and Strategic America’s enemies Communications. in 33 Minutes. But diplomacy can accomplish A cutting-edge documentary exposed a real “inconvenient truth” in 2009: only so much, and Heritage continually America’s near-total vulnerability to missile attack. warned the Administration against over- On Feb. 11, Heritage’s first-ever feature-length film, 33 Minutes: Protecting reliance on “peace through palaver.” All America in the New Missile Age, premiered at the Motion Picture Association too soon, our concerns were validated. of America Theater in Washington, D.C. Thanks to the generosity of William In September the Administration boast- S. Edgerly, the high-definition production features on-location segments from ed of a “breakthrough” development: around the globe, interviews with world leaders and exclusive footage from the Iran had agreed to ship most of its ura- Missile Defense Agency. nium to other countries for enrichment, The one-hour movie reveals a frightening truth: that a missile launched thereby reducing its capacity to develop anywhere in the world by terrorists or a rogue state could strike the U.S. within nuclear weapons. But seven days later, 33 minutes of lift-off. It documents the need for multilayered missile defense. Iran backed out. Faster than you can say “North Korean nukes,” Heritage proliferated DVD As Heritage expert James Carafano copies and screening guides to all corners of the country. Several members of wrote in his weekly newspaper column, Congress used them to conduct town hall meetings. And scores of Heritage “All the Administration managed to members and allied groups hosted neighborhood screenings in school gyms, accomplish was to offer unearned le- church halls, public libraries and private living rooms. gitimacy to the Iranian government — Our Community Committees hosted large gatherings in hotels, museums treating the radical regime as a responsi- and movie theaters. These events also featured lively Q&A sessions with ble partner. Meanwhile, the U.S. allowed Heritage experts such as Edwin Meese, Kim Holmes, James Carafano, Jim Tehran to buy more time for developing Talent, and Peter Brookes. their weapons program.” By year’s end, 33 Minutes had reached an audience of 45,000, thanks to On missile defense, President more than 500 screenings in 47 states. Many left determined to spread the Obama unilaterally reneged on the 2008 truth about missile defense even further in 2010. agreement to build 10 interceptor sites

10 The Heritage Foundation 2009 Annual Report Identifying America’s Long-Term Security Needs in Poland and deploy missile-defense radar in the Czech Republic. The pact Heritage declared June was essential to protect our Eastern Eu- “Protect America Month.” ropean allies from the growing threat of But our series of lectures, nuclear attack from Iran. panel discussions and Heritage experts Baker Spring and policy briefs on national Mackenzie Eaglen argued forcefully security proved so popular, that the decision “runs contrary to U.S. we extended the month to strategic interests and will undermine six weeks. security commitments to America’s al- Mitt Romney kicked off lies.” And we pressed that message with the program with a June numerous screenings of 33 Minutes: 1 lecture at Washington’s

Protecting America in the New Missile U.S. Navy Memorial. His Geer Chas Photos: Age. The one-hour documentary makes address, “The Care of Former Massachusetts Governor and presidential candidate a powerful case for deploying missile Freedom,” identified Mitt Romney kicks off Protect America Month with a June 1 speech at the Navy Memorial. defense shields to protect Americans a wide range of global and our allies from nuclear attack. threats—from radical jihadism to rising authoritarian states—and the countermeasures In August on-screen narrator James needed, including a robust military. Jay Carafano, director of Heritage’s Al- The series’ final address—Newt Gingrich’s July 20 speech on preparing for known lison Center for Foreign Policy Studies, and yet-to-emerge threats—packed Allison Auditorium and drew a Webcast viewing previewed the movie at the annual con- audience of 9,000 more. vention of the American Legion. The Other speakers included: Air Force Chief of Staff Norton Schwartz; former CIA clip—and his presentation—brought Deputy Director John McLaughlin; best-selling author Brad Thor, and former senators down the house. Scores of legionnaires Robert Graham and Jim Talent, the Chairman and Vice Chairman of the Commission signed up to air the documentary at lo- on the Prevention of WMD Proliferation and Terrorism. cal posts and state conferences. To spark public involvement in the debate, Heritage posted an online petition Heritage Community Commit- calling for a significant boost in defense funding, including missile defense. It tees also hosted numerous screenings, garnered over 115,000 signatures from all 50 states. as did dozens of allied organizations. In September, Heritage focused a spotlight on homeland security challenges, host- All told, 33 Minutes received more than ing a five-day “Homeland Security University” lecture series. In addition to Heritage 500 screenings, reaching audiences in 47 experts, featured speakers included Frances Fragos Townsend, a former Special As- states and the District of Columbia. sistant to the President for Homeland Security and Counterterrorism, and Paul McHale, a former Assistant Secretary of Defense for Homeland Defense. Heritage Recommendations More than 150 people Adopted attended the week-long For years, Heritage criticized the series, and hundreds Quadrennial Defense Review (QDR) more watched online at process as being inordinately expensive heritage.org. and time-consuming. Worse, it largely Newt Gingrich, former rubber-stamps the preconceived agenda House Speaker and of a single official: the secretary of member of the U.S. defense. Our recommended solution: Commission on National establish an independent National De- Security/21st Century, fense Panel to review the QDR, assess- closes Protect America Month with a July speech ing both its strategy findings and the at Heritage. secretary’s assumptions. With the National Defense Au- thorization Act of 2009, our recom- appointed Eaglen’s colleague, Heritage ministration merged the staffs of the mendation became law. “Mackenzie Distinguished Fellow Jim Talent, to National Security Council and the Eaglen, a defense analyst at the Wash- serve on the independent panel. Homeland Security Council—a key ington-based Heritage Foundation,… Even the White House took recommendation of the “Homeland led the call for creation of an alternative to heart our recommendations to Security 3.0” report published jointly U.S. defense strategy study,” Defense streamline the nation’s homeland by Heritage and the Center for Strate- News noted. In December, Congress security apparatus. In May, the Ad- gic and International Studies.

Leadership for America The Heritage Foundation 11 Photo: iStock.com Photo: The path to abundant, affordable energy is through the free market. The biggest obstacle is needlessly restrictive regulation and the pernicious influence of government subsidies. Injecting Sanity in an Alarmist-dominated Debate

At the opening of the 111th Congress, liberal leaders vowed to ram through a ruinous cap- and-trade “climate” bill in the first 100 days. That “slam dunk” quickly turned into a titanic, five-month-long battle.

ltimately, the 1,000-plus-page the half of it. Heritage’s Center for how much Waxman-Markey would Waxman-Markey bill squeaked Data Analysis (CDA) ran an econo- cost each congressional district in Uthrough the House on June 26. But metric analysis of Waxman-Markey economic productivity, jobs, and just barely. The razor-thin 219-212 that exposed a host of damages the personal income. Lawmakers cited approval—coupled with public out- multi-trillion-dollar plan would in- our research in countless floor cry over the bill’s cost—significantly flict upon the American economy. speeches and in columns appearing dimmed prospects for Senate passage. We broke down the costs in terms back home in their home newspapers. The bill fully merited all the everyone could relate to: how much Syndicated columnists such as David opposition it encountered. Cap-and- more they would have to pay for gaso- Limbaugh and Cal Thomas helped trade is, in fact, a massive cap-and- line, electricity, and consumer goods. spread the word. Dozens of editorial tax scheme. As Candidate Obama Even members of Congress got the writers also cited Heritage research in had admitted during the campaign: picture—and many got increasingly condemning the bill. “Under my plan of a cap-and-trade nervous about the bill. Capitol Hill turned to us for system, electricity rates would That was only the start. authoritative analyses. The House necessarily skyrocket.” Subsequent Heritage research drilled Energy and Commerce Commit- But soaring utility rates weren’t down to the state level, showing tee sought testimony from CDA

12 The Heritage Foundation 2009 Annual Report As knowledge of Heritage’s clear, credible analyses spread, so did reservations about pursuing a cap-and-trade policy. On the Hill, moderates joined conservatives in expressing grave reservations about the approach. expert David Kreutzer, and Heritage environmental analyst Ben Lieber- A Catastrophic Response to Global man presented testimony before two WarA Catastrophicming Fears Response to Global Warming Fears House and two Senate committees. Liberals pushed to And staff from dozens of congres- Liberals pushed to restrictrestrict greenhouse greenhouse sional offices requested one-on-one gas emissions via a gas emissionscap-and-trade via “Cap and Trade”: briefings to help them understand the $1.9 trillion policy “weeds.” As a result of those a cap-and-traderegime. Their regime.legislative Their meetings, a group of Hill energy poli- proposal would cy staff invited Kreutzer to conduct a legislativecost U.S. proposal New Deal: mega-briefing detailing cap-and-trade wouldbusinesses cost U.S. and $500 billion businessesconsumers and $1.9 costs and explaining how the Environ- trillion over just consumers $1.9 Hurricane mental Protection Agency (EPA) and eight years— Katrina: the Congressional Budget Office had trillionmore over than just 10 $150 billion eighttimes years— the economicmore grossly underestimated the costs. havoc caused by Lieberman’s and Kreutzer’s find- than Hurricane10 times theKatrina. ings spread far beyond the Capitol economic havoc caused Note: Figures are adjusted for inflation. Beltway. They were invited to brief by Hurricane Katrina. state and local policy groups such as Chicago’s Heartland Institute, as well credible analyses spread, so did res- designation would give the agency as concerned business groups rang- ervations about pursuing a cap-and- a green light to issue sweeping and ing from the Southwest Agribusiness trade policy. On the Hill, moderates costly new regulations. Council to state and local Chambers joined conservatives in expressing But Heritage was ready. of Commerce. Meanwhile, Heritage’s grave reservations about the approach. Bridgett Wagner, director of Strategic Marketing team translated As support for Waxman-Markey Coalition Relations, assembled an their research findings into a four- fizzled, the EPA tried a new tactic, interdisciplinary working group with minute video on cap-and-trade that issuing an “advanced notice” that it in- expertise in legal, industrial, public was viewed by tens of thousands on tended to designate CO2—the same policy and legislative matters to craft a YouTube. gas that humans exhale and plants comprehensive conservative response. As knowledge of Heritage’s clear, need to live—as a “pollutant.” That Heritage also launched an interactive

Benjamin Lieberman reports live, via webcast, from the United Nations Conference on Climate Change in Copenhagen, Denmark. As credentialed NGO (Non-Governmental Organization) delegates, Lieberman and Steven Groves represented Heritage at the December gathering.

Leadership for America The Heritage Foundation 13 Cap and Trade Will it Save the Earth?

In “Cap and Trade: Will It Save the Earth?” Senior Policy Analyst David Kreutzer (upper left) dispels common misconceptions about how proposed environmental legislation would affect both the climate and citizens’ pocketbooks. Web site, StopEPA.com, to inform In addition to blowing the the American people about the EPA’s whistle on ruinous proposals such proposed rules. as Waxman-Markey, Heritage To help people understand the developed policies to increase stakes, we posted a detailed CDA analy- domestic energy production via sis showing that the EPA’s proposed free markets. Heritage expert Jack regulations would cause cumulative Spencer’s ideas for dramatically gross domestic product losses of $7 tril- increasing nuclear power production lion by 2029, accompanied by job losses by freeing the industry from the of more than 800,000 per year for sev- shackles of government subsidies eral years. Some industries would lose met with tremendous interest on more than half their workforce. Capitol Hill. Legislative staffers subsequently enlisted Spencer’s help in crafting two proposals. The American Energy Act, prepared by the Republican Conference, included Heritage’s plan to streamline the regulatory process so new nuclear plants can be brought online much more quickly. That was Jack Spencer (right), Heritage followed by the SAFE Nuclear Act, research fellow in nuclear energy, which included many programmatic thanks Gregory Jaczko, chairman of the Nuclear Regulatory changes recommended by Heritage, Commission, at our July 7 program as well as streamlined regulatory on the future of nuclear power. proposals.

14 The Heritage Foundation 2009 Annual Report Protecting Individual Freedoms

In 1215 a group of British nobles, swords in hand, forced King John to sign the Magna Carta. It established the principle that a king’s will could not override the law of the land.

ore than five centuries later, work included rolling back the intru- house arrest for another 30 days and that principle inspired Ameri- sive reach of government regulators expelled for the school year. In Henry Mcan colonists repressed by another bent on making every conceivable mis- County, Ga. (and other “zero toler- British king. In 1775, the revolution- step a federal crime, and preserving vot- ance” jurisdictions), mere possession ary Provincial Congress of Massachu- ing rights and equal opportunity for all. of a weapon on school grounds war- setts adopted a seal that bore the im- The criminalization of ordinary rants juvenile court action, regardless age of a militiaman holding a sword in conduct has become one of the truly of the student’s knowledge, purpose one hand, a copy of the Magna Carta vexing problems of our times. Increas- or conduct. in the other. ingly, Americans engaged in peaceful, Last summer, Heritage brought America was established on productive enterprises find themselves together a bipartisan coalition of mem- a foundation of law that respects subject to criminal charges, trials and bers from the House Judiciary Crime our inalienable rights. Then as now, imprisonment. Retiree George Norris, Subcommittee to look into the issue of preserving rule of law is a never- for example, spent 17 months in a fed- overcriminalization. The first commit- ending challenge. That is why eral prison because he used the wrong tee hearing of any kind on that topic Heritage’s Leadership for America paperwork to document imported or- was held July 22. Campaign is committed to restoring chids, even though the flowers are legal Led by Reagan Distinguished Rule of Law to its traditional and to grow and to own. Fellow Edwin Meese and Senior legitimate functions. Compared to Norris, Miles Legal Research Fellow Brian Walsh, Throughout 2009, at both the Rankin got off easy. When the 12- Heritage’s Center for Legal and Judicial state and federal levels, Heritage ac- year-old showed his Boy Scout knife Studies developed topics for the hear- tively defended individual rights on to some friends at school, he was “only” ing and helped recruit the witnesses. multiple fronts. Areas of concentrated locked up for two days, placed under Following the hearing, Heritage video-

Heritage’s Charles Stimson, author of “Adult Time for Adult Crimes,” displays a misleading publication attacking life- without-parole sentences for juvenile offenders. The Aug. 17 seminar, hosted by Edwin Meese (far left), also featured attorney Daniel Horowitz and Paul Wallace, the chief of appeals for the Delaware Department of

Photo: Chas Geer Chas Photo: Justice.

Leadership for America The Heritage Foundation 15 Todd Gaziano, director of Heritage’s Center for Legal and Judicial Studies, hosts our annual “Scholars and Scribes” program in which leading constitutional scholars and journalists review the year’s most significant Supreme

Court rulings. Geer Chas Photo: taped some of the witnesses retelling how overcriminalization had blind- Defending the Right to Vote… sided them, turning their lives and and Have It Counted fortunes upside down. Those personal Many Americans take the right to vote for granted. But not the legal scholars testimonials are now posted on Heri- at The Heritage Foundation. They stand ever vigilant to defend each citizen’s tage’s popular overcriminalized.com access to the ballot box and assure that all lawful votes are counted. Web site. By putting a human face on In May, they were perplexed and troubled by the Justice Department’s this growing problem, they’ve helped abrupt decision to drop lawsuits against two members of the New Black Panther gain the attention of policymakers. Party charged with voter intimidation in the 2008 elections. Both eyewitness Our Legal Center also sponsors testimony and videotape confirmed the two, one of them waving a billy club, one of the largest and most influential had worn paramilitary uniforms and yelled racial epithets outside a Philadelphia Supreme Court moot court programs polling place. Neither defendant responded to the lawsuit, so the court in the country. In 2009, we hosted entered a default judgment against them. Why would Justice drop a case it had moot courts to help attorneys prepare essentially already won? their oral arguments for 14 Supreme Heritage’s Hans von Spakovsky, a former Federal Election Commissioner, Court cases. Heritage’s guest advo- pressed for answers. In journals and newspapers, he wrote repeatedly about the cates prevailed in almost all of the case. On Capitol Hill, Rep. Frank Wolf, R-Va., took up the cry, calling for House term’s significant decisions, including Judiciary Committee hearings. Ricci v. DeStefano. Though House leadership stonewalled the request for hearings, the Justice That landmark case was brought Department finally agreed to have its Office of Professional Responsibility launch by 18 firefighters from New Haven, an internal investigation into the dismissal of the case. Conn., who had earned the highest In a separate case, Heritage worked to protect the voting rights of those scores on a civil service exam, but serving in the military. When Rep. John McHugh, R-N.Y., resigned to take his been denied promotion because of post as Secretary of the Army, New York Gov. David Paterson slated the special their race. Reversing the decision of election for just 35 days later. Von Spakovsky called him on it. then-Appellate Court Judge Sonia “Absentee ballots requested by overseas military voters — including the Sotomayor, the Supreme Court de- valiant men and women of the 10th Mountain Division at Fort Drum who are cided the case based upon the plain now deployed in Iraq and Afghanistan — almost certainly won’t be received and requirements of the law, ruling 5-4 returned in time to count in the election,” he wrote in the New York Post. that New Haven had violated the Sensitized to the needs of military voters, New York elections officials Civil Rights Act. subsequently took extra efforts to assure their votes were counted. Later in the year, the Legal Center was a prominent participant in the

16 The Heritage Foundation 2009 Annual Report A Contentious Appointment

Supreme Court vacancies present presidents with some of the most consequential decisions they will ever make. When President Obama nominated Judge Sonia Sotomayor to replace Justice David Souter, Heritage’s Center for Legal and Judicial Studies moved quickly to frame the debate constructively. Senate Judiciary Committee members sought the expertise of our Legal Center staff, requesting that they identify important lines of inquiry for the confirmation hearings. Our analysts emphasized the need to evaluate Sotomayor according to her ability to recognize that a judge’s role is to interpret the law as written, regardless of personal preferences. Heritage also took a lead role in informing the public about Judge Sotomayor’s writings and speeches, analyzing her Second Circuit opinions and other documents in the public record to anticipate how her appointment would affect the judiciary. We created a special Web page featuring timely papers, newspaper commentaries and blog posts from Heritage scholars and allies, as well as key speeches and publications by Sotomayor herself. By highlighting the proper role of judges, Heritage helped focus the debate on a truly substantive issue. Ultimately, even Sotomayor publicly rejected the President’s theory that judges should rule based on their personal empathy. Instead, she professed a more traditional (i.e., conservative) view of the judicial role. Photo: iStock.com debate over the replacement for Justice Leaders in the Georgia General ing challenged as unconstitutional. David Souter. Heritage scholars ap- Assembly also lauded von Spakovsky’s But Stimson and Grossman argue peared repeatedly on CNN and FOX advice, saying it informed a new law convincingly that the punishment is News discussions and penned articles requiring proof of citizenship to vote. reasonable, constitutional, rare, and— for national publications. Thanks to assistance from Heritage, in those rare cases—fully appropriate. Throughout the year, Heritage elections in Georgia will now be less They examine the case studies often analyzed threats to voting rights and likely to produce results skewed by il- cited by opponents, and present the the sanctity of the ballot and developed legal aliens and other non-citizens. full facts of those cases—including recommendations on how to preserve Heritage legal experts Charles the most salient “details” conveniently them. By year’s end, leaders in two “Cully” Stimson and Andrew Grossman omitted in the other side’s retelling of states had credited Senior Legal Fellow produced a landmark report on juve- the crimes. Hans von Spakovsky with providing nile crime titled, Adult Time for Adult Their report turned out to be information that made action on vote Crimes: Life Without Parole for Juvenile extraordinarily timely. The U.S. Su- fraud legislation possible. Killers and Violent Teens. Following preme Court had just agreed to hear In Texas, von Spakovsky testified a 2005 Supreme Court decision, life two cases challenging the constitu- before the state Senate on proposed without parole is the maximum penalty tionality of life without parole for ju- voter identification laws. The lieutenant allowed for juvenile offenders, no matter venile offenders. Heritage’s work was governor hailed the testimony as highly how horrific their crimes. subsequently cited in multiple briefs persuasive. Now, even that penalty is be- to the court.

Leadership for America The Heritage Foundation 17 Fostering Freedom, Preserving Sovereignty

Should America strive to be a leading force for good in the world? Many on the Left seem to reject the notion that our nation is capable of that.

ather, they view America as a greedy despoiler, bullying smaller nations Rwith our military might and economic “imperialism,” imposing our Western values on foreign cultures. Others won’t go so far, yet believe there’s nothing really special about the American experiment. Certainly noth- ing that would suggest we have any business exercising world leadership. In France, President Obama was asked by a reporter “whether you subscribe, as many of your predecessors have, to the school of American exceptionalism that sees America as uniquely qualified to lead the world.” He replied, “I believe Geer Chas Photo: Sally McNamara, Heritage’s senior policy analyst in European affairs, moderates a discussion in American exceptionalism, just as I on the role of NATO in Afghanistan. The July program featured Army Gen. John Craddock, suspect that the Brits believe in British former Supreme Allied Commander Europe. exceptionalism and the Greeks believe in Greek exceptionalism.” So much for military power, our wealth or the size of was the moral root of America’s excep- American exceptionalism! our population. These blessings are all tionalism, the brilliant gem at her core But Heritage remains convinced secondary—the consequence of Ameri- that makes her “the last best hope of that America holds a special claim to ca’s primary virtue: freedom. Earth.” Generations of immigrants have be a world leader. Not because of our Lincoln understood that freedom understood this. The promise of liberty

Economic Freedom Advanced Globally, Despite Slowdown In January 2009, Heritage and The Wall Street Journal released the 15th annual “Index of Economic Freedom.” It found that economic freedom had continued its worldwide march forward during the preceding year. In all, 83 economies had shaken free of at least some of the chains—such as stifling regulation, excessive taxation, lawlessness, corruption or protectionism— that had restricted their progress toward prosperity. The 2009 Index expanded its coverage significantly, ranking a total of 179 economies—21 more than the previous year. The bad news: Only seven of those 179 economies scored well enough to be rated as having a “free” economy. “Free” and even “mostly free” economies do a much better job promoting human development, reducing poverty and protecting the environment. Year after year, the Index proves anew the many blessings bestowed by “the invisible hand” of the free marketplace.

18 The Heritage Foundation 2009 Annual Report has attracted countless millions to our the future of NATO. Featuring Army And Heritage pushed incessantly shores and continues to feed the aspira- Gen. John Craddock, former Supreme for reform of international organiza- tions of men and women throughout Allied Commander Europe, the ses- tions, often blowing the whistle on their the world today. sion drew more than 100 analysts and more egregious practices. Early on, we A nation, like an individual, cannot diplomats and aired worldwide on The urged the new administration not to abandon its virtues and expect to pre- Pentagon Channel. participate in the Durban II confer- serve them. A nation whose power and American interests in Asia were a ence on racism, a high-sounding confab wealth derive from its freedom must use constant focus as well. One highlight doomed to devolve (as had Durban I) that power and wealth to promote free- was “Asia 2009: The View from Capitol into a hateful orgy of Israel-bashing. dom, or risk losing all three. Hill.” Hosted by Heritage’s Asian Stud- Thankfully, President Obama heeded In their zeal to submerge America ies Center Director Walter Lohman, our advice and withheld American par- in collectives such as the United Na- this conference drew 135 Hill staffers, ticipation in this disgraceful affair. tions—international bureaucracies that journalists and diplomats. Another And throughout the year, Heritage embrace bloody dictatorships as eagerly high-profile Heritage event—a work- Vice President Kim Holmes penned as democracies—the Left is erasing shop on U.S.-India counterterrorism fortnightly “Big Ideas” columns for The America’s moral claim to leadership. cooperation—featured former U.S. Washington Times calling for new archi- That’s why American Leadership is a Homeland Security Secretary Michael tecture and a commitment to liberty as core element of our 10-year Leadership Chertoff and the former national secu- the unifying purpose for international for America campaign. rity adviser to the Indian prime minister. alliances and institutions. In 2009 Heritage continued to educate policymakers on the dangers of this trend and seek ways to abate it. On Looking At– and Beyond – Capitol Hill, our experts coordinated the United Nations efforts to establish a House Sovereignty Caucus. Launched in June, the Caucus U.S. taxpayers shower billions of dollars on the UN every year. Yet quickly made its presence felt in oppos- Washington’s efforts to improve the organization seldom get off the ing the Law of the Sea Treaty and the ground. What to do? Nuclear Test Ban Treaty. Noted The Interested parties found many practical and innovative answers to Washington Independent: that question in “ConUNdrum,” a groundbreaking book edited by Brett “[B]oth supporters and oppo- Schaefer, Heritage’s Jay Kingham Fellow in International Regulatory nents of the treaties said that skeptics Affairs. of international law and international “ConUNdrum” provides thoughtful analyses of the UN system’s agreements will have an outsized influ- failures and weaknesses and suggests many promising reforms. It ence in this debate.… all cited the same also outlines ways to go around the organization, when that’s the best handful of people as the ones able to option. turn opinion on treaties: [ John] Bolton, “We need to reshape U.S. engagement with Turtle Bay so that Frank Gaffney of the Center for Secu- the relationship better serves both American interests and the UN’s rity Policy, and fellows at the Heritage own stated purposes,” says Foundation and Competitive Enterprise Schaefer. “We should work Institute.” through the UN when it can We also continued to promote be effective, but be flexible expanding and strengthening NATO, enough to pursue alternative a critical alliance whose members have coalitions, alliances, and done most of the fighting in the war organizations when the UN on terror. Nile Gardiner, director of proves unable or unwilling to Heritage’s Thatcher Center, hosted act.” “NATO’s 60th Anniversary Summit: Featuring a foreword by for- A Critical Time for the Transatlantic mer UN Ambassador John Bol- Alliance,” a public event that explored ton, “ConUNdrum: The Limits the stresses within the alliance, the of the United Nations and the external challenges and how best to Search for Alternatives” was address them. A month later, Heritage published by Rowman & Little- European expert Sally McNamara field in September 2009. Blasko Andrew Photo: hosted another stellar event examining

Leadership for America The Heritage Foundation 19 Enterprise & Free Markets Defending the Virtue of Capitalism

Free markets came under the gun in 2009. Some of the weaponry, like Michael Moore’s film “Capitalism: A Love Story,” were just popguns. Still, all too many lawmakers were eager to join the firing line.

rogressive politicos turned out in the bill sought to eliminate secret ballots droves for the D.C. premiere of in union representation votes and force PMoore’s latest film—essentially a Bronx workers to join unions. cheer directed toward free enterprise. Heritage publications exposed the Sen. Tom Harkin and Reps. John true intent of the bill and how it would Conyers, Alan Grayson, Linda Sanchez, affect America’s working men and Elijah Cummings and Marcy Kaptur women. At one Heritage event, former strolled the red carpet and gushed over union organizer Rian Wathen explained Moore’s cinematic propaganda. how organizers use sophisticated—and Though the nation’s economic not so sophisticated—techniques to woes could be traced largely to federal manipulate or cow workers into signing

intrusion into the marketplace, the Left representation cards. Geer Chas Photo: depicted the recession as proof that Heritage also organized a labor At a Feb. 10 program co-hosted by “capitalism has failed.” Their answer: policy “boot camp” for more than 80 Heritage and the Club for Growth, William Subjugate free enterprise with even congressional staffers. A thank-you Beach, director of our Center for Data Analysis, highlights problems with the $787 more regulation, even more federal con- note from one senator’s legal counsel billion “stimulus” package. trol over financial markets and an even said: “I was surprised at how many greater reliance on government in direct speakers gave me good nuggets that Heritage analyses also highlighted production of goods and services. I hadn’t thought through before. It the folly of suggestions that Congress Congress and the Oval Office should help me prepare a better mes- should nationalize bankrupt auto com- moved quickly to assume powers virtu- sage for my boss.” By summer, opposi- panies and waste taxpayers’ money on ally inconceivable a year earlier. Wash- tion in the Senate forced liberal leaders the “Cash for Clunkers” scheme. Reason ington bought up General Motors and to sideline the bill. didn’t prevail on these issues on Capitol Chrysler, took over banks, and expanded TARP bailouts (with all the strings Public Debt Piles Up attached) well beyond what the law au- $12.5 trillion thorized. The federal government began President Obama’s FY 2010 budget called to dictate salaries to private industry for a huge hike in federal spending—a $12 trillion and pushed for much, much more. Like one-third increase—to $32,000 per seizing broad control of America’s health family—in just 10 years. Even with the and insurance sectors. And picking win- higher taxes proposed, it would more $9 trillion ners and losers in energy markets. And than double the national debt. taking over the Internet. Publicly Held National Debt, Rep. Barney Frank, D-Mass., Adjusted for Inflation $6 trillion summed it up neatly: “We are trying on every front to increase the role of gov- ernment in the regulatory area.” $3 trillion Meanwhile, Heritage was working $3.8 trillion $5.8 trillion on every front to protect free enterprise. One significant victory came with failure of Big Labor’s card-check bill. Cynically 1990 1995 2000 2005 2010 2015 2019 named The Employee Free Choice Act,

20 The Heritage Foundation 2009 Annual Report A Rising Tide of Red Tape n Federal Reserve System, Office of Thrift By the end of 2008, the Code of Federal Regulations Supervision, and National Credit Union ran to 157, 974 pages. And Washington’s regulators Administration—Regulations regarding unfair or kept piling on throughout 2009. deceptive acts or practices. Estimated cost: $191 Excessive red tape strangles innovation, million. productivity, consumer choice and cost-savings. Even n minor regulations, taken together, can exact great Securities and Exchange Commission— economic pain (Think: “death by a thousand cuts”). Regulations governing interactive data to improve But up to 90 percent of all regulatory costs can financial reporting. Estimated cost: $284 million. be traced to a relatively small number of actions— n National Highway Traffic Safety Administration— “major” rules that Regulations governing impose economic Average Fuel costs of at least $100 Economy Standards. million annually. Here Estimated cost: $2.92 are just 10 of the major billion. regulations imposed in 2009. n National Highway Traffic Safety Administration— n Department of Agriculture—Regulations governing Regulations governing Federal Motor Vehicle country-of-origin labeling of beef, pork, lamb, Safety Standards and phase-in reporting chicken, goat meat, wild and farm-raised fish and requirements. Estimated cost: $1.14 billion. shellfish, peanuts, pecans, ginseng, macadamia n Department of Homeland Security—Regulations nuts, etc. Estimated cost: $211.9 million. governing air cargo screening. Estimated cost: n Department of Health and Human Services— $190 million. Regulations governing modifications to the Health n Environmental Protection Agency—Regulations Insurance Portability and Accountability Act. governing “effluent limitations” guidelines and Estimated cost: $1.07 billion. standards. Estimated cost: $810 million. n Securities and Exchange Commission—Regulations n Department of Transportation—Regulations governing enhanced disclosure and a new prospec- governing pipeline safety. Estimated cost: $101 tus delivery option. Estimated cost: $149 million. million.

Hill. But our lucid explanations of the Heritage also warned against issues. Responding to lawmakers’ harm these programs would do made the continued expansion of TARP requests, he testified twice before perfect sense to more and more Ameri- as well as a new round of subsidies congressional committees in just the cans. National polls show that our to delinquent homeowners. Heritage first three months of the year. message is increasingly taking root in the expert David John published Even though liberals eventually had minds of taxpayers — and voters. numerous policy papers on these their way on TARP, we are encouraged by the longer view. Pollster Frank Luntz found that one reason so many voters moved right during 2009 was because they were “mad as hell” about the billions wasted on bailouts and economic “stimulus” programs. The message that Heritage spread throughout the year resonated strongly—not just among conservatives, but among increasingly disenchanted centrists.

Senior Policy Analyst James Sherk presents conservative labor policy recommendations at a January

Photo: Chas Geer Chas Photo: “boot camp” for congressional staff.

Leadership for America The Heritage Foundation 21 Virginia Walden Ford, executive director of D.C. Parents for School Choice, discusses her group’s fight to preserve school choice for their children and others. Photo: Andrew Blasko Andrew Photo: Saving Students from Failed Schools

Too many public schools still shortchange America’s children. Schools fail for many reasons.

n 2009, our education reform ini- The Florida Model was Jeb Bush, who championed these tiative focused on two of them: A decade of aggressive reform is paying types of reforms while governor of I1) The mistaken belief that neighbor- big dividends to Florida’s school chil- Florida. At session’s end, the consen- hood schools are best managed by dren. On the National Assessment of sus among attendees was that Geor- bureaucrats in Washington rather Educational Progress, Florida students gia is ripe for reforms modeled after than by parents, teachers and local far outpace the national average for Florida’s approach. administrators. improvement in reading and math. Mi- We plan to conduct additional 2) The misguided practice of allowing nority students have benefited the most. state education summits in 2010. school district administrators— Indeed, Florida’s Hispanic fourth grad- As 2009 ended, Heritage Senior rather than students’ parents—to ers now boast reading scores higher than Policy Analyst Daniel Lips, along with determine where their children will the average of all students in 15 states. two co-authors at the American Leg- go to school. What’s the secret to this success? islative Exchange Council, put final Throughout the year, Heritage For starters, there’s a commitment to set touches on a book that will give state worked to spread the good news about and maintain challenging standards, ex- lawmakers a complete blueprint for education reforms that really work, pand school choice options, hold public effective education reform. Not surpris- such as those recently instituted in schools and students accountable, and ingly, the blueprint draws heavily upon Florida. And we continued to articu- improve teacher quality. Florida’s successful formula. late the advantages of using competi- It’s a winning formula that Heri- tion—as provided by school choice— tage helped popularize throughout Vouchers in D.C. to improve education. When congres- 2009. A highlight of this effort was For the last three years, the District of sional liberals put Washington’s own October’s education summit in Atlan- Columbia has been a battleground for Opportunity Scholarship program on ta. Gov. Sonny Perdue introduced the school choice. Although the District’s the chopping block, the highly success- half-day conference, which attracted Opportunity Scholarship program for ful program became the national poster nearly 100 legislators, business leaders low-income children has achieved excel- child for school choice advocates. and journalists. The keynote speaker lent results, the voucher program has

22 The Heritage Foundation 2009 Annual Report Washington Post editorials from April 20 (left) and Aug. 28, 2009. been attacked incessantly by teachers a good education. Narrated by NPR on the road, giving voice to the next unions and their political cronies. commentator Juan Williams, the film generation that yearns for educational In February 2009, Congress passed features former D.C. Council member freedom and opportunity. a spending bill that effectively phased Kevin Chavous (D-Ward 7) and par- Meanwhile, Sen. Joe Lieberman out the voucher program. Heritage ent organizer Virginia Walden Ford. (I-Conn.) and Rep. John Boehner (R- quickly published a stream of research By year’s end “Let Me Rise” had Ohio) introduced legislation to reautho- papers documenting the effectiveness of been given special screenings to leaders rize the scholarship program so more the D.C. program and the devastating in three states and Washington, D.C. children can have the chance to choose. effect its cancellation would have on the At a black state legislators’ conference Heritage will remain on the front lines students and families involved. in Georgia, it got a standing ovation. promoting parental choice in Washing- Our research sparked two sup- We will continue to take this show ton as a model for the nation. portive editorials in The Washington Post urging continuation of the program. Heritage experts spread word of their findings in newspaper commentaries and numerous radio and television interviews. Just as importantly, Heritage made it pos- Washington, D.C., students sible for some of the 1,700 scholarship protest efforts to children to make their voices heard. eliminate funding “Let Me Rise,” a 30-minute film for the District’s produced by Heritage and available at Opportunity VoicesofSchoolChoice.org, featured the Scholarship program, a scene personal stories of families fighting to captured by keep the scholarships that allow their Heritage’s “Let children to go to safe schools and get Me Rise.”

Leadership for America The Heritage Foundation 23 Restoring Reason to Fiscal Policy

Absent fundamental reform, the Big Three federal entitlement programs—Social Security, Medicare and Medicaid—will consume 30 percent of the nation’s economy by 2035.

t would be a fiscal tsunami, washing younger audiences. But Heritage went away funds for other vital functions much further to spread our message Isuch as national defense and swamping of fiscal responsibility to the younger the next generation in huge tax increases. generation. We also spoke at events or- Heritage continued to sound the ganized in conjunction with the Youth alarm over this untenable situation, tak- Entitlements Summit, a coalition of ing our Fiscal Wake-Up Tour on the youth organizations working for entitle- road for the fifth straight year. Joined by ment reform. And Vice President of scholars from the Brookings Institution Domestic Policy Stuart Butler spoke and The Concord Coalition, Heritage fis- about entitlements at the national meet- cal experts barnstormed through a dozen ing of the American Democracy Project, cities, including: Denver; Oklahoma a network of 220 colleges and universi- City; Kennebunkport, Maine; Fairfax, ties fostering informed civic engagement Va.; Durango, Colo.; Orlando, and San among young adults.

Antonio. At every stop along the way, Despite all the road work, Heri- Geer Chas Photo: we met with business leaders, academics, tage kept an eye constantly trained on Rep. Paul Ryan, R-Wis., previews his elected officials, media representatives, Congress—an ever-flowing fountain “Roadmap for America’s Future: 2.0,” a legislative proposal addressing unsustainable civic leaders and students to warn of the of tax-hike proposals. Curtis Dubay, entitlements, a crushing tax code and out-of- dangers that lie ahead, should Congress a tax expert in our Roe Institute for control discretionary spending. continue to ignore the problem. Economic Policy Studies, unleashed a Three of the tour stops—at Bos- barrage of papers criticizing attempts tax to a more “progressive” income tax, ton College, Princeton University and to gouge taxpayers further. The threats from a surtax on “the rich” to restoration Rice University—were geared to reach were many, ranging from a value-added of the Death Tax, from a “use tax” on financial transactions to higher taxes on dividends and capital gains. “Mandatory” Spending Soars At the height of the “stimulus” de- Nearly 30% in 2009 bate, we led a nonpartisan coalition call- Between 1965 and 2008, “mandatory” federal spending—driven primarily by ing for sanity… and reform of the entire “Mandatory”Social Security, Federal Medicare Spending and Medicaid—more Soars Nearly than 30% quadrupled, in 2009 to $13,818 budget process. Before a standing- Betweenper household. 1965 and 2008, In “mandatory” 2009, spending federal spending—driven for the Troubled primarily byAsset Social ReliefSecurity, ProgramMedicare and (TARP) room-only crowd in the Capitol, Butler Medicaid—more than quadrupled, to $13,818 per household. In 2009, spending for the Troubled Asset Relief Programand other (TARP) “mandatory and other “mandatory stabilization” stabilization” effortsefforts severely severely exacerbated exacerbated the problem. the problem. joined experts from the Progressive Policy Institute, The Concord Coalition, Mandatory Spending per Household in Inflation-Adjusted Dollars (2009) $17,861 and The Committee for a Responsible $20,000 Federal Budget—as well as three House $13,818 members—to explain how the current 15,000 process is hopelessly biased in favor of higher spending and higher taxes and what Congress must do to fix it. 10,000 And as Rep. Paul Ryan, R-Wis., began crafting his landmark “Roadmap” $3,049 5,000 legislation to fix entitlements and reform the tax code, he turned to Heritage analysts for recommendations and so- 0 phisticated analysis of all its major policy 1965 1970 1975 1980 1985 1990 1995 2000 2005 2009 prescriptions.

24 The Heritage Foundation 2009 Annual Report In September Heritage released Addressing Human Needs a Special Report by Robert Rector, Katherine Bradley, and Rachel Shef- Through Civil Society field detailing how President Obama’s budget would spend $10.3 trillion Americans instinctively rush to relieve human need. Witness on welfare programs in the next 10 their response to earthquakes and hurricanes. years—a massive redistribution to ac- complish the Left’s vision. The budget, they found, would expand almost all ut to be effective, compassionate in Need, a DVD complete with study of more than 70 different programs for responses must begin with ac- guide for use in small groups affiliated low-income people, increasing funding Bcurate diagnoses. That’s where the Left with churches and colleges. and further swelling the ranks of those misfires. They diagnose the problem Heritage also strove to help social dependent on government. In 2010 of persistent poverty and need in the and economic conservatives appreciate alone, they noted, federal and state United States as systemic and primar- how their beliefs are often mutually rein- spending on welfare would exceed the ily material. According to their vision, forcing. We published a series of book- cost of the entire war in Iraq. a just society — a good society — will lets titled The Economy Hits Home. Each The DeVos Center also mounted distribute advantages and disadvantages booklet presents Heritage economic a strong defense of traditional mar- equally among all members of society. research that enlightens issues of concern riage—one that resonated deeply in Government, they say, should use all its to social and religious conservatives. the public debate. Visiting Fellow power to make sure that happens. We also published “Indivisible.” A Thomas Messner published a seminal Heritage rejects that view. We masterpiece of conservative “fusion,” it essay explaining how proposed “redefi- believe that a just society is not some- presents essays by top social conserva- nitions” of marriage threaten religious thing to be imposed on the people. Rather, it should be allowed to grow out of the virtues of our Judeo-Chris- tian heritage, which values highly the institutions of civil society. Families are essential to nurturing these virtues in “Seek Social individuals. And the institutions of Justice,” a six- religion and family best flourish under lesson DVD and the principles of limited government, study guide, not intrusive and coercive government. presents a conservative Under the direction of Jennifer approach to Marshall, Heritage’s Richard and understanding and Helen DeVos Center for Religion addressing social and Civil Society made special efforts problems such as throughout 2009 to convey these les- poverty, addiction and homelessness. sons to younger audiences motivated by religious and moral convictions. tives on economic issues and top eco- liberty. He followed up with a paper We hosted conferences at Covenant nomic conservatives writing on social documenting how opponents of tradi- College in Georgia and Houston Baptist issues. Deeply impressed, editors of tional marriage had used harassment, University titled, “Seek the Welfare of the the McClatchy-Tribune news syndicate intimidation, physical violence and City: Effective Responses to Poverty and requested an eight-part series of com- economic pressure to punish citizens Human Need.” This series of campus mentaries based on the essays. who disagree with them. This paper events challenges the Left’s government- In October Heritage hosted the garnered wide media attention and centered approaches to social breakdown, third annual conference on Religious played a central role in court pleadings exploring how free markets, limited Practice in America. Supported by a that led to the 5-4 U.S. Supreme Court government, and civil society can respond grant from the John Templeton Foun- decision protecting the privacy rights more effectively to such problems. dation, the 2009 conference focused on of pro-marriage witnesses in Perry v. We followed up by producing “Religious Practice and the Family” and Schwarzenegger, the landmark federal Seek Social Justice: Transforming Lives featured 14 top scholars in the field. marriage case in the 9th Circuit.

Leadership for America The Heritage Foundation 25 Building a Better Future on Eternal Truths

As 2009 wore on, more and more Americans told pollsters our nation seemed to be on the wrong track. They sensed the problem had something to do with deviance from America’s founding principles.

Principles on dozens of local and national radio programs and serving as Glenn Beck’s “house expert” on the topic. Essays drawn from the book ran as a three-part series in the McClatchy- Tribune newspaper syndicate; another appeared in National Review. Heritage commemorated the Abraham Lincoln Bicentennial with “Lincoln vs. Obama: Freedom vs. The Good,” a lecture by Hoover Institu- tion’s Shelby Steele. The audience included our Spring 2009 class of Heritage interns. Throughout the year, Heritage interns benefited from a series of First Principles seminars and field trips organized by our American Stud-

Photo: Andrew Blasko Andrew Photo: ies program. “We Still Hold These Truths,” a best-seller by Heritage’s Matthew Spalding, explores the The James Madison Fellows principles that secure our freedom and define us as Americans. Program—an educational program for senior congressional staffers jointly June survey by CNN/Opinion Re- Kenneth Simon Center for American sponsored by Heritage, The Federal- search Corp. found that 69 percent Studies, discusses 10 core principles ist Society and Hillsdale College— Aof Americans thought the signers of the that define us as a people and anchor continued to thrive. Heritage speakers Declaration of Independence would be us as a free nation. It documents how included Spalding, Vice President of disappointed in our country today. the Progressive Movement of the early Government Relations Michael Franc Doubtless they’re right. But Heri- 1900s rejected the Founders’ wisdom and Distinguished Fellow Ernest Is- tage was working hard to change that, and put the country on the path to took. Joining them were intellectual and to steer America back on its course increasingly centralized government. luminaries such as Hillsdale College of greatness. That’s the overarching Most importantly, it presents a strat- President Larry Arnn and Leonard Leo purpose of our First Principles initia- egy for reclaiming the American vi- of The Federalist Society. tive—the keystone of our Leadership sion of limited government, personal The Madison Fellows Program for America campaign. And in 2009, responsibility, civil society, and liberty graduated a total of 98 senior congres- we made great progress in reviving un- and justice for all. sional staffers in 2009. Our Congres- derstanding and respect for the genius The book—and its themes— sional Fellows Program for junior of the Founding Fathers. proved hugely popular. “We Still Hold Hill staff graduated 34. It all adds up One highlight of the year was These Truths” debuted at No. 2 on to significant progress in giving the publication of Dr. Matthew Spalding’s The Washington Post’s list of nonfiction general public—and the next genera- “We Still Hold These Truths: Redis- best-sellers. Within weeks, the pub- tion of leaders—a solid grounding in covering Our Principles, Reclaiming lisher ordered a second printing. the eternal truths and constitutional Our Future.” In this seminal book, Spalding himself became some- principles that remain the source of Spalding, the director of Heritage’s B. what of a celebrity, discussing First our liberty.

26 The Heritage Foundation 2009 Annual Report Heritage Fellows Distinguished Leadership in the Battle of Ideas

eritage is home and NewsMax.com, to scores of the hosted “The Heritage Hnation’s top policy Foundation Live” experts. Six are hon- on XM Radio, and ored as Distinguished helped “translate” Fellows in recognition Heritage research into of their profound terms best calculated scholarship, range of to make his former experience, and height colleagues sit up and of achievement. take notice.

Elaine Chao—The Edwin Meese III— U.S. Secretary of La- Our Ronald Reagan bor under President Distinguished Fel- George W. Bush, Ms. low in Public Policy Chao enlightened works to preserve the civic debate on job cre- legacy of freedom ation and labor issues left by the president throughout 2009 with he served as White insightful commentar- Anderson Spencer House Counselor ies in such publications Distinguished Fellows (from left) Jim Talent, Ernest Istook, Elaine Chao, Edwin and, then, Attorney Meese III and Lee Edwards as The Wall Street Jour- General. In 2009, the nal, The Washington Post and Chicago Tribune. Alliance Defense Fund honored his “steadfast devotion to … the responsible philosophy of jurisprudence envisioned by Lee Edwards—A leading historian of the conservative our Founding Fathers” and established the Edwin Meese III movement, Dr. Edwards completed his 20th book: a biogra- Originalism and Religious Liberty Award. phy of William F. Buckley, Jr. As Chairman of the Victims of Communism Memorial Foundation, he also orchestrated Jim Talent— In congressional testimony and articles for de- the June launch of the online Global Museum on Commu- fense journals and policy magazines, this veteran of both House nism (globalmuseumoncommunism.org). and Senate Armed Services Committees pressed continuously for a stronger defense. Mr. Talent also served as Vice Chairman Ernest Istook—A self-described “recovering congressman,” of the national Commission on the Prevention of Weapons of Mr. Istook penned weekly commentaries for Human Events Mass Destruction Proliferation and Terrorism.

The Named Fellows of Heritage In 2009, Heritage donors funded 13 fellowships to Jay Kingham Fellow in Herbert and Joyce Morgan Margaret Thatcher Senior promote concentrated study of issues vital to restoring International Regulatory Senior Research Fellow Research Fellow constitutional principles. Affairs Ronald D. Utt, Ph.D. Ted R. Bromund, Ph.D. Brett D. Schaefer Bradley Fellow in Grover M. Hermann Fellow Ronald Reagan Norman B. Ture Senior Labor Policy in Federal Budgetary F.M. Kirby Research Fellow Distinguished Fellow in Fellow in the Economics James Sherk Affairs in National Security Policy Public Policy of Fiscal Policy Brian M. Riedl Baker Spring Edwin Meese III J.D. Foster, Ph.D. Marilyn and Fred Guarda- bassi Fellow in Media and Chung Ju-Yung Fellow for Bernard and Barbara William E. Simon Fellow in Jay Van Andel Senior Public Policy Studies Policy Studies Lomas Fellow Religion and a Free Society Analyst in Trade Policy Kenneth McIntyre Peter Brookes Steven Groves Ryan Messmore Daniella Markheim

Leadership for America The Heritage Foundation 27 Membership Growing the Legions of Principled Conservatives

Many words can describe Heritage members—conservative, tional total to 12. These committees hosted 44 events in 2009, reaching loyal, generous, committed, patriotic…. But in 2009, only one nearly 15,000 people. Featured speak- word could describe Heritage membership: booming. ers included Fred Barnes, Sean Han- nity, Ed Meese, Stephen Moore and Karl Rove. s they turned against Washing- ingly eager to join the conservative Heritage continued to reach out ton’s liberal agenda, more and cause, they’re extraordinarily generous to younger conservatives through our Amore Americans turned to Heritage. in supporting it. Contributions to Young President’s Club, open to the Our membership rolls leaped to Heritage reached a record $72 million under-40 crowd. YPC welcomed 626 582,000, a 45 percent increase in one in 2009, a 14 percent increase over the new members, bringing total YPC year. That’s more than 15,000 new previous year which, itself, had set a membership to nearly 1,000. We also members every month. Heritage has new record. mentored 168 young people in our in- long enjoyed more broad-based sup- As Heritage grew, so we contin- ternship program. These efforts reflect port than any other think tank. In ued to expand activities at the local our commitment to cultivate the next 2009 we left them in the dust as we level. We added three new Commu- generation of conservative leaders. accelerated toward our goal of 1 mil- nity Committees—in Naples, Fla., Membership wasn’t the only area lion members by 2017. Southeast Michigan, and the San experiencing rapid growth. Ameri- Americans are not only increas- Francisco Bay area—bringing the na- cans hungry for cutting-edge research

Thank You for Your Leadership The Heritage Foundation is thrilled that more than 655,000 members have supported the Leadership for America campaign. Between the launch of the campaign in January 2007 and the end of 2009, we have received gifts, pledges and commitments totaling more than $259,412,000. We’d like to take this opportunity to especially thank those donors who have made particularly generous contributions and commitments totaling $1 million or more, including:

Douglas and Sarah Allison John C. Hagan III, M.D. Mr. Richard M. Scaife Cloyce K. and Barbara J. Avey Henry E. Haller Jr. Sarah Scaife Foundation Constance Schifflin Blum Howard Charitable Foundation Greg Sheehan Mr. and Mrs. Wayne F. Brady Earl and Ruth Hyde Dr. Jeffrey B. Shellan David and Patricia Caldwell Mr. and Mrs. Jerome Johnson Lenore J. Stein David L. Coffey Claude R. Lambe Charitable Joseph D. Sullivan Foundation Shelby Cullom Davis Foundation Mr. and Mrs. Brian S. Tracy James P. and Danielle M. Lister The Richard and Helen DeVos Dr. and Mrs. Leo G. Watson Foundation Mr. and Mrs. Robert Mair Lillian S. Wells Foundation Mr. and Mrs. Rick Gaby Samuel Roberts Noble Foundation, Inc. Mrs. Marion G. Wells Mr. and Mrs. William Grewcock Joseph Prestele Five members have asked to Norman G. and Phyllis M. Gunther Mr. and Mrs. Thomas A. Saunders III remain anonymous.

28 The Heritage Foundation 2009 Annual Report and conservative solutions made our online properties hotter than ever: n Our principal Web site, heritage. COMMUNITY COMMITTEES FOR HERITAGE org, logged a total of 9,316,377 unique visitors during the year, a 22 percent increase over 2008. n Our for-members-only site, MyHeritage.org, logged 1,037,919 visitors, nearly dou- bling the previous year’s total. n Subscriptions to Morning Bell, our daily wake-up e-mail for conservatives, grew to 140,000, a more than threefold increase. n Our roster of Facebook “friends” soared from a few thousand to over 100,000, and our Twitter followers numbered 35,000. No other think tank comes close. In January we launched AskHeritage. org, a talk-radio campaign to reach mass audiences through the Rush Lim- baugh and Sean Hannity radio shows. This outreach effort alone attracted Atlanta Omaha more than 40,000 new members. Jan and Ernest Taylor, Chairmen Mary Jo Thielen, Chairman We’re thankful we’ve been able to Vivian DuBose, Honorary Chairman Berniece and Bill Grewcock, reach more Americans and enroll so Barb Van Andel-Gaby and Rick Gaby, Honorary Chairmen many new members. But, ultimately, Honorary Chairmen our Leadership for America campaign San Francisco Bay isn’t about numbers or dollars: It’s Chicago Paul Wick, Chairman about results. Steve Barney, Chairman Jerry Hume, Honorary Chairman Americans aren’t flocking to Heri- Mike Keiser, Honorary Chairman Ambassador Howard Leach, tage for companionship. They join be- Bob Stuart, Honorary Chairman Honorary Chairman cause they are committed to America’s Nersi Nazari, Honorary Chairman Colorado founding principles, and they are deeply Michael Jude, Chairman concerned about the determined effort Southeast Michigan Curt Grina, Honorary Chairman to fundamentally transform this country Dulce Fuller, Chairman into something the Founding Fathers Dallas/Fort Worth Doug and Sarah Allison, never intended—a collectivist state. Danny Wettreich, Chairman Honorary Chairmen We know that you trust Heritage to represent your beliefs faithfully, Minneapolis/St. Paul Southern California and we take that as our highest duty. Darryle Owens, Chairman Chris and Kathy Taylor, Chairmen Though politicians and political par- Bob Ulrich, Honorary Chairman Bob Cook, Honorary Chairman ties may compromise their principles Brian Tracy, Honorary Chairman Naples out of expedience, you can be sure Kermit Sutton, Chairman that The Heritage Foundation will Tucson Jack Donahue, Honorary Chairman remain true to conservative ideals. Ferdinand von Galen, Chairman Jim Click, Honorary Chairman If you plan to be in Washington, New York Area please call our membership office at Harold Siegel, Chairman (800) 546-2843. We’d like to meet you, Midge Decter, Honorary Chairman show you around our headquarters and Steve Forbes, Honorary Chairman thank you personally for all you do to Tom Saunders, Honorary Chairman make Heritage the leading conservative organization in America.

Leadership for America The Heritage Foundation 29 2009 Heritage Foundation founders Chairman’s Circle Founders Gleason Family Foundation Dian Graves Owen Foundation The Richard and Helen DeVos Amway Hanwha Group Mr. and Mrs. Robert V. Pennington Foundation Mr. and Mrs. William L. Amos, Jr. The Grover Hermann Foundation The Robert S. & Star Pepper Howard Charitable Foundation The Armstrong Foundation The William and Flora Hewlett Foundation Inc. Mr. Richard M. Scaife Barney Family Foundation Foundation Mr. and Mrs. Dick J. Randall The Lynde and Harry Bradley Jamestown Foundation The Roe Foundation Trustees’ Circle Foundation Mr. David A. Jones Searle Freedom Trust Mr. and Mrs. Rick Gaby Mr. and Mrs. Walter P. Buckthal Kern Family Foundation Dr. Jeffrey B. Shellan Mr. and Mrs. William Grewcock Castle Rock Foundation F.M. Kirby Foundation B.K. Simon Family Foundation Claude R. Lambe Charitable Mr. and Mrs. Jack E. Caveney Mr. Lewis E. Lehrman William E. Simon Foundation Foundation The CHEAR Foundation Mr. and Mrs. James Lister Mr. Paul E. Singer Mr. and Mrs. Thomas A. Saunders III Mr. and Mrs. Thomas W. Colbert, Sr. Mrs. Joe E. Lonning Mr. Larry H. Smead Sarah Scaife Foundation Mr. and Mrs. Leo Cook Mr. and Mrs. George L. Mayer Stuart Family Foundation Lillian S. Wells Foundation The Deramus Foundation The Morgan Family Trust Ms. Polly T. Taplin Donahue Family Foundation, Inc. M. J. Murdock Charitable Trust Mrs. Marion G. Wells Mr. B. E. Faulkner The Frederick and Julia Nonneman Six Founders have asked to Mr. John W. Galbraith Foundation remain anonymous.

Heritage Legacy Society The Heritage Foundation thanks the following Heritage Legacy Society members who made commitments in 2009. We are grateful for their leadership in creating a better America and leaving a legacy for freedom for future generations. The Heritage Legacy Society, whose members have made commitments through their estate or other planned gifts, is co-chaired by Rae and Belden Bell of Marshall, Va., and Marion Wells of Ft. Lauderdale, Fla.

Ms. Hazel S. Adams Mr. David E. Grigg Mrs. Billie Pirnie Mr. Lowell Steusloff Mr. Marshall D. Ward Mr. and Mrs. Charles H. Adler Mr. Leo G. Graham Mr. and Mrs. James Plute Mr. and Mrs. Ewald J.H. Mr. William E. Ward Mr. Philip M. Arnot Mr. and Mrs. John Haesler Mr. and Mrs. Clifford E. Quarles Stechholz Dr. and Mrs. Leo G. Watson Mr. and Mrs. Cloyce K. Avey Dr. and Mrs. Herbert R. Hahn Mr. Dan I. Raymond Mr. and Mrs. Allen Stonesifer Mr. Robert E. Weiss Mr. Eugene W. Ball Mrs. Margaret E. Halleman Mrs. Irene Reindl Mr. and Mrs. Louis Storm Mr. and Mrs. James E. White Mr. Todd P. Barabas Mr. Henry E. Haller Mr. Sheldon E. Sacks Ms. Betty Jane Strong Mr. and Mrs. Verne Willaman Mrs. Joan R. Bean Ms. Ruth Haney Mr. Steven M. Sass Mr. and Mrs. William A. Strong Ms. Mary Alice Willcockson Mr. and Mrs. Robert O. Beeson Dr. William M. Hang Mrs. Mary C. Schaaf Mr. Joseph D. Sullivan Cdr. Russell F. Wilson, Ms. Nellie Bowen Mr. Thomas F. Hodgman, Sr. Mr. Greg Sheehan Mr. Stuart Suss USN (Ret.) Mr. and Mrs. Tom Brady Mrs. Mary Jane Hooton Dr. Jeffrey B. Shellan Mr. Joseph R. Swierz Dr. and Mrs. Paul W. Wittmer Mr. and Mrs. Wayne F. Brady Mr. and Mrs. Brockett Hudson Ms. Pamela Shubert Mr. and Mrs. Oliver Transue Ms. Maria Woodward Mr. Roger A. Brown Mr. Louis Hunt Mr. Robert Sloane Mr. and Mrs. Bruce Tyndall Mr. Michael D. Zagnacky Ms. Constance Schifflin Blum Mrs. Ruth Hyde Mr. Jack D. Solomon Mr. John C. Van Hollen Mr. and Mrs. Roger Ziemer Mr. George Blumel Mr. Arnold H. Johnson Mr. Vernon Spitaleri 22 Heritage Legacy Society members wish to remain Anonymous Mr. and Mrs. Schuyler L. Brooks Mr. and Mrs. Jerome Johnson Mr. and Mrs. David Brown Mr. Lawrence F. Johnston Mr. Neil W. Butler Mr. and Mrs. John Kammerer Ms. Ann Caverly Mr. Marvin R. Kornegger With gratitude, we honor the memory of those Heritage Legacy Society members Mr. and Mrs. John Corson Mr. George W. Kovatch and Mr. whose gifts we received in 2009: Mr. Harry Dawley J. Robert Wiskotzil Mr. Gary L. Dawson Mr. John S. Krystoff Mr. George Aaron Ms. Doris Hales Mr. Chester J. Przyjemski Mr. and Mrs. James J. Dawson, Jr. Mr. and Mrs. Frederick W. Laver Mr. George T. Adair Mr. Paul W. Hastings Mrs. Lois B. Punshon Mr. Darrell Dobresk Dr. Dennis R. Lebbin Mr. Robert W. Albach Mrs. Lucile Hendricks Mr. and Mrs. Clifford W. Mr. and Mrs. Harold Dodd Mr. Ed Ligon, Jr. Mr. Vincent Alessi Mrs. Sara C. Holzman Richards Mr. and Mrs. Milton C. Mr. and Mrs. James Lister Mrs. Lenore C. Anderson Mr. and Mrs. Thomas J. Krausz Mrs. Helen R. Richman Dumeyer Mr. William R. Machgan Mrs. Roberta G. Axford Mr. Ross Linsenmier Mrs. Mary Ann Rosar Dr. and Mrs. John P. Eberts Mr. and Mrs. Gilbert Marchand Mrs. Gertrude Barnett Mr. Hoyt M. Long Mrs. Cordelia G. Sansone Mr. and Mrs. Wendell Embury Martino Family Trust Mrs. Ruth M. Besemer Mr. James Mac Kinnon Mr. Ed C. Schreiber Capt. Robert C. Evans, Ms. Joyce L. McMahon Mr. T.F.A. Bibby Dr. Walter Marcyan Mr. Martin J. Schwager USN (Ret.) Mr. and Mrs. Josh McQueen Mr. T. Nash Broaddus Mr. Raymond E. McGowan Mrs. Wilbert P. Skirball Robert M. Farr and Gudrun Ms. Sandra Monroe Mr. David Brown Mr. W.K. McNeilly Mrs. Adam Sluis Bauer-Farr Dr. Andrew L. Morgan Ms. Patricia Cannon Mrs. Violet L. Miller Mr. William H. Smith Mr. Wilfred Foreman Dr. and Mrs. W. Munsey Mrs. Erma Christensen Mr. Elmer C. Moore Mr. Chester G. Sorflaten Mr. Blair L. Fortner Mr. and Mrs. Robson S. Mr. Ellsworth H. Swift Mrs. Norma B. Franzen Newbold Miss Patricia Dickerman Mr. Norman P. Nichols Lt. Col. William R. Vivian Mr. T. Randy Gillette Mr. and Mrs. Don Nores Lt. Col. Lee D. Eisenhart Mrs. Ann Patton Mr. Charles R. Walgreen, Jr. Mr. Michael E. Giobbe, Jr. Mr. Terrence J. O’Rourke Mr. R.M. Freedman Mr. and Mrs. Gerald Pearsall Mr. Marvin Goehring Mr. Gordon L. Overbey Mr. and Mrs. James W. Frevert Mr. and Mrs. Thomas Plant Ms. Jane Hutzler Wolf Mr. John D. Gottlick Mr. Jack Perrin Mr. W. Leeds Frye Mr. John H. Pollock

30 The Heritage Foundation 2009 Annual Report 2009 Financial Statements

STATEMENT OF FINANCIAL POSITION* STATEMENT OF ACTIVITIES* As of December 31, 2009 Year ended December 31, 2009

ASSETS: OPERATING REVENUE Cash & cash equivalents $ 7,949,281 Contributions: Receivables 11,571,118 Individuals $ 52,479,061 Prepayments 987,650 Foundations 11,151,800 Contributed stock 19,547 Corporations 1,967,965 Total current assets 20,527,596 Total contributions 65,598,826

Investments 109,866,744 Investment withdrawal 3,750,000 Receivables, net 5,160,373 Program revenue 720,273 Plant, property & equipment, net 47,191,877 Other income 1,554,304 Other assets 389,844 Total other income 6,024,577 Total long-term assets 162,608,838 TOTAL OPERATING REVENUE 71,623,403 TOTAL ASSETS $ 183,136,434 OPERATING EXPENSES LIABILITIES & NET ASSETS: Program expense: Accounts payable & accrued expenses $ 8,381,758 Research 23,977,180 Notes payable 203,333 Education 14,870,514 Total current liabilities 8,585,091 Media & government relations 14,779,549 Total program expense 53,627,243

Notes payable 3,798,074 Fundraising 13,507,304 Deferred obligations & planned gifts 14,760,278 Management & general 1,908,138 Total long-term liabilities 18,558,352 Total administrative expense 15,415,442

TOTAL LIABILITIES 27,143,443 TOTAL OPERATING EXPENSES 69,042,685

Unrestricted net assets: OPERATING NET GAIN 2,580,718 Board designated 89,589,611 NON-OPERATING ACTIVITIES Undesignated 44,292,023 Temporarily restricted net assets 20,911,357 Change in temporarily restricted net assets 3,657,152 Permanently restricted net assets 1,200,000 Contributions-designated 4,152,464 Total net assets 155,992,991 Investment gain 16,136,519 Investment withdrawal ( 3,750,000) TOTAL LIABILITIES & NET ASSETS $ 183,136,434 TOTAL NON-OPERATING ACTIVITIES 20,196,135 INCREASE IN NET ASSETS 22,776,853

NET ASSETS-Beginning of year 133,216,138 2009 Operating Revenue NET ASSETS-End of year $ 155,992,991 Program Revenue & Other Income 2009 Operating Expense 8% Management & General Fundraising 3% 19%

Contributions Programs 92% 78%

*Preliminary results. Audited financial statements will be available on or after May 1, 2010.

Leadership for America The Heritage Foundation 31 2009 HERITAGE FOUNDATION ASSOCIATES Premier Associates Mr. and Mrs. Robert M. Gordon Mr. and Mrs. J. Edward Banning Mr. Kenneth D. Duggin Aequus Institute Mr. and Mrs. Clay W. Hamlin III Mr. Peter Barrett Earhart Foundation Ms. Betty A. Anderlik Mr. and Mrs. Jerry L. Hayden Mr. and Mrs. A. J. Bartoletto Dr. and Mrs. John P. Eberts Mr. Caesar A. Arredondo The Herbold Foundation Mr. and Mrs. Ron Baukol El Pomar Foundation (Colorado only) Banbury Fund Mr. Charles H. Hoeflich Bay Branch Foundation Eli Lilly and Company Foundation Mr. and Mrs. James Bartels IntercontinentalExchange, Inc. Bell Charitable Foundation Mr. Robert W. Ellis The Boeing Company International Commerce Mr. and Mrs. Bruce P. Bengtson Mr. Robert G. Engman Mr. and Mrs. J. Bayard Boyle, Jr. Development Corporation Mr. George F. Bennett Mr. and Mrs. David L. Erickson Mr. and Mrs. William S. Edgerly Issa Family Foundation Benwood Foundation Mr. Jerry Erwin Evenstad Family Foundation Mr. and Mrs. Loren Jahn Mr. Al Bergold Mr. and Mrs. Marshall Evans ExxonMobil Mr. Michael Jude Bialkin Family Foundation, Inc. Mr. and Mrs. Robert J. Fales Gardner Grout Foundation The Karol Fund Mr. Mike Boylan Dr. and Mrs. Edwin J. Feulner Google, Inc. Walter & Olivia Kiebach Charitable C. H. Boyle Foundation Fieldstead and Company Mr. and Mrs. John N. Hanson Foundation Trust Mr. and Mrs. Bruce H. Branyan Mrs. Sara B. Fleming The Holman Foundation, Inc. The Fred A. Lennon Charitable Trust Ambassador Stephen F. Brauer William Howard Flowers, Jr. Mr. and Mrs. Michael L. Keiser Mr. Leonard Litwin Mr. and Mrs. Theodore Brickman Foundation, Inc. Mr. and Mrs. Robert H. Kellen Mr. and Mrs. Robert W. Mair Ms. Gretchen Brooks Foulke Foundation Mr. George W. Kovatch and Mr. J. Mrs. Suzanne McDonald Mrs. Carole B. Brown Mr. John C. Foxley Robert Wiskotzil Mr. and Mrs. Thomas L. McGrath Mr. and Mrs. Craig R. Brown Mrs. Norma B. Franzen Messengers of Healing Winds R. K. Mellon Family Foundation Dr. and Mrs. David R. Brown Mr. and Mrs. Philip M. Friedmann Foundation Mr. and Mrs. Michael T. Monahan Ms. Emma Carter Browning Mrs. Dulce M. Fuller Mr. and Mrs. Joe P. Murphy Mr. Sam Moore Mr. Daniel W. Bunn Ms. Carol Fulton Mr. Greg Murray The Morris Foundation Mr. John E. Burns Mr. Stanley E. Fulton Stiles Nicholson Foundation Charles Maxfield and Gloria F. Parrish Ms. Lynn Caldwell Mr. and Mrs. L. J. Futchik The Dr. P. Phillips Foundation Foundation Mr. Mark A. Caldwell Miss Sandra E. Gale Mrs. Billie Pirnie Mr. and Mrs. James A. Patterson Mr. James J. Callan Mr. and Mrs. J. James Gallagher John William Pope Foundation Lovett & Ruth Peters Foundation Mr. and Mrs. Bailey F. Campbell The Garber Family Foundation Mrs. Spelman Prentice Philip Morris International Mr. and Mrs. Stuart Campbell Mr. Robert W. Garthwait, Jr. Global Services Inc. Reynolds American Dr. G. L. Carter Jr. Ph.D. Mr. and Mrs. Larry D. Garvey PhRMA Hamilton Roddis Foundation Mr. and Mrs. Ronald L. Carter Mr. and Mrs. J. Patrick Gavaghan Mr. and Mrs. James Plute Mr. Henry E. Schnell Mr. Frank Cerami Mr. Richard Geary Arthur N. Rupe Foundation Shamrock Foundation Cerner Corporation GFC Foundation Schering-Plough Corporation Mr. William C. Shanley III Chevron Corporation Mr. and Mrs. J. Robert Gillette, Sr. Sunmark Foundation Mr. and Mrs. Allen Stonesifer The Chisholm Foundation Mr. Paul F. Glenn Mr. and Mrs. Kermit S. Sutton John Templeton Foundation Ms. Gladys Choate, OFM Mr. Thomas S. Gordon Mr. and Mrs. Gary L. Swenson Mr. and Mrs. Brian S. Tracy Dr. and Mrs. Armeane M. Choksi Mr. and Mrs. Leo G. Graham The Sidney A. Swensrud Foundation Mr. Arthur Cinader Mr. and Mrs. Jerome Green Taiwan Foundation for Democracy Executive Associates Mrs. Elizabeth K. Cochran The Albert M. and Lyda M. Green Mr. and Mrs. Raymon F. Thompson Mr. and Mrs. Charles H. Adler Mr. David L. Coffey Foundation Mr. Robert J. Ulrich Mr. and Mrs. Douglas F. Allison Dr. M. Donald Coleman Mr. and Mrs. Curtis Grina United Parcel Service Altria Client Services The George E. Coleman, Jr. Foundation Mr. Richard P. Griot Mr. and Mrs. Jeff P. Van Dyke Assurant Health Foundation Mr. and Mrs. Miles Collier Mr. Michael Henry Guetz Mr. and Mrs. Wallace E. Volwiler Mr. and Mrs. Robert R. Aune Comcast Corporation Mr. and Mrs. Ronald L. Haberkorn Count and Countess H.N. and Frances C. Berger Foundation Mr. and Mrs. Robert A. Cook Mr. Christopher Damon Haig Ferdinand von Galen Mr. Robert J. Bertch Corporate Press Mr. Glen W. Hall Mr. Dean K. Webster William H. Bowen Educational Mr. and Mrs. Gilbert C. Cox, Jr. Henry E. Haller, Jr. Foundation Charitable Trust Mr. James A. West The Crail Foundation Mr. and Mrs. Harold E. Hamilton Mr. and Mrs. George R. Brown Mr. Paul H. Wick Mr. Michael F. Cronin Mr. and Mrs. Ray C. Hayes Mr. and Mrs. David W. Caldwell Mr. R. B. Zinser Mrs. Gay Cummings Mr. and Mrs. Ron J. Hazlett Challenge Foundation Mr. and Mrs. H. Gary Heavin Associates John R. and M. Margrite Davis Douglas and Maria DeVos Foundation Foundation C. J. Heilig Foundation 3M Corporation Dole Mrs. Dorothy E. de Ganahl Mr. Clifford Heinz Mr. and Mrs. Edward M. Ackerman The William H. Donner Mr. Frederick Joseph DeLong III Ms. Margaret M. Hill Foundation, Inc. Ms. Hazel S. Adams Daniel and Pamella DeVos Foundation Mr. William H. Holden Mr. and Mrs. Steve Durham Mr. and Mrs. George Anderson The Dick and Betsy DeVos Foundation Mr. and Mrs. Edson P. Holland Mr. and Mrs. George T. Elmore Mrs. Grace A. Andersen Mr. and Mrs. Charles D. Dickey, Jr. The Huston Foundation Fairchild-Martindale Foundation A. Gary Anderson Family Foundation Gladys M. Dickson Charitable Trust Mr. Paul J. Isaac Mr. and Mrs. Gregory W. Fazakerley Apex Foundation Dodge Jones Foundation Mr. Arnold H. Johnson Mr. Tracy Fu Mr. Jeffrey B. Armour Donner Canadian Foundation Mr. and Mrs. Howland B. Jones, Jr. Rollin M. Gerstacker Foundation Richard F. Aster Jr. Foundation Herbert H. and Barbara C. Dow Mr. Lonnie W. Jourdan Mr. William S. Atherton Mr. Marvin Goehring Foundation Ms. Rebecca L. Julian Mr. and Mrs. Paul M. Bagnoli Pierre F. and Enid Goodrich Foundation Dr. Scholl Foundation Kantner Foundation, Inc.

32 The Heritage Foundation 2009 Annual Report Membership Levels—and Benefits

Basic Heritage Membership ($25 and President’s Club ($1,000) – As a Presi- and Premier President’s Club contrib- up) – You receive our quarterly news- dent’s Club member, you can receive uted $3,527,134. letter, issue briefings and the chance any or all of Heritage’s issue papers, to participate in opinion surveys. and are invited to two Club meetings in Associates ($10,000), Executive Basic members contributed a total of Washington. These events are a great Associates ($25,000) and Premier $17,855,263 in 2009. way to meet conservative leaders from Associates ($50,000) – In addition across America and hear from luminar- to receiving Executive Committee Congress and Culture Watchers Club ies such as Rush Limbaugh, Sen. Jim benefits, Associates are invited ($100) – You get all the benefits above, DeMint and former Secretary of the to attend the Annual Leadership plus regular updates on key issues Navy John F. Lehman–just some of last Conference and Board Meeting. In before Congress. In 2009, 62,664 club year’s featured speakers. In 2009, 3,791 2009, 405 members at these levels members contributed $11,852,441. President’s Club members contributed contributed $7,716,697. $4,590,337. Young President’s Club ($250) – Founders ($100,000), Trustees’ Circle Those under 40 may join the President’s Executive Committee of the Presi- ($500,000) and Chairman’s Circle Club for only $250 – a 75 percent dis- dent’s Club ($2,500) and Premier ($1,000,000) – Membership includes all count. YPC members get all President’s President’s Club ($5,000) – Members Associates benefits, plus invitations to Club benefits, including invitations to of these clubs receive all President’s private receptions and special events. In both President’s Club meetings each Club benefits, plus invitations to two 2009, 58 Founders, Trustees’ Circle and year. In 2009, 929 Young President’s private luncheons a year. In 2009, 920 Chairman’s Circle members contributed Club members contributed $247,322. members of the Executive Committee $15,172,492. To learn more about how you can help Heritage provide leadership for America, please call (800) 546-2843 or visit online at MyHeritage.org.

Mrs. Barbara D. Kasler Mr. and Mrs. Norman J. Metcalfe Mrs. Fula Pelitti Triad Foundation Inc. Mr. and Mrs. Harry P. Keegan III Mr. and Mrs. Ted Millice Ms. Diana J. Peterson Mr. and Mrs. Ronald Trzcinski Mr. Harry P. Keegan IV Gerrish H. Milliken Foundation Mr. and Mrs. Gary Pilgrim Mr. and Mrs. Ron Tucker Mr. Joseph Keelty Mr. and Mrs. George Keith Mitchell, Jr. Mrs. Doris A. Pistole Mr. J. Robert Tullis Mr. and Mrs. Thomas L. Kempner Mr. Christopher S. Moody, Sr. Mr. and Mrs. Allen B. Porter Mr. Michael S. Turner Mr. and Mrs. Broadus H. King, Jr. Mortgage Insurance Companies of Mr. Vincent Mark Rafanelli Mr. Richard E. Uihlein Mr. David King America Ray Foundation Steve & Cindy Van Andel Foundation Mr. Donald H. Kirkland Mr. James F. Mrazek Mr. Robert E. Richardson Mr. John C. Van Hollen Mr. Ben Kleinpeter Mr. Terence H. Murphree Mr. Sheldon Rose Mr. and Mrs. Ralph Vennetti Mr. Richard T. Kotecki Mr. and Mrs. Francis P. Murphy Mrs. Elizabeth P. Rosenfeld Mr. and Mrs. Paul B. Venuto Mr. and Mrs. Richard L. Kozlowski Mrs. Suzanne P. Murphy Mr. and Mrs. Stanford Rothschild Mr. James R. Voss Ms. Sandra Krause Murrill Foundation, Inc. The Ryan Family Foundation Dr. and Mrs. Bill Wagner Mr. Edward C. Levy, Jr. Mr. and Mrs. Patrick K. Neal Dr. Kristen Rychalsky Ms. Ardis Walters Mr. and Mrs. John P. Lewis Mr. L. C. Neely, Jr. Mr. Charles H. Sanford and Mr. Charles Reynolds Watkins Dr. and Mrs. Robert T. Lewit The Negaunee Foundation Ms. Linda A. Elliott The Weiler Foundation Mr. Phillip L. Liberatore, CPA Mr. John H. Nelson Mr. and Mrs. Robert H. Schwarzmann Mr. and Mr. Ronald B. Weinel Mr. and Mrs. Ed D. Ligon, Jr. Mr. and Mrs. Robson S. Newbold Mr. and Mrs. Donald R. Scifres Mr. Robert E. Weiss Mr. and Mrs. Edward A. Lozick Mr. and Mrs. Peter C. Newell The Sence Foundation Mr. Stephen D. Weiss Mr. Robert M. Lynas Mr. and Mrs. Todd S. Nicholson Louis and Nellie Sieg Fund Mr. Richard Wells Mrs. Marie G. MacGregor Mr. David W. Niemiec Mr. and Mrs. Harold Siegel Samuel L. Westerman Foundation The Maclellan Foundation Inc. Mr. and Mrs. Donald J. Nores Mr. Will B. Skillman Mr. Donald M. Wilkinson Mr. M. Holt Massey Novartis Corporation Mr. and Mrs. Owen T. Smith Dr. and Mrs. Charles J. Willey Mr. and Mrs. Ralph P. Mayer Mrs. Linda Noyes Mr. and Mrs. Henry Smogolski The William Penn Foundation Mr. James W. McCarthy Mr. and Mrs. David Oates Mr. and Mrs. Charles E. Spahr Mr. and Mrs. James Wintersteen McCormick Foundation Mr. and Mrs. Herman J. Obermayer Mr. J. C. Sparkman Mr. Frank E. Witt Ms. Sandy McGowan Lucille V. O’Brien Foundation Gen. William W. Spruance Mr. Keith C. Wold, Jr. Mr. Jim McGraw Mr. and Mrs. Robert C. Odle, Jr. Col. and Mrs. Emmett E. Stobbs, Jr. Ms. Karen A. Wright Philip M. McKenna Foundation, Inc. Mr. and Mrs. Roderick Odom Mr. & Mrs. Richard Storkan Mr. Richard M. Wright Mr. and Mrs. Philip McKinney Mr. and Mrs. James J. O’Neill Strong Foundation Trust Mr. and Mrs. Donald H. Young Dr. and Mrs. John R. McNair, Jr. Mr. and Mrs. Darryle L. Owens Mr. Joe Chat Sumnet III Mr. and Mrs. Michael Young Mr. Greg McNece Mr. Richard E. Owens Mr. Cameron Sutton Mr. and Mrs. Roger Ziemer Mr. James B. McWethy Mrs. C. N. Papadopoulos Mr. and Mrs. Jerry J. Tepper Mr. and Mrs. Thomas R. Zucker Mr. J. Lewis Meibergen Mr. and Mrs. Douglas Parsons Mr. Oscar L. Thomas, Jr. Mr. Mo Meidar Mr. and Mrs. Ben M. Patterson, Jr. Mrs. Erma Jean Tracy Forty-one Associates have asked to Mr. Val Peline remain anonymous.

Leadership for America The Heritage Foundation 33 Honoring Donor Intent Following a From universities to charitable screening of 33 Minutes, Paul Wick, organizations, the philanthropic chairman of our world is—most unfortunately— San Francisco Bay rife with organizations that have Area Committee, broken faith with their donors. discusses the group’s next event It’s a serious problem. But it’s no with Jessica Dean, problem here at The Heritage Heritage’s regional Foundation. manager of donor relations. We know that when you contribute to Heritage, you expect your gifts to advance our mission: “to formulate and promote policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national Michael Jude, defense.” And everyone at chairman of the Heritage, from the mailroom to Colorado Committee for Heritage, raises a the boardroom, understands that question at Heritage’s

we have an obligation to respect Geer Chas Photo: Founders Meeting. your philanthropic intent. That’s why Heritage’s Board of Trustees makes this formal pledge to our donors:

“We will always respect your philanthropic intent and always hold ourselves Vivian and Sam Dubose of accountable to you in Atlanta meet Bill our use of your generous Amos (right) of Amelia Island, contributions.” Fla., at Heritage’s

Photo: Chas Geer Chas Photo: Founders Meeting. For a free brochure about donor intent, and Heritage’s strict adherence to this principle, please call our membership line at (800) 546-2843. Also, if you ever have any questions about Terry Stokesbary your contributions or a complaint (M. J. Murdock about the way we spend them, Charitable Trust) speaks with please contact us immediately. Heritage Trustee We will make sure your questions Barb Van Andel- are answered and your problems Gaby and Rick Gaby of Duluth, resolved. Ga., at Heritage’s

Founders Meeting. Geer Chas Photo:

34 The Heritage Foundation 2009 Annual Report George and Sally Mayer of Essex, Conn., chat with Heritage Vice Pedro Wasmer of Fairfield, Conn., talks things over with Karl Rove President John Fogarty (left) at the November gathering of the (right) during the Executive Committee luncheon at the November President’s Club. President’s Club Meeting.

Heritage Executive Vice President Phil Truluck (left) greets Rudy Silc (Lake Worth, Fla.) and Sandra Blumel (Atlantis, Fla.) at the November President’s Club. Photos: Chas Geer Chas Photos: Vicki Drummond of Jasper, Ala. (left), Gail Kozlowski of Harbor Thomas Colbert of Flowood, Miss., speaks with Heritage Vice Springs, Mich. (center), and Renell Dubay of College Station, Texas, President and Treasurer John Von Kannon (right) at the November visit at the November President’s Club Meeting. President’s Club.

Leadership for America The Heritage Foundation 35 Building a Better Future

olicy debates weren’t the only thing Heritage upgraded in P2009. A generous donation from Lewis E. Lehrman enabled us to transform Lehrman Auditorium into a state-of-the-art lecture hall, complete with plasma-screen monitors, improved television lighting and all-new sound equip- ment and seating. Speakers in the new facility included Sen. Orrin Hatch (“Preserving Freedom and Federalism”), Rep. Eric Cantor (“Does Creating Jobs Have to Cost Money?”), Mississippi Gov. Haley Barbour (“Tort Reform in Photo: Chas Geer Chas Photo: the States”) and Dr. Liam Fox, the After receiving a complete makeover, Lehrman Auditorium reopened with a ribbon cutting UK’s Shadow Secretary of State celebrated by (from left) Heritage President Edwin Feulner, Founder Lewis E. Lehrman, former for Defense. Vice President Dick Cheney and Heritage Chairman Thomas Saunders.

Heritage moved forward with establishing a physical presence on the House side of the Capitol. We gutted and expanded the fire-damaged building we acquired last year at 227 Pennsylvania Ave., SE, only blocks from the House office buildings. The new facility, complete with meeting rooms and office space, will open for business within months, giving House members and staffers even easier access to Heritage experts.

36 The Heritage Foundation 2009 Annual Report Staff of The Heritage Foundation PRESIDENT’S OFFICE DOMESTIC AND Research Editors Dorothy Hodo JB Horton Edwin Feulner ECONOMIC POLICY Richard Odermatt Marvin Moon DeEtte Chatterton Jones Timothy Chapman Stuart Butler John Fleming David Parker Sandy Mikilia Thomas Qualtere Pamela Ouzts James Kidd Albert Potts Jay Rinehart Kathleen Rowan Ryan O’Donnell Freida Warren Leah Sammons Missy Stephens Center for Data Analysis William Poole Jeffrey Trimbath Business Support Services Kenneth Sheffer William Beach Jon Rodeback Lauren Volpe Robert Book Karina Rollins Renault King EXECUTIVE VICE Karen Campbell George Adams Heritage Legacy Society PRESIDENT’S OFFICE Rea Hederman DISTINGUISHED Renzo Boyd FELLOWS Roxana Laing Phillip Truluck David Kreutzer Berdie Carter Lori McNicoll Jean Barry John Ligon Elaine Chao Amy Hart David Muhlhausen Lee Edwards Annette Keymist Membership Programs & Personnel Guinevere Nell Ernest Istook Grant Development James Sherk James Talent Internal Events Wesley Dyck Carsten Walter Matthew Adkins Patrick Tyrell Heath Hall Ebony Hunter Paul Winfree Anna Hui Antonio Machenguer Gabriel Conger Kristine Bramsen Heather Currall Karen Cook Jason Snead Maria Mendoza Center for Health Tina Wei Sarah Ferguson Christopher Marcel Policy Studies GOVERNMENT Becky Turco Christine Fogarty Robert Moffit LEADERSHIP FOR RELATIONS Estefania Holler DAVIS INSTITUTE Ed Haislmaier AMERICA OPERATIONS Michael Franc Kristen Hoopes FOR INTERNATIONAL Nina Owcharenko Genevieve Wood Danielle Doane Michelle Jehring STUDIES Kisa Smith Sarah Aguirre Laurie Craney Anne Judge Kim Holmes Domestic Policy & DeVos Creative Services James Dean Richard McAdams Amber Schwarz Center on Religion and Shawn Ryan Eve Newell Therese Pennefather Landon Zinda Jan Smith Civil Society Elizabeth Brewer Erin Riache Evgueni Volk Jennifer Marshall Ralph Buglass Amanda Reinecker U.S. House Relations Joseph Shattan Allison Center for Foreign Kiki Bradley Teresa Matous Erin Kanoy Lindsey Burke Michelle Smith Aaron Thompson Policy Studies Eric Heis Mecca Turner James Carafano Collette Caprara Daniel Ziegler Diane Mannina Strategic Marketing Samuel Walker Julia Bertelsmann Keesha Bullock Nathaniel Ward Peter Brookes Grace Melton U.S. Senate Relations Christine Kim Joe Brichacek Brian Darling Yvette Campos Emily Rein Special Events Ariel Cohen Daniel Lips Daniel Holler Leslie Merkle Steven Weyrich Ann Bula Helle Dale INFORMATION Dria Graham Mackenzie Eaglen Ryan Messmore EXTERNAL RELATIONS TECHNOLOGY Alex Harrison Owen Graham Robert Rector Becky Norton Dunlop Emily Kayrish Jena McNeill Robert Gordon Michael Spiller Roe Institute for Roger Whyte James Phillips Economic Policy Studies Mary Larson Information Systems Morgan Roach Alison Acosta Fraser COMMUNICATIONS Erin Sedlacek Coalition Relations Mark Harris Curtis Dubay Kibreab Berhe Mike Gonzalez Baker Spring JD Foster Bridgett Wagner Raymond Walser Alexander Adrianson Brian Byrne Rebecca Tatum James Gattuso Jason Ephraim Jessica Zuckerman David John Mark Kelly Michael Leland Michele Palmer Broadcast Services Steven Keen Asian Studies Center Teri Ruddy Michael Smith Matthew Streit Benjamin Lieberman Ryan Townsend Audrey Jones Walter Lohman Nick Loris Dean Cheng Lectures and Seminars Elizabeth Lincicome Nicola Moore John Hilboldt Online Communications Lisa Curtis Brian Riedl Israel Ortega Nicholas Hamisevicz Jason Murphy Timothy McGovern Jack Spencer Andrew Parks Martha Galante John Fleming and Kenneth McIntyre Kenneth and Fleming John Elizabeth Hamrick Center for Media and Ronald Utt James Lawruk Bruce Klingner Young Leaders Program Public Policy Ki Ho Lee John O’Keefe CENTER FOR LEGAL Heather Sexton Robert Bluey raphics: Joel Smith Derek Scissors AND JUDICIAL STUDIES Doug Ernst Nicholas Zahn Edwin Meese III Maria Sousa Editorial Services Stephanie Bortner FINANCE AND Roger Spurzem James Weidman Center for International OPERATIONS Paul Gallagher Trade and Economics Legal Center DEVELOPMENT Ted Schelenski Marguerite Higgins Terry Miller John Von Kannon Todd Gaziano Allison Mealy Kenneth McIntyre Charlotte Cannon John Fogarty Robert Alt Richard Tucker Anthony Kim Elizabeth Garvey Accounting Christine Cheatum Daniella Markheim Jessica Kline Vern McHargue Christie Grennes Strategic Communications Robert Hartsook James Roberts Deborah O’Malley Keith Capp Rory Cooper Caroline Walsh Charles Stimson Bernard Lomas Chroma Graphics G rinting: Graphics Chroma James Gabele Mike Brownfield Hans von Spakovsky Robert E. Russell Jr. Alyson Miller Conn Carroll Margaret Thatcher Center Brian Walsh Sandra Noone Donor Relations Isabel Isidro for Freedom Mark Schreiber Todd Thurman Nile Gardiner B. Kenneth Simon Center Edward Sharrer Nick Reid Theodore Bromund for American Studies Matthew Bagnoli Steven Groves Matthew Spalding Administration Ann Beckwith Communications Projects Sally McNamara Spencer Anderson Eric Korsvall Anthony Campau Charlotte Davis Erica Munkwitz Joseph Postell Lisa Castellana Jessica Dean Alec Aramanda LoganFrancis, Inc. P Inc. LoganFrancis, Brett Schaefer Julia Shaw Emily Dunham Rebecca E. de Broekert Marion Smith Kevin Germany Steven DeBuhr (List current as of Jan. 1, 2010) D esign: “Heritage is planting the intellectual seeds that are moving this country and moving this Congress.” the heritage foundation 2009 annual report — Rep. Paul Ryan, R-Wis., speaking at The Heritage Foundation, Jan. 28, 2010

“We are pleased The Heritage Foundation is continuing to express the principles of liberty and conservatism. The nation needs you more than ever.” —Robert and Ruth Small, Executive Committee Members

“A powerhouse of conservative ideas, [The Heritage Foundation] had considerable influence during the Bush years when many of its scholars entered government. If anything, its influence has grown in ‘opposition’ with its analyses of the social and economic effects of Democratic healthcare proposals.... As conservatism rebuilds itself, Heritage will be designing the foundations.” —Toby Harnden, Daily Telegraph (UK), Jan. 14, 2010

“The Heritage Foundation is truly a major source of national wisdom and hope in these troubling times. What a wonderful team of individuals you are!” —Harold A. Richard, President’s Club Member

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—Peter and Mary Burgess, President’s Club Members

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