The Does America: The Soros-Founded Plutocrats’ Club Forms State Chapters By Matthew Vadum and James Dellinger

(Editor’s note: This special report on the Democracy Alliance updates our January 2008 and December 2006 issues of Foun- dation Watch.) Summary: Four years ago the Democratic Party was in disarray after failing to reclaim the White House and Congress despite re- cord contributions by high-dollar donors. and other wealthy liberals decided they had the answer to the party’s problems. They formed a secretive donors’ collaborative to fund a permanent political infrastructure of nonprofi t think tanks, me- dia outlets, leadership schools, and activ- ist groups to compete with the conservative movement. Called the Democracy Alliance (DA), Soros and his colleagues put their im- primatur on the party and the progressive movement by steering hundreds of millions of dollars to liberal nonprofi ts they favored. The Democracy Alliance helped Democrats Democracy Alliance fi nancier George Soros spoofed: This is a screen grab from the give Republicans a shellacking in Novem- Oct. 4 “Saturday Night Live.” In front row from left to right, Kristen Wiig as House ber. Now it’s organizing state-level chapters Speaker Nancy Pelosi, Will Forte as Soros, and Fred Armisen as Rep. Barney Frank. in at least 19 states, and once-conservative could weaken the resolve of self-styled “pro- D.C., according to Marc Ambinder of the , which hosts the Democracy Al- gressives.” They worry that complacency Atlantic. It’s safe to say they are planning liance’s most successful state affi liate, has and fatalism threaten the progressive sense their next moves. turned Democrat blue. Moreover, the DA- of mission and their long-term prospects to funded “Secretary of State Project” has destroy conservatism and the conservative Since at least 2006 DA members and staff helped elect the chief electoral offi cials in movement. When the Democracy Alliance have been quietly working to franchise their nine states. Critics worry that a secretary was founded in early 2005, members said in operations at the state level. The Alliance of state sympathetic to the aims of ACORN, a survey that their greatest fear was that their the radical community organizing group, organization might not survive a Democrat December 2008 will open to door to vote fraud. winning the White House. Over the next two years they will begin to fi nd out if the Alliance CONTENTS he wealthy liberals who are members is becoming a victim of its own success. The Democracy Alliance of the Democracy Alliance (DA), the Does America Tfi nancial clearinghouse that aims to Democracy Alliance leaders and their most Page 1 move America permanently to the left, are al- visible funder, George Soros, haven’t said ways afraid of something. Their greatest fear much publicly on the Democratic Party’s Philanthropy Notes used to be George W. Bush. But now they are triumph at the polls. But on November 12 Page 12 afraid that the Democratic victory last month they met behind closed doors in Washington, FoundationWatch created a Committee on States which aims Since the Alliance had been in existence for *Building power and capacity in to put a state-level Democracy Alliance in 43 months –not 30 months— when Stein key constituencies: engagement and all 50 states. Its greatest success to date is made the statement, neither amount tells issue advocacy work with key con- Colorado, where a DA chapter helped turn the whole story. stituencies, primarily Latinos and that state Democrat blue. The Alliance also young people, as well as African funds the Secretary of State Project, which In an August 15 Huffi ngton Post column Americans and unmarried women. aims to put Democrats in control of the elec- Alliance member Simon Rosenberg noted * New media and technol- tions apparatus in “key” states. that the total dollar value of DA-approved ogy: content generators, aggrega- grants was signifi cantly higher. Rosenberg, tors and distributors that disseminate Following the Money the founder of the 501(c)(4) New Democrat and amplify progressive messages. How much grant-making to liberal groups Network (now called simply NDN), wrote * Law and legal systems: working to ad- that the Alliance has already “channeled has the Democracy Alliance facilitated? vance and protect progressive values and hundreds of millions of dollars into progres- policies at all levels of the legal system. sive organizations.” It’s not easy to say. First, the Alliance is * Early stage idea generators: focus- extremely secretive. Second, it doesn’t In November 2007, Alliance members ing on progressive idea generation generally handle grant monies directly, but and development at the early and acts as a clearinghouse matching causes to George Soros, Rob McKay, Anna Burger, and the Center for American Progress’s John middle stages of the idea cycle in- willing donors. Unless evidence surfaces cluding journals, academic networks, that money was funneled through the Alli- Podesta helped form the Fund for America, a 527 group. Roll Call predicted (Nov. 12, books, and non-traditional think tanks. ance, who’s to say an individual DA member * Content generation: focusing on didn’t make a grant to a group on his or her 2007) that the new entity could pump “per- traditional and new media vehicles own initiative? haps $100 million or more into media buys and voter outreach in the run-up to the 2008 that are capable of developing and ef- fectively promoting progressive ideas. Last month a reporter told Foundation Watch elections.” But Alliance donors pulled back that a Democracy Alliance spokesperson after the Fund fell short of its goal and was * Civic engagement coordination: told him the DA has brokered a total of only disbanded by June 2008, a victim of the achieving greater effi ciency and effec- $105 million in grants to date. This is only lengthy Obama-Clinton primary fi ght and tiveness in mobilization and participation $5 million more than we reported 11 months Obama campaign signals that it did not want work through collaboration and coordi- ago. Democracy Alliance founder Rob Stein its supporters giving to any outside 527 group nation and creating economies of scale. told a Democratic Party national convention not under its control. ( Times “The * Civic engagement tools: increas- panel discussion in August that the Alliance Caucus” blog, June 26) ing capacity and availability of data “over the last 30 months has put about $110 services, including online organizing million into 30 groups.” Before it disbanded the 527 funded a number services for civic engagement groups. of left-of-center political organizations. They * Election reform: focusing on struc- include the Campaign to Defend America Editor: Matthew Vadum tural reforms of our democratic process ($1.4 million), , VoteVets. that will increase voter participation org, Americans United for Change, ACORN, Publisher: Terrence Scanlon among progressive constituencies. Center for American Progress Action Fund, * Youth leadership development: Foundation Watch Women’s Voices, Women Vote Action Fund, is published by Capital Research and Progress Now Action and some of its af- building on the youth development Center, a non-partisan education and fi liates. The Fund’s address was identical to part of the leadership pipeline that research organization, classifi ed by the Service Employees International Union’s includes looking for organizations tar- the IRS as a 501(c)(3) public charity. Washington headquarters, and it reimbursed geting young people that work at scale. * Mid-career nonprofi t leadership Address: SEIU for staff and offi ce expenses. The fund 1513 16th Street, N.W. took in $3.5 million from Soros, $2.5 million development: building on the mid-career Washington, DC 20036-1480 from SEIU, $2.5 million from Hollywood development part of the leadership pipe- producer Steve Bing, and $1 million from line that includes looking for organiza- Phone: (202) 483-6900 hedge fund executive Donald Sussman. tions working at scale. Long-Distance: (800) 459-3950 E-mail Address: The Alliance created an internal bureaucracy Clearly, donor support is needed for writing [email protected] to deal with grants. Last summer, the DA books, starting think tanks, winning elections posted a “Letter of Interest” form on its and changing laws. But what’s striking about Web Site: website inviting grant applications from this list is the philanthropic left’s emphasis http://www.capitalresearch.org progressive nonprofi ts for the 2009/2010 on young people, new media, and online giving cycle. The form, since scrubbed organizing. Organization Trends welcomes let- from the site, showed that the Alliance has ters to the editor. a special interest in sustaining certain kinds What is the Democracy Alliance? Reprints are available for $2.50 pre- of organizations. This list usefully describes paid to Capital Research Center. During a panel discussion at the Democratic what DA funders consider the priorities for National Convention in in August, the 21st century left: 2 December 2008 FoundationWatch

Democracy Alliance founder Rob Stein presentation on condition they keep it con- Democratic donors aggravated by the GOP’s explained the simple truth behind the Alli- fi dential. Called “The Conservative Message electoral success latched on to Stein’s vision. ance’s mission: It was crucial to control the Machine’s Money Matrix,” Stein showed “The new breed of rich and frustrated left- White House. According to a recording of graphs and charts of an intricate network ists” saw themselves as oppressed both by “a that August 27 meeting Stein explained: of organizations, funders, and activists that Republican conspiracy” and “by their own comprised what he said was the conservative party and its insipid Washington establish- The reason it is so important to control movement. “This is perhaps the most potent, ment,” writes journalist Matt Bai, author of government is because government is the independent, institutionalized apparatus ever The Argument: Billionaires, Bloggers, and source of enormous power. One president assembled in a democracy to promote one the Battle to Remake Democratic Politics. in this country, when he or she takes of- belief system,” Stein said. “This, more than anything else, was what fi ce, appoints 2 million people—I mean, I’m sorry—appoints 5,000 people to run a bureaucracy, non-military non-postal service of 2 million people, who hire 10 million outside outsource contractors— a workforce of 12 million people—that spends 3 trillion dollars a year. That number is larger than the gross domestic product of all but four countries on the face of the earth.

The Alliance has been around for almost four years now. It was born out of the frustration of wealthy liberals who gave generously to liberal candidates and 527 political com- mittees, but received no electoral payoff in 2004. George Soros, Progressive Insurance chairman Peter B. Lewis, and S&L tycoons Herb and Marion Sandler were angry and discouraged after contributing to the Media Fund, which spent $57 million on TV ads attacking President Bush in swing states and to America Coming Together which spent $78 million on get out the vote efforts. Democracy Alliance founder Rob Stein at a November 2006 panel discussion at the They had been seduced by the siren song Hudson Institute’s Bradley Center for Philanthropy and Civic Renewal of pollsters and the mainstream media who promised them John Kerry would trounce Stein believed the left could not compete drew them to Rob Stein’s presentation,” the incumbent president. Other wealthy electorally because it was hopelessly out- writes Bai. Democratic donors felt the same way. “The gunned by the right’s think tanks, legal U.S. didn’t enter World War II until Japan advocacy organizations, and leadership Stein’s presentation won converts and in 2005 bombed Pearl Harbor,” political consultant schools. Stein failed to mention the universi- the Democracy Alliance was born. It was an told them. “We just had our ties, big foundations and mainstream media odd name for a loose collection of super-rich Pearl Harbor.” as adjuncts of the political left. donors committed to building organizations that would propel America to the left. In April 2005, 70 millionaires and billion- Stein felt Democrats had grown accustomed aires met in Phoenix, Arizona, for a secret to thinking of themselves as the natural The Alliance is becoming what leftist blog- long-term strategy session. Three quarters majority party. The party had become a ger Markos Moulitsas of DailyKos fame of the members at the meeting agreed that top-down organization run by professional called for in 2005: “A vast, Vast Left Wing the Alliance should not “retain close ties to politicians untroubled by donors’ concerns. Conspiracy to rival” the conservative move- ment. It relies less on traditional Democratic the Democratic Party,” and 84% thought the He was convinced the party had to be Party “machine” politics, which typically conservative movement was “a fundamental turned upside-down: Donors should fund an draws upon fat cats, institutions (the party threat to the American way of life.” ideological movement to dictate policies to itself, labor unions), and single-issue advo- politicians. Activists with new money and Former Clinton administration offi cial Rob cacy groups (pro-abortion rights groups, the new energy should demand more say in party National Education Association and other Stein told the gathering they needed to refl ect affairs. Said Eli Pariser of the group MoveOn. on how conservatives had spent four decades teacher unions). Although it is offi cially org: “Now it’s our party: we bought it, we nonpartisan, the DA has cultivated deep investing in ideas and institutions with stay- own it, and we’re going to take it back.” and extensive ties to the Democratic Party ing power. Stein showed his PowerPoint establishment. December 2008 3 FoundationWatch

Members, who are called “partners,” pay an At the convention, Stein said DA’s “Com- website idealist.org for a project coordinator initial $25,000 fee and $30,000 in yearly dues mittee on States” project “is helping 18-other describes the Committee as “a not-for-profi t and must pledge to give at least $200,000 an- states beyond Colorado try to get up to organization that encourages and supports nually to groups that the Alliance endorses. Colorado’s level of sophistication and or- the strengthening of sustainable, state-based Partners meet two times a year. The Alli- ganizational development.” He added, “over progressive political networks across the ance discourages partners from discussing the next couple of years a lot of development country.” DA affairs with the media, and it requires is going to happen.” its grant recipients to sign nondisclosure Alliance member Anne Bartley, a trustee of agreements. Stein complimented leaders of the Colorado the Rockefeller Brothers Fund, helped cre- Democracy Alliance (CoDA) which started ate the Committee. Bartley, a step-daughter The Alliance’s board is a microcosm of the up in 2006. With little national attention and of the late Arkansas governor Winthrop modern left. In the top rungs are Rob McKay, less money, CoDA had helped Colorado turn Rockefeller, one of the Rockefeller broth- a limousine liberal, Anna Burger, a labor ac- from red to blue in just a few short years. ers, is married to Larry B. McNeil, a former tivist, and Drummond Pike, a peacenik from the 1960s. Taco Bell heir McKay was born Saul Alinsky organizer for 25 years. McNeil in conservative Orange County, Calif., and Of CoDA, which until recently operated is now director of the SEIU-sponsored his parents were Republicans. The DA vice under the radar, Stein said: Institute for Change, a leadership training chairman is Anna Burger, sometimes known foundation. as the “Queen of Labor.” She is secretary- In the absolutely fi nest form of fl attery, treasurer of the militant SEIU and chairman the Weekly Standard, which is the most DA’s “investment services” consultant Frank of Change to Win, the AFL-CIO breakaway respected conservative-right opinion Smith, a former assistant district attorney in labor federation. Drummond Pike, founder of journal in the country, did a cover Boston, co-manages the Committee on States the ultra-liberal Tides Foundation, is the DA’s story about a month ago, written by Fred project. Kelly Craighead, managing director treasurer. Pike was recently in the news when Barnes, on the Colorado Model. And it is a of the Democracy Alliance, explained that it was revealed that he personally contributed warning shot to conservatives in America, the intention is “to build infrastructure, both over $700,000 to help pay back $948,000 em- that if the Colorado Model is replicated at the national level and at the state level, bezzled from the radical group ACORN. The elsewhere, conservatives have nothing but also to build the sustainable progressive theft was committed by the brother of Pike’s comparable to possibly compete with it majorities.” close friend Wade Rathke, who is ACORN’s and they had better watch out. founder. Pike’s actions were an attempt to Michigan, Minnesota, Ohio, and Wiscon- help Rathke cover up a scandal that would In the July 21 article, Barnes recounted how sin Too? have damaged the good reputation (and donor in January 2008 “a ‘confi dential’ memo Through its Committee on States, the De- support) ACORN enjoys among leftist activ- from a Democratic political consultant mocracy Alliance may have already opened ists. (For more on ACORN, see Foundation outlined an ambitious scheme for spending branches in Michigan, Minnesota, Ohio, Watch and Labor Watch, November 2008.) $11.7 million in Colorado this year to crush and Wisconsin too. Grant data indicate DA Republicans.” The goal was to “[l]ock in Organizing the States members are heavily involved in fi nancing Democratic control of Colorado for years Despite founder Rob Stein’s promise two Democrats in all four states. At the Demo- to come.” The memo by Democratic strate- cratic convention, Frank Smith said: years ago to make the Democracy Alliance gist Dominic DelPapa was fi rst reported by more transparent, the group reveals little the Rocky Mountain News on Jan. 29 and We’ve also had a couple of other projects about its membership or their contribu- used the phrase, “Defi ne Schaffer/Foot on that grew out of DA work this year, that tions. But since our most recent Foundation Throat.” Wealthy liberal donors in the state we’re funding organizations like Work- Watch profi le of the group in January, we would need to come up with $5.1 million to ing America, which has got a door to have learned that the group has big plans defeat the GOP’s U.S. Senate candidate, Bob door membership canvass in states like for the future. Schaffer, and $2.6 million to oust incumbent Colorado, Ohio, Michigan, Wisconsin, Rep. Marilyn Musgrave. in those states where we’ve got to get Stein has been working to create state-level to those constituencies on economic Democracy Alliances across the country. One It worked, at least in this election cycle. On issues and to convince them that four is already openly operating in Colorado, and Nov. 4, the Democrats’ Mark Udall won by more years of Republican ruin is going possibly in other states. In August, during the 10% picking up the Republican-held Senate to, what, what that’s going to mean for Democrats’ national convention in Denver, seat that Schaffer sought. Musgrave too went their lives. So there is a big program in Stein touted the Democracy Alliance, tell- down in fl ames, beaten by newcomer Betsy these crucial states, it’s just under-funded ing participants at a panel discussion that no Markey by a margin of 13%. at this point. organization “has done more in the last four years to help build the 30 or so organizations The legal status of the Committee on States It could be that the national Alliance is that help form the core of what is happening is unclear. It is housed in the Service Em- supporting existing state groups until it can ployees International Union (SEIU) building all around the country.” establish its own branches in those states. in Washington, D.C. A May want-ad on job 4 December 2008 FoundationWatch

Campaign Donations Favored Democrats in 2008

In 2008, Democrats didn’t need help from the Democracy Alliance, which was free to focus on its long-term mission of building a progressive infrastructure. The party out-raised Republicans in the presidential and congressional races. All Democratic presidential candidates raised $889 million compared to Republicans’ $640 million. Barack Obama raised $639 million com- pared to McCain’s $360 million, according to the FEC’s Oct. 27 fi gures. MoveOn.org claims to have steered an astounding $88 million to Obama’s campaign. In Senate races, Democrats raised $194 million compared to Republicans’ $178 million. In House races, Democrats raised $478 million versus Republicans’ $400 million. (opensecrets.org, FEC data as of Nov. 6)

Corporate America leaned left in 2008. Businesses gave all Democratic candidates $886 million compared to $728 million to Republicans. That a 55% to 45% split in favor of Democrats. Labor gave $54 million to Democrats versus les than $5 million to Republicans. That’s a 91% to 8% split in favor of Democrats. (opensecrets.org, FEC data as of Oct. 27) Corporations and labor unions, which cannot give directly to political parties or candidates to federal offi ce, may make unlimited contributions to 527s. The only (wink wink) restriction: the law forbids political parties and 527s from “coordinating” their activities.

Of the top corporate and labor union donors to ostensibly non-partisan 527 committees that fi led disclosure reports with the IRS, four were on the left:

The Service Employees International Union ($31 million), followed by the American Federation of State, County, and Municipal Employees ($5.6 million), Soros Fund Management ($5.1 million), and Steven Bing’s Shangri-La Entertain- ment $4.8 million. Number fi ve was Las Vegas Sands ($4.4 million), whose namesake hotel is owned by conservative businessman Sheldon Adelson. SEIU also topped the list in the 2006 cycle, donating $33 million. (opensecrets.org, IRS records as of Oct. 21)

In Michigan, Colorado-based Alliance mem- Soros gave $10,000 to the Minnesota DFL ing Democratic gains nationwide”? This ber Pat (Patricia) Stryker and her billionaire (Democrat) State Central Committee in 2006, approach, he says, brother of Kalamazoo, Mich., and $200,000 to the Minnesota chapter of have given millions of dollars to Democratic America Votes, an approved DA grantee, depends partly on wealthy liberals’ candidates and the Michigan Coalition for the same year. spending tons of money not only on Progress, an independent left-wing political “independent expenditures” to attack Re- action committee. Since 2006, Patricia has In Ohio, Progress Ohio, a 501(c)(4) affi liate publican offi ce-seekers but also to create given $500,000 to the Coalition and Jon has of Progress Now, has been funded by the a vast infrastructure of liberal organiza- given $8,697,827, according to Michigan’s Democracy Alliance. Since Progress Ohio tions that produces an anti-Republican, campaign fi nance database. Jon has given was created in 2006, “affi liates based on the anti-conservative echo chamber in poli- $755,230 to the Democratic State Central same model have sprouted in seven other tics and the media. Committee and $50,000 to the Granholm states: Courage Campaign (CA); Progress Leadership Fund, an independent PAC for Florida; Progress Michigan; Alliance for a “Colorado is being used as a test bed for a Democratic Gov. . Better Minnesota; Clearly New Mexico; Fuse swarm offense by Democrats and liberals Washington and One Wisconsin Now,” NPR to put conservatives and Republicans on Other Alliance members have been writing reports. Progress Now aspires to be active defense as much as possible,” says former checks for Michigan too. George Soros gave in 25 states by 2012. Colorado Republican state senator John $10,000 to the 21st Century Democrats PAC Andrews, who founded the Independence In- in 2006 and $3,400 to Granholm’s campaign The Alliance’s vehicle in Wisconsin may stitute, the state’s free-market think-tank. in 2005. In 2006 Peter B. Lewis, gave $65,000 be Advancing Wisconsin, a political ac- to the Democratic Legislative Campaign tion committee. In the 2008 election cycle Barnes explains that the Democrats’ push Committee (DLCC), an independent PAC it received donations from the Fund for in Colorado has its origins in 2004 when and $3,400 to Granholm’s campaign. Debo- America ($230,000) and SEIU Wisconsin Colorado State University president Al Yates rah Rappaport gave $100,000 to the DLCC State Council (at least $13,120). The group got together with heiress , technol- in 2006. Rutt Bridges gave Granholm’s also received funds from DA-approved ogy entrepreneur , and software campaign $1,000 in 2006. grantee America Votes, which in turn has tycoons Tim Gill and Rutt Bridges. (All received donations from Alliance members except for Polis are known DA members.) In Minnesota, DA members Tim Gill and Pat Stryker and Peter B. Lewis. That year the group quietly spent $2 million Pat Stryker gave $300,000 and $100,000, targeting Republican state lawmakers, and respectively, in 2006, to the liberal Alliance The “Colorado Model” for the fi rst time in 44 years, Democrats for a Better Minnesota, a 501(c)(4) pressure What is this “Colorado Model” that journal- won majorities in both the state senate and group. Two state SEIU funds gave a total ist Fred Barnes writes “if copied in other house. In 2006, Gill and Stryker spent $7.5 of $105,000 in 2005 and 2006 to the group. states, has the potential to produce sweep- million to elect a Democratic governor, and December 2008 5 FoundationWatch in 2008, Schaffer and Musgrave fell to the relentlessly attacks Republicans and is a sub- CoDA’s job is “to build a long-term progres- progressive juggernaut. sidiary of the leftist Center for Independent sive infrastructure in Colorado, while we’re Media. The parent group acknowledges on conceding nothing in the short term, in terms With last month’s election, the state will its website that it has received grants from of progressive goals at the ballot box.” have two Democratic senators and fi ve out the , Service Employees In- of the state’s seven House members will be ternational Union (SEIU), and Soros’s Open An internal memo published on the Denver Democrats. In 1998, the state had two Re- Society Institute. Other donors to the Colo- Post website laid out the levels of CoDA publican senators and four of the six House rado Independent include the Sagner Fam- membership. “Tier I” members commit to members were GOP, as well as the governor ily Foundation (as in DA member Deborah give at least $100,000 directly to CoDA- and both houses in the state legislature. Here Sagner) which in 2006 gave $6,000 through approved groups, participate in internal is another measure of Democratic success: the Tides Center. Other Colorado-specifi c governance, and pay $12,000 in annual in 2000 George W. Bush won the state by liberal websites include ColoradoPols.com membership dues. “Tier II” members commit 9%. In 2004 he won by 5%. But in 2008 and SquareState.net. to give at least $25,000 directly to approved Republican John McCain garnered only 44% groups and pay annual membership dues of of the state’s popular vote compared to 53% There’s a Colorado chapter of the Center for $2,000. Institutional members must give at for Democrat Obama. Progressive Leadership, which provides lib- least $400,000 a year directly to approved eral leadership boot camps. The parent entity groups and pay $12,000 in annual dues. Eric O’Keefe, who heads the conservative received $16,420 from the Gill Foundation in Chicago-based Sam Adams Alliance, says A confi dential memo dated Oct. 3. 2006 there are seven “capacities” that are needed published by the Denver Post identifi ed the to advance a political strategy and keep it “board of directors and founding members” moving forward. As Barnes explains it, those as Rutt Bridges, Tom Congdon, Doug Phelps, capacities are 1) “to generate intellectual Tim Gill, Bruce Oreck, Linda Shoemaker, ammunition,” 2) “to pursue investigations,” and Pat Stryker. Other named board members 3) “to mobilize for elections,” 4) to combat were David Friedman, Judi Wagner, Butch media bias, 5) to sue strategically, 6) “to train Weaver, Kimbal Musk, Rob Katz, and John new leaders,” and 7) “to sustain a presence Huggins. Institutional members named were in the new media.” Colorado Education Association (CEA), SEIU, AFL-CIO, and Colorado Trial Law- Left-wingers in Colorado now have all seven, yers Association (CTLA) Barnes says. There are liberal think tanks: the Bighorn Center for Public Policy (founded At the Democratic convention, Zeller lauded by Rutt Bridges – but now reportedly de- the work of several groups that have received funct) and the Bell Policy Center (recipient funding from CoDA. America Votes, said of $150,000 from the Gill Foundation since Zeller, coordinates the work of 37 member 2005 and $10,000 from the Rutt Bridges advocacy organizations representing “almost Family Foundation in 2004). A MoveOn. a quarter of a million Colorado members and org activist spin-off called ProgressNowAc- a reach into the activist community that’s tion.org was formed in 2005. And Colorado The Alliance-funded Secretary of State crucial for achieving both electoral goals Project helped elect Mark Ritchie as Media Matters, a spin-off of David Brock’s and progressive change over time.” Minnesota’s chief electoral offi cer. liberal watchdog Media Matters for America, was formed in 2006 to pressure journalists 2006 and $50,000 from the Susie Tompkins She also hailed New Era Colorado for being and editorial writers into being even more Buell Foundation (whose namesake is a DA “youth vote oriented” and “focused on really liberal. member) in 2007. innovative uses of technology, of commu- nications, and different ways of activating Colorado Ethics Watch, was created in By coordinating these seven prongs the youth, particularly non-college youth.” 2006 to handle so-called public interest Colorado Model drives political discussions litigation. Its parent in the nation’s capital, and media coverage in the state. “Build an Zeller praised the Bell Policy Center for stud- Citizens for Responsibility and Ethics in echo chamber and the media laps it up,” says ies that supported increased state spending Washington (CREW), serves as a fi nancial Jon Caldara, president of the Independence and criticized Colorado’s groundbreaking conduit, accepting donations designated for Institute. Taxpayer Bill of Rights (TABOR): the Colorado entity. The Gill Foundation gave CREW $100,000 in 2006 earmarked Behind the CoDA Curtain As you may know, we have an arcane for its Colorado arm. At the August 27 meeting in Denver, Lau- constitutional provision that requires rie Hirschfeld Zeller, executive director of that voters have to approve any increase An online media outlet, the Colorado In- Colorado Democracy Alliance, threw some in taxes and spending. And the Bell has dependent, was also launched in 2006. It light on her state-level spinoff. She said developed an expertise and a commu- 6 December 2008 FoundationWatch

nications capacity on those issues that Stein was also critical of progressives’ lack got the Internet, we’ve got all kinds of has helped to empower the progressive of electoral appeal to white male voters and things. But it’s big bucks. sector to be able to talk about the funding highlighted why liberals want to censor talk concerns of the states, and really about radio by re-imposing the so-called Fairness Light was shed on CoDA operations recently the role of government, that it plays. Doctrine: when a former intern at the Bighorn Center There are 19 measures on the ballot here described what he saw when the Center in Colorado, and the Bell is serving as In 2004, 27 million white men voted for shared space with CoDA. Isaac Smith told an information conduit for progressive George Bush, and 16 and a half million radio host Jon Caldara that a parade of organizations and progressive leaders. men voted for John Kerry. And so, and Democratic politicians visited CoDA’s offi ce they have been maintaining a conversa- while he worked there in 2006. The visitors Zeller praised ProgressNow, “which is known tion through Fox News and Rush Lim- included former Iowa governor Tom Vilsack for its very edgy, punchy communications baugh and Michael Savage and all of their and Colorado legislators Andrew Romanoff, capacity.” She might have had in mind its media, with those 27 million white men, the speaker of the House, and Alice Madden, reporter’s fi lmed attempt to interview Repub- and so it is a huge challenge. the House majority leader. lican Rep. Marilyn Musgrave, a vocal oppo- nent of gay marriage. The interviewer asked Secretary of State Project Musgrave to choose between stopping a gay As the murderously astute Joseph Stalin once marriage and saving a life. (Video, “Marilyn remarked, “The people who cast the votes Musgrave Attacks,” available at http://www. decide nothing. The people who count the youtube.com/watch?v=LKqvMdMV7hM.) votes decide everything.” This kind of juvenile harassment mirrors the interviewing tactics of the Nation’s Max Since 2006, Democracy Alliance partners Blumenthal, son of former Clinton aide have quietly funded the Secretary of State Sidney Blumenthal, who similarly fi lmed Project (SoS Project), a below-the-radar non- his mocking interviews of convention goers federal “527” political group. It can accept to the 2007 Conservative Political Action unlimited contributions that are not immedi- Conference (CPAC). ately publicly disclosed. Its website claims, The left’s juvenile political theater keeps donations rolling in. This grab “A modest political investment in electing The Democracy Alliance After Obama is from a ProgressNowAction video clean candidates to critical Secretary of State Democracy Alliance leaders were unusually featuring an activist harassing Rep. offi ces is an effi cient way to protect the elec- forthcoming at the panel discussion held Marilyn Musgrave (R-Colo.) in 2006. tion.” Indeed. Political observers know that during the Democratic National Conven- a relatively small amount of money can help tion in Denver this summer. At the Aug. 27 Laurie Hirschfeld Zeller of the Colorado swing a little-watched race for a state offi ce panel, “Democracy Alliance: Colorado as Democracy Alliance was also fl ummoxed: “It few people understand or care about. a Model – Donor Cooperation for Social seems to me that white men are the problem Change,” Rob Stein updated attendees on here.” Stein responded with, “White men are SoS endorses secretary of state candidates the group’s future plans and acknowledged a huge problem.” He added: who take the position that voter fraud is the diffi culties it would face, even with an largely a myth; that vote suppression is widely Obama victory. And then they have this incredible array of and solely used by Republicans; that it’s a media properties, one of which is focused waste of time to remove obviously fraudulent Stein admitted that progressive Democrats exclusively on the Christian community, names from voter rolls; and that legal require- had no clear alternatives to free market eco- basically in America, particularly the ments that voters show photo identifi cation nomics. Progressives know what they want evangelicals, one of which is focused discriminate against racial minorities. in healthcare, education and immigration on gun owners, another which is focused reform. But not in economics. Well before the exclusively on white men. That’s talk The SoS Project promotes “election protec- October fi nancial meltdown and the govern- radio. Talk radio isn’t for everybody, not tion,” but it only backs Democrats. The proj- ment bail-outs, a New York Times Sunday for most of us in this room, and it isn’t ect’s promoters fervently believe Republican Magazine article on “Obamanomics” (Aug. for most women. It is for white men, and secretaries of state like Katherine Harris in 24, 2008) acknowledged that Barack Obama they have 350 hours a week. That’s all Florida and Ken Blackwell in Ohio helped was struggling with reconciling markets with paid for in the commercial market, it’s the GOP steal the 2000 and 2004 presiden- the role of government. Said Stein: paid for by advertisers. And it serves their tial elections. “Any serious commitment to purposes every day. So it costs about a wrestling control of the country from the Are we good yet – in terms of 21st century billion dollars, and we can do it cheaper. Republican Party must include removing progressive economics? No. In my judg- So let’s say that it cost us, you know, 700, their political operatives from deciding who ment, no. We don’t have the language. 800, 900 million a year. We’re much more can vote and whose votes will count,” said We don’t have the framework. We still SoS co-founder Becky Bond to the San Fran- effi cient than they are. Because we’ve need to work on it. cisco Chronicle in 2006. Other co-founders December 2008 7 FoundationWatch include James Rucker, a former director of Selected Grant Recipients *New Organizing Fund: This 527, created grassroots mobilization for MoveOn.org The Democracy Alliance fi led corporate in 2006, runs the New Organizing Institute Political Action and Moveon.org Civic Ac- registration papers in the District of Colum- which conducts training in online political tion, and DA member Michael Kieschnick, bia in January 2005. However, little money organizing and activism. The group is headed a self-described “social entrepreneur.” passes through Alliance bank accounts by Zack Exley, who co-founded it. He was because it chooses to act as a middle man online campaign director for the Kerry- SoS strategic targeting yielded impressive linking donors to causes it deems worthy of Edwards campaign in 2004. He has worked results in 2006 and 2008. support. DA partners can divide their giving for MoveOn.org and for ’s into what Rob Stein calls the “four buckets”: 2004 campaign for the Democratic nomina- In 2006, Minnesota’s SoS candidate, Mark ideas, media, leadership training, and civic tion. According to 990-EZ forms fi led with Ritchie, beat Mary Kiffmeyer 49% to 44%. engagement. Some small contributions have the IRS, the group has accepted donations According to the Minnesota Campaign gone to the Democracy Alliance “Innovation directly from DA members George Soros Finance and Public Disclosure Board, an Fund,” which makes small grants to 501(c) ($50,000) and Deborah Rappaport ($25,000), impressive group of DA members contrib- (3) groups. as well as MoveOn.org ($13,000). uted to little-known Ritchie. They included George Soros, Drummond Pike, and Deborah There is no publicly available tally of De- *The U.S. Public Interest Research Group Rappaport. During his campaign, Ritchie mocracy Alliance-approved grants, but here Education Fund: The research organization recited well-worn liberal talking points on are the names of grant recipients and amounts acknowledges DA support for a September the electoral process. “The only means we taken from credible sources. 2008 report. have of defending ourselves is the vote, and if you want to throw out or hold accountable *Progress Now: This network of nonprofi ts *YearlyKos/Netroots Nation: The group leaders who are not doing what you want provides “a place in cyberspace for groups that holds left-wing bloggers’ convention around [Hurricane] Katrina, or the Iraq war, to coordinate and deliver their messages to acknowledged receiving DA money in the vote is your only mechanism. [...] When activists. And there’s nothing like it on the 2007. It now accepts donations through you begin to perceive that your vote is being Right,” NPR reports. It was bankrolled by BloggerPower.org, a California 501(c)(4) corporation. manipulated, it’s a sign of worry,” he said. Soros’s now defunct Fund for America and initial fi nancing came from the DA, NPR *League of Young Voters: DA members Guess what? Ritchie is currently presiding also reports. Herb and Marion Sandler’s foundation ac- over the Senate recount in Minnesota. knowledges on its 990 form (2006) providing *Election Administration Fund: the donor a DA-approved $11,000 grant to the In Ohio, Jennifer Brunner trounced her op- group raised $5.1 million–$1 million from League of Young Voters Education Fund. ponent, Greg Hartmann, 55% to 41%. In the Open Society Institute, and about $2.5 October the SoS investment paid off when million from the DA for voter registration and *Mi Familia Vota (“My Family Votes”): Brunner defi ed federal law by refusing to get out the vote efforts. The Fund is housed The Sandler’s foundation acknowledges on take steps to verify 200,000 questionable at the Tides Foundation in San Francisco. its 990 form (2006) providing a DA-approved voter registrations. SoS candidates in 2006 There are four primary recipients of the $25,000 grant to the group which registers also won their races in New Mexico (Mary Fund’s money: ACORN’s Project Vote; the immigrants to vote. Herrara), Nevada (Ross Miller), and Iowa Advancement Project; the National Com- (Michael Mauro). The group claims it spent mittee for Civil Rights Under Law; and the *United States Student Association: The about $500,000 in that election cycle. Brennan Center for Justice at New York Sandler’s foundation acknowledges on its University. 990 form (2006) providing a DA-approved In 2008, SoS Project-backed Democrats $26,000 grant to the radical student group. Linda McCulloch (Montana), Natalie Ten- *Kirwan Institute for the Study of Race nant (West Virginia), Robin Carnahan (Mis- and Ethnicity at Ohio State University: *Women’s Voices. Women Vote: New souri), and Kate Brown (Oregon) won their The politically correct institute acknowledg- research reveals that the foundation of DA races. (Only Carnahan was an incumbent.) es receiving DA money on its website. After member Susie Tompkins Buell gave an The Center for Public Integrity reported two the recent election it released a statement Alliance-sanctioned grant of $50,000 in 2007 months ago that the group had raised thus far claiming that “[m]isogyny, Islamophobia, to Women’s Voices, Women Vote, a 501(c) (3) group that it is “dedicated to increasing a mere $280,000 for the 2008 election cycle. and xenophobia made lengthy, dismaying the share of unmarried women and other That’s quite a return on investment. appearances throughout the campaign.” historically underrepresented women in the electorate.” According to IRS 8872 disclosure forms, *VoteVets: This anti-Bush group works to the SoS Project has received donations from elect Iraq and Afghanistan veterans to public *Working America: It is unclear how much several DA members, including Soros, Rob offi ce. Chairman Jon Soltz told the Center for money in DA-approved grants this 501(c)(4) Stein, Gail Furman, and Susie Tompkins Public Integrity’s Sara Fritz that the group group that is the “community affi liate of the Buell. has received DA funding. AFL-CIO” has received. It claims to work “against wrong-headed priorities favoring 8 December 2008 FoundationWatch the rich and corporate special interests over YP4, received a DA-approved grant of year before. Contributors include the Susie America’s well-being.” $50,000 from the Gill Foundation in 2006. Tompkins Buell Foundation ($50,000) and the Gill Foundation ($16,420). *Young Democrats of America: The Alli- *New Democratic Network (NDN): This ance acknowledges on its website approving activist group, which encompasses the NDN *Association of Community Organiza- a grant to this group which has been the Political Fund, the New Politics Institute, and tions for Reform Now (ACORN): ACORN offi cial youth arm of the Democratic Party the Hispanic Strategy Center is headed by is the radical activist group active in housing since 1932. Since 2002, YDA has operated Simon Rosenberg, a political strategist. The programs and “living wage” campaigns in independently of the Democratic National DA approved a grant to this group in 2006 inner cities neighborhoods. In recent years Committee (DNC) as a nonfederal 527 but the amount is unknown. it has been implicated in many fraudulent group. voter-registration schemes. The DA ap- proved a grant to this group in 2006 but the *Drum Major Institute for Public Policy: amount is unknown. DA founder Rob Stein The Alliance acknowledges on its website called ACORN “a grassroots, tough-minded, approving a grant to this progressive think liberal-left organization. I think it’s a very tank. It has received $104,125 from the Open responsible organization.” Society Institute since 2005. *EMILY’s List: While the political action *Center for American Progress: Former committee boasts that it is “the nation’s Clinton White House chief of staff John largest grassroots political network,” it is Podesta, who now heads President-elect essentially a fundraising vehicle for pro- Obama’s transition team, heads the think tank abortion rights female political candidates. that has received at least $9 million through EMILY, according to the group’s website, the DA. CAP aspires to be a counterpart to “is an acronym for ‘Early Money Is Like the Heritage Foundation, uniting disparate Yeast’ (it helps the dough rise).” The group’s factions on the left. CAP spin-offs include president is veteran political fundraiser Ellen Campus Progress and the Center for Ameri- Malcolm. The DA approved a grant to this can Progress Action Fund, a 501(c)(4) lobby group in 2006 but the amount is unknown. group. Reporter Robert Dreyfuss wrote that, “It’s not completely wrong to see [CAP] as a *America Votes: Another get-out-the-vote shadow government. (The Nation, March 1, Alliance member Michael Kieschnick 527 organization, it is headed by Maggie Fox, 2004) (For more on CAP, see Organization founded Working Assets and the Secre- a former Sierra Club offi cial. It received a $6 Trends, May 2007) tary of State Project. million funding commitment from Soros. *Progressive Majority: This group focuses *Media Matters for America: Headed by on developing a “farm team” of progressive *Air America: The struggling left-wing former conservative journalist David Brock, candidates to win state and local-level elec- talk radio network reportedly received a it monitors “conservative misinformation in tions. Its founder and president is Gloria funding commitment of at least $8 million the U.S. media.” DA members have given A. Totten, formerly political director for from the Alliance, and fi led for bankruptcy the group at least $7 million. Sen. Hillary NARAL (National Abortion Rights Action protection in 2006. DA member Rob Glaser Clinton (D-New York) helped create Media League) Pro-Choice America. DA grants to has invested at least $10 in the network. Matters. Kelly Craighead, now DA managing this group total at least $5 million. It was purchased by the family of Mark director and one of Clinton’s closest friends, Green, a perennial New York offi ce-seeker was a top paid advisor to Media Matters. *Citizens for Responsibility and Ethics in who founded the New Democracy Project, (For more on this group, see Foundation Washington (CREW): This Soros-funded a left-wing policy institute. Watch, July 2007) group sees itself as a left-wing version of Judicial Watch, the conservative legal group. *Sierra Club: The infl uential environmen- *Democracy: A Journal of Ideas: DA CREW executive director Melanie Sloan is a tal organization—#7 on GreenWatch.org’s partners have given $25,000 to the start-up former U.S. Attorney and Democratic coun- “Gang Green” list of the worst environmental publication founded by former White House sel for the House Judiciary Committee. activist groups—entered into a “strategic al- speechwriters Andrei Cherny and Kenneth liance” with the United Steelworkers union. Baer. Soros’s Open Society Institute gave *Center for Progressive Leadership: This (See Labor Watch, October 2006) The DA the journal $50,000. organization wants to mirror the conservative approved a grant to this group in 2006 but Leadership Institute. The center’s website the amount is unknown. *People for the American Way (PFAW): In describes the group as “a national political 2006 the DA approved a grant of unknown training institute dedicated to developing *Center for Community Change: This size to this vocal activist group founded by the next generation of progressive political group dedicated to defending welfare entitle- Alliance member Norman Lear. Its president leaders.” CPL President Peter Murray said in ments and leftist anti-poverty programs was emeritus is Ralph Neas. A spinoff group, 2006 that DA members’ grants boosted CPL’s founded in 1968. Activist Deepak Bhargava Young People For the American Way, a.k.a. budget to $2.3 million, up from $1 million the is its executive director. December 2008 9 FoundationWatch

*USAction: This group works closely with Lewis B. Cullman organized labor. It is the successor to Citizen The “Partners”: -fi nancier and philanthropist Action, the activist group discredited by its involvement in the money-laundering Who’s Who in Robert H. Dugger (DA board member) scandal to re-elect Teamsters president Ron -managing director of Tudor Investment Carey in the late 1990s. the Democracy Corp. (asset management) *Catalist: Formerly called Data Warehouse, Alliance Albert J. Dwoskin (DA board member) this company was created by Clinton aide Harold Ickes and Democratic operative Laura -Northern Virginia real estate developer; Quinn. Ickes, who has been critical of DNC The Democracy Alliance has at least 100 chairman of Catalist chairman Howard Dean, aims to create a donor-members, both individuals and orga- sophisticated get-out-the-vote operation. nizations. However, it has not made available David A. Friedman Soros put $11 million at Ickes’s disposal an offi cial list of its “partners.” Here are some - philanthropist and self-described centrist because he distrusts Dean, the Washington known DA members: Post reported. The chairman of Catalist is Gail Furman (DA board member) Albert J. Dwoskin, a DA board member and AFL-CIO -Manhattan psychologist; member of the real estate developer in Fairfax, Virginia. -an institutional member Council on Foreign Relations

*Employment Policy Institute: The chair- Fred Baron (died Oct. 30) man of this liberal think tank is Gerald -the “King of Torts” and one of America’s W. McEntee, president of the American wealthiest plaintiffs’ attorneys; founded Pub- Federation of State, County and Municipal lic Justice (formerly Trial Lawyers for Public Employees (AFSCME). Other labor fi gures Justice); was fi nance chairman for Sen. John such as SEIU’s Andrew Stern are on the Edwards’s 2004 presidential campaign. EPI board.

*Center on Budget and Policy Priorities: Anne Bartley This left-leaning think tank is headed by -step-daughter of Winthrop Rockefeller; former Carter appointee Robert Greenstein, trustee of Rockefeller Philanthropy Advisors, a MacArthur Foundation “genius” award director of Bauman Family Foundation. recipient. Patricia Bauman *AmericanForeignPolicy.org: University -Bauman Family Foundation. of Connecticut law professor Richard Parker claims to have received funding from three Ann S. Bowers Pat Stryker DA partners for “a major study” for the DA -widow of Intel co-founder Robert Noyce, “on investment gaps and needs in promoting inventor of the integrated circuit Chris Gabrieli a progressive national security and foreign -software entrepreneur; sought Democratic policy.” Rutt Bridges nomination for governor in -founded Advance Geophysical; ran for 2006 *Progressive States Network (legal name: governor of Colorado in 2005 but dropped Progressive Legislative Analysis Network): out of the race Tim Gill has received grants from the Stephen M. Sil- -created Quark, the design and layout pub- berstein Foundation ($174,000 since 2005), William Budinger lishing program; funds gay rights groups Barbra Streisand Foundation ($10,000 in -investor who founded and ran Rodel, Inc. 2006), and Open Society Institute ($7,024 Davidi Gilo in 2006). Mark Buell and Susie Tompkins Buell -high-tech entrepreneur and founder of Vyyo -businessman; wife co-founded clothier Inc.; his wife, Shamaya, created Winds of Matthew Vadum is Editor of Foundation Esprit with ex-husband, Douglas Tompkins, Change Foundation Watch. James Dellinger, who was Execu- who is president of the Foundation for Deep tive Director of Capital Research Center’s Ecology Rob Glaser GreenWatch project, left CRC in November. -heads the online multimedia company Research assistance was provided by CRC Anna Burger (DA board member, vice Intern Josh Jones. He is a recent graduate of RealNetworks chairman) the University of Alabama, where he majored -secretary-treasurer of SEIU and chairs in political science. Steven M. Gluckstern Change to Win, the labor federation break- -a former chairman of the DA, investment FW away from the AFL-CIO banker 10 December 2008 FoundationWatch

Connie Cagampang Heller Steven Phillips (DA board member) Security/Foreign Policy New Ideas Fund -philanthropist, advisor for Heller Philan- -attorney and political organizer; founded (newideasfund.org) with DA funding thropic Fund at Tides Foundation PowerPAC.org in California; son-in-law of DA members Herb and Marion Sandler Service Employees International Union Rachel Pritzker Hunter (SEIU) -of the Hyatt Hotel Pritzkers Drummond Pike (DA board member, -an institutional member treasurer) Rob Johnson (DA board member) -founder of the ultra-left Tides Foundation Stephen M. Silberstein -partner at Impact Artist Management -California philanthropist interested in civil Andy and Deborah Rappaport rights disclosed on donation forms his as- Michael Kieschnick -identifi ed as members of DA by the sociation with the DA -founded Working Assets which donates a newspaper (Nov. 2); funded fi rst YearlyKos portion of long distance charges to progres- (now Netroots) convention in 2004; founded Bren Simon sive causes; founded Secretary of State New Progressive Coalition LLC, (”Your -president of MBS Associates LLC, a prop- Project political giving advisor”) technically a for- erty management and development fi rm; profi t corporation that allows individuals to husband, Melvin, is part owner of Indiana John Luongo “invest” in political “mutual funds” Pacers and runs the Simon Property Group, -venture director of Lightspeed Venture developer of shopping malls Partners; previously a senior vice president at Oracle Corp. George Soros (and son Jonathan) -high-fl ying fi nancier founded Open Society Gara LaMarche Institute; gave $24 million to anti-Bush 527s -president and CEO of the Atlantic Philan- in 2004 thropies; was vice president of Open Society Institute Rob Stein (DA board member, founder) -an attorney who was chief of staff of the U.S. Norman Lear Department of Commerce and a senior of- -veteran television producer, he is the fi cial on the Clinton-Gore transition team founder of People for the American Way, the Lear Family Foundation, and Business John Stocks Enterprise Trust -former chief of staff for Democrats in Idaho state senate, now deputy executive director Anne Bartley Peter B. Lewis at National Education Association -billionaire insurance magnate founded Pro- Rob Reiner gressive Casualty Insurance Co.; gave $23 -Hollywood actor-director; chairman of Patricia Stryker million to anti-Bush 527s in 2004 Parents Action for Children; backed unsuc- -granddaughter of Homer Stryker, founder cessful California Proposition 82 (preschool of Stryker Corp. Rodger MacFarlane for four year olds) -senior adviser to the Gill Foundation, is Michael Vachon (DA board member) also a DA partner. Charles Rodgers (DA board member) -spokesman and political director for So- -president of the New Community Fund ros Robert McKay (DA board member, chairman) Simon Rosenberg Albert C. Yates -Taco Bell heir writes for the Huffi ngton -founder and president of the New Democrat -former president of Colorado State Uni- Post Network (NDN); ran unsuccessfully in 2005 versity for the DNC chairmanship Herb Miller - real estate developer and Democratic Party Deborah Sagner (DA board member) Please remember fundraiser. -philanthropist, social worker Capital Research Center in your will and Philip Murphy Herb and Marion Sandler -national fi nance chairman for the Demo- -co-founded and later sold Golden West estate planning. cratic National Committee Financial Corp. to Wachovia, which made the terrible decision to purchase its portfolio Alan Patricof of subprime loans; gave $13 million to anti- Thank you for your support. -co-founder of private equity fi rm Apax Bush 527s in 2004 Partners; was chairman of the White House Terrence Scanlon Conference on Small Business (1993-95) Guy Saperstein President -trial lawyer who created the National

December 2008 11 FoundationWatch PhilanthropyNotes The Catholic Campaign for Human Development has decided the radical community group ACORN may not be eligible for grants derived from its annual collection taken up each November at all Roman Catholic churches. CCHD is looking into whether the ostensibly nonpartisan ACORN, which offi cially endorsed Barack Obama for president, used money in a way that might jeopardize CCHD’s tax-exempt status. CCHD has temporarily suspended raising funds for ACORN.

Meanwhile, ACORN silenced dissidents on its national board by fi ring them. Chief organizer Bertha Lewis said “Karen Inman and Marcel Reid were removed for violating the board’s code of conduct.” The two had asked the board for documents concerning efforts by ACORN’s founder and former chief organizer, Wade Rathke, to cover up his brother’s embezzlement of close to $1 million in ACORN funds. In the old days the inquiries by Inman and Reid would have been called due diligence.

The Greenlining Institute’s politically-correct scheme to shake down foundations got its comeuppance. Accord- ing to the Wall Street Journal the pressure group invited representatives from 50 large foundations for a meeting to discuss “diversity in philanthropy.” Not one foundation sent a representative. Last summer 10 of California’s largest foundations agreed to pay millions of dollars to “minority-led nonprofi ts” in order to head off legislation pushed by Greenlining that would have forced the state’s foundations to disclose the racial makeup of their boards, staffs and grantees. A profi le of the Greenlining Institute ran in the August 2008 Foundation Watch.

The California Supreme Court has decided to review the constitutionality of the voter-approved state constitutional amendment that bans same sex marriage in the state. Proposition 8 was approved by voters 52% of 48% last month. This means the California court has actually decided to review the constitutionality of the state’s constitution.

The formidable liberal group MoveOn.org said it raised an astounding $88 million for the Obama campaign. The group is offering beautiful commemorative “Yes We Did” stamps and posters for sale. Jimmy Carter never had nice merchandise like this. All Americans got was Billy Beer.

Former President Bill Clinton has agreed to limit his philanthropic activities if his wife becomes secretary of state, the Chronicle of Philanthropy reports. Capital Research Center president Terrence Scanlon remained skeptical. “The potential for confl ict is enormous,” the newspaper quoted Scanlon saying. The February issue of Foundation Watch profi led the William J. Clinton Foundation.

Colorado-based Focus on the Family, said it intends to lay off more than 200 of its workers or roughly 20% of its workforce as part of a belt-tightening efforts. The group is No. 158 on the Chronicle of Philanthropy’s most recent Philanthropy 400, which ranks charities that collect the most from private sources.

Meanwhile, atheist groups are escalating their campaigns, the Wall Street Journal reports. Billboards sponsored by the Freedom From Religion Foundation read “Beware of Dogma” in huge Gothic type, while ads on the sides of buses from the American Humanist Association ask, “Why believe in a god? Just be good for goodness’ sake.”

(This GS Watch is the fi rst appearance of this regular feature in Philanthropy Notes. –Editor)

Treasury Secretary Henry Paulson’s fl ip-fl op on how to use the $700 billion in bailout money has hurt his reputation, frightened the stock market, and emboldened special interest lobbyists who want in on the money. Originally the funds were to be used to buy distressed assets from banks but now the plan is to require certain banks and insurance com- panies to sell preferred stock to the federal government, and well, umm, no one’s really sure what the plan is. Paulson’s former employer, Goldman Sachs, was profi led in the October 2008 Foundation Watch.

12 December 2008