Axis of Ideology Conservative Foundations and Public Policy By Jeff Krehely, Meaghan House and Emily Kernan March 2004 GIVING AT WORK 2003 1 NCRP Board of Directors NCRP Staff Michelle T. Abrenilla James Abernathy, Environmental Support Center Chief Operating Officer Christine Ahn, Institute for Food & Development Policy Gary Bass, OMB Watch Adzo Amegayibor Paul S. Castro, Jewish Family Services of Los Angeles Research Associate Lana Cowell, Greater Cleveland Community Shares (NCRP Board Secretary) John Barkhamer Louis Delgado, Philanthropy & Nonprofit Sector Program, Research Assistant Loyola University Chicago Mike Doyle, Community Shares of Illinois Rick Cohen Pablo Eisenberg, Georgetown University Public Policy Institute Executive Director Angelo Falcon, Institute for Puerto Rican Policy Andrea M. DeArment Richard Farias, Tejano Center for Community Concerns Finance and Membership Associate Margaret Fung, Asian American Legal Defense & Education Fund Robert Gnaizda, Greenlining Institute Marissa Guananja Laura Harris, Americans for Indian Opportunity Research Assistant David R. Jones, Community Service Society (NCRP Board Vice Chair) Rhoda Karpatkin, Consumers Union (NCRP Board Treasurer) Meaghan House Larry Kressley, Public Welfare Foundation Research Associate Julianne Malveaux, Last Word Productions Inc. Peter B. Manzo, Center for Nonprofit Management Jeff Krehely William Merritt, National Black United Fund Deputy Director Nadia Moritz, The Young Women’s Project Elly Kugler Terry Odendahl, Institute for Collaborative Change Research Assistant (NCRP Board Chair) Linda Richardson, African American Fund of Pennsylvania Taha Nasar Greg Truog, Community Shares USA Communications Assistant Bill Watanabe, Little Tokyo Service Center Kevin Ronnie Director of Field Operations Axis of Ideology: Conservative Foundations and Public Policy Jeff Krehely Meaghan House Emily Kernan Authors Kaycee Marie Misiewicz Claire van Zevern Former Research Interns Michael Derr Editor Dominic Vecchiollo Design © 2004 National Committee for Responsive Philanthropy Axis of Ideology Conservative Foundations and Public Policy TABLE OF CONTENTS 1. Introduction ............................................................................................................................5 2. Methodology ..........................................................................................................................7 3. Literature Review ..................................................................................................................10 4. Conservative Foundations Overview ....................................................................................12 5. Grants Analysis ....................................................................................................................15 6. Top 25 Grant Recipients........................................................................................................35 7. Networks and Political Connections......................................................................................37 8. Conclusion............................................................................................................................42 Appendices Appendix A — Foundation Sample ....................................................................................44 Appendix B — Nonprofit Recipients of Conservative Public Policy Grants ........................46 Appendix C — Interview Findings......................................................................................54 Appendix D — Foundation Profiles....................................................................................57 Notes ........................................................................................................................................70 AXIS OF IDEOLOGY: CONSERVATIVE FOUNDATIONS AND PUBLIC POLICY 3 About NCRP: The National Committee for Responsive Philanthropy is an independ- ent nonprofit organization founded in 1976 by nonprofit leaders across the nation who recognized that traditional philanthropy was falling short of addressing critical public needs. NCRP’s founders encouraged foundations to provide resources and opportunities to help equalize the uneven playing field that decades of economic inequality and pervasive discrimination had created. Today NCRP conducts research on and advocates for philanthropic policies and practices that are responsive to public needs. To obtain more information about NCRP or to make a membership con- tribution, please visit www.ncrp.org or call (202) 387-9177. 4 NATIONAL COMMITTEE FOR RESPONSIVE PHILANTHROPY Executive Summary In 1997, NCRP produced Moving a Public Policy Agenda: The Strategic Philanthropy of Conservative Foundations, which documented the grantmaking activities and strategies of 12 of the nation's largest and most visible conservative foundations.1 In particular, the study exam- ined grants made to public policy nonprofits from 1992 through 1994, and also profiled the major grant recipients, reviewing their history, leadership, strategies and policy achievements. It was the first major attempt to document the impact that these philanthropic institutions had on politics and society. In addition to analyzing the grants these foundations made, the report also reviewed materials directly from these foundations and their grantees, as well as relevant media reports and literature reviews. The 1997 study concluded that conservative Ideas: Conservative Think Tanks in the 1990s. This foundations and their grantees had achieved a report provided an in-depth analysis of the top 20 respectable and enviable level of effectiveness conservative think tanks in existence at the time. It because of seven factors: assessed their operations, areas of policy interest, marketing and communications strategies, gover- The foundations bring a clarity of vision and nance structure and types of financial support, strong political intention to their grantmaking including foundations, corporations and individuals. programs; Both of these publications had a significant impact Conservative grantmaking has focused on build- on the philanthropic community and continue to be ing strong institutions by providing general oper- influential today. NCRP has often received inquiries ating support, rather than project-specific grants; from the press, researchers, and nonprofit organi- The foundations realized that the state, local, and zations about updating this research. neighborhood policy environments could not be From a political perspective, NCRP's earlier work ignored in favor of focusing solely on the federal on conservative philanthropy was relevant and well level; timed. The data analyzed in the first report reflected The foundations invested in institutions and grantmaking activity in the years immediately projects geared toward the marketing of conser- preceding the Republican takeover of Congress in the vative policy ideas; 1994 elections. The second report came out as the The foundations supported the development of Democratic and Republican parties were gearing up conservative public intellectuals and policy for what would prove to be the most contentious leaders; presidential election in U.S. history. The information The foundations supported a wide range of that conservative public policy institutions—thanks policy institutions, recognizing that a variety of in large part to funding from conservative strategies and approaches is needed to advance a foundations—were providing to candidates for public policy agenda; and office had a substantial impact on the issues that The foundations funded their grantees for the were debated during election years in the mid-to late long term, in some cases for two decades or 1990s. more. Since the 2000 elections, conservative law- makers have expanded their power, controlling Moving a Public Policy Agenda was well essentially all three branches of the federal received in the philanthropic community as well as government. According to William Greider, George in more mainstream publications and venues. The W. Bush represents the third and most powerful research was presented in a number of forums, wave in the right's attack on liberalism. The first including the annual meeting of Council on wave of the attack came from Ronald Reagan, who Foundations, and was featured in media outlets such organized the right around many ideological slogans as The Nation, National Public Radio's "Morning for reform and proved the viability of regressive tax Edition," and The Washington Post, to name a few. cuts. Newt Gingrich represented the second wave Due to the success of the 1997 report, NCRP and gave Republicans control of Congress for the first followed up the study in 1999 with $1 Billion for time in two generations. This imbalance of power AXIS OF IDEOLOGY: CONSERVATIVE FOUNDATIONS AND PUBLIC POLICY – EXECUTIVE SUMMARY © National Committee for Responsive Philanthropy, March 2004 1 has allowed President George W. Bush to govern penchant for waging war, curtailing civil liberties, without having to compromise his domestic or and slashing taxes and social spending. It is critical, foreign agendas.2 Widespread Republican control of then, to revisit NCRP's past work on conservative state governorships and legislatures provides the right philanthropy, expanding the number of foundations with more opportunities to implement and solidify its that were originally studied, as well as consider the agenda. With the strong presence