Does It Matter Who Funds You?

What do the American IRS and British parliament have in common? Both are beginning to look closely at think tanks amid concerns that hidden political financing and clandestine lobbying sometimes cloak themselves in the mantle of non-partisan policy research. Our new bibliography on think tank funding released today shows that think tanks’ non-profit status and associated tax and donor confidentiality privileges may have attracted a few sharks to the pool – and the pool wardens are following in their wake.

Most commentators focus on the influence of ‘big money’ on the policy landscape. However, our compilation of media stories shows that government bodies and trade unions are also thought to have vested interests that may influence the policy recommendations provided by the think tanks they fund. Some governments have apparently formed proxy “phantom think tanks” that are independent only in name.

To what extent do think tanks play the tunes ordered by their paymasters? Do some think tanks really sell policy prescriptions for cash? Or are there more subtle influences at work, like self-censorship by individual policy wonks who want to hold on to their jobs? Or is there in fact no problem at all, because donors throw coins only into the hats of those pipers whose tunes they like listening to anyway? At least one think tanker claims that donors tend to choose think tanks that hold views similar to their own, effectively arguing that their influence is limited to amplifying some of the music already being played – the musicians need not compromise.

Some observers worry especially about funders that are based abroad. If some Americans raise the alarm about the influence that donations to think tanks from foreign governments might buy inside the mighty US, what about the influence that US money could buy overseas? It’s worth remembering that in many developing countries much – if not most – think tank funding comes from foreign sources. For example, think tanks in poor landlocked Nepal are so heavily dependent on foreign donors that they reportedly “find themselves compromising their goals” in order to survive financially. But are domestic donors really preferable to foreign ones? Some Latin American think tanks reportedly feel that embracing foreign money leaves them with more independence than accepting funds from their own governments would do…

What do you think? Does it matter who funds your work? Or are other factors more important in safeguarding the independence and quality of think tanks’ policy analysis? Post a comment below. 

For your reference, our summary of the debate on think tank funding is here.

Voluntary Disclosure Can Restore Trust in Think Tanks

Guest blogger Patrick Gilroy warns that think tanks are in danger of losing their credibility. Transparify does not edit the content of guest blogs; the views expressed in this blog are those of the author alone, and may not reflect the views of Transparify.

The ‘think tank’ label still evokes notions of independence and the scholarly pursuit of knowledge, and journalists frequently cite think tanks as independent experts without simultaneously disclosing who funds them (a recent online petition laments the practices of the BBC in this regard). Yet in Washington D.C., one can observe a veritable politicization of think tanks, as avowedly ideological institutes now outnumber the more centrist or scholarly ones. With mandatory contributor disclosure not in sight, think tanks with clearly ideological purposes can still grant hidden sponsors full tax deductibility of donations under tax code section 501(c)(3).

For example, in the US it became publicly known in 2010 to what extent the billionaire Koch Brothers fund conservative think tanks. In Europe too, anecdotes of secret corporate funding of institutes staging a sort of counter-expertise are accumulating. For instance, the oil and gas firm Exxon Mobil funded London- and Brussels-based think tanks to deny climate change and depict EU policies as being based on “junk science”. Think tank networks like the Stockholm Network seem to essentially cater to interested business clients. Such stories add to a profound uncertainty about think tanks’ credibility.

Non- or under-reporting of financial details has led to widespread cynicism. Media pundits worry that “secretive think tanks are crushing our democracy”, lumping together all think tanks in the process. But not (fully) disclosing financial details does not necessarily imply malicious intent. Most balanced think tanks may just shy away from the reporting burden, or do not recognize that beyond being a democratic principle, transparency boosts their primary asset: namely, the perception of key audiences that they are intellectually independent and trustworthy. Voluntary disclosure therefore is the single best tool we have for creating a level playing field.

Because think tanks ultimately depend on this to survive and thrive they should lead by example. Annually disclosing details on who exactly funds their work is not just a sign of professionalism. It must become a strategic priority for think tank leaders worldwide to make such information available on their websites, and within initiatives such as the European Commission and European Parliament’s joint Transparency Register (where over 300 think tanks have registered so far, thereby endorsing its code of conduct). Of course, voluntary disclosure is no perfect remedy, as it is vulnerable to gaming (selective disclosure) or donor capture (anticipatory obedience) in practice.

With think tanks’ rising influence come higher expectations for responsibility. As with Odysseus binding himself to his ship’s mast, think tanks only stand to gain from transparency. Voluntary disclosure is a small step for a think tank, but one giant leap for the credibility of the craft.

Patrick Gilroy is a PhD candidate at the Hertie School of Governance within the Berlin Graduate School for Transnational Studies (BTS). In his empirical research project, situated at the nexus of international relations and organizational sociology, he researches EU-focused think tanks’ influence in European and global governance. 

Who Is Who in Thinktankistan?

Who cares about think tanks? More people than we expected! So many, in fact, that we have drawn up a list of organizations involved in researching, investigating, strengthening, monitoring, representing, rating, blogging and commenting on think tanks.

At least six blogs/sites are exclusively devoted to think tanks:

In case that makes you think that there can be nothing new under the think tank sun, visit the Think Twice Think Tank Review Project, which strives to provide a kind of quality review process for think tank publications, or Muckety, which uses maps to locate selected think tanks within larger webs of political and economic influence.

Also of interest are the Philanthropy Roundtable and its ACR project, who both argue against greater transparency in think tank funding.

One thing that really struck us in compiling our little ‘Who is Who’ is the extent to which US organizations traditionally focusing on lobbying and campaign finance have now begun monitoring think tanks. It may come as a surprise to most think tank professionals how often their sector is discussed in the same breath as “deceptive PR”, “front groups”, and even “institutional corruption”.

Our recently published bibliography on think tank transparency illustrates some of the issues involved. Over the coming weeks this blog will explore the darker sides of hidden think tank funding, as well as illuminate some brighter aspects of transparency.

What do you think? What lines divide think tanks from lobbyists or partisan political campaigners? And how should regulators deal with think tanks that cross these lines? Contact us if you want to submit a guest blog, or post a comment below.

(Again, for your convenience, our Who is Who is here.)

Think Tanks and Media Manipulation

Guest blogger Nicholas Jones, a former BBC journalist, describes how think tanks’ efforts to shape news coverage and the political agenda in Britain have evolved over time. Transparify does not edit the content of guest blogs; the views expressed in this blog are those of the author alone, and may not reflect the views of Transparify.

In the late 1980s and early 1990s, during the rise of a modernising faction within Britain’s Labour party, reports from sympathetic think tanks helped to drive the reform of the party’s policies while it was in opposition. The Institute for Public Policy Research (IPPR) in particular helped to drive the rethink from which the revamped ‘New Labour’ party emerged. Reporting the IPPR’s work for the BBC – which is a public broadcaster – could be rather tricky. I always insisted on including a clear health warning indicating that these were policy proposals being made by a “left of centre” or “Labour-leaning” think tank.

On reflection, I could have been even more explicit when commenting on the agenda for change being proposed by an array of think tanks sympathetic to ‘New Labour’. I probably did not explain that their work had probably been financed by Labour party donors and therefore could hardly be described as “independent research”.

When Labour won national elections under Tony Blair’s leadership and the Conservative party went into opposition, think tanks on the right stepped up their efforts to promote a Euro-sceptic agenda in parallel with a push by the right wing of the Conservative party to limit the power of the European Union and curb immigration.

These Euro-sceptic think tanks developed new ploys to manipulate the news agenda.  In an attempt to influence the BBC’s reporting they often commissioned surveys of broadcast output that backed their view that the BBC’s coverage was biased. They published interviewee counts per programme which purportedly showed that pro-European speakers far outweighed those arguing from a Euro-sceptic perspective. Such surveys were then seized on by right-wing newspapers to attack the BBC.

Today, the commissioning of public opinion polls is perhaps the most effective think tank routine for influencing the news agenda in Britain. Releasing the findings of such surveys can often generate considerable publicity, especially over holiday periods.  If the timing is right, the party donors who paid for the surveys will have given their favoured politicians a ready-made platform. Publication of a topical study or report on a controversial issue can also present a timely opportunity to influence the news agenda. Political parties get the chance to join in the debate, float policy ideas and test out public opinion.

The pressure on journalists to deliver exclusive stories has now become so strong that frequently there is a degree of collusion that readers, viewers and listeners are not aware of.  In return for being first with a headline-grabbing story line, news outlets will often fail to show due diligence and do not give an adequate health warning about the covert links between a think tank and the politicians involved; nor do they dig deep when it comes to explaining why the research was commissioned and precisely who paid for it.

Nicholas Jones worked as a BBC political and industrial correspondent for thirty years. His books include Soundbites and Spin Doctors (1995), Sultans of Spin (1999) and Trading Information: Leaks, Lies and Tip-offs (2006).  His commentaries can be accessed as his news archive.  

Why American Think Tanks Are Becoming More Transparent

Guest blogger Brooke Williams outlines her ongoing research into the funding of US think tanks. Transparify does not edit the content of guest blogs; the views expressed in this blog are those of the author alone, and may not reflect the views of Transparify.

Think tanks in the United States have been under an increasing scrutiny in the past few years, with reports of them shilling for corporate and foreign government donors and using cozy relationships with lobbyists and lawmakers to shape public policy – all without disclosing exactly who paid them how much to do it. But things are changing. Slowly.

Indeed, there is hope for transparency advocates or those who simply want to follow the money. Some of the most powerful think tanks in the country are reevaluating their policies and making decisions that could give people more access to details about who funds their work and why.

Executives at the Brookings Institution, one of the most influential think tanks in the world, have been meeting internally to try and be more transparent about donations from 19 foreign governments. This is in response to a letter the Lab@Edmond J. Safra Center for Ethics at Harvard University sent to top U.S. think tanks asking for details about donations from corporations and foreign governments. Brookings currently lists the names of donors (unless they ask to remain anonymous) in its annual report, grouped by funding ranges.

Also in response to the letters, which I sent as a part of my project on think tanks for the Lab, the National Bureau of Economic Research decided to publish its corporate donors. James Poterba, the think tank’s president, said they had to get approval from the companies first – which they eventually did for most. In July 2013, they published the list online, which shows more than a dozen companies have given between $10,000 and $25,000, including global giants such as ExxonMobil, Pfizer and General Motors.

Most think tanks were not eager to increase transparency. Most wouldn’t consider it. Common reasons provided were donors’ rights to privacy – one think tank attorney pointed to five Supreme Court rulings he said confirmed these rights – as well as the concern that other groups seeking charitable money would harass named contributors. 

But in the end, it is almost certain the information will come out one way or another. Corporations often give through their nonprofit foundations, which must disclose contributions to think tanks in tax forms. As a part of my project for the Lab@Edmond J. Safra Center for Ethics, I have built a database of these donations, which soon will be available to the public online. 

Not long after journalist and former Lab fellow Ken Silverstein wrote about corporate donors to the Center for American Progress, and as its president John Podesta moved back to a position in the White House, the think tank decided to start disclosing the names on its own.

It’s likely more think tanks will release donor names voluntarily, whether it’s due to a revolving door with the government, questions from journalists or, perhaps, simple recognition of people’s right to know how private interests are paying to shape public opinion and policies.

 

Brooke Williams is an investigative journalism fellow at the Lab at Edmond J. Safra Center for Ethics at Harvard University. Follow her on Twitter @reporterbrooke. 

Transparify Launches Blog on Think Tank Transparency

Who funds think tanks? Where does the money come from? We have dug through the websites of over 150 think tanks worldwide in an effort to find out, and are currently double-checking the results. Today, we launch the Transparify blog to share some of our preliminary findings.

Our compilation of media articles on think tank transparency shows that citizens around the world increasingly expect think tanks to reveal where their money comes from. Last year, outside calls for more transparency prompted two American think tanks, the Center for American Progress and the Atlantic Council, to disclose who funded them. Donors too have been challenged to open their books. Most recently, Senator Elizabeth Warren called on major financial sector players in the US to disclose their payments to think tanks.

Think tanks often fail to meet even minimal standards of financial transparency. We have reviewed previous research from the United States, Britain and continental Europe, and discovered that fellow data sleuths have frequently struggled to follow the money trail. In many cases, they found no financial information at all. Following in these pioneers’ footsteps, our own raters too have often returned empty handed from their online treasure hunts among think tanks in Africa, the Americas, Asia, Europe and Oceania. It seems that many think tanks still fail the transparency test.

Does it matter? We think it matters a lot (and so does at least one Nobel Prize winner). As citizens, we want to know who finances the policy recommendations that shape public debates and influence how our societies are governed and run. As researchers, we believe that being open about research agendas and funding is good practice – which is why you can find our project details online. And being former think tank wonks ourselves, we are worried that the appearance or actuality of hidden agendas is increasingly undermining the credibility of the think tank community as a whole.

We will soon release our ratings of 150+ think tanks. Until then, the Transparify blog will:

  • provide regular updates on our preliminary rating results
  • feature news, analyses and opinion pieces by experts in the field
  • release three more bibliographies on issues around think tank funding
  • provide a forum for you to share your views with other think tank wonks worldwide

We look forward to a lively debate – be part of it! Post a comment below or on future blog posts.

Sign up now for regular email updates, link up with us on Facebook, and follow us on Twitter.

 

Till Bruckner, Advocacy Manager, Transparify

Our Own Funding

To make our own funding information very findable, here is another access point (though generally we believe making accessible under "About" is indeed enough). You find our funding information here.

Otherwise we are currently completing our ratings, and taken together have evaluated more than 100 institutions, many of them three times, so we are approximating 300 ratings. We have covered think tanks on all continents, and in several languages. In the next days we will reconcile these ratings and then adjudicate them. Stay posted for updates.