A Culture of Transparency at the World Resources Institute

Guest blogger Steve Barker from the World Resources Institute explains how transparency about funding can complement overall efforts to maintain intellectual independence. The views expressed in this blog are those of the author alone, and may not reflect the views of Transparify.

There’s an old saying that knowledge is power. That’s why transparency—or open access to information—is a key tenet that guides the work of the World Resources Institute.

Take one of our key projects, The Access Initiative. TAI is the world’s largest network dedicated to ensuring that citizens have the right and ability to influence decisions about the natural resources that sustain their communities. Working with more than 250 civil society groups in more than 50 countries, TAI helps citizens secure access to environmental information, access to public participation, and access to justice. By securing these rights, citizens are aware of the environmental decisions that directly impact their lives and livelihoods—and they’re empowered to hold governments accountable, organize social and political change, and demand improvements. 

Transparency is important not just for how citizens interact with powerful government and business interests, but also for organizations like ours that accept funding from a variety of donors. As Upton Sinclair once said, “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” Understanding how an organization is funded helps observers to judge that organization’s independence.

Without proper protections and transparency, donations could have undue influence on think tank research and policy recommendations.

How World Resources Institute Practices Transparency

That’s why World Resources Institute (WRI) made the decision to be completely transparent about where its funding comes from, and how donations support the valuable work that we do.

For example:

  • Information about WRI’s funders is available on our website, www.wri.org. With just two clicks from our homepage, any visitor can view a spreadsheet with a specific breakdown of donations ranked by size, covering 85 percent of our fiscal year 2013 funding. The remaining 15 percent comes from many small donors. The spreadsheet includes the name of the donor, the amount donated, and the program goal supported. In a separate document, we list all of our funders, including individuals who donated to WRI.
  • Many organizations place donations from corporate foundations in a “foundations” category. WRI categorizes these donations as “corporate” funding, an extra step towards transparency.
  • WRI also observes transparency in our internal communications. Transparency guides interactions between accounting and our program staff. For example, we share our financial results and indirect costs freely throughout our organization. And our leadership displays appropriate transparency in communications to staff and the public around major institutional decisions—including financial decisions.

Transparency Matters for WRI’s Reputation for Independence

Transparency supports one of WRI’s core values: independence. At WRI, we believe that our ability to achieve our mission depends on research and program work that rises above partisan politics, institutional or personal allegiances, or sources of financial support. When accepting donations, we convey to our partners and funders our strict commitment to unbiased judgment in our research findings.

WRI works closely with corporate partners and takes corporate donations in part because the private sector moves faster and can be quite influential with the public sector. But WRI makes clear to funders that our work product cannot be changed or require sign off from a donor—the integrity of our research and our on-the-ground projects always comes first.

WRI prides itself on rigorous, independent analysis. Financial transparency helps reinforce our reputation. This candor ensures our credibility, and helps build trust for WRI as an independent organization that works to “turn big ideas into action.”

Steve Barker is the Chief Financial and Administrative Officer of the World Resources Institute, a global research organization based in the US that works closely with leaders to sustain a healthy environment.

CGD’s Decision to Walk the Transparency Walk

Guest bloggers Katie Douglas Martel and Todd Moss from the Center for Global Development explain why they decided to publish how their think tank is funded. The views expressed in this blog are those of the authors alone, and may not reflect the views of Transparify.

We at the Center for Global Development (CGD) believe strongly that transparency and accountability can foster better development outcomes. That’s why our policy research and ideas include open government contracting, biometric identification systems, extractive revenue management, illicit financial flows, as well as more general work on the benefits of openness.

Our transparency work led to a logical question: If it’s is good for development, what about development think tanks? What’s more, we were receiving a lot of very good questions from our supporters and networks about where our money comes from and where we apply it. So, spurred in part by our friends at Transparify and frank discussions about think tank strategy by Enrique Mendizabal’s On Think Tanks blog and Andrew Selee’s book What Should Think Tanks Do?, we decided it was time to up our game on our own financial transparency.

Thus, we launched CGD’s How We’re Funded in March 2014. This web page, currently in a Beta version (improvements coming!), lists all grants and donations we received in 2013 and so far in 2014 above $100,000 or roughly anything more than 1% of our annual budget. We will also continue our practice of disclosing the membership of the Center’s Partners Council (corporate and individual contributors who give $2,500 and above) and CGD Society ($150-$2,500). Donations received from these groups are also aggregated in the Funding table.

How We’re Funded goes beyond what’s traditionally disclosed in US tax forms and annual reports. A benefit of our approach is that we are able to show how multi-year grants are allocated over time, as opposed to simply showing the year in which a grant was awarded and providing a potentially misleading view of our revenue streams. (The tax data can inadvertently and falsely suggest volatility.)

We also have another agenda here:we hope that our move towards transparency and posting How We’re Funded will encourage other nonprofits to do the same. By aiming to raise the standards for the whole field, we hope to bolster the credibility of think tanks as independent voices.

CGD conducts research with the aim of shaping rich countries’ and development actors’ policies that affect poor people in the developing world. Katie Douglas Martel is Deputy Director of Institutional Advancement, and Todd Moss is Chief Operating Officer and a Senior Fellow.

More than 20 Think Tanks Join to Promote Transparency

Several think tanks worldwide have now agreed to promote transparency by putting more information on their funding online. Transparify has tried to directly contact all of the over 160 think tanks we are rating, and by now, many of them have gotten back to us. To date, more than 20 think tanks have already committed themselves to achieving a five star transparency rating over the coming weeks by publishing details on who funds them on their websites.

In total, think tanks from more than 12 countries have decided to embrace transparency. The ranks of transparent research institutions worldwide has to date grown by five think tanks in Africa, at least three in Asia, at least eight in Europe, and currently five in North America. (We will release the names of all leading institutions later this month, when we have the completed our data set.)

The large geographical spread shows that financial transparency is possible in a wide range of political, legal and administrative contexts, leaving few excuses for opacity by those think tanks that still lag behind. At the same time, think tank critics should note that several think tanks immediately responded positively to our request, showing that many – though not all – institutions are very open to constructive engagement on this issue and feel that they have confidence in the integrity of their work.

Note that the figures above do not include the (small minority) of think tanks that were already highly transparent when we initially assessed them.

Transparify hopes that more think tanks will boost the credibility of their research by committing themselves to transparency before Transparify releases its complete rating results later this month and honours the leaders in the field.