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Americans for Prosperity (AFP), a section 501(c)(4) organization, and Americans for Prosperity Foundation (AFP Foundation), a section 501(c)(3) organization, are "committed to educating citizens about economic policy and a return of the federal government to its Constitutional limits." On its website it states that it supports "cutting taxes and government spending in order to halt the encroachment of government in the economic lives of citizens by fighting proposed tax increases and pointing out evidence of waste, fraud, and abuse."^[1]

AFP was one of the lead organizations behind the Tax Day Tea Party protests April 15, 2009. Its Director is Art Pope, an ex-legislator who has been dubbed "The Knight of the Right" by Raleigh News and Observer journalist Rob Christensen.^[2]

In mid-2009, Americans for Prosperity launched an advertising and advocacy campaign opposing U.S. health care reform named Patients United Now.^[3]

On its website it describes its "featured partners" as being the Heartland Institute's International Conference on Climate Change, the Internet Freedom Coalition and Townhall.com.^[4]

Contents 1 Background and history 2 Tobacco industry involvement 3 Involvement in protesting health care reform 3.1 Anti-Astroturf signs 4 Hot air tour 5 No stimulus 6 State budget lobbying 7 Funding 8 Personnel 8.1 Staff 8.2 National staff 8.3 State staff 8.4 Board of Directors 9 Americans for Prosperity Foundation 9.1 Board members 10 Contact information 11 Articles and resources 11.1 Related SourceWatch articles 11.2 References 11.3 External resources

Background and history

AFP was established in late 2003 as a successor to the Citizens for a Sound Economy Foundation, an industry-funded think tank,^[5] following an internal rift between Citizens for a Sound Economy and its affiliated foundation.^[6] AFP was formally affiliated with the Independent Women's Forum. Both organizations shared the same Washington address, and formerly shared most of the same operational staff.^[7] In 2008, IWF moved to separate office space.

The October 2003 Washington Times report on the formation of AFP stated, "Nancy Pfotenhauer, an executive of Citizens for a Sound Economy [CSE] in the 1990s who helped defeat Hillary Rodham Clinton's health care reform proposal, has been tapped to head a new national advocacy organization to protect 'every American's fundamental right to pursue prosperity.'"^[8]

"Before joining the Independent Women's Forum in 2001, [Nancy] Pfotenhauer headed the Washington office of Koch Industries, a conglomerate with holdings in oil and gas, chemicals, minerals, ranching, and securities; Koch Executive Vice President David Koch was a founder and a chairman of the CSE Foundation and is now on the AFP board," reported the National Journal in November 2003. "Pfotenhauer worked with Koch in the mid-'90s, when she was executive vice president of both CSE and the CSE Foundation. But she has an even longer history with AFP board member Walter Williams, for whom she was a graduate research assistant at George Mason University 20 years ago."^[9]

Tobacco industry involvement

AFP advocates pro-tobacco industry positions on issues like cigarette taxes and clean indoor air laws. The name "Americans for Prosperity" will sound familiar to tobacco prevention policy advocates, as Americans for Prosperity worked around the U.S. in recent years to defeat both smokefree workplace laws and cigarette excise tax increases.

Americans for Prosperity opposed a proposed Texas smoking ban in 2005. According to the Fort Worth Star-Telegram, “A proposed statewide smoking ban appears all but dead, supporters acknowledged Monday as they waged a frantic battle to bring the bill up for a vote in the Senate. ‘I think the bill is dead,’ said Peggy Venable, Texas director of Americans for Prosperity, which opposed the legislation, arguing that it is an intrusion on private-property rights." The strategy of portraying smoking as a "property right" can be traced to Philip Morris which, in the mid-1990s, introduced bills in state legislatures nominally to protect property rights as a means of fighting smoking bans. Venable called the smoke-free measure a "reckless expansion of government" that "set a dangerous precedent." Although Venable did not testify against the bill directly on behalf of the tobacco industry, the Houston Chronicle reported in 2007 that Americans for Prosperity had, in fact, been underwritten by tobacco companies in other states.^[10][11]

Americans for Prosperity opposes smoking bans by using slippery-slope arguments ("Where will it stop?") and erroneous arguments that smoking restrictions are economically damaging.^[12][13]

Americans for Prosperity (AFP) also opposed an Illinois state tax on cigarettes in 2008, claiming it would eliminate jobs.^[14]

AFP opposed a clean indoor air law in Washington, D.C. in 2006.^[15]

AFP opposed a clean indoor air law in Kansas City, portraying the issue as one of personal liberty and economics rather than public health.^[16]

Involvement in protesting health care reform

In 2009 Americans for Prosperity, along with The 912 Project, was one of the conservative groups involved in organizing "town hall protests" and "recess rallies" where participants oppose health care reform by rambunctiously shouting down members of Congress while they are holding public meetings to inform the public about the proposals.^{[citation needed]}

AFP started a group called "Patients First" to oppose health care.^[3] Patients First conducts bus tours around the country to create opposition to health care reform. Americans for Prosperity/Patients First visit cities and speaks to rally people and encourage them to oppose health care reform by bringing up frightening prospect like "death orders" and "death sentences." Speakers typically liken Democratically-proposed health care reform to the regimes of Mugabe, Hitler, Stalin, and Pol Pot. The speaker typically repeats the discredited conservative idea that Democratic health care reform will mandate physician-assisted suicide or death for older members of society. "Adolf Hitler issued six million end of life orders -- he called his program the final solution. I kind of wonder what we're going to call ours," one speaker said. The speaker further advises audience to "go to offices of members of Congress and put the fear of god in them."^[17]

Anti-Astroturf signs

After being accused of astroturfing for corporate interests, Americans for Prosperity volunteers started making hand-made signs for rally participants to gave more of an appearance of an actual grassroots crowd. Many of the pre-made signs had small “AFP” markers on them. Speakers at AFP rallies started mocking the "AstroTurf" and "Brooks Brothers" themes in nearly every speech at the rallies.^[18]

Hot air tour

During 2008, Americans for Prosperity ran its Hot Air Tour campaign, a hot air balloon cross-country tour with the slogan, "Global Warming Alarmism: Lost Jobs, Higher Taxes, Less Freedom." According the the Hot Air Tour website, "Climate alarmists have bombarded citizens with apocalyptic scenarios and pressured them into environmental political correctness. It's time to tell the other side of the story. Americans for Prosperity is working hard to bring you the missing half of the global warming debate. What will the impacts of reactionary legislation be for you, your family and our economy?"^[19]

No stimulus

Beginning in 2009, Americans for Prosperity launched the website nostimulus.com, a grassroots website intended to address concerns regarding government spending and growth. ^[20] The site also contained a petition against the American Recovery and Reinvestment Act that became so popular that it crashed the website in early February 2009.^[21]

State budget lobbying

"According to the Americans for Prosperity Web site, some 28 Republicans in the Wisconsin Legislature signed a 'no tax increase' pledge with the organization," along with two Democrats, wrote Dave Zweifel in October 2007. He blamed pressure from no-tax groups on delays with Wisconsin's state budget, more than three months overdue. When these legislators "already had announced they had closed their minds -- even to an increase in cigarette taxes to expand health care to kids -- how really could there be compromise?" he asked. ^[22]

Americans for Prosperity, which held an anti-tax rally in Madison on October 17, 2007, ^[23] has also been active in other states. In March, Americans for Prosperity put pressure on Kansas legislators as they debated their state budget. The group patched in calls from residents to legislators' offices, but "they weren't quite clear why they were calling in," said one office assistant, referring to the callers. "Something about state spending," but the Kansans "couldn't tell her who had made the call or any specifics on what they were told," reported the Capital-Journal in Topeka. ^[24]

Funding

On its website, Americans For Prosperity states that "AFP gets its support from individuals and corporations which share its vision." However, it does not disclose which corporations fund its operations.^[25]

Kevin Grandia, of DeSmogBlog, who has researched funding the AFP states on his blog that:

The AFP is the third largest recipient of funding from the Koch Family Foundations, behind the Cato Institute and the George Mason University Foundation. Before 2003, when the AFP was still named the Citizens for a Sound Economy Foundation, it received $18,460,912 in funding. 84% of that funding came from the Koch Family Foundations ($12,906,712) and the Scaife Family Foundations ($2,510,000). Koch Family Foundations is funded by Koch Industries. According to Forbes, Koch Industries is the second largest privately-held company, and the largest privately owned energy company, in the United States. Koch industries has made its money in the oil business, primarily oil refining. Presently, it holds stakes in pipelines, refineries, fertilizer, forest products, and chemical technology. Americans for Prosperity is also connected to oil giant ExxonMobil. According to ExxonSecrets, between the years 1998-2001, Citizens for A Sound Economy and Citizens for a Sound Economy Foundation received $380,250 from ExxonMobil.^[26]

Media Transparency notes that Americans for Prosperity Foundation has received seven grants totaling $1,181,000 between 2004 to 2006. Grants to the foundation have included:^[27]

• $1,000 in 2006 from the Roe Foundation;
• $50,000 in 2005 from the Ruth and Lovett Peters Foundation;
• $5,000 in 2005 from the Armstrong Foundation;
• $125,000 from three grants over 2004 and 2005 from the Lynde and Harry Bradley Foundation; and
• $1,000,000 from the Claude R. Lambe Charitable Foundation.

In its 2007 annual IRS return, the AFP Foundation's reported that its revenue was $5,695,000 with expenditure of $6,768,000. While the AFP Foundation ran at a loss of $1,072,000, it had a further $507,000 in reserves. Of its expenditure, $2,129,000 was spent on national office operations with just over $2.9 million allocated to the state-based chapters.^[28]

Income for the Foundation since its formation in 2003 has been^[28]:

• 2003: $3,451,636
• 2004: $1,190,470
• 2005: $3,600,966
• 2006: $4,223,218

Personnel

Staff

The first president of Americans for Prosperity was Nancy Pfotenhauer who, prior to the groups foundation in 2003, had been an executive with the Citizens for a Sound Economy Foundation.^[29] Pfotenhauer later left AFP and in 2007 joined the John McCain campaign. Pfotenhauer was simultaneously the president of the Independent Women’s Forum. From 1996 to 2001, Pfotenhauer was the director of the Washington office of Koch Industries.^[30][31]

A full staff list can be found at Americans for Prosperity - National and State staff The following are the key AFP staff members.^[32]

National staff

• Tim Phillips, President
• John Flynn, Executive Vice President and General Counsel
• Phil Kerpen, Director of Policy was paid over $89,000 in 2007;^[28]
• James Valvo, Government Affairs Manager
• Carl Oberg, Policy Associate
• Dr. Larry Hunter, Senior Fellow

State staff

• Alan Cobb, National Director of State Operations Arizona was paid over $114,000 in 2007;^[28]
• Tom Jenney, State Director, Arizona
• David Spady, State Director California
• Jeff Crank, State Director Colorado
• Virginia Galloway, State Director Georgia
• Joe Calomino, State Director Illinois
• Jim Raftis, Legislative Liaison Illinois
• Derrick Sontag, State Director Kansas
• Scott Hagerstrom, State Director Michigan
• Carl Bearden, State Director Missouri
• Travis Fitzwater, Field Director, Missouri
• Michelle Colbert, Field Director, Missouri
• Brad Stevens, State Director Nebraska
• Corey Lewandowski, State Director New Hampshire
• Colette Campbell, State Director, New Jersey
• Steve Lonegan, Senior Policy Director New Jersey was paid over $93,000 in 2007;^[28]
• Dallas Woodhouse, State Director, North Carolina
• Jack Boyle, State Director, Ohio
• Jeff Kropf, State Director, Oregon
• Stuart Jolly, State Director, Oklahoma
• Peggy Venable, State Director Texas was paid over $72,000 in 2007;^[28]
• Ben Marchi, State Director,
• Mark Block, State Director Wisconsin

Board of Directors

The following are listed as members of the Americans for Prosperity board, in the group's 2007 IRS report ^[28] and/or on its website, as of February 2009: ^[33]

• Art Pope, Director
• James C. Miller, III, Director
• James E. Stephenson, Director
• Frayda Levy, Director
• Michelle Korsmo, Secretary - paid $62,475 in 2007
• Tim Phillips, President - paid $60,646 in 2007
• Ed Frank, Treasurer - paid $60,441 in 2007

Former Board members:

• Michael Wigley, Director^[34]

Americans for Prosperity Foundation

The Americans For Prosperity Foundation (AFPF) is "a nationwide organization of citizen leaders committed to advancing every individual's right to economic freedom and opportunity. AFPF believes reducing the size and scope of government is the best safeguard to ensuring individual productivity and prosperity for all Americans. AFPF educates and engages citizens in support of restraining state and federal government growth, and returning government to its constitutional limits."^[35]

Board members

The members of the Americans for Prosperity Foundation board, as of November 2008, are:^[36]

• David H. Koch, Chairman
• Art Pope, Director
• Dr. Wayne E. Gable, Director
• Debra Humphreys, Director
• Walter Williams, Director

According to Americans for Prosperity's 2007 IRS report, the following employees are common to AFP and AFPF, with AFPF paying the following amounts for their share of salaries and benefits: ^[28]

• Michelle Korsmo - AFPF paid $96,883 in salary and $12,651 in benefits in 2007
• Tim Phillips - AFPF paid $185,843 in salary and $17,236 in benefits in 2007
• Ed Frank - AFPF paid $62,059 in salary and $5,401 in benefits in 2007

Former Board members:

• Richard Fink, Director^[34]

Contact information

Americans For Prosperity Foundation
1726 M Street NW, 10th Floor
Washington, DC 20036
Phone: 202 349-5880
Toll Free 866 730-0150
Email: info AT AFPhq.org (sub @ for AT)
Web: http://www.americansforprosperity.org

Other websites include:

• http://www.rightonline.com/
• http://www.defendingthedream.org/
• http://www.hotairtour.org/
• http://www.noclimatetax.com/

Articles and resources

Related SourceWatch articles

• Citizens for a Sound Economy
• Charles G. Koch Charitable Foundation
• Craig Dewey
• FreedomWorks
• Global warming skeptics
• Joel A. Arends

References

External resources

• News Release: "Nancy Pfotenhauer To Head Grassroots Advocacy Group," AFPF website, January 1, 2003.
• Josh Marshall, "Untitled post," Talking Points Memo, June 7, 2005.
• James Carlson, "Phone calls cause confusion: Group contacts constituents about state spending issue," The Capital-Journal (Topeka, Kansas), March 19, 2007.
• Editorial: "Not from Wisconsin," The Capital Times (Madison, Wis.), October 17, 2007.
• David Callender, "Anti-tax group rally puts Madison on national stage," The Capital Times (Madison, Wis.), October 17, 2007.
• Dave Zweifel, editorial: "Paying our share is Wisconsin 's way," The Capital Times (Madison, Wis.), October 22, 2007.
• Will Evans, "Protecting A Republican Incumbent", NPR, October 6, 2008.
• Sue Sturgis, ""The oil money behind the anti-stimulus fight," Facing South, Institute of Southern Studies, February 16, 2009.
• Jake Sherman, "Conservatives Take a Page From Left's Online Playbook," Wall Street Journal (sub req'd), August 19, 2009.
• Adele M. Stan, > Utilizing Public Airwaves, Media Mogul Murdoch Is Big Muscle Behind Fraudulent Astro Turfers, AlterNet, August 20, 2009.
• John Grooms, Creative Loafing Unhealthy lies and the truth about healthcare reform August 18, 2009
• Tim Dickinson, The Lie Machine: GOP operatives are running a secret campaign to kill health care reform, and it's based on Karl Rove's old playbook, Rolling Stone, September 23, 2009.