DonorsTrust (DT) is a 501(c)(3) non-profit started in 1999 "to ensure the intent of donors who are dedicated to the ideals of limited government, personal responsibility, and free enterprise." Along with its supporting 509(a)(3) organization Donors Capital Fund (DCF), it is a spin-off of the Philanthropy Roundtable, a coordinating body for conservative foundations founded by Whitney L. Ball, who passed away in 2015. The current president and CEO of DCF and DT is Lawson R. Bader, former president of the Competitive Enterprise Institute. Both funding organizations are "donor-advised funds," which means that the fund creates separate accounts for individual donors, and the donors then recommend disbursements from the accounts to different non-profits. They cloak the identity of the original mystery donors because the funds are then distributed in the name of DT or DCF, contributing another step to what has been called a "murky money maze."
The twin Donors organizations are advertised as a way for very wealthy people and corporations to remain hidden when "funding sensitive or controversial issues," creating a lack of accountability.
- 1 DonorsTrust and Donors Capital Fund Grant Recipients
- 2 What DonorsTrust Funds, and How Much
- 3 Core Financials
- 4 Personnel
- 5 Contact Information
- 6 Resources and Articles
The Koch brothers -- David and Charles -- are the right-wing billionaire co-owners of Koch Industries. As two of the richest people in the world, they are key funders of the right-wing infrastructure, including the American Legislative Exchange Council (ALEC) and the State Policy Network (SPN). In SourceWatch, key articles on the Kochs include: Koch Brothers, Koch Industries, Americans for Prosperity, American Encore, and Freedom Partners.
DonorsTrust and Donors Capital Fund Grant Recipients
In June, 2016, DonorsTrust reached $1 billion in contributions to their "donor-advised accounts."
For a complete list of 2010-2014 grant recipients, see the DonorsTrust and Donors Capital Fund Grant Recipients page.
What DonorsTrust Funds, and How Much
DT and DCF made grants of over $148 million in 2011 and 2012, and according to a report by DeSmog Blog the two funds granted almost $311 million between 2002 and 2010'. The Koch brothers and other ultra-wealthy industrial ideologues appear to be cloaking an untold amount of their donations to conservative political outlets through DT and DCF. The obscure Knowledge and Progress Fund, controlled by Charles G. Koch, with Richard Fink as president, has given only to Donors since 2005, according to Mashey.
Coincidentally, the related Philanthropy Roundtable chose to honor Charles G. Koch with its 2011 William E. Simon Prize for "Philanthropic Leadership," enabling him to choose a non-profit to receive a $250,000 grant. The Roundtable explained that Koch is at the "forefront of strategic investment in ideas, think tanks, and academic research. . . . Having benefited from the capitalist system, he wants others to prosper in the same way."
Funding Climate Change Denial
According to Robert Brulle, a Drexel University sociologist featured on PBS Frontline in October 2012, "by 2009, about one-quarter of the funding of the climate countermovement [of climate change denial] is from the Donors Trust [and] Donors Capital Fund." He added that "what you see is that as the contribution of Donors [to climate change denial groups] has increased over the 2003-to-2010 timeframe, the contribution of other foundations has declined. Koch went from a high of 9 percent of the funding flow in 2008 to 1 percent in 2010. We do know that the Koch brothers have made significant contributions to Donors Trust through their foundation called the Knowledge and Progress Fund. They gave $1.25 million in 2007, $1.25 million in 2008, and then $2 million in 2010 to Donors. We don’t know where it went after it goes to Donors, because it’s not necessarily a one-for-one giving."
DonorsTrust promises to only funnel money to groups with an extreme anti-environmental bent, so industrial billionaires need not worry about their money winding up at Greenpeace, for example, as DonorsTrust co-founder Whitney Ball explains:
- "...if a donor names his child a successor advisor, and she wants to give to Greenpeace, we're not going to be able to do that."
In February 2013, the Guardian reported that nearly US$120 million dollars from "conservative billionaires" were routed through two trusts, DonorsTrust and the Donors Capital Fund, who used a "secretive funding route" to channel the funds "to more than 100 groups casting doubt about the science behind climate change." The trusts were "operating out of a generic town house in the northern Virginia suburbs of Washington DC," and the funds "doled out between 2002 and 2010, helped build a vast network of thinktanks and activist groups working to a single purpose: to redefine climate change from neutral scientific fact to a highly polarising 'wedge issue' for hardcore conservatives."
The Center for Public Integrity (CPI) published a chart of the foundations and funds that gave money to DonorsTrust, and the organizations to which Donors Trust distributed the funds. In one example, DonorsTrust was a large supporter of the Franklin Center for Government and Public Integrity, a think tank with a network of online media outlets in state capitals that covered climate change from a conservative point of view. According to IRS records, 95 percent of Franklin’s revenue in 2011 came from Donors Trust. The funding allowed Franklin to maintain tax-exemption as a “publicly supported” entity.
Funding State Think Tanks' ALEC Membership
In the mid-2000s, SPN began to secure funding for more of its member think tanks to join ALEC in order to help develop model legislation. In 2011, some of this "secured funding" for SPN members' participation in ALEC came from DCF. According to DCF's 2011 IRS disclosure, it funded Michigan's Mackinac Center, North Carolina's John Locke Foundation, the Texas Public Policy Foundation, Pennsylvania's Commonwealth Foundation, and six other member think tanks "for participation at American Legislative Exchange Council meeting," providing a total of $200,000 to the groups for that purpose.
Funding Islamophobia in the United States
Research from the Center for American Progress (CAP) indicates that DCF has funded various organizations and individuals contributing to an anti-Islamic hysteria in the United States. Between 2007 and 2009 the Donors Capital Fund contributed $21,318,600 to "groups promoting Islamophobia, some of which included the Middle East Forum, Clarion Fund, Investigative Project on Terrorism, and the David Horowitz Freedom Center. In 2008, Donors Capital contributions amounted to 96% of Clarion Fund's financial resources, which allowed the organization to distribute a controversial video called "Obsession: Radical Islam's War Against the West," which attempted to persuade Americans of the supposed Islamist threat during the 2008 election cycle. 
- Total Revenue: $67,869,616
- Total Expenses: $58,239,511
- Net Assets: $140,390,762
- Total Revenue: $104,533,200
- Total Expenses: $39,689,582
- Net Assets: $102,076,607
- Total Revenue: $47,559,207
- Total Expenses: $43,106,986
- Net Assets: $30,614,131
As of August 2016:
- Lawson R. Bader, President & CEO, Donors Capital Fund and DonorsTrust
- Jeffrey C. Zysik, Chief Financial Officer & Chief of Information Technology
- Peter A. Lipsett, Director of Growth Strategies
- Christopher D. Renner, Grants & Accounting Manager
- Thomas Wischer, Office Manager & Grants Associate
- Whitney L. Ball, Former President & CEO of DonorsTrust and Donors Capital Fund
- Lauren B. Vander Heyden, Outreach Manager
Officers and Directors
- Kimberly O. Dennis, Chairman of the Board; President and CEO, Searle Freedom Trust
- James Piereson, Vice Chairman of the Board; President, William E. Simon Foundation
- Thomas E. Beach, Director; Founder and Managing Director, Beach Investment Counsel
- William J. Hume, Director, Chairman of the Board, Basic American, Inc.
- Jeffrey C. Zysik, Secretary-Treasurer; Chief Financial Officer & Chief of Information Technology, DonorsTrust
1800 Diagonal Street, Suite 280
Alexandria, Virginia 22314
Phone: (703) 535-3563
Fax: (703) 535-3564
Resources and Articles
Related Sourcewatch Articles
- Koch Brothers
- Koch Family Foundations
- Americans for Prosperity
- Freedom Partners
- Cato Institute
- Heritage Foundation
- Koch Universities
- Koch Network
- Knowledge and Progress Fund
- American Encore
- Donors Capital
- 60 Plus
- Generation Opportunity
- State Policy Network:
- American Legislative Exchange Council (ALEC)
- Donors Capital Fund
- Koch Family Foundations
- Koch Industries
- Franklin Center for Government and Public Integrity
- Heritage Foundation
- Think tanks
- Whitney Ball
- Adam Meyerson
- Bridgett Wagner
- Philanthropy Roundtable
- William E. Simon Foundation
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