Show Me the Money: An Analysis of the Brookings Institution

Think tanks play a significant role in the policymaking process by providing research on policy

issues, informing the policy debate, and offering solutions based on evidence. This paper

examines the Brookings Institution’s history, how it operates, and ways in which the think tank

has operated under corporate influence. Brookings, like many think tanks today, is influenced by

donations of wealthy corporations because of the competition amongst other think tanks and the

pressure to maintain its influence in policy debates. Ultimately, Brookings will continue to cater

to the desires of donors as the influence of money in Washington continues to increase.

Isabella Lozano

POL 225: Public Policy

Dr. Roberts

April 23, 2020

 Lozano 1

Think tanks play an essential role in shaping the research and policy agendas. The 1,984

think tanks in the United States make up about one-third of the world’s total.1 One of the most

influential public policy research organizations in the United States is the Brookings Institution.

Founded in 1916, the Brookings Institution is a non-profit, non-governmental organization

located in Washington, D.C. Brooking’s policy research has three broad areas of specialization,

which include economics, foreign policy, and government. This organization is committed to

independence and describes itself as nonpartisan, with scholars representing diverse viewpoints.

Background

The Brookings Institution’s origin traces back to 1916 when a group of government

reformers, including Robert S. Brookings, founded the Institute for Government Research

(IGR).2 The IGR’s mission was to become the “first private organization devoted to analyzing

public policy issues.”3 Then Robert S. Brookings established the Institute of Economics in 1922

and the Robert Brookings Graduate school in 1924, sister organizations of the IGR. 4 In 1927, the

IGR and its two sister organizations were combined to form the Brookings Institution, named

after Robert S. Brookings, who spearheaded the inspiration for this organization.5

The Brookings Institution’s work centers around addressing policy issues and offering

solutions to policymakers and the public as a whole. Brookings’ program research areas are

“foreign policy, economics, development, governance, and metropolitan policy.”6 In 2019, the

Brookings Institution was ranked #1 for having the most innovative policy ideas, #2 for the best-

1 “The 50 Most Influential Think Tanks in the United States.” The Best Schools, March 23, 2020.
https://thebestschools.org/features/most-influential-think-tanks/.
2 Critchlow, Donald T. "Robert S. Brookings: The Man, the Vision and the Institution." The Review of Politics 46,
no. 4 (1984): 561-81. www.jstor.org/stable/1406694.
3 “Brookings Institution History.” Brookings, November 6, 2017. https://www.brookings.edu/about-us/brookings-
institution-history/.
4 Ibid.
5 “Brookings Institution History,”
6 “About Us.” Brookings, January 6, 2020. https://www.brookings.edu/about-us/.
 Lozano 2

managed think tanks, and #2 for think tanks with the most significant impact on public policy.7 It

was also ranked in the top 5 for their policy areas, including education, foreign affairs, global

health, and international development. 8 There are 15 specialized policy centers under Brookings’

policy programs, such as the Center for Universal Education and the Urban-Brookings Tax

Policy Center and all research is organized into 42 major projects.9

Brookings does not take positions on issues or participate in partisan political activity.

The institution’s scholars offer nonpartisan public policy analysis and recommendations to

politicians and candidates running for office. 10 Brookings also states that its personnel must not

allow third parties’ interests, such as donors, political parties, or the government, to influence

their recommendations. The research agenda is set by the Brookings president and board of

directors, identifying problems to focus on. Based on the research agenda, specialists are invited

to conduct research that is published to the public once completed.11 Publishing is done through

the Brookings Institution Press, which regularly publishes newsletters, papers, journals, and

books written by researchers for Brookings and outside authors.12 In 1958, the Press became a

part of the Association of American University Press.13 Brookings holds regular events open to

the public to discuss their research. Brookings also partners with the Olin Business school at

Washington University to educate and train individuals in government. 14

7 McGann, James G. “2019 Global Go To Think Tank Index Report.” Penn Libraries, January 1, 2020.
https://repository.upenn.edu/cgi/viewcontent.cgi?article=1018&context=think_tanks.
8 Ibid.
9 Ibid.
10 “Brookings Policies on Independence and Integrity.” Brookings, January 6, 2020.
https://www.brookings.edu/about-us/brookings-policies-on-independence-and-integrity/.
11 Saunders, Charles B. “Brookings Institution - Program, Financial Support, Organization, History.” Edited by
Nancy E. Gratton. Education Encyclopedia. https://education.stateuniversity.com/pages/1801/Brookings-
Institution.html.
12 “About the Brookings Institution Press.” Brookings, January 8, 2018. https://www.brookings.edu/about-the-
brookings-institution-press/.
13 Ibid.
14 “Home.” WashU at BROOKINGS. https://washuatbrookings.org/#fellowships.
 Lozano 3

As a non-profit organization, the Brookings Institution’s funding mainly comes gifts and

grants, making up 81% of the revenue in 2019. 15 These donations are made by foundations,

corporations, governments, and private individuals. Primary funders of the think tank include the

Bill and Melinda Gates Foundation, the Ford Foundation, and the Carnegie Corporation of New

York.16 The other 19% of the revenue in 2019 came from an endowment, publications, and

miscellaneous.17 The government does not directly fund Brookings, but the institution still takes

on government contract studies. By not accepting direct government funding, Brookings reserves

the right to publish its research and maintains its independence from governmental control.18

Brookings’ funding sources and finances are recorded in their Annual Report.

Analysis

The Brookings Institution states that the think tank is careful in maintaining its scholars’

independence and that third parties do not influence their policy recommendations. However, in

the past ten years, the institution has placed more of an emphasis on “expansion and fundraising,

letting research scholars seek more donations and allowing donors to have a say in Brooking’s

research agenda.19 This expansion plan and “aggressive fundraising” began with the efforts of

Brookings’ President Strobe Talbott to make the institution more influential among rising

competition from other think tanks.20

15 Kim, Lucy C. Brookings 2019 Annual Report, edited by Robert Moore. Brookings Institution, 2019.
https://www.brookings.edu/wp-content/uploads/2019/11/2019-annual-report.pdf.
16 “Brookings Institution.” Devex. https://www.devex.com/organizations/brookings-institution-43177.
17 Ibid.
18 Reaves, Allyson. “Brookings Institution.” In International Encyclopedia of Civil Society, edited by Helmut K.
Anheier and Stefan Toepler, 86–87. New York, NY: Springer US, 2010. https://doi.org/10.1007/978-0-387-93996-
4_677.
19 Hamburger, Tom, and Alexander Becker. “At Fast-Growing Brookings, Donors May Have an Impact on Research
Agenda.” The Washington Post. WP Company, October 30, 2014. https://www.washingtonpost.com/politics/at-fast-
growing-brookings-donors-help-set-agenda/2014/10/30/a4ba4e8e-48ef-11e4-891d-713f052086a0_story.html.
20 Strobe Talbott was the president of the Brookings Institution from 2002 to 2017. He was the sixth president of the
institution.
 Lozano 4

The institution’s shift in focus is a part of the “new era of corporate influence in

Washington,” of which many think tanks such as Brookings have become a part of.21 Times and

the New England Center for Investigative Reporting obtained “internal memos and confidential

correspondence between Brookings and other donors.”22 These documents show that corporate

donations made to the think tank usually came with promises of “donation benefits” and

assurances that “donors would see results from their contributions.” 23 Donation benefits include

the think tank setting up events where corporate executives hobnob with government officials,

allowing them to influence politics directly.24 According to Times, the pressure that donors put

on influential think tanks such as Brookings can “threaten their standing as independent arbiters

in policy debates.”25 This pressure pushes think tanks to accommodate its donors in order to

maintain its funding.

Brookings claims to have measures in place to limit the influence of donors. Conversely,

according to a Washington Post review, the think tank’s research papers, articles, events, and

congressional testimonies “often correspond to the interests of donors.”26 An example of this

correspondence can be seen in Brookings’ education policy area and donations from The Walton

Family Foundation, the Wal-Mart heirs. On the Brookings Institution’s Contributors List report

during 2019, the Walton Family Foundation donated between $250,000-$499,999 to Brookings’

education policy center.27 The Walton Family Foundation has donated millions of dollars to

support market-oriented education policies and is the biggest investor in charter schools in

21 Hamburger, Tom, and Alexander Becker.

22 Lipton, Eric, and Brooke Williams. “How Think Tanks Amplify Corporate America's Influence.” The New York
Times. The New York Times, August 7, 2016. https://www.nytimes.com/2016/08/08/us/politics/think-tanks-
research-and-corporate-lobbying.html.
23 Lipton, Eric, and Brooke Williams.
24 Ibid.
25 Ibid.
26 Hamburger, Tom, and Alexander Becker.
27 The Brookings Institution’s Contribution List. Brookings Institution, 2019. https://www.brookings.edu/wp-
content/uploads/2019/04/The-Brookings-Institutions-Contributors-List-Fiscal-Year-2019.pdf.
 Lozano 5

America. Echoing the foundation’s interest, Brookings’ education scholars “regularly adopt

market-oriented stances on education issues.” 28 An example of a Brookings scholar reflecting the

foundations’ market-oriented stance can be seen in “Education Markets: Forward-Looking

Policy Options.” This policy recommendation suggests that teachers should receive

performance-based compensation.29 This is an example of Brookings producing a report that

addresses the requests of their donors. As a result, the Walton Family Foundation is able to play

a direct role in policymaking through Brookings research and policy recommendations.

Another policy area that has experienced corporate influence is Brooking’s Metropolitan

Policy Program. KKR, a global investment firm, donated $450.000 to this program in exchange

for Brookings to arrange a meeting with KKR and leaders in Philadelphia and Detroit, states

where KKR was looking to invest.30 The global investment firm thus influenced Brookings to

write a report that supported KKR’s infrastructure projects in New Jersey, allowing the firm to

influence the institute’s policy recommendations directly.31 Another company, the Lennar

corporation, donated $400,000 to the program in exchange for the institute to promote its plans

for “an $8 billion revitalization project in San Francisco.”32 Brookings “aggressively promoted”

Lennar’s project and aided the company in gaining attention from the media.33 Furthermore,

Brookings appointed Lennar to Brookings’ Metropolitan Leadership Council, which led Lennar

to gain approval for their revitalization project in San Francisco. 34 Despite the San Francisco

project being controversial, Brookings continued to show its support for the project in exchange

28 Hamburger, Tom, and Alexander Becker.

29 Turner, Sarah. Education Markets: Forward-Looking Policy Options. Hutchins Center on Fiscal and Monetary
Policy at Brookings, January 2017. https://www.brookings.edu/wp-content/uploads/2017/01/wp27_turner_
educationmarkets_final.pdf.
30 Lipton, Eric, and Brooke Williams.
31 Ibid.
32 Sainato, Michael. “Think Tank Smells Like Corporate Money for Clinton.” Observer. Observer, August 8, 2016.
https://observer.com/2016/08/think-tank-smells-like-corporate-money-for-clinton/.
33 Lipton, Eric, and Brooke Williams.
34 Ibid.
 Lozano 6

for an additional $50,000 from the Lennar Corporation.35 A portion of Lennar’s donations to

Brookings came from their SunStreet Energy, prompting the think tank to publish a report,

“Rooftop solar: Net metering is a net benefit,” supporting rooftop solar.36 37

Conclusion

Brookings’ increased emphasis on expansion and fundraising has played a significant

role in leading the think tank to be under corporate influence. The competition among other think

tanks becomes an incentive for think tanks like Brookings to accommodate donors in order to

receive more funding. With Brookings' reputation as one of the most influential think tanks, it is

a target for corporations to work with and achieve their companies' or foundations' goals.

Documents show that Brookings assures donors their needs will be met, and they will receive

donor benefits. Evidence of such corporate influence can be seen with the Walt Family

Foundation's donation to the education policy center. As a result of the donation, Brookings

produced reports that took a market-oriented approach to education, promoting the foundation's

mission. Similarly, looking at Brooking's metropolitan policy program, KKR and the Lennar

Corporation donated to the think tank in exchange for Brookings to promote their companies'

projects. Subsequently, Brookings published reports with conclusions that aided the companies'

projects and missions, influencing the policymaking process. In Washington's new era of

corporate influence, corporations will continue to target their money as money’s influence

persists. As a result, Brookings and other think tanks will influence their research agendas in

order to compete with their competition and remain influential.

35 Ibid.
36 Ibid.
37 Muro, Mark, and Devashree Saha. “Rooftop Solar: Net Metering Is a Net Benefit.” Brookings. Brookings, July
28, 2016. https://www.brookings.edu/research/rooftop-solar-net-metering-is-a-net-benefit/.
 Lozano 7

References

“About the Brookings Institution Press.” Brookings, January 8, 2018.

https://www.brookings.edu/about-the-brookings-institution-press/.

“About Us.” Brookings, January 6, 2020. https://www.brookings.edu/about-us/.

“Brookings Institution.” Devex. Accessed April 20, 2020.

https://www.devex.com/organizations/brookings-institution-43177.

“Brookings Institution History.” Brookings, November 6, 2017.

https://www.brookings.edu/about-us/brookings-institution-history/.

“Brookings Policies on Independence and Integrity.” Brookings, January 6, 2020.

https://www.brookings.edu/about-us/brookings-policies-on-independence-and-integrity/.

Critchlow, Donald T. "Robert S. Brookings: The Man, the Vision and the Institution." The

Review of Politics 46, no. 4 (1984): 561-81. www.jstor.org/stable/1406694.

Hamburger, Tom, and Alexander Becker. “At Fast-Growing Brookings, Donors May Have an

Impact on Research Agenda.” The Washington Post. WP Company, October 30, 2014.

https://www.washingtonpost.com/politics/at-fast-growing-brookings-donors-help-set-

agenda/2014/10/30/a4ba4e8e-48ef-11e4-891d-713f052086a0_story.html.

“Home.” WashU at BROOKINGS. https://washuatbrookings.org/#fellowships.

Kim, Lucy C. Brookings 2019 Annual Report, edited by Robert Moore. Brookings Institution,

2019. https://www.brookings.edu/wp-content/uploads/2019/11/2019-annual-report.pdf.

Lipton, Eric, and Brooke Williams. “How Think Tanks Amplify Corporate America's Influence.”

The New York Times. The New York Times, August 7, 2016.

https://www.nytimes.com/2016/08/08/us/politics/think-tanks-research-and-corporate-

lobbying.html.

Muro, Mark, and Devashree Saha. “Rooftop Solar: Net Metering Is a Net Benefit.” Brookings.
 Lozano 8

Brookings, July 28, 2016. https://www.brookings.edu/research/rooftop-solar-net-

metering-is-a-net-benefit/.

Reaves, Allyson. “Brookings Institution.” In International Encyclopedia of Civil Society, edited

by Helmut K. Anheier and Stefan Toepler, 86–87. New York, NY: Springer US, 2010.

https://doi.org/10.1007/978-0-387-93996-4_677.

McGann, James G. “2019 Global Go To Think Tank Index Report.” Penn Libraries, January 1, 2020.

https://repository.upenn.edu/cgi/viewcontent.cgi?article=1018&context=think_tanks.

Sainato, Michael. “Think Tank Smells Like Corporate Money for Clinton.” Observer. Observer,

August 8, 2016. https://observer.com/2016/08/think-tank-smells-like-corporate-money-

for-clinton/.

Saunders, Charles B. “Brookings Institution - Program, Financial Support, Organization,

History.” Edited by Nancy E. Gratton. Education Encyclopedia.

https://education.stateuniversity.com/pages/1801/Brookings-Institution.html.

“The 50 Most Influential Think Tanks in the United States.” The Best Schools, March 23, 2020.

https://thebestschools.org/features/most-influential-think-tanks/.

The Brookings Institution’s Contribution List. Brookings Institution, 2019.

https://www.brookings.edu/wp-content/uploads/2019/04/The-Brookings-Institutions-

Contributors-List-Fiscal-Year-2019.pdf.

Turner, Sarah. Education Markets: Forward-Looking Policy Options. Hutchins Center on Fiscal

and Monetary Policy at Brookings, January 2017. https://www.brookings.edu/wp-

content/uploads/2017/01/wp27_turner_educationmarkets_final.pdf.