Funding
80% of Cato's income comes from individual donations and subscriptions. 8% comes from corporations, 8% from foundations and the remaining from conference and book sales etc. They currently have an annual income of $17,000,000. Between 1985 and 2001, the Institute received $15,633,540 in 108 separate grants from only nine different foundations:
Castle Rock Foundation
Charles G. Koch Charitable Foundation
Earhart Foundation
JM Foundation
John M. Olin Foundation, Inc.
Claude R. Lambe Charitable Foundation
Lynde and Harry Bradley Foundation
Scaife Foundations (Sarah Mellon Scaife, Carthage)
Known corporate funders include ExxonMobil, who gave $30,000 during 2002 <2> (
http://www2.exxonmobil.com/files/corporate/public_policy1.pdf).
Media mogul Rupert Murdoch previously served on the board of directors of Cato, which has numerous ties to the Republican Party. Cato often differs with Republican Party positions on specific issues, such as the 2003 decision by U.S. President George W. Bush to go to war with Iraq, prosecution of the war on drugs, giving federal money to faith-based organizations, and the decision of President George H.W. Bush to fight the first Gulf war. Cato has also criticized the 1998 settlement that many U.S. states signed with the tobacco industry <3> (
http://www.cato.org/pubs/pas/pa-371es.html). The Cato Institute has argued implicity against the Republican party on spending issues <4> (
http://www.cato.org/dailys/05-07-03.html).
Sometimes, however, it has proven willing to set aside its libertarian principles - such as supporting a Bush administration moves to restrict civil liberties as part of the war on terror. In 2002, a Cato news release endorsed new Justice Department guidelines giving greater latitude to FBI agents to monitor Internet sites, libraries and religious institutions. "As reported in the press, the new FBI surveillance guidelines present no serious problems," declared Cato legal affairs analyst Roger Pilon, a former Reagan administration official who writes frequent Cato commentaries defending property rights and opposing affirmative action that have appeared in publications such as the New York Times, Washington Post, Wall Street Journal, and the Los Angeles Times. Pilon added that "law enforcement monitoring of public places is simply good, pro-active police work that violates the rights of no one."<5> (
http://www.cato.org/new/05-02/05-30-02r-2.html)
Of course, that one release by Pilon is the rare exception, not the rule. Cato scholars such as Robert Levy and Timothy Lynch had railed against the Bush administration for its civil liberties record on, for example, the Padilla case, military tribunals, national ID cards, the creeping militarization of domestic law enforcement, border patrol, the drug war, grand jury abuse, the PATRIOT Act, federal surveilance of ordinary Americans, operation TIPS, and mandatory vaccinations against potential bioterror threats. <6> (
http://www.cato.org/current/terrorism/terror-civilliberties.html)
Murdoch sat on the board of directors of Philip Morris, the tobacco giant recently inducted into INFACT's Hall of Shame "for exerting undue influence over public policy-making" with the help of 240 registered federal and state lobbyists -- spending as much as $2 million per month to lobby federal officials. Murdoch publications such as TV Guide reap enormous profits from cigarette ads. And Murdoch's Fox Broadcasting is cozy with Philip Morris subsidiary Miller Brewing Co., which recently boosted its advertising account with Fox to about $75 million per year for sports and primetime programs (Advertising Age, 6/16/97). ...
... Clearly, the Cato Institute falls in the latter category. The Institute's yearly funding has climbed above $8 million, more than twice what it was in 1992. The organization's most recent annual report exults: "We've moved into a beautiful new $13.7 million headquarters at 1000 Massachusetts Avenue and have only $1 million in debt remaining on it as we enter 1997." Dozens of huge corporations, eager to roll back government regulatory powers, are among Cato's largest donors. <P> In their book No Mercy, University of Colorado Law School scholars Stefancic and Delgado describe a shift in Cato's patron base over the years. Cato's main philanthropic backing has come from the right-wing Koch, Lambe and Sarah Scaife foundations. But today, Cato "receives most of its financial support from entrepreneurs, securities and commodities traders, and corporations such as oil and gas companies, Federal Express, and Philip Morris that abhor government regulation." <P> Financial firms now kicking in big checks to Cato include American Express, Chase Manhattan Bank, Chemical Bank, Citicorp/Citibank, Commonwealth Fund, Prudential Securities and Salomon Brothers. Energy conglomerates include: Chevron Companies, Exxon Company, Shell Oil Company and Tenneco Gas, as well as the American Petroleum Institute, Amoco Foundation and Atlantic Richfield Foundation. Cato's pharmaceutical donors include Eli Lilly & Company, Merck & Company and Pfizer, Inc. ...