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Deniers preferring the 'dark money' route

Climate denial organisations are increasingly using pass-through organisations to conceal their donors, likely explaining an apparent decline in contributions from the likes of Koch Industries and ExxonMobil.
By · 8 Jan 2014
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8 Jan 2014
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The Daily Climate

The largest, most-consistent money fueling the climate denial movement are a number of well-funded conservative foundations built with so-called 'dark money', or concealed donations, according to an analysis last month.

The study, by Drexel University environmental sociologist Robert Brulle, is the first academic effort to probe the organisational underpinnings and funding behind the climate denial movement.

It found that the amount of money flowing through third-party, pass-through foundations like Donors Trust and Donors Capital, whose funding cannot be traced, has risen dramatically over the past five years.

In all, 140 foundations funneled $US558 million to almost 100 climate denial organisations from 2003 to 2010.

Meanwhile, the traceable cash flow from more traditional sources, such as Koch Industries and ExxonMobil, has disappeared.

The study was published in the journal Climatic Change.

"The climate change countermovement has had a real political and ecological impact on the failure of the world to act on global warming," Brulle said in a statement.

"Like a play on Broadway, the countermovement has stars in the spotlight – often prominent contrarian scientists or conservative politicians – but behind the stars is an organisational structure of directors, script writers and producers."

"If you want to understand what's driving this movement, you have to look at what's going on behind the scenes."

Consistent funders

To uncover that, Brulle developed a list of 118 influential climate denial organisations in the United States. He then coded data on philanthropic funding for each organisation, combining information from the Foundation Center, a database of global philanthropy, with financial data submitted by organisations to the US Internal Revenue Service.

Graph for Deniers preferring the 'dark money' route

According to Brulle, the largest and most consistent funders where a number of conservative foundations promoting "ultra-free-market ideas" in many realms, among them the Searle Freedom Trust, the John Williams Pope Foundation, the Howard Charitable Foundation and the Sarah Scaife Foundation.

Another key finding: From 2003 to 2007, Koch Affiliated Foundations and the ExxonMobil Foundation were "heavily involved" in funding climate change denial efforts. But Exxon hasn't made a publically traceable contribution since 2008, and Koch's efforts dramatically declined, Brulle said.

Coinciding with a decline in traceable funding, Brulle found a dramatic rise in the cash flowing to denial organisations from Donors Trust, a donor-directed foundation whose funders cannot be traced. This one foundation, the assessment found, now accounts for 25 per cent of all traceable foundation funding used by organisations promoting the systematic denial of climate change.

Jeffrey Zysik, chief financial officer for DonorsTrust, said in an email that neither DonorsTrust nor Donors Capital Fund "take positions with respect to any issue advocated by its grantees".

"As with all donor-advised fund programs, grant recommendations are received from account holders," he said. "DonorsTrust and Donors Capital Fund ensure that recommended grantees are IRS-approved public charities and also require that the grantee charities do not rely on significant amounts of revenue from government sources. DonorsTrust and Donors Capital Fund do not otherwise drive the selection of grantees, nor conduct in-depth analyses of projects or grantees unless an account holder specifically requests that service."

Matter of democracy

In the end, Brulle concluded public records identify only a fraction of the hundreds of millions of dollars supporting climate denial efforts. Some 75 per cent of the income of those organisations, he said, comes via unidentifiable sources.

And for Brulle, that's a matter of democracy. "Without a free flow of accurate information, democratic politics and government accountability become impossible," he said. "Money amplifies certain voices above others and, in effect, gives them a megaphone in the public square."

Powerful funders, he added, are supporting the campaign to deny scientific findings about global warming and raise doubts about the "roots and remedies" of a threat on which the science is clear.

"At the very least, American voters deserve to know who is behind these efforts."

Originally published on The Daily Climate. Reproduced with permission.

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