Nearly all of the 2011 funding for the conservative Franklin Center for Government and Public Integrity, which oversees state news sites nationwide, came from a single foundation that has distributed hundreds of millions of dollars to right-wing causes, according to a recent report of the Center for Public Integrity.
CPI detailed that the foundation, Donors Trust, provided 95 percent of the Franklin Center funding in 2011, citing Internal Revenue Service documents. The Center uses that funding to support websites and affiliates providing free statehouse reporting from a "pro-taxpayer, pro-liberty, free market perspective" to local newspapers and other media across the country.
The Center, which Media Matters highlighted in a lengthy July 2012 report, has launched more than 50 news sites covering state government in 39 states since it began in 2009 and claims to provide 10 percent of all state government news in the United States.
Since it was created in 1999, Donors Trust and its affiliated organization, Donors Capital Fund, have raised more than $500 million from various individuals and organizations, among them billionaire industrialist Charles Koch, and doled out $400 million to a constellation of right-wing causes. That includes $86 million distributed in 2011 alone.
Donors Trust gives many of its funding sources a way to hide their donations or "pass-through" money to various right-leaning organizations and media outlets, many of whom promote free-market ideas. The size and character of these donations has earned the group the moniker "the dark money ATM of the conservative movement."
The $6.3 million donation to the Franklin Center in 2011 was the second-largest gift made that year by Donors Trust. Donors Trust and Donors Capital Fund had previously given a combined contribution of $25,000 to the Franklin Center in 2010.
Major Donors Trust contributors include the Charles Koch-controlled Knowledge and Progress Fund.
Marcus Owens, the former director of the IRS Exempt Organizations Division, told CPI, "Koch is among an exclusive pool of donors who have used Donors Trust as a 'pass-through.' It obscures the source of the money. It becomes a grant from Donors Trust, not a grant from the Koch brothers."
CPI produced this graphic detailing the flow of money in recent years from Koch-backed and other right-wing foundations through Donors Trust to a variety of conservative groups.
The Franklin Center is also staffed by veterans of groups affiliated with Charles Koch and his brother, David.
Steven Greenhut, Franklin Center's vice president of journalism, was listed as a senior fellow at the Pacific Research Institute, a conservative think tank that has received significant funding from foundations headed by the Koch Brothers.
Other top Franklin Center staffers with current or past Koch ties include Erik Telford, the Franklin Center's vice president of strategic initiatives & outreach; Mary Ellen Beatty, Franklin Center director of citizen outreach; Alicia Barnaby, Coalitions Coordinator; and the Franklin Center's director of development, Matt Hauck.