Think tanks need to show us the money – Yakabuski

Good column by Konrad Yakabuski on think tanks as charities or political actors (see also Miles Corak’s How to think about “think” tanks):

The Fraser Institute raised 15 per cent, or about $6.6-million, of its total revenue from foreign sources in the four fiscal years to 2012. Not to single out Fraser – whose research, like that of its peers, is rigorous but only half the story – but no one could argue that such money has gone toward charity.

“Fundamentally, think tanks on the left and right have been abusing the privilege of being a registered charity,” says Toronto lawyer Mark Blumberg, a leading expert in the field. Since charities are only allowed to devote 10 per cent of their revenue to political activities, “you could argue some of them haven’t been following the rules.”

The line between political advocacy and policy analysis has become increasingly blurred. Three years ago, the Harper government made a big to-do about anti-pipeline environmental groups taking foreign donations. And the CRA has started cracking down on organizations that confuse political advocacy with charity.

Perhaps it’s time we also focused on think tanks. They play a valuable role in democracies, but their research is only as credible as the amount of disclosure they provide. The pro-transparency blog Transparify recommends that journalists add the phrase “does not disclose its funders” when reporting on research produced by such think tanks. It’s advice worth following.

Think tanks need to show us the money – The Globe and Mail.