UNDUE INFLUENCE

Tides Center
related to Tides Foundation
related to Tsunami Fund
related to Solidago Foundation

Undue Influence by Ron Arnold

Tides Center
PO Box 29907 Bldg 1014
San Francisco, CA 94129
Phone:
(415) 561-6300
Fax:
(415) 561-6301

Website:
http://www.tides.org
Email: adavis@tides.org

Description: Star-nest for left-wing causes, provides fund-raising and management services for groups that can't or won't get their own IRS tax exemption.

2004: election year flap over Democratic presidential nominee John Kerry's wife, Teresa Heinz Kerry, donating money from her foundations to Tides Foundation and Tides Center radical projects. The Heinz foundations gave millions to the Tides Center and small amounts to the Tides Foundation, but all of the money was earmarked and spent on Heinz-prescribed projects, most in the Pittsburgh, Pennsylvania area where the Heinz family office is located, and not for Tides to use for any other purpose. Tides operates numerous radical organizations, but Heinz foundation money has not gone to any of them. The Heinz foundations have their own problems.

(Form 990 available at guidestar.org)

Tides Center finances, 2000
  Revenue     Expenses
Contributions $39,181,697
Government Grants $2,145,499
Program Services $4,934,290
Investments $1,290,738
Special Events $268,971
Sales $0
Other $0
 
Program Services $42,383,273
Administration $4,292,511
Other $23,061
Total Expenditures $46,698,845
Total Revenue $47,821,195   NET GAIN/LOSS $1,122,350
Board of Directors
Drummond Pike, President Wade Rathke, Chair
Mary Mountcastle, Treasurer Emmett Aluli, Director
Susan Lehman Carmichael, Director Andrea Kydd, Director
Denise Ellis, Asst. Treas. David Salnicker, COO
Ellen Friedman, V.P. Stephanie Clohesy, Director
Rinku Sen, Director  

EIN 94-3213100
Exempt since
July 1995

Board of Directors
Drummond Pike,
President  Salary  $51,601, benefits $13,468
President and Director of the Tides Foundation
Pike also receives a salary of $51,750, benefits $8,658 from Tides Foundation
President of Highwater, Inc.,
private real estate company which is a general partner of the Thoreau Center Partners, LP, from which the Tides Center and Tides Foundation rent office space
Director,
Environmental Working Group;
Director and shareholder,
Working Assets Funding Service (a private fundraising corporation)

Ellen Friedman, Vice-president Salary $13,672 Benefits $2,795
David Salnicker, COO Salary $102,995 Benefits $19,708
Denise Ellis, Assistant Treasurer Salary $69.874 Benefits $21,149

Wade Rathke, Chair
Mary Mountcastle, Treasurer
Emmett Aluli, Director
Susan Lehman Carmichael, Secretary
Andrea Kydd, Director

Tides Center operates more than 250 "projects" under its tax exemption, many of them seemingly separate organizations. The top five listed in the Center's 2000 Form 990 are:

  • Pew Research Center for the People & the Press - Director, Andrew Kohut, salary $195,342
  • Pew Internet Project - Executive Director, Harrison M. Rainie III, salary $187,025
  • Pew Center for Civic Journalism - Executive Director, Janice Lee Schaffer, salary $151,963
  • Environmental Media Services - President, Arlie Schardt, salary $130,000 (EMS departed Tides and incorporated as an independent nonprofit organization January 1, 2002.)
  • Americans for Gun Safety - Executive Director, Jonathan J. Cowan, salary $125,000

Total salaries paid: $16,666,394.  Benefits: $1,330,556

The Tides Center began as a spinoff of the Tides Foundation. What is the Tides Foundation? It is not a private foundation, but is a public charity. It has 501(c)(3) and 509(a)(1) IRS designations, which allow it to seek contributions and distribute them where desired.

It’s not a traditional foundation. It doesn’t have an endowment. Instead, people and institutions that, for one reason or another, don’t want to be publicly identified with a certain cause give money to Tides as donor-advised funds, a little-known charitable giving vehicle that allows donors to recommend uses of their donations and also to remain anonymous.

Tides becomes the "fiscal agent" (money funnel) of any group that donors wish to fund or to create to fit their agenda. Tides gives the recipient shelter under its tax exemption. Tides can train new leaders and equip their organizations to stand alone or simply run a temporary ad hoc operation to fill a short-term need. Thus, Tides has created a haven for donor-selected nongovernmental organizations that, for various reasons, would rather not obtain their own tax-exempt status from the Internal Revenue Service. In this manner Tides has nurtured literally hundreds of new groups to plague the resource class and rural communities.

The Tides Foundation was founded in 1976 by Drummond Pike, a left-wing activist in California, as a vehicle to promote social change and support new, controversial and even radical efforts.

The Tides Foundation originally supported three different but related programs: 1) grants: a) grantseeking, i.e., they obtained funds from large foundations, and b) grantmaking, i.e., they spent the money on other non-profit groups; 2) projects, i.e., they created or recruited existing, startup or temporary groups to fit any social engineering agenda with donor-advised funds; and 3) management contracting, i.e., they contracted with their own projects to provide them with financial, management and program assistance.

If an organization wanted to be a Tides Foundation project, essentially they turned over all of their administrative non-program activities to the Tides Foundation and paid the foundation 8% of their gross revenue. All organization employees were then employed by the Tides Foundation, provided with a benefit package and operated under the foundation’s personnel policies. All governmental filings, tax reports, and annual reports were prepared and submitted by the Tides Foundation. All legal contracts were reviewed by TF lawyers prior to their being executed. All purchases greater than $250 had to be OKed by TF program representatives before purchase. Staff hirings/firings had to be reviewed by TF representatives. TF assigned an individual to the organization to assist with day-to-day non-programmatic operations. A fundraising plan was worked out and closely monitored. Sources of potential funding from other foundations were directed toward the program by TF representatives. If the project proved effective, the group might end up with its own articles of incorporation, moving to its own offices, with its own funding sources, legitimately doing the activism it had been groomed for. The public didn’t know who paid for its grooming.

The San Francisco Bay Guardian reported, "Wealthy patrons give big chunks of money to Tides—and their names are kept confidential. The Tides donation is completely tax deductible. But the donor can discreetly designate an organization that he or she wants to see receive the money—and Tides will pass the donation along, minus a small administrative fee. Often, the recipient group doesn’t know where the money really came from. And there’s no way for the public to find out either. By the end of the 1980s Tides had significantly expanded another of its tasks: providing a tax shelter to small non-profits unable or unwilling to win tax-exempt status from the federal government."

Drummond Pike gained favor with John Peterson "Pete" Myers, director of the highly-focused W. Alton Jones Foundation. In 1992 Jones contributed to seven identifiable Tides donor-advised funds: $40,000 for the Student Environmental Action Coalition in Chapel Hill, North Carolina; $37,000 for Reducing Pesticide Risks Project; $30,000 for Least Cost Energy Analysis Project; $45,000 for the Nuclear Safety Campaign; $20,000 for the Project for Participatory Democracy; $15,000 to the Project for Particpatory Democracy for the Military Production Network; $20,000 for the Rural Alliance for Military Accountability.

Pike also gained favor with Rebecca Rimel, president of the giant Pew Charitable Trusts (over $15 million from Pew). In 1993 alone, Pew contributed to six identifiable Tides donor-advised funds: $600,000 to manage the Pew Global Stewardship Initiative "and related grantees;" $275,000 for the Business Industrial Efficiency Initiative; $95,000 for the Environmental Working Group; $25,000 for the U.S. Network for Cairo 1994 (a temporary organization to boost the United Nations International Conference for Population and Development); $75,000 to publish a source book on the 1994 Cairo U.N. Conference; $2,872,000 for the Waste Reduction and Recycling Institute.

In the early ’90s, Tides got donor-advised funds not only from Jones and Pew, but also from Columbia Foundation, the Foundation for Deep Ecology, the Richard and Rhoda Goldman Fund, the William and Flora Hewlett Foundation, the Homeland Foundation, the James Irvine Foundation, the Roberts Foundation, the Hoffman Foundation, the Charles Stewart Mott Foundation (General Motors money), the Nathan Cummings Foundation, the Ford Foundation, the Jessie Smith Noyes Foundation, and the Bullitt Foundation. By the end of 1996 the Tides Foundation had $55.3 million in assets, most of it supporting donor-advised funds.

Until 1996, the donor-advised fund projects were managed by the Tides Foundation. But to protect the Foundation from legal action that might be taken against any of those groups that might get in trouble—and more than a few harmed parties have considered lawsuits against environmentalists for ruining their lives—the Tides Center was spun off in April 1996, funded by a Tides Foundation grant of $9 million. A year later the Tides Center’s income was $38,813,246, and assets had grown to $16,080,055. It has its own tax exemption and deductible status.

The legally separate Center now manages all "projects," except for seven that were retained by the Foundation due to "imminent plans" by each group to incorporate separately from Tides. The Center also operates its own philanthropy, providing grants to affiliated groups and related projects. At the turn of the century, the Center expected to be managing more than 260 projects in 28 states and five countries. More than 400 staff members will be spending $30 million annually on project management.

The spin-off of the Tides Center coincided with the move of the whole Drummond Pike empire in mid-1996 to new facilities in the 55-acre Letterman Hospital complex at the Presidio of San Francisco, a former military base declared surplus by Congress and transferred to the National Park Service as part of Golden Gate National Recreation Area (now National Park).

Tides Center is funded by so many giant foundations that the Foundation Center database shows 544 separate grants. The most recent twenty grants recorded are:

Record 1
FOUNDATION NAME: The Pew Charitable Trusts
ABSTRACT: To assess and publicize risks and impacts of salmon farming in British Columbia on environment and to eliminate or curtail indiscriminate slaughter of seals and sea lions by salmon farmers
AMOUNT: $181,000 YEAR AUTHORIZED: 2001 

Record 2
FOUNDATION NAME: The Pew Charitable Trusts
ABSTRACT: To analyze and evaluate human health impacts of persistent organic pollutants in farmed Atlantic salmon and wild Pacific salmon
AMOUNT: $2,530,000 YEAR AUTHORIZED: 2001 

Record 3
FOUNDATION NAME: The Pew Charitable Trusts
ABSTRACT: For Pew Research Center For People and the Press to conduct research and opinion surveys on political, social, economic and journalistic matters and to disseminate results to policy makers, media and public
AMOUNT: $8,200,000 YEAR AUTHORIZED: 2001 

Record 4
FOUNDATION NAME: The Pew Charitable Trusts
ABSTRACT: For multination public opinion surveys by Pew Research Center For People and the Press of attitudes toward globalization and democratization as well as conferences, publications and other activities to disseminate and foster public discussion of survey results
AMOUNT: $3,800,000 YEAR AUTHORIZED: 2001 

Record 5
FOUNDATION NAME: The Pew Charitable Trusts
ABSTRACT: For effort to expand and refine activities of National Youth Vote 2000 Coalition and to increase youth involvement in electoral process
AMOUNT: $670,000 YEAR AUTHORIZED: 2001 

Record 6
FOUNDATION NAME: Lucent Technologies Foundation
ABSTRACT: For Global Summit of Women
AMOUNT: $30,000 YEAR AUTHORIZED: 2000 

Record 7
FOUNDATION NAME: DaimlerChrysler Corporation Fund
NO ABSTRACT OF PURPOSE PROVIDED
AMOUNT: $50,000 YEAR AUTHORIZED: 2000 

Record 8
FOUNDATION NAME: Turner Foundation, Inc.
NO ABSTRACT OF PURPOSE PROVIDED
AMOUNT: $80,000 YEAR AUTHORIZED: 2000 

Record 9
FOUNDATION NAME: Turner Foundation, Inc.
NO ABSTRACT OF PURPOSE PROVIDED
AMOUNT: $275,000 YEAR AUTHORIZED: 2000 

Record 10
FOUNDATION NAME: Evelyn and Walter Haas, Jr. Fund
ABSTRACT: For National Leadership Learning Community to assist leaders in meeting challenges of serving their communities
AMOUNT: $15,000 YEAR AUTHORIZED: 2000 

Record 11
FOUNDATION NAME: S. H. Cowell Foundation
ABSTRACT: For Leadership Learning program
AMOUNT: $25,000 YEAR AUTHORIZED: 2000 

Record 12
FOUNDATION NAME: Fannie Mae Foundation
ABSTRACT: For Grantmakers for Effective Organizations, affinity group of national funders collaborative focused on grantmaking for organizational effectiveness
AMOUNT: $10,000 YEAR AUTHORIZED: 2000 

Record 13
FOUNDATION NAME: Wallace Alexander Gerbode Foundation
ABSTRACT: For Environmental Media Services' California Environmental Rapid Response Project
AMOUNT: $25,000 YEAR AUTHORIZED: 2001 

Record 14
FOUNDATION NAME: Bank of America Foundation, Inc.
ABSTRACT: For memorial grove in Golden Gate Park
AMOUNT: $10,000 YEAR AUTHORIZED: 1999 

Record 15
FOUNDATION NAME: Bank of America Foundation, Inc.
ABSTRACT: For Community-Based Organization (CBO) internships for graduate students
AMOUNT: $15,000 YEAR AUTHORIZED: 1999 

Record 16
FOUNDATION NAME: Moriah Fund
ABSTRACT: For Raising Voices, which is working in partnership with organizations in East Africa to develop and pilot community-based strategies to prevent domestic violence
AMOUNT: $40,000 YEAR AUTHORIZED: 2000 

Record 17
FOUNDATION NAME: Moriah Fund
ABSTRACT: For Women's Health Exchange, project which will conduct in-depth analysis of existing data to determine impact of violence on women's health, with special emphasis on sexual and reproductive health, and build research capacity on gender violence in Latin America, Asia and Africa
AMOUNT: $40,000 YEAR AUTHORIZED: 2000

Record 18
FOUNDATION NAME: Moriah Fund
ABSTRACT: To ensure that population and health polices of international institutions supported by U.S. government actively promote women's reproductive and sexual health
AMOUNT: $50,000 YEAR AUTHORIZED: 2000

Record 19
FOUNDATION NAME: Foundation for Deep Ecology
ABSTRACT: For general support
AMOUNT: $10,000 YEAR AUTHORIZED: 2000 

Record 20
FOUNDATION NAME: Bill & Melinda Gates Foundation
ABSTRACT: For Brave Kids program to develop directory of health care resources for seriously ill children in Washington State
AMOUNT: $100,000 YEAR AUTHORIZED: 2000

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