The 'Kochtopus', US Libertarians, and Brexit
A2P isn’t the only Elliot-affiliated organisation with links to the Koch brothers.
In fact, many of the organisations involved in the network pushing for a deregulated post-Brexit US-UK free-trade deal are supported by Koch Family Foundations — one of the largest funders of libertarian causes and climate science denial in the world.
The Koch’s influence is so far-reaching that the network the brothers support has been dubbed the
‘Kochtopus’. Through its network, the Koch brothers have been
accused of backing movements that have “undermined American democracy and have helped wealthy elites block progress on problems such as climate change and income inequality”.
The Atlas Network
Atlas is a Washington DC-based non-profit organisation that works to support more than 450 organisations in more than 90 countries promoting individual liberty and free-market ideals. The Charles Koch Foundation is a major donor.
Matthew Elliott is
listed as one of Atlas Network’s mentors, with the task of helping others build free-market institutions all around the world. Many of the organisations in the UK pushing for a hard or no-deal Brexit are part of the Atlas Network, including the
Adam Smith Institute,
Centre for Policy Studies,
Civitas, Open Europe and the
IEA as well as the
TaxPayers’ Alliance and Big Brother Watch — with the latter two founded by Matthew Elliott.
Many of the network’s members have supported climate science denial and campaigned against efforts to limit greenhouse gas emissions.
Besides capacity-building, the Atlas network also acts as an influential funding stream with millions coming into Europe every year, with very little transparency over how the money is spent.
Atlas is registered as a 501(c)(3) organisation, which is exempt from federal income tax and is meant to act exclusively for religious, charitable, scientific, or educational purposes — similar to organisations like the IEA in the UK, which is registered as an “educational charity”.
Atlas’ status also means it has to file public tax returns.
However, the tax returns do not provide much detail on precisely how organisations like Atlas spend their money outside the US. Instead, Atlas only has to declare how much money it spent across regions, such as Europe, without any specifics.
The records show that Atlas increased its spending in Europe fivefold between 2015 and 2016, the year of the EU referendum — with spending increasing from $340k in 2015 to $1.7 million the following year.
Atlas did not respond to a request for comment regarding the details of its European spending, or the nature of the network’s interest in Brexit.
Atlas’ money comes largely from US mega-donors, including the Koch brothers. In 2016, the Charles Koch Foundation donated $101,658 to Atlas, up from $82,426 in 2015.
The Charles Koch Foundation did not respond to a request for comment regarding its interest in Brexit or its European spending.
The
Donors Trust, a Koch grantmaking vehicle described by Mother Jones as the
‘dark money ATM of the conservative movement’, also gives significant sums to Atlas.
In 2016, the Donors Trust
more than tripled its donations to Atlas giving the network $1,308,390 across 20 donations, including a single $990,000 donation — up from a total of $339,250 in 2015.
Donors Trust told DeSmog UK that it had no specific interest in Brexit, and retained no control or influence over how it's grantees spent the funds. A spokesperson said:
“DonorsTrust does not take nor advocate for specific policy positions, and certainly we have not engaged in any policy work focused specifically on the Brexit referendum. We make grants at the request of our account holders, and we have no involvement with any of the activities of our grantees.”
“As far as we know, the only purpose with the $990k contribution in 2016 was to support Atlas programs focused on its partners in Chile.”
The Atlas network is a close partner of the UK’s IEA through its US fundraising arm, the American Friends of the IEA. The IEA is
one of nine organisations reported to be coordinating a campaign to push for a hard Brexit in the media from the Tufton Street offices.
Public tax records and 990 Forms show that Atlas is listed as a “related tax exempt organisation” to the American Friends of the IEA, with both organisations registered under the same Washington address. In 2016, former Atlas director Alex Chafuen was
the officer registered on the Americans Friends of the IEA’s financial records.
Image: Excerpt from American Friends of the IEA's 2016 990 tax return form
Donors Trust has also previously donated directly to the American Friends of the IEA, although there is no record of a donation since it gave $10,000 in 2014.
According to an Atlas network briefing form shared with DeSmog UK, the AFIEA works to “improve public understanding of the foundations of a free and harmonious society” sometimes in coalition with organisations such as the IEA.
The brief stated that an American donor wishing to support the work of the IEA would have to specify to the AFIEA that the money be given to the IEA. It added that the AFIEA is controlled by a board of directors independently from the IEA, “with grant decisions made at their sole discretion”.