American Enterprise Institute

Founded in 1943 with the stated mission of promoting “greater public knowledge and understanding of the social and economic advantages accruing to the American people through the maintenance of the system of free, competitive enterprise,” the American Enterprise Institute for Public Policy Research (AEI) is a nonpartisan institution located in Washington, D.C. The Institute is a conservative think tank that influences public policy and political decisions. Its research concentrates on economic policy, foreign and defense policy, and political studies, including education and school reform. Indeed, because of the policy papers of some AEI Fellows, the reform literature is filled with AEI references, and many of the policy reforms across the United States are being shaped by those with ties to AEI.

The AEI originated in New York City in 1938 as the American Enterprise Association. It was founded by a group of business and financial firm executives in conjunction with policy experts to study economic policy. Shortly after World War II, the Association opened an office in Washington, D.C., to lobby against government intrusion into the economy. Soon thereafter, the organization's name was changed to its current designation and the Institute became one of the country's first policy think tanks.

AEI's funding is provided by contributions from foundations, corporations, and individuals. Governed by Section 501(c)(3) of the Internal Revenue Code, the organization is tax exempt. According to its 2007 annual report, AEI had revenues of $28.4 million in 2006 and expenditures of $23.6 million for the same time period. Individual donations of more than $10 million afforded the largest share of the revenue base. Foundation donors include the Bradley Foundation, the Scaife Foundation, the Olin Foundation, and the Smith Richardson Foundation. Corporate donors include Alcoa Foundation, American Express Foundation, Amoco, AT&T Foundation, Charles Stewart Mott Foundation, Chrysler Corporation, Corning Glass Works Foundation, Eastman Kodak Foundation, Ford Motor Company Fund, General Electric Foundation, General Mills Foundation, General Motors Foundation, Kraft, Metropolitan Life Foundation, Morgan Guarantee Trust, Pillsbury Company Foundation, PPG Industries, Procter and Gamble Fund, Prudential Foundation, Shell Companies Foundation, and Wal-Mart.

The governing structure of the Institute includes a president and Board of Trustees. The Board selects the president and is comprised predominantly of corporate chairpersons and conservative individuals. The first president and a key figure in AEI's early history was William Baroody, who coined the organization's slogan, “Competition of ideas is fundamental to a free society.” Christopher DeMuth, who served in the Nixon and Reagan administrations, is the current president and has served in the position since 1987. The organization additionally utilizes a Council of Academic Advisers whose members advise the president and Board of Trustees on the Institute's research agenda, publications, and appointments. The Council's membership consists of prominent conservatives.

The purposes of AEI are “to defend the principles and improve the institutions of American freedom and democratic capitalism—limited government, private enterprise, individual liberty and responsibility, vigilant and effective defense and foreign policies, political accountability, and open debate.” Its primary audiences are legislators, government officials, journalists; its secondary audience is the American citizenry and especially those interested in economic and social policy.

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