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Cato Institute Organization Name provided in the GuideStar Exchange* as of 11/14/2013: Cato Institute

Organization Name as listed in the IRS Business Master File as of 06/09/2014: CATO INSTITUTE

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Washington, DC
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&1002; Registered with IRS Legitimacy information is available
&1002; Financial Data Annual Revenue and Expense data reported
&1002; Forms 990 2013, 2012, and 2011 Forms 990 filed with the IRS
&1002; Mission Objectives Mission Statement is available
&1002; Impact Summary Impact Summary from the nonprofit and Charting Impact Report are available
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Basic Organization Information

Cato Institute Organization Name provided in the GuideStar Exchange* as of 11/14/2013: Cato Institute

Organization Name as listed in the IRS Business Master File as of 06/09/2014: CATO INSTITUTE

* The GuideStar Exchange allows nonprofits to regularly update key information directly to GuideStar. It provides richer and broader information about their programs, impact, finances, people and more.
Physical Address: Washington, DC 20001 
EIN: 23-7432162
Web URL: www.cato.org 
Blog URL: www.cato.org/blog 
NTEE Category: B Educational Institutions
B05 Research Institutes and/or Public Policy Analysis
Year Founded: 1977 
Ruling Year: 1975 
How This Organization Is Funded: Individuals - $17,723,000
Foundations - $5,750,000
Corporations - $545,000


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Mission Statement

Founded in 1977, the Cato Institute owes its name to Cato’s Letters, a series of essays published in 18th- century England that presented a vision of society free from excessive government power. Those essays inspired the architects of the American Revolution. And the simple, timeless principles of that revolution — individual liberty, limited government, and free markets – turn out to be even more powerful in today’s world of global markets and unprecedented access to information than Jefferson or Madison could have imagined. Social and economic freedom is not just the best policy for a free people, it is the indispensable framework for the future. The Institute’s mission is to originate, disseminate and increase understanding of public policies based on the principles of individual liberty, limited government, free markets and peace. Our vision is to create free, open, and civil societies in the United States and throughout the world. Our mandate is to ensure that we use the best available data and evidence in support of our mission to inform public policy. We seek to broaden the parameters of public policy debate to allow consideration of more options that are consistent with our principles. Toward that goal, the Institute strives to achieve greater involvement of the intelligent, concerned lay public in questions of policy and the proper role of government. The sponsorship of those who share our principles is critical and very welcome. Cato undertakes an extensive publications program of independent, nonpartisan research . Books, monographs, and shorter studies are commissioned on a wide range of policy issues. Its current research areas comprise Education and Child Policy, Energy and Environment, Finance, Banking and Monetary Policy, Foreign Policy and National Security, Government and Politics, Health, Welfare and Entitlements, International Economics and Development, Law and Civil Liberties, Political Philosophy, Regulatory Studies, Tax and Budget Policy, Telecom, Internet and Information Policy, Trade and Immigration. Major policy conferences are held throughout the year, from which papers are published thrice yearly in the Cato Journal. The Institute also publishes an annual Cato Papers on Public Policy journal, the quarterly magazine Regulation and a bimonthly newsletter, Cato Policy Report. We offer a monthly online magazine: Cato Unbound. In an era of sound bites and partisanship, Cato remains dedicated to providing clear, thoughtful, and independent analysis on vital public policy issues. Using all means possible — from blogs, Web features, op-eds and TV appearances, to conferences, research reports, speaking engagements, and books — Cato works vigorously to present citizens with incisive and understandable analysis. The Cato Institute maintains the following Web sites: cato.org, elcato.org (Spanish), downsizinggovernment.org, libertarianism.org, humanprogress.org, policemiscounduct.org, and overlawyered.com. In order to maintain its independence, the Cato Institute accepts no government funding and does not perform contracted research. Contributions are received from foundations, corporations, and individuals, and other revenue is generated from the sale of publications. The Institute is a nonprofit, tax-exempt educational foundation under Section 501(c)3 of the Internal Revenue Code.

Legitimacy Information

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Annual Revenue & Expenses (GuideStar Exchange,
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Fiscal Year Starting: April 1, 2012
Fiscal Year Ending: March 31, 2013

Total Revenue $24,865,000
Total Expenses $25,554,000

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Fiscal Year Starting: April 1, 2012
Fiscal Year Ending: March 31, 2013

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Mr. John A. Allison

Profile:

John Allison is the President and CEO of the Cato Institute. Prior to joining Cato, Allison was Chairman and CEO of BB&T Corporation, the 10th largest financial services holding company headquartered in the United States. During his tenure as CEO from 1989 to 2008, BB&T grew from $4.5 billion to $152 billion in assets. He was recognized by the Harvard Business Review as one of the top 100 most successful CEOs in the world over the last decade. Allison has received the Corning Award for Distinguished Leadership, been inducted into the North Carolina Business Hall of Fame, and received the Lifetime Achievement Award from the American Banker. He is a former Distinguished Professor of Practice at Wake Forest University School of Business, and serves on the Board of Visitors at the business schools at Wake Forest, Duke, and UNC-Chapel Hill. Allison is a Phi Beta Kappa graduate of the University of North Carolina at Chapel Hill. He received his master’s degree in management from Duke University, and is also a graduate of the Stonier Graduate School of Banking.

Leadership Statement:

As the new president, I have set my sights on continuing the Institute's efforts to cultivate a freer and more prosperous society. I am excited about joining the team in enriching the understanding of the principles of individual liberty, limited government, free markets, and peace - the foundation of a free and prosperous society. Having spent 20 years in business, I have learned a great deal about organizational cultures. But a think tank provides a new and exciting opportunity. With no tangible bottom line, how do you measure the performance of a think tank? What is the optimal way to achieve Cato's mission of expanding the understanding of public policies based on those principles? What are the greatest opportunities for Cato? First, we can apply the strategic planning principles from business to focus our resources where we can shape the discussion of fundamental policy issues and, hopefully, have an immediate impact on the debate. We must align our most important assets, our scholars, with our strategic goals so their work has the maximum effect. Second, while Cato has a number of first-class departments, there is an opportunity to take these to "world standard" performance such that professors at the most prestigious universities find it necessary to respond to our arguments and when the Supreme Court Justices feel consistently obligated to consider the Cato perspective in reaching their judicial decisions. Third, achieving that goal requires world standard scholars. We intend to attract more of those as well as educate future scholars. The fourth opportunity is to work with others with whom we share specific common goals. Our society is engaged in a fundamental debate over the future of Western Civilization. I joined Cato because it is essential to defending the principles of "Life, Liberty, and the Pursuit of Happiness" in the pursuit of economic well-being and the type of society necessary for individual self-fulfillment and true personal happiness.

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November 2013)

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Programs

Program: Center for Educational Freedom (GuideStar Exchange,
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November 2013)

Budget:
$850,000
Category:
None
Population Served:
General Public/Unspecified
None
None

Program Description:

The Jeffersonian philosophy that animates Cato's work has come to be called "libertarianism" or "market liberalism." Rooted in the traditional American principles of individual liberty and limited government, it combines an appreciation for entrepreneurship, the market process, and lower taxes with strict respect for civil liberties and skepticism about the benefits of both the welfare state and foreign military adventurism. Cato's education research is founded on the principle that parents are best suited to make important decisions regarding the care and education of their children.

Program Long-Term Success:

Universal school choice

Program Short-Term Success:

Active consideration and testing of options such as education tax credits and vouchers.

Program Success Monitored by:

Board of directors and executive leadership.

Program Success Examples:

New Hampshire enacted a K-12 “scholarship donation” tax credit program extending private school choice to families who couldn’t otherwise afford it. This program was inspired by our own model legislation and our staff editorialized in the media and testified in the state legislature to explain the virtues of education tax credits. The enacted legislation is among the best-designed in the country, including an automatic growth provision. Andrew Coulson wrote in the Wall Street Journal that “public schools have squandered their talents on a mass scale. The good news is that a private solution is taking root.” Coulson pointed in particular to the more than 20 school choice programs that exist across the nation. “By making it easier for families to access independent schools,” he told the Journal, “we can do what the president’s policies cannot: drive prosperity through educational improvement.” Simon Lester examined the phenomenon of online education in “Liberalizing Cross-Border Trade in Higher Education: The Coming Revolution of Online Universities.”

Program: Center for Constitutional Studies (GuideStar Exchange,
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November 2013)

Budget:
$1,750,000
Category:
None
Population Served:
General Public/Unspecified
None
None

Program Description:

Cato's Center for Constitutional Studies and its scholars take their inspiration from the struggle of America's founding generation to secure liberty through limited government and the rule of law. The Center's scholars address a wide range of constitutional and legal issues.

Program Long-Term Success:

That the judiciary neither make nor ignore the law but interpret and apply it through the natural rights tradition inherited from the founding generation.

Program Short-Term Success:

Our amicus briefs cited in Supreme Court decisions; our scholars sought out for commentary; our analysts invited to testify before Congress.

Program Success Monitored by:

Board of Directors, Policy Committee and Executive Leadership

Program Success Examples:

The Cato Institute filed 18 amicus briefs to the Supreme Court in 2012, a new high—and was on the winning side in 15 of those cases. Ted Galen Carpenter released The Fire Next Door: Mexico’s Drug Violence and the Danger to America, in which he details the mounting crisis stemming from drug prohibition. This knee-jerk adherence to a failed policy has had devastating consequences for both countries. “The carnage associated with the black-market trade in drugs does not respect national boundaries,” he writes. As former Mexican president Vicente Fox wrote in the book’s Foreword, “There is already an irresistible push around the world for a new, more realistic, and more constructive policy paradigm. Another study, “On the Limits of Federal Supremacy: When States Relax (or Abandon) Marijuana Bans,” by Robert A. Mikos, examined how the anti-commandeering principle protects the states’ prerogative to legalize activity that Congress bans. The Cato Institute brief in Florida v. Jardines, a drug-sniffing dog case, sought to strengthen the Court’s approach to the Fourth Amendment so that privacy protections from government are improved. Tim Lynch launched PoliceMisconduct.net -- a new website intended to bring more attention to the problem of police impropriety. The site features a comprehensive database of media reports on misconduct, allowing visitors to determine the extent to which law enforcement officials exceed the limits of their authority. Cato published Tough Targets: When Criminals Face Armed Resistance From Citizens, which gathered numerous stories where ordinary people used a gun to stop an attempted murder, rape, or robbery. A 2010 Cato study, “Reforming Indigent Defense: How Free Market Principles Can Help to Fix a Broken System,” by Stephen J. Schulhofer and David D. Friedman caught the attention of officials in Texas in 2012 and they are planning to implement this voucher system as a pilot project in Comal County (just north of San Antonio). Like school vouchers, the idea is to promote a free market for criminal defense services as an alternative to the typical public defender model.

Program: Center for Trade Policy Studies (GuideStar Exchange,
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November 2013)

Budget:
$1,525,000
Category:
None
Population Served:
General Public/Unspecified
None
None

Program Description:

The mission of the Cato Institute Center for Trade Policy Studies is to increase public understanding of the benefits of free trade in goods and services and the free movement of people and the costs of protectionism.

Program Long-Term Success:

Free markets at home and abroad and liberal immigration policies with ample legal opportunities, temporary and permanent, for employment in all sectors from unskilled to the most skilled immigrants.

Program Short-Term Success:

Comprehensive immigration reform; Removal of tariffs and subsidies; Advocating a host of reforms for our trade policy that would help deliver higher quality goods to Americans at lower cost, while allowing others around the world to reap the rewards of increased trade.

Program Success Monitored by:

Board of Directors, Policy Committee, Executive Staff

Program Success Examples:

Dan Ikenson authored “Trade Policy Priority One: Averting a U.S-China ‘Trade War,’” in which he discredited the retaliatory rhetoric many are employing against Beijing. He and former Cato scholar Dan Griswold teamed up to debate AFL-CIO executive Thea Lee and World Policy Journal editor David Andelman at a human resources convention hosted by ABC Nightline’s Terry Moran on the question: Is Outsourcing Good for America? Before the debate, 47% answered in the affirmative, 43% went negative, and 10% were undecided. Polling after the debate revealed a decisive move in Cato’s direction with 66% yes, 33% no, and 1% undecided. A Bill Watson op-ed offered some strong arguments for why Congress should grant Russia “permanent normal trade relations” status and earned him an invitation from NPR’s Marketplace. Doug Bandow wrote about the prospect of a European FTA even before the administration made its proposal

Program: Defense & Foreign Policy Studies (GuideStar Exchange,
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November 2013)

Budget:
$1,685,000
Category:
None
Population Served:
General Public/Unspecified
None
None

Program Description:

Cato's foreign policy vision is guided by the idea of our national defense and security strategy being appropriate for a constitutional republic, not an empire. Cato's foreign policy scholars question the presumption that an interventionist foreign policy enhances the security of Americans in the post-Cold War world, and maintain instead that interventionism has consequences, including the formation of countervailing alliances, the proliferation of weapons of mass destruction, and even terrorism. The use of U.S. military force should be limited to those occasions when the territorial integrity, national sovereignty, or liberty of the United States is at risk. Amid the troubling backdrop of the ongoing occupation of Iraq and talk of opening a new front in the Middle East, Cato scholars offered commentary and advanced policy proposals stressing the importance of peace. Cato trade analysts stressed the importance of cooperation and free trade in promoting peace.

Program Long-Term Success:

A free and prosperous world with strong civil institutions backed by the rule of law.

Program Short-Term Success:

The enthusiasm shown by the leading candidates for president in both parties for continued military intervention runs counter to the public’s strong desire for a dramatic change of course. Military intervention should be used as a last resort only. Cato scholars instead propose a principled policy of nonintervention and free trade.  In particular, Cato scholars focus on removing artificial barriers to the movement of goods, services, capital, and people across international borders. 

Program Success Monitored by:

Board of Directors, Executive Staff and Policy Committee

Program Success Examples:

The United States now accounts for nearly half of the world’s defense spending. Yet, according to Christopher Preble, a significant portion of those expenditures are not set aside for our own protection. They simply subsidize our wealthy allies, “allowing them a free ride on America's coattails”—as he wrote in Foreign Policy. For his work in shaping the policy debate over U.S. national security strategy, Defense News recognized Preble as one of the top “100 Most Influential People in U.S. Defense.” Justin Logan attended a group of seminars sponsored by the Keizai Koho Center, which focused on the theme “Japan and US in the context of recent changes in the world: How to cope with global challenges in the coming decade” and gave a lecture on alliance politics and burden sharing on security issues in East Asia. His cover story in the April issue of the American Conservative warned that the prospect for war with Iran has not receded significantly. At Forbes Online, Steven Harner recommended Logan’s study “China, America, and the Pivot to Asia,” noting further “There is so much in Logan’s paper that deserves appreciation… a longer and in many ways better critique of U.S. East Asian policy” Ted Carpenter was one of a dozen scholars asked by Foreign Policy to grade the Obama administration’s handling of international affairs during his first three years in office. Aspenia, an influential European journal, commissioned him to write an article on U.S. security strategy in light of the federal government’s growing budgetary problems. Cato held a forum on the future of the U.S. Navy’s surface fleet that featured Undersecretary of the Navy Robert Work. Doug Bandow participated in a conference in Seoul on U.S.-Korea policy and presented a paper at a similar conference in Washington, D.C. His paper on military activity in the South China Sea for a conference at the Naval War College is to be published in Orbis.

Program: Fiscal Policy Studies (GuideStar Exchange,
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November 2013)

Budget:
$1,495,000
Category:
None
Population Served:
General Public/Unspecified
None
None

Program Description:

Cato's economic research examines federal, state, and local spending and tax issues from a limited government perspective. Specifically, Cato's economic research explores the benefits of lower taxes, a significantly reduced federal budget, and less government involvement in market processes.

Program Long-Term Success:

That the power of the state, most particularly at the federal level, be constrained to those services needed to defend and protect the American citizen.

Program Short-Term Success:

A rational tax code; a Congress that is accountable directly for all directives and statues; a return of functions to the states, local government, and citizens.

Program Success Monitored by:

Board of Directors, Executive Staff and Policy Committee

Program Success Examples:

The Washington Times noted: “In a Cato Institute study, Harvard economist Jeffrey Miron argues slashing unproductive government spending and lowering tax rates simultaneously is the only way to achieve a brighter economic future. He provides a list of programs, large and small, where spending inhibits the creation of wealth.” Chris Edwards’ testimony before the House Budget Committee, “Corporate Welfare Spending vs. The Entrepreneurial Economy,” received extensive media coverage.

Program: Center for Global Liberty and Prosperity (GuideStar Exchange,
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November 2013)

Budget:
$2,950,000
Category:
None
Population Served:
None
None
None

Program Description:

Cato seeks to promote a better understanding around the world of the benefits of market-liberal policy solutions to combat some of the most pressing problems faced by developing nations. In particular, Cato’s research seeks to advance policies that protect human rights, extend the range of personal choice, and support the central role of economic freedom in ending world poverty. Cato scholars also recognize that open markets mean wider choices and lower prices for businesses and consumers, as well as more vigorous competition that encourages greater productivity.

Program Long-Term Success:

New strategic postures: Given the uncertainties in Pakistan, Afghanistan, and the Middle East, Central Asia will present both historic opportunities and serious challenges for the United States in the 21st century. The presence of oil and natural gas, coupled with the region’s geographic location, makes Central Asia strategically important to the United States; a stable Middle East, . Instability in the greater Middle East and the war on terrorism are demanding a new strategic posture. In East Asia see Washington simultaneously reduce the military burden on the American economy and force its trading partners to bear the full cost of their own defense. United States should exercise its influence We open our market to Latin America and the Caribbean goods.

Program Short-Term Success:

The strong positive relationship between economic freedom and poverty reduction we advocate is becoming more accepted and respected. Economic freedom, which includes not only policies, such as free trade and stable money, but also institutions, such as the rule of law and the security of private property rights, increases more than income. It is also strongly related to improvements in other development indicators such as longevity, access to safe drinking water, lower corruption, and dramatically higher incomes for the poorest members of society.

Program Success Monitored by:

Board of Directors, president and executive vice president.

Program Success Examples:

Ian Vasquez created and published the first Worldwide Index of Human Freedom. Its purpose is to be able to track more carefully the state of freedom around the world, to understand better the relationship of freedom to any number of social and economic phenomena, and to improve our appreciation of the way in which various freedoms relate to one another. Andrei Illarionov’s study, “The Conditions for Freedom. Theses on Theory of Freedom and Index of Freedom,” was included. The latest Cato co-published Economic Freedom of the World: 2012 Annual Report revealed that economic freedom in the U.S. has plummeted to an all-time low ranking 18th—a precipitous drop from its previous leadership role. This loss of freedom reflects a decade-long descent (the United States ranked 3rd in 2000) that has accelerated in recent years. In recognition of his role as one of the pioneers of China’s freedom movement, Mao Yushi was awarded the 2012 Milton Friedman Prize for Advancing Liberty. The 83-year-old Mao, recounting his past sacrifices, emphasized that the future of limited government ultimately lies with succeeding generations. “In your hands, more than mine, will rest the final success…and hopes for liberty of our peoples,” he said in his address. in 2013 Cato created a new website charting the well-being of the world historically: HumanProgress.org. Cato has been instrumental in moving immigration policy closer to comprehensive, humane reform.
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Impact Summary from the Nonprofit Additional Information
A Charting Impact Report consists of an organization’s responses to the five questions. Helping validate this self-reported data are three reviews. Once an organization has used the online interface to complete its report, its responses will produce a document with a unique URL that will be shared on this website, on your GuideStar profile, on the reports of charities participating in BBB Wise Giving Alliance evaluations, and – in the future – with other websites and information sources about nonprofits. We encourage organizations to use this URL to share their report on their own website and through their own media channels. Participants will receive guidance about promoting their Charting Impact Report, along with other benefits, once they publish their report.

The Cato Institute does not measure its impact by the number of laws enacted. The aim of the Institute is to change the broader public debate rather than to directly influence policymakers. To that end, Cato uses the following quantitative measures to evaluate the short-term impact of its work. How many publications has the work produced during the year? How many op-eds have been published by Cato analysts and where? How many op-eds have been generated by others and how influential are those authors? How many media citations have there been and from which sources? How many media interviews and with whom? How many policy forums were held? How many conferences? How many Hill briefings? How many meetings with key policymakers? How many books have been sold and distributed?  Over the longer term, the questions become more qualitative and measure elements relative to real change: Have we shifted the terms of the debate? Did we provide an active and timely response to opponents? How many and how important are the policymakers who have requested interviews and copies of studies? Has there been congressional testimony? What legislation has been influenced by the work? Have amicus briefs been filed? How have the ideas presented informed the national debate? Have we established a significant document trail that can be accessed by those looking for ideas and solutions? How has the work changed the dynamic between civil society and governing powers? Have we maintained a high degree of credibility?
For more in-depth information about this organization's impact, view their Charting Impact Report.
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