ABSTRACT

The most distinctive characteristic of American think tanks is their independence. To understand the exceptional nature of the think tank landscape in the United States, one only needs to consider that there are 1,736 independent think tanks in operation in the United States today – more than any other country in the world. Even more astounding is that the vast majority of these organizations are privately supported, something that is unparalleled in the rest world. One of the reasons for this is that the United States has a highly developed civic and philanthropic culture and a set of state and federal tax credits and incentives that encourages corporations and individuals to support think tanks and other civic organizations. In addition, no other country has a policy environment that is able to support such a large number of independent institutions. Clearly, some of these donors are pursuing their own personal and political agendas, but many philanthropists are guided by enlightened self-interest and a desire to help improve global conditions. As privately supported organizations, think tanks enjoy the special tax status of nonprofit organizations, which makes them exempt from state and federal income taxes. This status also makes it possible for individuals and corporations to make contributions to think tanks and receive a tax deduction in return for their charitable contribution.