Brookings Finance

The Brookings Institution, a prominent non-profit public policy organization, maintains a robust finance operation to support its research and operations. Its financial structure relies heavily on a diversified funding model, combining philanthropic contributions, grants, contracts, and an endowment.

Funding Sources: Philanthropic contributions from individuals, foundations, and corporations form a substantial portion of Brookings' revenue. These donations enable the organization to conduct independent research and analysis on a wide range of policy issues. Grants and contracts from government agencies and international organizations also provide funding for specific research projects and initiatives. The endowment, built over decades through successful fundraising and investment strategies, provides a stable source of income to support Brookings' long-term activities.

Financial Management: Brookings operates with a commitment to financial transparency and accountability. Its financial statements are audited annually by an independent accounting firm, ensuring compliance with accounting standards and regulations. The organization's finance team manages budgeting, accounting, financial reporting, and investment activities. They oversee the allocation of resources to various research programs, centers, and administrative departments.

Investment Strategy: Brookings' endowment is managed with a long-term investment horizon, aiming to generate sustainable returns while adhering to prudent risk management principles. The investment strategy involves diversification across asset classes, including equities, fixed income, real estate, and alternative investments. The endowment is overseen by an investment committee comprised of experienced financial professionals who advise on investment policies and strategies.

Expenditures: The largest portion of Brookings' expenditures supports its research activities. This includes the salaries and benefits of research scholars, research support staff, and the costs associated with conducting research projects, such as data collection, analysis, and publication. Other significant expenses include administrative costs, fundraising expenses, and building maintenance.

Impact and Sustainability: Brookings' financial health is crucial to its ability to produce high-quality, independent research and analysis that informs policymakers and the public. Its diversified funding model helps to ensure its independence and sustainability. By maintaining strong financial management practices and cultivating relationships with donors and funding agencies, Brookings seeks to secure its long-term financial stability and continue its mission of advancing policy solutions for a strong, sustainable, and inclusive society.

Brookings publishes detailed information about its finances in its annual reports, which are publicly available on its website. This transparency allows stakeholders to understand how the organization is funded and how its resources are allocated to support its research and policy analysis.