AMERICAN ENTERPRISE INSTITUTE

Freedom. Opportunity. Enterprise.

2013 Annual Report

The American Enterprise Institute is a community of scholars and supporters committed to expanding liberty, increasing individual opportunity, and strengthening free enterprise. AEI pursues these unchanging ideals through independent thinking, open debate, reasoned argument, and the highest standards of fact-based research. Without regard for politics or prevailing fashion, we dedicate our work to a more prosperous, safer, and more democratic nation and world.

Located in Washington, DC, AEI is one of Americas oldest and most influential think tanks. Our nearly 70 full-time scholars are leaders in their fields. Through their research and writings, public events, and government testimony, they stress empiricism over opinion, fact over folly, and reason over rhetoric. AEI is a 501(c)(3) nonprofit organization and is supported primarily by donations from individuals, corporations, and foundations. For more information about AEI, visit our website, www.aei.org.

Message from the

Chairman and President

Chairman Tully M. Friedman and President Arthur C. Brooks

AEI was founded in 1938 when a group of free enterprise advocates from the business community banded together because they believed the Great Depression was being made worse by bad policy decisions in Washington. They also feared that the administration in Washington was using the crisis to turn Americans away from the free enterprise system. Seventy-five years later, we face the same challenges. AEI exists for times such as these. Our community of scholars and supporters is dedicated to the proposition that maximizing liberty, increasing individual opportunity, and fighting for free enterprise give the most people the opportunity to create the best life. Indeed, at AEI we believe that free enterprise creates the best and only path to freedom and human flourishing especially for the poor and vulnerable. We have more than 200 years of history to prove that statism leads to stagnation and misery, while liberty produces prosperity and human flourishing. In everything we do, we seek lasting prosperity rather than degrading and ineffective treatment of poverty. We believe in opportunity rather than redistribution and in principle over power. We seek the promise of the American dream for every man, woman, and child who has not yet had the chance to earn his or her success. Our mission comes alive every day in our expanding work across a range of critical policy issues as we communicate our ideas to new and growing audiences. It is an exciting time for the Institute. We are adding new staff and scholars in key policy areas, from economics to social policy to our nations defense. In 2013, we launched two new AEI research centersthe Center for Internet, Communications, and Technology Policy and the Center on Higher Education Reformand bolstered our cadre of scholars in the Marilyn Ware Center for Security Studies. We are investing in our nations future by further building out our student outreach programs and sharing AEIs core values of free enterprise and American

leadership on college campuses. Over the past year, we have conducted 81 debates, lectures, or visits at top colleges and universities across the country. We are engaging in new ventures and nontraditional projects to diversify our community. In early 2014, AEI will host His Holiness, the Dalai Lama, at AEI headquarters for a two-day symposium on the morality of economic systems, the pursuit of happiness, and human flourishing. This event is an extension of AEIs ongoing project on human happiness, freedom, and opportunity. Thanks to our communications, media, and government relations staffs, AEI is well positioned for continued impact. Our scholars are dominating the op-ed pages of Americas leading newspapersfor example, appearing, on average, once every four days on the Wall Street Journals editorial pageand have increased their appearances on nationally broadcast television and radio programs by roughly 60 percent over the past year. We are in the process of helping to fundamentally shift the tone and terms of todays policy debates. We are creating influential ideas that can reach all sides of todays discourse. AEIs new headquarters building, scheduled to open in 2015, will further bolster our progress and improve AEIs operations in a number of important ways. We are humbled by the leadership of AEIs trustees and donors, who have already committed magnificent gifts toward this once-in-a-lifetime project, a permanent expression of our shared values. We are deeply grateful to you, our moral, intellectual, and financial partners, who have helped AEI thrive over the years. We are trying to achieve nothing less than resetting the center of moral gravity in public policy. With your support, we have become not just a highperforming think tank, but the epicenter of a cultural movement for our beliefs.
Tully M. Friedman Chairman Arthur C. Brooks President

Message 1

The Year in Review

AEIS IMPACT IN 2013

Over the past year, AEIs scholars have addressed Americas most critical policy challenges, offering unparalleled scholarship rooted in empirical study and innovative policy solutions backed by real-world experience. They have continued AEIs rich 75-year tradition of providing the best ideas, analysis, and recommendations to our nations policymakers, influencers, business leaders, future leaders, and the public at large. And although our methods of communicating our work have advanced, one thing has remained constant since the Institutes founding: our belief that the free enterprise system gives everyone the opportunity to create a better life and allows all people to flourish.

Freedom Opportunity Enterprise

2 AEI Annual Report

Arthur F. Burns Fellow in Financial Policy Studies Peter Wallison and Resident Fellow Edward Pinto

Peter Wallison and Edward Pinto point out that nowhere is such recklessness more apparent than in the Federal Housing Administrations (FHAs) underwriting practices. But rather than addressing the FHAs risky lending, the Consumer Financial Protection Bureaus new regulations grandfathered the FHA policies for seven years. An AEI web project, www.NightmareAtFHA.com, draws attention to the issue, identifying 9,000 zip codes with a projected foreclosure rate of 10 percent or greater.

The Consumer Financial Protection Bureau promises that its new qualified mortgage regulation will protect consumers from irresponsible mortgage lending.

Winter
President Obama is sworn in for his second term in office and delivers his inaugural address. The 113th Congress begins.

AEI organizes a series of policy briefings on Capitol Hill for new and senior Hill staff. These briefings cover financial services policy, the economic crisis in Europe, tax policy, retirement and entitlement reform, health policy, politics and polling, and foreign and defense policy. Nearly 300 Hill staffers participate.

Henry Wendt Chair in Political Economy Nicholas Eberstadt

President Obama attests that our entitlement programs do not make us a nation of takers. Nicholas Eberstadt responds that week with a Wall Street Journal op-ed refuting the presidents claim. The article ultimately elicits more than 900 comments on WSJ.com, referrals from dozens of key media websites, and a mention on Fox Newss America Live in the days following the address. The op-ed is based on Eberstadts October 2012 monograph, A Nation of Takers (Templeton Press).
Year in Review 3

Frederick Hess releases his newest book, CageBusting Leadership (Harvard Education Press), which shows school and district leaders how to transform teaching, learning, and schooling through effective leadership and how to do more with less. The book launches at an AEI event featuring Michelle Rhee (founder and CEO of Students First), Kaya Henderson (chancellor of DC Public Schools), and other notable education leaders from around the country. Later that month, Hess presents at the Education and Workforce Committee Session of the National Governors Association.

Commandant of the Marine Corps James F. Amos and Resident Fellow Mackenzie Eaglen at AEI

AEI launches a four-part speaker series with the Joint Chiefs of Staff, focusing on Americas military capabilities in light of todays mounting defense cuts. General James F . Amos, commandant of the Marine Corps, commences the series. Subsequent events feature the Army Chief of Staff General Ray Odierno, Chief of Naval Operations Admiral Jonathan W. Greenert, and Air Force Chief of Staff General Mark Welsh.

President Obama calls on Congress to temporarily delay a series of automatic spending cuts set to hit federal K12 education spending, further extending the fiscal uncertainty facing districts and schools.

A series of bombing attacks in Damascus, Syria, kills 83 people and injures 250. Meanwhile, Russia admits it has been delivering military hardware and light weapons to the governments of Syria and Mali.

The US military prepares for sequestrations automatic cuts to the defense budget, which will take effect in March. President Obama delivers the 2013 State of the Union address.

Senator Saxby Chambliss (R-GA) at AEI US House of Representatives Majority Leader Eric Cantor (R-VA) at AEI

The week before the address, US House of Representatives Majority Leader Eric Cantor (R-VA) previews his response to the State of the Union and delivers his major messaging speech at an AEI public event. His remarks focus on conservative reforms in areas like education, health care, innovation, and job growth that the 113th Congress can embrace to increase human flourishing.
4 AEI Annual Report

Senator Saxby Chambliss (R-GA), vice chairman of the Senate Select Committee on Intelligence and member of the Senate Armed Services Committee, gives a keynote address at AEI before a packed audience on the nature of the al Qaeda threat today and its growing affiliates in Syria, Mali, Yemen, Somalia, and Iraq.

Frederick Kagan hosts a public event with Senator John McCain and General Jack Keane (Ret.) on Iraq, 10 years later. AEI also hosts the first briefing of the Defining the Threat educational series on Capitol Hill (in partnership with the Institute for the Study of War and the Reserve Officers Association) on threats facing the United States. It is attended by 60 activeduty military, reserve officers, retired members of the armed forces, and Hill staff.
Retired General Jack Keane, Senator John McCain (R-AZ), and Christopher DeMuth Chair and Critical Threats Project Director Frederick Kagan at AEI

March 20 marks 10 years since US forces invaded Iraq, launching the Iraq War.

Sequestration takes effect. Venezuelan President Hugo Chvez dies.

Fellow Roger Noriega on Univision

Mackenzie Eaglen releases her major paper Shrinking Bureaucracy, Overhead, and Infrastructure: Why This Defense Drawdown Must Be Different for the Pentagon at a public AEI event that features a panel of defense experts discussing the right and wrong ways to further cut the defense budget. The following month, the panel presents on Capitol Hill before nearly 60 Capitol Hill staffers. Eaglen has published prolifically regarding sequestrations consequences, penning articles that appeared in Time, US News & World Report, and the Wall Street Journal.

AEI produces a series of video interviews with Roger Noriega in the hours following Chvezs death, explaining how the United States can help drive democratic change in Latin America and describing the high stakes for the countrys elections. Noriega produces a number of op-eds on Venezuelas next steps forward and conducts interviews in Spanish for Univision.

Year in Review 5

Resident Scholar and Director of Russian Studies Leon Aron on Fox News

Leon Aron does 16 broadcast interviews in one day (including two cable television interviews and national and regional radio) to discuss the suspects alleged ties to Chechnya and the history of Islamic radicals in that region of Russia, including 9/11 jihadist ties to Chechnya. He writes a series of posts on AEIdeas to help readers understand the regions deep ties with al Qaeda. Aron is subsequently asked to testify before Congress on Islamic extremism in Chechnya.

Two bombs explode at the Boston Marathon, killing 3 and injuring 264 others.

Spring
Charitable giving declined sharply after 2007 and still hasnt fully recovered. The recession and the weak recovery pushed down incomes. At the same time, the increasingly volatile policy environment has stirred up uncertainty about future tax policy. Nerve gas is reported as being used in Aleppo, Syria. The US House of Representatives Energy and Power Subcommittee holds a hearing on US energy abundance.

AEI launches its Philanthropic Freedom Project, convening leading philanthropists from across the nation to explore best practices, opportunities, and challenges facing the charitable sector. The project is also producing original research on how charitable giving has changed in the United States in the wake of the Great Recession and how these changes have serious ramifications for future tax policy.

On the same day, a group of experts gather at AEI to debate the merits and follies of restricting US exports of liquefied natural gas. Indian Ambassador to the United States Nirupama Rao, who has advocated for US natural gas exports, gives a keynote address.

Former senator Joseph Lieberman and former senator and Visiting Fellow Jon Kyl

Visiting fellow Jon Kyl and former senator Joseph Lieberman launch their new American Internationalism Project with a joint op-ed in the Washington Post on the benefits of US global leadership and costs of retrenchment. AEI circulates the piece to more than 11,000 foreign policy enthusiasts as well as top national media outlets.

6 AEI Annual Report

Representative Paul Ryan (R-WI) at the AEI Annual Dinner

Representative Paul Ryan (R-WI) receives the Irving Kristol Award at AEIs Annual Dinner for his contributions to improve government policy and social welfare. In his remarks on Conservatism and Community, Ryan discusses how we can save the American Ideaby giving people the resources and the space to thrive.

Mackenzie Eaglen and Thomas Donnelly release a joint letter (cosigned by 25 representatives from 10 think tanks across the ideological spectrum) urging administration and congressional leaders to address the growing imbalances with the defense budget that threaten the health and long-term viability of Americas military. The letter is rolled out during an event on Capitol Hill, which is attended by more than 200 staffers, features remarks by Representative Jim Cooper (D-TN), and results in more than 20 news stories.

AEI celebrates 75 years since its founding. The Department of Defense announces it will impose furloughs on nearly 700,000 DOD civilians beginning the week of July 8.

Summer
The American Psychiatric Association unveils the fifth edition of its handbook of diagnoses, the Diagnostic and Statistical Manual of Mental Disorders (DSM-5). The Bureau of Labor Statistics releases the May unemployment report, which shows an unemployment rate of 7.6 percent and 4.4 million workers who have been unemployed for six months or longer.

Resident Scholar Sally Satel on NBCs Today Show

Sally Satel appears on NBCs Today Show and on NBC Nightly News and publishes a major piece in the New York Times to discuss how little attention psychiatrists will give the new DSM and why it will not alter clinical practice. She also previews her June 2013 book, Brainwashed: The Seductive Appeal of Mindless Neuroscience (Basic Books).

Michael Strains article A New Jobs Agenda appears in National Review and draws the attention of Reihan Salam (R Street Institute senior fellow and the author of National Review Onlines The Agenda blog). Salam notes, With his new jobs agenda, Strain wins my vote for most important conservative reformer and the one who could have the biggest beneficial impact on the well-being of Americans struggling to climb the economic ladder.

Year in Review 7

In the days surrounding the Federal Open Market Committee meeting, several AEI scholars, including Kevin Hassett, Stephen Oliner, and Phillip Swagel, dominate the business news networks, with multiple appearances on CNBC programs and bookings on the Fox Business network to discuss the market uncertainty and Bernankes statements. John Makin writes an AEI Outlook on the topic.

Senator Mitch McConnell (R-KY) at AEI

Senator Mitch McConnell (R-KY) gives a keynote address at AEI, commenting on the use of government power to stifle speech and proposing solutions that protect the individual rights guaranteed to all US citizens. More than 120 people attend the event, which is covered by various media crews, including NBC, Fox, and C-SPAN.

Federal Reserve Chairman Ben Bernanke conducts a press conference following the meeting of the Federal Open Market Committee and hints at QE tapering.

In early June, Congress holds its fourth hearing on the Internal Revenue Services targeting of conservative groups prior to the 2012 election.

The National Security Agencys classified terrorist surveillance program is exposed, with the Guardian publishing stories based on Edward Snowdens leaks.

The Supreme Court issues its opinion in the landmark affirmative action case Fisher v. University of Texas and also strikes down a portion of the 2006 reauthorization of the Voting Rights Act (Shelby County v. Holder).

Fellow Marc Thiessen at AEI

Marc Thiessen organizes an event with former director of the National Security Agency Michael Hayden to discuss the significance of the NSA leaks. Six media crews cover the event, including CBS, Fox, and Voice of America.

On the day of the Supreme Courts Fisher ruling, AEI visiting scholar Edward Blum hosts a media conference with plaintiff Abigail Fisher to respond to the opinion. Footage is aired live by ABC, CBS, CNN, C-SPAN, Fox, MSNBC, and NBC, and prominently featured on all three network evening newscasts and on Fox Newss Special Report and CNNs The Lead. The AEI press conference is also referenced, or Blum is quoted or featured, in dozens of regional and national newspaper and wire stories. The following day, Blum is at the Supreme Court when the ruling on the Voting Rights Act is issued, providing real-time reaction in more than 10 broadcast interviews. Over three days, Blum, AEI, and the Fisher press conference are mentioned (in broadcast alone) 1,808 times or more than 25 times an hour in radio and television across the country.

8 AEI Annual Report

In advance of the vote, AEI visiting scholar Vincent Smith hosts a Capitol Hill panel discussion before a packed audience, discussing the bills shortcomings. This follows a quintet of op-eds commissioned by AEI that run in high-circulation outlets such as CNN.com and the Atlantic, as well as an op-ed by Smith for US News & World Report, all criticizing the bill. Immediately following the Houses rejection of that bill, Smith outlines substantive reforms that policymakers should pursue in a revised bill. Smith continues to be a go-to resource for high-level reporters, providing background for the New York Times, the Economist, and Reuters.

W. H. Brady Scholar Charles Murray in an AEI video

Charles Murrays new book, American Exceptionalism: An Experiment in History, is released by the AEI Press. Aimed at college students, Murrays book asks the question, Is America still exceptional? AEI produces a video to illustrate the books concepts, which is viewed more than 55,000 times on YouTube.

The farm bill fails to pass in the US House of Representatives.

The United States celebrates 237 years of independence.

The student loan interest rate doubles on roughly one out of every three new student loans.

Amid mass protests across the country, Egyptian President Mohamed Morsi is deposed in a military coup.

The Federal Communications Commission addresses the issue of modernizing its E-Rate program at its public meeting.

Andrew Kelly, founding director of AEIs newly launched Center on Higher Education Reform, is in high demand from journalists for comment, appearing on Fox News and Bloomberg, among other programs. His recent writings on this and related issues include pieces in the Atlantic, the Chronicle of Higher Education, Forbes, and US News & World Report.

Three days before the FCC is scheduled to discuss this topic, FCC commissioner Ajit Pai visits AEI to discuss his plan for revamping the E-Rate program, which subsidizes telephone service and Internet access for schools and libraries.

Michael Rubin weighs in on a daily basis on the unrest in Egypt through AEIs AEIdeas blog and appears as a panelist on ABCs This Week on Sunday, July 7.
Resident Scholar Michael Rubin on ABCs This Week

Year in Review 9

Within the span of a week, Scott Gottlieb authors a Real Clear Markets article pointing out how the law impedes young professionals economic mobility and a Wall Street Journal piece shedding light on Obamacares expansion of the 340B drug discount program. Joseph Antos discusses health spending both broadly and in relation to the PPACA in testimony before the Senate Budget Committee.

Christina Hoff Sommers releases her updated and revised version of The War Against Boys: How Misguided Policies Are Harming Our Young Men (Simon and Schuster), offering proof that Americas culture is rigged against boys and offering solutions for male underachievement. She pens op-eds or articles appearing in Time, the Atlantic, Real Clear Politics, the New York Times, the Huffington Post, and Slate and is interviewed by more than 40 radio and television stations.

The Obama administrations delay of the employer mandate in the Patient Protection and Affordable Care Act sparks broader debate over specific provisions of the law.

Students around the country begin to return to school for the new year.

The House Financial Services Committee marks up the Protecting American Taxpayers and Homeowners (PATH) Act for housing finance reform.

The US State Department issues a global travel alert and closes 22 US embassies and consulates in response to threats that lawmakers have deemed the most serious to emerge from al Qaeda since 9/11.

Peter Wallison gives the bill a ringing endorsement in his testimony before the House Financial Services Committee. Alex Pollock compares the PATH Act and the Senates competing bill in a piece for American Banker, and Edward Pinto publishes a piece in Real Clear Markets calling for housing finance reform. Additionally, AEIs team launches its Government Mortgage Complex special topics page on AEI.org, which includes an animated timeline that tracks changes in federal housing policy in the run-up to the financial crisis. This follows the publication of Wallisons major book earlier in the year, Bad History, Worse Policy: How a False Narrative about the Financial Crisis Led to the Dodd-Frank Act (AEI Press).

Critical Threats Project Senior Analyst Katherine Zimmerman and Representative Tom Cotton (R-AR)

AEI senior analyst Katherine Zimmerman publishes an analysis on recent developments, and AEI produces a video with Zimmerman explaining the threat of al Qaeda in the Arabian Peninsula. She also appears on FoxNews.com Live discussing the threat. AEIs Critical Threats Project has been writing about and analyzing the threat, particularly in Yemen, for some time, producing a major report earlier in the year, Al Qaeda and Its Affiliates in 2013. In September, it releases another report, The al Qaeda Network: A New Framework for Defining the Enemy, at an AEI event featuring Representative Tom Cotton (R-AR).

10 AEI Annual Report

Foreign and Defense Policy Studies Vice President Danielle Pletka on CBSs Face the Nation

AEI foreign and defense policy scholars appear 30 times in the month of August alone on television or radio shows on networks including Fox, BBC, and CNBC. On September 8, Danielle Pletka appears on CBSs Face the Nation to discuss President Obamas approach to the conflict in Syria. Pletka and her colleaguesincluding Jonah Goldberg, Frederick Kagan, Jon Kyl, Michael Rubin, Marc Thiessen, Paul Wolfowitz, and visiting scholar John Yooalso publish a number of op-eds on the issue in outlets including the New York Daily News, the Weekly Standard, National Review Online, the Washington Post, and the Wall Street Journal. In July, John Bolton testifies before the House Subcommittee on the Middle East and North Africa regarding US involvement in Syria.

President Obama presents evidence that Syrian President Bashar Assad used chemical weapons against innocent Syrian civilians earlier in the month.

Fall
September marks the fifth anniversary of the financial crisis of 2008.

Congress is on recess for the month, with members spending time in their home districts to meet and talk with their constituents.

AEI President Arthur Brooks guest hosting the Hugh Hewitt Show

Arthur Brooks guest hosts two episodes of the Hugh Hewitt Show, which has an audience estimated at more than two million listeners, talking about how conservatives must start fighting for people instead of against policies and must tap into the values of compassion and fairness shared by all Americans. Washington Post columnist Jennifer Rubin highlights Brookss radio series, attesting that Brooks delivers a thought-provoking and fact-based argument for why conservatives must talk about the poor and fairness.

Karlyn Bowman and AEI researcher Andrew Rugg release an e-book on public opinion about the financial crisis titled, Five Years After the Crash: What Americans Think about Wall Street, Banks, Business, and Free Enterprise. The study compares hundreds of questions asked by major pollsters to determine if Americans have changed how they think about the American economic system since the crisis.

Year in Review 11

Michael Barones latest book, Shaping Our Nation: How Surges of Migration Transformed America and Its Politics (Crown Forum), is released. Using political and social data, Barone illuminates a new angle on Americas rise, showing that our nation is the product of a series of large, unexpected mass movementsboth internal and externalwhich reshaped the nation and created lasting tensions that we are still grappling with today. The book was featured in a Saturday essay in the Wall Street Journal.

Eugene Fama is a member of AEIs Council of Academic Advisers and is widely recognized as the father of modern finance. Fama is the Robert R. McCormick Distinguished Service Professor of Finance at the Booth School of Business at the University of Chicago. His decades-long research demonstrates that price movements are extremely difficult to predict in the short run, a finding that fueled the rise of stock index funds.

Immigration reform continues to be at a stalemate in the US Congress, though House Judiciary Committee chairman Bob Goodlatte (R-VA) announces that his panel is working on four new pieces of legislation dealing with bordercontrol laws.

Eugene F. Fama, Lars Peter Hansen, and Robert J. Shiller are awarded the 2013 Nobel Prize in Economic Sciences.

The rapid pace of innovation and investment in broadband Internet services has been a major bright spot in the US economy, contributing disproportionately to growth and productivity.

The US federal government announces a shutdown, as Congress is unable to agree on a spending plan on how to fund the government in the new fiscal year.

AEIs new Center for Internet, Communications, and Technology Policy, directed by Jeffrey Eisenach and with contributions from AEI visiting fellow James Glassman, AEI resident scholar Claude Barfield, and AEI visiting fellow Richard Bennett, is announced in a weekend edition of the Washington Post, included in Politicos Morning Money email the following Monday, and blasted in an AEI press release to reporters. The centers first public event features keynote speakers Jason Furman (Council of Economic Advisers chairman) and Representative Greg Walden (R-OR), chairman of the House Subcommittee on Communications and Technology.
12 AEI Annual Report

Arthur Brooks delivers a lecture at the National Geographic Museum the day the shutdown begins, defining the pillars of human happiness and explaining that earned successcreating value with your life and value in the lives of other peoplethrough meaningful work is critical to Americans happiness.

Outreach and Communications

One of AEIs major goals over the past year was to expand our communications and outreach initiatives so that we could make the moral case for free enterprise to millions more Americans. AEI has made substantial progress, building on the significant momentum of previous years efforts. We have expanded our audiences to increase the profile of AEIs policy ideas and work, injected our biggest ideas into the mass market more effectively, and become the go-to source for communications and messaging for policymakers who share our free enterprise views. Thanks to our community of scholars and supporters, we are building the foundation for transformational change in the years ahead.

DYNAMic Effective Relevant

Outreach and Communications 13

In the first six months of 2013, AEI had 728 television bookings on major outlets this is an increase of 70 percent over the same period in 2012.

Media
AEIs media team has helped our scholars generate explosive growth in the placement of their work in traditional media and in their appearances on nationally broadcast television and radio programs. Our scholars are collaborating with acclaimed media trainer Beverly Hallberg, leading to an increased presence on major networks, such as ABC, Bloomberg, CBS, CNBC, Fox, Fox Business, NBC, NPR, and PBS. AEI scholars have appeared on 14 network news broadcasts (nightly, morning, or Sunday shows) in 20138 of which were were one-on-one interviewsreaching more than a half billion television viewers in the United States alone with AEIs free enterprise message. AEI scholars also continue to dominate the op-ed pages of the nations leading newspapers, publishing more than 1,500 times in 2013. Additionally, they are interacting 2030 times every day with the press, providing background information and key quotations.

Web, Digital Media, and Video

AEIs website and design teams are working closely with program areas to turn more of our scholars ideas and rigorous research into engaging forms to captivate a broader audience. A special focus is the production of highly compelling charts, graphs, and infographics. Our web team is also working to unify our three major websitesAEI.org, American.com, and AEI-Ideas.orginto a single, redesigned site, launching in 2014. The Institute has made incredible strides in our video capabilities and social media platforms. We are producing timely videos with our scholars, sometimes working through the night to ensure that AEIs voices are some of the first to be heard for major, latebreaking events. Our new AEI Top Three videos, which outline the major reform ideas or must-know facts on a particular issue, are helping to educate the public on the most important policy issues facing our nation and world.

14 AEI Annual Report

Top Communications Achievements in 2013

Nightmare at FHA. Drawing on Edward Pintos research, AEI created
an interactive website (NightmareAtFHA.com) to show the damaging effects of government housing policy in urban neighborhoods. This work resulted in exclusive coverage in the New York Times, coverage by major broadcast television and radio programs, a syndicated op-ed by Pinto, and an invitation for Pinto to testify before Congress. In July 2013, the Protecting American Taxpayers and Homeowners (PATH) Act of 2013 was revealed, drawing heavily on Pintos research.

Impact of Sequestration on Americas Readiness.

Mackenzie Eaglen sounded the alarmthrough op-eds, white papers, media appearances, and private meetingson how the across-the-board spending cuts imposed by sequestration compromise the militarys ability to respond to imminent threats and Americas ability to lead. She scored a major victory when Pentagon leaders reversed course and made public key findings from their recent Strategic Choices and Management Review after Eaglen wrote repeatedly about why publicizing these results was so important. On the same day that he outlined the reports findings to the public, Secretary of Defense Chuck Hagel hosted Eaglen and a select group of defense analysts for a private briefing with senior Pentagon leadership.

Cage-Busting Leadership. To promote

Frederick Hesss latest book, Cage-Busting Leadership (Harvard Education Press, February 2013), AEI created a special landing page on our website, which included a series of videos featuring education reformers from around the country talking about what cage-busting leadership means to them. We also inaugurated our new live-blogging platform at a book event, which, together with the special website, drew tens of thousands of additional viewers to this work.

Values & Capitalism Video Series. AEI developed

short YouTube videos to help illustrate the new Values & Capitalism monographs concepts. The videos have collectively been viewed more than 300,000 times. Our Economic Growth video highlights an entrepreneurial Honduran toy company, Tegu, illustrating the power of economic growth to lift an entire community out of poverty and generate human flourishing.

Best of Both Worlds Health Plan. AEI adjunct scholars and worldrenowned health economists put forward a bold, innovative proposal to replace the Affordable Care Act with a market-based alternative. Extensive media training made the lead author an effective ambassador for the plan, while a video, glossary, and infographics on the web helped make the proposal accessible to broader audiences. Website visitors spent an average of more than eight minutes learning about this planthe industry standard is two minutes.

Outreach and Communications 15

2013 BY THE NUMBERS

116
Public Events
held at AEIs headquarters, many of them involving high-level policymakers, top business leaders, and notable scholars, and attracting nearly 9,000 attendees over the course of the year. More than 30 of these events had media crews in attendance.

Background Conversations

with journalists, bookers, and producers

591

45

Testimonies

2,854

Applicants

sought a coveted summer internship at AEI for only 60 available positions

by AEI scholars before congressional committees in the 113th Congress thus farnearly 54 percent more than the next think tank in line

STUDENTS participating in

5,200

AEIs Values & Capitalism program, leadership conferences, campus events, Summer Institute, and internship program

2,739
interviews
by AEI scholars on broadcast media

Arthur Brooks and the 2013 AEI Summer Institute class

1,077,987
Page Views

on average per month across AEIs three web properties (www.aei.org, www.american.com, and www.aei-ideas.org) and 560,429 monthly unique visitors

platforms to share their work and connect directly with other policy analysts, journalists, policymakers, and business leaders.

66
Op-eds Published
by AEI scholars in the New York Times, Washington Post, and Wall Street Journal

Policymaker and Coalitions Outreach

FACEBOOK and TWITTER followers of AEI and Arthur Brooks

1,407,558
Views

181,788

on AEIs YouTube channel

These numbers reflect the period January 1 to November 13, 2013.

Our team is also producing unique videos to help market our scholars work to new audiences. Viewers of AEIs video content on our YouTube page have especially grown. We had almost no presence in this important space two years ago, but we now have more than 1.4 million views. AEIs blog, AEIdeas, continues to grow as we expand the sites content, experiencing 200 percent growth in unique visitors since 2011. Today, AEIdeas is a go-to source for pro-market breaking news. More and more media outletsincluding CNN, Forbes, Politico, and the Washington Posthave begun to regularly refer their readers to our scholars posts. Our social media efforts have attracted many more people (and more diverse audiences) to AEIs work, including top reporters. Our Facebook and Twitter followers have increased by 200 and 300 percent, respectively, over the past two years. AEIs scholars are increasingly using these and other social media

Our government affairs team and coalitions staff meet regularly with outside groups at the national, state, and local level to share the latest AEI research and learn about policy issues of prime importance to people across the country. Our team facilitated hundreds of meetings between AEI scholars and members of Congress and staff in 2013; as a result, our scholars have been asked to testify before congressional committees in the 113th Congres more times than scholars from any other think tank. More important than these statistics, however, is the messaging impact that we are having among policymakers. For example, we are holding free enterprise messaging sessions and educational seminars with members of Congress and their senior staffs. At these sessions, AEI scholars share their expertise and explain how lawmakers can speak about crucial policy issues by appealing to the moral basis for free enterprise. In the process, we are helping to shift the tone and terms of todays policy debates. AEI has also been organizing a series of debates between AEI scholars and policy experts from other organizationsorganizations that represent the entire political spectrum. We believe that these debates are an excellent opportunity to showcase our ideas before

16 AEI Annual Report

A Sampling of Schools AEI has Visited this Year

AIR FORCE ACADEMY CARNEGIE MELLON UNIVERSITY CLAREMONT MCKENNA COLLEGE COLUMBIA BUSINESS SCHOOL CORNELL UNIVERSITY DUKE UNIVERSITY GENEVA COLLEGE GEORGETOWN UNIVERSITY HILLSDALE COLLEGE JOHNS HOPKINS UNIVERSITY KENYON COLLEGE NEW MEXICO STATE UNIVERSITY NORTHWESTERN UNIVERSITY PRINCETON UNIVERSITY SEATTLE PACIFIC UNIVERSITY TUFTS UNIVERSITY UNIVERSITY OF COLORADO UNIVERSITY OF MICHIGAN UNIVERSITY OF MISSOURI UNIVERSITY OF NORTH CAROLINA UNIVERSITY OF NOTRE DAME UNIVERSITY OF PENNSYLVANIA UNIVERSITY OF VIRGINIA UTAH STATE UNIVERSITY WHEATON COLLEGE YALE UNIVERSITY
Values & Capitalism Summer Conference Class of 2013

[AEIs free enterprise leadership conference was] perhaps the best thing I did in my semester [in Washington and] a very eye-opening experience. . . . I learned so much.
Justin Kenney, Boston University junior, who classifies himself as a progressive Democrat.

large and politically diverse audiences, and we have received strong praise from attendees who were not previously familiar with AEIs research and free enterprise ideas.

Reaching the Next Generation of Leaders

To transform the way Americans think and speak about free enterprise, it is more essential than ever to reach tomorrows leaders. AEIs Campus Programs team aims to make AEIs core values of free enterprise and American leadership in the world ascendant on college campuses. We are working with a network of motivated, talented student leaders and faculty partners and have recently launched a number of new initiatives to cultivate Americas young leaders. In the past year, we have hosted events with AEI scholars and staff at nearly 60 schools, introducing students to compelling, substantive arguments for free enterprise. We produced five more monographs in our Values & Capitalism series (geared toward giving students an introduction to free enterprise concepts across a range of issue areas) and produced short, dynamic videos to bring to life the concepts they

addressed. Students and faculty in a number of schools are using these monographs as part of their course curriculum. We also hosted our fourth annual Summer Institutereceiving 403 applications for 25 available spotsand held free enterprise leadership conferences for local students and interns at AEIs headquarters. These conferences aim to take students from a casual understanding of the importance of free enterprise to a working knowledge of the history of free enterprise, the threats to the system today, and the winning arguments to more effectively communicate these ideas on campus.
Connect with us online
www.aei.org

www.aei-ideas.org www.facebook.com/AEIonline @AEI www.linkedin.com/company/ american-enterprise-institute www.youtube.com/AEIVideos

Outreach and Communications 17

Expanding AEIs Intellectual Firepower

To win the fight for free enterprise, AEI must be committed to communicating our work to growing audiences, as described in the previous pages. But underpinning our communications work is our unparalleled scholarship. Ideas always have been and always will beAEIs primary focus. We are delighted to have expanded our community in 2013 to include the following scholars and fellows.

This institute has been at the center of the debate about American foreign policy for decades and the work that your scholars produce on a daily basis has been a great help to me throughout my three years in the US Senate.
Senator Marco Rubio (R-FL), November 20, 2013

David Adesnik joined AEIs Marilyn Ware Center for Security Studies as a visiting fellow. He is undertaking a thorough review of open-source material regarding US efforts to build partner capacity and will investigate whether the amount of money Congress appropriates to train and equip foreign forces aligns with strategic objectives. Adesniks professional experience includes working as an irregular warfare and operations research analyst in the Office of the Secretary of Defense and as a research staff member at the Institute for Defense Analyses. Adesnik deployed to Baghdad in December 2007 as an operations analyst for the Combined Joint Task Force Troy. Richard Bennett joined AEIs Center for Internet, Communications, and Technology Policy as a visiting fellow. Bennett has a 30-year background in network engineering and standards. He was vice chair of the IEEE 802.3 task group that devised the original Ethernet over twisted pair standard, and has contributed to wi-fi standards for 15 years. He was

18 AEI Annual Report

the cofounder of the Open Token Foundation, the first network industry alliance to operate an interoperability lab. He has worked for leading applied research labs and holds four networking patents. He speaks frequently at network industry gatherings and policy conferences in the United States and abroad and has appeared before Federal Communications Commission (FCC) hearings and been cited in FCC submissions. James K. Glassman returned to AEI as a visiting fellow and is contributing to AEIs new Center for Internet, Communications, and Technology Policy. Glassman was most recently the founding executive director of the George W . Bush Institute and formerly served as undersecretary of state for public diplomacy and public affairs in the Bush administration. Before that role, Glassman was the chairman of the Broadcasting Board of Governors, a senior fellow at AEI in economics and technology policy, and moderator of three weekly television programs. He has also had a long, distinguished career as a journalist and publisher. William C. Greenwalt joined AEIs Marilyn Ware Center for Security Studies as a visiting fellow to study defense and aerospace acquisition issues and industrial base policy. He has broad experience in the field and has served in senior positions at the Pentagon, in Congress, and in the defense industry. Immediately before joining AEI, he served as president of acquisition policy at the Aerospace Industries Association. AEI welcomed Paul H. Kupiec as a resident scholar on our Economic Policy Studies team. Immediately before joining AEI, he was an associate director at the Federal Deposit Insurance Corporation, Center for Financial Research Branch, where he was responsible for three sections of economists: quantitative research assessment,

banking research, and special studies. He also served as the chairman of the Research Task Force Subcommittee of the Basle Committee on Bank Supervision. He is the editor or associate editor of a number of academic journals. Former senator Jon Kyl joined AEIs Marilyn Ware Center for Security Studies this year as a visiting fellow. He is codirecting AEIs American Internationalism Project with former senator Joseph Lieberman. Their project aims to craft a new bipartisan consensus to define Americas global role, identifying the building blocks and requirements of American internationalism in a new century. J. Matthew McInnis joined AEI as a resident fellow in our Foreign and Defense Policy Studies program. Before joining AEI, he served as a senior expert for Iran, US Central Command, at the Defense Intelligence Agency (DIA), supporting strategic and tactical planning for General James Mattis. His previous roles at DIA include senior intelligence officer and chief on Iraqi political and security issues, staff director for the counter-proliferation office, and acting staff director for the Middle East and South Asia office. In December 2012, Ramesh Ponnuru joined AEI as a visiting fellow to write about conservative politics, free enterprise public policy, and constitutional issues. He is a senior editor for National Review; a frequent contributor to the Wall Street Journal, Washington Post, and New York Times; and the author of a weekly op-ed for Bloomberg.

Expanding AEIs Intellectual Firepower 19

Awilda Rodriguez joined AEI as the inaugural research fellow for the recently launched Center on Higher Education Reform. Focusing her research on college access, college match, and state policy, Rodriguez has worked as a research assistant at the University of Pennsylvania Consortium of Policy Research in Education and as a research associate for the National Center for Public Policy and Higher Education. Derek Scissors joined AEI as a resident scholar on our Asia Studies team. Before joining AEI, he was a senior research fellow at the Heritage Foundation, where he focused his studies on the economics of China and India and broader economic trends in Asia. His analysis and commentary have appeared in a number of national and international publications, and he has appeared as a guest commentator on Bloomberg, CNBC, CNN, Fox, Fox Business, MSNBC, and Chinas CCTV , among other major cable and broadcast outlets.

W. Bradford Wilcox joined AEI as a visiting scholar with a focus on the intersection of family structure and economic growth. Wilcox is an associate professor in the department of sociology at the University of Virginia, where he directs the National Marriage Project. He is a fellow at the Institute for Studies of Religion at Baylor University and has been a research fellow at Yale University, a research associate at Princeton University, and a Civitas Fellow at the Brookings Institution. Benjamin Zycher joined AEI as a resident scholar to lead our work on energy policy studies. He previously served as a senior fellow at the Pacific Research Institute, an associate in the Bureau of Intelligence and Research at the US Department of State, and a senior economist for the RAND Corporation and the Arroyo Center at the Jet Propulsion Laboratory. Zycher has taught economics at the University of California, Los Angeles, and served as a senior fellow at the Pacific Research Institute and the Manhattan Institute for Policy Research and the vice president for research at the Milken Institute. He was also a senior staff economist for the Presidents Council of Economic Advisers during President Ronald Reagans administration.

In Memory of

Judge Robert H. Bork

On December 19, 2012, AEI mourned the loss of Judge Robert H. Bork, a longtime legal scholar and member of the AEI community, who passed away at the age of 85. He leaves behind a distinguished legacy as a scholar, a public servant, and a passionate voice in policy. At AEI, Judge Bork was a visiting scholar and then a resident scholar for many years. He also received the 1984 Francis Boyer Award, the predecessor to the Irving Kristol Award. He wrote his seminal work in the field of antitrust law, The Antitrust Paradox, while at AEI.

20 AEI Annual Report

AEIs Community
AEI is a community of scholars and supporters who believe that expanding liberty, increasing individual opportunity, and strengthening free enterprise gives everyone the opportunity to create a better life. We are making the moral case for free enterprise, fiscal responsibility, and growth-oriented public policy and rely on private philanthropy from individuals, foundations, and corporations to make our work possible.

One of my greatest worries is whether the next generation will have the same opportunities as previous ones to build businesses and find earned success. I know that AEIs scholars are working every day to defend the free enterprise system and to encourage more growth-oriented policies. I am pleased to support this work.
Bob Castellini, AEI National Council Member

AEI offers those who share our values of freedom, opportunity, and enterprise a number of ways to get involved in the life of the Institute. We welcome our donors to participate in roundtable discussions, private meetings, and briefings with AEI scholars; attend public and private signature events; or receive our range of publications and timely e-newsletters. Supporting AEIs mission puts our investors at the center of an idea exchange that will transform public policy for the better. Their support enables new research, increased outreach to broader audiences, and more educational opportunities for our nations next generation of leaders. Over the past year, AEI has dramatically expanded its community, taking the free enterprise message to business leaders, policy influencers, state and local governments, and college students across the country. Leadership from the following major donor groups has helped make this possible.

AEIs Community 21

National Council public member(s) Enterprise Club member(s) Regional Council Trustee(s)

AEI provides business leaders an outlet and a community that better equips them to recognize, assess, and handle issues in their professions that are impacted by public policy. In addition, the vast AEI network of scholars, donors, and supporters can be a powerful resource. Defending free enterprise is now more important than ever, and while AEI educates us on what is at stake regarding the key issues we face, more importantly, the organization inspires us all to carry the torch for free markets and individual opportunity in our daily lives.
Adam Blum, AEI Enterprise Club Member

programmatic developments and new initiatives, and its members help AEI expand its reach and build its constituencies.
AEI Enterprise ClubA select group of young leaders in business, finance, law, and public policy who are interested in a robust exchange of ideas and an exploration of cutting-edge public policy research. Members of this growing network are selected based on depth of intellectual interest in policy, record of achievement, and potential for future impact. Members engage with AEI scholars and other friends of the Institute on a regular basis in Austin, Chicago, Dallas, Houston, New York City, San Francisco, and Washington, DC. AEI Regional CouncilsGroups of leaders located

AEI National CouncilAEIs inner circle of leading investors, composed of business and civic leaders from all over the country, who actively engage with AEIs scholarship and outreach activities. The council acts as a sounding board for AEIs leadership on

in most major metropolitan areas who provide advice and resources to help AEI recruit additional engaged leaders in local communities across the country. Members have regular opportunities for intellectual fellowship with an exclusive group of serious, civicminded leaders dedicated to furthering AEIs mission.

AEI is a public charity under section 501(c)(3) of the Internal Revenue Code, which means that donations to AEI are tax-deductible to the fullest extent of the law. Gifts to AEI range in size from less than $100 to more than $1 million, and donations can also be made in the form of securities, stocks, matching gifts, or bequests. Visit our website at www.aei.org/donate to make a contribution, or use the attached donation envelope to join our growing community. For additional information about supporting AEI, visit www.aei.org/support or email development@aei.org.

22 AEI Annual Report

A New Home for AEI

A New Home for AEI

After more than 40 years of leasing space in a nondescript Washington office building, AEI now has the opportunity to convert one of the most beautiful private buildings in the nations capital into its headquarters. In June 2013, the Institute purchased the property at 1785 Massachusetts Avenue NW . Built in 1917, this unique beaux-arts-style building is a National Historic Landmark. It originally housed luxury apartments and was home to Andrew Mellon when he served as treasury secretary in the 1920s. AEI will move into its new headquarters in late 2015. A complete renovation of this historic space will add a cutting-edge communications and media facility, a modern events space, and classrooms to educate the next generation of free enterprise leaders. AEIs new home will facilitate a dramatic improvement in the Institutes ability to disseminate its ideas to audiences including policymakers, business leaders, journalists, and students throughout the world.

AEI has launched a capital campaign to defray building acquisition and renovation costs and also to fund scholar chairs, research programs, and key communications and outreach efforts. None of this would be possible without the support of our community. For more information about campaign giving opportunities, please contact AEIs development team (development@aei.org).

A New Home for AEI 23

Board of Trustees
TULLY M. FRIEDMAN, Chairman
Chairman and CEO Friedman Fleischer & Lowe LLC

KEVIN B. ROLLINS
Senior Adviser TPG Capital

EUGENE F. FAMA
Robert R. McCormick Distinguished Service Professor of Finance Booth School of Business University of Chicago

MATTHEW K. ROSE
Chairman and CEO BNSF Railway Company

DANIEL A. D'ANIELLO, Vice Chairman

Chairman and Cofounder The Carlyle Group

MARTIN FELDSTEIN EDWARD B. RUST JR.

Chairman and CEO State Farm Insurance Companies George F. Baker Professor of Economics Harvard University

CLIFFORD S. ASNESS
Managing and Founding Principal AQR Capital Management

D. GIDEON SEARLE
Managing Partner The Serafin Group LLC

AARON L. FRIEDBERG
Professor of Politics and International Affairs Princeton University

GORDON M. BINDER
Managing Director Coastview Capital LLC

MEL SEMBLER
Founder and Chairman The Sembler Company

ROBERT P. GEORGE
McCormick Professor of Jurisprudence Director, James Madison Program in American Ideals and Institutions Princeton University

ARTHUR C. BROOKS
President and Beth and Ravenel Curry Chair in Free Enterprise, American Enterprise Institute

WILSON H. TAYLOR
Chairman Emeritus Cigna Corporation

ERIC A. HANUSHEK THE HONORABLE RICHARD B. CHENEY PETER COORS

Vice Chairman of the Board Molson Coors Brewing Company

WILLIAM H. WALTON
Managing Member Rockpoint Group LLC

Paul and Jean Hanna Senior Fellow Hoover Institution Stanford University

MARILYN WARE
Ware Family Office

R. GLENN HUBBARD
Dean and Russell L. Carson Professor of Finance and Economics Columbia Business School

HARLAN CROW
Chairman and CEO Crow Holdings

Emeritus Trustees
RICHARD B. MADDEN ROBERT H. MALOTT

RAVENEL B. CURRY III

Chief Investment Officer Eagle Capital Management LLC

WALTER RUSSELL MEAD

James Clarke Chace Professor of Foreign Affairs and the Humanities Bard College

JOHN V. FARACI
Chairman and CEO International Paper Company

PAUL F. OREFFICE JOHN L. PALMER HENRY WENDT

University Professor and Dean Emeritus Maxwell School of Citizenship and Public Affairs Syracuse University

CHRISTOPHER B. GALVIN
Chairman Harrison Street Capital LLC

Officers
ARTHUR C. BROOKS
President

RAYMOND V. GILMARTIN
Harvard Business School

MARK PAULY
Bendheim Professor, Professor of Health Care Management Wharton School at the University of Pennsylvania

HARVEY GOLUB
Retired Chairman and CEO, American Express Company; Chairman, Miller Buckfire

DAVID GERSON
Executive Vice President

JASON BERTSCH
Vice President, Development

SAM PELTZMAN
Ralph and Dorothy Keller Distinguished Service Professor of Economics Booth School of Business University of Chicago

ROBERT F. GREENHILL
Founder and Chairman Greenhill & Co. Inc.

DANIELLE PLETKA
Vice President, Foreign and Defense Policy Studies

FRANK J. HANNA
Hanna Capital, LLC

Council of Academic Advisers

GEORGE L. PRIEST, CHAIRMAN
Edward J. Phelps Professor of Law and Economics Yale Law School

JEREMY A. RABKIN
Professor of Law George Mason University School of Law

BRUCE KOVNER
Chairman Caxton Alternative Management LP

HARVEY S. ROSEN
John L. Weinberg Professor of Economics and Business Policy Princeton University

MARC S. LIPSCHULTZ
Partner Kohlberg Kravis Roberts

ALAN J. AUERBACH
Robert D. Burch Professor of Economics and Law University of California, Berkeley

JOHN A. LUKE JR.

Chairman and CEO MeadWestvaco Corporation

RICHARD J. ZECKHAUSER
Frank Plumpton Ramsey Professor of Political Economy Kennedy School of Government Harvard University

ELIOT A. COHEN
Paul H. Nitze School of Advanced International Studies Johns Hopkins University

GEORGE L. PRIEST
Yale Law School

Research Staff
DAVID ADESNIK
Visiting Fellow

NICHOLAS EBERSTADT
Henry Wendt Scholar in Political Economy

ADAM LERRICK
Visiting Scholar

SALLY SATEL, MD
Resident Scholar

PHILLIP LOHAUS JEFFREY EISENACH

Visiting Scholar Research Fellow

GARY J. SCHMITT
Resident Scholar; Director, Program on American Citizenship; Co-Director, Marilyn Ware Center for Security Studies

JOSEPH ANTOS
Wilson H. Taylor Scholar in Health Care and Retirement Policy

JOHN H. MAKIN JON ENTINE

Visiting Fellow Resident Scholar

APARNA MATHUR R. RICHARD GEDDES

Visiting Scholar Resident Scholar, Jacobs Associate

MARK SCHNEIDER
Visiting Scholar

LEON ARON
Resident Scholar; Director, Russian Studies

DAVID SCHOENBROD
Visiting Scholar

JAMES K. GLASSMAN
Visiting Fellow

MICHAEL MAZZA
Research Fellow

MICHAEL AUSLIN
Resident Scholar

DEREK SCISSORS
Resident Scholar

JONAH GOLDBERG
Fellow

J. MATTHEW MCINNIS
Resident Fellow

CLAUDE BARFIELD
Resident Scholar

SITA NATARAJ SLAVOV

Resident Scholar

ASPEN GORRY
Visiting Scholar

MICHAEL Q. MCSHANE
Research Fellow

MICHAEL BARONE
Resident Fellow

VINCENT SMITH
Visiting Scholar

SCOTT GOTTLIEB, MD
Resident Fellow

THOMAS P. MILLER
Resident Fellow

ROGER BATE
Visiting Scholar

CHRISTINA HOFF SOMMERS

Resident Scholar; Director, W. H. Brady Program

PHIL GRAMM
Visiting Scholar

CHARLES MURRAY
W. H. Brady Scholar

RICHARD BENNETT
Visiting Fellow

WILLIAM C. GREENWALT
Visiting Fellow

ROGER F. NORIEGA
Fellow

MICHAEL R. STRAIN
Research Fellow

WALTER BERNS
Resident Scholar, Emeritus

MICHAEL S. GREVE
Visiting Scholar

STEPHEN D. OLINER
Resident Scholar

PHILLIP SWAGEL
Visiting Scholar

ANDREW G. BIGGS
Resident Scholar

KEVIN A. HASSETT
John G. Searle Senior Fellow and Director of Economic Policy Studies

NORMAN J. ORNSTEIN
Resident Scholar

MARC A. THIESSEN
Fellow

EDWARD BLUM
Visiting Fellow

STAN A. VEUGER PIA ORRENIUS

Visiting Scholar Resident Scholar

DAN BLUMENTHAL
Resident Fellow

ROBERT B. HELMS
Resident Scholar

ALAN D. VIARD RICHARD PERLE

Fellow Resident Scholar

JOHN R. BOLTON
Senior Fellow

FREDERICK M. HESS
Resident Scholar; Director, Education Policy Studies

PETER J. WALLISON MARK J. PERRY

Scholar Arthur F. Burns Fellow in Financial Policy Studies

KARLYN BOWMAN
Senior Fellow

AYAAN HIRSI ALI

Visiting Fellow

JAMES PETHOKOUKIS
DeWitt Wallace Fellow

W. BRADFORD WILCOX
Visiting Scholar

ALEX BRILL
Research Fellow

R. GLENN HUBBARD
Visiting Scholar

TOMAS J. PHILIPSON
Visiting Scholar

PAUL WOLFOWITZ
Scholar

JAMES C. CAPRETTA
Visiting Scholar

FREDERICK W. KAGAN
Resident Scholar; Director, AEI Critical Threats Project; and Christopher DeMuth Chair

EDWARD PINTO
Resident Fellow

JOHN YOO
Visiting Scholar

TIMOTHY P. CARNEY
Visiting Fellow

ALEX J. POLLOCK
Resident Fellow

BENJAMIN ZYCHER
Resident Scholar

LYNNE V. CHENEY
Senior Fellow

LEON R. KASS, MD
Madden-Jewett Chair

RAMESH PONNURU
Visiting Fellow

EDWARD CONARD
Visiting Scholar

ANDREW P. KELLY
Resident Scholar; Director of the Center on Higher Education Reform

VINCENT R. REINHART
Visiting Scholar

SADANAND DHUME
Resident Fellow

PAUL H. KUPIEC THOMAS DONNELLY

Resident Fellow; Co-Director, Marilyn Ware Center for Security Studies Resident Scholar

AWILDA RODRIGUEZ
Research Fellow

JON KYL
Visiting Fellow

RICHARD ROGERSON
Visiting Scholar

MACKENZIE EAGLEN
Resident Fellow

DESMOND LACHMAN
Resident Fellow

MICHAEL RUBIN
Resident Scholar

AEIs National Council

AEI is deeply grateful for the leadership of our National Council. Its members are leaders in business and philanthropy who have publicly committed to the mission and success of the Institute. They are ambassadors for AEI, providing insight and strategic advice as we enhance our scholarly programs and build out our community of investors. Please contact Toby Stock, managing director of development (202.862.5834; toby.stock@aei.org), if you have any questions about the AEI National Council.
BILL ACHTMEYER
Chairman and Managing Partner The Parthenon Group

LEWIS M. EISENBERG
Kohlberg Kravis Roberts

JOHN W. HOLMAN III

Managing Director Eagle Capital Management LLC

MARTIN C. ELTRICH
Partner AEA Investors

JAY ADAIR ERWIN AULIS THILO BEST

Principal Bayshore Retirement Partners

AL AND KATHY HUBBARD STANLEY S. HUBBARD

Chairman and Chief Executive Officer Hubbard Broadcasting Inc.

CHRISITAN A. FELIPE WILLIAM A. FICKLING JR.

Mulberry Street Investment Company LP

TOD AND SUSAN HULLIN JOHN K. HURLEY

Managing Partner Cavalry Asset Management

BAYARD BOYLE JR.

Chairman Boyle Investment Group

SEAN M. FIELER
General Partner Equinox Partners LP

CURTIS F. BRADBURY JR.

Chief Operating Officer Stephens

SPENCER C. FLEISCHER
President Friedman Fleischer & Lowe LLC

PAUL J. ISAAC
Arbiter Partners

DOUGLAS AND ANGELA BRALY

The Braly Group LLC

RICHARD M. JAFFEE SHELLY AND MICHAEL KASSEN RICHARD A. KAYNE

Chief Executive Officer Kayne Anderson Capital Advisors Inc.

MICHAEL J. FOURTICQ SR.

Hancock Park Associates

MARK CARLIN
Executive Vice President Lockton Insurance Brokers Inc.

SAM AND MARILYN FOX

Founder Harbour Group

JAMES D. CARREKER
JDC Holdings

JOSH FRIEDMAN MARTIN GARCIA MARK D. GIBSON

Executive Managing Director HFF LP

MICHAEL L. KEISER
Cofounder Recycled Paper Greetings Inc

RUSSELL L. CARSON
General Partner Welsh, Carson, Anderson & Stowe

RANDY P. KENDRICK JOHN KINGSTON SETH KLARMAN

President The Baupost Group

ROBERT H. CASTELLINI
Chairman Castellini Company

RONALD J. GIDWITZ
Principal GCG Partners

JOHN K. CASTLE
Chairman and Chief Executive Officer Castle Harlan Inc.

C. BOYDEN GRAY
Founding Partner Boyden Gray & Associates

DAVID H. KOCH SUE KOFFEL AMY KORENVAES

President Harlan and Amy Korenvaes Family Foundation

GARY CHARTRAND
Executive Chairman Acosta Inc.

MARTIN J. GROSS
President and Founder Sandalwood Associates Inc.

DR. ARMEANE M. CHOKSI PETER B. CLARK JOHN CONNORS

Partner Ignition Partners

HEATHER AND PAUL G. HAAGA KIP HAGOPIAN JON D. HAMMES

Hammes Company

HARLAN B. KORENVAES
Korenvaes Capital Management

JOHN AND KARIN KUKRAL KENNETH LANGONE

Chairman, President, and CEO Invemed Associates

JAY AND ANN DAVIS KIMBERLY O. DENNIS

President Searle Freedom Trust

KENNETH H. AND YVONNE S. HANNAN

Colonial Navigation Co. Inc.

HOWARD H. LEACH ED AND HELEN HINTZ

Hintz Capital Management President Leach Capital LLC

JAMES H. DONOVAN
Managing Director Goldman Sachs

ROBERT A. ECKERT
Mattel Inc.

ROBERT B. AND JANET A. HOFFMAN

Double V Trust Funds

ROY W. LENNOX
Founder Arrowhawk Capital Partners

RICHARD H. LENNY
Operating Partner Freidman Fleischer & Lowe

DAN AND KELLIE PETERS

Lovett & Ruth Peters Foundation

MICHAEL H. SIMMONDS
Chairman Simmonds Holdings

STEVEN PRICE DANIEL S. LOEB

Chief Executive Officer Third Point LLC Chairman and Chief Executive Officer Townsquare Media Inc.

SCOTT SIPPRELLE
Westland Ventures

D. SCOTT LUTTRELL
Chairman and Chief Executive Officer LCM Group Inc.

ALLEN AND KELLI QUESTROM JAMES C. RAHN

President Kern Family Foundation

HARRY SLOAN
Chairman and Chief Executive Officer Global Eagle Acquisition Company

TAD SMITH LINDA AND BILL STAVROPOULOS ROBERT K. STEEL THOMAS F. STEPHENSON
Partner Sequoia Capital

GEOFFREY AND MELISSA BRADSHAW-MACK BARRY L. MACLEAN

President and Chief Executive Officer MacLean-Fogg Company

ANNE AND ROB RAYMOND GEOFFREY S. REHNERT

Co-Chief Executive Officer Audax Group

MICHAEL E. MARTINO
Cofounder Mason Capital Management

J. JOE RICKETTS RICHARD J. RIORDAN DAVID N. ROBERTS

Senior Managing Director Angelo, Gordon & Co.

DONALD AND SUSAN STURM

Sturm Financial Group

IVOR MASSEY JR.

Triad LC

GENE SYKES RYAN TAYLOR CARL THOMA

Managing Partner Thoma Bravo LLC

M. HOLT MASSEY ROBERT MCCORMACK HARRY T. MCMAHON

Executive Vice Chairman Bank of America Merrill Lynch

RICHARD K. ROEDER
Partner Vance Street Capital LLC

ROBERT ROSENKRANZ
Chairman Delphi Financial Group

JEFF P. VAN DYKE

Ray and Heather Washburne Charter Holdings

JOANIE AND DON MCNAMARA KENNETH B. MEHLMAN

Member and Global Head of Public Affairs Kohlberg Kravis Roberts

PETER S. RUMMELL
Chief Executive Officer Rummell Company LLC

RAY AND HEATHER WASHBURNE

Charter Holdings

NATHAN E. SAINT-AMAND, MD MUNEER SATTER

Founder Satter Investment Management LLC

GARY L. WILSON
General Partner Manhattan Pacific Partners

DANIEL N. MEZZALINGUA
Acquisitions Analyst FTO

JOHN AND CARRIE MORGRIDGE

Morgridge Foundation

PAUL AND JUNE SCHORR DONALD E. SCOTT

Partner Bartlit Beck Herman Palenchar & Scott LLP

ROBERT S. MURLEY
Vice Chairman Credit Suisse

ALEX NAVAB
Kohlberg Kravis Roberts

JAMES M. SENEFF
Executive Chairman CNL Financial Group Inc.

PATRICK K. NEAL
Neal Communities

ROBERT H. NIEHAUS
GCP Capital Partners LLC

WILLIAM N. SHIEBLER
Treetops Companies

RICHARD R. ONG
Managing Director Eagle Capital Management LLC

JEFFREY L. SILVERMAN
Chairman and Cofounder Agman Partners

2013

FINANCES
AEIs audited financial performance for the 2013 fiscal year ending on June 30, 2013, is provided in accordance with GAAP accounting conventions. The Institute raised $23.4 million from individuals, $9.9 million from foundations, and $8.7 million from corporations. The sum of these fundraising activities, along with conference fees, brought the Institutes annual revenues to $44.4 million. Expenses for the year totaled $33.2 million. Investment gains totaled $16.1 million and are excluded from the operating revenue below. We are committed to transparent accounting of the resources we receive. In addition to required tax filings, a copy of the Institutes audited financial statement is available to anyone who requests it. AEI is deeply grateful for the community of supporters who invest in the Institutes mission to expand liberty, increase individual opportunity, and strengthen free enterprise. AEIs work on our nations most critical policy challenges is possible only with this support.

2013 AEI Revenue

($44.4 million)
Foundations 22% Management 5% Campus Outreach 5% Individuals 53% Conferences 8% Fundraising 9% Communications 14%

2013 AEI Expenses

($33.2 million)
Economic Policy Studies 23%

Corporations 20% Conferences and Other Revenue 5%

Social and Political Studies 17%

Foreign and Defense Policy Studies 19%

Fiscal year activity is for the period July 1, 2012, through June 30, 2013.

28 AEI Annual Report

American Enterprise Institute for Public Policy Research 1150 Seventeenth Street, NW, Washington, DC 20036 202.862.5800 www.aei.org

Photography by Peter Holden, Patrick G. Ryan, and Jay Westcott.