Democracy Collaborative

The Democracy Collaborative is a left-of-center organization that advocates for the transition of the United States economic system from a free-market economy to government-controlled socialism. It supports government ownership and control of industries like health care, utilities, and transportation, and the group proposes the creation of a “welfare state” that guarantees a minimum income level for all Americans. Democracy Collaborative is opposed to zero carbon nuclear energy. 1 2

At-A-Glance

Issue Areas: Economic Policy
Formation:

2004

President:

Ted Howard

Location: Cleveland, OH View on map
Tax ID: 20-0387511
Most Recent Filing: 2024
Budget (2024): Assets: $1,079,205 Revenue: $957,542 Expenses: $2,172,200

Contents

    The Democracy Collaborative calls for a new system based upon sexual, gender, and racial justice and the elimination of “mass incarceration.” 1

    Democracy Collaborative was credited with having worked with self-described socialist U.S. Senator Bernie Sanders’ (I-VT) economic plan for his 2020 Presidential campaign. 3

    Background

    The Democracy Collaborative was founded in 2004 and advocates left-wing positions focusing on a dramatic expansion of government control of business and private life. These practices include the seizure of private business and formation of government-run institutions1 controlled and owned by a diverse demographic workforce. 4 One of its many goals is to “repurpose” the conventional energy, aerospace, and defense industries towards “alternative production” in line with left-wing social policy goals. 1 It further cites traditional economics as the cause of African Americans remaining poor and disconnected from success in recovering cities like Pittsburgh. 4

    The Democracy Collaborative supports replacing private ownership of business with ostensibly “worker-owned” cooperatives that would allow employees or labor unions to control the company and to elect the members of the board. 4

    Opposition to Nuclear Energy

    In May of 2021, Democracy Collaborative was one of 715 groups and businesses listed as a co-signer on a letter to the leadership of the U.S. House and Senate that referred to nuclear energy as a “dirty” form of energy production and a “significant” source of pollution. The letter asked federal lawmakers to reduce carbon emissions by creating a “renewable electricity standard” that promoted production of weather dependent power sources such as wind turbines and solar panels, but did not promote low carbon natural gas and zero carbon nuclear energy. 2

    Nuclear power plants produce no carbon dioxide or other greenhouse gas emissions, and as of 2021 accounted for 19 percent of American electricity production—the largest source of zero carbon electricity in the United States. 5 An October 2018 proposal from The Nature Conservancy noted that zero-carbon nuclear plants produced 7.8 percent of total world energy output and recommended reducing carbon emissions by increasing nuclear capacity to 33 percent of total world energy output. 6

    Ted Howard

    Ted Howard is a longtime socialist advocate who is the president and co-founder of Democracy Collaborative. 7

    Socialist Views

    Ted Howard is a left-leaning environmentalist and socialism proponent who has complained that people are more able to conceptualize the end of the world than the end of capitalism. 8 Howard has criticized progressive-liberal Democrats like President Bill Clinton and President Barack Obama as equally complicit with conservative Republicans President Ronald Reagan and President George W. Bush in supporting the capitalist system. He sees traditional progressive-liberal policies as failed and insufficient in achieving the necessary aims of redistribution of wealth and calls for “an all-out attack on racism, racist leadership, and the so-called alt-right,” which also include current Republican leadership. 9

    Associations with Jeremy Rifkin

    Ted Howard is connected in several ventures with Jeremy Rifkin. Howard and Rifkin co-founded the Foundation on Economic Trends which primarily focuses on combatting climate change and protecting the environment against modern technologies. 10 They also co-authored three books focusing on environmentalism concerns. 10

    Rifkin is a highly influential economic advisor to global government leaders. Critics have labeled Rifkin an apocalypse abuser for his environmentalist doomsday claims. Rifkin authored a book called the New Green Deal calling for people to stop using fossil fuels in order to save the planet. 11 He has been described as a far-left environmental activist opposing capitalism and technology. 12

    Other People

    Gar Alperovitz is a co-founder of Democracy Collaborative. 13 Alperovitz is an octogenarian that has sought socialist economic transformation for decades. 13 He authored the book America Beyond Capitalism and is a professor of political economy at the University of Maryland. 14

    John Duda is the director of communications and has written in favor of changing ownership of businesses from shareholders to employees. He espouses the idea that a tiny minority of rich people are the ones who benefit the most from the current capitalist system as they own stocks. Duda recommends a change where employees own the corporations. 15

    Peter Gowan is a fellow of Democracy Collaborative who advocates for the expansion of government by nationalizing a wide array of industries including rail transportation, utilities, health care, banking, child care, and education. Gowan claims that there should be a guaranteed minimum income that also provides for families, the elderly, and the disabled. 1

    Michael Hudson16 is on the board for Democracy Collaborative and a professor of economics at the University of Missouri–Kansas City and at the School of Marxist Studies, Peking University. 17

    Hudson has proposed that the government create nationalized banks that would serve customers from post offices. He believes that the government should supplant large banks like Citibank and Chase for local banking needs. Hudson attests that costs for services like water, sewer, electricity, education and cable television should be eliminated from the marketplace and provided by the government. He has further argued for replacement of private property with government-provided housing. 16

    Affiliates

    The Democracy Collaborative’s Healthcare Anchor Network affiliate seeks to reorient certain businesses spending towards the communities of which they reside. 18 The Healthcare Anchor Network focuses on shifting the healthcare industry’s procurements of over $50 billion per year to local companies. It believes that a variety of services like laundry, catering, and construction can be purchased locally, which would foster community stability. Kaiser Permanente is a member of the Healthcare Anchor Network. 19

    Created to address what it describes as the current systemic challenges from the United States capitalist tradition, the Next System Project cites climate change, racial injustice, and economic inequalities as critical reasons to revamp the economic system for one in which a radically different govenrment-run solution will dominate. Leadership of the Next System Project includes socialists like Gar Alperovitz, John Duda and Michael Hudson. 20

    Financial Statistics

    Total Assets

    Total Revenue

    Total Expenses

    YearTotal AssetsTotal RevenueTotal ExpensesFiling
    2024 $1,079,205 $957,542 $2,172,200 View
    2023 $2,723,363 $3,874,746 $2,465,500 View
    2022 $1,833,529 $3,696,524 $3,853,561 View
    2021 $2,262,118 $2,304,413 $4,122,672 View
    2020 $3,853,821 $2,787,879 $5,276,262 View

    Prior year filings: 2016, 2015, 2014, 2013, 2012, 2011

    Revenue Detail

    Expenses Detail

    Employee Compensation

    • Number of Employees: 7

    Highest Earning Employees

    EmployeeTitleTotal Compensation
    Stephanie MchenryCEO$166,034
    Joe GuinanPRESIDENT$147,559
    Marvin BrookshireDIRECTOR OF FINANCE$99,644

    Grant Activity

    All-time grants received statistics from Candid dataset:

    • Total Grant Value: $37,532,849
    • Number of Grants: 154
    • Number of Funders: 56

    Selection of highest value grants received from the last seven years:

    AmountYearFunderSubject
    $1,335,0002023 Novo FoundationGENERAL SUPPORT
    $1,335,0002021 Novo FoundationGENERAL SUPPORT
    $1,000,0002024 Novo FoundationGENERAL SUPPORT
    $750,0002021 The Kendeda FundGeneral & Unrestricted
    $750,0002020 The Kendeda FundGeneral & Unrestricted
    $500,0002024 The Allstate FoundationSUPPORTING COMMUNITY WEALTH BUILDING
    $500,0002023 The Allstate FoundationBUILDING WEALTH AND ADVANCING RACIAL EQUITY IN AMERICA'S COMMUNITIES
    $500,0002023 W.K. Kellogg Foundationimplement an economic development model that transforms local economies based on communities having direct ownership and control of their assets
    $400,0002021 Open Society Foundationto provide general support
    $355,6002020 Fidelity Investments Charitable Gift FundFor grant recipient's exempt purposes
    $300,1002022 Fidelity Investments Charitable Gift FundFor grant recipient's exempt purposes
    $300,0002020 The Annie E. Casey FoundationSupport the sustainability of the Anchor Learning Network
    $175,0002020 The Schmidt Family FoundationEncouraging a just transition away from fossil fuels
    $150,0002021 Fidelity Investments Charitable Gift FundFor grant recipient's exempt purposes
    $125,0002024 National Philanthropic TrustRELIGION
    $100,0002020 The Nathan Cummings Foundation IncRenewed support to The Democracy Collaborative (TDC) to implement a multi-city strategy to convene, educate and mobilize resources towards solutions and strategies that democratizes local economies at scale and test new assumptions based on TDC?S research about how directly impacted people, specifically BIPOC can lead our society towards a new economic paradigm and practice, that centers racial equity.
    $65,0002020 Dignity HealthCommunity health
    $61,0002022 Cerity Partners FoundationNEXT SYSTEM STUDIES PROGRAM
    $50,0002024 ImpactAssetsGENERAL SUPPORT
    $50,0002023 Amalgamated Charitable Foundation IncGeneral operating support
    $50,0002023 John Templeton FoundationFOR GENERAL SUPPORT
    $37,5002020 Promedica Health System IncCHARITABLE DONATION
    $33,3002024 TIDES FOUNDATIONEQUITY, HUMAN RIGHTS, AND ECONOMIC EMPOWERMENT
    $30,0002024 Amalgamated Charitable Foundation IncGeneral operating support
    $30,0002020 Adventist Health System Sunbelt Healthcare CorporationGeneral Support

    All-time grants given statistics from Candid dataset:

    • Total Grant Value: $228,727
    • Number of Grants: 2
    • Number of Recipients: 2

    Selection of highest value grants given from the last seven years:

    AmountYearFunderSubject
    $200,0002022 The Roy Rosenzweig Center for History and New MediaTO SUPPORT THEIR NEXT SYSTEM STUDIES PROGRAM
    $28,7272021 Multiple EUROPE (INCLUDING ICELAND & GREENLAND) RecipientsPROMOTE EMPLOYEE OWNERSHIP

    Associated Influence Networks

    View Opposition to Nuclear Energy

    Opposition to Nuclear Energy

    There are more than 700 nonprofits and other advocacy groups in the United States that oppose the use of carbon free nuclear energy.    …

    References

    1. Glover, Juleanna, Jeff Greenfield, and Alexandra Glorioso. “What Would a Socialist America Look Like?” POLITICO Magazine, September 3, 2018. https://www.politico.com/magazine/story/2018/09/03/what-would-a-socialist-america-look-like-219626.
    2. Letter from Center for Biological Diversity et. al. to U.S. Senate Majority Leader Chuck Schumer, U.S. House Speaker Nancy Pelosi, Sen. Joe Manchin, and Rep. Frank Pallone. “RE: CONGRESS SHOULD ENACT A FEDERAL RENEWABLE ELECTRICITY STANDARD AND REJECT GAS AND FALSE SOLUTIONS.” May 12, 2021. Accessed July 25, 2023. https://www.biologicaldiversity.org/programs/energy-justice/pdfs/2021-5-12_600-Group-Letter-for-RES.pdf?_gl=1*1c9h3t8*_gcl_au*MTc3NjM3MTM1Mi4xNjg5OTU1MzAz
    3. Chelsea Janes, Jeff Stein. “Bernie Sanders’s Plan Would Force Country’s Largest Corporations to Share Profits with Workers.” The Washington Post. WP Company, October 14, 2019. https://www.washingtonpost.com/politics/2019/10/13/5565adae-edd8-11e9-8693-f487e46784aa_story.html.
    4. Kelly, Marjorie, and Sarah McKinley. “7 Paths to Development That Bring Neighborhoods Wealth, Not Gentrification.” Yes! Magazine, November 11, 2015. https://www.yesmagazine.org/economy/2015/11/11/7-paths-to-development-that-bring-neighborhoods-wealth-not-gentrification/.
    5. “Nuclear explained.” U.S. Energy Information Administration. Accessed July 25, 2023. https://www.eia.gov/energyexplained/nuclear/us-nuclear-industry.php
    6. “The Science of Sustainability.” The Nature Conservancy. October 13, 2018. Accessed July 25, 2023. https://www.nature.org/en-us/what-we-do/our-insights/perspectives/the-science-of-sustainability/
    7. “Ted Howard.” The Democracy Collaborative, July 23, 2019. https://democracycollaborative.org/ted-howard
    8. “Just Work It.” Just Work It(blog), February 14, 2020. https://justworkit.ca/site/uploads/2020/02/2062_Episode_2_Transcript-final.pdf.
    9. Alperovitz, Gar, and Ted Howard. “After the Storms: Defeating Trumpism, Rebuilding America.” TheNextSystem.org, September 20, 2017. https://thenextsystem.org/learn/stories/after-storms-defeating-trumpism-rebuilding-america.
    10. “Jeremy Rifkin Explained.” Jeremy Rifkin Explained. Accessed February 25, 2020. http://everything.explained.today/Jeremy_Rifkin/.
    11. “Foundation on Economic Trends: Funding Sources, Staff Profiles, and Political Agenda: Activist FactsActivist Facts.” Activist Facts. Accessed February 25, 2020. https://www.activistfacts.com/organizations/121-foundation-on-economic-trends/.
    12. “Center for Media and Democracy (CMD).” Center for Media and Democracy (CMD). Accessed February 25, 2020. https://www.influencewatch.org/non-profit/center-for-media-and-democracy/.
    13. Beckett, Andy. “The New Left Economics: How a Network of Thinkers Is Transforming Capitalism.” The Guardian. Guardian News and Media, June 25, 2019. https://www.theguardian.com/news/2019/jun/25/the-new-left-economics-how-a-network-of-thinkers-is-transforming-capitalism.
    14. GAST, SCOTT. “The Cooperative Economy: A Conversation with Gar Alperovitz.” Gar Alperovitz, June 5, 2014. https://www.garalperovitz.com/2014/06/cooperative-economy-conversation-gar-alperovitz/.
    15. Cooper, Ryan. “Bernie Sanders Finally Embraces Socialism.” The Week – All you need to know about everything that matters. The Week, October 15, 2019. https://theweek.com/articles/871555/bernie-sanders-finally-embraces-socialism.
    16. Smith, Yves, Jim Haygood, and John Rose. “MIchael Hudson: The Democracy Collaborative.” naked capitalism, March 30, 2017. https://www.nakedcapitalism.com/2017/03/michael-hudson-democracy-collaborative.html.
    17. “Michael Hudson.” The Democracy Collaborative. Accessed February 25, 2020. https://democracycollaborative.org/content/michael-hudson.
    18. Martin, Nancy. “Advancing the Anchor Mission of Healthcare.” The Democracy Collaborative, March 7, 2017. https://democracycollaborative.org/content/advancing-anchor-mission-healthcare-report.
    19. Goodman, Peter S. “When a Steady Paycheck Is Good Medicine.” The New York Times. The New York Times, October 10, 2019. https://www.nytimes.com/2019/10/10/business/healthcare-anchor-network.html
    20. “Next System Project.” Next System Project. Accessed February 24, 2020. https://thenextsystem.org/staff.