Third Way Institute

In 2020, Third Way Institute reported $12,008,109 in program expenses, including the distribution of $11,600,000 of grants to Third Way. ⁵ In 2019, Third Way Institute distributed $11,329,192 of grants to Third Way. ⁶ Third Way Institute and Third Way share employees. ⁷ According to tax flings, all Third Way Institute employees’ wages are paid by Third Way, based on cost sharing. ⁸

Third Way Institute has received at least $4,519,000 in grants from the left-of-center William and Flora Hewlett Foundation since 2016. ⁹ The Institute has also received a $1,949,150 grant from the left-of-center Gates Foundation; ¹⁰ a $1,505,400 grant from the commercial donor-advised fund (DAF) provider Fidelity Investments Charitable Gift Fund; ¹¹ and a $1,060,840 from Arnold Ventures. ¹²

The Third Way Institute has previously received money from the New Venture Fund, a nonprofit group managed by philanthropic firm Arabella Advisors. ^{13 14}

History and Leadership

The Third Way Institute is the charitable arm of Third Way, a 501(c)(4) think tank that advocates for “modern center-left ideas.” ¹ Third Way Institute was founded in 2005 and helps fund the tax-exempt work of Third Way. ^{2 3 4} Third Way Institute receives all of Third Way’s online contributions ² and then makes large grants back to Third Way to fund its operations. ^{5 6}

Jonathan Cowan has been the president of Third Way Institute since its founding in 2005. ^{3 4 15} He was the president of the gun control advocacy organization Americans for Gun Safety ¹⁶ from 2000 to 2004. ^{17 18} Cowan had previously worked as chief of staff of the U.S. Department of Housing and Urban Development under then-Secretary Andrew Cuomo (D); ¹⁹ as a senior advisor to former U.S. Rep. Mel Levine (D-CA); ²⁰ and as co-founder of Lead or Leave. ^{15 21}

Steve J. Dieterle is the treasurer and CFO of Third Way Institute. Dieterle has been a certified public accountant for over 20 years and once had a team producing quarterly statements for the U.S. Securities and Exchange Commission that included a daily newsletter covering the stock market. ²²

Emily Sternfield is the senior vice president of development and external affairs and handles most of the external fundraising for Third Way. She joined the group in 2013. She previously worked for the National Association of Manufacturers, began her career at Hitachi Consulting, and handled strategic communications at Greenough Communications. ²³

Activities and Funding

Third Way Institute helps fund the exempt work of the left-of-center Third Way. ²⁴ The Institute primarily advocates for left-of-center policies including a policy of “net-zero carbon emissions” by 2050, with an emphasis on weather-dependent energy, nuclear power, and so-called carbon capture technologies. The Institute aims to influence national policy and the political debate in support of Third Way, which works to change how Democrats view the shape of their next electoral majority, to advocate for advanced nuclear technology, and to preserve the increased federal role in education through No Child Left Behind and its successor legislation. ²⁵ The Institute’s economic policy priorities focus on the COVID-19 pandemic and the future of the U.S. workforce. ²⁶

Third Way Institute supports the development of Third Way’s educational materials and events, has funded reports on an immigration “common ground” and gun violence, ²⁶ and has co-funded papers with the right-of-center American Enterprise Institute. ²⁷

The Third Way Institute and Third Way share employees. ⁷ All Third Way Institute employees’ wages are paid by Third Way based on cost sharing, according to Third Way Institute’s tax filings. ⁸

Grantmaking

All online contributions to the left-of-center think tank Third Way go to the Third Way Institute. ²⁸ In turn, Third Way Institute makes grant donations to Third Way to fund its operations. In 2023, the Third Way Institute reported $20,439,102 in total expenses, including a grant of $19,809,000 to Third Way. ²⁹

Funding

Third Way Institute receives its funding from individual contributions through Democratic Party-aligned passthrough ActBlue, ³⁰ Third Way’s donation website, and foundation grants. ²⁸

In 2024, Third Way Institute received a $500,000 grant from the William and Flora Hewlett Foundation for Third Way’s Moderate Power Project, an initiative to form a “talent bank” of center-left staffers for a future Democratic administration ³¹ That same year, the Third Way Institute received $1,149,082 from the Gates Foundation. ³²

In 2023, the Third Way Institute received a $250,000 grant from the Laura and John Arnold Foundation. ³³ Third Way Institute also received a $35,000 grant from the Ayco Charitable Foundation. ³⁴

The group received a $100,000 grant from the left-of-center environmentalist group Clean Air Task Force to support Third Way’s advocacy in favor of the “Inflation Reduction Act” spending bill which promoted taxpayer subsidies of environmentalist approved energy sources. ³⁵ The group received two grants of $273,385 and $2,079,179 from the Breakthrough Energy Foundation, a pro-nuclear energy environmentalist group affiliated with Breakthrough Energy, an environmentalist advocacy group founded by Bill Gates, for policy development. ³⁶ The group received $302,500 from the Climateworks Foundation, a donor pass through entity which donates to environmentalist groups. ³⁷

The group received $100,000 from the Jewish Community Federation Of S F Marin Peninsula and Sonoma Counties. ³⁸ The group received $25,000 from the Community Foundation Boulder County. ³⁹ The group received $25,000 from the Fwd.US Education Fund to promote left-of-center immigration policies. ⁴⁰ The group received a $140,000 grant from the Arabella Advisors-managed fund the New Venture Fund. ¹³ The group received a $10,000 grant from Combined Jewish Philanthropies Of Greater Boston Inc. ⁴¹ The group received a $100,000 grant from the New York City donor-advised fund Jewish Communal Fund. ⁴² The group received a $50,000 grant from the Goldman Sachs Charitable Gift Fund. ⁴³

In 2022, the Third Way Institute received $1,800,000 worth of grants from the William and Flora Hewlett Foundation for Third Way’s energy and climate program, for leadership and staff development, for supply chain manufacturing research, and for Third Way’s cyber enforcement initiative. ³¹ That same year, the Third Way Institute received $1,972,357 from the Gates Foundation. ³²

In 2021, Third Way Institute received a $1,000,000 grant for Third Way’s energy and climate program and separate $386,000 ⁴⁴ and $200,000 grants from the William and Flora Hewlett Foundation. ^{45 46}

In 2020, Third Way Institute received $13,078,977 of grants and reported expenses of $12,133,756. ⁴⁷ That same year, Third Way Institute received grants of $750,000 from the Combined Jewish Philanthropies of Greater Boston; ⁴⁸ $500,000, ⁴⁹ $500,000, ⁵⁰ and $200,000 ⁵¹ from the William and Flora Hewlett Foundation;  ⁵² $250,000 from the Jewish Communal Fund; ⁵³ $100,000 from the Meg and Bennett Goodman Family Foundation; ⁵⁴ $100,000 from the Goldman Sachs Charitable Gift Fund; ⁵⁵ and $35,000 from the Ayco Charitable Foundation. ⁵⁶

In 2019, Third Way Institute received $11,550,561 of grants and contributions and reported expenses of $11,599,533. ⁴⁷ These grants included $1,949,150 from the Gates Foundation; ¹⁰ $1,505,400 from the Fidelity Investments Charitable Gift Fund; ¹¹ $1,060,840 from Arnold Ventures; ¹² $275,000 from the National Philanthropic Trust; ⁵⁷ $127,000 from the William and Flora Hewlett Foundation; ^{58 59} $74,765 from The Energy Foundation; ⁶⁰ and $15,000 from Rockefeller Philanthropy Advisors. ⁶¹

In 2018, Third Way Institute received grants of $400,000 from the John D. and Catherine T. MacArthur Foundation; ⁶² $270,000 from the David and Lucile Packard Foundation; ⁶³ $150,000 from the Dyson Foundation; ⁶⁴ $100,000 from the Ptsrk Foundation in 2018; ⁶⁵ and $75,000 from the Energy Foundation. ⁶⁶

Third Way Institute has also received grants of $600,000 from the William and Flora Hewlett Foundation; ⁶⁷ $270,000 from the David and Lucile Packard Foundation; ⁶⁸ $250,000 from the Lumina Foundation for Education; ⁶⁹ $200,000 from the Jewish Community Federation of San Francisco; ⁷⁰ $100,000 from the Ptsrk Foundation; ^{71 72 73} and $85,000 from the Jewish Community Foundation of San Diego. ⁷⁴