Koch control of nonprofits through donations; Cato Institute; John Birch Society

An early example of Charles Koch flexing his muscles took place at the Cato Institute in 1981, when he fired one of the think tank's five original stockholders. Ironically, although Charles had criticized Robert Welch for turning the John Birch Society into a cult of personality by flaunting his own ownership of the organization's stock, Charles had set Cato up in the same way, as a nonprofit with stockholders, who picked the board of directors. The arrangement was rare in the nonprofit world. But as Charles had observed of the John Birch Society, it guaranteed the directors an unusual measure of continuing control. (181)