What is a think tank? How are think tanks funded in the UK

A think tank is an organisation whose main job is to influence public policy by producing original research and expert analysis. So how are think tanks funded? Many UK think tanks are charities or not-for-profit companies, funded through a mix of endowments, charitable foundation grants, corporate and individual donations, and income from events and partnerships. How openly they disclose those funders varies widely, and that is why transparency ratings have become part of the debate.

This guide explains what think tanks do, where their money comes from, how transparency is rated as of October 2026, and how to read a think tank report with a critical eye.

What is a think tank?

There is no legal definition. Who Funds You?, the UK campaign that rates think tank funding transparency, uses a practical test: an organisation counts as a think tank if its work is mainly aimed at changing public policy through original research and analysis. That separates think tanks from campaign groups and lobbying firms, which tend not to rely on research, and from universities, whose research is not always aimed at policy change. The campaign also points out that some bodies doing this work avoid the label, and that think tanks can be charities, private companies or voluntary associations.

In practice, UK think tanks publish reports and briefing notes, run events with politicians and officials, and work with the media. Some aim to shape party platforms directly: the CPS, for example, says dozens of its proposals were adopted by Conservative governments. Others, such as the Resolution Foundation, say they engage with politicians across the spectrum.

The UK landscape, from left to right

British think tanks cover the whole political spectrum and many specialisms. Described in their own terms:

• Institute for Fiscal Studies (IFS): an independent economics research institute best known for analysing tax, spending and the public finances. It says it holds no corporate views; the opinions in its reports belong to the named authors.
• Resolution Foundation: an independent think tank focused on living standards, particularly for low- and middle-income households.
• Institute for Government (IfG): a non-partisan charity that studies how to make government work more effectively.
• IPPR: an independent charity that describes its work as progressive, aiming for a fairer and greener society.
• Centre for Policy Studies (CPS): describes itself as a centre-right think tank, founded in 1974 by Sir Keith Joseph and Margaret Thatcher.
• Adam Smith Institute: promotes free-market ideas and says it is independent and non-partisan.
• Specialists: for example the Nuffield Trust on health care, and Re:State (formerly Reform) on public services.

How are think tanks funded?

Think tank funding usually comes from a handful of sources. The balance between them shapes how independent an organisation can be, and how exposed it is to the interests of a single backer.

Endowments and founding trusts

Some organisations have a large backer or endowment behind them. The Nuffield Trust says it is funded largely by its own endowment. The Resolution Foundation says it is primarily funded by the Resolution Trust, and its board of trustees is led by its founder, Clive Cowdery. This model gives stability, although it ties the organisation closely to one source.

Charitable foundations and research councils

Grants for specific projects are a major source of income. The IFS Green Budget published in October 2026 shows how this works. It was funded by the Nuffield Foundation, produced in association with Barclays, which also wrote chapters, and supported by the Economic and Social Research Council through an IFS research centre. The Resolution Foundation’s pre-Budget briefing that month was also funded by the Nuffield Foundation.

Corporate and individual donors

Many think tanks raise money from businesses and wealthy individuals, often through supporter or partnership schemes. The CPS, for example, says it is supported exclusively by funding from its supporters. The IfG offers partnership opportunities to organisations. Who Funds You? argues that, at worst, opaque funding can let a think tank act as a neutral-looking front for vested interests, which is why it presses for disclosure.

Contracts, events and memberships

Other income can come from events, training and commissioned work. The IfG, for instance, runs an academy programme for ministers, shadow ministers and senior civil servants alongside its research.

Can charitable think tanks be political?

Many UK think tanks are registered charities, and that brings rules. The Charity Commission’s guidance on campaigning (known as CC9) says charities may campaign to achieve their purposes, but they cannot have a political purpose or carry out political activity unconnected to their charitable aims. Trustees must also stop the charity being used to express the party political views of an individual trustee or staff member. Charitable think tanks therefore stress their independence from parties, even where their values lean left or right.

Think tank funding transparency ratings in 2026

Naming donors is largely up to each organisation: Who Funds You? says it simply asks think tanks to make a voluntary disclosure. Its rating is the best-known yardstick, and it grades organisations only on what they disclose on their own websites or in linked accounts. As of October 2026 the grades work like this:

• A: names every funder that gave £5,000 or more in the last reported year and states the exact amount from each.
• B: names at least 85% (by value) of those funders and groups them into precise funding bands.
• C: names at least half of them by value.
• D: names some funders, but only a minority or not systematically.
• E: gives no or negligible information about funding.
• E*: introduced in October 2026 for organisations that are opaque about funding and also give little or no information about their governance or corporate structure.

To earn an A, B or C, an organisation must also publish its annual income. Funding routed through vehicles that can hide the original donor, such as US donor-advised funds, may make up no more than a third of income for an A and two-thirds for a B.

Recent changes to the ratings

Who Funds You? says it no longer has the funding for a full audit and now takes a risk-based approach, concentrating on the most influential organisations and those with the weakest disclosure. Its September and October 2026 updates included these changes:

• The Institute for Government was upgraded from D to B after a volunteer audit.
• Re:State was upgraded to A, after the campaign judged that it names all institutional funders with exact amounts.
• The Tony Blair Institute for Global Change was rated D. The campaign said it names some funders, but its international structure makes UK spending hard to identify.
• The Centre for Policy Studies was downgraded from D to E because, the campaign said, it appeared to have stopped naming funders. The environmental think tank E3G was also moved from D to E.
• Several inactive organisations were removed, and the High Pay Centre, consistently rated A, left the list after announcing its closure.

The ratings have limits. Who Funds You? says it cannot verify what organisations tell it, and it rates disclosure rather than the quality or accuracy of research. A low grade does not mean a report is wrong. It means readers cannot easily see who paid for it.

How to read a think tank report

Think tank work can be rigorous and valuable, and the same report can be read very differently depending on where it comes from. A few checks help:

• Look for the funding note. Good reports say who paid for the project, as the IFS and Resolution Foundation pre-Budget reports did in October 2026.
• Know the organisation’s outlook. Most think tanks are open about their values on their “about” pages. A free-market institute and a progressive one may analyse the same data and reach different policy conclusions.
• Separate the analysis from the recommendations. Numbers drawn from official statistics, such as ONS or Office for Budget Responsibility figures, can usually be checked. Recommendations are judgements.
• Compare with other institutes. When the IFS, Resolution Foundation and Institute for Government reach similar conclusions from different starting points, that agreement is meaningful.

Westferry Times has looked at the relationship between think tanks and party politics before, including how think tanks interact with the Conservatives and public opinion and questions raised by an undisclosed donation.

Frequently asked questions

Do UK think tanks have to reveal their donors?

Disclosure is largely voluntary. Who Funds You? asks organisations to disclose their funders and grades them on what they publish, but it says it cannot force disclosure or verify everything it is told.

Are think tanks part of the government?

No. Think tanks are independent organisations. They should not be confused with official bodies such as the Office for Budget Responsibility, which is a public body sponsored by the Treasury.

Which UK think tanks are the most transparent?

Those graded A by Who Funds You?, which name all significant funders and the amounts given. The ratings change, so check the campaign’s latest update rather than relying on an old list.

Can a charity think tank support a political party?

Not as its purpose. Charity Commission guidance says charities cannot have a political purpose, although they can campaign on policy where it furthers their charitable aims.

Sources: Who Funds You?, Methodology (accessed October 2026); Who Funds You?, FAQs (accessed October 2026); Who Funds You?, September 2026 ratings update (25 September 2026); Who Funds You?, October 2026 ranking update (19 October 2026); Charity Commission, Campaigning and political activity guidance for charities (CC9); Institute for Fiscal Studies, The IFS Green Budget: October 2026 (October 2026); Resolution Foundation, About us; Institute for Government, About us; IPPR, About; Centre for Policy Studies, About; Adam Smith Institute, About us; Nuffield Trust, About; GOV.UK, Office for Budget Responsibility.