Foundations provide key funds for nongovernmental organizations. We know little about what they do for transnational activism or the mechanisms via which they seek/achieve influence. We carve a middle ground between those who see donors as supporting actors in transnational advocacy networks (TANs) and those who think they distort activism through impersonal market forces. Our negotiation-oriented approach looks at the micro-dynamics of donor–grantee relations. We argue that influence is a function of donors’ organizational characteristics. Only some, especially foundations, have the vision/means to shape grantees. However, internal complexity can cause coordination problems, complicating influence. Additionally, if many donors exist, recipients’ leverage increases. It does so too if their expertise is in short supply. Using archival evidence, we reconstruct how Ford tried to shape the Inter-American Human Rights Institute, a pillar of the region's human rights regime, and the factors conditioning success. For Ford, the Institute could play a role in a fledging TAN, but only if it downplayed its emphasis on research and directly engaged activists. Coupled with analyses of USAID’s relationship with the Institute and Ford's relationship with Americas Watch, we shed light on the activities of an important class of donor and illuminate foundations’ role in the development of TANs.
