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In page American Enterprise Institute:

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During the Reagan years, several AEI staff members decamped for the administration. That, combined with prodigious growth, diffusion of research activities,[2][original research?] and managerial problems, proved costly.[3] Some foundations then supporting AEI perceived a drift toward the center politically. Centrists like Ford, Burns, and Stein clashed with rising movement conservatives. In 1986, the John M. Olin Foundation and the Smith Richardson Foundation withdrew funding for the institute, pushing AEI to the brink of bankruptcy. The board of trustees fired Baroody Jr. and, after an interregnum under interim president Paul McCracken, hired Christopher DeMuth as president in December 1986.[3] DeMuth stayed on for twenty-two years.