Democratic Leadership Council will fold

The Democratic Leadership Council, the iconic centrist organization of the Clinton years, is out of money and could close its doors as soon as next week, a person familiar with the plans said Monday.

The DLC, a network of Democratic elected officials and policy intellectuals had long been fading from its mid-'90s political relevance, tarred by the left as a symbol of "triangulation" at a moment when there's little appetite for intra-party warfare on the center-right. The group tried -- but has failed -- to remake itself in the summer of 2009, when its founder, Al From, stepped down as president. Its new leader, former Clinton aide Bruce Reed, sought to remake the group as a think tank, and the DLC split from its associated think tank, the Progressive Policy Institute.

But Reed left the DLC last year himself to serve as Vice President Joe Biden's chief of staff, leaving Ed Gresser, a trade expert, to lead the group in the interim. Since then the board "hasn't been able to find someone who wanted to come on in a permanent capacity," a person familiar with the group's woes said, with the central problem the difficulty of raising money for a Democratic group that isn't seen as an ally of the White House.

"With its CEO Bruce Reed joining the Administration, the DLC Board of Directors has decided to suspend operations while it considers what the next phase of the DLC will be," From said in an emailed statement. "The issues the DLC has championed continue to be vital to our country and the DLC will continue to impact them in its next phase. The Democratic Leadership Council has had an historic impact on American politics over the past 25 years. We’re convinced that it will continue to have that impact in the future."

The DLC is already showing signs of disrepair. Its website currently leads a Harold Ford op-ed from last November, titled, "Yes we can collaborate." It lists as its staff just four people, and has only one fellow. Recent tax returns weren't immediately publicly available, but returns from 2004-2008 show a decline in its budget from $2.6 million to $1.5 million, and a source said funding further dried up during the financial crisis that began nine months before Reed took over.

PPI appears poised to pick up the group's legacy on the center-left; it has ramped up steadily since the two split, and now has 11 paid staff and two fellows, an official at PPI said.

UPDATED with From statement.