Foundation Annual Reports

WILLIAM AND FLORA HEWLETT FOUNDATION
2121 Sand Hill Road
Menlo Park, Calif. 94025
(650) 234-4500
http://www.hewlett.org

Period covered: Year ending December 31, 2002.

Purpose and areas of support: The foundation was established in 1966 by William R. Hew-lett, co-founder of the Hewlett-Packard Company; his wife, Flora Lamson Hewlett; and their eldest son, Walter B. Hewlett. When the elder Mr. Hewlett died in January 2001, he bequeathed much of his estate to the foundation, which has no connection to the Hewlett-Packard Company or to any of that company’s philanthropic activities.

The foundation typically allocates half of its annual grant budget for the general operating support of grantees. A percentage of its disbursable funds is earmarked for projects in the San Francisco Bay Area.

In 2002, the foundation authorized grants totaling $176,853,000. Current grant making concentrates on six program areas: conflict resolution, education, the environment, the performing arts, population, and U.S.-Latin American relations. The foundation also makes some grants in the areas of global affairs, neighborhood improvement, and philanthropy and organizational effectiveness. A program on family and community development was terminated at the end of 2002.

The conflict-resolution program supports groups that track and respond to domestic and international conflicts through various means. For example, $300,000 went to the Kettering Foundation, in Washington, for post-conflict peace-building efforts in Tajikistan. Grants for conflict resolution have been cut substantially since 2002 and currently emphasize national and international conflict resolution, consensus building, and public participation in local, state, and national governance.

During 2002, the foundation’s education program developed a new strategic plan. Currently, the program focuses on “long-term institutional or field development, reform, or knowledge development” in five areas: increasing student achievement by improving instruction in urban school systems; using information technology to expand access to high-quality, freely available academic materials; spurring improvement in the quality and equity of education available at elementary and secondary schools and community colleges in California; improving universal basic education in developing countries; and pursuing special opportunities that are aligned with the other four areas.

Education grants made in 2002 included $150,000 to the East Bay Community Foundation, in Oakland, to create a forum on public-school accountability in California.

The foundation reviewed its environmental program and decided in 2002 to focus its grant making on projects that strengthen environmental groups in Los Angeles and in California’s Central Valley; that preserve the ecosystems of western North America; and that promote energy efficiency and renewable energy sources. For example, the Natural Resources Defense Council, in San Francisco, received $210,000 for a project to encourage energy-efficient policies in Silicon Valley’s high-tech industries.

Grants for the performing arts continued to support arts and cultural institutions in the San Francisco Bay Area. For example, the Philharmonia Baroque Orchestra, in San Francisco, received $260,-000 for general support and other organizational needs.

Population grants are made to organizations worldwide, including many U.S. organizations that operate international projects. The program seeks to increase access to high-quality family planning and reproductive health care by pursuing four objectives: improving government policies and increasing financial support by government and private institutions; making available up-to-date information and services related to family planning and reproductive health; promoting research on relevant demographic and other issues; and enhancing the training of health professionals, social scientists, and others. Allocations included $225,000 to the Association of Reproductive Health Professionals, in Washington, for a hotline and Web site on emergency contraception.

The program on U.S.-Latin American relations makes grants to organizations in Latin America and the United States working to tackle key development issues in Mexico and Brazil. The foundation is currently revising the program’s priorities and plans to make most of its Latin American grants for Mexico-based activities, with grants in Brazil limited to specific environmental issues.

Created in 1996, the Neighborhood Improvement Initiative is a multiyear commitment to improve the economic and social conditions and physical infrastructure in two San Francisco Bay Area neighborhoods: central East Palo Alto and Mayfair, in east San Jose.

Application procedure: Detailed guidelines are available on the foundation’s Web site. The foundation currently does not accept letters of inquiry for its programs or initiatives on conflict resolution, global affairs, philanthropy, population, or U.S.-Latin American relations. Potential applicants for the foundation’s programs on education, the environment, and the performing arts should read the appropriate program guidelines and then submit a brief letter of inquiry, using the online form available on the Web site.

Key officials: Paul Brest, president; Laurance Hoagland Jr., vice president and chief investment officer; Susan S. Bell, vice president and director, philanthropy and organizational effectiveness; Eric Brown, director of communications; Carolyn Provost, manager, grants administration; Connie Bassett, grants administrator; Walter B. Hewlett, chairman of the Board of Directors.

Program and initiative directors: Terry Amsler (conflict resolution); Moy Eng (performing arts); Hal Harvey (environment); Alvertha Penny (senior adviser to the president and director, neighborhood-improvement initiative); C.R. Hibbs (U.S.-Latin American relations, Mexico); Joseph Ryan (U.S.-Latin American relations, Brazil); Sara Seims (population); Christine Sherry (Philanthropy Workshop West); Marshall Smith (education).

W.K. KELLOGG FOUNDATION

1 Michigan Avenue East
Battle Creek, Mich. 49017-4058
(269) 968-1611
http://www.wkkf.org

Period covered: Year ending August 31, 2003.

Purpose and areas of support: Will Keith (W.K.) Kellogg, founder of the breakfast-cereal company that bears his name, established the foundation in 1930. Mr. Kellogg donated more than $66-million in Kellogg Company stock and other investments to the foundation during his lifetime. The foundation receives its income primarily from the W.K. Kellogg Foundation Trust, also established by Mr. Kellogg, who died in 1951.

The foundation supports programs in the United States, which received 80 percent of grant dollars in fiscal 2003; Latin America and the Caribbean, which received 11 percent; and the southern African nations of Botswana, Lesotho, Mozambique, South Africa, Swaziland, and Zimbabwe, which collectively received 9 percent.

During fiscal 2003, the foundation paid out grants totaling $201,442,078 to 941 of its 2,706 active projects. Grant making focuses on four main program areas: youth and education, which received $32,138,233, or 17 percent of grant dollars; health, which received $24,074,248, or 12 percent; food systems and rural development, $22,222,629, or 11 percent; philanthropy and volunteerism, $16,324,408, or 8 percent. The foundation tailors its activities in those four main areas to meet the specific needs of each geographic region in which it works.

The remaining 52 percent of grant dollars was spent on related program activities and special opportunities, “recurring grants,” and programs in southern Africa, Latin America and the Caribbean, and the Battle Creek, Mich., area.

The youth and education program supports activities to enhance the various systems, educational and otherwise, that affect learning from infancy through early adulthood. The program emphasizes two strategies: mobilizing youths, families, and community members to promote policies that can improve education for disadvantaged children and youths, and establishing strong partnerships between educational institutions and communities with a view to improving academic performance, learning, and work-force preparation. Grants for youth and education included $50,000 to the New York Botanical Garden, in the Bronx, for a program that helps prepare at-risk youths who demonstrate a high aptitude for and interest in science to purse future careers in the field.

The health program’s goal over the next five years is to promote health among vulnerable people and their communities by engaging those constituents, improving health-care quality and access, informing health-related public and consumer policies, and encouraging positive change within health-care systems and institutions. Awards included $200,000 to the Center for New Black Leadership, in Washington, to develop a church-based system designed to connect elderly women and minorities in Chicago, Indianapolis, and Washington with high-quality health-care services and information.

Food-systems grants support efforts to ensure long-term supplies of wholesome foods and methods of food production that are economically viable, environmentally sound, and socially responsible. Correspondingly, rural-development grants encourage collaborations that improve the lives of people in rural communities by offering them expanded economic and social opportunities. Heifer Project International, in Little Rock, Ark., for example, received $700,000 to assist groups that encourage immigrant farmers worldwide to use sustainable food-production methods and community-based marketing enterprises.

The program on philanthropy and volunteerism focuses on educating and encouraging new donors and on fostering leadership and effectiveness in philanthropy and in nonprofit organizations. The program places special emphasis on efforts to benefit women, youths, and members of minority groups. For instance, the Michigan Women’s Foundation, in Livonia, received $1,080,000 to strengthen its operations and to promote the foundation as a model for similar funds nationwide.

The foundation began making grants in Latin America and the Caribbean in the late 1940s and in southern Africa in the mid-1980s.

Application procedure: The foundation encourages grant applicants to submit their requests electronically, using the online application form available at the foundation’s Web site. More-detailed information and grant-making guidelines for each program are available on the foundation’s Web site.

Key officials: William C. Richardson, president and chief executive officer; Gregory A. Lyman, senior vice president and corporate secretary; Anne C. Petersen, senior vice president for programs; Richard M. Foster, Marguerite M. Johnson, Robert F. Long, and Gail D. McClure, vice presidents for programs; Paul J. Lawler, vice president and chief investment officer; La June Montgomery-Talley, vice president for finance and treasurer; Hanmin Liu, chair of the Board of Trustees.

VIRGINIA G. PIPER CHARITABLE TRUST

6720 North Scottsdale Road, Suite 350
Scottsdale, Ariz. 85253
(480) 948-5853
http://www.pipertrust.org

Period covered: Year ending March 31, 2003.

Purpose and areas of support: The trust was established in 1995 by Virginia G. Piper, whose first husband, Paul V. Galvin, founded Motorola. Mrs. Piper, who lived in Paradise Valley, Ariz., for nearly three decades, was the sole administrator of the trust until her death in June 1999. At that time, the trust received more than $500-million from her estate and significantly expanded its operations.

Grant making is limited to organizations that serve residents of Maricopa County, Ariz. During fiscal 2003, the trust paid grants totaling $15,876,479 as follows: children, which received $6,438,412; health care and medical research, $6,025,000; arts and culture, $1,322,114; religious organizations, $1,282,500; the elderly, $494,470; the Piper Fellows Program, $93,940; nonsectarian educational organizations, $60,000; and other areas, $160,043.

The trust has identified four “initiative areas” — early childhood, youths, the elderly, and arts and culture — for its initial years of grant making. In addition, the trust periodically considers solicited proposals in other areas.

Early-childhood grants seek to improve the quality of life for young children by helping parents, child-care providers, and preschool teachers provide safe, stable, and developmentally stimulating environments for children; by improving children’s readiness to learn; and by expanding high-quality child-care services available to low-income families. For example, the Marcus House, in Phoenix, received $20,000 for its shelter that houses abused, neglected, and abandoned children in Maricopa County who are younger than 5 years old.

Youth grants aim to improve the intellectual, physical, and social well-being of adolescents by supporting mentoring, tutoring, and other out-of-school activities.

Grants for elderly people support projects that help them gain access to crucial services, including those that encourage independent living and civic engagement.

Grants for arts and culture support board improvement and organizational planning at nonprofit organizations, as well as collaborations among arts-related groups.

The Piper Fellows Program provides paid sabbaticals to outstanding nonprofit executives working at arts, education, health, human-services, and religious groups in Maricopa County.

Application procedure: In order to be eligible for support, organizations must have held tax-exempt status for at least three years under Section 501(c)(3) of the Internal Revenue Code, and must serve primarily residents of Maricopa County, Ariz. Applicant organizations should submit a summary form and a two-page letter of inquiry. The summary form and additional information are available on the trust’s Web site.

Key officials: Judy Jolley Mohraz, president and chief executive officer; Mary Jane Rynd, chief financial officer; Wayne D. Parker, director of research and evaluation; Ivelisse Lopez-Gonzalez, Carol A. Kratz, and Marilee L. Dal Pra, program officers; Karin H. Bishop, grants manager; Valerie A. Osowski, director of communications; James D. Bruner, Paul N. Critchfield, Arthur W. DeCabooter, Laura R. Grafman, and Sharon C. Harper, trustees.