As a nation, we are about to embark upon an interesting time in our history -- especially in the ongoing movement for social change and social justice.  On the one hand, we celebrate the extraordinary election of Barack Obama as our nation’s first African-American president.  At the same time, however, we have the sobering reality that our nation is confronted with the most serious economic crisis we have seen in the last half-century.

What does this mean for The California Endowment, our mission and our grantees?  Like many other philanthropic organizations, we are not immune from the effects of Wall Street’s woes.  The current volatility on Wall Street has caused us to lose a sizable portion of our investments and assets.  In response to this challenge, our Board of Directors and senior management team have spent considerable time in recent weeks deliberating on an appropriate and timely response.  Of greatest concern to us is the impact that the stock market and the troubled economy will have on working and low-income individuals, families and underserved communities – as well as the nonprofit organizations that serve them.

In response to the current economic climate we are announcing the following:

• All current grant commitments and current-year grant-making levels will be honored and upheld.
• Grant-making levels for our coming fiscal year (beginning March of 2009 for us) will not be reduced from our existing multiyear spending plan -- although we will seek reductions in our administrative costs.
• Early in 2009, we will announce a funding response to address immediate needs for those hardest hit by the economic downturn, as well as additional resources for advocacy organizations, in anticipation of the high demand for services faced by community-based nonprofits.
• We remain committed to the implementation of our new 10-Year Strategic Plan of Building Healthy Communities.

These are especially tough times for underserved communities, and we are committed to act thoughtfully and responsibly to address an unprecedented level of health and safety-net needs in so many California communities.

For more information and ongoing updates on our Strategic Vision please visit our Strategic Vision Web site.   

Daniel Boggan
Chair of the Board of Directors

Tessie Guillermo
Vice Chair of the Board of Directors

Robert K. Ross, M.D.
President and CEO
The California Endowment