July / August 2003

Dear Friends,

I am pleased to report on our progress during the past two months related to strategic planning activity at the Foundation. A vital part of our work has been to review the Foundation's mission and goals, last revisited in 1986. In view of what we know to be the California of today and the future, combined with our assessment of the ways in which Irvine can uniquely serve the people of California, the Board of Directors adopted the following statement of mission at its most recent board meeting:

The mission of The James Irvine Foundation is to expand opportunity for the people of California to participate in a vibrant, successful, and inclusive society.

The notion of expanding opportunity thus becomes the guiding principle for the Foundation in all of its activities. Whether we expand opportunity by helping youth to navigate critical transitions in their lives, by fostering creativity and nurturing a rich cultural environment in our State, or by improving decision-making related to the critical issues facing California today and into the future, our vision is a State where full and active participation by all Californians becomes a reality.

In pursuit of this mission, the Foundation will be guided by the following goals:

• Advance the educational and economic prospects of low-income Californians to share in and create California's prosperity.
• Engage a broad cross-section of Californians in the civic and cultural life of their communities and the State.
• Enhance mutual understanding and communication among diverse racial, ethnic and socioeconomic groups.
• Enrich the State's intellectual and creative environment.

Flowing from the mission and goals, as I have reported previously, the Foundation has identified three areas of concentration in its grantmaking program—Youth, the Arts, and California Perspectives, which focuses on research and information about significant issues facing the State and its regions. Together, these three areas build upon the Foundation's rich history and meaningful partnerships and provide us with an integrated strategy for serving the people of California now, and in the years ahead.

Throughout our strategic planning process the Foundation has remained actively engaged in grantmaking, with $51 million planned for distribution in 2003. While we have initiated some limited grantmaking in our new areas, it is important to note that the majority of our grantmaking this year is dedicated to supporting a responsible transition in program areas that we are exiting. We have posted our new guidelines in the Arts and intend to share additional information later this year on our priorities for Youth and California Perspectives. We expect that our grantmaking activity in 2004 will be dedicated solely to our new areas of focus.

I would also like to report on recent changes in the leadership of the Board of Directors. James C. Gaither, who has served with distinction as Chair of the Board for the past 6 ½ years stepped down from that role in June as planned, and was succeeded by Peter W. Stanley, who retired in June as the President of Pomona College. Jim Gaither contributed significantly to the Foundation's growth and success during his tenure as Chair, and all of us at the Foundation are grateful for his dedication and exemplary leadership. Peter Stanley, who has served on the Board since 1997, will be the Foundation's first Chair from Southern California. Dr. Stanley brings to his role a rich understanding of California and its issues, substantive experience in philanthropy, and a deep commitment to the Foundation's mission and goals. All of us on staff and the board look forward to his leadership in the years ahead.

Finally, I offer my genuine appreciation to those who have expressed their support to me as I have assumed my role as President of the Foundation. As I mark my tenth anniversary as an employee of the Foundation this July, I am reminded of the enormous privilege associated with working for a philanthropic enterprise, particularly one with Irvine's history and legacy.

As always, I welcome your observations and suggestions, in our continuing commitment to open communication.

Sincerely,

James E. Canales
President & CEO

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