May / June 2003

Dear Friends,

I am very proud and honored to begin my new assignment at the Irvine Foundation, which was created by James Irvine in 1937 to benefit Californians. Over the last 66 years, the Foundation has met the objectives of its founder by providing more than $750 million in grants to over 6,000 nonprofit organizations. All of us associated with the Foundation inherit this rich legacy, and we are privileged to have the opportunity to further advance this work toward realizing Mr. Irvine’s vision for the people of California.

As you are aware, this past year has been a time of change at the Foundation. In June 2002, the Foundation initiated a comprehensive strategic planning effort. To inform our planning, we have gathered and examined data about the people of California—who they are, where they live, and what their prospects are. We also interviewed Californians from different walks of life about current needs and future trends, and we consulted with foundation colleagues and subject experts throughout the State and across the country.

We are now nearing the conclusion of our strategic planning work, and we do so with a renewed commitment to expanding opportunity for Californians and a strong desire to achieve increased focus and impact moving forward. Specifically, the Foundation has selected three areas of concentration—Youth, the Arts, and California Perspectives, which will focus on research and information about significant issues facing the State and its regions. Each of these program areas builds on Irvine’s experience and prepares the Foundation to augment its service to the people of California now and into the future.

One of the areas in which the Foundation has a long and distinguished history of grantmaking is in the arts. I am pleased to report that we released our updated Arts Grantmaking Guidelines in mid-April. In view of the diminished funding environment for the arts in California, the Foundation’s ongoing commitment may be more important than ever before. We will continue to refine our two other focus areas in Youth and California Perspectives and will release funding priorities later this year. As we have noted before, the bulk of grantmaking resources in 2003 are dedicated to a responsible transition for our grantees in those program areas that we will be exiting.

Throughout the strategic planning process the Foundation has remained active in grantmaking with $51 million planned for distribution in 2003. The following information indicates our progress to date and addresses frequently asked questions about the Foundation’s planning efforts, current grantmaking and future directions.

In closing, I pay special tribute to my predecessor, Mary Bitterman. It was her vision that led the Foundation to undertake this important and timely strategic review, and it has been a pleasure for me to work closely with her on this effort. From the beginning of this process, she emphasized the importance of focusing on the people of this State and their needs and prospects, and that orientation will benefit both the Foundation and the people we serve for many years to come.

Sincerely yours,

James E. Canales
President & CEO

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