November / December 2003

Dear Friends,

Since assuming leadership for the Foundation six months ago, the question I have been asked most frequently has been: "When is Irvine finishing its strategic planning process?" I appreciate the question, and the polite impatience that it represents. We understand all too well that the challenges facing California and its nonprofit community have not become any less significant during the past year.

As you know from my earlier messages, we have made steady progress, and I am pleased to report that the strategic planning process is now complete. At some point, institutions have to put a stake in the ground and move ahead, which we are now doing, as we move from planning to execution. At the same time, I would observe, as I did in my recent annual report essay, that philanthropic organizations have an obligation to remain attuned to the changing environment and, as such, I anticipate that ongoing planning will always be a central part of the Foundation's work.

With our revised mission and goals, and the identification of Arts, Youth and California Perspectives as our areas of focus in the future, we have made good progress and by year's end, we anticipate awarding 82 grants totaling over $27 million consistent with Irvine's new directions. Furthermore, we will conclude approximately $21 million in transitional grantmaking in December in support of organizations in those program areas we have discontinued. We anticipate ramping up significantly our grantmaking in Arts, Youth and California Perspectives in 2004. Formal guidelines for our Arts program were posted earlier this fall, and we anticipate publishing guidelines in Youth and California Perspectives early in 2004.

In addition to identifying our programmatic focus, another key element of implementing Irvine's strategic plan has been to bring our operations, structure, and staffing into alignment with our strategy. Accordingly, we are currently redesigning our grantmaking processes to streamline and simplify the ways grantseekers and grantees interact with Irvine, in an effort to be more efficient and more service-oriented. Also, in keeping with the incremental transition to our updated focus areas next year, we are redesigning the Foundation's website, which represents our core communications vehicle for informing the community about our activities, and we expect to relaunch a new website in early 2004 with more extensive information about our new programs and related strategic directions.

In building a staff that is aligned with strategy, I am pleased to announce the promotion of my colleague Marty Campbell to the position of Vice President for Programs. In this new position, Marty will provide leadership for the Foundation's integrated grantmaking program and will oversee Irvine's communications and evaluation functions. Marty has been with the Foundation since 1995, having held a variety of positions, including Program Director for Health, Director of Evaluation, and most recently, Director of Program Development and Evaluation. To lead the Foundation's Youth program area, Anne B. Stanton, Executive Director of Larkin Street Youth Services, has joined Irvine's staff to oversee the Foundation's Youth activities, while remaining engaged with other members of the senior staff in developing integrated strategies within our other areas of focus. We are currently conducting a search for a Program Director to lead our Arts activities out of our Los Angeles office.

In closing this update, I do so by acknowledging Kathryn Wheeler, James Irvine's granddaughter, who passed away on October 4 in Corona del Mar, CA. Katie served with distinction as a member of the Foundation's Board of Directors for 47 years. She then served as an Honorary Director for the past six years, during which time she continued to attend board meetings and participate actively in the Foundation's activities. For 53 years, Katie served as a direct link to our founder and frequently reminded us that Mr. Irvine cared deeply about assisting Californians to become educated and productive members of their communities. We are fortunate to have benefited from Katie's long-standing engagement with the Foundation, and we will miss her can-do spirit and genuine encouragement.

As always, I welcome your questions or ideas about this message or any other aspect of the Foundation's work.

Sincerely,

James E. Canales
President & CEO

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