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Whatisfreedom? 2002 Annual Report What is Freedom? STATEMENT OF PURPOSE TABLE OF CONTENTS he John S. and James L. Knight From the Chairman 2 TFoundation was established in 1950 as a private foundation inde- From the President 4 pendent of the Knight brothers’ 2002 Programs: Prologues, Strategies and Grants 6 newspaper enterprises. It is dedicat- ed to furthering their ideals of serv- Journalism Initiatives 16 ice to community, to the highest Community Partners standards of journalistic excellence 30 and to the defense of a free press. National Venture Fund 44 In both their publishing and phil- anthropic undertakings, the Knight Trustees, Officers, Staff 56 brothers shared a broad vision and History 58 uncommon devotion to the common welfare. It is those ideals, as well as Investment Report 64 their philanthropic interests, to which Auditors’ Report 65 the foundation remains faithful. To heighten the impact of our grant Financial Information 66 making, Knight Foundation’s trustees Letter of Inquiry 72 have elected to focus on two signa- ture programs, Journalism Initiatives Production Credits Inside Back Cover and Community Partners, each with its own eligibility requirements. A third program, the National Venture Fund, nurtures innovation, leadership and experimentation for community investments that might benefit Knight communities. In a rapidly changing world, the foundation also remains flexible enough to respond to unique chal- lenges, ideas and projects that lie beyond its identified program areas, yet would fulfill the broad vision of its founders. None of the grant making would be possible without a sound financial base. Thus, preserving and enhancing the foundation’s assets through pru- dent investment management contin- ues to be of paramount importance. ‘When I turn 18, I’m gonna vote for real.’ JUSTIN ADAMS Justin is 14 and an eighth grader at a Myrtle Beach, S.C., middle school. He cast a ballot on Election Day 2002 as a Kids Voting participant, even if partly ‘to get extra credit for school.’ FROM THE CHAIRMAN With Freedom Comes Opportunity W. Gerald Austen, M.D. ‘Congress shall make no law respecting an establishment people. Who better to define it for us than of religion, or prohibiting the free exercise thereof; or those we aim to help? Some examples: abridging the freedom of speech, or of the press; or the For the journalists of Rio de Janeiro, right of the people peaceably to assemble, and to petition freedom is learning investigative the government for a redress of grievances.’ reporting techniques in Brazil from Rosental Alves, the Knight Chair in – THE FIRST AMENDMENT International Journalism and head of the new Knight Center for Journalism ohn S. Knight wrote “The Editor’s citizen – appreciated the great human in the Americas at the University of JNotebook” some 2,000 times dur- fascination with freedom. They also Texas at Austin (page 16). Unlike ing four decades of his distinguished knew that freedom is too often taken most of their U.S. counterparts, Latin journalism career. He shared with for granted, too often denied. American journalists face daily life- readers – regular folk and national The Knight brothers understood that threatening conditions working in leaders alike – his views on subjects freedom provides opportunity. Through places like Rio’s mountainside slums. ranging from economics to politics their philanthropy, they helped count- Unfortunately, some have lost their to whimsy. On several occasions, the less people and hundreds of organiza- lives for the cause, as did Professor column’s subject was the First Amend- tions gain access to the opportunities Alves’ friend Tim Lopes at the hands ment and the freedoms it sets out for freedom represents. For 53 years, those of Rio drug lords. all Americans. of us privileged to be part of their foun- We Americans are free to elect our From Feb. 7, 1943: “We are ourselves dation have worked to translate their representatives, but some voting sys- free, and our paper shall be free – free intent into action. Given our program- tems are flawed – as Florida’s 2000 as the Constitution we enjoy – free to matic interests, freedom becomes a presidential election demonstrated truth, good manners and good sense.” compelling theme for an annual report most clearly. On Oct. 29, 2002, Pres- And from Sept. 16, 1951: “The Con- documenting a foundation undergoing a ident Bush signed the Help America stitution was written by men who under- careful evolution in challenging times. Vote Act, a bipartisan effort to aid stood better than we the price of liberty In this report you see comments states and localities in updating their and the blessings of free institutions.” from our funding partners, programs voting systems. The president acknowl- Jack and Jim Knight – each an indus- and communities, all confirming that edged the work of the National Com- try leader and respected community freedom means many things to many mission on Federal Election Reform, J OHN S. AND J AMES L. KNIGHT F OUNDATION 2 FROM THE CHAIRMAN established by the Miller Center of steady state, sticking to our commitment Public Affairs at the University of to help people increase their access to Virginia and the Century Foundation the things freedom guarantees. with support from Knight Foundation’s The year had its high points. Two new National Venture Fund. Enactment trustees who connect us closely to impor- of the new law illustrates the benefit tant Knight communities have joined the that one Knight grant to a national foundation’s board. Mariam C. Noland organization can have in all 26 heads the community foundation serving Knight communities and beyond. greater Detroit, and is a leader in promoting Basic freedoms are a beginning point, Mariam C. Noland Robert W. Briggs philanthropy. We first learned to value and a necessary one, but they don’t Mariam’s intelligence and perspective ensure a life of dignity and equal are concentrating resources to improve when she was a member of one of our opportunity for far too many under- the economic well-being of families. former national advisory committees. privileged individuals in the 26 U.S. And Knight partners are working Robert W. Briggs is chairman of Bucking- communities we serve. In our strate- in North Philadelphia and nearby ham, Doolittle & Burroughs, a respected gic planning, Knight trustees agreed Camden, N.J., striving to improve liter- law firm in our historic home of Akron. that a major focus of our grant mak- acy and increase cultural participation. Rob is known throughout Ohio for his ing is aiding those least able to help In addition to this sampling, there are determined and gracious leadership of themselves. Our Community Partners myriad other ways Knight Foundation sup- many civic causes. Both Mariam and Program has continued developing ports freedom by providing opportunity in Rob have already made very thoughtful specific outcomes and strategies in journalism and in our communities. Those contributions to our board through their 2002 in partnership with local non- stories and narratives begin on page 6. service on the Grants Review Committee. profits, providing access and oppor- Of course, these funding efforts are As you look at the faces and read the tunity to residents of some of America’s possible thanks to careful stewardship of comments about freedom from the diverse most troubled neighborhoods. In June, the foundation’s assets (page 64). Like residents of Knight communities, you will Knight Foundation trustees witnessed many other institutional investors, Knight likely come to the same conclusion I firsthand how our nonprofit partners Foundation has seen assets fall in an econ- reached. Our communities represent in Long Beach, Calif., work on school omy that has trended downward longer today’s United States. As Americans, readiness issues in the fascinatingly than any of us ever imagined. From our each of us shares the protective cloak of diverse and economically deprived high at the end of 2000, over the last two freedom and the opportunity that freedom 90806 ZIP code. With Knight Foun- years the foundation has had investment promotes. Collectively, we share the dation help, our partners in Boulder, losses of 13.3 percent. These results hold responsibility to preserve and make real Colo., are working with the children up very favorably to the benchmarks those freedoms for our fellow citizens. of Latino families to better prepare against which we compare investment per- Jack Knight fought for press freedom them for school and life. Together with formance. And despite the dip, we paid because he knew it assured us of a better our partners working in Miami’s Over- out some $86 million in grants in 2002, world. “True journalism – and I empha- town and East Little Havana neigh- slightly more than the previous year. Even size that word ‘true’ – is the lamplight of borhoods – the geographic heart of in this challenging economy, we plan for our modern society,” he wrote in celebrat- America’s poorest urban center – we now to maintain our grant outlays in a ing the first Pulitzer Prize at one of his newspapers. “Without it, the lamps are The Year in Review Jan. 1, 2002 – Dec. 31, 2002 turned down and we revert back to the Dark Ages. … It is the beacon light of Assets: $1.72 billion this new experiment we call democracy.” Grants paid out: $85,617,981 Proposals received: 551 New grants approved: $80,949,242 (459 grants) W. Gerald Austen, M.D. Average approved grant: $176,360 Chairman 2002 ANNUAL R EPORT 3 FROM THE PRESIDENT Stronger Organizations, Stronger Democracy Hodding Carter III ‘The winning of freedom is not to be compared to the Eisenhower to the English Speaking winning of a game, with the victory recorded forever in Union in London as the tide of war was history.
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