?E William Nd Flora [Ewlett Foundation

?e William nd Flora [ewlett foundation ANNUAL E P O R T The William and Flora Hewlett Foundation BOARD OF DIRECTORS PROGRAM STAFF U.S.-Latin American Relations David E. Lorey Walter B. Hewlett Conflict Resolution Program Officer Chairman B. Stephen Toben Palo Alto, California Mariana Alvarado Program Officer Program/Administrative Assistant William R. Hewlett Patricia Gump Chairman-Emeritus Program Assistant Portola Valley, California FINANCE GROUP Education David Pierpont Gardner President Raymond F. Bacchetti William F. Nichols Menlo Park, California Program Officer Treasurer Robert F. Erburu Ida Oberman Diana Lieberman Los Angeles, California Program Associate Assistant Treasurer for Investments James C. Gaither Theresa Jacobson Kelly A. Meldrum Hillsborough, California Program Assistant Assistant Treasurer for Investments Eleanor H. Gimon N. Elizabeth Dunfield Greenwich, Connecticut Environment Accounting Manager H. Irving Grousbeck Michael L. Fischer Charlene E. Cooper Portola Valley, California Program Officer Accountant Richard A. Hackborn Rhea Suh Mariana Alvarado Meridian, Idaho Program Associate Program/Administrative Assistant Mary H. Jaffe Roberta Green Program Assistant Portland, Oregon ADMINISTRATIVE SERVICES Herant Katchadourian, M.D. Family and Community Stanford, California Development Marianne Pallotti Vice President/Corporate Secretary Condoleezza Rice Alvertha Bratton Penny Stanford, California Program Officer Terry Keenor Director of Information Technology Renu Karir Program Associate Sally Lee OFFICERS IT Project Manager Roberta Green David Pierpont Gardner Program Assistant Susan Alexander President Manager of Grants and Information Performing Arts Systems Marianne Pallotti Vice President/Corporate Secretary Melanie Beene Robert C. Ernest Program Officer Grants and Information Systems William F. Nichols Assistant Treasurer Natasha Terk Program Associate Heather Jackson Receptionist/Staff Assistant Kathleen D. Pace Program Assistant Celia Lonborg Receptionist/Staff Assistant Population Lisa M. Sanders J. Joseph Speidel, M.D. Administrative Coordinator Program Officer Fe P. Snider Wendy R. Sheldon Librarian Program Associate Susan Lange Program Associate/Program Assistant Statement of Purpose he Hewlett Foundation, incorporated as a private foundation in the State of California in 1966, was established by the Palo Alto industrialist William R. Hewlett, his late wife, Flora Lamson Hewlett, and their eldest son, Walter B. Hewlett. The Foundation's broad purpose, as stated in the articles of tincorporation, is to promote the well-being of mankind by sup porting selected activities of a charitable nature, as well as organi zations or institutions engaged in such activities. The Foundation concentrates its resources on activities in education, performing arts, population, environment, conflict resolution, family and community development, and U.S.-Latin American relations. Some subareas of interest to the Foundation are listed in the program descriptions that follow. Special projects outside of these broad areas may from time to time be approved by the Board of Directors. Although the Hewlett Foundation is a national founda tion, with no geographic limit stipulated in its charter, a proportion of disbursable funds has been earmarked for projects in the San Francisco Bay Area. The Foundation has a strong commitment to the voluntary, nonprofit sector. It will therefore assist efforts to improve the finan cial base and efficiency of organizations and institutions in this cat egory. Proposals that show promise of stimulating private philanthropy are particularly welcome. In its grant-making decisions as well as in its interests and activities, the Hewlett Foundation is wholly independent of the Hewlett-Packard Company and the Hewlett-Packard Company Foundation. For additional information and a list of grantees, please con sult the Foundation's website at www.hewlett.org. Contents Statement of Purpose Hi President's Statement vii Chairman's Statement ix Introduction to Programs 2 Conflict Resolution 3 Education 15 Environment 29 Family and Community Development 42 Performing Arts 53 Population 68 U.S.-Latin American Relations 83 Special Projects 92 Interprogram Initiatives 97 Summary of 1998 Authorizations and Payments 100 Advice to Applicants 101 Financial Statements 103 Index 109 President's Statement t hardly seems possible that my six and a half years of service to the William and Flora Hewlett Foundation are coming to a close on June 30,1999, when my retirement takes effect. These have been remarkable and satisfying years, as challeng ing and rewarding as they have been broadening and enjoyable. IThe learning curve has been steep, and I have been happy with that reality as my sense of our changing world is now both deeper and more intense. The work has enhanced my understanding of the seemingly intractable nature of the problems our world confronts, the richness of its many religions and cultures, the inter dependence of its economies, the vibrancy and courage of its peoples, and the thousands upon thousands of those in the nonprofit sector—talented, committed, and competent people— who confront these problems daily, on the ground, throughout the world. They are the ones who engage these issues where it counts; they are the ones who take the risks and live with the consequences; they are the ones who, mostly quietly and without recognition, seek the nuances of unresolved differences and, in illuminating them, uncover fresh and creative approaches to old but tenacious problems. It remains to this Foundation and others like it to help those in the nonprofit world do their job, and to do it well. This has always been the focus of the Hewlett Foundation: to seek out and support those organizations and institutions most effectively and skillfully engaged in addressing the issues that the Foundation believes are important. Our purposeful but nonprescriptive, multi-year, renew able, general support grants are the Hewlett Foundation's signature line in the charitable grant-making world. Our grants have been quiet, steady, evolutionary, and dependable. Our interests, while periodically reshaped, rearticulated, and rearranged, have also been remarkably consistent as well as innovative, pro-active, risk-taking, and creative. Care has been taken to maintain a low ratio of admin istrative costs to grant-making, and the staff and culture are decid edly collegial rather than bureaucratic. THE WILLIAM AND FLORA HEWLETT FOUNDATION vii PRESIDENT'S STATEMENT We have an uncommonly qualified and experienced set of offi cers and program leaders, helped and supported by an able and loyal staff. And the Foundation has been blessed over the years with well- prepared, conscientious, and knowledgeable directors whose efforts have been central to the character and course of the Foundation's work. I am greatly indebted to the Foundation's directors, officers, and staff for their steady and professional effort, for the leadership role they play in the philanthropic world, and for the cordiality and goodwill, whatever the problems and challenges. I cherish the privilege I have had of working with our founder, Bill Hewlett, and with Walter Hewlett, our Board's current chair man, and shall remember my years here with appreciation and grat itude for the opportunity to make a constructive difference in the world of philanthropy. DAVID PIERPONT GARDNER MAY 1999 Vlll THE WILLIAM AND FLORA HEWLETT FOUNDATION Chairmans Statement ineteen ninety-eight was an important year of transi tion for the Hewlett Foundation. David Pierpont Gardner informed the Foundation's Board in April 1998 of his intention to retire as president of the Foundation on June 30,1999. During the preceding eight months, the Foundation had been conducting an extensive review of its pro ngrams in light of anticipated growth in the Foundation's assets and its grant-making capacity. This internal process involved the Foundation's program officers, who looked at ways to reorganize and augment their own programs as well as exploring opportuni ties in new areas of interest, and the president and the Board, who reviewed the history of the Foundation and considered the impact that a larger size would have on the Foundation's grant making and its style of operation. With the announcement of David's intention to retire, the review process expanded to include the task of finding a new president. The Board decided to use this opportunity to reexamine the principles that have guided the Foundation over the past thirty years, a period that includes the leadership of the Foundation's founding donor and first chairman, William R. Hewlett, and its first president, Roger W Heyns. As part of the search process, the Board conducted meetings with over ninety of this nation's leaders in the business, academic, nonprofit, and government sectors with the purpose of seeking input and advice on topics ranging from the role, leader ship, and management of foundations in our society to issues spe cific to the Hewlett Foundation and our search for a new president. Those with whom we met generally agreed that foundations are making important contributions to our society, though they also expressed the opinion that foundations should and could be more responsive to ideas from outside their walls. Grantees, in particular, are reluctant to criticize their benefactors, and thus foundations do not often hear what grantees and others really think of their work. CHAIRMAN'S STATEMENT The members

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