Ford Foundation Annual Report 2002 Mission Statement 1 President’s Letter 2 Worldwide Offices 4 Board of Trustees 6 Officers 7 Committees of the Board 7 Staff 8 Program Approvals 13 Asset Building and Community Development 15 Grants and Projects, Fiscal Year 2002 Economic Development 18 Community and Resource Development 30 Human Development and Reproductive Health 48 Programwide 64 Program-Related Investments 65 Peace and Social Justice 67 Grants and Projects, Fiscal Year 2002 Human Rights and International Cooperation 70 Governance and Civil Society 92 Programwide 112 Knowledge, Creativity & Freedom 113 Grants and Projects, Fiscal Year 2002 Education, Knowledge and Religion 116 Media, Arts and Culture 132 Programwide 145 Foundationwide Actions 146 Good Neighbor Grants 148 Financial Review 151 Index 166 Guidelines for Grant Seekers 184 Communications inside back cover Mission Statement The Ford Foundation is a resource for innovative people and institutions worldwide. Our goals are to: Strengthen democratic values, Reduce poverty and injustice, Promote international cooperation and Advance human achievement. This has been our purpose for more than half a century. A fundamental challenge facing every society is to create political, economic and social systems that promote peace, human welfare and the sustainability of the environment on which life depends. We believe that the best way to meet this challenge is to encourage initiatives by those living and working closest to where problems are located; to promote collaboration among the nonprofit,govern- ment and business sectors, and to ensure participation by men and women from diverse communities and at all levels of society. In our experience, such activities help build common understanding, enhance excellence, enable people to improve their lives and reinforce their commitment to society. The Ford Foundation is one source of support for these activities. We work mainly by making grants or loans that build knowledge and strengthen organizations and networks. Since our financial resources are modest in comparison with societal needs, we focus on a limited number of problem areas and program strategies within our broad goals. Founded in 1936, the foundation operated as a local philanthropy in the state of Michigan until 1950, when it expanded to become a national and international foundation. Since its inception it has been an independent,nonprofit,non-govern- mental organization. It has provided more than $12 billion for grants, projects and loans. These funds derive from an investment portfolio that began with gifts and bequests of Ford Motor Company stock by Henry and Edsel Ford. The foundation no longer owns Ford Motor Company stock,and its diversified portfolio is managed to provide a perpetual source of support for the foundation’s programs and operations. The Trustees of the foundation set policy and delegate authority to the president and senior staff for the foundation’s grant making and operations. Program officers in the United States, Africa, the Middle East, Asia, Latin America and Russia explore opportunities to pursue the foundation’s goals, formulate strategies and recommend proposals for funding. President’s Letter In the pages that follow,readers will find basic information about the Ford Foundation—who we are (our board of trustees and our staff), what we do (our grant and loan programs), and how we manage our finances. In prior years, our annual reports also contained essays on program topics by several of the foundation’s officers. These will now appear in our hard-copy and Web-based magazine, FFR, which can be found at www.fordfound.org. A few comments on the foundation in 2002 merit special note in this introduction. David Kearns, former C.E.O. of the Xerox Corporation, retired from the board of trustees. He served with distinction from 1990 to 2002,interrupted in 1991 for two years when he became Deputy Secretary of the U.S. Department of Education. David brought to the foundation wisdom gained from years of leadership in business, government and the nonprofit sector, and a passionate interest in quality education for all. Afsaneh Beschloss, C.E.O. of Carlyle Asset Management Group, was appointed a trustee this year, bringing us valuable experience in investment and international development. In 2002 we reorganized our work on Reproductive Health and Human Sexuality. We retain a strong ongoing commitment to this work, which is now located in each of our three large program groups. Work on reproductive and sexual rights, H.I.V./AIDS, and the reproductive health movement is now in our Human Rights program group. Grants concerned with building a strong knowledge base about healthy human sexual development are located in our Education,Sexuality, Religion program along with other academic research and work on the social role of religion and minority and gender studies. And our Assets program houses grant making concerned with youth development, including healthy sexuality. These shifts reflect the belief that our work in reproductive health and sexuality should be developed in a close relationship to related fields of research and practice. Finally, while the Foundation’s net assets declined from $10.5 billion in 2001 to $9.0 billion at the end of 2002,we maintained the core program budget at the 2001 level. We did so by reducing our set-aside for large,special purpose one-time grants. At the end of the year,we had paid out 6 percent of average assets,or $81.4 million above the level required by law. Some 16 percent of our grantees in 2002 were receiving Ford support for the first time, bringing us fresh ideas and new partnerships. At the same time,recognizing that partnerships with all our 2 grantees often involve multiyear strategies for change, 46 percent of our grants were for multiyear support,between 2 and 10 years. Approximately 15 percent (representing 23 percent of grant dollars) were for general support rather than project grants. We hope you find this report a helpful source of information about the foundation. Susan V.Berresford President FORD FOUNDATION ANNUAL REPORT 2002 3 { NEWYORK MEXICOCITY • LAGOS • RIODEJANEIRO • SANTIAGO • United States Africa and Middle East Headquarters EASTERNAFRICA 320 East 43rd Street P.O. Box 41081 New York,New York 10017 Nairobi, Republic of Kenya MIDDLEEASTAND NORTHAFRICA P.O. Box 2344 Ford Foundation Offices Cairo, Arab Republic of Egypt SOUTHERNAFRICA P.O. Box 30953 Braamfontein 2017 Johannesburg, South Africa MOSCOW • BEIJING • CAIRO• NEWDELHI • HANOI • MANILA • NAIROBI • JAKARTA • JOHANNESBURG • WESTAFRICA INDONESIA Latin America and ANDEANREGIONAND P.O. Box 2368 P.O. Box 2030 Caribbean SOUTHERNCONE Lagos, Nigeria Jakarta 10020, Indonesia Mariano Sánchez BRAZIL Fontecilla 310 PHILIPPINES Praia do Flamengo 154, Piso 14 8° andar Asia Makati Central Post Office Las Condes 22207-900 Rio de Janeiro, R.J. P.O. Box 1936 Santiago, Chile CHINA Brazil International Club 1259 Makati City Philippines Office Building MEXICOAND Russia Suite 501 CENTRALAMERICA VIETNAMANDTHAILAND Pushkin Plaza Jianguomenwai Dajie No. 21 Apartado 105-71 Suites 1502-1504 Tverskaya Ulitsa 16/2, Beijing, China 100020 11560 Mexico, D.F.Mexico 15th Floor 5th floor INDIA,NEPALAND Vietcombank Tower 103009 Moscow, Russia 198 Tran Quang Khai Street SRILANKA Hoan Kiem District 55 Lodi Estate Hanoi,Vietnam New Delhi, India 110 003 Board of Trustees Paul A. Allaire Wilmot G. James Deval L. Patrick Executive Director Executive Vice President and Chair of the Board Social Cohesion and General Counsel Former Chairman and Chief International Research The Coca-Cola Company Executive Officer Programme Atlanta, Georgia Xerox Corporation Human Sciences Research Stamford, Connecticut Council Ratan N.Tata Chairman Susan V.Berresford Cape Town, South Africa Tata Industries Limited President Yolanda Kakabadse Mumbai, India The Ford Foundation Executive President New York,New York Fundación Futuro Carl B.Weisbrod Latinoamericano President Alain J.P.Belda Quito, Ecuador Alliance for Downtown New Chairman and Chief Executive York Inc. Officer David T. Kearns New York,New York Alcoa Inc. Former Chairman and Chief New York,New York Executive Officer W. Richard West Xerox Corporation Director Afsaneh M. Beschloss Stamford, Connecticut The National Museum of the Chief Executive Officer and (Term Expired September 27, American Indian President 2002) Washington, D.C. Carlyle Asset Management Group Wilma P.Mankiller Washington, D.C. Former Principal Chief (Term Began May 22, 2002) Cherokee Nation Park Hill, Oklahoma Anke A. Ehrhardt Director Richard Moe HIV Center for Clinical and President Behavioral Studies National Trust for Historic New York State Psychiatric Preservation Institute Washington, D.C. Professor of Medical Psychology in Psychiatry Yolanda T. Moses Columbia University President New York,New York American Association for Higher Education Kathryn S. Fuller Washington, D.C. President and Chief Executive Officer Luis G. Nogales World Wildlife Fund Managing Partner Washington, D.C. Nogales Investors, LLC Los Angeles, California Ford Foundation Trustees and Officers Officers Committees of the Board of Trustees Susan V.Berresford Audit and Management Proxy President Kathryn S. Fuller, Chair Richard Moe, Chair Paul A. Allaire Paul A. Allaire Barron M.Tenny Executive Vice President, Anke A. Ehrhardt Anke A. Ehrhardt Secretary, and General Wilma P.Mankiller Kathryn S. Fuller Counsel Richard Moe Wilmot G. James Deval L. Patrick Luis G. Nogales Barry D. Gaberman Ratan N.Tata Carl B.Weisbrod Senior Vice President Carl B.Weisbrod Alexander Wilde Asset Building and Vice President for Executive Community Development Communications Paul A. Allaire, Chair Wilma P.Mankiller, Chair Susan V.Berresford Paul A. Allaire Linda B. Strumpf Kathryn S. Fuller Anke A. Ehrhardt Vice President and Chief Richard Moe Yolanda Kakabadse Investment Officer Carl B.Weisbrod Ratan N.Tata Melvin L. Oliver Vice President, Asset Building Investment Knowledge, Creativity and and Community Carl B.Weisbrod, Chair Freedom Development Paul A. Allaire Wilmot G. James, Chair Alain J.P.Belda Bradford K. Smith Alain J.P.Belda Vice President, Peace and Susan V.Berresford Afsaneh M.