The year 2005 was a significant year for our Foundation.  During the course of the year, our Foundation made 248 grants and gifts totaling almost $3.8 million. These grants, which range through 20 separate program areas, are detailed in the "2005 Grants" section. Since our inception in 1987, the Foundation has made over 2,000 grants and gifts and distributed over $22.2 million.

     Our Foundation's net equity decreased $2.0 million in 2005, ending the year at $82.1million. Substantially all of this decrease was driven by grants which exceeded appreciation in the market value of our investments.

    The Council on Foundations published nine Stewardship Principles for family foundations, and seventy-three Best Practice Options under these Principles. These aspirational Principles and Options were designed to increase the accountability of family foundations and to "raise the bar on our own practices even beyond what the law requires." I am pleased to report that our Foundation currently complies with all nine of the Stewardship Principles, and almost 80% of the Best Practice Options. We are currently working on the remaining Options, including developing a "Conflict of Interest" policy, a "Record Retention" policy, a "Whistle Blower" policy, and a "Peer Consulting" project.

     A major project initiated by the Trustees in 2005 was the Continuity and Succession Planning project. The outcome of this project will determine what kind of Foundation we will be in the future; what knowledge, experience and skills will be required of our Foundation's next CEO; what process will be used to identify our next CEO; and who that next CEO will be. The Continuity portion of this project is expected to be completed in 2006.

     Our Trustees have again increased the size of our grantmaking budget, from $3.8 million in 2005 to $4.2 million in 2006. We are also pleased that twenty-three of our O'Neill family members and spouses, spanning two generations, are now actively participating in our grantmaking activities.  

     As we work through the year 2006, our Foundation will diligently continue in its efforts to become a better philanthropic investor focused on outcomes.

    
April 5, 2006                                    William J. O'Neill, Jr.
                                                           President