2001 KF Annual Report

KNIGHT’S SEPT. 11TH FUND SUPPORTED 246 SERVICE PROVIDERS IN 26 COMMUNITIES: LONG BEACH DAY NURSERY • SEXUAL ASSAULT CRISIS AGENCY • LOAVES AND FISHES • COMMUNITY PARTNERSHIP FOR HOMELESS • DAILY BREAD FOOD BANK • FARM SHARE • S.O.S. HEALTH CARE • PHILADELPHIA COMMITTEE FOR THE HOMELESS • THE VILLAGE OF ARTS AND HUMANITIES • ASIAN AMERICANS FOR COMMUNITY INVOLVEMENT OF SANTA CLARA COUNTY • IMMIGRANT RESETTLEMENT AND CULTURAL CENTER • PLANNED PARENTHOOD MAR MONTE • SUPPORT NETWORK FOR BATTERED WOMEN • CHILDREN’S HOME SOCIETY OF FLORIDA (NORTH CENTRAL DIVISION) • MOTHERS IN CRISIS • SAFE HARBOR • BATTERED WOMEN’S SHELTER • GOOD NEIGHBORS • SECOND HARVEST FOOD BANK OF SANTA CLARA AND SAN MATEO COUNTIES • THE SALVATION ARMY (MILLEDGEVILLE) • GULF COAST WOMEN’S CENTER FOR NONVIOLENCE • AID TO VICTIMS OF DOMESTIC ABUSE • COMMITTEE FOR DIGNITY AND FAIRNESS FOR THE HOMELESS HOUSING DEVELOPMENT • BOULDER COUNTY SAFEHOUSE • LONGMONT COALITION FOR WOMEN IN CRISIS • MEALS ON WHEELS PLUS OF MANATEE • THE SALVATION ARMY (GULFPORT) • INFO LINE • CRISIS ASSISTANCE MINISTRY •THE FAMILY CENTER • HARVEST HOPE FOOD BANK • SISTERCARE • OPEN DOOR COMMUNITY HOUSE • SCAN • ST. VINCENT DE PAUL OF SAN MATEO • ST. PETER’S HOME FOR BOYS • ARAB COMMUNITY CENTER FOR ECONOMIC AND SOCIAL SERVICES • FOCUS: HOPE • ARAB-CHALDEAN COMMUNITY SOCIAL SERVICES COUNCIL • BOYS & GIRLS CLUBS OF SUMMIT COUNTY • AIDS TASK FORCE • DETROIT RESCUE MISSION MINISTRIES • FORGOTTEN HARVEST • HAVEN • THE SALVATION ARMY (AKRON) • BIG BROTHERS BIG SISTERS OF GREATER MIAMI • CATHOLIC CHARITIES • CENTER AGAINST SEXUAL AND DOMESTIC ABUSE • TURNSTONE CENTER FOR DISABLED CHILDREN & ADULTS • CASA OF ABERDEEN FIFTH JUDICIAL CIRCUIT • MANATEE CHILDREN’S SERVICES • COMMUNITY VIOLENCE INTERVENTION CENTER • AKRON COMMUNITY SERVICE CENTER & URBAN LEAGUE • AKRON-CANTON REGIONAL FOODBANK • CATHOLIC SOCIAL SERVICES OF SUMMIT COUNTY • HABITAT FOR HUMANITY OF GREATER AKRON • HAVEN OF REST MINISTRIES • INTERVAL BROTHERHOOD HOMES • LET’S GROW AKRON • OPPORTUNITY PARISH ECUMENICAL NEIGHBORHOOD MINISTRY • SUMMIT COUNTY COMMUNITY DRUG BOARD • YOUNG MEN’S CHRISTIAN ASSOCIATION OF AKRON • BOYS AND GIRLS CLUBS OF THE GULF COAST • CATHOLIC SOCIAL & COMMUNITY SERVICES • MENTAL HEALTH ASSOCIATION OF MISSISSIPPI • MOORE COMMUNITY HOUSE • THE SALVATION ARMY (BILOXI) • SOUTH MISSISSIPPI 2001 ANNUAL REPORT ★ NEW CRISES, ENDURING COMMITMENTS EXCHANGE CLUBS CHILD ABUSE PREVENTION CENTER CHARLOTTE CENTER FOR URBAN MINISTRY • THE LORD’S PLACE AND FAMILY SHELTER WEST PALM BEACH • CHILDREN’S HAVEN & ADULT COMMUNITY SERVICES • THE CENTER FOR FAMILY SERVICES OF PALM BEACH COUNTY • THE SALVATION ARMY • MANATEE OPPORTUNITY COUNCIL • ROTACARE BAY AREA • THE CENTER FOR INFORMATION & CRISIS SERVICES • RUTH RALES JEWISH FAMILY SERVICE • ST. PAUL WESTERN PALM BEACH COUNTY FOOD DISTRIBUTION CENTER • BOULDER SHELTER FOR THE HOMELESS • EMERGENCY FAMILY ASSISTANCE ASSOCIATION • THE INN BETWEEN OF LONGMONT • HOPE FAMILY SERVICES • CABARRUS COOPERATIVE CHRISTIAN MINISTRY • CATHOLIC SOCIAL SERVICES OF THE DIOCESE OF CHARLOTTE • CHARLOTTE RESCUE MISSION • COMMUNITY CULINARY SCHOOL OF CHARLOTTE •CUP INC. • DAY SHELTER • GOODWILL INDUSTRIES OF SOUTHERN PIEDMONT • PILGRIMS’ INN •THE SALVATION ARMY (ABERDEEN) • ACCESS INC. • SECOND HARVEST/METROLINA FOOD BANK • TURNING POINT OF UNION COUNTY • UNITED FAMILY SERVICES • FAMILY SERVICE CENTER OF S.C. • GOODWILL INDUSTRIES • COLUMBUS BAPTIST ASSOCIATION • HOUSE OF RESTORATION • HOUSE OF T.I.M.E. • SECOND HARVEST FOOD BANK OF THE CHATTAHOOCHEE VALLEY • UPTOWN OUTREACH FOOD PANTRY • VALLEY RESCUE MISSION • BOYSVILLE OF MICHIGAN • COALITION ON TEMPORARY SHELTER • COVENANT HOUSE MICHIGAN • EASTSIDE EMERGENCY CENTER • FOOD BANK OF OAKLAND COUNTY • VINCENT HOUSE • GLEANERS COMMUNITY FOOD BANK • GOODWILL INDUSTRIES OF GREATER DETROIT • HELPSOURCE • JEWISH FAMILY SERVICE • L.I.F.T. WOMEN’S RESOURCE CENTER • LIGHTHOUSE EMERGENCY SERVICES • MACOMB COUNTY ROTATING EMERGENCY SHELTER TEAM • OZONE HOUSE • SOCIETY OF ST. VINCENT DE PAUL OF THE CITY OF DETROIT • SOS COMMUNITY SERVICES • STARFISH FAMILY SERVICES • THINK DETROIT

Statement of Purpose Table of Contents he John S. and James L. Knight T From the Chairman 2 Foundation was established in 1950 as a private foundation From the President 4 independent of the Knight brothers’ 2001 Programs and Features 6 newspaper enterprises. It is dedicated to furthering their ideals of service to Community Partners 6 community, to the highest standards Journalism Initiatives 18 of journalistic excellence and to the defense of a free press. 26 National Venture Fund In both their publishing and phil- Knight Commission on Intercollegiate Athletics 31 anthropic undertakings, the Knight brothers shared a broad vision and History 33 uncommon devotion to the common welfare. It is those ideals, as well as Trustees and Officers 38 their philanthropic interests, to which Staff 40 the foundation remains faithful. To heighten the impact of our grant Grants 42 making, Knight Foundation’s trustees Index of Grants 43 have elected to focus on two signature programs, Journalism Initiatives and Sept. 11 Recipients 57 Community Partners, each with its own eligibility requirements. A third Investment Report 62 program, the National Venture Fund, Auditors’ Report 63 supports innovative opportunities and initiatives at the national level that Financial Information 64 relate directly or indirectly to Knight’s work in its 26 communities. Letter of Inquiry 70 In a rapidly changing world, the Production Credits 71 foundation also remains flexible enough to respond to unique challenges, 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 continues to be of paramount importance.

‘Crises refine life. In them you discover what you are.’ – Allan K. Chalmers, author and civil rights activist Page 4 Page 6 Page 27 Page 20 he global community has shared a heightened sense that everything seems far T more serious since the terrorist attacks of Sept. 11. It was a historic moment for the working media and our journalism partners, a chance to “reclaim and reassert the best that journalism has to offer,” says a key Knight adviser. The 26 Knight communities reflected a nation dealing with the secondary victims of the attacks – needy people coping with the economic shock, making do with even less. The 246 service providers benefiting from Knight’s $10 million Sept. 11 Fund can, and will, help. The foundation’s enduring commitment to those 26 communities through a revamped approach to funding took long strides in 2001, forging promising partnerships in such civic laboratories as Central Long Beach, downtown Charlotte, the “Grand Cities” region and the Beall’s Hill neighborhood in Macon. 2001: A year of refinement and discovery. 2001 ANNUAL REPORT 1

FROM CHAIRMAN THE New Crises, Enduring Commitments n this space last year, you read about ations with these places and the field of I a new strategic plan here at the John journalism. S. and James L. Knight Foundation. As the Community Partners Program The plan suggests that the founda- has developed, we’ve seen the new advi- tion’s approach to grant making ought sory committees, steeped in the nuance to be as holistic as our emergency of local conditions, engaged in vigor- response was in Miami after 1992’s ous discussions of complex issues. Hurricane Andrew and in Grand Forks We’ve learned along with them that set- after the ’97 Red River flood. ting priorities is difficult. Their mem- Back then, my fellow trustees and I bers understand they cannot possibly heard and saw how such acts of nature have an impact on every community galvanized people and made them feel need and opportunity, certainly not W. Gerald Austen, M.D. more connected to their communities. with the limited resources of one foun- Following both catastrophes, Knight’s dation. They have figured out they can we’ve shared a heightened national trustees and staff responded to the have their greatest impact by concen- sense that everything – late-night talk communities’ needs and committed trating on just a few highly specific show hosts and major-league baseball significant funding and other resources. needs and by taking multiple approach- included – seems more serious, sober Behind such leaders as Miami’s Alvah es to addressing them. As Maidenberg and purposeful. America’s wartime cir- H. Chapman Jr. and Grand Forks’ Mike points out in his article on page 14, cumstances and economic recession Maidenberg, we found ourselves con- Knight’s promise of partnership, re- have made it absolutely clear that the necting to the energy and passion of search and resources has changed the stakes have been raised. Collectively, we communities working together to way people in the Grand Forks area are determined to make our labors, our rebuild, to transform themselves into think about their region. time and our commitments more something better than they were before We shared many wonderful experi- meaningful than ever before. the crisis. We concentrated on projects ences in 2001. In June, Knight Founda- At Knight Foundation, a history of that would sharpen the focus and tion’s trustees concluded an 18-month responding to crises combines with a heighten the impact of our grants. We observation of our 50th anniversary by strategic recommitment to our 26 joined with other funders to help the gathering in Miami with a great many communities, giving clear direction to communities identify what matters friends and funding partners. We chose grant making. We believe our best most. We demonstrated long-term com- that night to demonstrate our new chance to succeed is by helping commitment. holistic approach to funding. Hodding munities work toward their own defi- We have incorporated these values Carter and I described our newly fo- nitions of community success over the as we’ve developed a new Community cused funding priorities and how the long haul. Partners Program and a new National foundation intended to work more Knight’s $10 million Sept. 11 com- Venture Fund, and in shaping our Jour- directly with the recipients of our mitment is helping nonprofit service nalism Initiatives program. grants. While we made a total of 55 providers in our communities to re- We remain busily involved in a care- grants in all of our primary funding bound and serve their citizens caught in ful rollout of the Community Partners areas, more than half of the nearly $24 a world of dire need. The fund demon- Program, in which local advisory com- million in awards we announced that strates that at such times of stress and mittees help select community priori- evening target large-scale community struggle, the foundations of this counties and the measurable outcomes that development. Much of it is directed to try, blessed by resources however finite, address them. In journalism, Knight’s Overtown, Miami’s historically black can and must step up and give more. funding continues to focus on journal- downtown. Hodding put it this way: This crisis may pass, but others ism of excellence, press freedom and “Effective community development is loom. Like those that came before, they diversity. Though anecdotal, reports comprehensive, continuous and collab- become opportunities for discovery. from the field have confirmed our orative.” Regardless, ours is a sustained commit- belief that we are on the right path with The year also saw the final report of ment to Knight communities and to these approaches. the reconstituted Knight Foundation journalism of excellence. We intend to Since the horrific events of Sept. 11, Commission on Intercollegiate Athle- take advantage of our enduring associ- 2 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

FROM CHAIRMAN THE tics (see page 33), following the origi- community in June 2000. nal panel’s three seminal reports in the Despite the weight of the past year’s 1990s calling for reform of a system events, we’re optimistic about Knight spiraling out of control. The Knight Foundation’s new direction and encour- Commission found that despite con- aged by the energy directed to our pro- siderable progress, the chasm between grams. We see it in play in the rollout of higher education’s ideals and big-time the Community Partners Program as college sports has widened. The com- advisory committee members are chal- Alvah H. Chapman Jr. John D. Ong mission’s report inspired headlines and lenging conventional wisdom, drilling editorial praise for raising the issues down to fundamentals. Our journalism again, including a strong recommenda- program officers are gathering together Review Committee – our version of an tion encouraging big-time football and groups with common interests in the appropriations committee – since 1986, basketball programs to graduate more field, and the conversations are leading and has served as its chairman since than 50 percent of their student ath- to new collaborations and new net- 1994. Four times a year, Alvah has pre- letes by 2007. We will watch the educa- works. Experts in our funding interests sented to our board a description of tion and sports community with inter- are visiting the 26 Knight communities and recommendation on every major est as they move together toward mul- during grant development and are grant allocation we’ve made. He also tilateral reform. We also thank co- introducing new models for what guided the development of a stable chairs William Friday, president emeri- works, expanding local horizons. We grant-making plan that enabled Knight tus of the University of North Carolina, believe that better grants begin with a Foundation to increase our giving and the Rev. Theodore Hesburgh, pres- determination to see the whole picture gradually over time without the violent ident emeritus of the University of at the front end. swings suffered by some other founda- Notre Dame, and all of the commis- The September attacks caution us to tions in an up-and-down stock market. sioners for their sustained leadership. never take anything for granted. These He has been a wise leader, a sensible 2001 was a harsh year economically events remind us that a new crisis, no voice and a moral compass for us. for just about everyone, given the real- matter how unimaginable, is never far In late February 2002, Trustee John ity of an advancing recession made from tomorrow’s headlines. Our next D. Ong presented his credentials to worse by the impact of Sept. 11. Like tragic episode may be an act of God or King Harald in Oslo as he became the many other institutional investors, our man, a fleeting instance or a prolonged U.S. ambassador to Norway. Since join- asset base suffered, though at a com- affair, of international concern or neigh- ing us in June 1995, John Ong has pro- paratively moderate rate. Thanks to borhood impact. Regardless, Knight vided leadership and direction during a investment strategies overseen by Foundation is committed to doing period of intense staff growth, serving Trustee Gordon E. Heffern and his everything we can to help. as chairman of our Administrative and Finance Committee, and excellent work Human Resources and Pension Plan by the investment staff, we closed out Administrative committees. The chair- the year at $1.9 billion, down from our man emeritus of BFGoodrich played all-time high of $2.2 billion. It allowed an important role in helping us devel- us to approve $86.4 million in 319 new W. Gerald Austen, M.D. op a slate of grants for Akron as we grants in 2001. Chairman launched our anniversary year in that We wish two fellow trustees well as they depart. Alvah Chapman brought 31 years of The Year in Review Jan. 1, 2001 – Dec. 31, 2001 exceptional service to the foundation to a close as he left the board in March Assets: $1.9 billion 2002. Throughout those years he has Grants paid out: $85.0 million played a key role in developing the Proposals received: 1,064 foundation’s visions and goals and the New grants approved: $86.4 million (319 grants) strategies to achieve them successfully. Average grant size: $270,950 He has been a member of the Grants 2001 ANNUAL REPORT 3

FROM PRESIDENT THE Ensuring Journalism’s Essential Role ach of us knows where and how It is a function that no government, E the horrifying news reached us on whatever its ideology or form, actually Sept. 11. That devastating day is welcomes, but it lies at the root of the branded into the national conscious- First Amendment’s guarantee of press ness in a way previously reserved for freedom. In times of war, it is a right the attack on Pearl Harbor on Dec. 7, every government reflexively seeks to 1941, and the assassination of President curtail, sometimes in justifiable ways, John F. Kennedy on Nov. 22, 1963. frequently in unacceptable ways and However each of us learned of the occasionally in reprehensible ways. barbaric act of mass murder that lev- This, too, is written by someone eled the World Trade Center, we also who, as a State Department spokesman know where we turned thereafter: to in a time of trouble, relearned a time- Hodding Carter III the news media. In those anxious, pan- less reality: Governments, democratic yearlong courses of university study, icky hours and then days after the twin or not, are not in the truth business. weeklong seminars and two-day short towers collapsed in pyramids of rubble They are in the governance business, courses. Knight Foundation has en- and death, television, newspapers, radio the policy implementation business. dowed 16 chairs at universities from and the Internet were our informants, None should lie, save in the most Arizona to Florida, Michigan to Mary- guides and alter egos, asking the ques- exceptional circumstances, usually in land, North Carolina to Kansas to put tions we wanted asked, interpreting the wartime. As a matter of fact, decent distinguished working journalists in answers and separating the wheat from ones do not routinely, or even fre- close touch with those who hope to the chaff with impressive – and expen- quently, lie. But it can be asserted with- become journalists. We have invested sive – professionalism. We were re-edu- out qualification that all deliberately well over $20 million in organizations cated in the wisdom of the nation’s withhold information that might polit- working overseas to train reporters, founders, who placed a premium on a ically embarrass a president, call into managers and editors in newly free or free press and free speech not merely question aspects of policy or under- newly democratic countries, to encour- with lip service but within a powerful mine the official version of reality, for- age institutionalization of press free- Bill of Rights. eign or domestic. dom, and to seek justice when news Mine is not the observation of a Against that reality, the press has an persons are persecuted or killed. neutral observer. Having spent much obligation to act as surrogate for the Increasingly, too, Knight has under- of my life in the news business, my people, asking the hard questions, dig- written programs to supplement and pride in my old profession and belief in ging beyond the surface to get at the deepen the work of news organizations its central role in this democratic facts, questioning the official line. It is seeking to beat back excessive govern- republic were dramatically rekindled not always a popular task, particularly ment secrecy, improve the mass media’s by its post-attack performance. More in times such as these when the nation inadequate coverage of foreign affairs, to the point of this report, the post- is threatened and the natural public and train overseas reporters to recog- attack coverage reinforced my certainty instinct is to rally behind the govern- nize gross violations of the rules of war that Knight Foundation’s long concern ment. But history shows repeatedly when they see them. Knight-supported with press performance and press free- that to abandon that task is to weaken programs train investigative reporters, dom has and does make sense in ways the foundations of a free society. act as the major journalistic users of that affect the functioning of our Ironically, recent history also demon- the nation’s Freedom of Information democracy – and thus each of our com- strates that presidencies that relied Act and publish book-length studies of munities – no less than of the media. most on secrecy and the manipulation governmental corruption and political The foundation allocates up to 25 of information were almost invariably influence-peddling. percent of its grants every year to this themselves fatally weakened by the It cannot be emphasized enough general area. As a result, Knight is the exercise. that the press has an absolute obliga- largest philanthropic funder of jour- Some 30 years ago, a great Yale Law tion, no less than the right, to monitor nalism-related organizations, causes School professor who was a legal con- government performance whether in and programs within the United States. servative wrote something in the con- times of stress or times of tranquillity. Among many other things, we support text of the Pentagon Papers case that 4 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

FROM PRESIDENT THE reverberates today. As Alexander Bickel the same ideals into action, whatever put it: “The press’ chief responsibility is the political climate, at home and to play its role in the contest (of gov- abroad. Like them, we are certain that ernment and press), for it is the contest the health of the nation and the world that serves the interest of society as a depend on doing no less. The new twi- whole.” Or, as the great Soviet dissident light struggle in which the nation finds and Nobel Laureate, Alexander Solzhenit- itself has already claimed thousands of syn, once wrote in a letter to the gov- lives and two monumental buildings, ernment-toadying Writers Union of the symbols of our economic might. It Russian Republic: cannot be allowed to lay waste the Travelers at Singapore’s Changi International “Publicity and openness, honest and nation’s most fundamental values as Airport watch CNBC’s live coverage Sept. 11 of the collapse of the World Trade Center. complete … that is the prime condition well. for the health of every society. The man Jack Knight, speaking of his beloved who does not want publicity and open- the Vietnam War when he decried the newspaper business, put it clearly and ness for his Fatherland does not want American government’s tendency “to directly: “We must report the world as to cleanse it of its diseases, but to drive smother the voices of dissent in the flag it is and not as we would like it to be.” them inside, so they may rot there.” of patriotism.” As stewards of his John S. Knight knew all this in his money and ideals, and those of James bones and practiced it as a journalist L. Knight, his newspaperman brother, throughout his career, most notably we at Knight Foundation continue to Hodding Carter III during his long years of opposition to support those who are willing to put President and CEO People make their way amid debris near the World Trade Center in New York Sept. 11 after the collapse of the twin 110-story towers. 2001 ANNUAL REPORT 5

A COMMUNITY’S PERSPECTIVE Long Beach 90806: An American Microcosm This mural by Elliott Pinkney, Together We Dance, demonstrates the ethnic blend of the 90806 ZIP code in Long Beach. A portion of Little Phnom Penh – the largest Cambodian community outside Southeast Asia – falls within its boundaries. The makeup of ethnic subgroups has retail space, 350 residential units, and a 120- The Long Beach Community Advisory Commit- changed as well. Twenty-five years ago, Long room hotel. tee was the first of Knight’s 26 local advisory Beach had a very small Cambodian popula- These developments are significant for a boards to recommend its priorities for the tion; now it has the largest Cambodian com- city that in the early 1990s lost one of its Community Partners Program. After much delib- munity – called Little Phnom Penh – outside largest employers, the U.S. Navy, as a result eration, the committee decided to narrow its Southeast Asia. Many of these residents were of the military base closings that occurred focus to improving school readiness for chil- admitted into the United States as refugees as nationwide. “We had all our eggs in one bas- dren, with an emphasis on the children and a result of the four-year holocaust of the ket,” said Mayor Beverly O’Neill recently, families living in the 90806 ZIP code. Khmer Rouge in the 1970s. referring to the Navy’s departure. “We have Considering the diverse needs of the 462,000 All of these trends have made Long Beach, probably changed more ... than any other city residents of Long Beach, why is the commit- according to Mayor O’Neill, “the most diverse in the United States.” tee emphasizing school readiness? And why city” in the United States, a contention sup- But as important as economic redevelop- 90806? ported by the balance among ethnic popula- ment has been for Long Beach during the past tions. City residents embrace over 40 cultures two decades, the city’s demographic changes The city of Long Beach, nestled along the and speak more than 60 languages. have been perhaps even more profound. In southeast shore of Los Angeles County, is a Nowhere are these transformations more 1980, non-Hispanic whites made up almost city on the move. A new Aquarium of the apparent than in ZIP code 90806, an area 70 percent of the total population. By 1990 Pacific and a freshly minted Convention & known as Central Long Beach. Stretching they declined to less than half the overall pop- Entertainment Center now overlook the shore- roughly from Pacific Coast Highway on the ulation. Today they make up less than 35 per- line, along with several glittery hotels. A few south to Spring Street on the north, 90806 is cent. Meanwhile, the number of Hispanics blocks away in downtown, years of redevel- a microcosm of diversity. There you can find has tripled over the last two decades, so that opment spending are finally having some suc- restaurants like the Working Wok a few doors they now make up about 36 percent of the cess rejuvenating lower Pine Street, a bustling down from the African American Gift Shop, overall population. Blacks account for about area with an Art Deco feel. City Place, a $75 and Hong Kong Express Donuts catercorner 15 percent and Asian-Americans for about 12 million development under way in the heart of ▲ from El Carnival Market. percent. downtown, will add 454,000 square feet of 6 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

COMMUNITY PARTNERS Taking Shape One Day at a Time t’s Feb. 14, 2002. Valentine’s Day. mittee members who will recom- How Race is Lived in America – to the I Across America, Knight Foundation’s mend priorities for funding and Charlotte committee. The members new Community Partners Program strategies for achieving measurable have said that race relations is an hits the ground running as a typical day results in the culturally diverse and important local issue, one worthy of begins: complex southeast Michigan region. Knight’s support, and they wish to ➢ In Miami, fellow program director improve their understanding. She ➢ In Biloxi, Knight’s new Community Gary Burger updates a constantly works on a community investment Advisory Committee assembles for changing color-coded chart that plan – a road map for how she and its first official meeting. Led by pro- shows where his and Ervin’s troops the Charlotte committee will invest gram officer Alfredo Cruz and chair- are deployed as well as where each of in its priorities of improved school man Ricky Mathews, the committee Knight’s 26 communities stands in readiness, cleaner air and water, and – 10 representatives of businesses the three-year rollout of Community improved race relations. ➢ Liaison John Williams II arrives at and nonprofits in Biloxi, Gulfport Partners. He talks with his staff in and Pass Christian – discusses a the field about grant development San Jose International Airport from PowerPoint presentation explaining and setting priorities, reviews the his home base in Long Beach, a series the new program and the commit- resumes of candidates for three new of local interviews ahead of him in tee’s role in it. program liaison positions and re- what he calls a day of “early recon- ➢ In Detroit, program director Joe sponds to requests for information naissance.” On his list: nonprofit Ervin – 41 days on the job and from prospective funding partners. leaders who may turn out to be com- ➢ In Charlotte, liaison Susan Patterson already a veteran – gathers for a sim- munity partners working toward San ▲ ilar orientation with the dozen com- delivers two books – The Debt and Jose’s still-undetermined priorities. ▲ Downtown Los Angeles California Ave. Atlantic Ave. Orange Ave. Walnut Ave. Cherry Ave. Los Angeles River 405 Long Beach Airport ▲ Spring St. Anaheim Pine Ave. Willow St. 710 City of Signal Hill Hill St. Pacific Coast Highway Median household Maria Guadalupe Quintero and Rosa Suarez, on income is below ZIP Code 90806 scooter, play at an apartment building. 90806 $34,614 Long Beach, Calif. has the city’s highest density of households with Highest density of children under age 4. households with Downtown Long Beach, Queen Mary, San Pedro Bay children under 4 ▲ 2001 ANNUAL REPORT 7

A COMMUNITY’S PERSPECTIVE The King Kong Studio on East Anaheim Street in Central Long Beach shows its patriotism. are not literate in their native tongue, Khmer. Twenty-five years ago, 90806 was mostly black, about 18 percent Asian-American, and Many witnessed the murder of loved ones and African-American. But as other low-income about 14 percent non-Hispanic white. are reticent to place their trust in anyone they groups have sought the more affordable rents One of the challenges of this shift to a do not know personally. Compared with other of Central Long Beach, many blacks have moved more Hispanic and Asian-American popula- ethnic populations in Los Angeles County, up the economic ladder – mirroring much of the tion is the large number of households where Cambodians have the lowest per capita rest of Los Angeles County. English is not the first language. In addition, income, the highest poverty rate, and the “The heart and soul of the black communi- serious gang-related problems have arisen highest unemployment rate in the county. ty are still in the central district, but we’re not over the last decade, including street battles “In a very small area we’ve got a lot of the the majority community there anymore,” said between Latino and Cambodian gangs that challenges of urban communities across the Bill Barnes, the retired executive dean of Long have abated somewhat recently. ZIP code country,” said Jim Worsham, a local business- Beach City College, Central Long Beach 90806 has the highest percentage of female- man and chair of Knight’s Long Beach adviso- native, and member of Knight’s Community led, single-parent households in the city, and ry committee. Advisory Committee. Now that blacks are 33 percent of the area’s 44,763 residents Yet “90806 has a lot of things going for it,” making greater inroads into the middle class, received public assistance in 1998. he said. For instance, Long Beach City Col- Barnes said, “there’s really a lot of dispersal About a quarter of the Cambodian popula- lege enlivens the economic and educational across town.” tion of Long Beach lives in 90806, and these prospects of the community. Several medical Like the rest of Long Beach, 90806 has no residents – driven from their native country by centers and other major employers are locat- majority ethnic group, but Hispanics now a regime that openly killed those who were ed in Central Long Beach. And many communi- make up about 44 percent of the population educated – have unique needs. Many emi- ▲ ty nonprofits are headquartered in the area. there. About 21 percent of the residents are grated from very rural areas of Cambodia and 8 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

COMMUNITY PARTNERS (See more about Williams’ work as a two weeks away, but she’s sharing Community Partners team, the next liaison on page 17 and in the online updates with other funders, any of day looms as an important deadline version of this annual report at www. whom could become future collabo- for submitting local recommenda- knightfdn. org.) rators. tions for funding providers directly ➢ Liaison Julie Tarr arrives in Miami ➢ Meanwhile, John Bare, Knight’s serving the neediest people in on a flight from Philadelphia in ad- director of program development Knight communities – the goal of vance of two weeks of training, learn- and evaluation, is in Washington, the foundation’s $10 million Sept. 11 ing and research set aside for the along with Liz Sklaroff and Heidi Fund. whole Partners crew. At her working Rettig, two members of his team. A lunch, she’ll find out more about a priority for the day is finishing an This whirlwind day is a pretty good sophisticated public awareness cam- electronic tool kit that will provide snapshot of Knight Foundation’s new paign in South Florida targeting Knight communities with sum- and developing Community Partners early childhood development – an maries of tested and promising prac- Program. And it’s an indication of just area of direct relevance to Knight tices others have used to secure safe, how much has changed in our organi- committees in Philadelphia and State affordable housing for low-income zation and in the world we serve as a College. residents. Other meetings involve local funder. Based on a five-year strate- ➢ In Miami, liaison Suzette Prude similar summaries designed to help gic plan adopted by Knight trustees in attends a board meeting of a local communities boost arts participa- late 2000, the foundation’s fundamental funders’ association at mid-after- tion and ensure the positive devel- approach to grant making is being dra- noon. Her orientation session with opment of adolescents. matically reshaped, one typical Valen- ➢ And for each member of the ▲ the Miami advisory committee is tine’s Day at a time. A mural on Chestnut Avenue has a multicultural theme. One-third of the 44,763 residents of 90806 in Long Beach received public assistance in 1998. 2001 ANNUAL REPORT 9

A COMMUNITY’S PERSPECTIVE Daniel Melena plays outside an apartment on Chestnut Avenue. 90806 has the city’s highest percentage of female-led, single-parent households. It is these twin characteristics – high needs effective and affordable child care while the school readiness as its priority. combined with community resources – that parents are in class or working – and that’s “The most important time in a person’s life led Knight’s Community Advisory Committee where the Long Beach advisory committee is ages 0 to 5,” said Dr. Sue Stanley, chair of to zero in on 90806 as a densely populated, decided to step in. the Department of Family and Consumer diverse and well-defined community with Building on Knight Foundation’s emphasis Sciences at Cal State University, Long Beach. great opportunities. on outcomes, the committee felt “it would “It is extremely important that children are As an example of the needs and resources make sense to pick one area of extraordinary exposed to developmentally appropriate activ- in 90806, a workforce development initiative need and focus on that,” said Larry Allison, ities” at this early age. has brought together several funding organi- editor of the Long Beach Press-Telegram and a Based on the committee’s recommenda- zations – including Knight Foundation – and member of the advisory committee. The idea tions, Knight’s initial efforts in 90806 are like- nonprofit agencies to improve residents’ eco- is that by focusing on a specific need in a ly to include outreach to help home child-care nomic prospects in the ZIP code. The initia- well-defined geographic area, the committee providers include more learning activities for tive, building on welfare-to-work activities, will be better able to monitor the outcomes of the infants and toddlers under their care; test- provides low-income residents, most of its efforts over time. Given the specific needs ing whether stipends and other incentives can whom are single mothers who do not speak of the residents in 90806, the gaps in funding keep child-care professionals in the field; and English, with workforce training, English there currently, and recent research showing helping parents not fluent in English learn how classes, literacy skills and employment expe- the correlation of early childhood education to to engage their children in literacy activities. rience. But one piece that has been missing is later success, the committee centered on “The thinking is that if you can get young- 10 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

COMMUNITY PARTNERS We believe our best chance to suc- prospective funding partners, research viable choice.” ceed is by supporting Knight commu- ing local conditions, and developing The committees are recommending nities over the long haul as they work to grant proposals with them. Collective- funding priorities. Before the end of meet and measure their own definitions ly, the committees and staff and part- 2002, each advisory committee and its of community vitality. Our funding ners are inventing a way of operating as assigned liaison will have had at least interests remain closely tied to our a local funder unlike any national foun- one discussion of community priori- founders’ beliefs that our communities dation in America. ties, concentrating on just a few highly all have a stake in education, the well- While we expect the full rollout to specific needs and how Knight and our being of children and families, housing take three years, the Community Part- eventual partners, the grant recipients, and community development, eco- ners Program is well along in imple- can take multiple approaches to address- nomic development, the vitality of cul- menting the trustees’ vision. ing them. Updates on priorities are avail- tural life, and civic engagement and We’ve created Community Advisory able at www.knightfdn.org. positive human relations. Committees. From Philadelphia to San The discussions lead to fascinating Knight trustees intend to invest at Jose, we have established local commit- directions. Take State College, located least $300 million in the 26 Knight tees, each made up of community, busi- in Happy Valley, home of Penn State communities through 2005. Part of that ness and nonprofit leaders well aware of University and its steady supply of investment is human capital. We have local conditions and the need to set pri- intellect, employment, culture and dedicated eight liaison officers to work orities. services. “We have an embarrassment of in the 26 Knight communities. Residents One example: Bill Barnes, the retired riches,” admits Bill Jaffe, a retired man- may see them speak at the Rotary Club, executive dean of Long Beach City agement consultant. Meeting in the meet them at the local diner, get a call College, grew up in the Central Long pre-9/11 world of Sept. 6, committee from them as part of local research. Beach neighborhood where Knight is members agree theirs is an above-aver- Each liaison is an on-the-ground repre- concentrating its efforts in school readi- age place; identifying a consensus com- sentative of the foundation, working ness (see page 6). “We’ve got to make it munity priority isn’t obvious. ▲ closely with our committees, identifying work,” he says. “We don’t have any other Yet the discussion takes an impor- sters ready for school then they have a much better chance to negotiate the system,” said Barnes, who suggested that there’s also more at stake than schooling: “Education has always been the key to freedom and equality.” These projects are just under way, but the findings may prove useful to diverse communities beyond 90806. Central Long Beach, Barnes said, has “four major ethnic groups: Latino-American, Asian-American, blacks, and whites. We’ve got to make it work. We don’t have any other viable choice.” ★ Raul Olvera’s costume and pizza box attract passersby to the Long Beach outlet of La Pizza Loca, a chain catering to Hispanics. In 90806, 44 percent of residents are Hispanic. 2001 ANNUAL REPORT 11

A PARTNER’S PERSPECTIVE What’s Different About This Process? tion, the communities it serves, its potential partners and prospective grantees. I’m happy to live in Charlotte. According to the 2000 census, our fast-growing region is home to nearly 84,000 children under age 6. As the most populous county in the region, Mecklenburg is home to slightly more than 72 percent of them. Mecklenburg also faces the challenge of being home to more poor children than any other county in North Carolina. At state and local levels, we’ve seen significant public and private resources focused on maximizing the window of opportunity in children’s earliest years, from birth to 5, to prepare them for success in school and in life. The state’s Smart Start school readiness initiative and Charlotte-Mecklenburg Schools’ Bright Beginnings program for educationally at-risk 4-year-old children are heralded nationally. Major community funders and the local chamber of commerce are investing in early childhood initiatives. Despite this unprecedented support, the region still faces enormous challenges in ensuring the quality of learning for young children. It was welcome news, then, to learn from Susan that Knight Foundation’s Community Advisory Committee in Charlotte had identified school readiness as one of its local priorities. A few weeks later, Susan came to my office to listen to my perspectives on the topic. I shared my concern that the child-care system, which serves children from birth throughout their most critical brain development years, remains severely underfinanced at the same time public pre-kindergarten programs for that age group are attracting significant national, state and local investments. Unlike the public funding that supports school Child-care teacher Hermelinda Byron and center director Ruth Slim, back row, join Janet Singerman of systems, the child-care system’s financing is Child Care Resources, right, on the steps of a downtown Charlotte day care. With them are preschool- largely determined by what parents of young ers Billy Pickens, rear center; Adrian Cruz-Cordero, foreground; and Sona Suryedevara. children can afford. These parents are typically in their earliest earning years during their Janet Singerman is president of Child Care Although I knew something of the founda- children’s earliest learning years. Their ability Resources Inc., an agency that has worked for tion’s work in Charlotte and our agency had to pay rarely meets the cost of producing the nearly 20 years to improve the quality of early received a grant several years ago, I had not high quality child care that research has care and education resources for children and met Susan and didn’t quite understand her repeatedly shown positively affects children’s families in Mecklenburg, Union and Cabarrus new role as a community liaison. school readiness. counties in North Carolina. Although I’ve crafted proposals that Soon after our meeting, Susan called and secured multimillion-dollar funding commit- asked me to outline briefly a few promising It all began with an unexpected phone call ments, I had never experienced a program strategies to improve the school readiness of in October from Susan Patterson of Knight that raises to such high levels the concept and children in child-care settings. Although I did Foundation’s Community Partners Program. practice of partnering – among the founda- not know it at the time, the call was the point 12 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

COMMUNITY PARTNERS tant turn when members try to identify We’re finding partners and devel- not encountered a funder so willing to the root causes of community need. oping grants. In the dozen or so Knight listen. Nonprofit executive Katherine Genovese communities where priorities had been “I had never experienced a program cites a litany of related social ills that established as 2002 began, we are en- that raises to such high levels the con- service providers treat: inadequate edu- gaged in grant development. That means cept and practice of partnering – among cation, the risk of pregnancy, drug and we’re determining the area in which com- the foundation, the communities it alcohol abuse, low expectations. It munities believe the foundation can serves, its potential partners and pros- seems the people with the greatest make the most difference, setting meas- pective grantees,” she writes (see facing needs for such services are Centre urable goals that allow our partners to page). County’s educated but underemployed track progress, drawing on examples of We’re monitoring and participat- residents living “over the mountain” – tested and promising practices, assessing ing in the first partnerships formed in away from town and campus, unaware the ability of communities to launch and the Partners program. In five commu- of available services or unwilling to use sustain programs, and building in feed- nities – Long Beach, Charlotte, Grand them. “They’re off the radar screen,” back and monitoring systems that help Forks, Milledgeville and Fort Wayne – says Jaffe. The committee recommends our partners get the evidence they need projects funded in December 2001 are researching ways to stabilize these at- to mark success and make adjustments under way. They address a range of issues risk, underemployed families, with an when things get off track. associated with Knight funding interests, emphasis on a better future for children Until Janet Singerman of Child Care among them school readiness in Long who otherwise might never emerge Resources started talking to liaison Beach, Fort Wayne and Charlotte; im- from what committee member Chuck Susan Patterson about the early child- proved cultural opportunities for the un- ▲ Curley calls “the hidden population.” hood situation in Charlotte, she had derserved in Fort Wayne; economic at which the partnering between the founda- ing majority of programs in Mecklenburg don’t tion and Child Care Resources really began. use one. Through Curriculum Matters, our Par kwo od Av e As I shared my organization’s ideas for strate- newest Knight-funded initiative, we’ll select . 77 Downtown gic school readiness investment, the founda- 10 child-care programs to use a promising, Charlotte, N.C. tion’s staff worked with us to whittle down developmentally appropriate curriculum for Ericsson Stadium the list. We soon reached consensus about the next five years. You see, while other fac- South End our most promising and affordable strategy tors that contribute to quality programs are St. and from that point on, Knight staff asked the governed by cost and regulation, a child-care on 277 Tr y 4t tough questions that helped us craft a propos- program’s willingness to stick to a curriculum h St ★ . al that would gain the foundation’s support. and engage families is a matter of choice and Child Care Resources So often, due to the competitive nature of intent. We’ll measure rigorously to note if cur- e. 700 Kenilworth Ave. Av th grant awards, it’s rare to have extensive dia- riculum makes a difference for those who or lw Carolinas ni logue with a prospective funder while working haven’t used one. Medical Center Ke on a final grant submission. The grant-seeker What is particularly exciting about part- is typically held at arm’s length so as not to nering with Knight Foundation is its commit- influence the funder’s decision. What’s differ- ment to fund both the improvement of local ent about this process? Once the local Knight practice and the collection of evaluative data committee expressed its support for our con- to help inform local and state policy develop- cept, the conversation between the founda- ment. tion and Child Care Resources enabled us to Here’s one final piece of evidence to work “in the light” in a mutually beneficial demonstrate how differently Knight approach- manner. es grant making: It was actually the founda- And what did we create together? tion’s idea to extend the project’s time frame Something to confront this distressing fact: from three to five years to ensure its success Despite research that proves sticking to a in terms of practice, evaluation and ability to inform public policy. ★ good curriculum is one of several factors playing into high quality child care, an overwhelm- 2001 ANNUAL REPORT 13

AN ADVISER’S PERSPECTIVE ‘Not Enough Heads for All the Hats‘ With the Sorlie Bridge linking Grand Forks, N.D., and East Grand Forks, Minn., in the background, Knight Trustee Mike Maidenberg is flanked by Community Advisory Committee members Sheila Gerszewski of Grand Forks and Dr. Steve Gander of East Grand Forks. Michael Maidenberg is president and publisher nities on the Northern Plains, we are faced important media voice and as an individual of the Grand Forks Herald, and a Knight with stagnating population, caused mainly by deeply involved in civic causes. Foundation trustee. out-migration. But unlike other places, the To be sure, this multiplicity of roles gave Grand Cities feel the lingering impact of the me unusual perspective on how Knight When a key finding was described as “Not 1997 flood and fire, and the 1998 downsizing Foundation’s new strategy might play out in enough heads for all the hats,” I could only of Grand Forks Air Force Base. In pinpointing the “Grand Cities” of Grand Forks, N.D., and smile in agreement. It was June 7, 2001, and a this goal, the advisory committee had argued East Grand Forks, Minn., along with their sur- remarkable initiative was coming together. that only by increasing incomes would the rounding regions. While many in the room wore multiple hats, community be able to increase its population But the challenge was to move from per- mine were unique to the occasion. base in an economically positive way that spective to projects worthy of funding. That As a trustee of Knight Foundation, I had a also improved our quality of life. required listening closely to community lead- hand in crafting and approving our new Economic development is addressed by ers, applying expert insight to the findings, Community Partners Program strategy. As the many local organizations. How could Knight then seeking out those organizations that adviser in Grand Forks, I would help translate Foundation contribute? could bring the energy and focus needed to this new way of doing things to a new To find the answer required three crucial create grants aimed at the overarching goals Community Advisory Committee, which I actions: we had set for ourselves. would chair. As longtime publisher of the First, the foundation needed to work with The foundation’s top priority for the Grand Grand Forks Herald, I have a role within the the local economic development corporation, Cities is economic development, defined as Grand Forks region as leader of its most or EDC. The Grand Forks Region EDC was increasing family income. Like most commu- 14 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

COMMUNITY PARTNERS development in Grand Forks; and in the care given by 20 child-care rative Transformation project. Much youth development in Milledgeville. providers in the 90806 ZIP code over a like Macon’s town-gown partnership Trustee Mike Maidenberg describes three-year period (see page 6). (described by Peter Brown on page 27), how our funding in economic develop- We’re encouraging collaboration. it’s a daunting and yet promising collec- ment, and our introduction of special- We launched the Community Partners tion of agencies, funders, nonprofits ist Ned Hill into the community’s delib- Program in June 2001 in Miami, mak- and community developers taking a erations has had a transforming effect ing 55 grants totaling nearly $24 mil- holistic approach to community devel- (see facing page). lion. In many of those grants, we mod- opment. We’re looking for direct ways to eled for our 26 communities and part- And we’re addressing the needs of measure, to know if our funding has ners the kind of collaborative efforts the neediest. Knight trustees pledged $5 made a difference. In Long Beach, a we’re encouraging in the new program. million immediately after the terrorist school-readiness project gets at chil- The biggest is an attempt to capitalize attacks of Sept. 11, then increased the dren’s cognitive skills by working with on the tectonic forces colliding in amount to $10 million when the impact care providers. The Good Beginnings Overtown, the city’s historically black of the attacks and the softening econo- Never End van whisks child-develop- downtown, where development is begin- my became evident. By December it ment professionals into child-care ning to nibble away at the edges. Three was clear we could do the most good by providers’ homes for seven weeks to skilled organizations – the Collins Center helping the secondary victims of Sept. work with the under-5 set. Knight for Public Policy, the Trust for Public 11 – needy people in Knight communi- funding of $250,000 will help measure Land and Local Initiatives Support ties coping with the economic shock, ▲ how the program brings about changes Corp. – oversee the Overtown Collabo- reeling from the loss of work, suffer- invited to participate from the beginning, and the highlights of its findings to an audience 220 Minnesota it offered invaluable assistance in providing that included many of those interviewed, key historical background, describing current pro- political figures and other important members grams, and identifying key players. of the community. 81 Red R iv e r Second, a group of business, government The reaction was swift and positive. A East Grand and other leaders needed to be assembled typical observation: “That nailed it.” The Forks, who, in individual interviews, could provide a mayor of Grand Forks and several others Minn. 2 comprehensive analysis of the present situa- asked for an encore, so on June 7, Hill ★ tion and offer ideas for significant improve- returned to present an updated report to a Grand Forks, N.D.★ ment. There were 37 men and women who broader audience. The Grand Forks Herald fol- were generous with their time and candid in lowed up with a detailed story. The communi- their responses. ty was energized. 297 North Dakota Third, expertise was needed to conduct the Besides the interviews, Hill had read back- interviews, assimilate written reports, apply ground material and brought to the fore his judgment and report findings. The foundation expertise in assessing community dynamics. identified that expertise in Ned Hill, professor He was able to let the community hear its of urban studies at Cleveland State University own voice by identifying a number of barriers and a nationally known expert in community- to development: ➢ We have weak cooperation between gov- based economic development. Hill and his team conducted the interviews ernmental units, and a culture of micro- on May 21 and 22. Attorneys, bankers, politi- management. ➢ We have a leadership problem, but not cians, academic administrators, leaders of nonprofit groups, government officials and problem leaders. Our organizations are business persons from both cities each spent thin, and existing leadership is overextend- at least an hour in one-on-one sessions. On ed. (Put another way, not enough heads for ▲ the evening of the 22nd, the team delivered all the hats.) 2001 ANNUAL REPORT 15

AN ADVISER’S PERSPECTIVE ➢ Our regional economy is divided. Although Forks, backed up by Gary Burger, director of the 3 Coordinating the Chambers of Commerce the region is one economic unit, our Community Partners Program, devoted the of Grand Forks and East Grand Forks as approach remains state-bound and city- remainder of 2001 to bringing ideas, organiza- they tackle a plan they call the “ABC”: aug- bound. tions and people together. menting leadership, benchmarking against ➢ We have a low appetite for risk, and few It was arduous, painstaking work and other communities and celebrating suc- experienced entrepreneurs. required coordination with the new Com- cess. Hill returned to launch the ABC initia- ➢ We have a culture that too often views sur- munity Advisory Committee. It would not be tive March 7 and 8; his ideas were enthu- vival as success. enough just to launch projects; measurements siastically received, infusing fresh energy of success also needed to be constructed. In into the project. The Hill team recommended a series of the end these projects were funded: steps to strengthen and deepen local leader- No matter which hat I don, I am optimistic. ship; to groom young business talent; to set 1 Development of an Entrepreneur Collabora- As a foundation trustee, I believe our Com- up a one-stop shop for entrepreneurs; and to tive by the Center for Innovation at the munity Partners strategy has achieved trac- take an important regional step by coordinat- University of North Dakota. tion in the Grand Cities. As chair of the ing activities in the downtowns of Grand Community Advisory Committee, I believe we Forks and East Grand Forks, which the team 2 Strengthening the existing private-sector have been able to provide extensive local called the “symbolic heart” of the region. Downtown Leadership Group to ensure input in shaping projects. As publisher of the With these findings in hand, the detailed that it treats as one the downtowns that Grand Forks Herald who cares deeply about task of grant development began. Alfredo face each other across the Red River, and the community, I believe we have made remarkable progress toward a better future. ★ Cruz, Knight’s community liaison for Grand that it underscores the importance of a vital downtown to “new economy” ventures. The region’s strong interest in economic development is reflected in this coverage from the Grand Forks Herald. 16 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

COMMUNITY PARTNERS ing from a decline in their social servic- the Hunter Health Clinic to provide es, making do with even less. services. And in San Jose, the Sept. 11 KNIGHT COMMUNITIES In early 2002, the foundation made disaster only added to the impact of the 246 one-year grants of up to $150,000 economic downturn in the technology Aberdeen, S.D. Grand Forks, N.D. from that post-Sept. 11 Fund to pro- sector. As a result, Second Harvest Akron, Ohio Lexington, Ky. viders of social services in Knight com- served 11,000 more people each month Biloxi, Miss. Long Beach, Calif. munities. The grants are meant to close and provided 300,000 more pounds of Boca Raton, Fla. Macon, Ga. the funding gap experienced by social food in the second half of 2001 com- service providers as a result of the pared to the year before. Boulder, Colo. Miami, Fla. attacks. They were based on the eligible Knight’s Community Partners Pro- Bradenton, Fla. Milledgeville, Ga. organizations’ demonstrated loss of gram remains a work in progress. We Charlotte, N.C. Myrtle Beach, S.C. earned and contributed income or learned a lot in year one that will guide Columbia, S.C. Philadelphia, Pa. increased demand for services in the us going forward. Like Thomas Edison, Columbus, Ga. San Jose, Calif. third and fourth quarters of 2001. we’ve learned that invention requires “Did you see the redheaded woman failing, starting over, learning from the Detroit, Mich. St. Paul, Minn. doing cartwheels out of the post office? mistakes, trying again. One thing we Duluth, Minn. State College, Pa. That was me,” Laurel Lynch told the learned was the value of our enduring Fort Wayne, Ind. Tallahassee, Fla. Bradenton Herald. The executive direc- commitment to help communities meet Gary, Ind. Wichita, Kan. tor of Hope Family Services had just their own definition of success. picked up a $20,000 check; she planned And another: There’s no such thing as a typical day. ★ to use most of the funds for Hope’s A community’s granting area is at mini- domestic violence shelter. mum its home county, though there are Local conditions were factored into regional exceptions. For those, and for the funding decisions. In Wichita, lay- updates on activities in Knight commu- offs in the hard-hit aircraft industry nities, visit www.knightfdn.org often. meant unemployed workers without heath insurance strained the ability of On the Web: The Life of a Knight Liaison It’s a light moment for community liaison John Williams II, above right, and Long Beach Community Advisory Committee Chairman Jim Worsham. Williams and his cohorts lead interesting lives as Knight rolls out its Community Partners Program. When John isn’t working with the Long Beach committee, he’s getting to know San Jose and exploring issues important to Boulder – his other liaison assignments. Read the web-only story about the life of a liaison at Knight’s web site, www.knightfdn.org. 2001 ANNUAL REPORT 17

NEW VOICES, NEW MEDIA ‘I Get to Tell the Whole School’ stories I find out about things and I get to tell the whole school about it,’’ she said. Last year she edited The Rainbow. She graduates this year, and wants to study journalism in college. Although Veronica and her fellow student journalists make the future seem bright at Bell, as recently as two years ago it appeared that journalism had disappeared forever at the school. The journalism adviser resigned in 2000, and The Rainbow stopped publication. Without its newspaper, Bell Multicultural became part of a growing number of U.S. high schools without media. Of 22,000 high schools, nearly 20 percent have no school newspaper; many more face that prospect. Principal Maria Tukeva wouldn’t allow her school to remain on that list. She asked Ray- mond Devenney to take over, which meant he would teach the journalism class, which is open to all students, and advise the school paper. Devenney, who has taught English as a second language for 12 years at Bell, admitted he didn’t know much about journalism. “But I thought it would be great working with the paper,’’ Devenney said. This past summer, Devenney went back to class, attending the American Society of Newspaper Editors’ High School Journalism Institute. For two weeks, Devenney studied reporting, writing, photography and ethics. He learned how to use several publishing programs. Devenney and 200 other teachers got the training in a first-year program at the University of Maryland and five other campuses across the United States. ASNE is doing this and more with a $5 million grant from Knight Foundation to help newspapers like The Rainbow share resources, part- Adviser Raymond Devenney, third from left, poses with the student journalists and staffers of The ner with local newspapers and place their pub- Rainbow at Bell Multicultural High School in Washington, D.C. lications on the web. The initiative is neatly bundled at the ASNE web site as high- A $5 million project with the American Society Adams-Morgan section of Washington, D.C. schooljournalism.org. About 500 schools have of Newspaper Editors is helping to re-energize Stripped across the front page is a story asked for information about ASNE’s online high school journalism in the United States. about immunization records at the school, hosting service, my.highschooljournalism.org, where most of the 700 students are an which was activated in late March 2002. At a ‘Graduation rate of student athletes’ assemblage of ethnicities and colors from recent education conference in Atlanta, about ‘Washington Post reporter donates kidney Latin America, Africa, China and Vietnam. 300 principals went to the ASNE booth to get to colleague’ Fifteen percent are African-American. a copy of the highschooljournalism.org CD- Veronica Martinez, whose family emigrat- ROM, a step-by-step guide for teachers who These headlines appeared in the latest ed from El Salvador four years ago, wrote one want to place their newspapers online. issue of The Rainbow, the student news- of those stories. Another aspect of the initiative is forming paper at Bell Multicultural High School in the “I like journalism because when I write ASNE partnerships to start or restart a school 18 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

JOURNALISM INITIATIVES Taking the High Road ➢ Spreading the best news values to he worst terrorist attack ever on As chair of the Journalism Advisory T American soil offers journalism Committee, Rowe is helping Knight electronic media with ConsumerWeb one of its greatest opportunities Foundation develop a new approach to Watch.org, a $5 million project to – a “historic moment,” as Oregonian journalism grant making – finding promote web credibility in partner- editor Sandra Mims Rowe puts it, to partners to carry out well-funded, ship with Consumers Union and the move “from titillation and the trivial highly focused initiatives that directly Pew Charitable Trusts. ➢ Identifying a new, diverse genera- toward matters of consequence and improve the practice of journalism. In substance.” 2001, that strategy translated into: tion of high school journalism stu- The challenge now, says Rowe, a dents – and teaching all students ➢ Advancing press freedom during a four-time Pulitzer Prize-winning edi- about the role of the press in a tor, is to “reclaim and reassert the best time of international conflict with a democracy – through a $5 million that journalism has to offer … provide $3.1 million endowment grant to the partnership with the American true public service as citizens struggle Committee to Protect Journalists. Society of Newspaper Editors. ➢ Inspiring journalistic excellence to learn what they need to know about daily life, what they need to know to through education by strengthening These projects reflect the founda- ensure the public safety, what they need midcareer training programs at top tion’s strategic plan to protect and to know to help preserve our freedoms.” U.S. journalism schools, including a expand freedom of the press and “The high road is there if we will $2 million gift to Investigative encourage journalism of excellence at just take it.” Reporters and Editors (IRE) at the home and abroad. The strategy is based ▲ University of Missouri. on the premise that new media and newspaper. The partnership between the school But improvement came quickly. If in the difficult subjects. In addition to the story about and a local daily newspaper includes a grant first issue Veronica’s main contribution was a the teaching staff, Veronica wrote about of up to $5,000 for hardware and software for bland profile of a new teacher, by the second Martha Hamilton of The Washington Post, who the school and mentoring from working jour- edition she wanted to know why Bell needed donated a kidney to a colleague. Hamilton nalists. The numbers so far: 54 high schools so many teachers – a story that let her ex- serves on the school’s board of directors. and 41 daily newspapers involved in 2001 – plore such issues as immigration and school “This reflected growth in [Veronica’s] think- far above the 20 anticipated. resources. ing and reporting ability,’’ Devenney said. Equipping new advisers with the skills they Then came Sept. 11, 2001. The Pentagon, The new adviser has watched his students need is a key element. where nearly 200 Americans lost their lives blossom. “The training was great,” Devenney said. when a hijacked plane slammed into the build- “I’m seeing them grow and develop as inves- “It gave me some confidence, let me meet ing, is only four miles from the school. A Bell tigators, writers and journalists,’’ Devenney said. other people – people who were in the same student lost a relative. The newspaper devot- “These kids are journalists. They believe they’re journalists, and I think that’s exciting.’’ ★ situation I was in. They got me going in the ed its entire third edition to the tragedy. right direction, shifting from being a language “If we didn’t have the paper there, we teacher to a journalism teacher.’’ wouldn’t have the opportunity to experiment Devenney has signed up to put The like real journalists,’’ Veronica said. Rainbow on line. He also said he has used With The Rainbow resuming publication, information on the ASNE site to write a flyer interest in journalism at the school has picked to recruit students to his journalism class. up dramatically. Ten students signed up for the “That made a big difference,” he said. journalism club, Devenney’s informal recruit- Veronica Martinez and her friend, Silvia ing ground for The Rainbow. Three of them Segovia, attended similar workshops for stu- have made it into his journalism class. The dents at Maryland. They become co-editors of Rainbow’s new editor, Patrick Riley, signed up the resuscitated Rainbow. for Devenney’s class, which is offered through- Their first issue reflected everyone’s lack of out the year. experience, Devenney said, adding:“It was pos- Now more confident of their skills, ASNE’s highschooljournalism.org serves itive in the sense that we put something out.” Devenney’s journalists want to take on more students, advisers and editors. 2001 ANNUAL REPORT 19

JOURNALISM EDUCATION TRAINING AND ‘IRE Changed My Life’ Afi-Odelia Scruggs, a former reporter at The Plain Dealer in Cleveland, is a visiting assistant professor of journalism at Ohio Wesleyan University. IRE changed my life. There I was, a reporter at The Plain Dealer in Cleveland, writing news and features. Throughout my career, I had been desperate to learn about investigative journalism. So I was thrilled when my bosses sent me to New York to attend the June 2000 conference of Investigative Reporters and Editors. I definite- ly had a project in mind. I was the newspaper’s minority affairs reporter, and I wanted to write about Karamu House, an African-American social services settlement house founded in 1915. The institution has had a huge influence on African- American cultural life. The writer Langston Hughes got his start there, as did actors Robert Guillaume and Ron O'Neal. Dancers, printmakers, actors and writers all found a place where they could practice their craft. The organization fell on hard times in the late 1990s, and had seen its presence fade in the local arts community. It had disappeared from the national cultural scene. I had originally planned a tried-and-true strategy for my story. I would talk to former employees and, if I got lucky, current board members. I would search the newspaper’s archives for background information. Had I written the story then, my lead would have been something like: “Poor funding and social shifts in the 1960s and ‘70s have turned the venerable Karamu House into a shell of its former self.” But I sensed then that such an approach would not have shown the cracks behind the wallpaper. I wanted to do a different story, and during that intensive five-day conference, IRE showed me how. I attended a couple of what the organization calls Fast Track sessions, geared to help beginners like me. I listened to a panel on covering arts and culture organizations and attended a couple of sessions on writing Afi-Odelia Scruggs, seen here at Ohio Wesleyan University, acquired new skills at a training session the story. As I attended sessions on reporting offered by Investigative Reporters and Editors. and writing, I began to change my approach. I decided to write from documents first. I requested tax returns from both state and federal governments. I learned that Karamu’s executive director was paid in 1997, but not in 1998 or 1999! I casually asked Karamu for five years’ worth of internal audits. To my surprise, I received them. (Perhaps the reason they were given so willingly was my telling admin- 20 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

JOURNALISM INITIATIVES traditional media share an obligation the World Wide Web, trusting most more than a dozen countries to prevent to meet the highest standards while the established news “brands” of governments from restricting news serving the widest audience. MSNBC and CNN. reported on the World Wide Web. ➢ Nearly 10,000 student journalists and But the projects are more than strat- The foundation funded Link Media’s egy and premise. They are real. Sept. 11 teachers used highschooljournalism MOSAIC, a new prime-time televised showed just how real: .org, the ASNE web site stocked with news program using feeds from materials students could use to write Arabic-speaking countries, as well as ➢ The Committee to Protect Journal- about and understand terrorism. the Crimes of War Education Project, ists worked to stem the rising death to teach reporters how to discern toll of journalists in Afghanistan and In the bustling global village, finding whether combatants are obeying the to draw worldwide attention to the the high road can sometimes be diffi- international laws of war. kidnapping and murder of Wall cult. But if images of Palestinians cheer- At the same time, Knight Foun- Street Journal reporter Daniel Pearl. ing the death of Americans showed us dation continued to support the Knight ➢ IRE fought the clampdown on gov- anything, they showed the need to ad- International Press Fellowships, a jour- ernment information in the United vance world press freedom and journal- nalistic “peace corps” program run by States, publishing revealing statistics istic excellence. the International Center for Journalists, on airport safety even as the Federal In 2001, Knight Foundation funded sending U.S. print and broadcast jour- Aviation Administration denied the the Internews Network’s launch of the nalists overseas for six months of work- data’s existence. International Internet Institute, a glob- ing and teaching. ➢ Consumers flocked to news sites on ▲ al policy initiative now operating in In all, 138 international fellows – istrators that I had already pulled their tax organizations. My reporting colleagues were The tax returns came from Karamu House. returns and that I was wondering about the helpful when I came to them with the idea, but huge gap between their revenues and their I doubt that any one of them – or my editors – Editor’s note: Investigative Reporters and expenditures.) would have suggested Karamu as a topic for Editors is a 27-year-old grassroots organization The audits revealed that the former execu- investigation because it’s a cultural institu- dedicated to improving the quality of investigative director – who had been fired – had re- tion. tive reporting. Knight Foundation supported IRE’s ceived salary and benefits for two years. I simply wouldn’t and couldn’t have done efforts with a $2 million challenge grant in 2001. Other tips led me to documents that exposed such an in-depth story without IRE. The con- IRE’s National Institute for Computer-Assisted a secret settlement between the organization vention opened my eyes to the possibilities of Reporting reaches more than 15,000 U.S. journalists, students and teachers. ★ and the former executive director. investigative reporting. Board members refused to comment, but I I credit IRE for teaching me both reporting didn’t need them. The documents were suffi- and writing techniques. More than anything, I cient evidence of the institution’s decline. learned that investigative reporting is a means The records showed a drop in membership to an end. The goal is to produce a compelling dues. They indicated the organization hadn’t story. put on a fund-raising event in two years. I recently attended the organization’s com- After checking more records in a local puter-assisted reporting boot camp to prepare archive, I realized that the agency ’s decline for a class I’m teaching. The workshop and began in 1963, when the white founders the conference have convinced me that the retired. I learned that the agency had a gener- investigative reporting approach and tech- ated a small amount of revenue for the first niques can be easily applied to beat reporting time in 20 years, but its influence as one of and daily journalism. I urge my students to the oldest arts organizations in the city was all work from documents whenever possible and but gone. to analyze them using spreadsheets and data- In the end, my lead started not with quotes base managers. or a summary, but with specifics of the insti- In fact, I’ve demonstrated to them how tution’s fall and turnaround. spreadsheets can be used for deadline sto- I am proud of this story. The Plain Dealer is ries. I gave them 90 minutes to process infor- known for its investigative reporting, but its mation from five years of tax returns and write Afi-Odelia Scruggs chats with one of her jour- watchdog scrutiny had not extended to arts an outline for a story. nalism students. 2001 ANNUAL REPORT 21

PRESS FREEDOM ‘I Want to Write True Things’ Correspondent Tipu Sultan is treated shortly after being brutally beaten for exposing the activities of a corrupt local official in rural Bangladesh. The Committee to Protect Journalists annually with baseball bats, field hockey sticks and iron has upped the ante with a five-year, $3.1 mil- investigates attacks on the press. bars, the goons beat the reporter for about an lion grant to the organization to build an endow- hour. They broke bones in his hands, arms, legs. ment. Tipu Sultan isn’t about to give up on jour- They left no doubt that they worked for Hazari. When journalists are in danger, CPJ raises nalism. “By the time they were done, they thought funds to help cover emergency expenses. In “Now I want to go back to my profession,” I was dead,” Sultan said. Sultan’s case, CPJ called on the Correspon- Sultan said from a hospital bed in Bangkok, They paid special attention to the reporter’s dents Fund, a New York-based charity that Thailand. “I want to write true things,” he told right hand – the one he writes with. often donates money for journalists in need. A. Lin Neumann, the Asia consultant for the Sultan was picked up and taken to a hos- They raised $5,000, which helped pay for Committee to Protect Journalists. pital. Journalists from two competing national Sultan’s multiple operations in Bangkok. A correspondent for the independent wire dailies launched a fund-raising drive to help The Sultan situation is not unusual. In service, United News of Bangladesh, Sultan pay his hospital costs, but doctors said Sultan 2001, CPJ documented the deaths of 37 jour- was attacked in January 2001 by armed thugs was so badly hurt he would need to see spe- nalists and many more cases of violence working in rural Bangladesh for Joynal Hazari, cialists abroad. against journalists. They either died in the line a corrupt local official and member of the rul- The case came to the attention of the of duty or were deliberately targeted for ing Awami League party. Though Sultan had Committee to Protect Journalists. assassination because of their reporting or alluded to Hazari – known as the “godfather of The organization investigates hundreds of their affiliation with a news organization. That Feni” – in previous coverage, his most recent reported attacks on the press each year and is a 54 percent increase over the 24 journal- story had mentioned the politician by name. organizes vigorous protests at all levels, from ists killed in 2000. Safety has remained a top Hazari wanted to send Sultan a message – local governments to the United Nations. A priority for CPJ early in the new year, with the that the journalist had crossed a line. Armed longtime supporter of CPJ, Knight Foundation killing of 10 journalists during the U.S. war on 22 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

JOURNALISM INITIATIVES including The Washington Post’s called “the lamplight of our modern used to investigate the abuse of public Dorothy Gilliam, The New York Times’ society.” The truest journalism often and private power. These small public Christopher Wren and National Public starts with investigative reporting. For interest groups have become important Radio’s Corey Flintoff – have visited 79 27 years, IRE has been the standard- sources of news. One leading investiga- countries. They started a journalism bearer for this difficult, and sometimes tive story, run nationally by Knight program in Slovakia and a media cen- dangerous, endeavor. From a handful Ridder newspapers, exposed how feder- ter in Moldova. They raced across Peru of volunteer founders in 1975, IRE has al anti-terrorism budgets in past years and Bolivia to help dozens of journal- grown into a worldwide network of were padded by false claims of arrests. ism groups. They prepared Cambodian 4,500 journalists. Its training touches The reporters got their story from the journalists for the country’s first local more than 15,000 journalists a year Knight Foundation-supported Trans- elections. Supporting them is the ICFJ (see Afi-Odelia Scruggs’ first-person actional Records Access Clearinghouse web site, www.ijnet.org, which has the account, page 20) and helps identify at Syracuse University, the largest feder- world’s most complete listing of jour- such issues as unsafe highways, discrim- al information database available to nalism training opportunities and inatory businesses, pollution and gov- America’s reporters and the most pro- resource material. ernment corruption. Knight Founda- lific user of the Freedom of Informa- Knight’s international planning will tion’s endowment grant, the largest ever tion Act. have solid grounding with a 2002 received by IRE, will put the organiza- In 2001, taking the high road in report on journalism needs worldwide tion on more stable footing. journalism education meant sending by media analyst Ellen Hume, new More modestly but no less signifi- longtime editor Bill Kovach of the journalism program officer Yves Colon cantly, Knight Foundation supported Project for Excellence in Journalism and new director of Journalism Initia- the efforts of the National Security and the Committee of Concerned tives Eric Newton. Archive Fund, the Federation of Ameri- Journalists to 20 newsrooms to teach But press freedom must endure and can Scientists Fund and the Center for journalism values. It meant sending expand at home if we are to realize the Public Integrity, to show how the Southern Newspaper Publishers Asso- ▲ “true journalism” that Jack Knight Freedom of Information Act can be ciation trainers into 29 cities to train terrorism in Afghanistan, including the high- the hospital, then arranged for an ambulance still not fully cured, now I can write with my right hand.” ★ profile kidnapping and murder of Wall Street to bring him to the meeting hall. He arrived in Journal correspondent Daniel Pearl. a wheelchair, with a huge wound on his arm “This is a phenomenon that you see not and exposed skin grafts. His broken arms rest- only in Bangladesh, but in a lot of countries,” ed on a large pillow. said Ann Cooper, CPJ’s executive director. The recovering journalist’s appearance “It’s really frightening.” “was a wonderful moment,” Cooper recalled. Which makes Cooper, and many others, “These people were from press freedom organ- more devoted than ever to the work the izations from all over the world. This is the organization is doing. Bangladesh, she said, work we all do, our reason for being is for peo- has been a violent place for journalists, espe- ple like Tipu.” cially in the provincial areas where political Sultan filed a police report against Hazari bosses hold autocratic sway. in September 2001. By that time, Hazari had “Whenever we hear of these cases, we gone underground in order to avoid prosecu- protest against them,” Cooper said. “If there’s tion on murder charges in an unrelated case. more we can do, we do it. These are people By the end of 2001, Sultan had emerged who are very committed to their work, and from multiple operations and extensive physi- they’re attacked because of their work.” cal therapy. Last summer, Cooper was in Bangkok “Now I am going to start my previous pro- attending a conference of the Freedom of fession within the shortest possible period,” Tipu Sultan is still recuperating, but he is able to Information Exchange. She visited Sultan in he wrote to CPJ in December. “Though I’m write again. 2001 ANNUAL REPORT 23

JOURNALISM INITIATIVES some 4,000 of their members. It meant at Austin, working with the Inter and a public television station (The helping Harvard University produce American Press Association and others Educational Television Association training materials to improve televised in a major new initiative to increase of Metropolitan Cleveland). election coverage, and helping George independent journalism training in the Washington University produce a series Americas. Reaching out through new technol- of televised forums on news economics 2001 saw the establishment of two ogy does little good unless in the end issues at the National Press Club. new journalism chairs: Two-time Pulitzer you reach people – the whole commu- Since 1986, Knight Foundation has Prize-winner Bill Gaines from the Chi- nity. That means fostering both a diverse supported journalism fellowship pro- cago Tribune now holds the Knight workforce within general news organi- grams at top universities, including Chair in Investigative Reporting at the zations and a diverse news audience in Columbia, Stanford, Harvard,Yale, Mary- University of Illinois, and veteran broad- the general community. land, MIT and Michigan. In recent years, cast journalist and former Medill School The American Society of News- programs have started at the University of Journalism Dean Ken Bode is Knight paper Editors expanded its efforts to of Southern California/UC-Berkeley, Chair in Broadcast Journalism at North- revitalize American high school jour- Boston University and the Centers for western University. nalism by agreeing to host on the Disease Control and Prevention in At- The idea behind all this is that jour- World Wide Web any of the nation’s lanta. Participation is growing, even nalism excellence – the accurate, fair, 22,000 high schools wanting a place in though newsroom budget cuts make it contextual search for the truth – can be cyberspace for their school newspa- harder for journalists to attend. inspired. Even today, and even in the pers. This unprecedented effort, made Knight Foundation has created a relatively wild world of electronic jour- possible by creative use of a $5 million national network of Knight Chairs in nalism. Knight grant, means ASNE can now Journalism at 16 leading journalism That’s certainly the goal of Consumer help thousands of high schools start schools nationwide. In 1990, then- WebWatch, a Consumers Union non- new student media. (See how it works president Creed Black explained that profit research project funded by Knight at Washington’s Bell Multicultural High this effort would “strengthen American and The Pew Charitable Trusts. Con- on page 18.) journalism education by bolstering sumer WebWatch hopes to improve The high school initiative will core curricular values and encouraging credibility and consumer trust in World expand as the Radio and Television innovation.” Since then, more than $25 Wide Web sites by promoting financial News Directors Foundation proposes million has funded the journalism disclosure and fair business practices on ways student broadcasting can advance chairs. the web. Jack Balkin, founder and direc- both student journalism and students’ Occupying the chairs are profession- tor of the Information Society Project at understanding that journalism plays an al journalists who reach out to help Yale Law School and that school’s Knight important role in democratic societies. improve U.S. journalism, inspiring both Professor of Constitutional Law and the Women, who constitute a majority excellence and innovation. They include First Amendment, is an adviser to this of college journalism students today, Haynes Johnson of the University of effort. have a documentary highlighting mod- Maryland, author of a best-selling book Knight Foundation launched sever- ern role models. Funded by Knight on the Clinton administration, The Best al additional new media experiments Foundation, the PBS documentary She of Times; Sylvia Nasar of Columbia in 2001, including: Says was created by the first woman to University, whose award-winning biog- head the Columbia Graduate School of ➢ Finding ways to train women jour- raphy on math and economics genius Journalism, former dean Joan Konner. John Nash, A Beautiful Mind, became nalists on the web (The International The program looked at how increasing an Oscar-winning movie; Jim Detjen of Women’s Media Foundation); numbers of women in the news media ➢ Training students in multimedia Michigan State University, working to are putting a more human face on the encourage worldwide environmental journalism at a proposed high-tech news. reporting; Phil Meyer of the University lab called Newsplex (University of People of color, still represented in of North Carolina, searching for better South Carolina); newsrooms at a fraction of their num- ➢ Forming an online digital partner- ways to measure news quality; and bers in the general population, were Rosental Alves of the University of Texas ship between a public radio station part of Knight-sponsored diversity proj- 24 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

JOURNALISM INITIATIVES ects at Penn State University (the Knight Diversity Scholars Program); the Univer- sity of North Dakota (the Native Media Center) and at the University of St. Thomas in St. Paul, Minn. (J-Zone, a multicultural, multimedia journalism immersion camp). New projects with the Robert C. Maynard Institute of Jour- nalism Education, the University of Montana and Florida A&M University in 2002 will establish special online news services to provide students of color with practical writing and editing experience. Freedom. Education. New media. New audiences. The historic events of Sept. 11 underscored the need for excellence in each of these elements of journalism. Much of what the nation be- lieves – “the picture of the world in our heads,” as political philosopher Walter Journalism Advisory Committee chair Sandra Mims Rowe, right, talks with committee members Nancy Hicks Maynard and Rich Oppel during a January 2002 meeting. Lippmann put it – comes from the journalism we read and see and hear. That was the message of the year. JOURNALISM ADVISORY COMMITTEE We heard it firsthand through Knight- supported media reporting: in the Sandra Mims Rowe, Chair Columbia Journalism Review and Ameri- Robert McGruder Editor can Journalism Review; on public tele- Executive Editor The Portland Oregonian vision’s Media Matters, public radio’s Detroit Free Press On The Media and the Internet’s www. Merrill Brown mediachannel.org. Rich Oppel Editor-in-Chief Media critics, who rarely agree on Editor MSNBC and MSNBC anything, found themselves all observ- Austin American-Statesman on the Internet ing that you would have to go back a half century to find a time when jour- James V. Risser Barbara Cochran nalism was as important to the Ameri- Former Director President can people as it has been in the months John S. Knight Fellowships Radio and Television News after Sept. 11. The question is: Can that for Professional Journalists Directors Association moment be turned into a movement, Stanford University and the movement into substantial Nancy Hicks Maynard change for the better in the way the James D. Spaniolo President news is gathered, packaged and pre- Dean Maynard Partners sented to the American people? College of Communications From Knight’s perspective, backed Arts and Sciences by the programs it supports, the answer Michigan State University seems obvious. ★ 2001 ANNUAL REPORT 25

NATIONAL VENTURE FUND Working on Many Levels “Strong nations are built on strong com- The new proposal was shaped by a sons for local practitioners and infor- munities.” key lesson from that partnership: You mation for state and national decision- can’t isolate housing and community makers. hat statement comes, not from a development from economic develop- Communication: Eight months after T U.S. president, a developer or a ment issues, cultural issues, education an epic presidential election revealed grassroots organizer, but via the issues, people issues. dire flaws in the nation’s election sys- National Trust for Historic Preservation. “It helped us think through all of tem, President Bush accepted and And they’ve got the numbers to prove it. the services that we offer to communi- endorsed a Knight-funded report from The National Trust’s research says ties and put together an approach that a bipartisan commission calling for an historic neighborhoods build stronger can be demonstrated to work in any overhaul. The National Commission on communities than their newer neigh- number of places,” said Nichols. “We’ll Federal Election Reform – co-chaired bors. They’re more stable. They’re more be able to show some results.” by former Presidents Carter and Ford – diverse. They create jobs. They attract Take those elements – an outfit with called for fundamental changes to visitors. In short, historic places drive the the demonstrated ability to work ensure fairness. Among its 13 recom- economy. deeply in one of our funding interests, mendations, the panel asked states to For the past 10 years, Knight Foun- experimenting with a big, coherent adopt a uniform system of statewide dation has learned some of those lessons idea in a way that connects it to one or voter registration and suggested turn- in partnership with the National Trust. some or all of the Knight communities ing Election Day into a national holi- In 1992, our arts and culture program – and you’ve got the basics of the day. Knight’s $200,000 grant supported made a $1 million grant – a sizable com- National Venture Fund. Knight trustees the commission’s public education and mitment for Knight at the time – for a established the fund in the autumn of communication activities. new kind of project. The National Trust’s 2000 to support innovation and exper- The foundation’s dedication to the Community Initiated Development pro- imentation at the national level that vitality of the Knight communities and gram sought to show in Detroit, relate to our work in 26 communities. to promoting journalism of excellence, Philadelphia and Miami Beach that his- But it goes beyond that. The fund’s combined with our national funding toric preservation is a key element in commitments in 2001 ranged from experience, makes a cross-disciplinary revitalizing central business districts. $15,000 to $3 million and went to U.S.- national fund a natural. Another grant four years later expanded based organizations committed to high “The Knight communities are their the program to more Knight cities. standards of planning, evaluation and own unique representation of America,” That’s why the foundation’s new communication. said Lisa Versaci, the Venture Fund’s National Venture Fund was the vehicle Planning: The Voter Foundation of director; she joined the foundation in 2001 for funding the next generation Boston is developing a business plan early in 2002. “They automatically give of this long-term relationship between with a $175,000 grant for a web-based us a national perspective. We’re com- Knight and its nationally respected journalism, civic and educational mitted to working in each of them over nonprofit partner. With a $2.5 million enterprise designed to promote a more the long haul, introducing proven grant, the Preservation Development active and informed electorate. approaches where they might work and Initiative expects to focus the National Evaluation: Through the early rounds discovering innovation wherever it Trust’s professionals on as many as of priority setting in the Community might spring up. eight Knight communities, first to Partners Program, several Knight com- “We want to work on many levels assess local preservation policies and munities said they want to improve with many partners – visionary indi- opportunities, then to deploy technical conditions for early childhood devel- viduals, agencies, other funders, gov- assistance, financing and expertise. opment and school readiness. With ernments – to explore what’s possible The new program is “a direct out- $220,000, the Institute for Women’s through collaborative thinking and growth of our previous work with Policy Research is examining formal acting.” Knight,” said MacDuffie Nichols, the evaluations of recent strategies to raise Look at the list of the 39 grant recip- ▲ project director for the National Trust. child-care worker wages, gleaning les- ients from the first-year Venture Fund 26 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

A NEIGHBORHOOD’S PERSPECTIVE ‘People Have to See Something’ The 30-square-block neighborhood, originally the turn-of-the-century home to white railway and millworkers on some streets and African- American teachers, preachers, and civil ser- vants on others, had been in steep decline for 40 years as white families and the black middle-class moved out after desegregation. Amid the dilapidated two-story Victorians, Queen Anne cottages, and indigenous “shot- gun houses” are numerous vacant lots and two large public-housing projects. Businesses and amenities are sparse. And right there all along, as the inner city grew to adjoin it: Mercer University. It’s a clas- sic Southern Baptist liberal arts institution, with red brick Collegiate Gothic structures and a five-story administration building whose towers and cupolas were designed by the Chicago firm of Louis Sullivan. I’ve been at Peter Brown, a Knight Fellow in Community Building and director of the Mercer Center for Community Mercer since 1971. During the 1980s and Development in Macon, stands in front of a house in the Beall’s Hill neighborhood that was the subject of the charrette. early 1990s, the university turned inward, pro- tecting itself from the increasing blight. Fences went up. Roads were closed. Part of the future. The exercise brought two Knight Peter Brown is director of the Mercer Center for Beall’s Hill was “urban renewed” to make way Foundation initiatives together in an unexpect- Community Development in Macon. for Mercer’s School of Medicine. ed way. The tour was a wake-up call for our presi- Unexpected, and frankly marvelous. Before last fall, I doubt many people in dent. Godsey committed the university to seek Elizabeth Plater-Zyberk, the renowned Miami Macon had ever heard the word charrette. ways to cooperate with neighborhood resi- architect, educator and advocate for New But visit now and you’ll hear citizens and dents and the city for the revitalization of Urbanism, presented the charrette results as city planners alike saying: “But the charrette ▲ Beall’s Hill. Within two years, he founded 150 participants – residents, neighborhood says …” before plunging into an informed dis- association leaders, architects, planners, stu- cussion of the possibilities of Macon’s long- WHAT’S A CHARRETTE? dents, the media, Mayor C. Jack Ellis and neglected Beall’s Hill neighborhood. other elected officials – packed Macon’s City In early November, we took a giant step in At the 19th-century Ecole des Beaux- Council chambers. They saw renderings of a this Georgia city of 94,000 during a five-day Arts in France, a little cart – a charrette neighborhood as a whole: an elementary public workshop – a design charrette – turn- – collected students’ drawings for school, a restored city park, shops and gro- ing community ideas into graphic visions for architectural competitions. The stu- cery stores, attractive housing, all adjoining dents sometimes jumped on board to nearby Mercer University. Julie Groce, presi- finish their drawings. dent of the Intown Neighborhood Association, had tears in her eyes. “It was exhilarating,” A modern-day charrette is a real-time she said. “Why can’t we do this for all our exercise in turning community ideas community planning?” ★★★ into graphic visions for the future. Stakeholders from across the neigh- In 1996, former Macon Mayor Jim Marshall borhood and the community “jump on and Chester Wheeler, his director of commu- the cart” to guide urban designers in nity development, invited Kirby Godsey, pres- their work. ident of Mercer University, to take a ride The charrette’s participants produced drawings through the Beall’s Hill neighborhood directly like this one, envisioning a new landmark for the across the railroad tracks from the university. Beall’s Hill neighborhood entrance. 2001 ANNUAL REPORT 27

NATIONAL VENTURE FUND and you’ll see organizations doing deep In our communities, we want to tion. Along with other founding part- work in each of Knight’s funding inter- encourage and enable all residents to ners and government agencies, Knight ests. Venturesome projects from each participate effectively in the democrat- is supporting NCDI as it begins its sec- of these old and new Knight partners ic process, form ties to local institu- ond decade of activity in major U.S. assume we’ll have even richer and more tions and strengthen relationships with urban centers. valuable information to share with one another. We’re gathering a fair Peter Brown’s accompanying article other funders, other communities and amount of research and experimenting (see page 27) documents the role the policymakers who shape our com- with numerous approaches. Some can Knight has played in two other common future. Key developments in 2001: be posed in basic questions: munity development arenas. Campuses How well do Americans understand like Brown’s Mercer University in ➢ In education, Teach for America will their own Constitution? Two Knight-sup- downtown Macon have a huge stake in use a $3 million grant over three ported organizations – the Committee the health of nearby neighborhoods years to expand its corps of college on the Constitutional System and the and businesses. Knight Foundation’s graduates working in hard-to-fill National Constitution Center – are creation of a $3 million investment for teaching assignments. And New working on ways to help people better Macon three years ago led to a key role American Schools will use $2 million understand government’s role, and their for Brown and Mercer in a public-pri- to become more self-sufficient as it own, in the United States. vate downtown revitalization project. continues its efforts to promote and How can more people be encouraged And Brown soon joined the inaugural launch proven, comprehensive school to vote? Longtime partner Kids Voting class of fellows in the Knight Fellow- reforms. USA is developing an initiative to reach ship in Community Building program ➢ The National Council for Family out to the growing Hispanic popula- at the University of Miami’s School of Literacy achieved an important mile- tion in this fall’s elections, and Boston’s Architecture. Brown and his colleagues stone when the Advertising Council Voter Foundation project posits that teamed up in a fascinating charrette – the people who brought us Smokey potential voters can be well engaged via process that may yet transform the way Bear and McGruff the Crime Dog – the Internet. people in Macon relate to their neigh- accepted a proposal to create and How can more Americans be encour- borhoods and to each other. A similar launch a Knight-funded national aged to participate? ImpactOnline is town-gown development project fund- public awareness campaign promot- using the power of the Internet to help ed in 2001 is under way in Akron’s ing family literacy. nonprofits find, recruit and manage University Park neighborhood adjoin- ➢ Our initiative to help communities potential volunteers. And in St. Paul, a ing the University of Akron. develop collaborative arts marketing University of Wisconsin project called Expect the nascent Venture Fund to programs welcomed Detroit, Grand the Community Information Corps continue to research and plan, with a Forks and San Jose in 2001, increas- will direct young people’s interest in new director intent on establishing a ing to eight the number of Knight new media and the Internet toward baseline of research and information in communities with such efforts under civic engagement and public work. our areas of deepest interest. Heeding way. Over the past eight years, a series Answering such questions – and past lessons and using what we learn is of grants has helped establish and determining which ones hold the most critical to the program’s success. develop local coalitions of cultural promise – remains a main thrust of the Says Versaci: “From this base of institutions aimed at building expert- Venture Fund. knowledge, we’ll seek people with great ise to market the visual and perform- That said, it may well be in the area ideas and the ability to implement them.” ★ ing arts. of community development that the Venture Fund gets its best workout. Especially notable for Knight, howev- Knight continued its support of the er, were strides in 2001 in both a newly National Community Development defined interest – civic engagement and Initiative with grants to longtime inter- positive race relations – and a historic mediaries The Enterprise Foundation interest, community development. and Local Initiatives Support Corpora- 28 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

A NEIGHBORHOOD’S PERSPECTIVE The proposed charrette master plan for the Beall’s Hill neighborhood. the Mercer Center for Community Develop- neighborhoods – Beall’s Hill, Tatnall Heights – nity partners sometimes found it hard to ment, and I became its first director. were under way, but unconnected, at the time understand how their specific roles were to The university had a mountain of suspicion of the NewTown grant. The foundation set come together, the 2,000 residents of Beall’s to overcome. We found that residents had a aside $2 million in a Macon Opportunity Fund Hill were often mystified about the outcome very pragmatic take on our newfound zeal for to support future projects and urged us to and whether it would be good or bad for them. their well-being. As Ernestine Watts, the work and plan together. Their deep suspicions of the city, Mercer, and backbone of the Willing Workers Neighbor- We did, bringing together in conversations the housing authority persisted. And all of us hood Association, said, “I don’t care if it’s more than 100 organizations as diverse as were eager for visible progress. Ernestine Watts good for Mercer if it’s good for the neighbor- Mercer, the city, the housing authority, neigh- had told me again and again: “People have to hood, too.” borhood associations, the Macon Heritage see something!” We were ready, then, when Knight Foun- Foundation and Goodwill Industries. The result Help was on the way from an unexpected dation established a $3 million commitment to was a new vision in Macon of a wide-ranging source. In the spring of 2000, Knight Foun- Macon in June 1999, including $1 million to partnership for comprehensive community dation had just funded a unique national pro- NewTown Macon, a public-private partnership change in Central South Macon. With HUD gram at the University of Miami, where Plater- spearheading the revitalization of our attrac- grants and other funding, for example, we’ll Zyberk heads the School of Architecture. The tive, walkable downtown. Knight’s staff and demolish and rebuild Oglethorpe Homes – Knight Program in Community Building intend- local advisers recognized that downtown revi- public housing built for whites only in 1941, ed to bring together from across the country a talization was closely tied to the future of now home to 188 of the city’s poorest black dozen leading midcareer professionals in a intown residential districts. Several related families, in the center of Beall’s Hill. variety of community development fields for a efforts to address issues in inner-city, pre- The scope of the initiative is a strength series of seminars and case studies examin- ▲ dominantly black Central South Macon and its and a potential barrier. If the several commu- ing best practices in smart growth and 2001 ANNUAL REPORT 29

A NEIGHBORHOOD’S PERSPECTIVE The design proposes that the expansion of this public elementary school In this block, new homes blend with existing houses to create a variety of across from Tatnall Square Park could bring buildings up to the street, cre- affordable housing options for up to 30 families, all clustered around a com- ate a central courtyard for playgrounds, and locate parking and drop-off munity center and public space. lanes to the side and rear. This overview shows how the Mercer University campus is closely tied to the Beall’s Hill neighborhood, sharing a proposed mixed-use commercial area, at left. urban design. I was honored to be picked as mix of housing filling in those vacant lots that upstairs. For two days, the Knight Fellows one of the inaugural Knight Fellows. would recapture the historic urban density and facilitated an intense discussion between citi- The center of this unusual program: an foster mixed-income redevelopment. zens and the visiting professionals. Then the annual public design charrette in one of the 26 Over five days, a neighborhood of complex designers went to work to turn neighborhood Knight communities involving the Knight parts and a community of diverse parties ideas and visions into specific designs. Fellows and faculty and graduate students came together in vision and in spirit. As Mike Something you could see. from the School of Architecture. Last June, Caldwell, a property owner in the neighbor- People of all stripes and persuasions felt we chose Macon and Beall’s Hill as the site of hood for over 30 years, exclaimed, “They got free to drop in frequently during the next two the first Knight Fellows’ charrette. me to see things in my own neighborhood I’d days to view results and make suggestions. Something extraordinary was about to hap- never seen before!” By the end of the dialogue, the community pen in my back yard. Today the dialogue is continuing. The owned the project – and could see its vision Extensive publicity brought out people in Intown Neighborhood Association “up the hill” embodied in real-time designs and renderings. droves. We set up in the education building of sees their Willing Worker neighbors “down The talents brought to bear by my fellow Macon’s Centenary United Methodist Church, the hill” as sharing a commitment to preserve Fellows made it a once-in-a-lifetime experi- where the university meets the neighborhood. the best of the past while infusing neglected ence. They strongly engaged the religious com- A dozen first-year architectural students and areas with new life, new residents and new munity. They enabled us to see the neighbor- their professor worked day and night on one investment. “But the charrette said …” is a hood as a whole. They incorporated the univer- side of the main hall while meetings with res- common refrain as Macon moves to turn sity’s campus plan into a neighborhood of well- vision into reality. ★ idents and others unfolded across the room or scaled, walkable streets. They envisioned a 30 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

KNIGHT COMMISSION INTERCOLLEGIATE ATHLETHICS ON Calling Big-Time College Sports to Reform en years after publication of its sion of traditional educational values T TH E K N I G H T FO U N D AT I O N C O M M I S S I O N IN T E R C O L L E G I AT E AT H L E T I C S ON first report in March 1991, the in college sports,” and recognizes that Knight Foundation Commission individual presidents and campuses A CALL TO ACTION on Intercollegiate Athletics released A cannot act alone: “Change will come, Reconnecting College Sports Call to Action: Reconnecting College sanity will be restored, only when the and Higher Education Sports and Higher Education. The higher education community comes report takes a fresh look at the state of together to meet collectively the chal- college athletics and announces the lenges its members face.” A Call to commission’s conclusion that in the Action is just that – a call to presidents, past decade “the problems of big-time trustees, national higher education sports have grown rather than dimin- associations, conferences, the NCAA, ished … academic transgressions, a faculty, athletic directors, coaches and REPORT OF THE financial arms race, and commercial- alumni – to work together and create KNIGHT FOUNDATION Commission On ization – all are evidence of the widen- the critical mass needed to bring about Intercollegiate Athletics JUNE 2001 ing chasm between higher education’s fundamental changes. ideals and big-time college sports.” Key commission recommendations At an overflowing Washington press include: Division I-A football players and 34 conference in June 2001, the Rev. ➢ Banning teams from conference percent of men’s basketball players at Theodore Hesburgh tackled head-on Division I-A institutions earned the compromises colleges and universi- championships or postseason play degrees.” The commission describes a ties make for their big-time sports pro- that do not graduate at least 50 per- financial arms race dominated by “a grams: “We’re not in the entertainment cent of their players. ➢ Ending the practice of distributing frantic, money-oriented modus business, nor are we a minor league for operandi that defies responsibility.” At professional sports.” Hesburgh, presi- television revenues based on win- the majority of schools competing at dent emeritus of Notre Dame, co- ning and losing games. ➢ Prohibiting uniforms and other ap- the NCAA’s Division I-A level, deficits chaired the 27-member commission run in the millions and are increasing with William Friday, president emeri- parel from bearing corporate trade- every year. The building boom in col- tus of the University of North Carolina. marks or the logos of manufacturers lege sports facilities now under way A Call to Action recognizes the many or game sponsors. ➢ Formation of an ongoing, indepen- across the nation will cost well over $4 positive aspects of intercollegiate ath- billion, with the resulting debt stretch- letics and reiterates the commission’s dent institute to serve as a watchdog ing far into the future. And dozens of focus on big-time football and basket- to maintain pressure for change. football and men’s basketball coaches ball programs. The report outlines the are paid $1 million or more a year – scope of the problems at that level, The commission’s message resonated significantly more than the presidents including abysmal graduation rates: across the country as editorial boards of their institutions. “The most recent NCAA graduation and news anchors joined sportswriters ▲ Finally, the commission decries the rate report reveals that 48 percent of in reporting the commission’s find- rampant commercialization of college sports, a result of the pervasive influence of television and sneaker companies. The NCAA’s contract with CBS to televise the Division I men’s basketball tournament is worth $6 billion, and several universities’ deals with Nike exceed $20 million. “With the money comes manipulation,” the commission warns. As co-chairman the Rev. Theodore Hesburgh, right, Knight Commissioner Clifton R. Wharton Jr. The commission’s report calls for talks to Knight Commissioner Stan Ikenberry, re- makes a point during the June 2001 press con- “sweeping measures … to halt the ero- porter Welch Suggs listens. ference. 2001 ANNUAL REPORT 31

KNIGHT COMMISSION INTERCOLLEGIATE ATHLETHICS ON The Knight Commission, June 2001. Front row, from left: Hodding Carter III, president and CEO, Knight Foundation; LeRoy T. Walker, president emeritus, U.S. Olympic Committee; Richard D. Shultz, former executive director, U.S. Olympic Committee; Carol A. Cartwright, president, Kent State University; William C. Friday, co-chair, president emeritus, University of North Carolina; Creed C. Black, trustee, Knight Foundation; the Rev. Theodore Hesburgh, co-chair, president emeritus, University of Notre Dame. Second row: Jane C. Pfeiffer, former chair, NBC; Mary Sue Coleman, president, University of Iowa; Stanley O. Ikenberry, president, American Council on Education; Cedric W. Dempsey, president, NCAA; Michael F. Adams, president, University of Georgia; Bryce Jordan, president emeritus, Penn State University. Third row: Chase Peterson, president emeritus, University of Utah; John A. DiBiaggio, president, Tufts University; Thomas K. Hearn Jr., president, Wake Forest University; Martin Massengale, president emeritus, University of Nebraska; Clifton R. Wharton Jr., former chairman and CEO, TIAA-CREF; Douglas S. Dibbert; president, General Alumni Association, University of North Carolina; C. Thomas McMillen, former member of Congress. Not shown: Adam W. Herbert, executive director, The Florida Center for Public Policy and Leadership; Richard T. Ingram, president, Association of Governing Boards; Richard W. Kazmaier, president, Kazmaier Associates; R. Gerald Turner, president, Southern Methodist University; James J. Whalen, president emeritus, Ithaca College; Charles E. Young, president, University of Florida. ings and recommendations. More im- Further, the NCAA reform task force is now is for the will to act.” At this point, portant, NCAA officials and college undertaking a comprehensive study of NCAA college presidents and others presidents took heed. At its first meeting what it calls the “fiscal excesses” of col- are displaying that will. Brit Kirwan, following the release of the commis- lege sports, with the goal of shedding president of Ohio State University and sion’s report, the NCAA Division I light on the complicated question of current chair of the NCAA Division I Board of Directors, made up of presi- how to best bring about financial Board of Directors, recently told The dents, formed a reform task force to reforms. New York Times: “There is consider- address the issues raised by the commis- Meanwhile, faculty senates across able momentum for change. … We sion. Meanwhile, presidents and com- the country – from the Pacific-10 in the have ideas and determination to make missioners from the six major NCAA West to the Big Ten and the ACC in the the changes happen.” Division I-A athletic conferences began East – have taken up the issue of the For more than a decade, the Knight to meet to forge their own plans of role of athletics on their campuses and Commission has played an influential action. adopted resolutions calling for renewal role in building momentum and map- To date, these groups have proposed of the academic focus of college sports ping out a path to college sports dramatically increased academic stan- and an end to the financial arms race reform. Its members fervently believe dards that athletes must meet to be eli- and commercialization. in the value of college sports, but warn: gible to play, and are discussing estab- Finally, the Association of Govern- “If it proves impossible to create a sys- lishing minimum academic performing Boards has been working hard to tem of intercollegiate athletics that can ance levels that teams must meet to be establish a National Center on College live honorably within the American col- eligible for postseason competition. Sports and Education that will monitor lege and university, then … the nation’s They also plan to focus on relieving reform progress and continue to advo- colleges and universities [should] get time demands on athletes through cate for change. out of the business of big-time college sports.” ★ such measures as shortening playing After laying out its reform agenda, seasons and limiting missed class time. the commission wrote, “The search 32 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

KNIGHT FOUNDATION HISTORY Turning Vision into Action he John S. and James L. Knight as chairman and CEO was the merger’s T Foundation originated with the architect, Lee Hills, the former presi- Knight family’s belief in the dent of Knight Newspapers. A close value of education. The brothers’ father, friend and associate of the Knights for Charles Landon Knight, had a tradition more than 35 years, Hills was the first of helping financially strapped students person outside the family to head pay for their college education. To honor Knight Newspapers. He had been a his memory, the Knight Memorial foundation trustee since 1960. Education Fund was established in 1940 Hills recognized that Jack Knight’s to provide financial aid to college stu- status as Knight-Ridder’s largest share- dents from the Akron area. Supported holder placed the company in a precar- with contributions from the Akron ious position. If the elder Knight died, Beacon Journal, the fund existed until leaving the bulk of his estate to his December 1950 when its assets of heirs, they would be forced to sell most $9,047 were transferred to the newly of their stock to pay the estate taxes. Brothers Jim and Jack Knight share a light created Knight Foundation. That would leave the company vulner- moment at a social engagement. Incorporated in the state of Ohio, able to management by outside inter- Akron, Miami, Charlotte and Detroit – Knight Foundation was organized prin- ests and possibly a takeover by those cities where the Knights owned news- cipally to carry out the fund’s work. who understood little or nothing about papers – were added to the founda- Almost from the beginning, however, newspapers and less about journalism. tion’s list of grant recipients. the foundation also made small grants Recognizing that both Knight- A turning point came in 1972 when to educational, cultural and social serv- Ridder’s future and Jack Knight’s lega- the board of trustees authorized the ice institutions – mostly in Akron – and cy of quality newspapers and journalis- sale of Clara Knight’s stock in a sec- on a very limited basis for journalism- tic integrity were threatened by such a ondary offering by Knight Newspapers. related projects. scenario, Hills moved slowly and gently The sale raised $21,343,500, increased For the first 10 years the foundation’s to present his friend with another the foundation’s assets to more than assets came from contributions from option: leaving the bulk of his estate to $24 million and initiated an expanded the Beacon Journal and The Miami the foundation. grant program focused on the growing Herald and personal gifts by Jack and The gentle persuasion worked. number of cities where the Knights Jim Knight. Other Knight newspapers Knight rewrote his will, asking Hills to published newspapers. Journalism, began to contribute small amounts in journey from his office in Miami to especially the education of journalists, the early 1960s – a move that led to a Cleveland to review the document with became a matter of more pronounced limited number of grants to cities from Knight’s attorney. Signed in April 1975, funding interest. which the contributions came. the will left the bulk of his estate to In 1974 several events occurred that Newspaper contributions stopped Knight Foundation. laid the cornerstone for a much larger in 1965 with the foundation’s first That year the foundation acquired Knight Foundation. Jack Knight’s wife, major infusion of assets – a bequest of its first office and hired its first two Beryl, died. He underwent major sur- 180,000 shares of Knight Newspapers full-time employees. Ben Maidenburg, gery, thus creating concern among his stock from the Knight brothers’ moth- a Beacon Journal news executive, was associates about the future of Knight er, Clara I. Knight, who died that named president. Maidenburg had Newspapers. Concurrent with these cir- November. Faced with the prospect of been a foundation trustee since 1957 cumstances, Knight Newspapers merged administering a much larger financial and had served as the foundation’s with Ridder Publications to create aid program, the board of trustees part-time manager. Knight-Ridder Inc., at the time the voted in 1966 to end assistance for col- Over the next few years the founda- largest newspaper company in the lege students and to replace it with tion focused on grants to educational country. Jack Knight was its biggest grants to colleges and universities. Over and cultural institutions in the 11 cities shareholder. the next few years a limited number of where Knight Newspapers published. ▲ Heading the newly formed company cultural and educational institutions in Little more than a year after 2001 ANNUAL REPORT 33

KNIGHT FOUNDATION HISTORY establishing, salvaging or strengthening some of the profession’s most presti- gious midcareer fellowship programs for journalists. Host institutions included Harvard, Yale, Columbia, the Massa- chusetts Institute of Technology, the University of Michigan, the University of Maryland and Stanford, where the John S. Knight Fellowships were established in 1982. Soon thereafter, the board created separate programs for education and arts and culture, the two fields in which the foundation had traditionally made most of its local grants. A key change in leadership occurred in February 1988 as Creed Black, a veteran Knight-Ridder news executive and former publisher of the Lexington Knight Foundation has a history of aiding communities in times of crisis. After Hurricane Andrew dev- Herald-Leader, assumed the presiden- astated portions of southern Miami-Dade County in August 1992, trustees committed $10 million to the cy. Under Black’s leadership the foun- rebuilding effort. dation’s national presence grew with During that five-year period, Hills – Maidenburg took the reins, he fell ill. such high-profile efforts as the Knight at the request of Jim Knight, the foun- Jack Knight asked one of his friends, Foundation Commission on Intercolle- dation’s new chairman – guided the Akron civic activist C.C. Gibson, to fill giate Athletics, a blue-ribbon commis- board in an intense strategic planning in. By 1978 it was clear Maidenburg sion that for six years advocated for the process. With the settling of Jack could not return, so Gibson was named reform of college athletics; the Knight Knight’s will complete, Jim Knight president. Chairs in Journalism, an initiative that declared the importance of ensuring One of Jack Knight’s directives dur- seeks to elevate the quality of education the foundation could manage the 20- ing these final years of his life was that at the nation’s best journalism schools fold increase in its assets. the foundation’s trustees consider its by attracting notable working journal- The foundation in the future, Jim future. The outcome was an early and ists to serve as educators through Knight said, “will be like running a largely informal strategic planning endowed chairs; and the National major national institution. The job will exercise that resulted in direct state- Community Development Initiative require outstanding talent and leader- ments from Jack and Jim Knight about (NCDI), the largest philanthropic col- ship.” foundation governance and grant mak- laboration in U.S. history. In becoming The review by Hills and the board ing. Their preferences reflected a desire a founding member of NCDI, the resulted in the creation of a new gov- for an optimum amount of flexibility foundation joined with other national erning structure as well as program- “on the grounds,” Jack Knight wrote, grant makers in what became a decade- ming and financial policies. This plan- “that a truly effective foundation long program to strengthen communi- ning process served as the blueprint for should have freedom to exercise its best ty development corporations in sup- the foundation’s work for the rest of judgment as required by the times and port of their efforts to bring needed the 20th century. conditions under which they live.” housing and economic and social serv- In grant making, a formal Cities Pro- Jack Knight died on June 16, 1981. ices to urban neighborhoods across gram emerged focusing on all Knight- The task of settling his estate required America. Many of its funders, includ- Ridder Inc.’s communities. In journal- five years. When the final transfer of ing Knight Foundation, formally re- ism, the foundation built on the Knights’ funds to the foundation occurred on newed their commitment for a second legacy of support for education as the May 5, 1986, the distribution from the decade not long after the new century cornerstone of quality journalism by bequest totaled $428,144,588. began. 34 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

KNIGHT FOUNDATION HISTORY In 1990 the trustees voted to relocate the foundation’s headquarters from Akron to Miami, where Jim Knight and several other board members lived or spent considerable time. Simultaneously, the staff nearly dou- bled to 14 – an outgrowth of the growing complexity of grants, the increased amount of money given away and the need for more sophisticated oversight of the foundation’s $522 million portfolio. The foundation also reached a milestone: In its first 40 years, it had given away a total of $100 million – a sum that would increase more than fourfold by the end of the decade. Prompted by the dramatic and rapid changes, the board in late 1990 decided to initiate a new strategic planning process to review current programming and create a blueprint for the future. Before the meeting was held, however, Jim Knight died in After the Red River floods and fire of 1997 walloped the Grand Forks region, trustees pledged $1 million to aid the recovery. February 1991, leaving a bequest to the foundation that eventually totaled were identified as funding priorities: Dade County followed Hurricane $200 million. By this time, the newspa- arts and culture, children/social wel- Andrew in 1992. The board also per company the Knight brothers fare, citizenship, community develop- approved $1 million in grants after the founded and the foundation were ment, education, homelessness and lit- Red River flood and subsequent fires operating in 26 U.S. cities. eracy. destroyed much of Grand Forks, N.D., Hills was elected to succeed Jim Among the major initiatives launched in 1997. In the wake of the terrorist Knight as chairman, while W. Gerald under the auspices of the revamped attacks of Sept. 11, 2001, the board Austen, M.D., an internationally known program was a Community Founda- approved a $10 million program to aid heart surgeon and surgeon-in-chief at tions Initiative. It provided more than agencies providing direct services to Massachusetts General Hospital, was $10 million through 1997 to either individuals in Knight communities elected vice chairman to succeed Hills. enlarge or establish donor-advised most affected by those tragic events. Austen, a board member since 1987, funds at community foundations in During the early 1990s, the 26 cities had been the Knights’ physician and cities and towns where the foundation covered by the Community Initiatives longtime friend. made local grants. Since then, the foun- Program remained constant because Aware that Jim Knight’s bequest dation’s work with community foun- Knight-Ridder Inc. neither sold nor made the strategic planning process dations has concentrated on helping to acquired newspapers. However, a series even more timely and important, the build their capacity. of company purchases and sales in the board undertook an extensive planning In an effort to remain responsive to mid-1990s prompted a board review of exercise that culminated in a decade of emergency needs of foundation cities the geographic focus of the program. initiatives and more focused, strategic in the aftermath of natural disasters, In 1998 the board decided the program grant making. the board adopted a grant procedure to should cover only the 26 cities that had The Cities Program was renamed expedite funding in such times of need. been eligible for local grants at the time the Community Initiatives Program to A $10 million commitment to the of Jim Knight’s death in 1991. The reflect a proactive emphasis in grant ▲ recovery and rebuilding of Miami- decision ended the practice of the making. Seven areas of special interest 2001 ANNUAL REPORT 35

KNIGHT FOUNDATION HISTORY foundation following the company, get artworks out of storage in one tury. now Knight Ridder, as it bought or sold museum and onto the walls of another. At its September 2000 retreat, the newspapers throughout the country. The network provides funding for board continued the foundation’s tra- Journalism proved an especially fer- planning and for expenses associated dition of planned evolution to meet tile area for initiatives as educational with lending and borrowing, such as changing community needs. The needs and free-press and First Amend- insurance and shipping. A key compo- resulting five-year strategic plan man- ment issues created opportunities for nent of the program was the develop- dated the most extensive reinvention in funding with impact. In 1993 the Knight ment of a database of available art- the foundation’s history while main- International Press Fellowships, admin- work. taining its focus on communities and istered by the International Center for With these new initiatives came a journalism. Journalists, were established to fund new name and on Jan. 1, 1993, the The new plan strengthens the foun- U.S. journalists and news executives foundation became the John S. and dation’s commitment to its communi- who went overseas to provide profes- James L. Knight Foundation to honor ties, positioning it as a partner with sional advice and training in emerging the memory of the brothers who had local stakeholders in identifying needs democracies. created it. A year later the foundation and focusing on results. With greater The Education Program underwent incorporated in the state of Florida. resources from Knight directed over a major shift in direction – from high- A review of the foundation’s strate- time to a tightly drawn, measurable er education alone to include K-12 – gic plan in 1995 resulted in fine-tuning agenda, the objective is to help each after the 1992 strategic plan was adopt- through such strategies as needs assess- community achieve its own list of ed. The foundation looked to local ments and evaluation. As the decade Knight-assisted priorities. The founda- coalitions to take the lead on organiz- ended, the foundation launched an in- tion’s historic commitment to supporting and implementing local responses depth, ongoing Community Indicators ing a vigorous free press was emphati- to education reform. Additionally, the Project to acquire more comprehensive cally reaffirmed. The full transition to foundation forged alliances with na- information about the cities covered in the new approach will take a minimum tional education reform groups such as the Community Initiatives Program. of three years. New American School, IMPACT II: The strategic plan review also served While the foundation’s new ap- The Teachers’ Network, the National as a catalyst for a change in leadership. proach heralds a significant evolution Board for Professional Teaching Stan- Hills stepped down as chairman in in focus, it also echoes Jack Knight’s dards, Teach for America and The Galef 1996 and was succeeded by Vice belief that, “small as our assets are in Institute that resulted in such organiza- Chairman Austen. Jill Ker Conway, for- relation to all the needs, the foundation tions incorporating many of the foun- mer president of Smith College and a does have flexibility, it can innovate, dation’s cities into their activities. visiting scholar at MIT, was elected vice and can provide the seed money for The Arts and Culture Program chairman. Conway is the first board promising new activities.” launched two initiatives in the early to officer who never knew either of the As the foundation concluded its mid-1990s. The “Magic of Music” Sym- Knights. anniversary celebration in June 2001 phony Orchestra Initiative provided In February 1998 Black retired as pres- and geared up for a whole new planning and implementation grants to ident and was succeeded by Hodding approach to grant making, its assets symphony orchestras willing to engage Carter III, a nationally known public stood at $2.2 billion. A recession at the their entire organizations in experi- affairs journalist and former Mississippi end of the longest economic run-up in ments designed to generate a greater newspaper editor and publisher who U.S. history coupled with the shock to sense of excitement about the concert- had occupied the Knight Chair in the economy of the Sept. 11 terrorist going experience and a more vital rela- Journalism at the University of Mary- attacks reduced the asset base modestly tionship between artists and audiences. land for several years. to $1.9 billion. Regardless, the founda- The second initiative, the Museum Lee Hills died Feb. 3, 2000, at the age tion committed $86,433,075 in 2001 to Loan Network, was a collection-shar- of 93. The blueprint on which the foun- improving the quality of life in its coming program created in partnership dation operates was largely designed munities and the field of journalism worldwide. ★ with The Pew Charitable Trusts and and drawn by Hills. His wise vision and administered by the Massachusetts thoughtful guidance helped steer the Institute of Technology. The aim was to foundation successfully into a new cen- 36 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

KNIGHT FOUNDATION HISTORY ASSETS FOUNDATION 1992–2001 OF THE (MILLIONS OF DOLL ARS) 2,500 2,000 1,500 1,000 500 0 92 93 94 95 96 97 98 99 00 01 GRANTS PAID 1992–2001 (MILLIONS OF DOLL ARS) 100 90 80 70 60 50 40 30 20 10 0 92 93 94 95 96 97 98 99 00 01 CUMULATIVE GRANTS PAID 1992–2001 (MILLIONS OF DOLL ARS) 600 500 400 300 200 100 0 92 93 94 95 96 97 98 99 00 01 2001 ANNUAL REPORT 37

2001 TRUSTEES OFFICERS AND W. Gerald Austen, M.D. Chairman and Trustee Jill Ker Conway Vice Chairman and Trustee Hodding Carter III President, CEO and Trustee Cesar L. Alvarez Trustee Creed C. Black Trustee Marjorie Knight Crane Trustee Paul S. Grogan Trustee Gordon E. Heffern Trustee W. Gerald Austen, M.D., chairman; Hodding Carter III, president and CEO; Jill Ker Conway, vice chairman Michael Maidenberg Trustee Rolfe Neill Trustee Beverly Knight Olson Trustee John W. Rogers Jr. Trustee Penelope McPhee Vice President/Secretary and Chief Program Officer Beatriz G. Clossick Vice President of Accounting and Treasurer Paul S. Grogan, Michael Maidenberg, Creed C. Black 38 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

2001 TRUSTEES OFFICERS AND Cesar L. Alvarez, John W. Rogers Jr., Marjorie Knight Crane Gordon E. Heffern, Rolfe Neill, Beverly Knight Olson 2001 ANNUAL REPORT 39

2001 STAFF President’s office: Hodding Carter III, president Community Partners Program: Front row, from left: Susan Patterson, commu- and CEO; Phyllis Neuhart, executive secretary to nity liaison program officer; Suzette L. Prude, community liaison program officer; Mr. Carter Julie E. Tarr, community liaison program officer. Back row: John R. Williams II, community liaison program officer; Gary Burger, director; Alfredo A. Cruz, community liaison program officer; Joe Ervin, director Programs: Penelope McPhee, vice president and Program Development and Evaluation: Heidi K. Rettig, content program officer; chief program officer; Meredith A. Maust, executive John Bare, director; Liz Sklaroff, content program officer; Katherine T. Loflin, con- secretary to Ms. McPhee tent program officer Journalism Initiatives and National Venture Fund: Yves Colon, journalism program officer; Lisa Versaci, director of National Venture Fund; Eric Newton, director of Journalism Initiatives 40 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

2001 STAFF Administration: Front row, left: Lynne Noble, administration assistant; Reba Program Administration Team: Tanya Nieto, assis- Sawyer, receptionist. Back row: Jorge Martinez, director of Information Systems; tant; Naida E. Gonzalez, assistant; Donovan Lee-Sin, Belinda Turner Lawrence, vice president and chief administrative officer; Susan assistant. Not shown: Janice L. Lewis, assistant; L. Gomez, travel and meeting specialist; Tyrone A. Bumpus, information technol- Kay Simpson, assistant ogy support specialist. Not shown: Zenobia Lopez, records coordinator Accounting: Asya K. Pashenko, controller; Beatriz G. Clossick, vice president and treasurer; Sharlene Poyser, assistant Investments: Front row, from left: Angelique Sellers, executive secretary to Mr. Crowe; Steven Harnish, associate; Beth Kaiser, manager of Investment Reporting and Analysis. Back row: Elika Lopez, assistant; Ava Guzman. assistant; Raul A. Diaz, director; Maurice G. Perry, director. Not shown: Timothy J. Crowe, vice president and chief investment officer Timothy J. Crowe Kay Simpson Janice L. Lewis Zenobia Lopez Communications: Thor Barraclough, associate/ webmaster; Larry Meyer, vice president; Becky Crawford, assistant 2001 ANNUAL REPORT 41

G R A N GG RONV T TRSV I E W T S A A NE S R Listed on the following pages are $86,433,075 in new grants approved during 2001 by the John S. and James L. Knight Foundation. Some of these grants, as well as those approved in past years, are disbursed over a period of several years. The net effect of these past and future commitments is that during 2001 the foundation actually disbursed $84,970,064. Programs Number of Grants Amount Community Foundations Initiative 2 $650,000 Community Partners Initiative to Promote Youth Development and Prevent Youth Violence 5 1,280,000 Civic engagement and positive human relations 13 1,627,500 Economic development 14 1,514,050 Education 31 5,373,500 Housing and community development 29 15,645,350 Vitality of cultural life 50 8,874,000 Well-being of children and families 51 8,970,825 Community grants – other 11 1,522,250 Subtotal 206 $45,457,475 39 $15,774,000 Journalism Initiatives Collaborative Arts Marketing Initiative 3 $1,633,000 National Venture Fund Magic of Music Symphony Orchestra Initiative: Phase II 1 50,000 National Venture Fund 38 23,104,000 Subtotal 42 $24,787,000 Strengthening philanthropy 4 $134,600 Other Special 28 280,000 Subtotal 32 $414,600 Total 319 $86,433,075 42 42 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND 2000 ANNUAL REPORT

COMMUNITY PARTNERS COMMUNITY FOUNDATIONS INITIATIVE CIVIC ENGAGEMENT AND POSITIVE Human Services Coalition 120,000 HUMAN REL ATIONS of Dade County (over two years) Gulf Coast $350,000 (Miami, Fla.) ASPIRA of Florida $100,000 Community Foundation (over three years) For a community leadership institute and (Miami, Fla.) (Gulfport, Miss.) collaborative neighborhood planning efforts To plan and test a youth leadership develop- For a partial challenge grant to establish a ment program that will increase civic engage- permanent operating endowment and to pro- Kids Voting South Dakota 17,500 ment and cultural sensitivity among teen- vide operating funds (Aberdeen, S.D.) agers and preteen-agers in Miami-Dade and For a challenge grant to support civic engage- Waccamaw Community Foundation 300,000 Broward counties ment workshops for students and teachers (Myrtle Beach, S.C.) (over three years) Cabarrus Regional Chamber 60,000 For a partial challenge grant to provide oper- Miami-Dade Community College 160,000 Foundation (over three years) ating funds (Miami, Fla.) (Kannapolis, N.C.) For the planning phase of a partnership To expand and strengthen the Kids Voting Subtotal: 2 grants $650,000 among Miami-Dade Community College, the North Carolina/Cabarrus County program Artime Theater, the Black Archives/Lyric Theater and the Dr. Rafael A. Peñalver Clinic City Year 300,000 INITIATIVE TO PROMOTE YOUTH that would serve to build cultural bridges DEVELOPMENT AND PREVENT YOUTH (Boston, Mass.) (over three years) VIOLENCE between Miami’s Little Havana and To support one of seven teams of 17- to 24- Overtown neighborhoods year-olds in Detroit to become involved in Grand Forks Public School District $150,000 community service, civic engagement and (Grand Forks, N.D.) (over three years) Unidad of Miami Beach 50,000 leadership development For youth and parent activities designed to (Miami Beach, Fla.) (over two years) prevent alcohol use by young people To prepare immigrant youth to become Coastal Carolina University 25,000 leaders through the Miami Beach Hispanic (Conway, S.C.) The Mental Health Center 150,000 Community Center Immigrant Youth Project For the freedom schooner Amistad to visit of Boulder County (over three years) the port of Georgetown as part of an initia- (Boulder, Colo.) Young at Art Broward 45,000 tive to improve race relations For start-up costs of Families and Schools (Davie, Fla.) Together in three Boulder County schools For a planning grant to bring together Communities In Schools of Miami 40,000 diverse South Florida ethnic groups to (Miami, Fla.) Michigan Institute for 550,000 envision and plan the museum’s Global For the planning and pilot phase of Hello Nonviolence Education (over four years) Village signature exhibition and public Neighbor, a project to engage at-risk youth in (Detroit, Mich.) program gallery in its new permanent facility leadership and community service activities For a partial challenge grant to implement an to promote cultural and community under- entrepreneurial training program for youth Subtotal: 13 grants $1,627,500 standing among residents of a housing project from Detroit’s Empowerment Zone Donors Forum of Miami 60,000 The National Conference 250,000 ECONOMIC DEVELOPMENT (Miami, Fla.) (over two years) for Community and Justice (over three years) To strengthen regional philanthropic capacity (New York, N.Y.) Center for Innovation Foundation $10,500 For the Youth Leadership Institute in (Grand Forks, N.D.) Florida Immigrant Advocacy Center 600,000 Lexington, Ky. To plan and develop the Entrepreneur (Miami, Fla.) (over three years) Collaborative For operating support for the Impact YMCA of Metropolitan Columbus 180,000 Advocacy Program, which seeks to protect (Columbus, Ga.) (over three years) Center for Technology, 10,000 and promote the civil and human rights of To implement Y-WOLF, an after-school Enterprise and Development immigrants in Florida program in the Farley Homes Neighborhood (Delray Beach, Fla.) To support a small-business incubator Florida Special Olympics 50,000 Subtotal: 5 grants $1,280,000 providing services, training and facilities to (Kissimmee, Fla.) emerging businesses For a planning grant to develop strategies to involve people from different cultures and backgrounds in Special Olympics 2001 ANNUAL REPORT 43

COMMUNITY PARTNERS Committee for Dignity and 80,000 Jewish Employment and Vocational 54,550 City of Boulder 80,000 Fairness for the Homeless Service (over two years) (Boulder, Colo.) Housing Development (Philadelphia, Pa.) To expand the Family Independence (Philadelphia, Pa.) For support services and incentives to Initiative to a fourth site and add an after- For Work Options Now, a pilot work- remove barriers to completion of training school program readiness program programs for welfare recipients enrolled in The College Assistance Program 200,000 welfare-to-work programs Community Culinary School of Charlotte 64,000 of Dade County (over two years) (Charlotte, N.C.) One Community One Goal 125,000 (Coral Gables, Fla.) To start a catering business to support a (Miami, Fla.) (over two years) For operating support and an endowment nonprofit organization that provides training For a web site to promote information fund to provide financial support for Miami- and job placement for chronically unem- technology and e-business industries in the Dade County students in higher education ployed people region, match skilled applicants to industry Communities In Schools of Wichita/ 111,500 needs and promote South Florida as a Sedgwick County Downtown Leadership Group 110,000 competitive high technology center (Wichita, Kan.) (Grand Forks, N.D.) (over four years) To build organizational capacity by hiring a To hire an executive director to develop and Philabundance 60,000 part-time development director implement coordinated activities that pro- (Philadelphia, Pa.) mote Grand Forks’ and East Grant Forks’ To train former welfare recipients to work in Education Foundation of Palm Beach 90,000 downtowns the food service industry County (over two years) (West Palm Beach, Fla.) Goodwill Industries of South Florida 200,000 San Jose First Community Services 50,000 To implement the IMPACT II teacher (Miami, Fla.) (San Jose, Calif.) (over two years) professional-development and networking To enhance the organization’s information For an employment-readiness program program in Palm Beach County management by improving classroom targeting homeless and low-income people computers, telephone and data systems The Education Fund 155,000 Women in Community Service 50,000 (Miami, Fla.) (over three years) Greater Grand Forks 100,000 (Alexandria, Va.) (over two years) To continue the AmeriCorps program, Community Foundation (over three years) For a partial challenge grant for a life- Florida Reads! (Grand Forks, N.D.) management and legal-career management For the Regional Economic Diversification training program for low-income women Florida Atlantic University Foundation 31,000 Program to establish a series of forums (Boca Raton, Fla.) addressing barriers to economic develop- Subtotal: 14 grants $1,514,050 For undergraduate scholarships and graduate ment, regional leadership and celebrating assistantships for the Summer Repertory local successes Theatre, a professional academic theater EDUCATION Greater Miami Progress Foundation 400,000 Academy of Natural Sciences $150,000 Friends of the Library 40,000 (Greater Miami Chamber (over three years) of Philipsburg, Pa. (Philadelphia, Pa.) (over three years) of Commerce) (Philipsburg, Pa.) To expand the Women in Natural Sciences (Miami, Fla.) To relocate the Holt Memorial Library to program of science enrichment and educa- To establish the South Florida Consortium of downtown Philipsburg and support start-up tion for young women from low-income, Higher Education, which will seek to make programming to attract a new clientele single-parent households higher education an essential economic engine and a major contributor to quality of life in Friends of the Saint Paul 215,000 Adopt-A-Classroom 50,000 the region Public Library (Miami, Fla.) (St. Paul, Minn.) For a public awareness campaign about Hope Center 200,000 To fund the costs of financing bonds issued Adopt-A-Classroom, which funnels private (Lexington, Ky.) (over two years) for the restoration of the central library funds into public school classrooms to buy For a program providing long-term recovery, instructional materials, equipment and life-skills training and employment assistance resources for women 44 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

COMMUNITY PARTNERS Gary Educational Development 75,000 The Prichard Committee 100,000 The University of North Dakota 650,000 Foundation for Academic Excellence (over two years) (Grand Forks, N.D.) (over three years) (Gary, Ind.) (Lexington, Ky.) To expand the School as the Center of For a scholarship fund for college-bound For the Commonwealth Institute for Parent Community program, an integrated health high school seniors from Gary Leadership in Fayette County and social services project, to all elementary schools Marshall School 20,000 Ransom Everglades School 40,000 (Duluth, Minn.) (Coconut Grove, Fla.) University of Southern Mississippi 64,500 To renovate a science facility to be used by the For the College Bound initiative through (Hattiesburg, Miss.) school’s students and the Duluth community Summerbridge Miami, a program addressing For a dance residency program to serve racially the educational needs of at-risk students diverse and disadvantaged middle schools Mexican American Legal Defense 150,000 and Educational Fund (over three years) Research for Action 80,000 The Zoological Society of Florida 75,000 (Los Angeles, Calif.) (Philadelphia, Pa.) (over two years) (Miami, Fla.) (over three years) To launch a parent involvement program in To improve literacy, analytical and leadership To develop the Miami Metrozoo Community- San Jose skills among low-income girls between nine Based Science for Youth Project to target high and 18 in North Philadelphia school students Miami-Dade Community College 750,000 (Miami, Fla.) Rutgers University Foundation 500,000 Subtotal: 31 grants $5,373,500 To endow the Florida Center for the Literary (Camden, N.J.) (over two years) Arts at the college’s Wolfson campus in For the Center for Children and Childhood downtown Miami, to promote and advance Studies to further develop and implement the HOUSING AND COMMUNITY DEVELOPMENT the literary arts in all forms Camden Campaign for Children’s Literacy Abriendo Puertas $225,000 Minnesota Humanities Commission 160,000 San Jose State University 500,000 (Miami, Fla.) (over three years) Foundation (St. Paul, Minn.) (over two years) (over three years) For general operating support for diverse To implement the Core Knowledge (San Jose, Calif.) services to strengthen families in East Little curriculum in six urban schools in St. Paul For the construction of the new Martin Havana Luther King Jr. Library Northern State University 32,000 Akron Regional Development Board 100,000 Settlement Music School 120,000 (Aberdeen, S.D.) Educational Fund of Philadelphia For the salary of a coordinator of volunteers (Akron, Ohio) (Philadelphia, Pa.) for the Volunteer Service Clearinghouse For new and improved office space to enhance For an early childhood education initiative Nova Southeastern University 250,000 business services for the region and promote to enhance readiness and learning skills of (Fort Lauderdale, Fla.) (over five years) business growth young children For an information literacy training program Boulder Shelter for the Homeless 27,600 Siena Literacy Center 45,000 in Broward County, giving residents full (Boulder, Colo.) (Redford, Mich.) (over two years) advantage of the university’s new Library, For the Basic Needs Sheltering Program To hire a full-time development director Research and Technology Center Broward Coalition for the Homeless 60,000 United Way of the Midlands 79,500 People Acting in Community Together 90,000 (Fort Lauderdale, Fla.) (Columbia, S.C.) (San Jose, Calif.) (over three years) To employ two former homeless people as For a book distribution program To recruit and train parents to become part-time telephone counselors actively involved in four low-achieving University of Florida Foundation 300,000 elementary schools in San Jose City of Long Beach, Miss. 25,000 (Gainesville, Fla.) (over two years) (Long Beach, Miss.) To endow scholarships for college students at Philadelphia High School Academies 170,000 To develop a master plan to revitalize the the New World School of the Arts in Miami (Philadelphia, Pa.) (over three years) harbor and main street in the downtown area To expand the Middle Grades Project by developing an urban teaching career focus 2001 ANNUAL REPORT 45

COMMUNITY PARTNERS City of Miami Parks and Recreation 395,000 Little River Medical Center 75,000 The Salvation Army (Fort Wayne) 25,000 Department (North Myrtle Beach, S.C.) (over two years) (Fort Wayne, Ind.) (Miami, Fla.) To expand health and dental care programs To provide renovated space for expanded To complete phase one construction of the for the homeless of Horry County counseling, educational and literacy pro- Elizabeth Virrick Park community center and grams for homeless male substance abusers Local Initiatives Support 2,000,000 related park improvements Corporation (over three years) Shake-A-Leg 600,000 The Collins Center for Public Policy 3,000,000 (New York, N.Y.) (Coral Gables, Fla.) (over four years) (Miami, Fla.) (over three years) To strengthen the community development For start-up operation costs for a new water For the Civic Partnership and Design Center, system in Miami’s Overtown neighborhood sports recreational center offering programs which will involve residents in a range of and support the work of local community for youth with disabilities, at-risk youth and sustainable development exercises; and for a development corporations and other able-bodied youngsters community land trust, which will acquire community-based organizations The Trust for Public Land 2,500,000 and hold land for the benefit of the Miami Inner City Angels 500,000 (San Francisco, Calif.) (over four years) Overtown community (Miami, Fla.) For the construction of the pedestrian- Community Partnership for Homeless 600,000 For a challenge grant to construct a com- friendly greenways in Miami’s Overtown and (Miami, Fla.) munity center to serve the Overtown East Little Havana neighborhoods For capital expansion of the downtown community University of Akron Foundation 2,500,000 Homeless Assistance Center Miami Rescue Mission 300,000 (Akron, Ohio) (over five years) Covenant House Michigan 100,000 (Miami, Fla.) (over two years) To implement the University Park (Detroit, Mich.) (over two years) To expand a residential facility in Hollywood Revitalization Plan, an urban renewal To build a transitional living facility for for homeless women and their children strategy for a 40-block, mixed-use neigh- homeless youth borhood surrounding the university New Century Lexington 20,000 Detroit Executive Service Corps 34,000 (Lexington, Ky.) University of Miami 250,000 (Detroit, Mich.) (over two years) For The Community Livability Report, a (Coral Gables, Fla.) For Leaders Circle, an executive management community indicators project For a planning grant to craft a community training program for nonprofit professionals development plan and establish a community Northwest Indiana Quality of Life 27,000 resource center that will serve as the corner- Council East Side Neighborhood Development 90,000 stone of West Coconut Grove’s revitalization Company (over three years) (Gary, Ind.) efforts (St. Paul, Minn.) For a communitywide public-awareness For coordination of the Phalen Corridor initiative and consensus-building campaign YMCA of Greater Miami 1,000,000 Initiative, a comprehensive urban renewal addressing quality of life issues in Northwest (Coral Gables, Fla.) (over two years) effort Indiana To construct the Family YMCA of Coconut Grove and for a permanent endowment fund Habitat for Humanity 600,000 Philadelphians Concerned 120,000 to support the participation of West Grove About Housing (over three years) (Miami, Fla.) (over two years) residents unable to pay membership fees (Philadelphia, Pa.) To build 10 houses in Overtown For Project SET, an education assistance Young Women’s Christian 240,000 HP DEVCO 75,000 program Association of Gary (over three years) (Highland Park, Mich.) (Gary, Ind.) The Salvation Army (Conway, S.C.) 110,000 For phase one of a new housing initiative in For bridge funding as the organization moves (Conway, S.C.) (over three years) Highland Park to a larger space and expands programs For a challenge grant for construction of a Lexington Habitat for Humanity 46,750 new community center, transitional housing, Subtotal: 29 grants $15,645,350 (Lexington, Ky.) disaster and welfare distribution center, and To purchase and renovate a facility for Boys and Girls Club offices, warehouses, resale store and home- owner training center 46 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

COMMUNITY PARTNERS V I T A L I T Y O F C U LT U R A L L I F E The Children’s Theatre of Charlotte 400,000 GableStage 45,000 (Charlotte, N.C.) (Coral Gables, Fla.) Abington Art Center $50,000 To establish an endowment for the Children’s For bridge funding and for the production of (Jenkintown, Pa.) Learning Center The Origins of Happiness in Latin, a play that To provide visual arts internships for at-risk deals with cultural divides in Miami-Dade youth in the tri-county region The Columbus Museum 30,000 County (Columbus, Ga.) Actors’ Summit 50,000 Greater Akron Musical Association 66,000 For educational programs associated with the (Hudson, Ohio) exhibit “An American Century of Photography” (Akron, Ohio) For theater renovations and related equipment For a computer-based musical-composition Concert Association of Florida 50,000 Akron Zoological Park 125,000 education program for middle school (Miami Beach, Fla.) (over two years) (Akron, Ohio) students and to produce a 50th anniversary For a partial challenge grant for the expan- To build Wild Prairie, an exhibit showcasing CD set and historical booklet sion of the Arts Education Outreach Program the animals and environment of the south- Greater Grand Forks Community 21,500 including in-school performances by New western United States Foundation World Symphony and master classes by St. Arden Theatre Company 120,000 (Grand Forks, N.D.) Louis Symphony musicians For a feasibility study to determine the (Philadelphia, Pa.) The Cultural Council of Richland & 150,000 community’s readiness to develop and For audience development, educational and Lexington Counties implement a regional cultural plan community access programs (Columbia, S.C.) Greater Philadelphia Chamber 50,000 The Arts League of Michigan 75,000 For emergency operating funds for the 2001- of Commerce Regional Foundation 02 fiscal year (Detroit, Mich.) (over three years) (Philadelphia, Pa.) To expand the Artist Mentorship Program in Dade Heritage Trust 250,000 For the Chairman’s Circle Project, a collab- public schools and implement the Mentor in (Miami, Fla.) oration of 60 arts and culture organizations Residence Program to provide opportunities For The New American Crucible, a docu- to increase support for and participation in for exceptionally gifted, underserved youth mentary film highlighting South Florida’s the arts ArtSouth 200,000 ethnic and cultural diversity Holocaust Documentation 43,500 (Homestead, Fla.) Detroit Historical Society 235,000 and Education Center To renovate one of ArtSouth’s buildings (Detroit, Mich.) (over two years) (Miami, Fla.) in Homestead to meet the fire code and For a partial challenge grant to expand commu- For “Visas for Life: The Righteous and the requirements of the Americans with nity outreach activities and increase edu- Honorable Diplomats,” an exhibit high- Disabilities Act cational programs for underserved schools lighting diplomats from 26 countries who Bong P-38 Fund 100,000 rescued individuals during the Holocaust Duluth Playhouse 18,000 (Superior, Wis.) International Institute 100,000 (Duluth, Minn.) To build the Richard Bong World War II of Metropolitan Detroit (over three years) For the Children’s Theatre Arts program, Heritage Center (Detroit, Mich.) offering training and performing opportu- Center for Creative Education 150,000 For a partial challenge grant to teach ethnic nities to school-age youth in Duluth and the dancing to middle school students and for (West Palm Beach, Fla.) (over two years) surrounding area ethnic cultural activities in schools and at For continuation and enhancement of Florida Grand Opera 225,000 other public venues, as part of the Roots and Project LEAP, a countywide partnership of (Miami, Fla.) (over three years) Wings Legacy Program the Palm Beach school district, artists and To develop and produce Mussorgsky’s Boris cultural organizations using the arts as tools John Gilmore Riley Center/ 150,000 Godunov as a collaborative effort with other in the teaching of all academic subjects Museum for African-American (over two years) opera companies History and Culture The Children’s Museum 100,000 The Franklin Institute 300,000 (Tallahassee, Fla.) of South Carolina (over three years) (Philadelphia, Pa.) (over three years) For a partial challenge grant for an endow- (Myrtle Beach, S.C.) For the creation and installation of the “Kid ment campaign For a capital campaign to construct a new Science” exhibit children’s museum 2001 ANNUAL REPORT 47

COMMUNITY PARTNERS Jubilate 50,000 Montalvo Association 150,000 Regional Performing Arts Center 150,000 (Miami, Fla.) (over two years) (Saratoga, Calif.) (over two years) (Philadelphia, Pa.) For the Jubilate Arts Preparatory Academy To construct 10 artist-in-residence cottages To complete The Kimmel Center for the and a community building Performing Arts L. Frank Baum Oz Festival 10,000 Museum of Science 1,000,000 Saint Paul Chamber Orchestra Society 200,000 (Aberdeen, S.D.) For Native American programs at the 2001 (Miami, Fla.) (over two years) (St. Paul, Minn.) (over two years) Oz Festival-The Dakota Heritage For a partial challenge grant to serve as the For a three-year capacity-building effort catalyst to solidify site procurement, secure The Latin Quarter Cultural Center 300,000 San Jose Children’s Musical Theater 50,000 public funding and anchor a community of Miami (over two years) (San Jose, Calif.) capital campaign to establish the Science (Miami, Fla.) For s*teller, an online children’s theater Center of the Americas For a partial challenge grant to help buy a production facility to provide centralized arts education New Theater 75,000 San Jose Unified School District 150,000 programs to underprivileged children and (Coral Gables, Fla.) (San Jose, Calif.) their families in East Little Havana For marketing and institutional development To convert the historic Hoover Middle Meadow Brook Performing Arts 50,000 Opera Company of Philadelphia 100,000 School building into a community space for (Rochester, Mich.) (Philadelphia, Pa.) performing and visual arts collaborations To support From Page to Stage, a theater arts To increase the opera’s fund-raising capacity San Jose Jazz Society 20,000 training program for high school students in anticipation of a move to the Academy of (San Jose, Calif.) Music Metropolitan Miami-Dade County 150,000 For relocation and capital expenses (Miami, Fla.) (over two years) Performing Arts Center Trust 1,500,000 Tigertail Productions 50,000 To implement High Five Miami, an arts (Miami, Fla.) (over three years) (Miami, Fla.) (over two years) marketing program targeting young people For a comprehensive assessment of the For arts-related activities at José Martí Park readiness of the Performing Arts Center’s five Miami Art Museum of Dade County 100,000 and other public spaces in Little Havana resident companies to move into the new Association center, the development of transition stabi- Triton Museum of Art 50,000 (Miami, Fla.) lization strategies and the creation of an (Santa Clara, Calif.) To implement a strategic plan and institu- implementation fund To restructure the ArtReach in the Schools tional capacity-building initiatives for future program expansion Philadelphia Festival of the Arts 40,000 (Philadelphia, Pa.) Miami Children’s Museum 1,000,000 Subtotal: 50 grants $8,874,000 For the 2001 Marian Anderson Award and its (Miami, Fla.) related programs For a capital and endowment campaign for WELL-BEING OF CHILDREN AND a new 53,000-square-foot facility on Watson The Philadelphia Orchestra 100,000 FA M I L I E S Association Island (Philadelphia, Pa.) Aberdeen School District 6-1 $70,000 Minnesota Book and Literary Arts 100,000 To expand outreach efforts through neigh- (Aberdeen, S.D.) (over three years) Building (over two years) borhood concerts and a series of short pro- For a home visitation program providing (Minneapolis, Minn.) grams in the concert hall lessons in nutrition, discipline, pediatric To create Open Book, a regional literary health and early childhood literacy to low- center with a commercial bookstore and cafe, Philadelphia Theatre Company 25,000 income parents and for programming expenses (Philadelphia, Pa.) To expand community-outreach programs Alternatives for Girls 250,000 Minnesota Children’s Museum 250,000 (Detroit, Mich.) (St. Paul, Minn.) Plowshares Theatre Company 100,000 To build a new campus to serve girls who are For the “Story Land” exhibit and an endowed (Detroit, Mich.) (over two years) homeless or at risk of homelessness fund for literacy For a partial challenge grant to expand the company’s Performing Arts Training Pro- gram for youth 48 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

COMMUNITY PARTNERS Boys and Girls Club of Baldwin County 75,000 Child Abuse and Neglect Council 35,000 Family Forum 15,800 of Oakland County (Milledgeville, Ga.) (Superior, Wis.) (Pontiac, Mich.) To recruit and train volunteers to work in the To relocate a Project Head Start center For Bringing Children to Safety: A Guide for club’s newly expanded facility Foundation for the Carolinas 90,000 Mandated Reporters, a training project for Boys and Girls Clubs of the Big Bend 42,000 (Charlotte, N.C.) professionals who report suspected child (Tallahassee, Fla.) To improve out-of-school programs through abuse and neglect For staff salaries at a teen center planning, evaluation, extensive training and Child Care Resources 1,885,000 technical assistance for people and organi- Boys & Girls Clubs of Fort Wayne 25,000 (Charlotte, N.C.) (over five years) zations running such programs through (Fort Wayne, Ind.) For Curriculum Matters, a school readiness POST, Partners in Out-of-School Time For Project Learn, a structured and compre- project to be implemented in average child- Gary Art Works 150,000 hensive after-school education enhancement care settings program (Gary, Ind.) City of Groton 22,580 For start-up costs of a youth development Boy Scouts of America 150,000 (Groton, S.D.) program based on careers in the arts (Blue Grass Council) (over three years) To upgrade equipment and renovate a donat- (Lexington, Ky.) Georgetown Child Development Center 40,000 ed building for after-school programs at the For a capital campaign to renovate and (Georgetown, Ky.) Wegner Youth Center upgrade facilities at Camp McKee For a self-assessment leading to accreditation Columbus Regional Tennis Association 60,000 from the National Association for the Boy Scouts of America 30,475 (Columbus, Ga.) (over three years) Education of Young Children (Gulf Stream Council) (over two years) To implement a year-round tennis program (Palm Beach Gardens, Fla.) Informed Families of Miami-Dade 160,000 for at-risk youth at Lakebottom Park To expand the scouting program (Miami, Fla.) Dads and Daughters 16,220 To remodel two floors of the agency’s existing Bread for the World Institute 160,000 (Duluth, Minn.) facility to house a distance-learning center (Washington, D.C.) (over two years) For Daughters and Fathers Growing Together, To alleviate child poverty in Detroit and Jewish Community Services 100,000 a pilot program to strengthen relationships Wichita through leadership development, of South Florida between fathers and daughters local programming and evaluation and (North Miami, Fla.) replication of programs Diversified Youth Services 100,000 For a communications system with links to (Detroit, Mich.) more than 85 programs operated through California State University, 100,000 For the VILLAGE Program, a community- the merger of three social services agencies Long Beach Foundation based after-school education and (Long Beach, Calif.) Junior Achievement 50,000 skill-building initiative for at-risk youth For a planning grant to develop a compre- (Fort Wayne, Ind.) hensive intervention and training project Early Childhood Alliance 213,000 For Exchange City, a hands-on economics focused on the effects of training stipends on (Fort Wayne, Ind.) and entrepreneurship learning program retention rates of early childhood To improve school readiness for Fort Wayne serving fifth- and sixth-grade students professionals children by providing on-site support and Lifetrack Resources 25,000 training for the Paths to Quality program CASA of Aberdeen Fifth Judicial Circuit 35,000 (St. Paul, Minn.) and piloting a Parents as Teachers home (Aberdeen, S.D.) To use home visitation to encourage partic- visitation program at two elementary schools To expand the advocacy program for abused ipation in the Minnesota Family Investment children The Early Childhood Initiative 1,000,000 Program Foundation (over two years) Centre County Skate Board 60,000 Long Beach Community 250,000 (Miami, Fla.) Steering Committee (over two years) College District (over three years) To launch a communitywide child readiness (Pine Grove Mills, Pa.) (Long Beach, Calif.) media campaign addressing the needs of To purchase modular ramps for a skate park To expand the Good Beginnings Never End children ages 5 and younger serving area youth initiative, an effort to improve the quality of home-based child-care providers in the 90806 ZIP code 2001 ANNUAL REPORT 49

COMMUNITY PARTNERS The Lynnwood Foundation 30,000 Philadelphia Physicians for Social 56,300 United Way of Miami-Dade 1,000,000 Responsibility (Charlotte, N.C.) (Miami, Fla.) (over two years) (Philadelphia, Pa.) For a comprehensive report and database of For the proposed Center of Excellence, a To expand Peaceful Posse for Girls, a pro- the school readiness effort in Charlotte national state-of-the-art community learning gram dedicated to interrupting the cycle of laboratory for the early care and education of Macomb County Child Advocacy 25,000 violence among children in distressed children Center/Care House neighborhoods (Mt. Clemens, Mich.) The Unity Care Group 35,000 Philadelphia Youth Tennis 150,000 To expand a forensic medical examination (San Jose, Calif.) program serving physically and sexually (Philadelphia, Pa.) (over three years) For an after-school leadership program abused children To build a new Arthur Ashe Youth Tennis serving at-risk minority youth in foster care Center, a multipurpose recreational facility The Methodist Hospitals 57,000 Victim Offender Reconciliation 17,000 for underserved and minority youth Program of Boulder County (Gary, Ind.) Reach Out and Read 718,500 To expand the Gary Reading Council (Boulder, Colo.) (Somerville, Mass.) To expand a juvenile mediation and educa- The Miami Coalition for a Safe 150,000 For continued expansion of a pediatric liter- tion program and Drug-Free Community (over two years) acy program in Charlotte and Philadelphia (Coral Gables, Fla.) YMCA of Santa Clara Valley 150,000 For a communitywide education program on The Salvation Army 250,000 (San Jose, Calif.) (over three years) club drugs (Miami, Fla.) For The Cornerstone Project, a youth devel- For capital support to refurbish the Edison opment program organized by the Youth Miami Lighthouse for the Blind 150,000 facility, which houses diverse activities includ- Alliance of Santa Clara County (Miami, Fla.) ing an after-school program for 45 youths in For a challenge grant for the Blind Children’s Subtotal: 51 grants $8,970,825 Liberty City Endowment San Jose Day Nursery 50,000 Migrant Association of South Florida 20,000 (San Jose, Calif.) (over two years) COMMUNITY GRANTS – OTHER (Boynton Beach, Fla.) For capital improvements American Red Cross $750,000 To expand the Homework Assistance Program (Summit County Chapter) (over two years) for migrant children Starfish Family Services 150,000 (Akron, Ohio) (Inkster, Mich.) (over three years) The National Conference for 40,000 To construct a new service center To expand the therapeutic component of Community and Justice Kids’ Club, an after-school program for at- Catawba River Foundation 65,000 (New York, N.Y.) risk children (Charlotte, N.C.) To expand Camp Anytown USA, a program To strengthen an organization working to to reduce conflict and violence in U.S. schools Thompson Children’s Home 200,000 protect and restore the Catawba River (Charlotte, N.C.) Northwood Children’s Services 50,000 For a capital campaign supporting renova- Colorado Therapeutic Riding Center 20,000 (Duluth, Minn.) tions to a residential treatment center for (Longmont, Colo.) To construct an educational facility for abused and neglected children Toward the construction of an indoor riding troubled and learning-disabled children arena Three Rivers Literacy Alliance 40,625 PACE Center for Girls/Leon County 48,700 (Fort Wayne, Ind.) Foundation for the Carolinas 65,000 (Tallahassee, Fla.) For literacy services for non-English-speak- (Charlotte, N.C.) To establish a computer-assisted basic skills ing residents, especially recent immigrants To strengthen Voices & Choices, an organ- program to increase the academic success of with young children ization studying regional issues and eco- girls who are two to four years behind stan- nomic sustainability dard grade levels United Way of Central Georgia 16,125 (Macon, Ga.) Georgia Legal Services Program 100,000 Palmetto Youth Center 75,000 To host a dialogue day in Milledgeville to (Atlanta, Ga.) (Palmetto, Fla.) develop a community action plan for positive To acquire a building for legal services in For the second phase of renovations to the youth development Macon youth center’s facilities and athletic complex 50 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

COMMUNITY PARTNERS Gulfport Chamber of Commerce 12,000 (Gulfport, Miss.) For a tree preservation program Hospice of the Bluegrass 46,750 (Lexington, Ky.) For a library in the new Bluegrass Center for Grief Education & Counseling Info Line Inc. 100,000 (Akron, Ohio) For start-up costs for a 211 telephone information and referral call center Philadelphia Geriatric Center 30,000 (Jenkintown, Pa.) To publicize the Counseling for Caregivers program The Shepherd’s House 83,500 (Lexington, Ky.) For a challenge grant to acquire an additional residence to expand client services St. Vincent de Paul Society Council 250,000 of Santa Clara County (over three years) (San Jose, Calif.) To purchase and rehabilitate a building to house a comprehensive multiservice center including health clinic, food program, law center and day-worker program Subtotal: 11 grants $1,522,250 2001 ANNUAL REPORT 51

JOURNALISM INITIATIVES American Society of Newspaper $4,830,000 Educational Television Association 245,000 International Longevity Center-USA 259,000 Editors Foundation of Metropolitan Cleveland (over three years) (over two years) (New York, N.Y.) (Reston, Va.) (Cleveland, Ohio) To conduct regional workshops on the To revitalize high school journalism and To help merge a public radio and public science of aging and the economic and social emphasize the role of the First Amendment television station into a new, public-designed impact of aging digital partnership The Atlantic Council 148,000 International Women’s Media 225,000 of the United States (over two years) Federation of American Scientists 70,000 Foundation (over two years) Fund (Washington, D.C.) (over two years) (Washington, D.C.) To support free, democratic and independent (Washington, D.C.) To create an interactive training and media in eastern and central Europe by For ongoing support of programs to reduce networking site on the World Wide Web sponsoring journalists from the region government security secrecy focused on women in the media Ball State University 100,000 George Washington University 98,000 Internews Network 250,000 (Muncie, Ind.) (over two years) (Washington, D.C.) (over two years) (Arcata, Calif.) To develop a center of student writing To produce The Kalb Report, a series of tele- To promote world Internet freedom coaches and to survey journalism educators vised forums on news economic issues Investigative Reporters and Editors 2,000,000 about the importance of writing coaches for Harvard University 75,000 (Columbia, Mo.) (over four years) student journalists (Cambridge, Mass.) For a partial challenge grant for an IRE Center for Public Integrity 1,000,000 To evaluate the first five groups of the endowment and operating support (Washington, D.C.) (over three years) summer Institute on the Media and Link Media 250,000 For general support of in-depth investigative American Democracy (San Rafael, Calif.) studies Harvard University 245,000 To launch World Link TV’s MOSAIC: World Center for Investigative Reporting 60,000 (Cambridge, Mass.) News from the Middle East, a daily television (San Francisco, Calif.) (over three years) For a program of the Joan Shorenstein Center series translating news reports produced by To provide young reporters with investigative on the Press, Politics and Public Policy to national broadcasters in Middle Eastern reporting training improve coverage of the 2004 elections countries Columbia University 250,000 The Institute for Educational Inquiry 300,000 National Security Archive Fund 250,000 (New York, N.Y.) (Seattle, Wash.) (over three years) (Washington, D.C.) To produce the documentary She Says To strengthen journalism concerning educa- For operating support tion issues Columbia University 250,000 Northwestern University 250,000 Inter-American Dialogue 90,000 (New York, N.Y.) (Evanston, Ill.) (over two years) To formalize and expand the Committee of (Washington, D.C.) To establish a web site reporting news eco- Concerned Journalists’ traveling curriculum For a joint conference with the Inter American nomic benchmarks on journalism values Press Association to educate international NOW Legal Defense and Education 250,000 lawmakers about issues of press freedom Committee to Protect Journalists 250,000 Fund (over two years) International Center for Global 75,000 (New York, N.Y.) (New York, N.Y.) Communications Foundation To establish senior fellow positions at To build the capacity of Women’s Enews, a (New York, N.Y.) University of Michigan-Ann Arbor, Stanford nonprofit online news service, and its To support The Media Channel, a web site University, Harvard University and University companion web site, www.womensenews.org disseminating news and information from a of Maryland Ohio University Foundation 550,000 wide variety of sources worldwide Crimes of War Education Project 200,000 (Athens, Ohio) (over three years) International Communications Forum 25,000 (Washington, D.C.) (over two years) To endow the Knight Fellowships in (Washington, D.C.) To instruct reporters on the laws of war Newsroom Graphics Management For the International Communications The Pennsylvania State University 250,000 Forum in Denver (University Park, Pa.) (over five years) To continue support of the Knight Diversity Scholars Program 52 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

JOURNALISM INITIATIVES Quill and Scroll Corporation 12,000 University of St. Thomas 150,000 (Iowa City, Iowa) (St. Paul, Minn.) (over three years) To publish and distribute the revised To create the J-Zone, a multicultural, multi- Principal’s Guide to Scholastic Journalism media immersion journalism camp for minority youth Radio and Television News Directors 429,000 Foundation Subtotal: 39 grants $15,774,000 (Washington, D.C.) For a planning grant to strengthen high school electronic journalism, with emphasis on the First Amendment Salzburg Seminar in American Studies 600,000 (Middlebury, Vt.) (over three years) For journalists to participate in the Salzburg Seminar, to develop post-seminar activities for the participants and to evaluate the program Southern Newspaper Publishers 250,000 Association Foundation (Atlanta, Ga.) To launch the SNPA Traveling Campus Program Trustees of The Corcoran 400,000 Gallery of Art (over three years) (Washington, D.C.) To establish a photojournalism concentration taught by top professionals within a four-year Bachelor of Fine Arts degree in photography University of Georgia Foundation 25,000 (Athens, Ga.) For support of the Annual Surveys of Journalism and Mass Communication University of Michigan-Ann Arbor 300,000 (Ann Arbor, Mich.) (over three years) To add two foreign journalists each year to the midcareer fellows program University of Mississippi 338,000 (University, Miss.) (over three years) To conduct seminars for journalists about nonprofit organizations The University of North Dakota 175,000 (Grand Forks, N.D.) (over three years) To establish the Native Media Center program University of South Carolina 250,000 Educational Foundation (Columbia, S.C.) To establish the Newsplex to teach multimedia journalism 2001 ANNUAL REPORT 53

NATIONAL VENTURE FUND COLL ABORATIVE ARTS MARKETING Boston Symphony Orchestra 40,000 The HistoryMakers 240,000 INITIATIVE (Boston, Mass.) (Chicago, Ill.) For a symposium addressing the role of the To produce a comprehensive Internet- Arts Council of Silicon Valley $750,000 music director in modern orchestras in the accessible video archive of the personal (San Jose, Calif.) (over three years) United States stories of noted and unsung African- To create the Silicon Valley Cultural Americans Marketing Partnership Chicago Theatre Group 250,000 Human Interaction Research Institute 80,000 (Chicago, Ill.) Community Foundation 800,000 for Southeastern Michigan (over three years) For an endowment to support the Goodman (Encino, Calif.) (over three years) (Detroit, Mich.) Studio, an initiative dedicated to the research To develop and operate a national database To establish the Metro Detroit Cultural and development of new work for philanthropic capacity-building programs Marketing Network Committee on the Constitutional 15,000 ImpactOnline 750,000 System North Dakota Museum of Art 83,000 (San Francisco, Calif.) (over three years) (Washington, D.C.) (Grand Forks, N.D.) For operating support for VolunteerMatch, a For a planning grant to engage citizens in To determine the feasibility and design of a program that helps nonprofits find, recruit public dialogue about responsive government cooperative arts marketing program based in and manage volunteers and potential constitutional reforms Grand Forks Institute for Women’s Policy Research 220,000 Community Anti-Drug Coalitions 250,000 (Washington, D.C.) Subtotal: 3 grants $1,633,000 of America To examine formal evaluations of recent (Alexandria, Va.) strategies to raise child-care worker wages, To provide general operating support and to MAGIC OF MUSIC SYMPHONY extract lessons for local practitioners to INITIATIVE: PHASE II develop coalitions in Knight communities employ, and disseminate tools to state and national decision-makers Brooklyn Philharmonic Orchestra $50,000 Creative Capital Foundation 225,000 (Brooklyn, N.Y.) (New York, N.Y.) (over three years) Kids Voting USA 200,000 For a Phase Two planning grant to partner For grants and technical assistance services (Tempe, Ariz.) with orchestras in St. Louis, Charlotte, Fort for individual artists To develop the Latino Outreach Initiative for Wayne and Miami to field test programs and the 2002 elections Demos 200,000 strategies and develop a plan to attract new (New York, N.Y.) audiences through nonsubscription, com- Local Initiatives Support 2,000,000 To develop a communications strategy and Corporation munity-based programming (over three years) enhance the organization’s communications (New York, N.Y.) capacity Subtotal: 1 grant $50,000 For the NCDI 2D, the second decade of the National Community Development Initiative The Enterprise Foundation 2,000,000 (Columbia, Md.) (over three years) NATIONAL VENTURE FUND GRANTS Mercer University 245,000 For the NCDI 2D, the second decade of the (Macon, Ga.) American Composers Forum $400,000 National Community Development Initiative For a three-year evaluation of the 120-block, (St. Paul, Minn.) $9.5 million Central South Revitalization For 10 new Continental Harmony residencies Florida Institute for Economic Justice 20,000 project in Knight communities (Tallahassee, Fla.) For leadership development programs in The Miller Center Foundation 200,000 American String Teachers 200,000 collaboration with the Center for Policy (Charlottesville, Va.) Association (over two years) Alternatives for new Florida legislators For public education activities related to The (Reston, Va.) National Commission on Federal Election To develop projects at 15 colleges and Hispanics in Philanthropy 500,000 Reform, a bipartisan effort to improve and universities to encourage string players to (Emeryville, Calif.) (over two years) standardize federal election processes become string teachers in public schools For The Funders’ Collaborative to develop the organizational capacity of Latino nonprofits in Miami, Philadelphia and Boulder 54 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

NATIONAL VENTURE FUND Museum of Contemporary Art 430,000 OMG Center for Collaborative 207,000 University of North Carolina 83,000 Learning at Chapel Hill (over two years) (Chicago, Ill.) (Philadelphia, Pa.) (Chapel Hill, N.C.) To present the exhibition “The Short Century: To commission and design studies and collat- To complete the development and pilot testing Independence and Liberation Movements in eral professional development tools to assist of the School Success Profile and to design Africa, 1945-1994” at the Museum of foundations in improving their effectiveness an experiment that will test its effectiveness Contemporary Art and at P.S. 1 in New York in helping counselors improve outcomes Parents for Public Schools 150,000 National Center for Family Literacy 1,500,000 for children (Jackson, Miss.) (Louisville, Ky.) (over three years) University of Wisconsin-Madison 75,000 For general operating support and to explore For a national public awareness campaign potential roles in Knight communities (Madison, Wis.) promoting family literacy, designed and imple- To develop and implement the Community mented by the Advertising Council, and to People for the American Way 250,000 Information Corps model in St. Paul, which monitor its effects Foundation will direct young people’s interest in new (Washington, D.C.) National Constitution Center 465,000 media and the Internet toward civic engage- To expand a national civic participation project (Philadelphia, Pa.) ment and public work To work with Public Agenda on a national Princeton University 225,000 Voter Foundation 175,000 study of the public’s understanding of consti- (Princeton, N.J.) (over two years) (Boston, Mass.) (over two years) tutional issues; to develop public education, For a partial challenge grant for Reinventing To develop a business plan for a web-based school curriculum and outreach activities; Downtown: Culture, Sports and Visitors in journalistic, civic and educational enterprise and to update the organization’s web site to the New American City, a study of the role of designed to promote a more active and encourage civic education in schools urban cultures in American cities, including informed electorate six Knight communities National Endowment for the 2,500,000 Humanities (over five years) Subtotal: 38 grants $23,104,000* Southern Arts Federation 23,000 (Washington, D.C.) (Atlanta, Ga.) To establish a nationwide network of 10 For the Southern Visions traveling exhib- humanities centers devoted to research, *$2,000,000 was subsequently forfeited by a itions program and related educational activi- cultural preservation, public programming grantee. ties in 11 southeastern Knight communities and lifelong learning about America’s regions Steppenwolf Theatre Company 250,000 National Trust for Historic 2,500,000 (Chicago, Ill.) Preservation in (over three years) For an endowment grant to sustain the cre- the United States ation of new work through the New Plays (Washington, D.C.) Initiative For integrated, ongoing assistance in preservation-based community revitalization in Teach for America 3,000,000 Knight Foundation communities (New York, N.Y.) (over three years) To expand Teach for America’s teaching corps New American Schools 2,000,000 to 4,000 by 2004 (Arlington, Va.) (over two years) To support New American Schools’ plan The Teachers Network 750,000 to achieve financial self-sufficiency while (New York, N.Y.) (over three years) continuing its efforts to promote and To support and expand new and existing implement comprehensive, research-based IMPACT II programs for teachers in Knight school reform models communities New Profit 250,000 University of Maryland College 236,000 (Cambridge, Mass.) Park Foundation (over two years) For operating support and to explore opportu- (College Park, Md.) nities for partnerships in Knight communities To develop tools to measure and encourage civic engagement 2001 ANNUAL REPORT 55

OTHER SPECIAL GRANTS AND SPECIAL STRENGTHENING PHIL ANTHROPY 28 Trustee-Recommended Grants $280,000 Association for Research $15,000 on Nonprofit Organizations and Voluntary Action (Indianapolis, Ind.) To provide local support for the organiza- GRAND TOTAL: 319 grants $86,433,075 tion’s 2001 national conference in Miami The Communications Network 45,000 (Washington, D.C) To strengthen the organizational capacity of this philanthropic affinity group Council on Foundations 44,600 (Washington, D.C) For general operating support The Foundation Center 30,000 (New York, N.Y.) For general operating support Subtotal: 4 grants $134,600 56 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

S E P T. 1 1 F U N D R E C I P I E N T S Knight trustees committed $10 million after the Sept. 11 terrorist attacks. In February 2002, the following 246 social service providers in Knight Foundation’s 26 communities received grants of $5,000 to $150,000 to help the indirect victims of the attacks and the weakened economy. ABERDEEN, S.D. Opportunity Parish Ecumenical 25,000 The Center for Information & 10,000 Neighborhood Ministry Crisis Services CASA of Aberdeen Fifth $25,000 (Akron, Ohio) (Lantana, Fla.) Judicial Circuit (Aberdeen, S.D.) The Salvation Army (Akron) 50,000 The Lord’s Place and Family Shelter 15,000 West Palm Beach (Akron, Ohio) Safe Harbor 25,000 (West Palm Beach, Fla.) (Aberdeen, S.D.) Summit County Community Drug Board 25,000 Ruth Rales Jewish Family Service 10,000 (Akron, Ohio) The Salvation Army (Aberdeen) 20,000 (Boca Raton, Fla.) (Aberdeen, S.C.) Young Men’s Christian Association 25,000 of Akron St. Paul Western Palm Beach County 20,000 AKRON, OHIO Food Distribution Center (Akron, Ohio) ACCESS Inc. $50,000 (Belle Glade, Fla.) BILOXI, MISS. (Akron, Ohio) BOULDER, COLO. Boys and Girls Clubs of the Gulf Coast $10,000 Akron Community Service Center 100,000 Boulder County Safehouse $21,930 (Biloxi, Miss.) & Urban League (Boulder, Colo.) (Akron, Ohio) Catholic Social & Community Services 10,000 Boulder Shelter for the Homeless 22,210 (Biloxi, Miss.) Akron-Canton Regional Foodbank 100,000 (Boulder, Colo.) (Akron, Ohio) Gulf Coast Women’s Center 10,000 for Nonviolence Emergency Family Assistance 33,520 Battered Women’s Shelter 50,000 Association (Biloxi, Miss.) (Akron, Ohio) (Boulder, Colo.) Mental Health Association 20,000 Boys & Girls Clubs of Summit County 50,000 of Mississippi The Inn Between of Longmont 10,000 (Akron, Ohio) (Gulfport, Miss.) (Longmont, Colo.) Catholic Social Services 25,000 Moore Community House 5,000 Longmont Coalition for Women 12,340 of Summit County in Crisis (Biloxi, Miss.) (Akron, Ohio) (Longmont, Colo.) The Salvation Army (Biloxi) 10,000 Good Neighbors 25,000 BRADENTON, FLA. (Biloxi, Miss.) (Akron, Ohio) Children’s Haven & Adult Community $40,000 The Salvation Army (Gulfport) 20,000 Habitat for Humanity of Greater Akron 25,000 Services (Gulfport, Miss.) (Akron, Ohio) (Sarasota, Fla.) South Mississippi Exchange Clubs 15,000 Haven of Rest Ministries 50,000 HOPE Family Services 20,000 Child Abuse Prevention Center (Akron, Ohio) (Bradenton, Fla.) (Gulfport, Miss.) Info Line 40,000 Manatee Children’s Services 15,000 BOCA RATON, FL A . (Akron, Ohio) (Bradenton, Fla.) Aid to Victims of Domestic Abuse 50,000 Interval Brotherhood Homes 100,000 Manatee Opportunity Council 12,500 (Delray Beach, Fla.) (Akron, Ohio) (Bradenton, Fla.) The Center for Family Services 50,000 Let’s Grow Akron 10,000 of Palm Beach County Meals on Wheels Plus of Manatee 12,500 (Akron, Ohio) (West Palm Beach, Fla.) (Bradenton, Fla.) 2001 ANNUAL REPORT 57

S E P T. 1 1 F U N D R E C I P I E N T S CHARLOTTE, N.C. Harvest Hope Food Bank 75,000 Food Bank of Oakland County 50,000 (Columbia, S.C.) (Pontiac, Mich.) Cabarrus Cooperative Christian $25,000 Ministry Sistercare 50,000 Forgotten Harvest 75,000 (Concord, N.C.) (Columbia, S.C.) (Southfield, Mich.) Catholic Social Services of the 50,000 COLUMBUS, GA. Gleaners Community Food Bank 75,000 Diocese of Charlotte (Detroit, Mich.) (Charlotte, N.C.) Columbus Baptist Association $15,000 (Columbus, Ga.) Goodwill Industries of Greater Detroit 50,000 Charlotte Center for Urban Ministry 25,000 (Detroit, Mich.) (Charlotte, N.C.) House of Restoration 40,000 (Phenix City, Ala.) HAVEN 75,000 Charlotte Rescue Mission 50,000 (Pontiac, Mich.) (Charlotte, N.C.) House of T.I.M.E. 40,000 (Columbus, Ga.) HelpSource 25,000 Community Culinary School of Charlotte 10,000 (Ann Arbor, Mich.) (Charlotte, N.C.) Open Door Community House 25,000 (Columbus, Ga.) Jewish Family Service 75,000 Crisis Assistance Ministry 150,000 (Southfield, Mich.) (Charlotte, N.C.) Second Harvest Food Bank of the 25,000 Chattahoochee Valley L.I.F.T. Women’s Resource Center 25,000 CUP Inc. 10,000 (Columbus, Ga.) (Detroit, Mich.) (Charlotte, N.C.) Uptown Outreach Food Pantry 15,000 Lighthouse Emergency Services 75,000 Day Shelter 25,000 (Columbus, Ga.) (Pontiac, Mich.) (Charlotte, N.C.) Valley Rescue Mission 40,000 Macomb County Rotating Emergency 25,000 The Family Center 25,000 (Columbus, Ga.) Shelter Team (Charlotte, N.C.) (Mt. Clemens, Mich.) D E T R O I T, M I C H . Goodwill Industries of Southern 10,000 Ozone House 25,000 Piedmont Arab Community Center for $100,000 (Ann Arbor, Mich.) Economic and Social Services (Charlotte, N.C.) (Dearborn, Mich.) Society of St. Vincent de Paul 75,000 Pilgrims’ Inn 25,000 of the City of Detroit Arab-Chaldean Community Social 100,000 (Rock Hill, S.C.) (Detroit, Mich.) Services Council The Salvation Army 25,000 (Southfield, Mich.) SOS Community Services 25,000 (Rock Hill, S.C.) (Ypsilanti, Mich.) Boysville of Michigan 25,000 Second Harvest/Metrolina Food Bank 50,000 (Clinton, Mich.) St. Peter’s Home for Boys 25,000 (Charlotte, N.C.) (Detroit, Mich.) Coalition on Temporary Shelter 25,000 Turning Point of Union County 25,000 (Detroit, Mich.) Starfish Family Services 25,000 (Monroe, N.C.) (Inkster, Mich.) Covenant House Michigan 25,000 United Family Services 25,000 (Detroit, Mich.) Think Detroit 25,000 (Charlotte, N.C.) (Detroit, Mich.) Detroit Rescue Mission Ministries 75,000 COLUMBIA, S.C. (Detroit, Mich.) Warren Conner Development Coalition 25,000 Family Service Center of S.C. $50,000 (Detroit, Mich.) Eastside Emergency Center 25,000 (Columbia, S.C.) (Detroit, Mich.) DULUTH, MINN. Focus: Hope 100,000 Boys and Girls Club of Superior $10,000 Goodwill Industries 25,000 (Detroit, Mich.) (Superior, Wis.) (Greenville, S.C.) 58 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

S E P T. 1 1 F U N D R E C I P I E N T S L O N G B E A C H , C A L I F. Boys Club of Duluth 10,000 The Salvation Army (Fort Wayne) 10,000 (Duluth, Minn.) (Fort Wayne, Ind.) Boys and Girls Clubs of Long Beach $70,000 (Long Beach, Calif.) Center Against Sexual and Domestic 5,000 SCAN 10,000 Abuse (Fort Wayne, Ind.) The Children’s Clinic 50,000 (Superior, Wis.) (Long Beach, Calif.) Turnstone Center for Disabled 5,000 Damiano of Duluth 10,000 Children & Adults Long Beach Day Nursery 50,000 (Duluth, Minn.) (Fort Wayne, Ind.) (Long Beach, Calif.) First Witness Child Abuse Resource 20,000 Vincent House 25,000 New Image Emergency Shelter 10,000 Center (Fort Wayne, Ind.) for the Homeless (Duluth, Minn.) (Long Beach, Calif.) Young Men’s Christian Association of 20,000 Second Harvest Northern Lakes 20,000 Fort Wayne Sexual Assault Crisis Agency 20,000 Food Bank (Fort Wayne, Ind.) (Long Beach, Calif.) (Duluth, Minn.) Young Women’s Christian Association 20,000 MACON, GA. Women’s Coalition 20,000 of Fort Wayne Goodwill Industries of Middle Georgia $25,000 (Duluth, Minn.) (Fort Wayne, Ind.) (Macon, Ga.) Young Men’s Christian Association 5,000 G A R Y, I N D . of Douglas County Lighthouse Mission 10,000 Crisis Center $40,000 (Superior, Wis.) (Macon, Ga.) (Gary, Ind.) Loaves and Fishes 25,000 FORT WAYNE, IND. The Horace Mann-Ambridge 50,000 (Macon, Ga.) Neighborhood Improvement Organization AIDS Task Force $10,000 (Gary, Ind.) (Fort Wayne, Ind.) Macon Outreach at Mulberry 25,000 (Macon, Ga.) The Salvation Army 25,000 American Red Cross of Northeast 10,000 Indiana (Munster, Ind.) Middle Georgia Community Food Bank 25,000 (Fort Wayne, Ind.) (Macon, Ga.) St. Jude House 20,000 Associated Churches of Fort Wayne 10,000 (Crown Point, Ind.) The Salvation Army (Macon Corps) 75,000 and Allen County (Macon, Ga.) GRAND FORKS, N.D. (Fort Wayne, Ind.) MIAMI, FLA. Community Violence Intervention $30,000 Boys & Girls Club of Fort Wayne 25,000 Center ASPIRA of Florida $35,000 (Fort Wayne, Ind.) (Grand Forks, N.D.) (Miami, Fla.) Catholic Charities 10,000 Prairie Harvest Human Services 20,000 Big Brothers Big Sisters of Greater 30,000 (Fort Wayne, Ind.) Foundation Miami (Grand Forks, N.D.) Community Harvest Food Bank 10,000 (Miami, Fla.) of Northeast Indiana The Salvation Army of Grand Forks 50,000 Broward Coalition for the Homeless 35,000 (Fort Wayne, Ind.) (Grand Forks, N.D.) (Fort Lauderdale, Fla.) Fort Wayne Urban League 5,000 L E X I N G T O N , K Y. Broward Partnership for the Homeless 30,000 (Fort Wayne, Ind.) (Fort Lauderdale, Fla.) Community Action Council for $100,000 Lutheran Social Services 20,000 Lexington–Fayette, Bourbon, Camillus House 25,000 (Fort Wayne, Ind.) Harrison and Nicholas Counties (Miami, Fla.) (Lexington, Ky.) Park Center 10,000 Catholic Charities of the Archdiocese 125,000 (Fort Wayne, Ind.) God’s Pantry Food Bank 50,000 of Miami (Lexington, Ky.) (Miami, Fla.) 2001 ANNUAL REPORT 59

S E P T. 1 1 F U N D R E C I P I E N T S CHARLEE of Dade County 40,000 Women in Distress of Broward County 20,000 Philabundance 100,000 (Coral Gables, Fla.) (Fort Lauderdale, Fla.) (Philadelphia, Pa.) Community Partnership For Homeless 125,000 MILLEDGEVILLE, GA. Philadelphia Committee for the 100,000 Homeless (Miami, Fla.) American Red Cross $30,000 (Philadelphia, Pa.) (Oconee Valley Chapter) Cooperative Feeding Program 30,000 (Milledgeville, Ga.) Union Organization for Social Service 50,000 (Fort Lauderdale, Fla.) (Pennsauken, Pa.) Meals on Wheels of Baldwin County 5,000 Daily Bread Food Bank 60,000 (Milledgeville, Ga.) The Village of Arts and Humanities 150,000 (Miami, Fla.) (Philadelphia, Pa.) The Salvation Army (Milledgeville) 30,000 Family Resource Center of South Florida 50,000 (Milledgeville, Ga.) Youth Service 25,000 (Miami, Fla.) (Philadelphia, Pa.) St. Vincent de Paul Society 10,000 Farm Share 50,000 (Milledgeville, Ga.) S A N J O S E , C A L I F. (Florida City, Fla.) MYRTLE BEACH, S.C. Asian Americans for Community $10,000 Habitat for Humanity of Greater Miami 45,000 Involvement of Santa Clara County (Miami, Fla.) CareTeam $15,000 (San Jose, Calif.) (Myrtle Beach, S.C.) Jubilee Center of South Broward 15,000 Bill Wilson Marriage and Family 10,000 (Hollywood, Fla.) Community Kitchen of Myrtle Beach 15,000 Counseling Center (Myrtle Beach, S.C.) (Santa Clara, Calif.) Lutheran Services Florida 20,000 (Miami, Fla.) S.O.S. Health Care 30,000 Bread of Life EPA 15,000 (Myrtle Beach, S.C.) (East Palo Alto, Calif.) Miami Rescue Mission 125,000 (Miami, Fla.) The Salvation Army (Conway, S.C.) 40,000 Catholic Charities of Santa Clara 35,000 (Conway, S.C.) County Mount Bethel Human Services 25,000 (San Jose, Calif.) Corporation P H I L A D E L P H I A , PA . (Fort Lauderdale, Fla.) CityTeam Ministries 50,000 Committee for Dignity and Fairness $100,000 (San Jose, Calif.) The Salvation Army 125,000 for the Homeless Housing Development (Miami Area Command) (Philadelphia, Pa.) Clara-Mateo Alliance 10,000 (Miami, Fla.) (Menlo Park, Calif.) Community Service Council 50,000 The Salvation Army of Broward County 65,000 of Chester County Concern for the Poor 20,000 (Fort Lauderdale, Fla.) (West Chester, Pa.) (San Jose, Calif.) Shepherd’s Way 40,000 Family Service of Chester County 100,000 Cupertino Community Services 10,000 (Wilton Manors, Fla.) (West Chester, Pa.) (Cupertino, Calif.) South Florida Food Recovery 30,000 Family Service of Montgomery County 25,000 Diocese of San Jose 10,000 (North Miami, Fla.) (Norristown, Pa.) (Gilroy, Calif.) Starting Over 15,000 Food Bank of South Jersey 25,000 Ecumenical Hunger Program 20,000 (Fort Lauderdale, Fla.) (Pennsauken, Pa.) (East Palo Alto, Calif.) Susan B. Anthony Center 15,000 Greater Philadelphia Food Bank 150,000 Emergency Housing Consortium 35,000 (Lauderdale Lakes, Fla.) (Philadelphia, Pa.) of Santa Clara County (San Jose, Calif.) Switchboard of Miami 20,000 The Greater Philadelphia Urban 150,000 Affairs Coalition (Miami, Fla.) Homeless Care Force 15,000 (Philadelphia, Pa.) (Santa Clara, Calif.) Voices For Children Foundation 20,000 (Miami, Fla.) 60 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

S E P T. 1 1 F U N D R E C I P I E N T S Immigrant Resettlement and 10,000 Urban Ministry of Palo Alto 10,000 Lutheran Social Services 10,000 Cultural Center of North Florida (Palo Alto, Calif.) (San Jose, Calif.) (Tallahassee, Fla.) Youth and Family Assistance 20,000 Inn Vision of Santa Clara Valley 65,000 Mothers in Crisis 20,000 (Redwood, Calif.) (San Jose, Calif.) (Tallahassee, Fla.) S T. PA U L , M I N N . Loaves and Fishes Family Kitchen 15,000 PACE Center for Girls 10,000 Alexandra House $17,000 (San Jose, Calif.) (Tallahassee, Fla.) (Blaine, Minn.) Next Door Solutions to Domestic 20,000 Telephone Counseling & 30,000 Lifetrack Resources 33,000 Violence Referral Service (St. Paul, Minn.) (San Jose, Calif.) (Tallahassee, Fla.) Neighbor to Neighbor 101,000 Planned Parenthood Mar Monte 10,000 Turn About 10,000 (White Bear Lake, Minn.) (San Jose, Calif.) (Tallahassee, Fla.) S T A T E C O L L E G E , PA . Pro Bono Project of Santa Clara County 10,000 WICHITA , KAN. (San Jose, Calif.) American Red Cross $10,000 Catholic Charities $15,000 (Centre Communities Chapter) (Wichita, Kan.) RotaCare Bay Area 10,000 (State College, Pa.) (Gilroy, Calif.) Center for Health & Wellness 25,000 Centre County Women’s Resource 35,000 (Wichita, Kan.) Sacred Heart Community Service 10,000 Center (San Jose, Calif.) (State College, Pa.) Center of Hope 15,000 (Wichita, Kan.) The Salvation Army (San Jose Corps) 65,000 Food Bank of State College 20,000 (San Jose, Calif.) (State College, Pa.) Episcopal Social Services 10,000 (Wichita, Kan.) San Jose Day Nursery 15,000 TALL AHASSEE, FL A . (San Jose, Calif.) Family Services Institute 10,000 America’s Second Harvest $10,000 (Wichita, Kan.) San Jose First Community Services 15,000 of the Big Bend (San Jose, Calif.) (Tallahassee, Fla.) Guadalupe Clinic 25,000 (Wichita, Kan.) Second Harvest Food Bank of Santa 100,000 Big Bend Cares 10,000 Clara and San Mateo Counties (Tallahassee, Fla.) The Hunter Health Clinic 25,000 (San Jose, Calif.) (Wichita, Kan.) Brehon Institute for Human Services 10,000 Shelter Network of San Mateo County 25,000 (Tallahassee, Fla.) Inter-Faith Ministries Wichita 15,000 (Burlingame, Calif.) (Wichita, Kan.) Bridgeway House 10,000 St. Vincent de Paul of San Mateo 20,000 (Tallahassee, Fla.) Kansas Foodbank Warehouse 25,000 (San Mateo, Calif.) (Wichita, Kan.) Capital Area Healthy Start Coalition 30,000 St. Vincent de Paul Society Council 25,000 (Tallahassee, Fla.) Lutheran Social Service of Kansas 10,000 of Santa Clara County and Oklahoma Capital City Youth Services 20,000 (San Jose, Calif.) (Wichita, Kan.) (Tallahassee, Fla.) Sunnyvale Community Services 25,000 South Central Improvement 10,000 Children’s Home Society of Florida 10,000 (Sunnyvale, Calif.) Alliance/New Life (North Central Division) (Wichita, Kan.) Support Network for Battered Women 20,000 (Tallahassee, Fla.) (Mountain View, Calif.) Wichita Children’s Home 15,000 ECHO Outreach Ministries 20,000 (Wichita, Kan.) Tooth Mobile 20,000 (Tallahassee, Fla.) (Santa Clara, Calif.) 2001 ANNUAL REPORT 61

2001 INVESTMENT REPORT 2001 2000 10-Year Cumul. he past year strongly argues T for investment planning that Change in asset values (dollars in millions) addresses economic uncertain- Investment activity, net $ (203.7) $ 399.0 $ 1,649.9 ty. The first recession in more than Grant spending (85.0) (70.0) (464.4) a decade, the impact of the Sept. 11 Administrative expenses (8.1) (7.2) (46.1) terrorist attacks and the bankruptcy of Taxes paid (1.7) (11.7) (34.0) Enron – which only a year ago was this Contributions received 0.3 0.4 190.4 country’s seventh-largest corporation – Total change $ (298.2) $ 310.5 $ 1,295.8 all shook investor confidence and led to the second consecutive annual decline Memo: Ending assets $ 1,900.8 $ 2,199.0 $ 1,900.8 in equity markets worldwide. Beginning assets $ 2,199.0 $ 1,888.5 $ 605.0 The market value of Knight Foun- dation’s assets at Dec. 31, 2001, was $1.901 billion, a decrease of $298.2 million for the year, net of all grant payments and expenses. The compo- nents of this change are shown in the Portfolio returns ending 12/31/01 2001 2 Yr. Avg. 3 Yr. Avg. 5 Yr. Avg. KF Portfolio (8.7%) 6.3% 20.5% 18.8% table to the right. Benchmarks: During 2001, Knight’s investments KF policy (5.8%) (0.9%) 4.3% 7.9% lost $203.7 million of market value. Domestic (4.4%) (3.4%) 1.8% 9.4% Grant spending totaled $85.0 million and Global (12.8%) (9.6%) (2.2%) 4.2% administrative expenses and taxes totaled Cambridge Associates $9.8 million. Contributions received Endowment, median (3.3%) (0.2%) 5.4% 9.5% from the James L. Knight estate added $0.3 million. In total, the foundation’s assets declined $298.2 million. Investment performance in 2001 for ➢ Knight Ridder stock, benefiting the portfolio was negative 8.7 percent, defensive strategies. Even within the due mainly to the impact of lowered offensive strategies, defensive steps from a strong fourth quarter mar- market valuations assigned to the foun- ket, returned 16.4 percent for the were taken such as reducing growth- dation’s private equity investments. All year, adding $9.9 million in value. style stock holdings in favor of four benchmarks for the portfolio were value-style investments. ➢ Investments in fixed income and also negative for 2001 as seen in the Strategies that lagged in 2001: table at right. Treasury Inflation Protected Securities ➢ By far the largest contributor to the For the two-, three-, and five-year (TIPS) combined to add $44.5 mil- year’s losses was private equity invest- periods ending Dec. 31, 2001, the lion to assets, earning returns of 7.4 ments, which include venture capi- foundation’s portfolio returns signifi- percent and 9.4 percent respectively. tal, buyout and international fund cantly exceeded all comparative ➢ Absolute return-arbitrage strategies partnerships. Although these invest- benchmarks. It ranked in the top 5th benefited from continued strength ments are not traded publicly, their percentile of Cambridge Associates in the convertible new issuance value is heavily influenced by valua- Endowment Composite for the three- market and increased opportunities tions given publicly traded compa- and five-year periods and in the top in distressed debt investments. nies in similar businesses. Write- 25th percentile for the two-year period. $29.4 million in value was added downs in valuations totaled about to assets as the strategy posted a 14.0 $207.2 million, or about 42.6 percent. Strategies that worked in 2001: ➢ For the second year in a row the percent return for the year. ➢ Real estate investments earned 12.5 ➢ Starting in the second quarter of large-cap domestic equity markets percent, adding $11.3 million of lost value. Knight’s passive index 2000 and continuing through 2001, market value. funds mirrored this result, losing Knight reallocated funds to favor 62 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

2001 INVESTMENT REPORT AUDITORS’ REPORT about $12.4 million, and its active income and TIPS had an overweight REPORT INDEPENDENT CERTIFIED OF THE strategies lost $26.8 million. Overall position relative to targets as did the PUBLIC ACCOUNTANTS this asset class was down 13.9 per- absolute return-arbitrage strategy. In cent. the offensive strategies group, domestic Trustees ➢ The international markets contin- large-cap equities and international John S. and James L. Knight Foundation ued to disappoint in 2001 as they equities exceeded their target alloca- did in 2000. Investments in this tions while absolute return-strategic We have audited the accompanying asset class, principally equities of and private securities were below their statements of financial position of the companies in developed countries, targets. John S. and James L. Knight Foundation lost 19.5 percent during the year, or (the foundation) as of Dec. 31, 2001 and In summary about $29.2 million. 2000, and the related statements of ➢ Absolute return-strategic posted a activities and cash flows for the years then Knight intends to maintain its loss of 7.7 percent for the year, or ended. These financial statements are the defensive portfolio posture through- responsibility of the foundation’s manage- about $19.4 million. out 2002 in anticipation of continued ment. Our responsibility is to express an challenging market conditions. The opinion on these financial statements Asset allocation targeted allocation to defensive strate- based on our audits. The chart below shows the asset gies will be revised to 45 percentage We conducted our audits in accor- class target allocations for the portfolio points while allocation to domestic dance with auditing standards generally during 2001. The actual portfolio asset equities will be lowered. Broad diversi- accepted in the United States. Those class weightings were shifted toward fication will be emphasized. standards require that we plan and defensive strategies. Domestic fixed perform the audit to obtain reasonable assurance about whether the financial statements are free of material mis- statement. An audit includes examining, on a test basis, evidence supporting the ASSET ALLOCATION TARGETS DURING 2001 amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and Treasury Inflation Protected Securities 5.0% significant estimates made by management, as well as evaluating the overall Large-Cap Domestic Equity financial statement presentation. We 14.5% Domestic Fixed believe that our audits provide a reason- Income 15.0% able basis for our opinion. Small-Cap In our opinion, the financial statements Domestic referred to above present fairly, in all Equity 4.0% material respects, the financial position of the foundation at Dec. 31, 2001 and 2000, Real Estate and its changes in unrestricted net assets Absolute Return- 7.5% Strategic and cash flows for the years then ended, 12.5% in conformity with accounting principles generally accepted in the United States. Absolute Return- Arbitrage International 10.0% Equity 11.5% Feb. 20, 2002 Private Securities Offensive Strategies 20.0% Defensive Strategies 2001 ANNUAL REPORT 63

STATEMENTS FINANCIAL POSITION OF Dec. 31 2001 2000 Assets Cash and cash equivalents $ 76,910,643 $ 7,254,247 Interest, dividends and other investment receivables 21,368,424 22,185,275 U.S. government and agency obligations 292,980,705 476,397,476 Corporate bonds and other obligations 167,771,230 54,478,915 Common stock of Knight Ridder 64,941,817 79,743,413 Other equity securities 901,514,432 979,482,942 Alternative equity investments 275,467,784 487,792,282 Real estate investments 99,874,907 91,650,572 Total assets $ 1,900,829,942 $ 2,198,985,122 Liabilities and unrestricted net assets Grants payable $ 77,428,475 $ 73,247,834 Other liabilities 379,460 1,277,136 Total liabilities 77,807,935 74,524,970 Unrestricted net assets 1,823,022,007 2,124,460,152 Total liabilities and unrestricted net assets $ 1,900,829,942 $ 2,198,985,122 STATEMENTS ACTIVITIES OF Year ended Dec. 31 2001 2000 Investment activity Interest $ 37,947,267 $ 36,374,827 Dividends 9,699,964 9,967,966 Net realized gain on sale of investments 89,301,719 449,210,982 Net decrease in fair value of investments (335,361,991) (91,514,772) Less: investment expenses (4,862,557) (5,388,072) Total net investment income and (loss) gain on investments (203,275,598) 398,650,931 Contributions received 342,344 351,613 Total net investment income, (loss) gain on investments and other support (202,933,254) 399,002,544 Grants approved and expenses Community Partners grants 45,457,475 41,446,445 Journalism Initiatives grants 15,774,000 30,440,010 National Venture Fund grants 24,787,000 20,959,010 Other grants 414,600 520,000 Grant forfeitures and other (2,567,046) (645,324) Direct charitable activities 5,284,676 3,790,899 General and administrative expenses 8,124,255 7,218,299 Federal excise and other taxes 1,229,931 9,805,318 Total grants and expenses 98,504,891 113,534,657 (Decrease) increase in unrestricted net assets (301,438,145) 285,467,887 Unrestricted net assets at beginning of year 2,124,460,152 1,838,992,265 Unrestricted net assets at end of year $ 1,823,022,007 $ 2,124,460,152 See accompanying notes. 64 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

STATEMENTS CASH FLOWS OF Year ended Dec. 31 2001 2000 Cash flows from operating activities (Decrease) increase in unrestricted net assets $ (301,438,145) $ 285,467,887 Adjustments to reconcile (decrease) increase in unrestricted net assets to net cash used in operating activities: Net realized gain on sale of investments (89,301,719) (449,210,982) Net decrease in fair value of investments 335,361,991 91,514,772 Changes in operating assets and liabilities: Interest and dividends and other investment receivables 816,851 (17,197,712) Grants payable 10,998,161 31,893,137 Other liabilities (897,676) (1,537,448) Net cash used in operating activities (44,460,537) (59,070,346) Cash flows from investing activities Proceeds from sale of investments 867,182,375 899,880,634 Purchases of investments (753,065,442) (851,975,642) Net cash provided by investing activities 114,116,933 47,904,992 Net change in cash and cash equivalents 69,656,396 (11,165,354) Cash and cash equivalents at beginning of year 7,254,247 18,419,601 Cash and cash equivalents at end of year $ 76,910,643 $ 7,254,247 Noncash transactions Common stock of Knight Ridder granted to reduce grants payable $ 6,817,520 $ 5,381,622 See accompanying notes. 2001 ANNUAL REPORT 65

NOTES FINANCIAL STATEMENTS TO investment strategies and investment managers. distributions that occur during the quarter DEC. 31, 2001 Key decisions in this regard are made by the ended Dec. 31. These amounts may differ from foundation’s investment committee, which has values that would be determined if the invest- 1. The Organization oversight responsibility for the foundation’s ments in limited partnerships were publicly trad- The John S. and James L. Knight Foundation investment program. The committee identifies ed or if the Dec. 31 valuation amount were cur- (the foundation), a nonprofit corporation, pro- appropriate asset categories for investments, rently available. Realized gains and losses and motes excellence in journalism worldwide and determines the allocation of assets to each cate- increases and decreases in fair value on the invests in the vitality of 26 U.S. communities. gory and approves the investment strategies investments in limited partnerships are reflected employed. The foundation’s chief investment in the Statements of Activities. All limited part- 2. Significant Accounting Policies officer is responsible for the effective execution of nerships are audited annually by independent the investment program, including the engage- auditing firms. As of Dec. 31, 2001, pursuant to Grants ment of investment managers, financial consult- its limited partnership agreements, the founda- The foundation records grants in full as ants and legal advisers, as required. The majority tion is committed to contribute approximately expenses when approved. of the foundation’s financial assets are managed $251,700,000 in additional capital over the next by external investment management firms select- 10 years to various partnerships. Unpaid com- Program-Related Investments (PRIs) ed by the chief investment officer. The founda- mitments at Dec. 31, 2000, were approximately In accordance with Section 4944 of the tion’s holdings in Knight Ridder common stock, $180,300,000. Internal Revenue Code (the Code), the founda- Treasury Inflation Protected Securities (TIPS), At Dec. 31, 2001 and 2000, the foundation held tion is permitted to make investments that are and equities distributed by its limited partnership 1,000,182 and 1,402,082 shares, respectively, of related to its philanthropic programs. These invest- investments are managed by the foundation’s Knight Ridder common stock, which represented ments are anticipated to have a return lower investment department. All financial assets are 3 percent and 4 percent of the foundation’s than fair value. In the year of the investment, held in custody for the foundation in proprietary assets, respectively. During 2001, the foundation the foundation receives a credit toward its distri- accounts by a major commercial bank, except reduced its Knight Ridder holdings by 401,900 bution requirement. These investments are treat- those assets that have been invested in limited shares by sale and gifts. Divestitures in 2000 ed as grants in the year they are approved. To the partnerships, hedge funds or in certain products totaled 306,600 shares. extent the investment is recovered by the founda- with multiple investors, such as index funds, all of tion, the recovery is recognized as a negative dis- which have separate custodial arrangements tribution. Recoveries are reflected in “Grant for- appropriate to their legal structure. feitures and other” in the Statements of Activities. The majority of the foundation’s assets are invested in publicly traded equities, which are Use of Estimates listed on national exchanges or quoted on NAS- The presentation of financial statements in DAQ; Treasury and agency bonds of the U.S. gov- conformity with accounting principles generally ernment; and investment grade corporate bonds accepted in the United States requires manage- for which active trading markets exist. Such ment to make estimates and assumptions that assets are valued at quoted closing prices at year affect the reported amount of assets and liabili- end. Realized gains and losses and increases and ties and disclosure of contingent assets and lia- decreases in fair value on investments are reflect- bilities at the date of the financial statements. ed in the Statements of Activities. Estimates also affect the reported amounts of Approximately 20 percent and 26 percent of investment activity and expenses during the the foundation’s assets at Dec. 31, 2001 and 2000, reporting period. Actual results could differ from respectively, were invested with numerous part- those estimates. nerships, in which the foundation is a limited partner, that specialize in making venture capital, Reclassification buyout, distressed debt, and equity-based real Certain amounts in the prior year financial estate investments. Such investments, typically statements have been reclassified to conform investments in private equity or debt securities of with the current year’s presentation. companies or properties that are not publicly listed or traded, are not liquid investments. The 3. Investments value of such investments is determined by the The investment goal of the foundation is to partnerships’ general partners, who must follow invest its assets in a manner that will achieve a the valuation guidelines, such as appraisals and total rate of return sufficient to replace the assets comparable company trade data, stipulated in spent for grants and expenses and to recoup any the respective limited partnership agreements. value lost due to inflation. To achieve this goal, The Dec. 31 valuations of the investments in lim- some investment risk must be taken. To mini- ited partnerships are based upon the value deter- mize such risk, the foundation diversifies its mined by the partnerships’ general partner as of investments among various financial instru- Sept. 30, adjusted for capital contributions and ments and asset categories, and uses multiple 66 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

NOTES FINANCIAL STATEMENTS TO 3. Investments (continued) A detail of fair value and cost by investment class follows: Dec. 31, 2001 Dec. 31, 2000 Fair Market Value Cost Fair Market Value Cost Cash and cash equivalents $ 76,910,643 $ 76,910,643 $ 7,254,247 $ 7,254,247 Interest, dividends and other investment receivables 21,368,424 21,368,424 22,185,275 22,185,275 U.S. government and agency obligations 292,980,705 282,825,697 476,397,476 463,840,766 Corporate bonds and other obligations 167,771,230 170,761,576 54,478,915 54,910,304 Common stock of Knight Ridder 64,941,817 27,880,073 79,743,413 39,013,595 Other equity securities 901,514,432 730,015,482 979,482,942 723,537,270 Alternative equity investments 275,467,784 318,384,568 487,792,282 284,445,091 Real estate investments 99,874,907 80,618,251 91,650,572 76,371,355 Total $ 1,900,829,942 $ 1,708,764,714 $ 2,198,985,122 $ 1,671,557,903 Highly liquid investments with original maturities of three months or less are reported as cash equivalents. realized losses totaled approximately $2,825,000 4. Derivative Financial Instruments Authorization to use derivatives currently is for the year ended Dec. 31, 2001, and are reflect- restricted to 10 hedge fund managers, who manage Effective Jan. 1, 2001, the foundation adopted ed in the Statements of Activities. The founda- investments totaling approximately $457,000,000 Statement of Financial Accounting Standards tion anticipates closing these contracts and real- and one currency overlay manager. The founda- No. 133, Accounting for Derivative Instruments locating these funds to institutional money man- tion’s chief investment officer also is authorized to and Hedging Activities (SFAS No. 133), as amend- agers in the first quarter of 2002. use derivatives to execute certain investment ed by Statements of Financial Accounting In the opinion of the foundation’s manage- strategies. Derivative financial instruments are Standards No. 138, Accounting for Certain ment, the use of derivative financial instru- recorded at fair value in the Statements of Derivative Instruments and Certain Hedging ments in its investment program is appropriate Financial Position with changes in fair value Activities (SFAS No. 138). SFAS No. 133, as and customary for the investment strategies reflected in the Statements of Activities. amended, requires the recognition of all deriva- employed. Using those instruments reduces cer- At Dec. 31, 2001, the foundation’s currency tive instruments as either assets or liabilities on tain investment risks and generally adds value to overlay manager had combined buy and sell the statement of financial position measured at the portfolio. The instruments themselves, how- positions in currency forward contracts valued at fair value and establishes new accounting rules ever, do involve some investment and counter- approximately $88,000,000 with four correspon- for hedging instruments depending on the party risk not fully reflected in the foundation’s dent banks, which on a net basis represented a nature of the hedge relationship. financial statements. Management does not hedge of approximately $41,000,000 against the Some investment managers retained by the anticipate that losses, if any, from such instru- foundation’s foreign equity portfolio valued at foundation have been authorized to use certain ments would materially affect the financial posi- approximately $128,000,000. The fair value of derivative financial instruments in a manner set tion of the foundation. these currency forward contracts, which is forth by the foundation’s written investment pol- The adoption of SFAS No. 133 as amended, on reflected in the Statements of Financial Position, icy, specific manager guidelines or partnership/ Jan. 1, 2001, had no material impact on the is approximately $1,200,000. All currency for- fund agreement documents. Specifically, deriva- foundation’s financial position or its results ward contacts are three months in duration and tive financial instruments may be used for the from operations. are typically renewed quarterly. At Dec. 31, 2000, following purposes: (1) currency forward con- the foundation did not have any buy or sell posi- tracts and options may be used to hedge nondol- tions in currency forward contracts. lar exposure in foreign investments; (2) covered On Nov. 26, 2001, the foundation entered into call options may be sold to enhance yield on futures contracts in Euro Stoxx 50, Euro major equity positions; (3) futures contracts may Currency, and Euro Bond, with an aggregate be used to equitize excess cash positions, rebal- notional value of $100,000,000. The futures con- ance asset categories within the portfolio or to tracts selected are exchange-listed, highly liquid rapidly increase or decrease exposure to specific contracts providing daily settlements. Gains and investment positions in anticipation of subse- losses were processed daily through the NYSE quent cash trades; and (4) futures contracts and third party clearing broker and settled within an options may be used to hedge or leverage posi- account at the foundation’s custodian bank. Net tions in portfolios managed by hedge fund firms. 2001 ANNUAL REPORT 67

NOTES FINANCIAL STATEMENTS TO 5. Federal Excise Taxes 6. Grant Commitments 7. Employee Pension Plan and Other Postretirement Benefit Plans The foundation qualifies as a tax-exempt The foundation made grant payments of organization under Section 501(c)(3) of the Code $84,970,064 and $69,983,125 in 2001 and 2000, The foundation sponsors a pension plan with and, with the exception of unrelated business respectively. defined benefit and cash balance features for its income from debt-financed, passive investments, As of Dec. 31, 2001, the foundation had future eligible employees. The pension benefits for all is not subject to federal income tax. However, the grant commitments, which are scheduled for employees hired prior to Jan. 1, 2000, will be the foundation is classified as a private foundation payment in future years as follows: greater of the benefits as determined under the and is subject to a federal excise tax of 2 percent defined benefit feature of the pension plan or the (or 1 percent under certain circumstances) on cash balance feature of the pension plan. The 2002 $ 50,360,525 net investment income, including realized gains, pension benefits for all employees hired on or 2003 17,840,950 as defined by the Code. subsequent to Jan. 1, 2000, will be determined 2004 4,967,000 Total excise and other taxes paid by the foun- under the cash balance feature of the pension 2005 3,355,000 dation for the years ended Dec. 31, 2001 and plan. The foundation also sponsors a postretire- 2000, amounted to approximately $1,700,000 ment medical and life insurance benefit plans. 2006 905,000 and $11,700,000, respectively. The table below sets forth the pension and Total $ 77,428,475 other postretirement benefits plans’ funded status and amounts recognized in the foundation’s Statements of Financial Position: Pension Plan Other Postretirement Benefit Plans Year Ended Dec. 31 Year Ended Dec. 31 2001 2000 2001 2000 Fair value of plan assets $ 4,113,332 $ 3,630,328 $ - $ - Benefit obligation (5,332,548) (4,470,860) (960,384) (844,779) Funded status of the plan $ (1,219,216) $ (840,532) $ (960,384) $ (844,779) Accrued benefit cost recognized in the Statements of Financial Position $ (826,459) $ (1,085,374) $ (356,424) $ (224,271) Benefit cost recognized in the Statements of Activities 471,223 392,573 215,385 268,396 Employer contributions 730,138 9,748 83,232 44,125 Employee contributions - - 240 240 Benefits paid 121,663 279,394 83,472 44,365 Actuarial assumptions Discount rate 7.25% 7.5% 7.25% 7.5% Expected return on plan assets 8.00 8.0 N/A N/A Rate of compensation increase 4.25 4.5 4.25 4.5 Health care cost trend rate assumptions Initial trend rate N/A N/A 11.00% 8.0% Ultimate trend rate N/A N/A 5.25 5.5 Year ultimate trend is reached N/A N/A 2010 2009 68 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

NOTES FINANCIAL STATEMENTS TO 7. Employee Pension Plan and Other Postretirement Benefits Plans (continued) In addition, the foundation sponsors a defined contribution plan for its eligible employees for which it has no fixed liabilities. The foundation did not make a discretionary contribution to the defined contribution plan during 2001. The foundation made a discretionary contribution of $82,079 for 2000 to the plan. Effective Jan. 1, 2002, the foundation’s defined contribution plan has been amended to add an employer matching contribution component. 8. Leases The foundation leases approximately 16,200 square feet of office space in Miami, Fla., which expires in 2002. The foundation also has various leases for equipment which expire between 2003 and 2004. Rental expense for office and equipment leases for 2001 and 2000 was $712,698 and $531,473, respectively. Future minimum lease payments for office and equipment leases are as follows: 2002 $ 692,972 2003 112,521 2004 31,782 $ 837,275 2001 ANNUAL REPORT 69

LETTER INQUIRY OF We’ve found that a brief letter of inquiry is the best way to introduce a new idea to Knight Foundation. If we think your inquiry can be developed into a full proposal, we will let you know. In no more than two pages, please tell us: ➢ The need(s) the project will address. ➢ The relationship of the project to the foundation’s funding priorities. ➢ Results you expect the project to produce and the benefits it will provide. ➢ Special qualifications your organization brings to the project. ➢ The project’s relation to your organization’s mission. ➢ The role of other organizations – if any – in planning and participation. Please be sure to include: ➢ The total amount of money you wish to request, over what time period. ➢ Your organization’s total income and expenditures for its most recent year. ➢ Verification that your organization is tax-exempt under IRS code section 501(c)(3), and not a private foundation as defined in Section 509(a) of that code. As you might imagine, we get a great many inquiries. Accordingly, correspondents who follow these guidelines are more likely to receive a prompt response. If Knight Foundation asks your organization to develop a letter of inquiry into a full proposal, please visit our web site, www.knightfdn.org, for application forms and guideline information. John S. and James L. Knight Foundation One Biscayne Tower, Suite 3800 2 S. Biscayne Blvd. Miami, Fla. 33131-1803 70 JOHN S. JA M E S L . K N I G H T F O U N DAT I O N AND

2001 PRODUCTION CREDITS Text: John S. and James L. Knight Foundation Design: Jacques Auger Design Associates Inc., Miami Beach, Fla. Printing: Southeastern Printing, Stuart, Fla. Photography: AP/World Wide Photos, page 1 and 5 (viewers) J. Emilio Flores for Knight Foundation, page 1 (child) Bruce Zake for Knight Foundation, page 1 (journalism teacher) Robert Seay for Knight Foundation, page 1 (Peter Brown) Andrew Itkoff for Knight Foundation, pages 2-4 and 38-41 AP/World Wide Photos/Gulnara Samoilova, page 5 J. Emilio Flores for Knight Foundation, pages 6-11, page 17 John Daughtry/LOF Productions, page 12 Eric Hylden for Knight Foundation, page 14 Paulo Machado for Knight Foundation, page 18 American Society of Newspaper Editors, page 19 Bruce Zake for Knight Foundation, pages 20-21 AP/World Wide Photo, page 22 Babu/Daily Prothom Alo, page 23 Harvey Bilt for Knight Foundation, page 25 Robert Seay for Knight Foundation, page 27 Charrette images courtesy the Knight Program in Community Building/Chuck Bohl and Dhiru Thadani, pages 27, 29, 30 Lisa Helfert for Knight Foundation, pages 31-32 Knight Foundation archives, page 33 Hurricane Andrew photo courtesy The Miami Herald, page 34 Grand Forks flood courtesy the Grand Forks Herald, page 35 The name “Magic of Music” is used (pages 36, 42, 54) with permission of The Magic of Music Inc., which creates special moments through music for thousands of critically/terminally ill and handicapped children and adults throughout the United States. 2001 ANNUAL REPORT 71

One Biscayne Tower Suite 3800 2 S. Biscayne Blvd. Miami, Fla. 33131-1803 www.knightfdn.org

2001 KF Annual Report

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