February 2009

Dear Friends and Colleagues,

As the staff and trustees of the Walter & Elise Haas Fund welcome the New Year, we feel unprecedented levels of both hope and concern. On the one hand, we have hope that our country’s leadership will create positive change on many issues of profound importance to the Fund. Yet we are deeply concerned about the impact of the current economic crisis on our community, our grantees, and the broader non-profit sector.

In light of the economic downturn and in recognition of the tremendous pressures on the nonprofit sector, the Fund’s trustees have set a level course for 2009. In plain terms, what that means is that the Fund’s 2009 grants budget of $12.35 million is essentially the same as our 2008 budget. The Fund uses an average of the market value of its endowment over the prior three years when determining its yearly payout, which, fortunately, mitigates some of the market’s ups and downs.  We anticipate, however, that 2010 may be an even more difficult year for nonprofits and foundations.  Given this uncertainty, the Fund will not be making new multi-year commitments this year, though prior commitments will, of course, be honored.

We understand the stress and strain that the economic situation is creating for our grantees and others in the non-profit sector. We know that many community based organizations are preparing for the likelihood of decreases in corporate and individual giving, and a reduction of local and state government funds. These reductions will have a significant impact on the nonprofit sector and the communities they serve. 

We want grantees of the Walter & Elise Haas Fund to know that we understand the need for flexibility in these difficult times; that the best, most carefully planned programs and budgets may require alterations. Communication is the key in this period; we encourage the Fund’s grantees to work closely with our staff if significant changes are necessary to agreed upon budgets and/or grant objectives. 

We also realize that the downturn is severely taxing the safety net of community services that ensure access to food, housing, healthcare, and other basic needs. As a result, the Fund is creating a time-limited emergency funding pool, in order to assist with safety net programming in San Francisco and Alameda counties.  We will be working with other foundations, the United Way, the Jewish Community Federation, and the public sector to coordinate allocation of these emergency funds; we will not be accepting unsolicited letters of inquiry or proposals.

As always, the staff and board of the Fund are extremely thankful for the commitment and dedication of our friends and colleagues in the nonprofit community.  We look forward to forging through these challenging times.

All the best,

Pamela H. David
Executive Director