Like most other foundations, investment returns on the Fund's endowment since 2000 have been disappointing, necessitating reappraisal of earlier spending plans. The Fund has been fortunate in not having to undertake the major spending reductions experienced by many other foundations, but some belt-tightening has been necessary. In this context, the foundation examined the merits of all its programs and activities in 2003 in a strategic planning exercise that assessed the internal strengths and weaknesses and external opportunities and threats for each major program. The conclusions of the exercise were that all the Fund's programs merit continuation and that care should be taken to preserve the intramural staff capacities that underlie the productivity and impact of the foundation's programs. Reductions in planned spending were made selectively, with the aim of achieving savings in program and communications, where possible, while protecting areas with the greatest opportunity for making a difference.

The Fund regularly reviews its major programs and activities to assess their effectiveness and reexamine their strategies. In 2003, the Fund carried out a review of its communications program, a major aspect of which was a survey of Fund audiences, conducted by Harris Interactive, Inc., to provide anonymous feedback to the foundation on the effectiveness of its communication with target audiences and their views regarding the usefulness of the information it generates. The survey was designed to help guide improvements in the foundation's communications program and overall performance.

In addition to providing encouraging feedback on the foundation's performance, the principal finding of the survey was the Fund's effectiveness in reaching audiences through the relatively low-cost medium of electronic distribution. Using audience preference data collected in a similar survey in 1999 by the Alpha Center as a base line for comparison, the growth in audiences' preferences for using the Internet to learn about the Fund's work is dramatic: to cite two examples, 84 percent now use the website, compared with 19 percent in 1999; and 65 percent use it to download reports, compared with 9 percent earlier. This change is testimony both to the rapid spread of information technology and the Fund's substantial achievement in harnessing that technology to advance its mission.

The 2003 audience survey revealed further potential for capitalizing on the tools of the Internet, while endorsing the Fund's basic program and communications strategy. One of the clearest messages was the explicit preference for digital distribution of Fund reports. Nearly 70 percent of respondents said they preferred receiving Fund reports via e-mail alert, enabling accessing, downloading, or ordering. This finding, along with new budget realities, has led to a significant change in the foundation's print publications strategy: cessation of unsolicited mailings of copies of its publications, and reliance now on an e-mail alert system and the Fund's website.

To enhance its e-marketing capacities, the Fund is redesigning its website and upgrading its functionality, with the goal of making it easier to find reports and program information, tailoring information for key audiences such as journalists, and more accurately reflecting the breadth and depth of Fund-supported work. Other priorities include identifying additional opportunities to advertise the Fund's website; increasing the number of e-mail alert subscribers by working with partner organizations and cofunders; improving maintenance of e-mail lists; and strengthening media outreach. These steps will accomplish the important goals of spending appropriately on communications during a financially challenging period and realigning the Fund's communications products with the current habits and preferences of its audiences.