Hello!

Welcome to the second year of The Lawrence Foundation. This was a year of process and initial grant making.

We received and reviewed 100's of grant requests and letters of inquiry. We also made our first site visits this year and consistently found committed and enthusiastic staff at the organizations we visited.

A total of 17 new grants were made this year to a mix of large and small organizations. We also start paying off a commitment we made last year. New grants this year ranged in size from $5,000 to $10,000. Grants tended to be allocated to general uses for the larger organizations and project oriented uses for the smaller organizations. We expected to make a number of grants for education but found ourselves making grants for a number of environmental causes and to a lesser extent for education and some other causes. Few grant requests with either a policy focus or broad scope were received for education. The environmental grants tended to be for organizations that were focused on land and habitat preservation.

The asset value of the foundation remained fairly constant this year as a result of the bear equity market and the inability to diversify or liquidate the assets due to initial trading restrictions on the stock used to fund the foundation. Some of these initial trading restrictions on the stock were removed towards the end of the year, which allowed for the liquidation of some stock to make grant payments and which will also allow for future diversification. The foundation started the year with an asset value of $5 million and ended the year ended with an asset value of $5 million.

The Web site was very active this year. We are now listed on the GuideStar, as well as other Web sites. We maintained our membership in the Association of Small Foundations and also joined the Council on Foundations.

As the overall activity level increased we hired our first part-time staff member, Lori Mitchell, to act as the administrator of the foundation. The foundation is based in California although Lori is based in Colorado.

We expect that during 2002 we will continue to develop our grant making themes and points of view. We will also develop the process for measuring and judging the effectiveness of our grants, engage professional financial management for the foundation assets and develop succession plans.

Respectfully Submitted,

Jeff Lawrence & Diane Troth
Trustees
The Lawrence Foundation