In 2008, The Harder Foundation made $1,175,000 in grants to 50 non-profit organizations spread over seven Focused Funding Areas and supporting four collaborative campaigns.  During what has been a period of difficult challenges for public land protection, much has been accomplished by the dedicated efforts of the organizations involved.  Yet, the year was also a painful one for non-profit funders.  A January 2009 survey by the Chronicle of Philanthropy indicated that among 57 grantmakers providing data, private foundation endowments declined by a median average of 29%.  While The Harder Foundation endowment has out-performed the S&P 500 equity average significantly for three-, five-, and ten-year periods, the portfolio declined in value by 28.1% in 2008.  Further declines during the first two months of 2009 are substantial.  Current economic indicators point to a one- to two-year recession rivaling the worst since World War II.  Our charitable administrative expenses have been reduced to a minimum.  Yet, the current economic situation will necessitate a substantial reduction in our grantmaking levels for this year and next.  

Our mission of protecting biodiversity and large ecosystem functionality on public lands of Alaska and the western US continues. Over the last three years, we have evaluated our major program areas and our commitment to long-standing campaigns.  Current circumstances will drive the next phase of this re-evaluation process.  We recognize that the conservation agenda is changing in response to three very powerful forces:  climate change and its accelerating impacts on western landscapes, a devastating economic recession, and a new federal administration with very different priorities and policies regarding the environment.  These threats and opportunities compel us to significantly cut current funding levels while at the same time to thoroughly reconsider our strategic program goals.  It is our hope -- and our expectation -- that by 2011, grant amounts will have returned to higher levels and the focus and effectiveness of our grantmaking program will be greater than ever.

In the meantime, we will eliminate our spring grantmaking cycle and our emergency small grants program. Moreover, we will be forced to eliminate support for some long-standing Focused Funding Areas. Program staff will actively seek proposals from potential grantees, and with few exceptions, we will be unable to accept any new grantees during 2009.  We will fund only a limited number of current grantees and projects that we judge to be of the highest priority.  While important and exciting conservation possibilities lie ahead, we know that this year’s funding reduction will be frustrating and painful for many groups.  I want to end this letter with a profound “thank you” from the Trustees of The Harder Foundation for all that our grantees have done, and will continue to do, for conservation and community well-being.

Del Langbauer
President, The Harder Foundation
March 12, 2009