Every day brings more grim news. Our nation's banking system is in turmoil, unemployment rates continue to climb, and volatility in international stock markets has had direand far-reaching repercussions. Regard less of whether or not our economy has reached its low point, one thing is certain: We have a long road ahead of us.

Even before this economic downturn, successful nonprofit organizations have always kept a close eye on the bottom line. From small, community-based groups dedicated to helping underserved populations, to national organizations whosereach is broader, nonprofits are challenged to squeeze the most out of tight budgets even in the best of times. And when times are tough, many of these same organizations—food banks, libraries, community centers—find demand for their services rising while contributions decline.

For those of us in the philanthropic sector, the current recession has forced us to make difficult decisions. Like most foundations in 2008, The Mary Duke Biddle Foundation saw its portfolio decline, by nearly 30 percent. These losses are being handled by our peers in a variety of ways. According to a National Center for Family Philanthropy report titled "Families Step Up to Meet the Economic Crisis," published in January 2009, some individual donors and family foundations plan to increase or reallocate the amount of money they distribute, specifically targeting agencies that serve those hardest hit by our current predicament. Other foundations are maintaining their current levels of giving, while many are cutting back in either the dollar amount of grants or the total number of grants—or both.

While we can't foresee what 2009 will bring, the trustees of The Mary Duke Biddle Foundation are confident that we can weather this economic turbulence with the same steady leadership that has guided us through the last half century, and contin ue to provide prudent stewardship of our founder's vision and mission. From the very start, the Foundation has governed its assets judiciously. Indeed, all of the original trustees lived through the Great Depression of the 1930s and brought a cautious conservatism to grant management and allocation. Today's trustees continue that wise tradition.

There are other factors that serve us well, regardless of market fluctuations. With few exceptions, the Foundation does not make multi-year grants. This allows greater flexibility from year to year, and avoids the unfortunate situation some foundations now find themselves in, where depreciating endowments are barely sufficient to cover previous commitments.

Another advantage we have is our size and scope. We are small enough that we can enjoy personal relationships with many of our grantees. We know their history within their communities, the support they have earned from other corporate and charitable partners, and their nimbleness in adjusting to changing financial and social dynamics. And because the terms of the Foun dation's trust dictate the geographic and thematic focus of our grant making, we are well-versed in the issues facing the educational and cultural institutions that fall within those boundaries. The trustees of the Mary Duke Biddle Foundation are confident that we can weather this economic turbulence with the same steady leadership that has guided us through the last half century.

Still, we know that we will need to make shortterm adjustments. Because our grants are already modest, we do not plan to decrease the average size of grants we bestow. Rather, it is more likely that we will opt to cut back on the number of grants we award. We are acutely aware that there are far more organizations that need philanthropic support than there are charitable dollars to be had.

In 2008, The Mary Duke Biddle Foundation awarded more than $1.6 million to 354 grantees. As you look through the list of projects we funded, we invite you to consider ways you can make a difference in your own community. Throughout our history, we have seen ordinary people accomplish extraordinary things when they come together for the common good. Our grantees do it every day, with a clear and unwavering sense of purpose. We can learn from their example.