February 2, 2009 | Read Time: 2 minutes
Due to a long-planned change in its grant making and depleted assets, the California Endowment is reducing its number of staff members and closing two regional offices.
On his blog, Robert K. Ross, the organization’s chief executive, writes that “a fair amount of change is under way as we position ourselves for a new strategy, and a new set of realities. In the coming weeks we will begin saying ‘goodbye’ to a number of our wonderful California Endowment staff as they transition to new careers and innovative endeavors. As a foundation we are not immune to the reality of a volatile marketplace and the necessity of change and ‘rightsizing’ in order to continue our mission.”
The Los Angeles foundation had previously announced that it would refocus its mission to help impoverished California families be healthier. Previously, the foundation had sought to improve the health-service system statewide and make it more responsive to California’s diverse residents.
Now, starting in 2010, the foundation’s giving will be more geared towards assisting young people and children, more “place-based” — meaning it will give to specific geographic areas — and will seek to assist the work of local community leaders in those areas.
The shift in giving required some reorganizing of the fund’s employees, but the loss of more than 25 percent of its assets last year due to stock market troubles also contributed to the staff changes.
“Although the world of private foundations typically functions with a relative level of ‘insularity’ from real-world changes, we find ourselves scrambling for new ways to maximize the dollars available to our grantees and communities we serve; and unfortunately, we must reduce our administrative costs to do so,” writes Mr. Ross.
As part of the cut in overhead expenses, Mr. Ross writes that the foundation will be “restructuring” offices in Sacramento and San Diego. Currently, the foundation operates five such regional offices.
Jeff Okey, a spokesman for the foundation, told The Chronicle that as many as 24 employees may be leaving the endowment, with some taking buy-outs.
He said that the foundation plans to provide $150-million to $160-million in grants during its next fiscal year, which starts in March. That amount is roughly the same as its current grant-making budget.
Read The Chronicle’s article about how the bad economy is hurting foundations.
What do you think of the changes at the California Endowment?
