Funds Started by Reader’s Digest Co-Founders Decide to Combine Their Grant-Making Operations

The two philanthropies started by the co-founders of Reader’s Digest magazine have combined their grant making and will operate under the name Wallace-Reader’s Digest Funds.

The DeWitt Wallace-Reader’s Digest Fund, with assets of $800-million, and the Lila Wallace-Reader’s Digest Fund, worth $700-million, remain legally separate entities. However, all grants will be made under a new common set of programs.

The two foundations — which resulted from a merger in 1987 of four smaller foundations established by DeWitt and Lila Wallace in the 1950s and ‘60s — have long shared offices as well as some staff members. But they maintained separate grant-making programs to reflect the individual interests of the couple.

M. Christine DeVita, who has been the president of both funds since 1987, said that the foundations decided to pool their grant making in an effort to become more effective and efficient.

Under the new structure, the foundations plan to award $100-million in grants this year primarily in the following three areas:

Arts. Over the past 10 years, the Lila Wallace fund has sought to increase the role that arts and cultural institutions play in the daily lives of Americans. The Wallace-Reader’s Digest Funds will continue that effort, emphasizing programs that increase public participation in the arts by helping cultural institutions diversify and expand their programs.

Communities. In the past, the two funds have tried to improve informal learning opportunities, primarily for poor children and their families. Now, the funds will together look for ways to work closely with libraries, museums, parks, youth groups, and other institutions that offer opportunities to improve learning.

Education. Over the past 10 years, the funds made efforts to improve teaching and learning. Now, the foundations will turn their attention to developing effective educational leaders, such as principals and superintendents, to improve the quality of low-performing public schools. Specific grant-making programs are scheduled to be announced in the spring.

For more information, contact Bruce S. Trachtenberg, Director of Communications, Wallace-Reader’s Digest Funds, Two Park Avenue, 23rd Floor, New York 10016; (212) 251-9780; http://www.wallacefunds.org.