KNIGHT FOUNDATION PRESIDENT ALBERTO IBARGÜEN ADDRESSES ECONOMIC OUTLOOK

Knight Foundation has become a leader in media innovation; meeting the information needs of communities and helping journalism evolve into its best possible future. We are also fortunate to work with many effective organizations for the benefit of Knight communities.

We plan to continue that work in 2009, obviously mindful of the recession that’s affecting all of us. The financial crisis has affected every investor in the market, and of course that includes us at Knight Foundation, since our income is derived from our investments of the funds left to us by Jack and Jim Knight. So, we’re down, too—and, of course, the natural question from grantees is “what are your intentions?”

First, let me repeat what we’ve discussed with many of you individually: while we have taken our losses, the foundation remains quite strong. I’m especially pleased to assure you that Knight Foundation will honor all existing pledges and grants. We foresee no liquidity issues for the Foundation. We’ve been well served by a long-standing policy of asset diversification, directed by an outstanding Investment Committee and our outside investment manager. And we expect to be well positioned when the markets recover.