The Cosmos Club Foundation continues to fulfill its charter of advancing the arts, humanities and sciences through awards and grants to stimulate scholarship, the conduct or direction of symposia, and the dissemination of information for the public good. To that end, we maintain three active endeavors: the grants-in-aid program to area graduate students with worthwhile and promising research projects; the John P. McGovern Lecture Awards in Science, Literature and the Arts and Humanities; and funding of the annual Cosmos Club Award.

The Grants-in-Aid Program, in concert with the Consortium of Universities of the Washington Metropolitan Area, had a most successful year. There are now three parts to the program: the awarding of the grants; the dinner at the Club; and the “alumni” effort. 194 applications for awards from $1,500 to $3,000 were read by the Trustees and 24 winners selected. $40,000 in grants was awarded to graduate students doing work as diverse as biological sciences, art history, archeology and chemistry.

In April of each year, the Foundation gives a dinner for the awardees of the previous year who report on the work they have done with their grants. Those who attend are invited to bring a family or faculty member. Each student makes a short presentation describing how they used their grant. This year, 12 students spoke about their work, which ranged from biology to history to political science and demography. The gratitude of the students for the grants and the extraordinary amount of the work they accomplish with their small awards makes this program our most effective outreach.

To further enhance the program, Tedson Meyers and his assistant contacted almost all of the student “alumni,” most of whom responded with letters reporting on their gratitude to the Foundation for the award and the work accomplished with their grants. Further, many students sent photos showing themselves at work, some of which were put on display in the case outside the dining room during March and April and a few photos are, at this moment, in the case in the front hall. Contact with our “alumni” group will continue as the program gains momentum, and as of today, the committee that manages the effort is at work for 2007-2008. We are delighted to report that a number of other clubs have inquired of us how they might adopt similar programs.

The McGovern Award program, supported by generous endowment funds donated by club member John P. McGovern, M.D., has been equally active and has become a highly prestigious prize on the basis of the stellar achievements and reputations of those whom we have sought out and who have come to our clubhouse to accept it.

On November 7, the 2006 award in Literature was bestowed upon British playwright, novelist, philosopher and essayist Michael Frayn in a program entitled “A Conversation with Michael Frayn.”

On February 9, the 2007 award in Science was given to Dr. Eric Kandel of Columbia University, pioneer of the physiological mechanisms of memory and Nobel laureate in Physiology or Medicine. His presentation was entitled “Thinking About the Brain.”

On March 1, Wole Soyinka, Nigerian playwright, poet, novelist essayist and human rights champion, the first African to win the Nobel Prize in Literature, came to address us on the occasion of his receipt of the 2007 award in Literature with “Rights, Writers and Ritual.”

And on April 30, cartoonist, playwright, screenwriter and novelist Jules Feiffer accepted the 2007 award in the Arts and Humanities in a program entitled “The World, As Seen Through the Eyes of Jules Feiffer.”

All of these programs were well-attended, both by Cosmos Club members and members of the public, and all provided challenging, stimulating and fascinating insights into the minds of distinguished creators of high achievement. As of this year, we have instituted a reception following the presentation so that all audience members may meet and speak with our honorees.

We are currently planning for next year’s awards.

The Cosmos Club Award, for which the Foundation provides the honorarium funds, and for which committee the Foundation chairman is an ex-officio member, had a great success in 2006. On May 1, Nobel Peace Prize laureate Elie Wiesel gave an inspiring address to the club in a program so popular that it had to be broadcast into the Warne Lounge to accommodate as many people as possible. The Foundation subsequently sent out the printed transcript of the awardee’s presentation, as has been our practice.

In calendar year 2006 the Foundation received 192 contributions, totaling $136, 985. This included a bequest of $50,000 from the estate of former club president and foundation trustee James Wallace and his wife Haya; a $25,000 bequest from the estate of Dr. Robert Cohn and $16,000 from Dr. John P. McGovern for the McGovern Award sub-fund. 22 grants-in-aid totaling $40,772 were paid in calendar year 2006. 24 grants-in-aid totaling $40,000 were paid in calendar year 2007 (with one awardee returning her $1,500 check due to inability to carry out her research).

Assets at the end of calendar year 2006 were $1,343,745, compared with $1,141,087 at the end of calendar year 2005.

MARK OLSHAKER , Chair

This was a particularly productive year for the Foundation. The Grants-in-Aid program, which awards modest grants to graduate students in Washington area universities, was able to make 22 awards totaling $40,772. The awardees came from The University of Maryland, Georgetown, George Washington, Howard, American, and George Mason Universities, and the subjects of their research ranged from animal biological and behavioral studies to pre-Columbian art, modern European history, American art history, and earth sciences.

These grants, and other activities of the Foundation, are supported by contributions from members of the Club and other individuals and foundations. This year more than $60,000 was received from 314 contributors­a record for the Foundation. In addition, the Foundation received a bequest of $67,500 from the Estate of Max and Vera Britton, to support research in environmental science; one of the grants-in-aid was designated for this special distinction, and this will be done annually in future years.

The work of the Foundation is supported by income from its endowment funds. The current endowment totals more than $1,100,000, which is invested in equity, bond, and money-market mutual funds in several brokerage accounts. The Club’s Assistant Controller, Christopher Buynak, improved reporting to the Foundation Treasurer and Trustees, then materially reduced the cost of our audit by preparing schedules and notes for the external auditor to use; we are most grateful to him for this assistance.

The other activities of the Foundation include funding of the Cosmos Club Award, which was presented last year to television news journalist Jim Lehrer, and will be presented to Elie Wiesel on May 1st of this year. The Foundation also presents the John P. McGovern Awards in the arts, humanities, and sciences; on October 28, 2005, Professor Steven W. Squyres, principal scientist for the Mars Exploration Rover Mission, received the Award and gave a brilliantly illustrated talk on the development and accomplishments of that program. The Foundation’s annual concert at the Phillips Collection was given on 13 November 2005 by pianist David Korevaar; his recital included works by Louis Aubert, Beethoven, Lowell Liebermann, and Ravel.

This was also a year of transition for the Foundation. Three dedicated former trustees—Willis Shapley, Gerald Tape, and Theodore Schad—died, and will be greatly missed by their colleagues. James Blair was appointed a trustee, and Henry Work and John Daniel Reaves became Advisors during the year. Alan Fern has ended five years of service as the Foundation’s Chairman and will be succeeded by Mark Olshaker. Mr. Fern hopes to continue participating in the deliberations of the Foundation as a Trustee, and hopes that his successor will find the chairmanship as rewarding and inspiring as he has.

ALAN FERN, Chair

The Cosmos Club Foundation continued its mission to support the intellectual community both within and outside the Cosmos Club through its lecture/award programs and its grants-in-aid to deserving graduate students of area universities. It also supports a concert each year at the Phillips Collection.

During the past year, the McGovern Award in Science was awarded to David Billington on October 6, 2004. Mr. Billington’s approach to the history of bridges uniquely combines aesthetics and engineering, and in his McGovern lecture he spoke impressively about the various uses of concrete in bridge construction during the past century.

The Grants-In-Aid program continued to be a centerpiece of the Foundation’s program. This past year 201 applications were received and 25 proposals were approved for funding (compared with 22 the previous year). Thanks to the continuing support from members, we were able to provide support in the amount of $35,700 to applicants from seven area universities. The projects involved a broad range of subjects, including biological sciences, psychology, literary history, art history, economics, and philosophy. Once again we are grateful to the Consortium of Washington Area Universities for their collaboration in this important undertaking; we could not have made these grants without them.

Our Treasurer, Mr. Huebner, was careful (as always) in his stewardship of the Foundation’s assets. The total value of all investments increased substantially during the Foundation’s fiscal year (Jan. 2004 to Dec. 2004) to end the year at $1,015,221. The indifferent performance of the equities market and issuance of grants-in-aid checks has reduced the total slightly since then. The assets as of April 13 stand at a total of $969,703 (about $202K of which is in the McGovern Fund), diversified into two stock market index funds, two bond market index mutual funds, and three money market funds. In addition, contributions of $34,575 were received from individuals. Expenditures for the fiscal year totaled $48,661.

The Foundation welcomes Virginia Mars as a new Trustee, replacing our long-time trustee, the late James Wallace.

Once again we thank the Board and members of the Cosmos Club, who have so generously supported our work. We look forward to the presentation of the Cosmos Club Award (which the Foundation supports) to Jim Lehrer in September, and we already have plans underway for several McGovern Lecture programs that promise to make the coming year as significant and interesting as this one has been.

ALAN FERN, Chair

The Cosmos Club Foundation continued its mission to support the intellectual community both within and outside the Cosmos Club through its lecture/award programs and its grants-in-aid to deserving graduate students of area universities.

During the past year, the McGovern Award in the Arts was awarded to the distinguished director of the National Symphony Orchestra, Leonard Slatkin, on December 8, 2003. Mr. Slatkin spoke to the audience on “Classical Music – Is It Dead Yet?” and explored the challenges of building audiences for concerts, including new music in programs, and other issues faced by music organizations today.

The Foundation’s benefactor, Dr. John P. McGovern, was honored by the Club with a special Citation for Distinguished Service on the anniversary of his 50th year of membership in Club. The award was presented to Dr. McGovern at his home in Texas by Tedson Meyers on November 17, 2003.

The Foundation also joined the Board and the Awards Committee in presenting the Cosmos Club Award to the distinguished test pilot and aviation pioneer, Brigadier General Charles Yeager, on April 19, 2004.

The Grants-In-Aid program was robust this year. A record 217 applications were received and, owing to the substantial number of individual contributions from members and the improvement in investments, we were able to grant awards totaling just under $30,000 to 22 applicants from eight area universities. This is a substantial increase from the 13 awards last year. The projects involved a broad range of subjects, including biological and physical sciences, psychology, European history, political history, art history, English literature, and geography. We are grateful to the Consortium of Washington Area Universities for their collaboration in this important undertaking; we could not have made these grants without them.

The Phillips Collection presents a concert each year supported by a fund from the Foundation. This year, the concert was on November 16, 2003, presented violinist Elisabeth Adkins and pianist Edward Newman in works by Stravinsky, Prokofiev, and Beethoven.

Thanks to the diligent management of the Foundation’s assets by our treasurer, Mr. Huebner, the chair of the financial trustees, Mr. Staats, and the financial trustees of the Foundation, and thanks to the improved financial scene, the total value of all investments increased during the Foundation’s fiscal year (Jan. 2003 to Dec. 2003) by $120,014. The assets now stand at a current total of $952,880 ($201,615 of which is in the McGovern Fund), diversified into two stock market index funds, two bond market index mutual funds, and three money market funds. In addition, contributions of more than $39,000 were received from 232 individuals, and we received a bequest of $4,534 in memory of Hugh H. Darby. Expenditures for the year totaled $45,757.

The Foundation noted with great sadness the passing of our long-time trustee and active supporter, James Wallace. Even while he served with distinction as president of the Cosmos Club, Jim found time to participate actively in the deliberations of the Foundation. His dry wit, insight, and wisdom will be sorely missed by all of us.

Once again we salute the Board of the Cosmos Club, and the many individuals who have so generously supported our work. We already have plans underway for several events that promise to make the coming year as significant and interesting as this one has been.

ALAN FERN, Chair

The Cosmos Club Foundation continued to fulfill its mandate to support the intellectual community both outside and within the Cosmos Club through its programs and its grants-in-aid to deserving graduate students of area universities.

This high level of activity was possible only through the careful management of the Foundation’s assets by its Treasurer, J. Stephen Huebner, and Trustees, who managed to keep the assets of the Foundation intact—indeed growing—despite the continuing unfavorable investment environment. Since income from investments is so tenuous, the Foundation relies more than ever on the generosity of Club members and others who share our commitment to these projects. It is heartening to report that the response to this year’s request for contributions reached an all-time high of about $40,000. Augmented by a substantial grant from the Cosmos Club Endowment, and by a generous offer from the Russian-American Foundation to share the cost of Norman Mailer’s travel to Washington, the Foundation was able to manage all the activities it had hoped to support during the year within its budget.

The 2002 McGovern Award in literature was given to Norman Mailer on November 15, 2002. Mr. Mailer read from one of his essays, spoke about his work in both fiction and non-fiction, and, after a conversation with Foundation Trustee Mark Olshaker, fielded questions from the audience.

Oceanographer and deep-sea explorer Robert D. Ballard was the recipient of the 2003 McGovern Award in Science on January 9, 2003. Dr. Ballard’s illustrated talk covered a number of his achievements, including his work in deep-sea geology, his work on submersibles for the U.S. Navy, his location of such notable sunken ships as the HMS Titanic and PT-109, and his current exploration of ancient trade routes in the Mediterranean by tracing deposits of cargo once carried on Greek and other ships.

The Foundation also supported the Cosmos Club Award, given on April 15, 2003, to noted historian Natalie Zemon Davis.

Each year, funds from the Foundation support one of the public concerts at The Phillips Collection. This year’s concert, on November 17, 2002, was by the Verdehr Trio.

Ninety-one applications were received for the Foundation’s grants-in-aid program from graduate students at institutions associated with the Consortium of Washington Area Universities. This program provides modest grants (up to $3,000) to support specific research needs in all fields of graduate study. Thirteen grants-in-aid were awarded, in fields as diverse as archaeology, physics, political science, history, and physiology. Grant recipients from previous years made brief presentations about their work at a dinner on April 29, 2003.

To assist in future fund-raising, and to explain the activities of the Foundation to interested parties, a new brochure was drafted by J. Stephen Huebner and published early in 2003.

The financial details are these: the market value of the Foundation’s assets at year’s end was $832,866 ($227,017 of this in the McGovern Fund), an increase of $64,165 over last year. The Foundation’s investments are diversified into two stock market index funds, two bond market index mutual funds, and three money market funds. Two-hundred-fifty-six contributions from individuals totaling $39,621, and $147,000 from the Cosmos Club Endowment income, offset losses in some of the investment accounts. The Foundation expended $52,473 during the year, including $26,612 for grants-in-aid and $11,984 for McGovern Award programs, with the remainder supporting the Cosmos Club Award, publication of the brochure, and other administrative costs.

We regret to report the death recently of one of the founding Trustees of the Cosmos Club Foundation, Frank B. Brady, who had served as an Advisor in recent years until failing health caused him to submit his resignation last year. The longest-serving member of our board, and one of its former secretaries, Mr. Brady was a faithful supporter of the Foundation’s work, and he will be missed. As the new year begins, the term of a long-time Trustee, Jack Perlmutter, comes to an end; happily he has agreed to continue as an Advisor to the Foundation, so we can continue to benefit from his enthusiasm and ideas. At the same time, a new Trustee, Robert S. Martin, joins us, and we look forward to working with him in the coming years.

We warmly thank the Board and the members of the Cosmos Club for their generous and continuing support of the Foundation’s work, and we look forward to bringing you and the intellectual community of Washington together at more programs of the quality I have described in this brief account.

ALAN FERN, Chair

This report begins with a salute to Priestley Toulmin, who relinquished the chairmanship of the Cosmos Club Foundation on 1 July 2001 after five years of brilliant and dedicated service. Pete’s term as chairman was notable for its stewardship of the Foundation’s endowment and assets, for its development and expansion of the Foundation’s activities, and for his humane and sympathetic leadership of the board of trustees. He will be greatly missed as chairman, but happily the Foundation will continue to benefit from his wisdom and organizational skills as he continues as a trustee. Alan Fern was designated the new chairman.

Established in 1967, the Cosmos Club Foundation is a tax-exempt organization intended to encourage the arts, sciences, literature, and humanities through awards, grants, and other programs. In fulfillment of its tax-exempt status, it is one of the outreach entities of the Cosmos Club, reaching beyond the membership with its activities. For example, several years ago – following the suggestion of trustee Rita Colwell – the Foundation established a program of grants-in-aid to deserving graduate students in area universities. The program is now notably successful, having become better known among university graduate departments. During the past year there were 171 applications for awards, which were carefully reviewed by Foundation trustees and by many helpful volunteers from the Club membership. Seventeen awards were finally made, to students in the sciences and humanities from six area institutions. Each year, the Foundation holds a dinner for the previous year’s recipients, to learn how the grant money was used in the furtherance of their research.

The Foundation is perhaps best known for its funding of the Cosmos Club Award and its administration of the John P. McGovern Award Lecture Series. This year’s Cosmos Club Award, directed by the Club’s Awards Committee, was given on 4 April 2002 to former Senator and Ambassador Daniel Patrick Moynihan. There were two McGovern Awards during the year. On 3 October 2001 Dr. J. Craig Venter spoke about his work in deciphering the human genome, and potential future applications of genomics. On 1 March 2002 the noted British actor, Sir Derek Jacobi, captivated an overflow audience with his presentation on the work of a classical actor. After his remarks, Sir Derek joined in a panel discussion with his friend and colleague, actor-director Richard Clifford and local Shakespeare expert John Andrews, chaired by trustee Mark Olshaker. The Foundation remains deeply indebted to Dr. McGovern for his continuing and generous support of these programs, which provide the Club and the intellectual community at large with challenging programs by notable leaders in many fields.

In addition, the Foundation sponsored an annual concert at the Phillips Collection (this year by clarinettist Loren Kitt on 16 December 2001)and assisted in the sponsorship of a counseling workshop for the D.C. Public Schools. At the close of the Club’s fiscal year, the Foundation’s assets were $768,701, $22,635 below the fiscal year 2000 level. Total expenses for the year were $51,147. The Foundation received $40,070 in contributions from Dr. McGovern, from other members, and from the Club’s endowment, but given the difficult economic investment situation today much more support from these sources will be necessary in order to maintain our activities at the present level. The trustees and advisors of the Cosmos Club Foundation deeply appreciate the enthusiastic support of the Cosmos Club’s members and Board of Management, and look forward to working together to provide expanded programs of intellectual substance and enlightenment in the years to come.

ALAN FERN, Chair

The Foundation, established by the Club in 1967, is a tax-exempt entity whose purposes are to encourage the arts, sciences, literature and humanities, chiefly through awards or grants. Fifteen trustees see to the affairs of the Foundation, three being ex-officio by virtue of holding offices of financial responsibility for the Club. The other trustees are appointed by the Club’s Board of Management. Apart from the appointing relationship, the Foundation enjoys wide discretion in conducting its business.

The major continuing functions of the Foundation at this time are three: (1) funding the annual Cosmos Club Award, which this year was awarded to Donald A. B. Lindberg, pathologist and Director of the National Library of Medicine; (2) administering the John P. McGovern Lecture Awards; and (3) in collaboration with the Consortium of Universities of the Washington Metropolitan Area, conducting a program of grants-in-aid to graduate students in local universities. In addition, the Foundation supports, through a previous endowment grant, an annual concert at the Phillips Collection.

The grants-in-aid program is now in its third year. Modest grants are awarded to support specific projects or research needs related to the students’ work toward an advanced degree. There are no restrictions as to academic field. Proposals are evaluated by the Trustees and by expert reviewers, for the most part Club members, whose essential contributions we gratefully acknowledge. In the 2000 competition, we made fourteen awards in response to 168 proposals. This program clearly responds to a real need in the “young scholars” community, and we continue to seek ways to expand it.

American writer E.L. Doctorow presented a highly successful McGovern Lecture this year. Illness compelled Shakespearean actor and scholar Sir Derek Jacobi to postpone his lecture, which will be rescheduled some time next year. Biochemist/entrepreneur Craig Venter is to receive a McGovern Award and present his lecture in October 2001.

Our modest web page, at http://www.cosmosclubfoundation.org, describes our activities and provides links to related sites, such as the Club page and that of the Consortium of Universities. In another attempt to realize our unique potential as a “convener” (pointed out several years ago in the ‘Millennium Report’), the Foundation continues to support planning for the “Dialogue” initiative to identify and explore crucial questions in areas of national and global concern. Furthermore, this year we have collaborated with two Club committees (Music and Program) in facilitating events that extend beyond the Cosmos Club community: a chamber-orchestra concert and a workshop for counselors in the D.C. schools.

The work of the Foundation depends heavily on the knowledgeable, gracious, and patient help of Mrs. Margaret Clark and her associate, Ms. Jill Mráz. We are much in their debt.

PRIESTLEY TOULMIN, Chairman

The Foundation, established in 1967, is a tax-exempt entity whose purposes are to encourage the arts, sciences, literature and humanities, chiefly through awards or grants. Fifteen trustees see to the affairs of the Foundation, three being ex-officio by virtue of holding offices of financial responsibility for the Club. The other trustees are appointed by the Club’s Board of Management. Apart from the appointing relationship, the Foundation enjoys wide discretion in conducting its business.

The active functions of the Foundation at this time are three: (1) funding the annual Cosmos Club Award, which this year was awarded to Rita R. Colwell (‘88), microbiologist and Director of the National Science Foundation; (2) administering the John P. McGovern Lecture Awards; and (3) in collaboration with the Consortium of Universities of the Washington Metropolitan Area, conducting a program of grants-in-aid to graduate students in local universities. In addition, the Foundation supports, through a previous endowment grant, an annual concert at the Phillips Collection.

The grants-in-aid program replaces the Young Scholars Award essay contest of earlier years. Modest grants are awarded to support specific projects or research needs related to the students’ work toward an advanced degree. There are no restrictions as to academic field. Proposals are evaluated by expert panels, composed so far as feasible by Club members, and selected by the Trustees. In the 1999 competition, we made eight awards in response to 52 proposals. This program clearly responds to a real need in the “young scholars” community, and we continue to seek ways to expand it.

McGovern Lectures were presented during the past year by film makers James Ivory and Ismail Merchant and astrophysicist Wendy Freedman; future awards are planned this calendar year for Sir Derek Jacobi and E.L. Doctorow.

In obeisance to new modes of communication, we have established a Web page describing our activities. In another attempt to realize our unique potential to serve as a “convener” (pointed out several years ago in the ‘Millennium Report’), the Foundation is supporting planning for the “Dialogue” initiative to identify and explore crucial questions in areas of national and global concern.

The Foundation receives its funds from contributions, grants, and yields from a portfolio of investments. Its finances are overseen by Treasurer Steve Huebner, whose careful and perceptive approach keeps us on a well-planned track. Lazard Frères is the Foundation’s investment advisor, operating under guidelines established by the Trustees. IRS regulations require regular demonstration of broadbased financial support from individual contributions. Thus from time to time the Foundation solicits such contributions from Club members, and such an appeal brought us gratifying expressions of support this year. In addition, we acknowledge with much gratitude sizeable donations and bequests from Club members John P. McGovern, Albert W. Atwood, and Edwin E. Ferguson (the last received in the year 2000), and a cash contribution from the Cosmos Club itself.

Expenditures for 1999 were $25,079, of which $5,999 was for the annual Cosmos Club Award program; $54 for the previous year’s Young Scholars award program; $6,200 for the Grants-in-Aid program; and $8,088 for expenses related to the McGovern Award: a total of $20,341. The balance of $4,738 went for administrative expenses and investment management fees.

Total receipts for the year were $236,856, which included $181,395 in contributions (of which $48,000 was to the McGovern Fund, and $116,000 was a bequest to the Main Fund) and $55,461 in investment income, including $30,598 in realized capital gains. Thus expenditures and current (non-capital-gains) income were closely balanced overall.

The market value of the Foundation’s assets increased from $603,611 on December 31, 1998 to $797,268 a year later. On April 30, 2000, the market value of the assets stood at $791,804. Of this amount, 53 per cent was in equity funds and equities, 32 per cent in fixed income funds and securities, and 15 per cent in cash and equivalents.

PRIESTLEY TOULMIN, Chairman

The Foundation, established in 1967, is a tax exempt entity whose purposes are to encourage the arts, sciences, literature and humanities, chiefly through awards or grants. Fifteen trustees see to the affairs of the Foundation, three being ex officio by virtue of holding offices of financial responsibility for the Club. The other trustees are appointed by the Club’s Board of Management. Apart from the appointing relationship, the Foundation enjoys wide discretion in conducting its business.

The activities of the Foundation at this time are four: (1) funding the annual Cosmos Club Award, which this year was awarded to Jacob Rabinow (’65), Engineer and inventor extraordinaire; (2) administering the John P. McGovern Lecture Awards; (3) supporting an annual concert at the Phillips Collection; and (4) in collaboration with the Consortium of Universities of the Washington Metropolitan Area, conducting a program of grants in aid to graduate students in local universities. This program replaces the Young Scholars Award essay contest of earlier years. Modest grants are awarded to support specific projects or research needs related to the students’ work toward an advanced degree. There are no restrictions as to academic field. Proposals are evaluated by expert panels, composed so far as feasible by Club members, and selected by the Trustees. In the 1998 competition, limited resources constrained us to make only eleven awards in response to 143 proposals, or only a quarter of those rated ‘Excellent’ or ‘Outstanding’. We are considering how best we can respond in future years to what is clearly a real need in the “young scholars” community.

McGovern Lectures Awards were presented during the past year to writer Saul Bellow on June 16, and surgeon Dr. Michael DeBakey (’59) on September 28, 1998.

In response to the expressed demand of participants in the Millennium Planning Forum reported last year, the Foundation hosted, on a trial basis, a ‘Mail List’ on the Internet to facilitate communication among the 75 or so organizations involved. The experiment was cancelled after half a year of stunning lack of interest. We are nonetheless cautiously planning a Web page describing our activities. In another attempt to realize our unique potential to serve as a “convener” (pointed out several years ago in the ‘Millennium Report’), the Foundation is supporting planning for the “Dialogue” initiative to identify and explore crucial questions in areas of national and global concern.

The Foundation receives its funds from contributions, grants, and yields from a portfolio of investments. Its finances are overseen by Treasurer Gerald Tape, whose wise and faithful service continues to be of inestimable benefit to the Foundation and the Club. Lazard Frères is the Foundation’s investment advisor, operating under guidelines established by the Trustees. IRS regulations require demonstration of broad based financial support from individual contributions. Thus from time to time the Foundation solicits such contributions from Club members, and such an appeal is planned for the coming year.

Expenditures for 1998 were $38,507, of which $3,159 was for the annual Cosmos Club Award program; $4,582 for the previous year’s Young Scholars award program; $13,460 for the Grants in Aid program, and $12,889 for expenses related to the McGovern Award; a total of $34,090. The balance of $4,407 went for investment management fees and administrative expenses.

Total receipts for the year were $45,926, which included $5,011 in contributions (essentially all to the McGovern Fund) and $40,915 in investment income, including $18,631 in realized capital gains. Thus expenditures for the year closely balanced income adjusted for contributions.

The market value of the Foundation’s investments increased from $574,436 on December 31, 1997 to $592,729 a year later. On March 31, 1999, the market value of the portfolio stood at $607,483. Of this amount, 63 per cent was in equity funds, 34 per cent in fixed income funds, all administered by Lazard Frères, and 4 per cent in cash and equivalents.

The Trustees wish to express theit thanks to Secretary J. Stephen Huebner, whose incisive minutes have refined our ramblings and clarified our deliberations.

PRIESTLEY TOULMIN, Chairman

The Foundation, established in 1967, is a tax-exempt entity whose purposes are to encourage the arts, sciences, literature and humanities, chiefly through awards or grants. Fifteen trustees see to the affairs of the Foundation, three being ex-officio by virtue of holding offices of financial responsibility for the Club. The other trustees are appointed by the Club’s Board of Management. Apart from the appointing relationship, the Foundation enjoys wide discretion in conducting its business.

The activities of the Foundation at this time are four: (1) funding the annual Cosmos Club Award, which this year is awarded to Sandra Day O’Connor, Assoicate Justice of the Supreme Court; (2) administering the John P. McGovern Lecture Awards; (3) supporting an annual concert at the Phillips Collection; and (4) conducting the Foundation’s annual Young Scholars Award competition (in collaboration with the Consortium of Universities of the Washington Metropolitan Area). Outstanding graduating seniors submit essays that are judged by the trustees on the basis of creativity, command of language and expression, contemporary significance, and promise of post-collegiate achievement. In the 1997-98 competition, the prize was shared by Thomas S. Valente, of Catholic University, whose essay was entitled, “Conscience Versus Constituency: the Ethical Dilemma Facing American Politicians,” and Anna Takaku, of the University of Maryland, who wrote on “Making a Difference For The Children of Nepal.”

Owing to scheduling complications, no McGovern Lectures were presented during the past year, but three eminent practitioners of letters and science have accepted offers of the Award. Writer Saul Bellow will be presented his Award at ceremonies at the Club June 16, and surgeon Dr. Michael DeBakey will present his McGovern lecture September 28, 1998.

In this thirtieth year of our institutional age, the Trustees held a mini-retreat to review our past, assess our present, and consider our future. From this review came a number of suggestions for new programs and re-orientation of existing ones. Several of these are still in the planning stage, but one has taken place. Several years ago the “Millennium Report” pointed out the unique potential of the Club, and especially the Foundation, to serve as a “convener” on issues of importance and relevance to our concerns, and to engage in cooperative efforts with other cultural institutions. This April, the Foundation hosted, in cooperation with the Nation’s Capital Bicentennial Celebration Foundation, a forum on planned activities tied to the year 2000, at which invited representative of 75 or so organizations had the opportunity to discuss their planned activities and develop lines of communication with agencies having related activities in mind.

The Foundation receives its funds from contributions, grants, and yields from a portfolio of investments. Its finances are overseen by Treasurer Gerald Tape, who succeeds Carl H. Schwartz, Jr., whose long, wise, and faithful service was of inestimable benefit to the Foundation and the Club. Lazard Frères is the Foundation’s investment advisor, operating under guidelines established by the Trustees. IRS regulations require that a defined proportion of the Foundation’s financial support derive from individual contributions. Thus from time to time the Foundation solicits such contributions from Club members. Although no such appeal was conducted in 1997, the Foundation received donations totaling $10,461, which includes a generous transfer of assets from a private foundation by one of our Trustees, Dr. Lorenz Ng, and a donation frm Dr. John P. McGovern in support of the McGovern Lecture Award program.

Expenditures for 1997 totaled $19,078, of which $4,899 was for the annual Cosmos Club Award program; $4,675 for the Young Scholars award program; $5,603 for expenses related to the McGovern Awards; a total of $15,178. The balance of $3,900 included $997 paid to Lazard Frères. Other administrative expenses included $1,400 in auditors’ fees, $1,000 for personal liability insurance for the Trustees and advisors, and $504 for miscellaneous expenses.

Total receipts for the year were $93,210, which included $10,461 in contributions contributions as described above and $82,749 in investment income, which includes an unusual $64,112 in capital gains resulting mostly from a restructuring of the portfolio. Thus expenditures for the year closely balanced income adjusted for capital gains and contributions.

The market value of the Foundation’s investments increased from $513,811 on December 31, 1996 to $580,025 a year later. On March 31, 1998, the market value of the portfolio stood at $627,627. of this amount, 83 percent was in a diversified group of funds administered by Lazard Frères, 11 percent in high-grade corporate and U.S. Treasury debt instruments, 3 percent in common stocks, and 3 percent in cash equivalents.

PRIESTLEY TOULMIN, Chairman