Special Advisory: Grotto Foundation Change in Funding Priorities May 1, 2008 To Whom It May Concern: The Board of Directors of the Grotto Foundation has recently completed its strategic plan for the near future, which will result in the initiation of a five-year focused funding program. Accordingly, effective immediately, the Grotto Foundation will no longer accept or review applications or proposals for general grants. The Board and Staff will now spend the next five months establishing the specifics of that initiative and will announce and roll out the program in late October or early November of 2008. When the initiative is implemented in the fall, Grotto will consider only grant proposals from programs or organizations that have been specifically invited by Grotto to submit a proposal. The Grotto Foundation Board and Staff believe that, through strategically directed grantmaking toward a particular effort, we might be able to make a greater impact and better assess our own effectiveness in grantmaking. Although Grotto will not accept proposals for general grants in the coming year, we will retain our commitment to our Native Language Revitalization Initiative (NLRI), however, effective June 23, 2008, we will not be accepting any new NLRI grant applications. The NLRI will resume grantmaking and accepting applications on or before the January 15, 2009 deadline for consideration in April 2009. Also, we will continue our collaborative efforts for the benefit of the American Indian Family Empowerment Program (AIFEP) and the American Indian Leadership in Philanthropy Program. We will keep you informed as to our progress. Further information will be posted on our website at www.grottofoundation.org. With best wishes, Ellis F. Bullock Executive Director