Dear Friends,
Five years ago we launched our Breaking New Ground fundraising campaign, and in September 2012 we literally broke ground for the expansion of Packard Children’s Hospital. Construction is well under way for the project, which will double the Hospital’s size and add 150 private rooms. The expansion also will provide additional space for advanced diagnostic and treatment equipment, more treatment rooms, nursing and support services, and expanded clinics. 
None of this would be possible without the generosity of our donors, who helped us exceed our $500 million campaign goal. Campaign funds also support education, training, and research at the pediatric programs of the Stanford School of Medicine.
Overall in 2012, donations for all programs at the Hospital and School totaled $87.6 million, thanks to 11,418 loyal donors. Some highlights of how these funds support child health are noted in this report.
On the grantmaking side of the Foundation’s work, we made major strides toward improving the health care system for children, particularly those with special health care needs. Increasing numbers of children with chronic conditions are living longer, and the current system is ill-equipped to handle their care. Our Board of Directors approved 24 grants totaling $2.4 million to support a range of system improvement projects, some of which are highlighted in this report.
We also continued to build the California Advocacy Network for Children with Special Health Care Needs, which provides information about, and advocates for, a higher-quality system of health care. This network brings together families, providers, payers, policymakers and others to press for better programs and policies.
To bring heightened attention to the need for system reform, we launched a range of communications efforts, including laying the groundwork for a new web presence devoted to special health care needs. We gained national visibility for our special needs work with publication of an article about our program in the newsletter of the respected Grantmakers in Health association.
In a similar vein, we continued our focus on elevating the priority of children, serving as an essential source of data and information for organizations and policymakers throughout the state. In addition to operating our www.kidsdata.org site, we provided small grants to encourage nonprofits around the state to use data in their planning and work. We also provided funding support for media organizations to cover children’s issues, and we released reports on key topics in child health, including the impact of poverty on child health and well being.
You may have noticed that the Foundation adopted a new logo in 2012. After 14 years with the original brand, 
we thought it was time for an updated graphic that would be more compatible with today’s online world and would also more clearly reflect our work. The child being lifted symbolizes our efforts to elevate the importance of children, while the starburst shape and cheerful colors convey energy and optimism. The words “children’s health” also are much more prominent in our refreshed look.
We are deeply grateful for your ongoing interest in supporting the health of children in our communities and around the world.
Sincerely,
J. Taylor Crandall
Board Chair
David Alexander, MD
President and CEO