We are pleased to report that, at the September 30th end of our fiscal year, the Foundation reported income of $1,587,000, plus pledges of $329,598, for a total of $1,916,598 raised in FY01. We transferred $490,000 to the Otis Health Care Center to offset operating expenses, primarily caused by delayed reimbursement from Medicare/Medicaid programs, beyond the Otis Health Care Center's control. Our immediate goal is to retire short-term debt incurred to pay for construction of the new Stratton House Nursing Home, thus eliminating interest payment.

Wood's Tea Company Concert pleases. On July 28th, nearly 300 spectators on the Townshend Common enjoyed the 3rd annual concert of the Woods Tea Co. The evening was sponsored by a supporter of Grace Cottage Foundation who insists on remaining anonymous. Thank you, X!

Changing of the Guard. According to plan, I have resigned as Executive Director of Grace Cottage Foundation, effective September 30, 2001. Also, per plan, I have asked Andrea Seaton, Director of Development to succeed me. Simultaneously, Mary Gyori has moved up to replace Andrea.

I willingly accept the Foundation Board of Directors' request that I continue as board president, personally continue to seek substantial philanthropy, and monitor the Foundation's Major Gift and Planned Giving programs. Never, since its inception in 1994-5, have I doubted the capability of the Foundation to carry out its mission to assure the future stability of the Otis Health Care Center. In a small shop like the Foundation, it's a real challenge to meet fundraising goals ($1,000,000 average yearly target), while carrying out all public relations, advertising, publicity and special event functions for the Otis Health Care Center, but we do it --- and will continue to do it well. I'm confident that Andrea and Mary will further develop the fundraising potential with their professionalism, enthusiasm, capacity for hard work, and strong feelings for Grace Cottage.

The Foundation team, working in close partnership with the Otis Health Care Center administrator, and with the help of a loyal, supportive community, faces the future with full confidence that it will carry out its mission.