An additional 15% of our grants went to the areas of employee and community affairs, which include organizations such as the Inner City Foundation for Charity, Volunteer Legal Services (located in Rochester, N.Y., Chicago, Ill., and New York, N.Y.), Junior Achievement and Habitat for Humanity.

Under the umbrella of employee and community affairs, the Foundation manages two employee volunteer programs:

Social Service Leave enables a select group of employees to volunteer full-time and at full pay. In 2008, six employees participated in the leave program. The projects addressed such issues as improving a food bank’s operation; Habitat for Humanity; skills for living for low-income families; international adoption clinic; Minority Engineering Program; and work skills and life skills for the disabled. Almost $500,000 was spent on the Social Service Leave Program in 2008.

The Xerox Community Involvement Program marries the voluntary spirit of our people with Xerox funding to participate in the betterment of the communities where we work and live. In 2008, the Foundation invested approximately $909,000 in the program, and 9,893 Xerox employees participated in 604 projects.

In addition, Xerox people give their time and talent to encourage the next generation of scientists and engineers by mentoring teams of students who compete in the FIRST robotics program. For 40 years, Xerox people have volunteered at elementary schools to teach classes that show the “gee whiz” creativity of science and technology through the Xerox Science Consultants Program. The company also sponsors an invention competition for elementary school students that celebrates the ingenuity of children’s innovative spirit. More than 2,000 students are touched by this effort each year.

Here are examples of how Xerox people work collaboratively to help the communities where they live and work:

• Five Xerox Netherlands employees helped children with dyslexia by participating in a program that donates multifunction printers to charities and schools that provide support to dyslexic students. As part of the program, the team awarded a young girl with dyslexia a WorkCentre 7235 on a popular Dutch television show. With the capability to enlarge reading materials, she now is able to read more easily.
• As founding member of “Sociedad Activa,” Xerox Chile is making a difference in the lives of two poor communities in the country. In Villa San Gabriel, the focus has been to arm the neighbors with the knowledge to start small businesses. In the Santo Tomas neighborhood, Xerox employees volunteered numerous hours painting, gardening and collecting the supplies necessary to open the door of a new nursery to provide free care to 124 children. Also, 20% of Xerox employees are involved in mentoring programs for middle school students from these two communities.
• Xerox employees in Monroe County, N.Y. took part in the Flower City Work Camp project and renovated the home of a needy family. Working with high school students during their spring break, the crew replaced windows, repaired the roof, remodeled bathrooms and kitchens and cleaned up the yard. The end result was a home that will provide a comfortable environment and a reliable shelter from the elements.
• Xerox Canada’s “Reveal Your True Colours” program adopted nine women’s shelters across Canada. From Mother’s Day “tea,” BBQs and fundraising events to food, toiletry and clothing drives, our dedicated employee champions and their teams of local volunteers continue to make a difference in the lives of the women and children who seek assistance from the adopted shelters.

United Way
Some 114 United Way organizations in the United States received 17.5% or $2.2 million of our investments – including $1 million to the United Way of Rochester, N.Y. home to the largest population of Xerox employees. In addition to the Foundation grants, Xerox employees donated an additional $1.3 million of their own money. With The Xerox Foundation and Xerox employees, United Way donations totaled $3.5 million.

National and Cultural Affairs
Xerox made 14.8% of our investments in the areas of national and cultural affairs. Xerox provided support to arts and cultural organizations such as the Martin Luther King Memorial in Washington, D.C., Dance Theater of Harlem, International Civil Rights Museum, Boston and Connecticut Ballet, Library of Congress, Connecticut Grand Opera, Kennedy Center, Lincoln Center, Ballet Hispanico, Rochester Philharmonic Orchestra, Garth Fagan Dance, and many more arts institutions in communities where our people work and live.

Institutions addressing a variety of national issues also are part of our investment portfolio. These included the National Urban League, National Child Labor Committee, Catalyst, American Foundation for AIDS Research, Lawyers’ Committee for Civil Rights Under Law, NAACP, Partnership for a Drug-Free America, Association for Hole in the Wall Gang Camps, Center for Advancement of Women, Paralyzed Veterans of America, National Center for Addiction and Substance Abuse, and Institute for Student Achievement.

Matching Gifts
We invested 3.9% of our budget in matching gifts to colleges and universities. More than 500 institutions received matching gift funds. The top five beneficiaries of this program for 2008 were the University of Rochester, Rochester Institute of Technology, University of Notre Dame, Rensselaer Polytechnic Institute and Cornell University.

Memberships
Membership payments accounted for 6.9% of our total allocation. Non-profit organizations in which Xerox is a member include the Business Roundtable, the Council on Foreign Relations, the Information Technology Association of America, the Conference Board, the American Electronics Association, the United Nations Association and the National Minority Supplier Development Council.

Disaster Relief
Of our total spending, 4.8% went toward relief and reconstruction efforts in the aftermath of Hurricane Ike along the Gulf Coast and the prolonged floods in the Midwest. The bulk of it went to the American Red Cross at both the national and local levels, with smaller amounts used to support our local community involvement committees.

Staying Current
Because we are aware that the state of corporate philanthropy continues to evolve and mature, and staying current with the latest thinking and practices is important to us, Xerox people are active participants in groups such as the Committee Encouraging Corporate Philanthropy, the Business Roundtable, the Conference Board’s Council of Corporate Foundation Executives, Business for Social Responsibility and the U.S. Chamber of Commerce’s Center for Corporate Citizenship.