This annual report highlights the work of some grantees who are finding innovative ways to respond to today's new challenges based on a rigorous commitment by their leadership to gathering pertinent facts. These include cities that are planning wide-scale, lasting improvements in arts learning or out-of-school opportunities, basing their choices on tools such as market research and community mapping to accurately assess demand for services and illuminate local conditions. They include school districts and arts organizations that are figuring out creative ways to improve their own performance. In each case, the first essential step has been to get current, relevant facts upon which to make decisions. Without reliable data on existing conditions, one can not begin either to correctly diagnose a problem or identify options to address it. This approach of gathering and analyzing relevant data as a basis for decision-making, funding innovative solutions for today's challenges, and monitoring and reporting on the effectiveness of new strategies is central to the way The Wallace Foundation goes about its work. Wallace is among a growing number of foundations that have developed annual internal performance benchmarks to assess its own effectiveness in developing and sharing effective ideas and practices. Working together, the board and staff of this foundation endeavor to face facts about challenging issues, develop solutions, and help spread effective ideas and practices that improve learning opportunities for people across the country. [This report was produced by The Wallace Foundation.]