In 1998, the W. K. Kellogg Foundation asked the Harvard Family Research Project to examine current trends, gaps, and opportunities in foundation grantmaking for children and youth. Early in the process, it was clear that there were important transformations in funding goals and strategies underway. This report examines current grantmaking trends and describes promising new strategies to improve the well-being of America's children. The report describes how many foundations are rethinking their roles as risk takers, partners, and supporters of innovation and as promoters of their own and others' learning and accountability. The report also lays out a series of difficult challenges and trade-offs that warrant further discussion among foundations as they chart their role into the next century. The report addresses five specific questions: (1) What is the pattern of funding by age group, level, and sector? (2) What are the key lessons from past grantmaking that are informing future work? (3) What are the major trends in grantmaking strategies? (4) How are foundations reorganizing to develop their new strategies and accomplish their goals? and (5) What are the gaps, opportunities, and challenges for those who want to improve the status and well-being of children and youth? Contains four appendices, including an interview list, survey, and tables of top funders. (SD)