Operated as a pair of philanthropic funds, the Hyde Family Foundations works to improve the quality of life in Memphis. In order to counteract persistent socioeconomic and racial barriers and improve opportunities for underserved families in Memphis, the foundations have made improving the city's education system a priority of its grantmaking. Each year, the foundations award grants totaling over $10 million; of this amount, $4 million is designated to K-12 education initiatives. Hyde and Sloyan hoped the foundations' grantmaking would, over time, spur improvements that could demonstrate what is possible in a city that shares many of the political, social and economic challenges of other large, urban communities. Recognizing that a grantmaker is effective only when its grantees are effective, this case study is intended to help funders consider ways of promoting "effective grantees," one of Grantmakers for Education's Principles for Effective Education Grantmaking. The case study illustrates a number of practices--including the importance of ensuring strong leadership at grantee organizations, brokering relationships between grantee organizations and donor and civic leaders, providing technical assistance, convening community stakeholders to support grantees, creating learning communities to link and network grantees, and setting clearly defined goals and performance expectations for grantees--that can support and build the capacity of grantees and lead to greater impact. In addition, it underscores the importance of human capital, talent and leadership to grantee success, whether the grantee is a nonprofit organization or a publicly funded school or institution. (Contains 7 exhibits and 8 footnotes.)