I believe the National Center for Policy Analysis has reached a tipping point. We received $11.3 million in cash and commitments in 2007, including a $2.1 million gift for retirement reform and $1.5 million bequest. Because of our achievements, more people are considering major gifts.

We had an amazing year, including the publication of two groundbreaking books:

• We produced the State Health Care Reform Handbook, a one-of-its-kind blueprint for states to follow, with a foreword by former Florida Governor Jeb Bush.
• We also produced a first-of-its-kind Global Warming Primer, which is in its second printing. The Primer relies on easy-to-understand graphics to show the big picture: where we are now, and what we can reasonably say about the impact of climate change.

We were also successful in reaching our target audiences: policymakers, the media and the general public:

• The NCPA Web sites received 70.6 million hits in 2007, and we averaged more than 1 million visitors per month.
• The NCPA attained record media exposure in 2007, chalking up 179.5 million media impressions with an advertising value of more than $55 million.
• The John Goodman Health Blog, a resource for consumer-driven health care information, attracts more than 26,000 visitors each month at www.john-goodman-blog.com. It is growing at a rate of 10-20% a month.
• Our Debate Central website attracted a record number of students to the site, with more than 1.5 million hits per month.

Some special accomplishments this year include:

• Our NCPA Distinguished Fellow Robert McTeer was a frequent voice on tax reform and retirement issues on television and radio programs. He also kept these issues before the public on his blog, http://www.bob-mcteer-blog.com.
• The NCPA's Medicaid Service Center helps state-based think tanks with all of the elements needed to reform the fastest rising item in every state budget. Michael Bond, who runs the program, helped Jeb Bush with his health reforms in Florida and Mark Sanford in South Carolina. He is now working in other states.
• The NCPA co-sponsored the 12th annual Forbes Cruise for Investors. NCPA Chairman Pete du Pont and a world-class roster of experts presented informative roundtables and hard-hitting panels on profit and politics while cruising the Caribbean.
• Our successful Sumners Lecture Series continued during the last quarter with a luncheon talk by former Florida Governor Jeb Bush. We also hosted an interview with Karl Rove and co-sponsored an event with the Heritage Foundation at which Governor Pete du Pont interviewed Justice Clarence Thomas.

As we celebrate our 25th anniversary in 2008, we greatly appreciate your investment in the NCPA. Your generosity allows us to continue our work seeking innovative private-sector solutions to America's most difficult public policy problems.

The enclosed report provides a more detailed account of NCPA fourth quarter activities.

Thanks so much for your valued support, which makes all our activities possible.

Warm regards,

John C. Goodman

President