This annual report highlights the grantmaking program of the Foundation for Child Development (FCD) over the past 6 years, reflects on lessons learned, and shares emerging directions for the foundation. The report begins with messages from the chair and the president highlighting the organization's commitment to universal prekindergarten in the United States. A special report examines the state of play in universal prekindergarten in the United States and the considerable challenges to its widespread implementation, concluding that the movement for universal prekindergarten collides with state and federal deficits and suffers from negative comparisons to Head Start programs in the "Head Start reauthorization wars." A list of selected FCD resources related to universal prekindergarten and full-day kindergarten is included in the report. In addition, a list of grants for universal prekindergarten and full-day kindergarten from 1997 to 2003 illustrate the evolution of the FCD focus from child care to universal prekindergarten and full-day kindergarten. Also included in the annual report is information on funding guidelines, and a financial statement. Closing the report is a list of the board of directors, council members, and FCD staff. (KB)