This is an annual report from a foundation whose principal goal is the development of practical alternatives to the traditional methods of educating children and training teachers. In addition to financial statements, articles are presented which describe the foundation's activities in several areas: (1) an assessment of National Follow Through, (2) a developmentally valid preschool curriculum, (3) a cognitively oriented bilingual program, (4) early childhood education in Latin America, (5) home visitation by educators to parents, (6) a generative approach to the writing and producing of plays by children, (7) the difference between operative and figurative thought, and (8) data processing improvements at High/Scope. (DAG)