The Paul G. Allen Family Foundation is cutting back on its giving to non-profits this year, according to a message on its Web site.

The foundation "is not immune to the current financial crisis," says the message signed by Paul Allen and sister Jody Patton. It faces challenges of "managing spending when resources are down, confronting an uncertain future, and helping to meet increasing community needs."

In response, the family foundation has "had to reduce both the number and size of grants in some areas," they say.

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The message is "the first move in trying to create reasonable expectations for grant recipients," says David Postman, a spokesman for Vulcan, Paul Allen's company. The foundation has not disclosed exactly how much it plans to reduce its giving.

The foundation is shifting its strategy to address more immediate needs, such as food, shelter and jobs.

Allen's approach to philanthropy has been eclectic and local.

"For the foreseeable future, many of our grants will focus on helping non-profit organizations respond and adjust to the difficult economic circumstances," Allen and Patton say.