The objectives of the American Institute of Physics are stated broadly in its charter as “the advancement and diffusion of the knowledge of physics”. Over the years, the actual tasks that are undertaken by the Institute in furthering these objectives shift materially, depending upon their interpretation and the interests and responsibilities of physicists at any given time. The AIP Governing Board and the staff have the obligation at all times to be alert and responsive to the needs of physicists. However, if the Institute is truly to serve physicists, physicists themselves must learn something of the Institute's capabilities and must participate in the establishment of its program of activities. To assist in this task, annual reports are made to the Member Societies and are published inPhysics Today. Some of the activities presented in this year's report are traditional, others have evolved only recently and require critical examination and, if acceptable, support of physicists so that these activities may be nurtured and may survive.