The paper describes output measures of performance of the Western Australian Health Promotion Foundation (Healthway), using a system known as graduated project evaluation (GPE). Results are reported at the basic and process levels of evaluation on 588 health and sponsorship projects, and at the impact level based on surveys of 5710 spectators and participants at 53 sport, arts and racing events sponsored by Healthway funds. Ar the basic and process levels the average Healthway project reached 7449 people directly and generated media coverage of health messages on 27.3 occasions. It secured on average, 0.99 healthy structural reforms in recreational or cultural venues, involved the participation of local community members in project administration in 38% of instances, ar rd provided 1596 person-hours of health education. Non-smoking, safe drinking nutrition, exercise, sun protection, safe sex and injury prevention health messages were promoted using 24 different types of sponsor benefits. Of the 5710 respondents surveyed post-event, 67% were aware of the promoted health message and 82% of these understood what the message meant. Four per cent of all respondents intended to take action ranging from seeking information to adopting the health behaviour. A comparison of the cost-effectiveness of small and large sponsorship projects is given to illustrate the use of GPE to inform funding decisions. Smaller projects out-performed larger projects on all available indicators. We discuss the peculiar features of the health promotion foundation concept, methods to improve its performance and implications for future research.