2017-03-10T10:51:58-06:00 2016-06-30 GRANT THORNTON LLP 757 THIRD AVE 3RD FLOOR NEW YORK NY 100172013 990 2015-07-01 237112974 HARLEM CHILDREN'S ZONE INC % ALPHA CONTEH CONTROLLER HARL 2123603255 35 East 125th Street New York NY 10035 JAMES D HUTTER cfo 2123603255 2017-03-09 true Scott Thompsett P00741490 2125990100 2015 2021-01-29 14:40:06Z anne williams-isom 35 EAST 125TH STREET NEW YORK NY 10035 112906630 false X WWW.HCZ.ORG X 1970 NY HCZ is a pioneering, non-profit community BASED ORGANIZATION THAT WORKS TO ENHANCE THE QUALITY OF LIFE FOR CHILDREN AND FAMILIES IN SOME OF NYC'S MOST DEVASTATED NEIGHBORHOODS. 18 16 3420 0 0 0 193250043 85410891 0 0 128955 30872 3371941 3369650 196750939 88811413 6015634 10567111 0 0 61650523 61467445 65000 70000 1834374 31335882 26620963 99067039 98725519 97683900 -9914106 595673604 577217467 98672095 100390752 497001509 476826715 X HARLEM CHILDREN'S ZONE IS COMMITTED TO BREAKING THE CYCLE OF POVERTY IN CENTRAL HARLEM BY WORKING AT SCALE TO BUILD COMMUNITY, STRENGTHEN FAMILIES, AND ENSURE OUR CHILDREN SUCCEED FROM BIRTH THROUGH COLLEGE GRADUATION. WE HAVE CREATED AN INTERLOCKING NETWORK OF PROGRAMS SO THAT OUR STUDENTS CAN SUCCESSFULLY GRADUATE FROM COLLEGE, ENTER THE HIGH-SKILLS JOB MARKET AND BECOME PRODUCTIVE, TAX-PAYING MEMBERS OF SOCIETY. OUR GOAL IS TO ENSURE THAT OUR KIDS GROW UP TO BECOME WELL-ROUNDED, SUCCESSFUL, HEALTHY, CIVIC-MINDED CITIZENS. HCZ'S UNIQUE APPROACH IS TO PROVIDE SUPPORTS FOR EACH STAGE OF A CHILD'S DEVELOPMENT AND ADDRESS ANY BARRIER TO HIS OR HER ACADEMIC SUCCESS. OUR EARLY-CHILDHOOD PROGRAMS HELP BUILD A STRONG FOUNDATION FOR LATER LEARNING. OUR ELEMENTARY-SCHOOL PROGRAMS SUPPORT STUDENTS IN THE LOCAL TRADITIONAL PUBLIC SCHOOLS BY PROVIDING ASSISTANT TEACHERS DURING THE DAY WHO ALSO RUN ENRICHING PROGRAMS AFTER SCHOOL. OUR TWO K-12 CHARTER SCHOOLS ARE STAFFED WITH DEDICATED, QUALITY TE false false 41976459 9204071 0 HARLEM CHILDREN'S ZONE OFFERS A COMPREHENSIVE NETWORK OF EDUCATION, SOCIAL-SERVICE AND COMMUNITY-BUILDING PROGRAMS ACROSS A 97-BLOCK AREA OF CENTRAL HARLEM. HARLEM CHILDREN'S ZONE SUPPORTS CHILDREN FROM BIRTH THROUGH COLLEGE AS WELL AS WORKING WITH THE ADULTS AROUND THEM. THE ORGANIZATION SERVES APPROXIMATELY 12,500 CHILDREN - MOST OF WHOM GO TO TRADITIONAL PUBLIC SCHOOLS - AND APPROXIMATELY 12,500 ADULTS. THE ORGANIZATION HAS BEEN SUCCESSFUL IN TEACHING NEW PARENTS HOW TO ENGAGE WITH THEIR CHILDREN TO OPTIMIZE BRAIN DEVELOPMENT, WHICH SETS THE STAGE FOR LATER ACADEMIC SUCCESS. THE BABY COLLEGE PARENTING WORKSHOPS HAVE GRADUATED MORE THAN 5,700 PARENTS AND CAREGIVERS SINCE IT BEGAN IN 2000. IN THE HARLEM GEMS PRE-KINDERGARTEN PROGRAMS, THREE- AND FOUR-YEAR-OLDS ATTEND AN ALL-DAY, YEAR-ROUND PROGRAM THAT TEACHES IN ENGLISH, SPANISH AND FRENCH. IN 2016, 100% OF THE CHILDREN WHO COMPLETED THE HARLEM GEMS PRE-SCHOOL PROGRAM HAVE BEEN ASSESSED AS "SCHOOL READY," AS DETERMINED BY THE NATIONALLY RECOGNIZED BRACKEN SCALE ASSESSMENT. WE PROVIDE SUPPORTS FOR STUDENTS IN ALL THE TRADITIONAL PUBLIC ELEMENTARY SCHOOLS WITHIN HARLEM CHILDREN'S ZONE BOTH DURING THE SCHOOL DAY AND AFTER SCHOOL. WE WORK WITH MIDDLE-SCHOOL AND HIGH-SCHOOL STUDENTS THROUGH SEVERAL AFTER-SCHOOL PROGRAMS, MAKING SURE THEY ARE READY FOR COLLEGE. THE HIGH-SCHOOL PROGRAMS OFFER PERSONALIZED TUTORING IN MATH, SCIENCE, HISTORY AND OTHER SUBJECTS; WRITING WORKSHOPS; SAT AND ACT PREP AND TOURS OF COLLEGE CAMPUSES; AND PROVIDE INSTRUCTION IN OTHER FUN, ENRICHING DISCIPLINES. WE HAVE MORE THAN 900 STUDENTS IN COLLEGE AND TO MAKE SURE THEY ARE SUCCESSFUL, OUR COLLEGE SUCCESS OFFICE OFFERS A VARIETY OF SUPPORTS: TUTORING, SCHOLARSHIPS, FINANCIAL AID COUNSELING, TIME MANAGEMENT CLASSES, AS WELL AS RESUME-WRITING AND INTERVIEW WORKSHOPS. EACH STUDENT IS ASSIGNED AN ADVISOR WHO STAYS IN REGULAR CONTACT AND VISITS THE SCHOOL TO MAKE SURE THE STUDENT IS GETTING THE SUPPORTS THEY NEED AND IS STAYING ON TRACK FOR GRADUATION. WE ALSO HELP STUDENTS WITH GETTING WORKPLACE EXPERIENCE THROUGH PAID INTERNSHIPS IN COMPANIES, HEALTH-CARE INSTITUTIONS, GOVERNMENT AGENCIES AND NON-PROFITS AS WELL AS EMPLOYING THEM TO HELP WITH PROGRAMS AT HCZ. 13225561 223005 0 HCZ HAS ESTABLISHED TWO PIONEERING AND AWARD-WINNING BEACON COMMUNITY CENTERS, WHICH TRANSFORM PUBLIC SCHOOL BUILDINGS INTO COMMUNITY CENTERS FOR CHILDREN AND ADULTS DURING EVENING, WEEKEND AND SUMMER HOURS. FOR STUDENTS, THESE CENTERS PROVIDE CRITICAL ACADEMIC SUPPLEMENTS AND PERSONALIZED TUTORING, AS WELL AS A SAFE, ENRICHING PLACE TO SPEND THEIR OUT-OF-SCHOOL HOURS. THE CENTERS PROVIDE TUTORING, TEST PREPARATION, ARTS AND SPORTS PROGRAMS. FOR ADULTS, THE CENTERS OFFER RECREATIONAL AND SPORTS PROGRAMS. OVERALL, THE CENTERS ARE A SORELY NEEDED RESOURCE IN NEIGHBORHOODS THAT ARE BEREFT OF PLACES FOR CHILDREN AND ADULTS TO GATHER, HAVE FUN, LEARN NEW SKILLS AND IMPROVE THEIR FITNESS. 12039913 128467 0 Scientific research has shown conclusively that the very first years of a childs life are of enormous importance to brain development and chances for academic success. That is why at HCZ early childhood education is the critical starting line for our children in their journey to college graduation. Our early childhood programs offer a holistic combination of early educational support and services that coach parents to understand and facilitate their childs healthy development, encourage strong parent-child bonds, promote literacy-rich interactions, and prepare children to enter kindergarten fully ready for school. The Baby College gives expectant parents and parents of children ages 0-3 a strong understanding of child development and the skills to raise happy, healthy babies through workshops and home visits. The Baby College GRADS program deepens parents understanding of child development and their relationships with their children, also through workshops and home visits. HCZ created the Three-Year-Old Journey program to continue the parenting-skills development through parent workshops and group activities for children. The final step in our early-childhood pipeline, Harlem Gems offers a high-quality, year-round, full-day pre-kindergarten program that ensures that every student enters kindergarten school-ready. 11633668 991207 College Programs 7160710 20361 Preventive Services 18794378 1011568 86036311 true true false false false false false false false true true true false false true true false true false false true false false true true false false true true true false false false false false true false true true false false false true true false false false true 50 0 true 3420 true false false false false false true true false false false false X 18 16 false false false false false false false true true false false true true true true true true true true false NY X X ALPHA CONTEH CONTROLLER 2123603255 35 EAST 125TH STREET NEW YORK NY 10035 X Geoffrey Canada President 40.0 2.0 X X 1180338 0 29529 Anne Williams-Isom Chief Executive Officer 40.0 2.0 X X 365191 0 127166 Stanley F Druckenmiller Chairman 1.0 2.0 X X 0 0 0 Mitch Kurz Treasurer 1.0 2.0 X X 0 0 0 Matthew C Blank Secretary 1.0 0.0 X X 0 0 0 Wallis Anenberg board member 1.0 0.0 X 0 0 0 Keith Meister board member 1.0 0.0 X 0 0 0 Joseph DiMenna board member 1.0 0.0 X 0 0 0 mark Kingdon board member 1.0 0.0 X 0 0 0 Kenneth G Langone board member 1.0 2.0 X 0 0 0 Laura samberg board member 1.0 0.0 X 0 0 0 Caroline Turner board member 1.0 0.0 X 0 0 0 Richard Witten Board Member 1.0 0.0 X 0 0 0 Brian Higgins Board Member 1.0 0.0 X 0 0 0 Nikesh Arora Board Member 1.0 0.0 X 0 0 0 Jeffrey Talpins Board Member 1.0 0.0 X 0 0 0 Zachary J Schreiber board member 1.0 0.0 X 0 0 0 Joshua Silverman board member (thru 10/2015) 1.0 0.0 X 0 0 0 Eric Mandelblatt board member 1.0 0.0 X 0 0 0 Mindy Miller VP of development 40.0 0.0 X 1066202 0 24868 George Khaldun through 1215 Chief Administrative Officer 40.0 0.0 X 827272 0 29529 Kwame Owusu-Kesse chief operating officer 40.0 0.0 X 205106 0 69334 James d Hutter Chief financial officer 40.0 0.0 X 322346 0 67237 Betina Jean Louis director of evaluation 40.0 0.0 X 237671 0 51132 Conrad Pinnock Senior Advisor 40.0 0.0 X 276971 0 67071 Martin Lipp Communications Director 40.0 0.0 X 242800 0 58283 Tracey Costello chief procurement officer 40.0 0.0 X 291671 0 67029 Gerald Lewis Director, practitioners inst 40.0 0.0 X 447408 0 14666 5462976 0 605844 37 false true false Mathematica Policy Research Inc 600 Alexander Park PRINCETON NJ 08540 EVALUATIONS 771917 Forces of Nature Inc 230 malcolm X blvd NEW YORK NY 10027 Dance instruction 273429 AchieveMission 6052 S Moline Way ENGLEWOOD CO 80111 leadership training 220811 HARLEM JUNIOR TENNIS AND EDUCATION 40 WEST 143RD STREET NEW YORK NY 10037 TENNIS INSTRUCTION 214003 grant thornton llp 757 third avenue 3rd floor NEW YORK NY 10017 accounting services 185960 8 8746030 11450098 65214763 566131 85410891 0 30694 30694 0 0 1721177 1721177 0 1721177 1721177 23709257 23709079 178 178 178 122570 8746030 386138 -263568 -263568 0 0 RECOVERY OF PRIOR YEAR INV. WRITEOFF 900099 1832455 1832455 MISCELLANEOUS 900099 79586 79586 1912041 88811413 3400522 6982812 6982812 3584299 3584299 0 0 4564018 4168372 272296 123350 0 43391927 39652917 2573304 1165706 1042100 934926 71492 35682 7721756 6979858 445194 296704 4747644 4422540 222918 102186 0 181125 181125 185960 185960 0 70000 70000 3246630 3246630 3045169 2982314 33645 29210 0 649990 609099 39970 921 1581361 1209429 339647 32285 0 7787902 6795590 992312 1273023 1226637 44057 2329 0 0 0 0 2784162 1793564 990598 388263 388263 FOOD 1185966 1156617 28376 973 EQUIPMENT RENTAL & MAINT. 733577 654586 74391 4600 EDUCATION SUPPLIES 722608 709342 13186 80 ADMISSIONS 682389 673790 8499 100 2172838 1499619 702971 -29752 98725519 86036311 10854834 1834374 27646446 20159415 10543374 330120 19774016 11314218 835443 1450 0 0 0 0 0 0 0 0 974625 811316 158885743 29682651 131660164 129203092 0 0 403513124 414673245 0 0 0 0 726412 724611 595673604 577217467 8562654 7292566 71447183 69615204 0 0 0 0 0 0 0 0 0 0 0 0 18662258 23482982 98672095 100390752 X 473393929 455453783 19968618 16732970 3638962 4639962 497001509 476826715 595673604 577217467 X -9914106 -14255371 3994683 X false true X true true true X 131949331 57839897 73600877 193520296 85147323 542057724 0 0 131949331 57839897 73600877 193520296 85147323 542057724 91528063 450529661 52748 45825 46126 1700863 1751871 3597433 0 0 0 0 0 803681 3420078 1029179 2014195 2298179 9565312 555220469 0 0.81144 0.76145 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 387460570 34162285 -17478276 113168 404031411 287313069 41874250 58330749 57498 387460570 228837561 14209739 44307121 41352 287313069 165002239 26958775 36901547 25000 228837561 140613742 15828299 8560198 165002239 0.98580 0.01150 0.00270 true false 6800000 6800000 135684469 17940658 117743811 8762980 6722418 2040562 4257102 3587759 669343 3381192 1431816 1949376 129203092 ALTERNATIVE INVESTMENTS 351841786 F LIMITED PARTNERSHIP INV 62831459 F 414673245 0 DEFERRED COMPENSATION PAYABLE 5648344 DUE TO RELATED PARTY 10334638 REFUNDABLE ADVANCE 7500000 23482982 X 77559873 -14255371 2255778 3994683 -8004910 85564783 3246630 3246630 88811413 97734667 2255778 2255778 95478889 3246630 3246630 98725519 Schedule D, part V: endowments Harlem Children's Zone's endowment is intended to support the organization's social, cultural and educational programs (as described in Part III of the Form 990) and to fund the executive profit-sharing plan. HCZ has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding while seeking to maintain the earnings power of the endowment assets. Schedule d, part x: Fin 48 The Organization recognizes the tax effects from an uncertain tax position in the financial statements only if the position is "more-likely-than-not" to be sustained if the position were to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. Management has determined that there are no uncertain tax positions within its consolidated financial statements. The Organization is exempt from federal income taxation by virtue of being an organization described in Section 501(c)(3) of the Internal Revenue Code. Nevertheless, the Organization may be subject to tax on income unrelated to its exempt purpose, unless that income is otherwise excluded by the Internal Revenue Code. The tax years ending June 30, 2013, 2014, 2015 and 2016 are still open to audit for both federal and state purposes. Schedule D, Part XI, Line 2d: Reconciliation of Revenue Non-Vested Employee Section 457(f) forfeitures: $3,994,683 Central America and the Caribbean Investments 351841786 351841786 351841786 true false true true true false Form 990, Schedule F Harlem Children's Zone invests directly in a variety of level 3 limited partnership investments. These limited partnership investments may, in turn, own an interest in a foreign corporation, passive foreign investment company, or foreign partnership. To the extent that Harlem Children's Zone is required to complete a Form 926, 5471, 8621 or 8865 because its investment exceeds the filing threshold, those Forms have been attached to the organization's Form 990-T filing. X X X X X X X true Event Associates Inc Fundraising Gala true 0 70000 -70000 0 70000 -70000 NY Award Dinner 8868600 8746030 122570 147798 238340 0 8868600 8746030 122570 147798 238340 386138 -263568 Form 990, Schedule G, Part I - Fundraising Event Associates, Inc. assists Harlem Childrens Zone with the organization's annual gala event. The event raises significant funds to support the organization's charitable mission; these funds are raised through the combined efforts of Harlem Children Zone's development office (and other dedicated personnel) and Event Associates. Quantifying precisely how much was raised by Event Associates for Schedule G purposes is not feasible. true Harlem Children's Zone Promise Academy I 35 East 125th Street New York NY 10035 760756768 501(c)(3) 3392773 general Harlem Children's Zone Promise Academy II 35 East 125th Street New york NY 10035 342049530 501(c)(3) 3590039 general 2 Educational Stipends 2954 2152990 HCZ Hardship Assistance 1614 1167182 Scholarships 141 272040 Schedule I, part III THE NEED IN CENTRAL HARLEM: CHILDREN IN CENTRAL HARLEM TYPICALLY FACE MULTIPLE CHALLENGES TO THEIR SUCCESS: FAILING SCHOOLS, INADEQUATE HEALTH CARE, LACK OF SAFE PLACES TO SPEND OUT-OF-SCHOOL TIME, THE EVER-PRESENT THREAT OF PHYSICAL VIOLENCE. NUMEROUS STUDIES HAVE DOCUMENTED THE OBSTACLES TO SUCCESS FOR LOW-INCOME STUDENTS, PARTICULARLY THOSE OF COLOR. A BLACK BOY BORN IN 2001 HAS A ONE IN THREE CHANCE OF GOING TO PRISON IN HIS LIFETIME. ONE STUDY FOUND THAT BY THE AGE OF THREE, CHILDREN IN POOR FAMILIES WERE EXPOSED TO 30 MILLION FEWER WORDS THAN CHILDREN IN HIGH-INCOME HOMES. TO ADDRESS THE MULTIPLICITY OF CHALLENGES OUR KIDS FACE, HARLEM CHILDREN'S ZONE HAS CREATED A FREE, HOLISTIC, BIRTH-THROUGH-COLLEGE PIPELINE OF SUPPORTS AND SERVICES TO ENSURE THAT CHILDREN REACH THEIR POTENTIAL AT EACH STAGE OF THEIR DEVELOPMENT. IN ADDITION TO WORKING FOR YEARS WITH BOYS AND GIRLS, WE WORK TO STRENGTHEN THE FAMILIES AND COMMUNITY AROUND OUR CHILDREN. WE DO WHATEVER IT TAKES TO ADDRESS ALL THE BARRIERS TO OUR CHILDREN'S SUCCESS. IN ADDITION TO OUR PRIMARY FOCUS ON ACADEMICS, WE CONSIDER THE WHOLE CHILD: OFFERING CHILDREN EXPOSURE TO THE ARTS AND CULTURE, COMMUNITY SERVICE, REGULAR PHYSICAL EXERCISE, AND NUTRITION WORKSHOPS TO HELP DEVELOP LIFE-LONG HEALTHY HABITS. WE ALSO HELP THEM DEVELOP THEIR NON-COGNITIVE SKILLS, SUCH AS PERSISTENCE AND RESILIENCE, AS WELL AS ADDRESSING ANY SOCIAL AND EMOTIONAL NEEDS. TO HELP ENSURE OUR HIGH-SCHOOL STUDENTS REMAIN ENGAGED IN OUR PROGRAMS, WE OFFER THEM THE OPPORTUNITY TO EARN STIPENDS. THE STIPENDS RELIEVE SOME OF THE FINANCIAL STRESS ON CHILDREN AND THEIR FAMILIES, SO CHILDREN DO NOT NEED TO CHOOSE BETWEEN ENRICHING ACTIVITIES AND TAKING ON A PART-TIME JOB. THE STIPENDS ARE DESIGNED TO BE A PRE-EMPLOYMENT MODEL SO THAT STUDENTS BEGIN TO LEARN THE WORKPLACE STANDARD OF GETTING REWARDS FOR HARD WORK. THE STIPEND AMOUNTS ARE BASED ON PARTICIPATION AND DISTRIBUTED TWICE A MONTH. THE SECOND PROGRAM ON SCHEDULE I IS A HARDSHIP ASSISTANCE/INCENTIVE PROGRAM THAT OFFERS DIFFERENT TYPES OF AID DEPENDING ON THE NEEDS OF THE INDIVIDUAL. The children and families we serve are some of the most disenfranchised, and have few resources of their own. For that reason, HCZ sets aside funds for Special Client Services to deal with families short-term crises, as well as for incentives to encourage participants to stay focused on their academic success and well-being. IN ADDITION, THE PROGRAM IS DESIGNED TO REWARD AND HELP GRADUATING HIGH-SCHOOL SENIORS AS THEY MOVE ON TO COLLEGE. WE OFFER EACH SENIOR THE CHOICE OF A $1,000 SCHOLARSHIP OR A LAPTOP COMPUTER, WHICH IS A NECESSITY FOR TODAY'S COLLEGE STUDENT. THE INCENTIVE PAYMENTS ARE ONLY MADE IN THE FORM OF A LAPTOP OR A DIRECT SCHOLARSHIP PAYMENT MADE DIRECTLY TO THEIR COLLEGE ON THEIR BEHALF. HCZ ALSO OFFERS SCHOLARSHIPS THROUGH DONATED FUNDS TO REDUCE POTENTIAL DEBT FOR OUR COLLEGE STUDENTS. THESE FUNDS ARE CRITICALLY IMPORTANT FOR OUR STUDENTS, MANY OF WHOM HAVE FEW - IF ANY - FUNDS OF THEIR OWN TO PAY FOR THEIR COLLEGE EXPENSES. X X X false true false false false false false true false Geoffrey Canada President 122670 1057668 0 7292 22237 1209867 982668 Mindy Miller VP of development 293788 772414 7292 17576 1091070 647414 George Khaldun through 1215 Chief Administrative Officer 217718 609554 7292 22237 856801 534554 Anne Williams-Isom Chief Executive Officer 290191 75000 119792 7374 492357 0 Betina Jean Louis director of evaluation 145425 92246 43758 7374 288803 62245 Conrad Pinnock Senior Advisor 169286 107685 59697 7374 344042 72685 Martin Lipp Communications Director 140836 101964 43986 14297 301083 76964 Kwame Owusu-Kesse chief operating officer 170106 35000 57589 11745 274440 0 James d Hutter Chief financial officer 292346 0 30000 0 0 0 45000 0 22237 0 389583 0 0 0 Tracey Costello chief procurement officer 169509 122162 44792 22237 358700 97161 Gerald Lewis Director, practitioners inst 133647 313761 7292 7374 462074 251261 Form 990, Schedule J, Line 4(b) HARLEM CHILDRENS ZONE HAS A SECTION 457(F) PLAN FOR CERTAIN ELIGIBLE EMPLOYEES. THIS GROWTH FUND PLAN ("The Plan") IS A TAX-DEFERRED EMPLOYEE SAVINGS PLAN that aims to serve as a retention tool FOR DIRECTORS, OFFICERS, PRINCIPALS AND SENIOR STAFF. HARLEM CHILDRENS ZONE MAKES AN ANNUAL DEPOSIT INTO THE PLAN THAT IS VALUED AT 150% OF THE INDIVIDUAL EMPLOYEES BONUS FOR THE CURRENT YEAR. THE EMPLOYEES ACCOUNT ACCUMULATES ASSOCIATED EARNINGS OR LOSSES ON THE INVESTMENT OF THE CONTRIBUTED AMOUNT IN THE NO MARGIN SENIOR GROWTH FUND, WHICH IS MANAGED BY DUQUESNE FAMILY OFFICE, at no cost to Harlem Children's Zone or the employee. THE AMOUNTS CONTRIBUTED BY HARLEM CHILDRENS ZONE, ALONG WITH THE ASSOCIATED EARNINGS OR LOSSES, VEST AFTER FIVE YEARS FROM THE DATE OF THE INITIAL CONTRIBUTION AND WILL BE PAID TO ELIGIBLE EMPLOYEES WHEN VESTED. TERMINATED EMPLOYEES BECOME VESTED IMMEDIATELY AT THE DATE OF THEIR TERMINATION. EMPLOYEES WHO MEET THE AGE AND SERVICE PROVISIONS OF THE PLAN (AGE VESTING) ARE VESTED IMMEDIATELY UPON MEETING THOSE PROVISIONS. HOWEVER, IF A PARTICIPATING EMPLOYEE LEAVES VOLUNTARILY, INCLUDING RETIREMENT IF THEY HAVE NOT REACHED THE AGE VESTING PROVISIONS, THEN THEIR CUMULATIVE UNVESTED CONTRIBUTION MADE BY HCZ AND ASSOCIATED EARNINGS OR LOSSES ARE FORFEITED. For calendar year 2015, employees received a payout of deferred compensation from the Plan and those amounts have been recorded in Schedule J, Part II, column (b)(ii) and, because that payout represents compensation that was reported on previous Forms 990 as deferred compensation in Schedule J, Part II, Column (c), it is recorded in Schedule J, Part II column (f). THREE OFFICERS, GEOFFREY CANADA, MINDY MILLER AND GEORGE KHALDUN, AND ONE TOP 5 HIGHEST PAID EMPLOYEE, GERALD LEWIS, MET THE AGE AND SERVICE PROVISIONS OF THE SECTION 457(F) PLAN (AGE VESTING) IN CALENDAR YEAR 2015 THAT RESULTED IN THE ACCELERATED VESTING OF HCZS CONTRIBUTION. The portion of each individuals taxable compensation (as reported on their Form W-2) that represents a one-time accelerated age vesting of their entire 457(f) plan account is as follows: Geoffrey Canada $917,832, Mindy Miller $601,749, George Khaldun $470,755, and Gerald Lewis $288,761. THESE AGE VESTING DISTRIBUTIONS ARE INCLUDED IN the form 990, SCHEDULE J, COLUMN (B) (II) and again in Schedule J, Part II, Column (f). These age vesting distributions represent a one-time compensation item. The actual amount of compensation (inclusive of taxable wages, deferred compensation and non-taxable benefits) received by each individual in calendar year 2015 (CALCULATED BY SUBTRACTING Schedule J, Part II, COLUMN F FROM Schedule J, Part II COLUMN E) is as follows for each individual: Geoffrey Canada $227,199, Mindy Miller $443,656, George Khaldun $322,247 and Gerald Lewis $210,813. Schedule J, Line 7 Harlem Children's Zone provides annual performance bonuses to its employees. The bonuses are determined and approved by the CEO, Anne Williams-Isom. Bonuses are approved in June and paid out in July (which is the following fiscal year); however, for 990 reporting purposes, the bonus is both approved and paid in the same calendar year (but different fiscal years); accordingly, the bonuses are reported as current compensation in column (b)(ii). Zachary Schreiber Board of Trustees 1797039 See Part V false zachary schreiber board of trustees 87788992 see Part V false Stanley Druckenmiller chairman of the board 62638156 see part V false Eric Mandelblatt Board of Trustees 83493491 See Part V false Eric Mandelblatt Board of Trustees 1551447 See Part V false Schedule L, Part IV Zachary Schreiber, Board of Trustees Member, co-manages a limited partnership investment fund in which Harlem Children's Zone invests. The value of the organization's investment in this limited partnership investment as of July 30, 2016 is approximately $88 million. Neither Mr. Schreiber nor the Fund charge Harlem Children's Zone any management, advisory or supervisory fees for managing the organization's portfolio. Nevertheless, the value of these contributed services is $1,797,039. Stanley Druckenmiller, Chairman of the Board, runs an alternative investment fund in which Harlem Children Zone invests. The value of the organization's investment in this fund as of June 30, 2016 is $62.6 million. Neither Mr. Druckenmiller nor the Fund charge Harlem Children's Zone any management, advisory or supervisory fees for managing the organization's portfolio. Eric Mandelblatt, Board of Trustees Member, runs an alternative investment fund in which Harlem Children's Zone invests. The value of the organization's investment in this fund as of June 30, 2016 is $83.5 million. Harlem Children's Zone paid management and performance fees totaling $1.6 million. X 6 566131 FMV false true true Schedule M, Line 32a To the extent that Harlem Children's Zone receives donations of securities, hcz's broker disposes of those securities; all proceeds therefrom are used to support the organization's charitable mission. Form 990, Part III, Line 4d OTHER PROGRAM SERVICE ACCOMPLISHMENTS College Programs INCLUDED WITHIN THE PROGRAM SERVICE EXPENDITURES REPORTED IN PART III, LINES 4A THROUGH 4D ARE AMOUNTS PAID OUT AS STIPENDS/GRANTS. HCZ PROVIDES STIPENDS TO HIGH-SCHOOL STUDENTS. THE STIPEND SYSTEM IS A PRE-EMPLOYMENT MODEL, INTRODUCING STUDENTS TO THE TYPICAL WORKPLACE SYSTEM WHERE EMPLOYEES RECEIVE A FINANCIAL REWARD FOR CONSISTENT, HARD WORK. THERE ARE CERTAIN REQUIREMENTS THAT STUDENTS NEED TO SATISFY TO EARN A STIPEND. THE SMALL STIPEND IS ALSO AN INCENTIVE FOR THE CHILDREN TO STAY ENROLLED IN THE PROGRAM EVEN IF THEY ARE BEING TEMPTED BY LESS-ENRICHING PART-TIME WORK IN THE COMMUNITY OR EVEN RISKY ALTERNATIVES FOR THEIR OUT-OF-SCHOOL TIME. WE STRONGLY FEEL THAT THE STIPENDS ARE A VALUABLE INVESTMENT TO KEEP CHILDREN IN THE SAFE, ENGAGING ENVIRONMENT WE HAVE CREATED, WHERE THEY CAN GET ACADEMIC ASSISTANCE AND LEARN VALUABLE LIFE SKILLS. HCZ ALSO GIVES INCOMING COLLEGE FRESHMEN THE CHOICE OF A LAPTOP COMPUTER OR A $1,000 SCHOLARSHIP TO ENSURE THAT STUDENTS START COLLEGE IN A STRONG POSITION FOR SUCCESS. IN TODAY'S COLLEGIATE ENVIRONMENT, ACCESS TO A LAPTOP IS AS IMPORTANT AS HAVING A PEN OR PENCIL ONCE WAS, SO WE WANT TO ENSURE EACH OF OUR STUDENTS HAS ONE FOR WRITING AND RESEARCH. IF THEY ALREADY HAVE A LAPTOP COMPUTER, THE $1,000 SCHOLARSHIP - WHICH WE SEND DIRECTLY TO THE COLLEGE - IS ALSO A HUGE HELP FOR STUDENTS WHO WILL STRUGGLE TO MAKE ENDS MEET WHILE THEY ARE WORKING TOWARD THEIR DEGREE. Preventive Services HCZ'S FOSTER-CARE PREVENTIVE PROGRAMS WORK TO STRENGTHEN FAMILIES IN CRISIS SO THAT THE FAMILIES CAN STAY WHOLE AND NOT HAVE CHILDREN PLACED INTO FOSTER CARE. Form 990, Part IV line 4 - LOBBYING DISCLOSURE Harlem Children's Zone does not undertake any lobbying activities. HCZ President Geoffrey Canada is a very prominent individual in the community and he may undertake advocacy efforts that have ancillary benefits to Harlem Children's Zone. Mr. Canada's advocacy efforts, to the extent there are any, are undertaken at his own behest and are funded from his own personal finances; Harlem Children's Zone does not subsidize those efforts. FORM 990, PART VI: Policies Line 11 - PROCESS USED TO REVIEW FORM 990 The Form 990 was prepared by a nationally renowned accounting firm in conjunction with the organization's finance department. A copy of the draft Form 990 was circulated to the Audit committee for discussion and comment. Each Audit committee Member was provided ample opportunity to comment on the information contained in the 990 prior to its filing with the Internal Revenue Service. The Audit committee will summarize its finding on the Form 990 to the full board of directors. Line 12 - ENFORCEMENT AND MONITORING OF CONFLICT OF INTEREST POLICY All employees are expected to use honesty, good judgement and high ethical standards in all professional dealings. All employees must avoid any actions that could create a conflict of interest or the appearance of such a conflict or reflect unfavorably on them or on Harlem Children's Zone. An employee must disclose if she/he or an immediate family member has any potential conflict of interest such as a relationship to a third party vendor who seeks or has a business relationship with Harlem Children's Zone. An employee's violation of this policy, especially a failure to represent accurately his or her connection or action on behalf of Harlem Children's Zone and a third party will constitute grounds for disciplinary action, up to and including termination of employment. Line 15 - PROCESS FOR DETERMINING COMPENSATION The organization undertakes a thorough process to ensure that the executive compensation it pays to its top management official and all of its officers and key employees is reasonable given the market in which the organization operates. The Board periodically contracts with a compensation consultant to complete a market assessment and competitive position analysis for the organization's top executives. The Board utilizes comparability and benchmarking surveys to ensure that the organization compensates its executives commensurate with the market. Form 990, Part VI: disclosures Line 19 - AVAILABILITY OF DOCUMENTS TO THE PUBLIC The organization makes its Form 990 available to the public by retaining a copy at its place of business. The Form 990 is likewise published on the internet at www.guidestar.org. The organization posts its audited financial statements and Form 990 on its website, but its governing documents and conflict of interest policy are available upon request and provided at management's discretion. Part VII - Compensation of Officers, Directors, Trustees, Key Employees For further information about the executive compensation of the individual's reported on Part VII, refer to the narratives on Form 990, Schedule J, Part III. Form 990, Part IX, line 9 Other changes to net assets Non-Vested Employee Section 457(f) forfeitures: $3,994,683 Rheedlen 125th Street LLC 35 EAST 125TH STREET New York NY 10035 Hold property NY 0 0 Harlem Child HCZ Promise LLC 35 east 125th Street New York NY 10035 272392634 Lease Holder NY 0 0 Harlem Child HCZ PROMISE ACADEMY CHARTER SCHOOL 245 W 129th Street NEW YORK NY 10027 760756768 EDUCATION NY 501(c)(3) 2 NA false HCZ PROMISE ACADEMY CHARTER SCHOOL II 35 EAST 125TH STREET NEW YORK NY 10035 342049530 EDUCATION NY 501(c)(3) 2 NA false true true false false false false false false false true false true false true true true true true true Schedule R, Related Party Transactions Pursuant to the terms of commitment letters between HCZ and the Promise Academy Charter Schools, ("PACs"), HCZ, as the PACS Institutional Partner, committed to provide the PACS certain services at no cost. PACS are two high-quality charter schools affiliated with the Organization. These services include financial management, social, technology, fundraising, public relations, and teaching assistance services. Both Charter Schools have renewed their commitment letters with Harlem Children's Zone for a five-year period that runs through June 2019. HCZs contributed space and services provided to the PACS for the year ended June 30, 2016 amounted to $2,555,751. HARLEM CHILDRENS ZONE INCLUDES WITHIN ITS SECTION 457(F) PLAN, CERTAIN EMPLOYEES OF BOTH CHARTER SCHOOLS AND, for the year ended June 30, 2016, PROVIDED THE CHARTER SCHOOLS A SUBSIDY OF $1,680,162 TO COVER THIS COST.