2013-05-09T09:16:07-05:00 2012-06-30 GRANT THORNTON LLP 666 THIRD AVENUE NEW YORK NY 100174057 990 2011-07-01 237112974 THE HARLEM CHILDREN'S ZONE % TRACEY COSTELLO HARL 2123603255 35 East 125th Street New York NY 10035 mark moyer 2013-03-26 true Scott Thompsett 2125990100 2011 2016-03-07 17:11:31Z GEOFFREY CANADA 35 EAST 125TH STREET NEW YORK NY 10035 153957625 false X WWW.HCZ.ORG X 1970 NY HARLEM CHILDREN'S ZONE, INC. IS A PIONEERING, NON-PROFIT COMMUNITY- BASED ORGANIZATION THAT WORKS TO ENHANCE THE QUALITY OF LIFE FOR CHILDREN AND FAMILIES IN NYC'S MOST DEVASTATED NEIGHBORHOODS. 16 15 3494 0 0 208098844 131943313 0 0 5614163 8695293 -85388 533228 213627619 141171834 3764787 4881458 0 0 57408889 64746730 4955 0 1352483 17267913 19693473 78446544 89321661 135181075 51850173 361267321 455601735 44513307 86997548 316754014 368604187 X HCZ's mission is to break the cycle of generational poverty through education for the children and families in Harlem. We work with children from birth through college, using an interlocking network of programs, so that the 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 throughout a child's development and mitigate 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 adding assistant teachers during the day and offering extensive after-school programs for them. In addition our two K-12 charter schools are staffed with quality teachers and specialists to ensure our students never fall b false false 65001852 4008311 0 The Harlem Children's Zone Project offers a comprehensive network of education, social-service and community-building programs across a 97-block area of Central Harlem. The Children's Zone project supports children from birth through college as well as working with the adults around them. The organization has been successful in teaching new parents how to engage with their young children to optimize brain development. The Baby College parenting workshops have graduated more than 4,000 parents and caregivers since its inception a dozen years ago. 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. More than 99% of the children have completed the Harlem Gems program "school ready" for kindergarten, as determined by the nationally recognized Bracken Scale assessment - a remarkable accomplishment since 40 percent or more start the school year delayed or very delayed. We provide supports for students in all the traditional public elementary schools within the 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, offering tutoring, writing workshops, SAT prep and tours of college campuses, in addition to providing access to other fun, enriching disciplines. In 2012, more than 95 percent of our high-school seniors were accepted to college, garnering more than $20 million in scholarships. To make sure our students are successful in college, we offer a variety of supports: tutoring, scholarships, financial aid counseling, time management classes and help with getting workplace experiences through paid internships in companies, health-care institutions, government agencies and non-profits throughout the city as well as employing them to help with programs at HCZ. 9526713 813369 0 HCZ's two pioneering and award-winning Beacon Community Centers turn public school buildings into community centers for children and adults during evening, weekend and summer hours. For students, these centers provide critical academic assistance 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 GED classes as well as 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. 5241733 53356 0 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. There are five Preventive programs, which serve more than 600 families that have been referred to us by the city, as well as working with families that walk in to our storefront offices or who have children in our other programs. For more information about the various preventive programs run by the Harlem Children's Zone, please refer to the organization's website at: http://www.hcz.org/index.php/family-community-and-health/hcz-foster -care-prevention 1901895 6422 0 Head start program 1901895 6422 0 81672193 true true false false false false false false true true true true false false true true false true false false true false false true true false false false true true false false false false false true false true true false false false true true false false false false true 28 0 true 3494 true false false false false false true true false false false false X 16 15 false false false false false false false true true false false true true true true true true true true false NY X X TRACEY COSTELLO 2123603255 35 EAST 125TH STREET NEW YORK NY 10035 Geoffrey Canada 40.0 X X 305175 0 31280 Stanley F Druckenmiller 1.0 X X Mitch Kurz 1.0 X X Matthew C Blank 1.0 X X Wallis Anenberg 1.0 X Gary Cohn 1.0 X Zoe Cruz 1.0 X Joseph DiMenna 1.0 X mark Kingdon 1.0 X Kenneth G Langone 1.0 X Sue Lehmann 1.0 X Laura samberg 1.0 X Stephen Squeri 1.0 X Caroline Turner 1.0 X Richard Witten 1.0 X 0 0 0 Brian Higgins 1.0 X 0 0 Mindy Miller 40.0 X 276980 0 105373 George Khaldun 40.0 X 258417 0 91948 Anne Williams-Isom 40.0 X 208635 0 76671 Tracey Costello 40.0 X 234440 0 64625 Jim McGibbon from 012012 40.0 X 0 0 Betina Jean Louis 40.0 X 185012 0 46480 Katherine Shoemaker 40.0 X 149773 0 59697 Conrad Pinnock 40.0 X 162817 0 60052 Gerald Lewis 40.0 X 149807 0 38844 Martin Lipp 40.0 X 184431 0 70681 2115487 0 645651 28 false true false MATHEMATICA POLICY RESEARCH INC PO BOX 2393 PRINCETON NJ 08543 EVALUATIONS 608608 forces of nature 230 malcolm X blvd NEW YORK NY 10027 Dance instruction 332181 THE BRIDGESPAN GROUP 535 BOYLSTON STREET 10TH FLOOR BOSTON MA 02116 consulting 276708 HARLEM JUNIOR TENNIS AND EDUCATION 40 WEST 143RD STREET NEW YORK NY 10032 TENNIS INSTRUCTION 214003 Grant Thornton LLP 33570 Treasury Center CHICAGO IL 60694 Accounting Services 420662 7 5255006 9189345 117498962 7729056 131943313 0 52748 52748 0 0 21157973 12515428 8642545 8642545 8642545 131018 5255006 270363 -139345 -139345 0 0 RECOVERY OF PRIOR-YEAR INVESTMENT WRITEOFF 900099 672573 672573 672573 141171834 9228521 X 0 4881458 4881458 0 0 1447702 1377103 43084 27515 0 49985640 47603114 1453964 928562 826993 668714 129668 28611 7045908 6704620 222838 118450 5440487 5210611 159478 70398 0 34599 34599 374642 374642 0 0 0 2929393 1707339 1209628 12426 0 630899 552102 75570 3227 345527 132779 197363 15385 0 5570559 4464214 1106345 1252695 1171506 45370 35819 0 0 0 0 1520322 1322680 167236 30406 233038 202743 25634 4661 FOOD 2546759 2511603 34925 231 EQUIPMENT RENTAL & MAINT. 826914 626650 197945 2319 ADMISSIONS 569801 567210 2591 EDUCATION SUPPLIES 565078 539722 24195 1161 2293247 1428025 791910 73312 89321661 81672193 6296985 1352483 2002953 18196786 16895379 4341346 131478625 135848008 5196 14710698 0 0 0 0 0 0 0 0 744056 1069411 119942657 11984337 59631822 107958320 0 0 149987927 172894542 0 0 0 0 521363 582624 361267321 455601735 7713128 8563125 0 0 0 0 0 0 25760854 66528562 0 0 0 0 0 0 11039325 11905861 44513307 86997548 X 195047860 230147233 121706154 136835792 0 1621162 316754014 368604187 361267321 455601735 51850173 X false true true X true true X 61473685 75427826 68937438 208098844 131949331 545887124 61473685 75427826 68937438 208098844 131949331 545887124 168965044 376922080 467909 179705 94642 203243 52748 998247 0 0 0 0 0 0 150280 135553 367573 252072 797573 1703051 548588422 1149862 0.68708 0.68958 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true 140613742 15828299 8560198 165002239 131922081 1805293 6886368 0 140613742 124566150 11471516 87669 4203254 131922081 101517597 19310236 7254672 3516355 124566150 0.99018 0.00983 false false 55738594 7278949 48459645 7881557 1576669 6304888 3457547 3128719 328795 52864992 52864992 107958320 LIMITED PARTNERSHIP INV. 172894542 F 172894542 0 DEFERRED COMPENSATION PAYABLE 5158617 DUE TO RELATED PARTY 6747244 11905861 141171834 89321661 51850173 51850173 142559666 1387832 1387832 141171834 141171834 90709493 1387832 1387832 89321661 89321661 Schedule D, part V The 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 executive profit-sharing plans. HCZ has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding while seeking to maintain the purchasing power of the endowment assets. Fin 48 The Organization follows guidance that clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a tax return, including issues relating to financial statement recognition and measurement. This guidance provides that the tax effects from an uncertain tax position can be recognized 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 determined that there are no uncertain tax positions within its 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 Code. The tax years ending June 30, 2010, 2011 and 2012 are still open to audit for both federal and state purposes. Form 990, Schedule D, Part IV During the year ended June 30, 2011, the Harlem Children's Zone entered into agreements for the construction of a new charter school (the School Project). The agreements provided that the New York School Construction Authority contribute up to $60,000,000 towards the School Project, with the estimated balance of approximately $40,000,000 to be contributed by the Organization or other donors. Upon completion of construction and issuance of the certificate of occupancy, title to the School Project will be transferred to the New York City Department of Education and leased back to the Harlem Children's Zone. Harlem Children's Zone is accounting for this arrangement as an agency transaction on behalf of the School as the School will be the ultimate beneficiary of the School Project. Central America and the Caribbean 0 0 Investments 172894542 0 0 0 0 172894542 172894542 true false true false true false Form 990, Schedule F The Harlem Children's Zone invests in foreign investments that may own an interest in a foreign corporation, passive foreign investment company, or foreign partnership. Nevertheless, the Harlem Children's Zone's investment in these partnerships may not reach the thresholds required for filing the Forms 926, 5471, 8621 or 8865. X X X X X true Event Associates Inc Fundraising Gala true 5386024 65000 5321024 5386024 65000 5321024 NY award dinner 5386024 5255006 131018 140857 129506 0 5386024 5255006 131018 140857 129506 270363 -139345 true Educational Stipends 38400 3418260 HCZ Incentive Program 400 1463198 Schedule I, part III The Need in Central Harlem: The odds are stacked against our children and families. Children in poverty do not have the opportunity to develop to their full potential. Inequality disadvantages them in every aspect of their lives: they are less healthy, less educated, and more likely to enter into prison than more affluent children. The cumulative impact of a community in crisis can have resounding affects on a child, putting them at a severe disadvantage on their pathways to productive adult lives. Poor children, particularly those of color, do significantly worse academically than their middle class counterparts. The Economic Policy Institute reported a substantial difference by race and ethnicity in children's academic test scores, with the disparity already showing up in kindergarten. Students who do poorly in school often end up drifting into anti-social behavior. A Black boy born in 2001 has a 1 in 3 chance of going to prison in his lifetime, and a Latino boy has a 1 in 6 chance. In Central Harlem, our youth must overcome significant barriers along their pathway to adulthood. At the Harlem Children's Zone, we have set up a seamless system of support from the time a child is born to the time that child finishes college, implementing best practices at every stage. This seamless system of support includes a pipeline of program services providing academic tutoring, health and nutrition lessons, fitness programs, such as karate and dance, and media and technology programs to help students increase their knowledge and computer proficiency to perform well in school. To ensure consistent participation, we offer modest educational stipends to encourage regular and consistent attendance to ensure students, ages 10 to 18, receive the maximum impact of our programs. HCZ acknowledges that our students must give up part-time jobs to participate in our programs. The stipends help to off-set some of the financial loss our students might experience by foregoing part-time jobs and prevent them from having to make a choice between work and supplemental academic activities. Educational stipends are determined based on program attendance and punctuality, student grades, and student conduct. Education stipends are distributed twice monthly by the fiscal office. The average stipends are $25 to $175. The second program disclosed on Schedule I is a program to reward the organization's graduating High School Seniors. Harlem Children's Zone offers a $1,000 incentive scholarship. These Seniors have actively participated in HCZ College Prep programs and are currently enrolled in a College. The incentives payments are only made in the form of a laptop or a direct scholarship payment made directly to their college on their behalf. As noted, some of the gifts are non-cash payments (in the form of laptops); however, for Schedule I purposes, bifurcating cash vs. non-cash payments is administratively difficult. HCZ provides stipends to middle and high-school students who earn them. 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-rigorous or risky alternatives for their out-of-school time. We strongly feel that the stipends are a valuable investment to keep children in the safe, enriching 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 is also a huge help for students who will struggle to make ends meet while they are working toward their degree. X X X false true false false false false false true false Geoffrey Canada 168750 0 136425 0 0 10125 0 21155 0 336455 0 136425 Mindy Miller 226980 0 50000 0 0 0 88619 0 16754 0 382353 0 George Khaldun 152879 0 105538 0 0 0 70793 0 21155 0 350365 0 60538 Anne Williams-Isom 183635 0 25000 0 0 0 70118 0 6553 0 285306 0 0 Tracey Costello 133786 0 100654 0 0 0 45827 0 18798 0 299065 0 65654 Betina Jean Louis 115263 0 69749 0 0 0 40012 0 6468 0 231492 0 47749 Katherine Shoemaker 79466 0 70307 0 0 0 39860 0 19837 0 209470 0 50307 Conrad Pinnock 132817 0 30000 0 0 0 53044 0 7008 0 222869 0 0 Gerald Lewis 97406 0 52401 0 0 0 38844 0 0 0 188651 0 32401 Martin Lipp 111798 0 72633 0 0 0 50844 0 19837 0 255112 0 42633 Schedule J, LIne 4(b) Harlem Children's Zone has a Section 457(f) plan that all members of senior management participate in. This Growth Fund Plan is a tax-deferred employee savings plan for directors, principals and senior staff. Harlem Children's Zone makes an annual deposit into the plan that is valued at 150% of the individual employee's bonus for the current year. The employee accumulates income on the investments in the No Margin Senior Growth Fund (which is managed by Duquesne Management); after five years, the employee starts to receive payouts. For calendar year 2011, employees received a payout from the Growth Fund and those amounts have been recorded in Schedule J, column (b)(ii) and in column (f). Schedule J, Line 7 Harlem Children's Zone provides annual performance bonuses to its employees. The bonuses are determined and approved by the President and CEO, Geoffrey Canada. 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). Stanley Druckenmiller Chairman of the board 1387832 See schedule O false Schedule L, Part IV Stanley Druckenmiller, Chairman of the Board, runs a hedge fund, the No-Margin Fund, in which the Harlem Children Zone invests. Neither Mr. Druckenmiller nor the Fund charge the Harlem Children's Zone any management, advisory or supervisory fees for managing the organization's portfolio. Nevertheless, the value of these contributed services is approximately $1,387,382. Additionally, in the interests of full disclosure, the Harlem Children's Zone is disclosing that several board members manage or run private foundations that do make grants to the Harlem Children's Zone. For the year ending June 30, 2012, the organization received the following grants: $500,000 - from the Annenberg Foundation (Board member - Wallis Annenberg). $1,165,000 - From Samberg Foundation (Board member - Laura Samberg) $14,000,000 - from the oak Foundation (board member - Caroline Turner) X 1 929056 Fair Market Value X 1 6800000 Appraised Value false true true Schedule M, Line 32a To the extent that the Harlem Children's Zone receives non-cash contributions of securities, it uses its investment broker to convert those securities into cash. FORM 990, PART III, LINE 4D OTHER PROGRAM SERVICE ACCOMPLISHMENTS HEAD START PROGRAM - AN EARLY CHILDHOOD EDUCATION PROGRAM THAT SERVES 57 THREE-TO-FIVE-YEAR-OLD CHILDREN, AND PREPARes THEM TO ENTER KINDERGARTEN READY TO LEARN. Finally, 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 middle and 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-rigorous or risky alternatives for their out-of-school time. We strongly feel that the stipends are a valuable investment to keep children in the safe, enriching 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 is also a huge help for students who will struggle to make ends meet while they are working toward their degree. Please see Schedule I for more information. Policies FORM 990, PART VI, QUESTION 11 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 financial 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 to 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 of organization is reasonable given the market in which the organization operates. In relevant part, the Board of Directors has established a Compensation Committee of independent persons that have no personal interest in the proposed compensation agreement. The Compensation committee contracts with a compensation consultant to complete a market assessment and competitive position analysis for the College's top executives. The compensation consultant utilizes comparability and benchmarking surveys to ensure that the College compensates its executives commensurate with the market. The compensation committee will then set the compensation for the relevant executive and document the decision in board minutes. Form 990, Part VI, LIne 19 AVAILABILITY OF DOCUMENTS TO THE PUBLIC The taxpayer 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's financial statements, governing documents and conflict of interest policy are not ordinarily made available to the public, but, if requested, will be provided at management's discretion. Form 990, Part IV, line 4 LOBBYING DISCLOSURE The Harlem Children's Zone does not undertake any lobbying activities. President and CEO, Geoffrey Canada is a very prominent individual in the community and he may undertake advocacy efforts that have ancillary benefits to the 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; the Harlem Children's Zone does not subsidize those efforts. Form 990, Part VIII, Line 7a Realized Gains on Investments The investment income reported on Form 990, Part VIII, Line 7(d) represents both realized and unrealized gains on investments. Because the organization's investment portfolio is comprised entirely of alternative investments, a definitive breakout between realized and unrealized gains was unavailable. Form 990, Part IX, Line 11(e) Professional Fundraising Fees The Harlem Children's Zone paid one professional fundraiser in the year ending June 30, 2012. This fundraiser, Event Associates, was paid $65,000 (and is disclosed on Schedule G). The fundraising fees paid are reported in Part VIII, Statement of Revenue, Line 11(b) as an offset to special event revenue, rather than on Line 11(e). PART XI, LINE 5 Reconciliation of Net Assets Unrealized gain on investments $8,642,545 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 Hold Property NY 0 0 Harlem Child HCZ PROMISE ACADEMY CHARTER SCHOOL 35 EAST 125TH STREET NEW YORK NY 10035 760756768 EDUCATION NY 501(C)(3) 2 false HCZ PROMISE ACADEMY CHARTER SCHOOL II 35 EAST 125TH STREET NEW YORK NY 10035 342049530 EDUCATION NY 501(c)(3) 2 false false true false false false false false false false false true false true true false false false false Schedule R, Related Party Transactions Pursuant to the terms of a commitment letter between Harlem Children's Zone (HCZ) and the Charter Schools, HCZ committed to provide the Schools, during the initial five year term of their charters, certain services at no costs. These services include financial management, social, library, technology, fundraising, public relations and teaching assistance services, In addition, HCZ is committed to providing the Schools with the use of space at its premises located at 35 East 125th Street, New York, New York.