2024-11-13T16:58:43-06:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 8390 EAST CRESCENT PARKWAY SUITE 300 GREENWOOD VILLAGE CO 80111 990 2023-01-01 273611908 DEFY VENTURES INC DEFY 7202317085 5 PENN PLAZA 19TH FLOOR NEW YORK NY 10001 JOHN GAROFOLO CFO 7202317085 2024-11-08 1 1 SARAH HINTZ P00492291 3037795710 2024-11-08 2023 2024-10-15 13:58:12Z ANDREW GLAZIER 5 PENN PLAZA 19TH FLOOR NEW YORK NY 10001 4058118 0 X WWW.DEFYVENTURES.ORG X 2010 NY TO SHIFT MINDSETS AND GIVE PEOPLE WITH CRIMINAL HISTORIES THEIR BEST SHOT AT A SECOND CHANCE. 12 12 64 872 0 0 3116359 3801794 68524 116219 11606 96090 26572 7399 3223061 4021502 55030 72753 0 0 2297397 2952574 0 0 292340 519479 804841 2871906 3830168 351155 191334 3255603 3316665 856605 724833 2398998 2591832 X DEFY VENTURES' MISSION IS TO SHIFT MINDSETS TO GIVE PEOPLE WITH CRIMINAL HISTORIES THEIR BEST SHOT AT A SECOND CHANCE BY PROVIDING THEM WITH PERSONAL DEVELOPMENT, CAREER READINESS, AND ENTREPRENEURSHIP TRAINING. DEFY'S VISION IS TO CUT THE RECIDIVISM RATE IN HALF BY LEVERAGING ENTREPRENEURSHIP TO INCREASE ECONOMIC OPPORTUNITY AND TRANSFORM LIVES. 0 0 2978532 72753 116219 WE'RE PROUD OF DEFY'S RESULTS AND ARE EXCITED TO SHOW SUPPORTERS THE RESULTS OF THEIR INVESTMENT OF TIME AND FUNDING. SINCE THE LAUNCH OF OUR PROGRAM IN JANUARY 2012, DEFY HAS:1.SERVED MORE THAN 7,900 ENTREPRENEURS IN TRAINING (EITS) IN OUR IN-PRISON AND POST-RELEASE PROGRAM. EITS COMPLETE A RIGOROUS SIX- TO NINE-MONTH CURRICULUM CULMINATING IN A BUSINESS PITCH COMPETITION AND GRADUATION AS PART OF THE IN-PRISON PROGRAM. THE POST-RELEASE PROGRAM INCLUDES WORKSHOPS, MENTORING, AND A BUSINESS INCUBATOR.2.ENGAGED 7,600+ EXECUTIVE VOLUNTEERS, INCLUDING VOLUNTEERS FROM HEDGE FUNDS, INVESTMENT BANKS, VENTURE CAPITAL AND PRIVATE EQUITY FIRMS, FORTUNE 500 COMPANIES, AND ENTREPRENEURIAL VENTURES. VOLUNTEERS SERVED AS BUSINESS PITCH COMPETITION JUDGES, MENTORS, AND RESUME COACHES.3.GROWN TO SERVE IN EIGHT STATES (NY, CT, NJ, CA, IL, WI, PA AND WA).4.SECURED NINE EMPLOYMENT PARTNERS TO SOURCE AND PROVIDE JOBS FOR RELEASED EITS WHO HAVE COMPLETED OUR IN-PRISON PROGRAM.5.RECORDED A ONE YEAR RECIDIVISM RATE OF LESS THAN 10%.6.RECORDED A 6-MONTH 90% EMPLOYMENT RATE FOR RELEASED EITS WHO HAVE COMPLETED OUR PROGRAM.7.LAUNCHED 200+ BUSINESSES, INCLUDING INCORPORATION AND SEED FUNDING.8.RAISED OVER $37 MILLION IN PRIVATE & PUBLIC FUNDING SINCE INCEPTION (2010). 2978532 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1 26 0 1 64 1 0 0 0 0 0 0 0 0 0 0 0 0 X 12 12 0 0 0 0 0 0 0 1 0 0 1 1 1 1 0 1 1 1 1 1 0 NY CA IL WA X JOHN GAROFOLO 7202317085 3550 WILSHIRE BLVD SUITE 1705 LOS ANGELES CA 90010 BRIAN KORB CHAIRMAN 1.00 X X 0 0 0 ARIEL JADUSZLIWER SECRETARY/TREASURER 0.50 X X 0 0 0 KERRY BENNETT DIRECTOR 0.50 X 0 0 0 JOHN DVOR DIRECTOR 0.50 X 0 0 0 MARCUS GLOVER DIRECTOR 0.50 X 0 0 0 MICHAEL HUGGINS THRU 1223 DIRECTOR 0.00 X 0 0 0 SONIA KAHLON DIRECTOR 0.50 X 0 0 0 COSS MARTE DIRECTOR 0.50 X 0 0 0 NICOLE MILLER DIRECTOR 0.50 X 0 0 0 JONATHAN NEIL DIRECTOR 0.50 X 0 0 0 COLE RICHMAN DIRECTOR 0.50 X 0 0 0 APRIL TAM SMITH DIRECTOR 0.50 X 0 0 0 DAVID SPROTT DIRECTOR 0.50 X 0 0 0 JOHN GAROFOLO CFO 50.00 X 146111 0 19553 ANDREW GLAZIER PRESIDENT & CEO 50.00 X 122802 0 8843 JULIE JACKSON-FORSBERG VP, LEARNING 50.00 X 114791 0 26668 QUAN HUYNH ED, SOUTHERN CALIFORNIA 50.00 X 118296 0 8624 CHRISTINE CASTILLO VP, PROGRAMS 50.00 X 123399 0 7017 MELISSA O'DELL ED, ILLINOIS 50.00 X 105676 0 12111 YEHUDAH PRYCE SR. PROGRAM DIRECTOR, NMHP 50.00 X 106616 0 31395 837691 0 114211 7 0 1 0 0 31018 1452979 2317797 60000 3801794 CONTRACT SERVICES 624310 116219 116219 116219 96090 96090 38007 31018 36616 1391 1391 MISC. REVENUE 900099 6008 6008 6008 4021502 116219 0 103489 72753 72753 323898 266367 35439 22092 2224067 1745169 285690 193208 4838 3979 529 330 197408 162344 21599 13465 202363 166420 22141 13802 31393 31393 38074 38074 110756 34555 72100 4101 89676 61798 14686 13192 43377 19684 14796 8897 81108 79622 1486 84599 69119 10154 5326 6487 6487 61445 61441 4 PARTICIPANT TRAINING 94100 92962 273 865 CONSTITUENT DEVELOPMENT 67144 61021 1794 4329 PROGRAM EVENTS 66181 53129 332 12720 BAD DEBTS EXPENSE 25501 23169 2319 13 5000 5000 3830168 2978532 559296 292340 470243 156275 2270511 1939231 358253 1053454 106589 120705 10786 10786 0 0 50007 47000 3255603 3316665 282558 339534 181818 90909 392229 294390 856605 724833 X 822467 1171666 1576531 1420166 2398998 2591832 3255603 3316665 191334 1500 0 X X 0 1 X 1 0 X 2329453 2592142 2735926 3116359 3801794 14575674 2329453 2592142 2735926 3116359 3801794 14575674 1024896 13550778 218 166 147 11606 96089 108226 18383 1391 19774 78536 37789 8189 6008 130522 14834196 413129 0.91350 0.92420 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER INCOME - 2019 AMOUNT: $ 78,536. 2020 AMOUNT: $ 37,789. 2022 AMOUNT: $ 8,189. 2023 AMOUNT: $ 6,008. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 10786 10786 0 0 X 4104118 59000 59000 4045118 -23616 -23616 4021502 3911284 57500 23616 81116 3830168 0 3830168 PART X, LINE 2: THE ORGANIZATION IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND HAS NOT BEEN DETERMINED TO BE A PRIVATE FOUNDATION AS DEFINED IN SECTION 509(A). THE ORGANIZATION HAS BEEN CLASSIFIED BY THE IRS AS A NONPROFIT ORGANIZATION OTHER THAN A PRIVATE FOUNDATION. HOWEVER, INCOME FROM ACTIVITIES NOT DIRECTLY RELATED TO THE ORGANIZATIONS TAX-EXEMPT PURPOSE IS SUBJECT TO TAXATION AS UNRELATED INCOME. THERE WAS NO INCOME FROM BUSINESS UNRELATED TO THE ORGANIZATIONS EXEMPT PURPOSE DURING THE YEARS ENDED DECEMBER 31, 2023 AND 2022. SINCE IT HAS NO INCOME FROM BUSINESS UNRELATED TO ITS EXEMPT PURPOSE, NO LIABILITY FOR FEDERAL INCOME TAXES HAS BEEN RECORDED. THE ORGANIZATION BELIEVES THAT IT HAS CONDUCTED ITS OPERATIONS IN ACCORDANCE WITH, AND HAS PROPERLY MAINTAINED, ITS TAX-EXEMPT STATUS, AND THAT IT HAS TAKEN NO MATERIAL UNCERTAIN TAX POSITIONS THAT QUALIFY FOR FEDERAL RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. PART XI, LINE 4B - OTHER ADJUSTMENTS: FUNDRAISING EXPENSE NOT RECORDED IN REVENUE -23,616. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EXPENSE NOT RECORDED IN REVENUE 23,616. GOLF TOURNAMENT 42584 18018 24566 11662 7456 4498 SILENT AUCTION 26441 13000 13441 13000 69025 31018 38007 13000 11662 7456 4498 36616 1391 1 EIT STIPENDS 189 8291 29812 COST CHROMEBOOKS & GIFTCARDS BUSINESS COMPETITION AWARDS 41 34650 0 N/A N/A PART I, LINE 2: EACH MONTH FINANCE MANAGEMENT REVIEWS EXPENDITURES FOR EACH GRANT HAVING PURPOSE RESTRICTIONS & COMPARES ACTUAL EXPENDITURES IN EACH BUDGET CATEGORY TO AN EXTERNAL BUDGET (WHICH WILL BE REPORTED TO THE GRANTOR) OR INTERNAL BUDGET (IF APPLICABLE), THEN APPROPRIATELY RELEASES THE PURPOSE RESTRICTIONS FOR THOSE FUNDS. X X 0 0 0 0 0 0 0 0 0 JOHN GAROFOLO CFO 146111 0 0 0 0 0 0 0 19553 0 165664 0 0 0 X 4 47000 X AUCTION ITEMS 35 13000 FMV 0 0 1 0 PART I, COLUMN (B): COLUMN B INDICATES THE NUMBER OF ITEMS DONATED. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE ANY COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT REVIEWS A DRAFT OF THE FORM 990 AND PROVIDES EDITS TO THE TAX PREPARER. AFTER THIS PROCESS IS COMPLETE, THE FORM 990 IS SENT TO THE FULL BOARD OF DIRECTORS PRIOR TO BEING FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ALL DIRECTORS, OFFICERS, OR MEMBERS OF A COMMITTEE ARE SUBJECT TO THE ORGANIZATIONS CONFLICT OF INTEREST POLICY. PRIOR TO THE INITIAL ELECTION OF ANY DIRECTOR AND ANNUALLY THEREAFTER, SUCH DIRECTOR SHALL COMPLETE, SIGN AND SUBMIT TO THE SECRETARY OF THE CORPORATION A WRITTEN STATEMENT IDENTIFYING, TO THE BEST OF THE DIRECTOR'S KNOWLEDGE, ANY ENTITY OF WHICH SUCH DIRECTOR IS AN OFFICER, DIRECTOR, TRUSTEE, MEMBER, OWNER (EITHER AS A SOLE PROPRIETOR OR A PARTNER), OR EMPLOYEE AND WITH WHICH THE CORPORATION HAS A RELATIONSHIP, AND ANY TRANSACTION IN WHICH THE CORPORATION IS A PARTICIPANT AND IN WHICH THE DIRECTOR MIGHT HAVE A CONFLICTING INTEREST. IT IS THE DUTY OF THE INTERESTED PERSON TO DISCLOSE A CONFLICT OF INTEREST AS IT ARISES, AND IT IS THE RESPONSIBILITY OF THE BOARD OR COMMITTEE TO DETERMINE WHETHER A CONFLICT EXISTS. IF THE INTERESTED PERSON IS FOUND TO HAVE A CONFLICT OF INTEREST, THEY WILL BE REQUIRED TO LEAVE THE MEETING DURING ALL DISCUSSION, VOTING, AND THE TRANSACTION INCLUDING THE CONFLICTING PARTY. THE EXISTENCE AND RESOLUTION OF ANY POTENTIAL AND/OR ACTUAL CONFLICT OF INTEREST SHALL BE DOCUMENTED IN THE CORPORATION'S RECORDS, AND IN THE MINUTES OF ANY MEETING AT WHICH THE POTENTIAL AND/OR ACTUAL CONFLICT WAS DISCUSSED AND/OR VOTED UPON. FORM 990, PART VI, SECTION B, LINE 15 ON AT LEAST A BI-ANNUAL BASIS, THE EXECUTIVE COMMITTEE REVIEWS COMPARABLE SALARIES BASED ON A RECOGNIZED STUDY AND REVIEWS THE PERFORMANCE OF THE CEO TO DETERMINE IF THE EXISTING SALARY FALLS WITHIN THESE RANGES. AFTER A DELIBERATION ON THIS MATTER, A NEW PROPOSED SALARY AND BENEFIT PACKAGE IS VOTED ON. THE MINUTES OF THE BOARD OF DIRECTORS REFLECT THE NATURE OF THIS PROCESS. THIS PROCESS WAS MOST RECENTLY REVIEWED IN 2023. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE ALL MADE AVAILABLE UPON REQUEST. FORM 990, PART XII, LINE 2C: THE PROCESS FOR OVERSIGHT AND SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED FROM THE PRIOR YEAR.