2022-11-09T15:50:55-06:00 2021-12-31 410746749 CLIFTONLARSONALLEN LLP 8390 EAST CRESCENT PARKWAY SUITE 300 GREENWOOD VILLAGE CO 80111 990 2021-01-01 273611908 DEFY VENTURES INC DEFY 7202317085 5 PENN PLAZA 19TH FLOOR NEW YORK NY 10001 JOHN GAROFOLO CFO 7202317085 2022-11-07 1 JOHN GAROFOLO XXX-XX-XXXX SARAH HINTZ P00492291 3037795710 2022-11-07 0 AAL1 IAL1 2021 2022-09-23 18:48:47Z ANDREW GLAZIER 5 PENN PLAZA 19TH FLOOR NEW YORK NY 10001 2964539 0 X WWW.DEFYVENTURES.ORG X 2010 NY TO SHIFT MINDSETS AND GIVE PEOPLE WITH CRIMINAL HISTORIES THEIR BEST SHOT AT A SECOND CHANCE. 11 11 37 538 0 0 2592142 2735926 0 228466 166 147 37789 0 2630097 2964539 36504 34483 0 0 1436524 1779540 0 0 189623 385466 330970 1858494 2144993 771603 819546 1772831 2710891 711434 701548 1061397 2009343 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 1608138 34483 228466 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 6,300 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 6,700+ 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 SEVEN STATES (NY, CT, NJ, CA, IL, WI, 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 AN 84% EMPLOYMENT RATE FOR RELEASED EITS WHO HAVE COMPLETED OUR PROGRAM.7.LAUNCHED 150+ BUSINESSES, INCLUDING INCORPORATION AND SEED FUNDING.8.RAISED OVER $30 MILLION IN PRIVATE FUNDING SINCE INCEPTION (2010). 1608138 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 1 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 12 0 1 37 1 0 0 0 0 0 0 0 0 0 0 0 0 X 11 11 0 0 0 0 0 0 0 1 0 0 1 1 1 1 1 1 1 1 1 1 0 NY CA IL WA X JOHN GAROFOLO 7202317085 5 PENN PLAZA 19TH FLOOR NEW YORK NY 10001 JOHN GAROFOLO CFO 60.00 X 146426 0 14393 JULIE JACKSON-FORSBERG VP-LEARNING 60.00 X 109436 0 20268 ANDREW GLAZIER PRESIDENT & CEO 60.00 X 99700 0 98 BRIAN KORB CHAIRMAN 1.00 X X 0 0 0 ARIEL JADUSZLIWER SECRETARY/TREASURER 0.50 X X 0 0 0 HENRY HAMILTON III PAST CHAIRMAN (THRU 3/21) 1.00 X X 0 0 0 JOHN DVOR DIRECTOR 0.50 X 0 0 0 MARCUS GLOVER DIRECTOR 0.50 X 0 0 0 MICHAEL HUGGINS DIRECTOR 0.50 X 0 0 0 SONIA KAHLON DIRECTOR 0.50 X 0 0 0 SABRINA MACIAS 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 JOHNATHAN NEIL DIRECTOR 0.50 X 0 0 0 APRIL SMITH DIRECTOR 0.50 X 0 0 0 MONICA THURMOND DIRECTOR (THRU 3/21) 0.50 X 0 0 0 355562 0 34759 2 0 1 0 0 637568 2098358 50056 2735926 CONTRACT SERVICES 900099 225157 225157 PROGRAM EVENTS 900099 3309 3309 228466 147 147 2964539 228466 0 147 34483 34483 260616 95093 130594 34929 1267696 1024050 132254 111392 3420 2651 510 259 119527 100248 9181 10098 128281 99451 19131 9699 2832 2832 20063 20063 20350 12850 7500 71085 55405 3483 12197 32214 13388 9673 9153 58724 58724 9883 8597 688 598 8358 8358 37157 37157 PARTICIPANT TRAINING 45188 44957 231 PROGRAM EVENTS 10489 10205 217 67 CONSTITUENT DEVELOPMENT 5560 2512 1922 1126 BAD DEBTS EXPENSE 3183 2588 595 5884 5779 105 2144993 1608138 347232 189623 1415975 2111415 334795 481438 22061 67982 10786 10786 0 0 50056 1772831 2710891 166216 207017 535090 489123 10128 5408 711434 701548 X 113997 613596 947400 1395747 1061397 2009343 1772831 2710891 819546 42000 86400 0 X X 0 1 X 1 0 X 5540888 3419299 2329453 2592142 2735926 16617708 5540888 3419299 2329453 2592142 2735926 16617708 925100 15692608 533 417 218 166 147 1481 26634 86869 78536 37789 229828 16849017 318626 0.93140 0.96270 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 10786 10786 0 0 DEFERRED RENT 5408 5408 X 3009539 45000 45000 2964539 0 2964539 2147993 3000 3000 2144993 0 2144993 PART X, LINE 2: THE ORGANIZATION IS EXEMPT FROM INCOME TAXES UNDER 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 ORGANIZATION'S TAX-EXEMPT PURPOSE IS SUBJECT TO TAXATION AS UNRELATED INCOME. THERE WAS NO INCOME FROM BUSINESS UNRELATED TO THE ORGANIZATION'S EXEMPT PURPOSE DURING THE YEARS ENDED DECEMBER 31, 2021 AND 2020. 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. NORTH AMERICA 0 0 CONTRIBUTIONS RECEIVED N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 PART III ACCOUNTING METHOD: 1 EIT STIPENDS 141 1500 29883 COST CHROMEBOOKS & GIFTCARDS BUSINESS COMPETITION AWARDS 8 3100 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 146426 0 0 0 0 0 0 0 14393 0 160819 0 0 0 X 1 50056 FMV 0 0 0 0 PART I, COLUMN (B): COLUMN B INDICATES THE NUMBER OF CONTRIBUTORS. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE ANY COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT REVIEWS A DRAFT OF THE FORM 990 WITH THE AUDIT/FINANCE COMMITTEE AND PROVIDED 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. 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. 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 2021. ON AT LEAST A BI-ANNUAL BASIS, THE EXECUTIVE COMMITTEE REVIEWS COMPARABLE SALARIES BASED ON A RECOGNIZED STUDY AND REVIEWS THE PERFORMANCE OF THE CFO AND PRESIDENT 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 2021. 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.