2017-11-13T17:09:46-06:00 2017-06-30 133516375 N CHENG & CO PC 40 WALL STREET 32ND FLOOR NEW YORK NY 10005 990 2016-07-01 132613383 PREP FOR PREP PREP 2125791390 328 WEST 71ST STREET NEW YORK NY 100233502 AILEEN HEFFERREN CHIEF EXECUTIVE 2125791390 2017-11-13 1 JENNIFFER SANCHEZ P02040580 2127850100 2017-11-13 50.75.211.14 2017-11-13 18:09:45 ES P 858F794DCB67CED686F74BC23752316E5F13C9DD C6E8D123F4470038C1F0FFD2E28D2DBE42A87EF8 2016 2017-02-10 21:41:12Z AILEEN HEFFERREN 328 WEST 71ST NEW YORK NY 10023 NEW YORK NY 10023 87512693 0 X WWW.PREPFORPREP.ORG X NOT FOR PROFIT 1968 NY PREP FOR PREP DEVELOPS LEADERS THROUGH ACCESS TO SUPERIOR EDUCATION AND LIFE CHANGING OPPORTUNITIES. 60 60 297 485 0 0 8236544 7919015 0 0 -2170177 5523751 1872142 2061157 7938509 15503923 0 0 0 0 6959705 7297712 0 0 1173551 3922127 4416659 10881832 11714371 -2943323 3789552 44294216 47416267 2269590 1836651 42024626 45579616 X PREP FOR PREP IS A LONG-TERM INVESTMENT STRATEGY TO DEVELOP THE LEADERSHIP POTENTIAL OF ABLE YOUNG PEOPLE FROM SEGMENTS OF SOCIETY GROSSLY UNDER-REPRESENTED IN THE LEADERSHIP POOL FROM WHICH ALL OF OUR MAJOR INSTITUTIONS DRAW. BY EXPANDING THE NATION'S LEADERSHIP (CONT'D) RESOURCES, WE AIM TO IMPACT INDIRECTLY ON A SET OF INTER-RELATED PROBLEMS THAT THREATEN TO REND OUR SOCIETY. 0 0 3311974 ACADEMIC PROGRAMS - 14-MONTH "ACADEMIC BOOT CAMPS" PREPARING APPROXIMATELY 200 STUDENTS FOR 7TH GRADE PLACEMENT IN INDEPENDENT DAY SCHOOLS IN NEW YORK CITY OR 9TH GRADE PLACEMENT IN NORTHEASTERN BOARDING SCHOOLS. 2379936 COUNSELING - INDIVIDUAL COUNSELING FOR APPROXIMATELY 800 STUDENTS THROUGH THEIR YEARS IN INDEPENDENT SCHOOL TO MONITOR THEIR ACADEMIC AND SOCIAL PROGRESS AND TO PROVIDE HELP AND SUPPORT AS NEEDED. SOCIAL AND CULTURAL ACTIVITIES DURING SCHOOL HOLIDAYS AND ON WEEKENDS EASE THE SOCIAL TRANSITION AND BUILD A SENSE OF COMMUNITY. SERVICES AND SUPPORT ARE MADE AVAILABLE TO APPROXIMATELY 800 UNDERGRADUATES AS WELL. 2242321 LEADERSHIP DEVELOPMENT OPPORTUNITIES FOR APPROXIMATELY 1,000 OF PREP'S HIGH SCHOOL AND COLLEGE STUDENTS. LEADERSHIP RETREATS, COLLEGE GUIDANCE, SUMMER INTERNSHIPS, TRAVEL ABROAD EXPERIENCES, AND OTHER OPPORTUNITIES THAT BROADEN STUDENTS' ASPIRATIONS, INCREASE THEIR SENSE OF LIFE'S POSSIBILITIES, AND BUILD A STRONGER SENSE OF SELF. OPPORTUNITIES, EVENTS, AND NETWORKING FOR PREP'S APPROXIMATELY 3,000 UNDERGRADUATE AND COLLEGE GRADUATE ALUMNI ENCOURAGES THEIR ON-GOING INVOLVEMENT WITH AND SUPPORT OF THE PROGRAM. 1304943 TALENT SEARCH - IDENTIFYING AND SELECTING 200 STUDENTS FOR PARTICIPATION IN THE PROGRAM - FROM AMONG 7,000 NOMINATED - THROUGH AN EXTENSIVE ADMISSIONS PROCESS. 199674 SMART CONNECTIONS - SHARING PREP'S MODEL AND EXPERIENCE WITH 120 ORGANIZATIONS AND SOCIAL ENTREPRENEURS. 1504617 9438848 1 1 0 0 0 0 0 0 0 1 1 1 0 0 0 1 1 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 1 44 0 1 297 1 0 0 BD CJ 0 0 0 1 1 0 0 X 60 60 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 0 1 1 0 NY X SHARON MADISON 2125791390 328 WEST 71ST STREET NEW YORK NY 100233502 MARTIN LIPTON CHAIRMAN EMERITUS (NON-VOTING) 0.00 X X 0 0 0 JOHN L VOGELSTEIN CHAIRMAN EMERITUS (NON-VOTING) 0.00 X X 0 0 0 SCOTT L BOK CHAIRMAN 1.00 X X 0 0 0 LISA SMITH CASHIN PRESIDENT 1.00 X X 0 0 0 DANIEL M NEIDICH EXECUTIVE VICE PRESIDENT 1.00 X X 0 0 0 FRANK K BYNUM JR VICE PRESIDENT 1.00 X X 0 0 0 ANNE GILCHRIST HALL VICE PRESIDENT 1.00 X X 0 0 0 JAMES R MAHER VICE PRESIDENT 1.00 X X 0 0 0 ERIC A ROTHFELD VICE PRESIDENT 1.00 X X 0 0 0 JOHN H HALL ESQ VICE PRESIDENT & SECRETARY 1.00 X X 0 0 0 SUE MENG VICE PRESIDENT & ASSISTANT SECRETARY 1.00 X X 0 0 0 PETER ANZALONE VICE PRESIDENT & TREASURER 1.00 X X 0 0 0 ARUN ALAGAPPAN TRUSTEE 0.50 X 0 0 0 HERBERT ALLEN III TRUSTEE 0.50 X 0 0 0 JOHN ALLMAN TRUSTEE, EX OFFICIO (NON-VOTING) 0.50 X 0 0 0 DALE ALLSOPP TRUSTEE 0.50 X 0 0 0 ANNE-CARMENE ALMONORD TRUSTEE 0.50 X 0 0 0 NICOLE ARNABOLDI TRUSTEE 0.50 X 0 0 0 CONOR BASTABLE TRUSTEE 0.50 X 0 0 0 ANSON H BEARD TRUSTEE 0.50 X 0 0 0 RONALD E BLAYLOCK TRUSTEE 0.50 X 0 0 0 JORGE CALDERON TRUSTEE 0.50 X 0 0 0 VAUGHN CALDON TRUSTEE 0.50 X 0 0 0 KEN CAPLAN TRUSTEE 0.50 X 0 0 0 RICHARD D'ALBERT TRUSTEE 0.50 X 0 0 0 DANIELLE DANESE TRUSTEE 0.50 X 0 0 0 ELIZABETH B DATER TRUSTEE 0.50 X 0 0 0 JAMES DEMARE TRUSTEE 0.50 X 0 0 0 PASCAL DESROCHES TRUSTEE 0.50 X 0 0 0 ALEXANDER R EDLICH TRUSTEE 0.50 X 0 0 0 JOHN EYDENBERG TRUSTEE 0.50 X 0 0 0 PATRICIA FARMAN-FARMAIAN TRUSTEE 0.50 X 0 0 0 JONATHAN FIGUEROA TRUSTEE 0.50 X 0 0 0 JEREMY W GELBER TRUSTEE 0.50 X 0 0 0 MYRNA GREENBERG TRUSTEE 0.50 X 0 0 0 CARL D HARNICK TRUSTEE 0.50 X 0 0 0 NATALIE S HUTCHINSON TRUSTEE 0.50 X 0 0 0 LESLIE-BERNARD JOSEPH TRUSTEE 0.50 X 0 0 0 ROBIN KRASNY TRUSTEE 0.50 X 0 0 0 JAY L KRIEGEL TRUSTEE 0.50 X 0 0 0 LAURENCE C LEEDS JR TRUSTEE 0.50 X 0 0 0 JAMES R LEVY TRUSTEE 0.50 X 0 0 0 MARGARET MUNZER LOEB TRUSTEE 0.50 X 0 0 0 FRANK J LOVERRO TRUSTEE 0.50 X 0 0 0 BRIDGET MACASKILL TRUSTEE 0.50 X 0 0 0 PAULA KARSTENS MAHONEY TRUSTEE 0.50 X 0 0 0 JULIE MONACO TRUSTEE 0.50 X 0 0 0 R TYLER MORSE TRUSTEE 0.50 X 0 0 0 JONATHAN MOSES TRUSTEE 0.50 X 0 0 0 JEANNEMARIE O'BRIEN TRUSTEE 0.50 X 0 0 0 CHRISTOPHER ORTEGA TRUSTEE 0.50 X 0 0 0 SANDY OSBORNE TRUSTEE 0.50 X 0 0 0 LISSA PERLMAN TRUSTEE 0.50 X 0 0 0 TREVOR PRICE TRUSTEE 0.50 X 0 0 0 LOU SHAPIRO TRUSTEE 0.50 X 0 0 0 WILLIAM A SHUTZER TRUSTEE 0.50 X 0 0 0 MICHAEL WEST TRUSTEE 0.50 X 0 0 0 PEG SULLIVAN TRUSTEE 0.50 X 0 0 0 MARISA ROSE VAN BOKHORST TRUSTEE 0.50 X 0 0 0 ANITA VOLZ WIEN TRUSTEE 0.50 X 0 0 0 BRIAN C WILLE TRUSTEE 0.50 X 0 0 0 VALDA WITT TRUSTEE 0.50 X 0 0 0 BABAK YAGHMAIE TRUSTEE 0.50 X 0 0 0 AILEEN HEFFERREN CHIEF EXECUTIVE 40.00 X 377950 0 46000 ED BOLAND VP FOR EXTERNAL AFFAIRS 40.00 X 224121 0 17675 BRIDGET JOHNSON ASSOC. EXEC DIRECTOR 40.00 X 183999 0 30894 CHARLES GUERRERO DIR. LEADERSHIP DEVT. OPPO 40.00 X 122817 0 20769 SHARON MADISON VP FOR ADMINISTRATION 40.00 X 185153 0 2000 NIKOLE SMITH DIR. ACADEMIC PROGRAMS 40.00 X 131907 0 20359 1225947 0 137697 6 0 1 0 L&M BUS CORP 3167 ATLANTIC AVENUE BROOKLYN NY 11208 STUDENT TRANSPORTATION 431603 ASCEND SECURE TECHNOLOGY 2254 HOMECREST AVENUE BROOKLYN NY 11229 TECHNOLOGY 164472 2 1486253 6432762 518039 7919015 436937 436937 76764506 71677692 5086814 5086814 5086814 2369044 1486253 331078 2037966 2037966 OTHER REVENUE 900099 23191 23191 23191 15503923 5546942 0 2037966 592000 415000 106000 71000 5393299 4472078 327153 594068 232325 169427 10478 52420 591147 500812 34800 55535 488941 412413 27907 48621 83500 83500 467820 251940 120850 95030 553889 327594 74332 151963 208218 165448 10818 31952 558640 530290 17172 11178 135034 114678 7831 12525 145733 145733 41172 35715 2220 3237 130078 105251 11707 13120 73988 73988 MISCELLANEOUS 690162 499882 157378 32902 INTERNSHIPS AND LEADERS 369129 369129 PUPIL TRANSPORTATION 364948 364948 0 0 SCHOOL AND COLLEGE TRIP 211033 211033 383315 347477 35838 11714371 9438848 1101972 1173551 2200 2469406 2412722 3325886 1770477 546269 601726 6438085 4223112 2286637 2214973 21774937 22297158 13921154 18062527 24411 0 44294216 47416267 1111844 737683 1157746 1098968 2269590 1836651 X 39301538 42915592 1464841 1405777 1258247 1258247 42024626 45579616 44294216 47416267 3789552 11576 -246138 0 X 0 1 X 1 0 X 11307871 9009443 10484108 10099964 9956981 50858367 11307871 9009443 10484108 10099964 9956981 50858367 2474500 48383867 260732 208118 202077 187288 436937 1295152 8722 23191 31913 52185432 280080 0.92720 0.85730 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 35509937 5145697 -1440045 39215589 37510460 10000 -1779326 -231198 35509937 36139900 598954 1008340 -236734 37510460 31395723 10000 6255103 -1500928 36139900 27728516 11000 3954223 -40619 -257397 31395723 0.94800 0.03200 0.02000 0 0 492750 492750 3681684 2050841 1630843 2263651 2172271 91380 2214973 ALTERNATIVE INVESTMENTS 18062527 F 18062527 X 10853149 436040 436040 10417109 5086814 5086814 15503923 12150411 436040 436040 11714371 0 11714371 PART V, LINE 4: THE BOARD DESIGNATED ENDOWMENT IS DEFINED AS ALL FUNDS WHICH WOULD OTHERWISE BE UNRESTRICTED AS TO USE, BUT WHICH THE BOARD HAS DESIGNATED AS ENDOWMENT FUNDS. THIS CATEGORY OF ENDOWMENT FUNDS WAS ESTABLISHED TO SERVE AS A BUFFER IN TIMES OF GENERAL ECONOMIC DOWNTURN AND AS A MEANS TO ENSURE THAT THE FINANCIAL UNCERTAINTIES IMPLICIT IN NOT HAVING AN ASSURED REVENUE STREAM OR A TUITION BASE DO NOT RESULT IN PROGRAMMATIC DECISIONS DRIVEN BY THE VAGARIES OF ANNUAL FUNDRAISING. PART X, LINE 2: PREP IS A NOT-FOR-PROFIT ORGANIZATION THAT IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (THE CODE) AND HAVE BEEN DETERMINED NOT TO BE PRIVATE FOUNDATIONS UNDER SECTION 509(A)(1) OF THE CODE. PREP HAS ADOPTED THE PROVISION PERTAINING TO UNCERTAIN TAX POSITIONS AND HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENT. PERIODS ENDING JUNE 30, 2013 AND SUBSEQUENT REMAIN OPEN TO EXAMINATION TO APPLICABLE TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: REALIZED GAINS ON INVESTMENTS 5,086,814. CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS N/A 24171 0 0 0 0 0 0 24171 0 24171 0 0 0 1 0 0 PART I, LINE 3: ACTUAL INVESTMENT BALANCE AT THE END OF THE FISCAL YEAR LILAC BALL 3855297 1486253 2369044 269357 41643 12484 7998 3855297 1486253 2369044 269357 41643 12484 7998 331482 2037562 X X X X X 0 1 0 0 0 0 0 0 0 AILEEN HEFFERREN CHIEF EXECUTIVE 377950 0 0 0 0 0 46000 0 0 0 423950 0 0 0 ED BOLAND VP FOR EXTERNAL AFFAIRS 224121 0 0 0 0 0 17675 0 0 0 241796 0 0 0 BRIDGET JOHNSON ASSOC. EXEC DIRECTOR 183999 0 0 0 0 0 30894 0 0 0 214893 0 0 0 SHARON MADISON VP FOR ADMINISTRATION 185153 0 0 0 0 0 2000 0 0 0 187153 0 0 0 NIKOLE SMITH DIR. ACADEMIC PROGRAMS 131907 0 0 0 0 0 20359 0 0 0 152266 0 0 0 PART I, LINE 4B AILEEN HEFFERREN; PAYMENTS TO 457B PLAN - $12,000 KATHRYN BORDONARO SPOUSE OF A FORMER KEY EMPLOYEE 65046 EMPLOYMENT 0 SAMUEL J ZALUTSKY SPOUSE OF KEY EMPLOYEE 8500 INDEPENDENT CONTRACTOR ARRANGEMENT 0 NEW PROVIDENCE ASSET MANAGEMENT (NPAM) JOHN VOGELSTEIN, CHAIRMAN EMERITUS OF PREP 0 ON JUNE 1, 2017, PREP ENTERED INTO A SUBSCRIPTION AGREEMENT AS A LIMITED PARTNER IN NEW PROVIDENCE BALANCED PORTFOLIO, LP WITH NPAM FOR THE MANAGEMENT OF A PORTION OF PREP'S ENDOWMENT ASSETS. MR. VOGELSTEIN'S INTEREST IN NPAM HAD PREVIOUSLY BEEN DISCLOSED TO PREP, AND HE PLAYED NO ROLE IN PREP'S DECISION TO ENGAGE NPAM. 0 X 28 518039 FAIR MARKET VALUE 0 1 1 PART I, LINE 32B: GIFTS OF SHARES OF STOCK ARE RECEIVED ON PREP'S BEHALF BY MERRILL LYNCH AND ARE SOLD AS SOON AS PREP IS NOTIFIED OF RECEIPT. FORM 990, PART I, LINE 6 PREP STUDENTS AND ALUMNI VOLUNTEER IN THE PREP ADMISSIONS OFFICE, WORK WITH PROSPECTIVE APPLICANTS AND THEIR PARENTS DURING THE RECRUITMENT AND APPLICATION PROCESS. PREP GRADS, OR STUDENTS WHO HAVE COMPLETED 8TH GRADE IN THEIR INDEPENDENT SCHOOLS, SERVE AS VOLUNTEERS DURING THE PREPARATORY COMPONENT SUMMER SESSION BY ASSISTING WITH ATTENDANCE, TELEPHONE CALLS, AND THE COLLECTION AND DISTRIBUTION OF LUNCHES, MAILINGS, BOOKS AND NOTICES. (APPROXIMATE TOTAL NUMBER OF VOLUNTEERS FOR ADMISSIONS AND PREPARATORY COMPONENT: 80.) PREP FOR PREP ALSO USES VOLUNTEERS IN ORDER TO FACILITATE ITS PROFESSIONAL ADVANCEMENT INITIATIVES, WHICH EXPOSE PREP HIGH SCHOOL STUDENTS AND UNDERGRADUATES TO A RANGE OF CAREER OPTIONS THEY MIGHT NOT OTHERWISE HAVE CONSIDERED. THESE INITIATIVES INCLUDE SUMMER INTERSHIPS, SUMMER JOBS BANK, AND THE PREP FOR PREP INSTITUTE FOR ENTREPRENEURSHIP. VOLUNTEERS HELP PREPARE STUDENTS FOR SUMMER INTERNSHIPS BY CONDUCTING MOCK INTERVIEWS FOR HIGH SCHOOL STUDENTS. THROUGH THE INSTITUTE FOR ENTREPRENEURSHIP, VOLUNTEERS SERVE AS BUSINESS PLAN ADVISORS AND FINAL COMPETITION JUDGES. PREP ALSO USES VOLUNTEERS TO SERVE AS CAREER SEMINAR SERIES PANELISTS. (APPROXIMATE TOTAL NUMBER OF VOLUNTEERS FOR PROFESSIONAL ADVANCEMENT: 280.) BOARD AND ASSOCIATES COUNCIL MEMBERS VOLUNTEER THEIR TIME AND PROFESSIONAL EXPERIENCE TO ATTEND PANELS AND LEVERAGE THEIR CONTACTS. (TOTAL NUMBER OF BOARD AND ASSOCIATES COUNCIL MEMBERS: 100.) IN ADDITION, APPROXIMATELY 25 PREP ALUMNI VOLUNTEER THEIR TIME TO HELP RUN PREP'S ANNUAL GIVING CAMPAIGN. FORM 990, PART VI, SECTION A, LINE 2 KATHRYN BORDONARO - SPOUSE OF FORMER KEY EMPLOYEE; SAMUEL J. ZALUTSKY- SPOUSE OF KEY EMPLOYEE THE TRUSTEES ANNIE AND JOHN HALL ARE MARRIED. THE TRUSTEES FRANK BYNUM, FRANK LOVERRO AND SANDY OSBORNE HAVE A SHARED OWNERSHIP INTEREST IN KELSO & COMPANY, INC. THE FOLLOWING TRUSTEES ARE ASSOCIATED WITH THE SAME ORGANIZATION: JOHN HALL AND SUE MENG BOTH WORK WITH DEBEVOISE & PLIMPTON; MARTY LIPTON, JON MOSES AND JEANNEMARIE O'BRIEN WORK WITH WACHTELL, LIPTON, ROSEN & KATZ. FORM 990, PART VI, SECTION B, LINE 11B BEFORE FILING, THE 990 IS REVIEWED BY THE TREASURER OF PREP FOR PREP, DISTRIBUTED TO ALL MEMBERS OF THE FINANCE COMMITTEE FOR REVIEW, APPROVED BY THE EXECUTIVE COMMITTEE OF TRUSTEES, AND DISTRIBUTED TO ALL BOARD MEMBERS. FORM 990, PART VI, SECTION B, LINE 12C IN DISCHARGING ITS OVERSIGHT RESPONSIBILITIES, THE FINANCE COMMITTEE IS EMPOWERED TO INVESTIGATE ANY MATTER BROUGHT TO ITS ATTENTION WITH FULL ACCESS TO ALL BOOKS, RECORDS, FACILITIES AND PERSONNEL OF PREP. IN KEEPING WITH ITS CHARTER, THE FINANCE COMMITTEE ANNUALLY REVIEWS AND DISCUSSES WITH MANAGEMENT AND THE INDEPENDENT AUDITORS THE ADEQUACY AND EFFECTIVENESS OF PREP'S LEGAL, REGULATORY AND ETHICS COMPLIANCE PROGRAMS, INCLUDING PREP'S CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE STAFF RECRUITMENT AND COMPENSATION COMMITTEE OF THE BOARD ASSISTS THE EXECUTIVE COMMITTEE OF THE BOARD IN DETERMINING COMPENSATION OF SENIOR MANAGEMENT. COMMITTEE MEMBERS ARE INDEPENDENT AND RECEIVE NO COMPENSATION FOR THEIR SERVICE ON THE COMMITTEE. THE COMMITTEE REVIEWS THE COMPENSATION OF THE CHIEF EXECUTIVE AND KEY EMPLOYEES EACH YEAR AND RECOMMENDS CHANGES OR ADJUSTMENTS TO THE EXECUTIVE COMMITTEE. REVIEW INCLUDES PERIODIC USE OF COMPARABILITY DATA AND RETENTION OF OUTSIDE EXPERTS AND OTHER ADVISORS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL REPORTS AVAILABLE TO THE PUBLIC UPON REQUEST.