2012-03-15T16:06:43-05:00 2011-09-30 O'CONNOR DAVIES MUNNS & DOBBINS LLP 60 EAST 42ND STREET 36TH FLOOR NEW YORK NE 101653698 990 2010-10-01 133048638 COMMUNITY RESOURCE EXCHANGE INC COMM 2128943394 42 BROADWAY 20TH FLOOR NEW YORK NY 10004 VALYRIE LAEDLEIN 2128943394 2012-03-19 1 CHRISTOPHER PETERMANN 2122862600 2010 2016-02-24 21:20:13Z VALYRIE LAEDLEIN 42 BROADWAY 20TH FLOOR NEW YORK NY 10004 4893595 0 X WWW.CRENYC.ORG X 1979 NY COMMUNITY RESOURCE EXCHANGE HELPS NY NONPROFIT LEADERS BUILD SUSTAINABLE, EFFECTIVE NONPROFITS.AS ONE OF NEW YORK CITY'S MOST ESTABLISHED NONPROFIT MANAGEMENT CONSULTING PROVIDERS, CRE PROVIDES STRATEGIC ADVICE AND ORGANIZATIONAL DEVELOPMENT SERVICES EVERY YEAR TO MORE THAN 200 COMMUNITY-BASED NONPROFIT ORGANIZATIONS CONFRONTING SOCIAL ISSUES SUCH AS POVERTY AND HIV/AIDS IN LOW AND MODERATE INCOME NEIGHBORHOODS. ADDITIONALLY, CRE OFFERS COACHING, WORKSHOPS, AND COHORT LEARNING PROGRAMS IN THE AREAS OF STRATEGIC AND ORGANIZATIONAL PLANNING, BOARD DEVELOPMENT, MIDDLE MANAGER TRAINING, FINANCIAL MANAGEMENT, STRATEGIC RESTRUCTURING, AND LEADERSHIP DEVELOPMENT. CRE ALSO PROVIDES INFORMATION, GUIDANCE, RESOURCES FOR NONPROFITS, SKILL BUILDING AND LEADERSHIP TRAINING, AND PARTNERS WITH GOVERNMENT AND FUNDING AGENCIES TO ASSURE THAT ITS SERVICES ARE MADE AVAILABLE WITHOUT CONSIDERATION OF A CLIENT'S ABILITY TO PAY. 14 14 32 0 0 0 2628938 3116236 471474 541040 43773 22496 0 0 3144185 3679772 17330 161855 0 0 2452912 2208251 0 0 64508 1196172 960049 3666414 3330155 -522229 349617 3795208 4244395 171582 283672 3623626 3960723 X CRE IS A NONPROFIT MANAGEMENT CONSULTING FIRM THAT MAKES NONPROFIT ORGANIZATIONS MORE SUSTAINABLE AND EFFECTIVE IN FIGHTING POVERTY AND ADVANCING SOCIAL JUSTICE. CRE PROVIDES CUSTOMIZED CONSULTING, COACHING AND TRAINING SERVICES TO OVER 250 ORGANIZATIONS PER YEAR.ADDITIONAL SERVICES PROVIDED INCLUDE OPERATION OF AN "EXECUTIVE DIRECTOR HOTLINE" - THROUGH WHICH NONPROFIT LEADERS CAN RECEIVE IMMEDIATE ASSISTANCE BY PHONE; THE PRODUCTION AND DISSEMINATION OF BOOKS, MATERIALS AND TOOLS TO SUPPORT NONPROFIT ORGANIZATION MANAGEMENT; AND PROVISION OF MEETING SPACE IN CRE'S CONFERENCE CENTER. THROUGH THESE MULTIPLE VEHICLES, CRE SEEKS TO BUILD THE MANAGEMENT AND LEADERSHIP CAPACITY OF COMMUNITY-BASED ORGANIZATIONS IN LOW AND MODERATE-INCOME NEIGHBORHOODS SO THAT THEY MAY PROVIDE ESSENTIAL PROGRAMS AND SERVICES AND WORK FOR SOCIAL CHANGE. 0 0 2515903 161855 541040 CRE TAKES AN INTEGRATED APPROACH TO SUPPORTING COMMUNITY ORGANIZATIONS, USING A VARIETY OF METHODOLOGIES AND OFTEN ENGAGING THE SAME CLIENT ORGANIZATION IN VARIOUS WAYS. ALL METHODS FALL WITHIN CRE'S SINGLE SUBSTANTIVE PROGRAM OF CAPACITY BUILDING FOR COMMUNITY-BASED ORGANIZATIONS, AND INCLUDE MANAGEMENT SUPPORT/ORGANIZATIONAL CONSULTING; COACHING; TRAINING AND PROFESSIONAL DEVELOPMENT; AND RESOURCES AND PUBLICATIONS. SEE APPENDIX O FOR ELABORATION OF CRE'S METHODOLOGIES.CRE EMPLOYS A VARIETY OF METHODS WITHIN ITS SINGLE PROGRAM OF CAPACITY BUILDING FOR COMMUNITY-BASED ORGANIZATIONS.MANAGEMENT SUPPORT (ORGANIZATIONAL CONSULTING) - THE HALLMARK OF OUR APPROACH HAS BEEN ESTABLISHING ONE-TO-ONE RELATIONSHIPS WITH ORGANIZATIONAL LEADERSHIP TO TACKLE ISSUES RELATED TO SYSTEMS, STRUCTURE, MANAGING AND LEADING. CRE IS REGULARLY ENGAGED BY COMMUNITY-BASED ORGANIZATIONS IN WORK DESIGNED TO STRENGTHEN ORGANIZATIONAL LEADERSHIP, STREAMLINE AND IMPROVE SYSTEMS AND STRUCTURE, AND BUILD AND MANAGE NEW RESOURCES AND REVENUES. CRE HAS AN EXPERIENCED AND DEDICATED STAFF OF MULTI-CULTURAL, MULTI-LINGUAL PROFESSIONALS, 80% OF WHOM HAVE ADVANCED DEGREES. COACHING - CRE STAFF ENGAGE IN ONE-TO-ONE COACHING RELATIONSHIPS WITH NON-PROFIT LEADERS AND MANAGERS, FOCUSING ON INDIVIDUALIZED CHANGE INITIATIVES AND TEAM-STRENGTHENING PROCESSES. THE WORK INCLUDES THE USE OF A LEADERSHIP OR MANAGEMENT ASSESSMENT TOOL (MOST OFTEN A 360-DEGREE FEEDBACK SURVEY), GOAL-SETTING, WORKPLACE ASSIGNMENTS AND SPACE FOR DEBRIEF AND REFLECTION. THE ENGAGEMENT IS DESIGNED ULTIMATELY TO STRENGTHEN LEADERSHIP AND MANAGEMENT EFFECTIVENESS, AND THEREBY, ORGANIZATIONAL PERFORMANCE. IMPLEMENTATION COACHING SUPPORTS NONPROFIT LEADERS AND ADDRESSES SPECIFIC PERFORMANCE OR ORGANIZATIONAL ISSUES BY HELPING DEVELOP SKILLS IN THOSE TARGETED AREAS. CRE COACHES PROVIDE IMPLEMENTATION COACHING IN STAFF MANAGEMENT AND SUPERVISION, HUMAN RESOURCES ISSUES, BOARD-RELATED ISSUES, FINANCIAL MANAGEMENT, FUND DEVELOPMENT STRATEGY, AND OTHER AREAS.TRAINING AND PROFESSIONAL DEVELOPMENT - CRE PROVIDES A NUMBER OF OFFERINGS INTENDED TO BUILD THE KNOWLEDGE AND SKILLS OF INDIVIDUAL MANAGERS AND LEADERS, THEREBY LAYING THE FOUNDATION FOR STRENGTHENING THEIR ORGANIZATIONS. FOR EMERGING ORGANIZATIONS, CRE OFFERS A "START-UP SERIES" OF WORKSHOPS THAT COVER THE RUDIMENTS OF DEVELOPING A THEORY OF CHANGE, IDENTIFYING INTENDED OUTCOMES, BUILDING A SYSTEM FOR MANAGING FINANCES, AND RAISING FUNDS TO SUPPORT PROGRAM AND OPERATIONS. IN THE AREA OF EXECUTIVE EDUCATION, OUR CORNERSTONE OFFERING, THE LEADERSHIP CAUCUS, IS AN EIGHT-MONTH INTERACTIVE LEADERSHIP DEVELOPMENT PROGRAM THAT USES HANDS-ON EXPERIENCES AND PEER LEARNING TO ENABLE EACH PARTICIPANT TO BECOME MORE EFFECTIVE. THE CAUCUS IS ENRICHED BY ACTION LEARNING SESSIONS, 360-DEGREE FEEDBACK AND COACHING, AND A DAY-LONG MANAGEMENT SIMULATION THAT REPLICATES THE CHALLENGES OF LEADING AND MANAGING IN A "TYPICAL" NONPROFIT. A CORRESPONDING OFFERING FOR MIDDLE MANAGERS IS OFFERED, CALLED THE "HIGH PERFORMING MANAGERS' INSTITUTE."RESOURCES AND PUBLICATIONS - CRE HAS DEVELOPED PRACTICAL MANAGEMENT MANUALS TO HELP ORGANIZATIONS, FUNDERS AND INDIVIDUALS ADDRESS IMPORTANT ISSUES. OUR MAIN PUBLICATION, FROM VISION TO REALITY, WALKS A PERSON THROUGH THE PROCESS OF STARTING A NONPROFIT ORGANIZATION, ADDRESSING LEGAL ISSUES, CONDUCTING A PROGRAM NEEDS ASSESSMENT, BUDGETING AND ULTIMATELY FUNDRAISING. OTHER PUBLICATIONS INCLUDE, "MASTERING YOUR FIRST GOVERNMENT CONTRACT," "SQUARE FEET: HOW TO NAVIGATE NYC'S PERILOUS OFFICE LEASING MARKET," AND "ROADMAP TO THE WEBSITES."PLEASE SEE WWW.CRENYC.ORG FOR MORE INFORMATION ABOUT OUR WORK. CRE 2011 ACCOMPLISHMENTS:-IN FY2011, CRE STAFF PROVIDED OVER 9000 HOURS OF ONE-TO-ONE CONSULTING AND COACHING SERVICES TO 225 COMMUNITY-BASED ORGANIZATIONS AND NEARLY 1900 HOURS OF COHORT-BASED LEARNING OFFERINGS AND WORKSHOPS TO 200 NONPROFIT STAFF AND LEADERSHIP - BOTH AS PUBLIC OFFERINGS AND AS PROFESSIONAL DEVELOPMENT PROGRAMMING FOR STAFF WITHIN LARGE SOCIAL SERVICE AGENCIES.-CRE DELIVERED ITS 10TH LEADERSHIP CAUCUS, INVOLVING 29 EXECUTIVE LEADERS FROM NON-PROFITS IN ITS 8-MONTH LEADERSHIP CAUCUS THAT OFFERS ISSUE-BASED TRAINING, A MANAGEMENT SIMULATION, 360-DEGREE FEEDBACK COACHING AND ACTION LEARNING TEAMS. -CRE DESIGNED AND FACILITATED A FUNDRAISING INSTITUTE FOR ADMINISTRATIVE AND DEVELOPMENT STAFF FROM 6 URBAN ASSEMBLY SCHOOLS ACROSS NEW YORK CITY, TO DEVELOP THEIR SKILLS AND PRACTICE OF FUNDRAISING FOR THEIR EDUCATION PROGRAMS. -CRE CONDUCTED THREE CYCLES OF ITS HIGH PERFORMING MANAGERS' INSTITUTE, ONE FOR MIDDLE MANAGERS FROM YOUTH SERVING ORGANIZATIONS AND THE OTHERS FOR STAFF OF TWO LARGE HUMAN SERVICE AGENCIES. -CRE PROVIDED ADVICE BY PHONE THROUGH OUR EXECUTIVE DIRECTOR HOTLINE, INTENDED TO HELP EXECUTIVE DIRECTORS GET QUICK ANSWERS TO PRESSING PROBLEMS IN HARD TIMES. THE HOTLINE PARTNERS WITH NEW YORK CITY, TAKING REFERRAL CALLS FROM NONPROFITS WHO CALL NEW YORK CITY'S 311-LINE WITH QUESTIONS.-CRE DEEPENED ITS INVOLVEMENT IN FOUR NEIGHBORHOODS IN NEW YORK CITY MOST AFFECTED BY THE ECONOMIC RECESSION, IMPLEMENTING PLANS FOR TRAINING, COHORT LEARNING, AND PEER COACHING AMONG REPRESENTATIVES OF COMMUNITY BASED ORGANIZATIONS WITHIN THE FOUR COMMUNITIES OF HIGHBRIDGE, EAST NEW YORK, FAR ROCKAWAY, AND WASHINGTON HEIGHTS. CRE SUPPORTED COORDINATED NEEDS ASSESSMENT, BRAINSTORMING, AND PLANNING FOR SHARED ACTIVITIES TO BE UNDERTAKEN TO STRENGTHEN AND MAINTAIN SAFETY-NET SERVICES TO THEIR COMMUNITIES.-CRE EVALUATED ITS WORK ON ITS "STRENGTHENING OUR CORE" INITIATIVE WITH THE NEW YORK CITY DEPARTMENT OF YOUTH AND COMMUNITY DEVELOPMENT AND ITS CONSULTING AND CAPACITY BUILDING WORK WITH ORGANIZATIONS SUPPORTED THROUGH THE NEW YORK CITY COUNCIL'S COMMUNITIES OF COLOR HIV/AIDS INITIATIVE, COMPLETING COMPREHENSIVE REPORTS OF WORK UNDERTAKEN AND OUTCOMES ACHIEVED UNDER EACH INITIATIVE. -CRE SERVED AS THE NEW YORK CITY PARTNER FOR "DARING TO LEAD," THE THIRD NATIONAL STUDY OF NONPROFIT LEADERS BY COMPASSPOINT AND THE MEYER FOUNDATION. CRE USED ITS NETWORKS TO GET 254 RESPONSES TO THE STUDY (THERE WERE 3,000 RESPONSES NATIONALLY), AND THEN USED THE DATA COLLECTED TO BLOG WEEKLY ABOUT KEY FINDINGS OF THE NATIONAL STUDY AND POINT OUT ANY DIFFERENCES BETWEEN THE NATIONAL AND NYC EXPERIENCE AND PERSPECTIVE. -CRE HONED ITS APPROACH TO WORKING WITH ORGANIZATIONS TO ASSURE EFFECTIVE PROGRAMMING, REVAMPING ITS APPROACH TO STRATEGIC PLANNING AND MOVING DOZENS OF ORGANIZATIONS TO IDENTIFY THEIR PROGRAM OUTCOMES AND BEGIN PROCESSES FOR MANAGING PERFORMANCE.-CRE CONTINUED TO HONE ITS OWN MEASURES OF PERFORMANCE AND TRANSITIONED ITS PROGRAM DATA BASE TO SALESFORCE, TO ALLOW A FULL BUILD-OUT FOR PERFORMANCE MANAGEMENT, INCLUDING ITS MEASUREMENT OF CLIENT OUTCOMES. 2515903 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 28 0 1 32 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 14 14 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NY X X X EVELYNE IZEOGU 2128943394 42 BROADWAY 20TH FLOOR NEW YORK NY 10004 PATRICIA HEWITT 2.00 X X 0 0 0 KEIKO IANTHE DELILLE 2.00 X X 0 0 0 CARLETON DUKESS 2.00 X X 0 0 0 BENJAMIN F LORICK 2.00 X X 0 0 0 PAMELA GREEN 2.00 X 0 0 0 RAYMOND D HORTON 2.00 X 0 0 0 ANNE HESS 2.00 X 0 0 0 MARGARET BOOTH 1.00 X 0 0 0 LAURIE O COURAGE 1.00 X 0 0 0 ROBYN BRADY INCE 1.00 X 0 0 0 JERRY H MARCUS 1.00 X 0 0 0 ROBERT C PENN 1.00 X 0 0 0 GELVIN STEVENSON 1.00 X 0 0 0 LARRY ZILAVY 1.00 X 0 0 0 VALYRIE LAEDLEIN 40.00 X 112588 0 13044 HOLLY DELANY-COLE 40.00 X 122898 0 11046 BARBARA TURK 40.00 X 115282 0 15757 350768 0 39847 3 0 0 0 DEVELOPMENT WITHOUT LIMITS 16 WEST 32ND STREET SUITE 10J NEW YORK NY 10001 PROG. AND ORG. DEVLP. TO CLIENTS 104202 1 53847 1098560 1963829 55083 3116236 MGMT. SUPPORT SERVICES 541610 525465 525465 RENTAL INCOME 900099 15575 15575 541040 22496 22496 1172000 1172000 0 0 41823 53847 41823 0 3679772 541040 0 22496 161855 161855 285815 209577 69991 6247 1485155 1088987 363698 32470 68983 50537 16915 1531 225341 165085 55253 5003 142957 104730 35053 3174 25500 25500 429196 314520 104676 10000 101162 80519 18937 1706 304281 257089 43274 3918 9431 5895 3536 31154 23426 7728 20686 15155 5072 459 STAFF LEADERSHIP DEVLP. 21469 21358 111 BAD DEBT 17170 17170 3330155 2515903 749744 64508 2200 2200 1177378 1465841 732183 639750 114320 161058 57598 45960 407062 264805 141458 142257 7842 1563361 1775898 6710 3589 3795208 4244395 149955 243593 21627 40079 171582 283672 X 3014239 2902569 609387 1058154 3623626 3960723 3795208 4244395 X 349617 -12520 X 0 1 1 X 0 X 2147924 3835026 2879063 2628938 3085736 14576687 2147924 3835026 2879063 2628938 3085736 14576687 1656179 12920508 109761 86934 64220 43773 22496 327184 14903871 3103326 0.86690 0.89260 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 199490 76024 123466 207572 188781 18791 142257 CERTIFICATES OF DEPOSIT 1775898 F 1775898 3679772 3330155 349617 -12520 -12520 337097 3667252 -12520 -12520 3679772 0 3679772 3330155 0 3330155 0 3330155 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: CRE'S CURRENT ACCOUNTING POLICY IS TO PROVIDE LIABILITIES FOR UNCERTAIN TAX POSITIONS WHEN A LIABILITY IS PROBABLE AND ESTIMABLE. MANAGEMENT IS NOT AWARE OF ANY VIOLATION OF ITS TAX STATUS AS AN ORGANIZATION EXEMPT FROM INCOME TAXES, NOR OF ANY EXPOSURE TO UNRELATED BUSINESS INCOME. ANNUAL HOUSE PARTY 19835 14000 5835 30TH ANNIVERSARY 75835 39847 35988 95670 53847 41823 41823 1 ST NICK'S ALLIANCE 11 CATHERINE STREET BROOKLYN NY 11211 510192170 501(C)3 60000 TO BE USED TOWARDS THE IMPLEMENTATION OF A NEW PERFORMANCE MANAGEMENT SYSTEM CAMBA 1720 CHURCH AVENUE BROOKLYN NY 11226 112480339 501(C)3 34855 TO BE USED TOWARDS THE IMPROVEMENT OF DATA COLLECTION AND PROGRAM EVALUATION INFRASTRUCTURE THE CHILD CENTER OF NEW YORK 60-02 QUEENS BLVD WOODSIDE NY 11377 111733454 501(C)3 50000 TO BE USED TOWARDS THE PURCHASE OF DATABASE SOFTWARE 3 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: WITH THE SUPPORT OF THIRD-PARTY FUNDERS, COMMUNITY RESOURCE EXCHANGE OPERATES A SMALL GRANT/RE-GRANT PROGRAM THAT SUPPLEMENTS ITS DELIVERY OF CAPACITY-BUILDING SERVICES. THESE GRANTS ARE INTENDED TO SUPPORT CLIENT ORGANIZATIONS' IMPLEMENTATION OF MANAGEMENT IMPROVEMENTS THAT STEM FROM THEIR WORK WITH CRE. SMALL GRANT AWARDS ARE ALL UNDER $5,000 AND, IN 2011, WERE SPECIFICALLY ISSUED TO URBAN ASSEMBLY SCHOOLS PARTICIPATING IN THE CRE'S FUNDRAISING INSTITUTE, FOR THE PURPOSES OF IMPLEMENTING FUND DEVELOPMENT ACTIVITIES SUCH AS DONOR CULTIVATION EVENTS OR DIRECT MAIL CAMPAIGNS. THE RE-GRANT AMOUNTS RANGE FROM $34,900 TO $60,000 AND SUPPORT THE PURCHASE OF HARDWARE AND SOFTWARE TO SUPPORT IMPLEMENTATION OF PERFORMANCE MANAGEMENT SYSTEMS AMONG THREE YOUTH-SERVING ORGANIZATIONS. TO MANAGE THESE PROGRAMS, CRE FOLLOWS A SET OF GUIDELINES WITH RESPECT TO: THE APPLICATION PROCESS; ELIGIBILITY OF APPLICANTS; RESTRICTIONS ON AWARD AMOUNTS; PROCESS FOR CRE STAFF REVIEW AND APPROVAL OF AWARDS; AND GRANTEE REPORTING REQUIREMENTS. GRANTEES ARE REQUIRED TO PROVIDE UPDATES ON THEIR ACTIVITIES AND SUBMIT A FINAL REPORT AFFIRMING THE USE OF THE GRANT AND ITS IMPACT ON THEIR ORGANIZATIONS. BASED ON THIS REPORTING PROCESS, CRE IN TURN REPORTS TO ITS FUNDERS ON THE USE OF THE FUNDS, INCLUDING GRANT RECIPIENTS, AMOUNTS OF THE GRANTS, AND HOW GRANT FUNDS WERE USED. X 4 55083 FAIR MARKET VALUE 0 0 0 FORM 990, PART VI, SECTION B, LINE 11 THE PROCESS USED BY COMMUNITY RESOURCE EXCHANGE, INC. TO REVIEW FORM 990 BEFORE FILING IS: 1. OUTSIDE AUDITING FIRM PREPARES CRE'S 990 ONCE FINANCIAL STATEMENTS ARE COMPLETED. 2. 990 IS REVIEWED BY MANAGEMENT AND AN ELECTRONIC DRAFT IS FORWARDED TO BOARD OF DIRECTORS FOR REVIEW AND COMMENTS. THE BOARD OF DIRECTORS IS GIVEN 2-5 BUSINESS DAYS TO REVIEW. 3. COMMENTS FROM THE BOARD OF DIRECTORS ARE FORWARDED TO AUDIT COMMITTEE. 4. AUDIT COMMITTEE MEETS WITH AUDITORS TO DISCUSS 990 AND ADDRESS COMMENTS OR RECOMMENDATIONS. 5. AUDIT COMMITTEE APPROVES 990 FOR FILING. 6. 990 IS FILED WITH IRS. FORM 990, PART VI, SECTION B, LINE 12C CRE REQUIRES ITS DIRECTORS, OFFICERS AND KEY EMPLOYEES TO DISCLOSE POTENTIAL CONFLICTS OF INTEREST TO THE BOARD CHAIR OR HER DESIGNEE PRIOR TO THE OPENING OF ANY NEGOTIATIONS OR DISCUSSIONS CONCERNING A TRANSACTION. IN ADDITION TO THIS CONTINUING OBLIGATION, INTERESTED PERSONS COVERED BY THE POLICY MUST AGAIN DISCLOSE POTENTIAL CONFLICTS FROM THE PREVIOUS YEAR AT THE END OF EACH FISCAL YEAR. ALL INTERESTED PERSONS COVERED BY THE POLICY MUST PREPARE A BRIEF LETTER DESCRIBING THE TRANSACTION, HIS OR HER INTEREST IN IT, AND WHY THE TRANSACTION IS IN THE BEST INTEREST OF CRE. THE TRANSACTION IS THEN REVIEWED CAREFULLY TO ENSURE THAT IT SHOULD BE ENTERED INTO. IF A CONFLICT OF INTEREST EXISTS, THE INTERESTED PARTY IS EXCLUDED FROM THE BOARD DISCUSSION AND APPROVAL OF SUCH TRANSACTIONS. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS USED BY CRE FOR DOCUMENTING COMPENSATION OF THE CO-DIRECTORS IS: 1. CRE HUMAN RESOURCES (HR) STAFF COMPILES A SURVEY ON COMPENSATION PAID BY SIMILARLY SITUATED ORGANIZATIONS FOR COMPARABLE POSITIONS AND PROVIDE THE DATA TO THE CRE HR BOARD HUMAN RESOURCES COMMITTEE. 2. THE BOARD HUMAN RESOURCES COMMITTEE REVIEWS THE COMPARABILITY DATA. 3. THE HUMAN RESOURCES COMMITTEE COMPARES THE PROPOSED SALARIES FOR THE EMPLOYEES WITH THE COMPARABLE DATA, DETERMINES THE REASONABLENESS OF THE PROPOSED COMPENSATION PACKAGE. IF THE COMMITTEE DETERMINED THE REASONABLE COMPENSATION IS HIGHER OR LOWER THAN THE RANGE OF COMPARABLE DATA OBTAINED, THEY ARTICULATE THE BASIS FOR THE DETERMINATION. 4. THE HUMAN RESOURCES COMMITTEE TAKES THE ITEM TO THE BOARD FOR APPROVAL. DOCUMENTATION INCLUDES: 1. LIST OF DIRECTORS AND OTHER KEY EMPLOYEES WITH THEIR RESPECTIVE COMPENSATION PACKAGE FOR UPCOMING FISCAL YEAR REVIEWED AND APPROVED BY THE HR COMMITTEE. 2. THE NAMES OF MEMBERS PRESENT DURING THE DISCUSSION ON THE ISSUE AND WHO VOTED ON IT. 3. COMPARABILITY DATA RELIED UPON BY THE BOARD PERSONNEL COMMITTEE AND HOW THE DATA WAS OBTAINED. 4. BASIS FOR THE DETERMINATION OF REASONABLENESS. FORM 990, PART VI, SECTION C, LINE 19 COMMUNITY RESOURCE EXCHANGE, INC. MAKES ITS FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC BY POSTING THEM ON ITS WEBSITE. IN ADDITION, CRE'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON WRITTEN REQUEST AT 42 BROADWAY, 20TH FLOOR, NEW YORK, NY 10004 OR BY CALLING (212) 894-3394. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -12,520. RESONABLE CAUSE STATEMENT: THIS RETURN IS BEING FILED BETWEEN MARCH 1, 2012 AND MARCH 30, 2012, AS DIRECTED BY THE IRS IN NOTICE 2012-4 BECAUSE ELECTRONIC FILING WAS NOT AVAILABLE JANUARY 1, 2012 THROUGH FEBRUARY 29, 2012. WE REQUEST THAT PENALTIES BE WAIVED BECAUSE IT WOULD BE INEQUITABLE TO IMPOSE A PENALTY ON US DUE TO THE UNUSUAL CIRCUMSTANCES REQUIRING US TO DELAY THE FILING OF THIS RETURN.