﻿<?xml version="1.0" encoding="utf-8"?>
<Return xmlns="http://www.irs.gov/efile" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://www.irs.gov/efile" returnVersion="2010v3.4">
  <ReturnHeader binaryAttachmentCount="0">
    <Timestamp>2012-04-27T09:13:18-05:00</Timestamp>
    <TaxPeriodEndDate>2011-06-30</TaxPeriodEndDate>
    <PreparerFirm>
      <PreparerFirmBusinessName>
        <BusinessNameLine1>FRUCHTER ROSEN &amp; COMPANY PC</BusinessNameLine1>
      </PreparerFirmBusinessName>
      <PreparerFirmUSAddress>
        <AddressLine1>156 WEST 56TH STREET STE 1804</AddressLine1>
        <City>NEW YORK</City>
        <State>NY</State>
        <ZIPCode>10019</ZIPCode>
      </PreparerFirmUSAddress>
    </PreparerFirm>
    <ReturnType>990EZ</ReturnType>
    <TaxPeriodBeginDate>2010-07-01</TaxPeriodBeginDate>
    <Filer>
      <EIN>331174065</EIN>
      <Name>
        <BusinessNameLine1>PROSPECT SCHOOLS INC</BusinessNameLine1>
      </Name>
      <NameControl>PROS</NameControl>
      <Phone>3478897041</Phone>
      <USAddress>
        <AddressLine1>500 19TH STREET</AddressLine1>
        <City>BROOKLYN</City>
        <State>NY</State>
        <ZIPCode>11215</ZIPCode>
      </USAddress>
    </Filer>
    <Officer>
      <Name>DANIEL RUBENSTEIN</Name>
      <Title>TRUSTEE</Title>
      <Phone>7189657950</Phone>
      <DateSigned>2012-04-27</DateSigned>
      <AuthorizeThirdParty>1</AuthorizeThirdParty>
    </Officer>
    <Preparer>
      <Name>GUS SALIBA</Name>
      <Phone>2129573600</Phone>
      <DatePrepared>2012-04-27</DatePrepared>
    </Preparer>
    <TaxYear>2010</TaxYear>
    <BuildTS>2016-02-24 21:20:13Z</BuildTS>
  </ReturnHeader>
  <ReturnData documentCount="6">
    <IRS990EZ documentId="RetDoc1234200001" referenceDocumentId="RetDoc10046300000 RetDoc1051800001">
      <AddressChange>X</AddressChange>
      <MethodOfAccountingAccrual>X</MethodOfAccountingAccrual>
      <WebSite>N/A</WebSite>
      <Organization501c3 referenceDocumentId="RetDoc1039100001">X</Organization501c3>
      <GrossReceipts>93775</GrossReceipts>
      <InfoInScheduleOPartI>X</InfoInScheduleOPartI>
      <ContributionsGiftsGrantsEtc>93341</ContributionsGiftsGrantsEtc>
      <InvestmentIncome>434</InvestmentIncome>
      <SpecialEventsDirectExpenses>4956</SpecialEventsDirectExpenses>
      <SpecialEventsNetIncomeLoss>-4956</SpecialEventsNetIncomeLoss>
      <TotalRevenue>88819</TotalRevenue>
      <FeesAndOthPymtToIndContractors>5060</FeesAndOthPymtToIndContractors>
      <OtherExpensesTotal>5625</OtherExpensesTotal>
      <TotalExpenses>10685</TotalExpenses>
      <ExcessOrDeficitForYear>78134</ExcessOrDeficitForYear>
      <NetAssetsOrFundBalancesBOY>129857</NetAssetsOrFundBalancesBOY>
      <OtherChangesInNetAssets>0</OtherChangesInNetAssets>
      <NetAssetsOrFundBalancesEOY>207991</NetAssetsOrFundBalancesEOY>
      <InfoInScheduleOPartII>X</InfoInScheduleOPartII>
      <CashSavingsAndInvestments>
        <BOY>173128</BOY>
        <EOY>212891</EOY>
      </CashSavingsAndInvestments>
      <OtherAssetsTotal>
        <BOY>0</BOY>
        <EOY>100</EOY>
      </OtherAssetsTotal>
      <TotalAssets>
        <BOY>173128</BOY>
        <EOY>212991</EOY>
      </TotalAssets>
      <SumOfTotalLiabilities>
        <BOY>43271</BOY>
        <EOY>5000</EOY>
      </SumOfTotalLiabilities>
      <NetAssetsOrFundBalances>
        <BOY>129857</BOY>
        <EOY>207991</EOY>
      </NetAssetsOrFundBalances>
      <InfoInScheduleOPartIII>X</InfoInScheduleOPartIII>
      <PrimaryExemptPurpose>PROSPECT SCHOOLS, INC. IS A NOT-FOR-PROFIT ORGANIZATION FOUNDED TO SUPPORT THE START-UP AND GROWTH OF BROOKLYN PROSPECT CHARTER SCHOOL.</PrimaryExemptPurpose>
      <ProgramServiceAccomplishment>
        <DescriptionProgramServiceAccom>PROSPECT SCHOOLS, INC.'S PURPOSE IS TO RAISE FUNDS AND SUPPORT BROOKLYN PROSPECT CHARTER SCHOOL.</DescriptionProgramServiceAccom>
        <GrantsAndAllocations>0</GrantsAndAllocations>
        <ProgramServiceExpenses>714</ProgramServiceExpenses>
      </ProgramServiceAccomplishment>
      <TotalProgramServiceExpenses>714</TotalProgramServiceExpenses>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName>LUYEN CHOU</PersonName>
        <AddressUS>
          <AddressLine1>500 19TH STREET</AddressLine1>
          <City>BROOKLYN</City>
          <State>NY</State>
          <ZIPCode>11215</ZIPCode>
        </AddressUS>
        <Title>TRUSTEE</Title>
        <AvgHoursPerWkDevotedToPosition>1.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
        <ContriToEmplBenefitPlansEtc>0</ContriToEmplBenefitPlansEtc>
        <ExpenseAccountOtherAllowances>0</ExpenseAccountOtherAllowances>
      </OfficerDirectorTrusteeKeyEmpl>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName>DANIEL RUBENSTEIN</PersonName>
        <AddressUS>
          <AddressLine1>500 19TH STREET</AddressLine1>
          <City>BROOKLYN</City>
          <State>NY</State>
          <ZIPCode>11215</ZIPCode>
        </AddressUS>
        <Title>TRUSTEE</Title>
        <AvgHoursPerWkDevotedToPosition>1.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
        <ContriToEmplBenefitPlansEtc>0</ContriToEmplBenefitPlansEtc>
        <ExpenseAccountOtherAllowances>0</ExpenseAccountOtherAllowances>
      </OfficerDirectorTrusteeKeyEmpl>
      <OfficerDirectorTrusteeKeyEmpl>
        <PersonName>PEARL ROCK KANE</PersonName>
        <AddressUS>
          <AddressLine1>500 19TH STREET</AddressLine1>
          <City>BROOKLYN</City>
          <State>NY</State>
          <ZIPCode>11215</ZIPCode>
        </AddressUS>
        <Title>TRUSTEE</Title>
        <AvgHoursPerWkDevotedToPosition>1.00</AvgHoursPerWkDevotedToPosition>
        <Compensation>0</Compensation>
        <ContriToEmplBenefitPlansEtc>0</ContriToEmplBenefitPlansEtc>
        <ExpenseAccountOtherAllowances>0</ExpenseAccountOtherAllowances>
      </OfficerDirectorTrusteeKeyEmpl>
      <InfoInScheduleOPartV>X</InfoInScheduleOPartV>
      <ActivitiesNotPreviouslyRpt>0</ActivitiesNotPreviouslyRpt>
      <MadeChangesToOrgnzngEtcDoc>0</MadeChangesToOrgnzngEtcDoc>
      <OrganizationHadUBI>0</OrganizationHadUBI>
      <OrganizationDissolvedEtc>0</OrganizationDissolvedEtc>
      <DirectIndirectPoliticalExpend>0</DirectIndirectPoliticalExpend>
      <MadeLoansToFromOfficers>0</MadeLoansToFromOfficers>
      <TaxImposedUnderIRC4911>0</TaxImposedUnderIRC4911>
      <TaxImposedUnderIRC4912>0</TaxImposedUnderIRC4912>
      <TaxImposedUnderIRC4955>0</TaxImposedUnderIRC4955>
      <EngagedInExcessBenefitTrans>0</EngagedInExcessBenefitTrans>
      <AmountOfTaxImposedOnOrgMgr>0</AmountOfTaxImposedOnOrgMgr>
      <AmountOfTaxReimbursedByOrg>0</AmountOfTaxReimbursedByOrg>
      <ProhibitedTaxShelterTrans>0</ProhibitedTaxShelterTrans>
      <StatesWhereCopyOfReturnIsFiled>NY</StatesWhereCopyOfReturnIsFiled>
      <TheBooksAreInCareOf>
        <NameBusiness>
          <BusinessNameLine1>HILLARY BROWN</BusinessNameLine1>
        </NameBusiness>
        <AddressUS>
          <AddressLine1>500 19TH STREET</AddressLine1>
          <City>BROOKLYN</City>
          <State>NY</State>
          <ZIPCode>11215</ZIPCode>
        </AddressUS>
        <TelephoneNumber>3478897041</TelephoneNumber>
      </TheBooksAreInCareOf>
      <ForeignFinancialAccount>0</ForeignFinancialAccount>
      <ForeignOffice>0</ForeignOffice>
      <MaintainAnyDonorAdvisedFunds>0</MaintainAnyDonorAdvisedFunds>
      <DoesOrgHaveHospital>0</DoesOrgHaveHospital>
      <TanningServicesProvided>0</TanningServicesProvided>
      <RelatedOrgControlledEntity>0</RelatedOrgControlledEntity>
      <TransactionWithControlEntity>0</TransactionWithControlEntity>
      <EngagePoliticalCmpgnActivities>0</EngagePoliticalCmpgnActivities>
      <EngageInLobbyingActivities>0</EngageInLobbyingActivities>
      <OperatingSchool>0</OperatingSchool>
      <TrnsfrsExemptNonCharRelatedOrg>0</TrnsfrsExemptNonCharRelatedOrg>
      <PartVIOfCompOfHighestPaidEmpl>NONE</PartVIOfCompOfHighestPaidEmpl>
      <PartVIAHghstPaidCntrctProfSer>NONE</PartVIAHghstPaidCntrctProfSer>
      <FiledScheduleA>1</FiledScheduleA>
    </IRS990EZ>
    <IRS990ScheduleA documentId="RetDoc1039100001">
      <PubliclySupportedOrg170b1Avi>X</PubliclySupportedOrg170b1Avi>
      <GiftsGrantsContribReceived170>
        <CurrentTaxYearMinus2Years>74807</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>67228</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>68897</CurrentTaxYear>
        <Total>210932</Total>
      </GiftsGrantsContribReceived170>
      <Total170>
        <CurrentTaxYearMinus2Years>74807</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>67228</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>68897</CurrentTaxYear>
        <Total>210932</Total>
      </Total170>
      <PublicSupportTotal170>210932</PublicSupportTotal170>
      <GrossInvestmentIncome170>
        <CurrentTaxYearMinus2Years>12</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>255</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>434</CurrentTaxYear>
        <Total>701</Total>
      </GrossInvestmentIncome170>
      <TotalSupport>211633</TotalSupport>
      <First5Years170>X</First5Years170>
    </IRS990ScheduleA>
    <IRS990ScheduleB documentId="RetDoc1234500001">
      <ContributorInfo>
        <ContributorNumber>RESTRICTED</ContributorNumber>
        <ContributorNameBusiness>
          <BusinessNameLine1>RESTRICTED</BusinessNameLine1>
        </ContributorNameBusiness>
        <ContributorAddressUS>
          <AddressLine1>RESTRICTED</AddressLine1>
          <AddressLine2>RESTRICTED</AddressLine2>
          <City>RESTRICTED</City>
          <State>RESTRICTED</State>
          <ZIPCode>RESTRICTED</ZIPCode>
        </ContributorAddressUS>
        <AggregateContributions>RESTRICTED</AggregateContributions>
      </ContributorInfo>
    </IRS990ScheduleB>
    <IRS990ScheduleG documentId="RetDoc1041300001">
      <EventsInformation>
        <NameOfEvent1>SPRING EVENT</NameOfEvent1>
        <GrossReceiptsEvent1>24191</GrossReceiptsEvent1>
        <CharitableContributionsEvent1>24191</CharitableContributionsEvent1>
        <RentFacilityCostsEvent1>500</RentFacilityCostsEvent1>
        <FoodAndBeverageEvent1>4100</FoodAndBeverageEvent1>
        <EntertainmentEvent1>100</EntertainmentEvent1>
        <OtherDirectExpensesEvent1>762</OtherDirectExpensesEvent1>
        <GrossReceiptsTotal>24191</GrossReceiptsTotal>
        <CharitableContributionsTotal>24191</CharitableContributionsTotal>
        <RentFacilityCostsTotalEvents>500</RentFacilityCostsTotalEvents>
        <FoodAndBeverageTotalEvents>4100</FoodAndBeverageTotalEvents>
        <EntertainmentTotalEvents>100</EntertainmentTotalEvents>
        <OtherDirectExpensesTotalEvents>762</OtherDirectExpensesTotalEvents>
        <DirectExpenseSummaryEvents>5462</DirectExpenseSummaryEvents>
        <NetIncomeSummary>-5462</NetIncomeSummary>
      </EventsInformation>
    </IRS990ScheduleG>
    <IRS990ScheduleO documentId="RetDoc1051800001">
      <GeneralExplanation>
        <Identifier>OTHER INVESTMENT INCOME</Identifier>
        <ReturnReference>FORM 990-EZ, PART I, LINE 4</ReturnReference>
        <Explanation>INTEREST INCOME 434..</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>OTHER EXPENSES</Identifier>
        <ReturnReference>FORM 990-EZ, PART I, LINE 16</ReturnReference>
        <Explanation>DESCRIPTION: OFFICE EXPENSE. AMOUNT: 4,272. DESCRIPTION: MISCELLANEOUS EXPENSES. AMOUNT: 1,353. TOTAL TO FORM 990-EZ, LINE 16: 5,625.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>OTHER ASSETS</Identifier>
        <ReturnReference>FORM 990-EZ, PART II, LINE 24</ReturnReference>
        <Explanation>DESCRIPTION: CONTRIBUTIONS RECEIVABLE. BEG. OF YEAR AMOUNT: 0. END OF YEAR AMOUNT: 100.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>OTHER LIABILITIES</Identifier>
        <ReturnReference>FORM 990-EZ, PART II, LINE 26</ReturnReference>
        <Explanation>DESCRIPTION: DUE TO AFFILIATE. BEG. OF YEAR AMOUNT: 38,271. END OF YEAR AMOUNT: 0. DESCRIPTION: ACCOUNTS PAYABLE AND ACCRUED EXPENSES. BEG. OF YEAR AMOUNT: 5,000. END OF YEAR AMOUNT: 5,000.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <TransferPrsnlBnftContractsDecl documentId="RetDoc10046300000">
      <Declaration>THE ORGANIZATION DID NOT, DURING THE YEAR, RECEIVE ANY FUNDS, DIRECTLY,OR INDIRECTLY, TO PAY PREMIUMS ON A PERSONAL BENEFIT CONTRACT.THE ORGANIZATION, DID NOT, DURING THE YEAR, PAY ANY PREMIUMS, DIRECTLY,OR INDIRECTLY, ON A PERSONAL BENEFIT CONTRACT.</Declaration>
    </TransferPrsnlBnftContractsDecl>
  </ReturnData>
</Return>