2012-05-15T15:41:49-05:00 2011-06-30 GRANT THORNTON LLP 666 THIRD AVENUE NEW YORK NY 100174011 990 2010-07-01 237112974 THE HARLEM CHILDREN'S ZONE HARL 2123603255 35 East 125th Street New York NY 10035 Tracey Costello 2012-05-02 Scott Thompsett 2125990100 2010 2016-02-24 21:20:13Z GEOFFREY CANADA 35 EAST 125TH STREET NEW YORK NY 10035 315622355 false X WWW.HCZ.ORG X 1970 NY HARLEM CHILDREN'S ZONE, INC. IS A PIONEERING, NON-PROFIT COMMUNITY- BASED ORGANIZATION THAT WORKS TO ENHANCE THE QUALITY OF LIFE FOR CHILDREN AND FAMILIES IN NYC'S MOST DEVASTATED NEIGHBORHOODS. 18 17 2789 0 0 0 68937438 208098844 1149862 0 -4110449 5614163 49512 -85388 66026363 213627619 3148149 3764787 0 0 49887149 57408889 1032 4955 1660063 15479729 17267913 68516059 78446544 -2489696 135181075 192896560 361267321 13073993 44513307 179822567 316754014 X HARLEM CHILDREN'S ZONE, INC. ("HCZ"), FOUNDED IN 1970, IS A PIONEERING, NON-PROFIT COMMUNITY-BASED ORGANIZATION THAT WORKS TO ENHANCE THE QUALITY OF LIFE FOR CHILDREN AND FAMILIES IN SOME OF NEW YORK CITY'S MOST DEVASTATED NEIGHBORHOODS. FORMERLY KNOWN AS RHEEDLEN CENTERS FOR CHILDREN AND FAMILIES, HCZ'S 20 CENTERS SERVE CHILDREN AND ADULTS, INCLUDING AT-RISK CHILDREN. THE EMPHASIS OF HCZ'S WORK IS NOT JUST ON EDUCATION, SOCIAL SERVICE, AND RECREATION, BUT ALSO ON REBUILDING THE VERY FABRIC OF COMMUNITY LIFE. false false 58008944 1991380 0 HCZ's primary program is its Harlem Children's Zone Project, a unique, holistic approach to rebuilding a community so that its children can stay on track through college and go on to the job market. The two fundamental principles of The Zone Project are to help kids in a sustained way, starting as early in their lives as possible, and to create a critical mass of adults around them who understand what it takes to help children succeed. The HCZ Project began as a one-block pilot in the 1990s, then following a 10-year business plan, it expanded to 24 blocks, then 60 blocks, then ultimately 97 blocks. The budget for the HCZ Project for fiscal year 2010 is over $48 million, costing an average of $5,000 per child. Like all HCZ programs, those of the HCZ Project are provided to children and families absolutely free of charge. The Harlem Children's Zone Project is a vastly ambitious program. The organization has provided a copy of its extensive business plan on its website at http://www.hcz.org/images/stories/pdfs/business_plan.pdf. 7854771 457976 0 Beacon and After School Youth Services - The Beacon Program turns public school buildings into community centers that provide safe, enriching programs for children and adults. The Beacons have the same holistic approach to the Harlem Children's Zone Project in their "whatever it takes" approach to meeting the needs of the surrounding community. HCZ's Countee Cullen Beacon on 144th Street serves 850 children and 519 adults a year. The Booker T. Washington Beacon on 108th street serves 748 children and 460 adults. To deepen our relationship with our children and families, the Beacons have launched two major initiatives. The first deepens HCZ's relationship with our middle school parents, engaging them in their children's academic lives and partnering with them as their children approach college age. The second initiative is part of an agency-wide effort, the Academic Case Management approach, working with children from fifth grade and up. Each child is assigned a staff person that monitors their school progress as well as their development, providing assistance where needed. The case manager works with a student's public school teacher and ensures that they get appropriate afterschool tutoring. The Harlem Children's Zone Community Center, based in our 125th Street building, offers a wide variety of after-school programs and special events for children and adults. It also added two satellite programs at public housing projects in the Zone. 5437809 0 0 Foster Care & Other Preventive Services - Harlem Children's Zone has five foster care preventive programs that intervene with families in crisis to help them stay whole. The programs work with families that have been referred to the HCZ from the city, as well as helping people who walk into the offices that need immediate assistance. The Preventive programs have begun to take on new responsibilities and change the way HCZ works as a result of the new improved outcomes for children initiative from the city's administration for children's services. For example, HCZ now holds family conferences every six months which empowers families and gives them more of a voice in the process and allows staff to determine the direction of our casework. 1831592 0 0 Head start program 1831592 0 0 73133116 true true false false false false false true true true true false false true true false true false false true false false false true false false false true true false false false false false true false true false false false false true true false false false false true 54 0 true 2789 true false false false false false true true false false false false X 18 17 false false false false false false false true true false false true true true true true true true true false NY X X TRACEY COSTELLO 2123603255 35 EAST 125TH STREET NEW YORK NY 10035 Geoffrey Canada 40.0 X X 380713 0 88901 Stanley F Druckenmiller 1.0 X X 0 0 0 Mitch Kurz 1.0 X X 0 0 0 Matthew C Blank 1.0 X X 0 0 0 Wallis Anenberg 1.0 X 0 0 0 Gary Cohn 1.0 X 0 0 0 Zoe Cruz 1.0 X 0 0 0 Joseph DiMenna 1.0 X 0 0 0 Joe Gregory 1.0 X 0 0 0 mark Kingdon 1.0 X 0 0 0 Kenneth G Langone 1.0 X 0 0 0 Sue Lehmann 1.0 X 0 0 0 Marshall Lux 1.0 X 0 0 0 Richard perry 1.0 X 0 0 0 Laura samberg 1.0 X 0 0 0 Stephen Squeri 1.0 X 0 0 0 Jeffrey Swartz 1.0 X 0 0 0 Caroline Turner 1.0 X 0 0 0 Mindy Miller 40.0 X 267401 0 150655 George Khaldun 40.0 X 264742 0 142597 Anne Williams-Isom 40.0 X 187252 0 76420 Tracey Costello 40.0 X 238928 0 116152 Betina Jean Louis 40.0 X 178107 0 68709 Katherine Shoemaker 40.0 X 171496 0 77890 Conrad Pinnock 40.0 X 157893 0 87875 Gerald Lewis 40.0 X 151999 0 62388 Martin Lipp 40.0 X 137531 0 101555 2136062 0 973142 21 false true false MATHEMATICA POLICY RESEARCH PO BOX 2393 PRINCETON NJ 08543 EVALUATIONS 503220 COOKE CENTER FOR LEARNING 475 RIVERSIDE DRIVE SUITE 730 NEW YORK NY 10115 CHILD EVALUATIONS 407858 HARLEM JUNIOR TENNIS EDUCATION 40 WEST 143RD STREET NEW YORK NY 10037 TENNIS INSTRUCTION 214003 FORCES OF NATURE INC 230 LENNOX AVENUE NEW YORK NY 10027 DANCE CLASSES 208045 Grant Thornton LLP 33570 Treasury Center CHICAGO IL 60694 Accounting/Audit 215119 7 6504232 10134793 191459819 208098844 0 203243 203243 0 0 107068196 101657276 5410920 5410920 5410920 144695 6504232 337460 -192765 -192765 0 0 REIMBURSED INSURANCE PROCEEDS 900099 5196 5196 MISCELLANEOUS INCOME 900099 102181 102181 107377 213627619 0 5528775 0 3764787 3764787 0 0 1288862 1227413 27335 34114 0 43916795 41822976 931425 1162394 802906 750270 21931 30705 6741818 6466781 151691 123346 4658508 4484390 103766 70352 0 11893 11893 242138 242138 0 4955 4955 0 2877279 2771608 76304 29367 0 557618 460244 96676 698 309054 198889 9482 100683 0 4149948 3290894 859054 948895 858296 55300 35299 0 0 0 0 1480100 1080478 390137 9485 205010 171523 28954 4533 FOOD 2179833 2139737 36746 3350 EQUIPMENT RENTAL & MAINT. 1380561 961728 416296 2537 EDUCATION SUPPLIES 602950 602838 0 112 TELEPHONE 492883 461774 21752 9357 ADMISSIONS 486069 486069 0 0 1343682 1132421 172485 38776 78446544 73133116 3653365 1660063 2120394 2002953 11448010 16895379 2936888 131478625 205453 5196 781713 744056 70095837 10464015 43083509 59631822 131922081 149987927 398512 521363 192896560 361267321 4005969 7713128 0 25760854 9068024 11039325 13073993 44513307 X 178297567 195047860 1525000 121706154 179822567 316754014 192896560 361267321 X 135181075 1750372 X false true true X true true X 68723455 61473685 75427826 68937438 208098844 482661248 68723455 61473685 75427826 68937438 208098844 482661248 148223581 334437667 340899 467909 179705 94642 203243 1286398 0 0 0 0 0 0 132110 150280 135553 367573 252072 1037588 484985234 1149862 0.68958 0.72683 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true 131922081 1805293 6886368 0 140613742 124566150 11471516 87669 4203254 131922081 101517597 19310236 7254672 3516355 124566150 1.00000 false false 0 48935464 6239463 42696001 0 7193520 1325982 5867538 0 3491920 2898570 593350 0 10474933 0 10474933 59631822 LIMITED PARTNERSHIP INV. 149987927 F 149987927 0 DEFERRED COMPENSATION PAYABLE 4767261 DUE TO RELATED PARTY 6272064 11039325 213627619 78446544 135181075 1750372 1750372 136931447 217728173 1750372 2350182 4100554 213627619 213627619 80796726 2350182 2350182 78446544 78446544 Schedule D, part V The Harlem Children's Zone's endowment is intended to support the organization's social, cultural and educational programs (as described in Part III of the Form 990 and to fund executive profit-sharing plans. HCZ had adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding while seeking to maintain the purchasing power of the endowment assets. Fin 48 The Organization follows guidance that clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a tax return, including issues relating to financial statement recognition and measurement. This guidance provides that the tax effects from an uncertain tax position can be recognized in the financial statements only if the position is "more-likely-than-not" to be sustained if the position were to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. Management determined that there are no uncertain tax positions within its financial statements. The Organization is exempt from federal income taxation by virtue of being an organization described in Section 501(c)(3) of the Internal Revenue Code. Nevertheless, the Organization may be subject to tax on income unrelated to its exempt purpose, unless that income is otherwise excluded by the Code. The tax years ending June 30, 2008, 2009, 2010 and 2011 are still open to audit for both federal and state purposes. Management has determined that there are no uncertain tax positions within its consolidated financial statements. Form 990, Schedule D, Part IV During the year ended June 30, 2011, the Harlem Children's Zone entered into agreements for the construction of a new charter school (the School Project). The agreements provided that the New York School Construction Authority contribute up to $60,000,000 towards the School Project, with the estimates balance of approximately $40,000,000 to be contributed by the Organiztaion or other donors. Upon completion of construction and issuance of the certificate of occupancy, title to the School Project will be transferred to the New York City Department of Education and leased back to the Harlem Children's Zone. Harlem Children's Zone is accounting for this arrangement as an agency transaction on behalf of the School as the School will be the ultimate beneficiary of the School Project. Central America and the Caribbean Investments 149987927 149987927 149987927 true false false true false Form 990, Schedule F The Harlem Children's Zone invests in foreign investments that may own an interest in a foreign corporation, passive foreign investment company, or foreign partnership. Nevertheless, the Harlem Children's Zone's investment in these partnerships may not reach the thresholds required for filing the Forms 926, 8621 or 8865. AWARD DINNER 6648927 6504232 144695 213138 124322 0 6648927 6504232 144695 213138 124322 337460 -192765 true Educational Stipends 24000 2449356 HCZ Incentive Program 700 1315431 Schedule I, part III The Need in Central Harlem: The odds are stacked against our children and families. Children in poverty do not have the opportunity to develop to their full potential. Inequality disadvantages them in every aspect of their lives: they are less healthy, less educated, and more likely to enter into prison than more affluent children. The cumulative impact of a community in crisis can have resounding affects on a child, putting them at a severe disadvantage on their pathways to productive adult lives. Poor children, particularly those of color, do significantly worse academically than their middle class counterparts. The Economic Policy Institute reported a substantial difference by race and ethnicity in children's academic test scores, with the disparity already showing up in kindergarten. Students who do poorly in school often end up drifting into anti-social behavior. A Black boy born in 2001 has a 1 in 3 chance of going to prison in his lifetime, and a Latino boy a 1 in 6 chance. In Central Harlem, our youth must overcome significant barriers along their pathway to adulthood. At the Harlem Children's Zone, we have set up a seamless system of support from the time a child is born to the time that child finishes college, implementing best practices at every stage. This seamless system of support includes a pipeline of program services providing academic tutoring, health and nutrition lessons, fitness programs, such as karate and dance, and media and technology programs to help students increase their knowledge and computer proficiency to perform well in school. To ensure consistent participation, we offer modest educational stipends to encourage regular and consistent attendance to ensure students, ages 10 to 18, receive the maximum impact of our programs. HCZ acknowledges that our students must give up part-time jobs to participate in our programs. The stipends help to off-set some of the financial loss our students might experience by foregoing part-time jobs and prevent them from having to make a choice between work and supplemental academic activities. Educational stipends are determined based on program attendance and punctuality, student grades, and student conduct. Education stipends are distributed twice monthly by the fiscal office. The second program disclosed on Schedule I is a program to reward the organization's graduating High School Seniors. Harlem Children's Zone offers a $1,000 incentive scholarship. These Seniors have actively participated in HCZ College Prep programs and are currently enrolled in a College. The incentives payments are only made in the form of a laptop or a direct scholarship payment made directly to their college on their behalf. As noted, some of the gifts are non-cash payments (in the form of laptops); however, for Schedule I purposes, bifurcating cash vs. non-cash payments is administratively difficult. All scholarships and stipends disbursed are required to be used to further the student's educational career; no further monitoring of the funds is undertaken by HCZ once the stipends or scholarships are granted to the student. Since scholarship amounts are remit directly to the College (and the student has no discretion on how the funds are spent), no monitoring of these payments is required. X X X false true false false false false false true false Geoffrey Canada 225000 0 155713 0 0 0 88901 0 0 0 469614 0 155713 0 Mindy Miller 217401 0 50000 0 0 0 133901 0 16754 0 418056 0 50000 0 George Khaldun 146427 0 118315 0 0 0 121401 0 21196 0 407339 0 118315 0 Anne Williams-Isom 162252 0 25000 0 0 0 69391 0 7029 0 263672 0 25000 0 Tracey Costello 133533 0 105395 0 0 0 96080 0 20072 0 355080 0 0 Betina Jean Louis 111988 0 66119 0 0 0 61680 0 7029 0 246816 0 66119 0 Katherine Shoemaker 151496 0 20000 0 0 0 56695 0 21196 0 249387 0 20000 0 Conrad Pinnock 127893 0 30000 0 0 0 80846 0 7029 0 245768 0 30000 0 Gerald Lewis 93720 0 58279 0 0 0 55359 0 7029 0 214387 0 58729 0 Martin Lipp 107531 0 30000 0 0 0 80359 0 21196 0 239086 0 30000 0 Schedule J, LIne 4(b) Harlem Children's Zone has a Section 457(f) plan that all members of senior management participate in. This Growth Fund Plan is a tax-deferred employee savings plan for directors, principals and senior staff. Harlem Children's Zone makes an annual deposit into the plan that is valued at 150% of the individual employee's bonus for the current year. The employee accumulates income on the investments in the No Margin Senior Growth Fund (which is managed by Duquesne Management); after five years, the employee starts to receive payouts. For calendar year 2010, employees received a payout and those amounts have been recorded in Schedule J, column (b)(ii) and in column (f). Schedule J, Line 7 Harlem Children's Zone provides annual performance bonuses to its employees. The bonuses are determined and approved by the President and CEO, Geoffrey Canada. Bonuses are approved in June and paid out in July (which is the following fiscal year). For 990 reporting purposes, these bonuses are reported as deferred compensation in the year that they are approved and current compensation once they hit the employees W-2 in the following year. Bonuses deferred in the prior year and paid out on the calendar year 2010 Form W-2 are reflected in Schedule J, Column (B)(II) and Column (F). Stanley Druckenmiller Chairman of the board 2350182 See schedule O false Schedule L, Part IV Stanley Druckenmiller, Chairman of the Board, runs a hedge fund, the No-Margin Fund, in which the Harlem Children Zone invests. Neither Mr. Druckenmiller nor the Fund charge the Harlem Children's Zone any management, advisory or supervisory fees for managing the organization's portfolio. Nevertheless, the value of these contributed services is approximately $2,350,182. Additionally, in the interests of full disclosure, the Harlem Children's Zone is disclosing that several board members manage or run private foundations that do make grants to the Harlem Children's Zone. For the year ending June 30, 2011, the organization received the following grants: $500,000 - from the Annenberg Foundation (Board member - Wallis Annenberg). OTHER PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4D HEAD START PROGRAM - AN EARLY CHILDHOOD EDUCATION PROGRAM THAT SERVES 57 THREE-TO-FIVE-YEAR-OLD CHILDREN, AND PREPARes THEM TO ENTER KINDERGARTEN READY TO LEARN. Policies FORM 990, PART VI, QUESTION 11 Line 11 - The Form 990 was prepared by a nationally renowned accounting firm in conjunction with the organization's financial department. A copy of the draft Form 990 was circulated to the finance committee for discussion and comment. Each finance committee Member was provided ample opportunity to comment on the information contained in the 990 prior to its filing with the Internal Revenue Service. The finance committee will summarize its finding on the Form 990 to the full board of directors. Line 12 - All employees are expected to use honesty, good judgement and high ethical standards in all professional dealings. All employees must avoid any actions that could create a conflict of interest or the appearance of such a conflict or reflect unfavorably on them or on harlem children's zone. An employee must disclose if she/he or an immediate family member has any potential conflict of interest such as a relationship to a third party vendor who seeks or has a business relationship to harlem children's zone. An employee's violation of this policy, especially a failure to represent accurately his or her connection or action on behalf of harlem children's zone and a third party will constitute grounds for disciplinary action, up to and including termination of employment. Line 15 - The organization undertakes a thorough process to ensure that the executive compensation it pays to its top management official and all of its officers and key employees of organization is reasonable given the market in which the organization operates. In relevant part, the Board of Directors has established a Compensation Committee of independent persons that have no personal interest in the proposed compensation agreement. The Compensation committee contracts with a compensation consultant to complete a market assessment and competitive position analysis for the College's top executives. The compensation consultant utilizes comparability and benchmarking surveys to ensure that the College compensates its executives commensurate with the market. The compensation committee will then set the compensation for the relevant executive and document the decision in board minutes. Disclosure FORM 990, PART VI Line 19 - The taxpayer makes its Form 990 available to the public by retaining a copy at its place of business. The Form 990 is likewise published on the internet at www.guidestar.org. The organization's financial statements, governing documents and conflict of interest policy are not ordinarily made available to the public, but, if requested, will be provided at management's discretion. Form 990, Part IV, line 4 The Harlem Children's Zone does not undertake any lobbying activities. President and CEO, Geoffrey Canada is a very prominent individual in the community and he may undertake advocacy efforts that have ancillary benefits to the Harlem Children's Zone. Mr. Canada's advocacy efforts, to the extent there are any, are undertaken at his own behest and are funded from his own personal finances; the Harlem Children's Zone does not subsidize those efforts. Reconciliation of Net Assets Part XI, Line 5 unrealized gain on investments 1,750,372 Rheedlen 125th Street LLC 35 EAST 125TH STREET New York NY 10035 Hold property NY 0 0 Harlem Child HCZ Promise LLC 35 east 125th Street New York NY 10035 272392634 Hold Property NY 0 0 Harlem Child HCZ PROMISE ACADEMY CHARTER SCHOOL 35 EAST 125TH STREET NEW YORK NY 10035 760756768 EDUCATION NY 501(c)(3) 2 false HCZ PROMISE ACADEMY II CHARTER SCHOOL 35 EAST 125TH STREET NEW YORK NY 10035 342049530 EDUCATION NY 501(c)(3) 2 false false true false false false false false false false false true false true true false false false false Schedule R, Related Party Transactions Pursuant to the terms of a commitment letter between Harlem Children's Zone (HCZ) and the Charter Schools, HCZ committed to provide the Schools, during the initial five year term of their charters, certain services at no costs. These services include financial management, social, library, technology, fundraising, public relations and teaching assistance services, In addition, HCZ is committed to providing the Schools with the use of space at its premises located at 35 East 125th Street, New York, New York.