2011-05-09T14:13:58-05:00 2010-12-31 O'CONNOR DAVIES MUNNS & DOBBINS LLP ONE STAMFORD LANDING STAMFORD CT 06902 990 2010-01-01 263618722 PENCILS OF PROMISE INCORPORATED PENC 2127773170 17 MEADOW PLACE OLD GREENWICH CT 06870 RAHUL TEJWANI 2127773170 2011-05-09 1 ROBIN STRONG 2033232400 2010 2016-02-24 21:20:13Z ADAM BRAUN 17 MEADOW PLACE OLD GREENWICH CT 06870 1451135 0 X WWW.PENCILSOFPROMISE.ORG X 2008 CT PENCILS OF PROMISE BUILDS SCHOOLS IN THE DEVELOPING WORLD AND TRAINS YOUNG LEADERS TO TAKE ACTION AT HOME AND ABROAD. 10 10 7 25 0 0 57765 1396917 0 0 0 12 27100 29899 84865 1426828 28330 112576 0 0 0 113974 0 0 31413 13946 210942 42276 437492 42589 989336 82936 1081446 4000 13174 78936 1068272 X SEE SCHEDULE O 0 0 321418 112576 SCHOOL BUILDS: IN 2010, PROGRAM SERVICES INCLUDED PLANNING, BUILDING AND COMPLETING 20 NEW SUSTAINABLE SCHOOLS ACROSS LAOS AND NICARAGUA AS WELL AS ESTABLISHING AND SETTING UP OPERATIONS FOR EXPANSION IN GUATEMALA IN 2011. POP ALSO DEVELOPED, PILOTED AND CONTINUED TO REFINE ITS S.H.I.N.E. PROGRAM THAT TEACHES SCHOOL COMMUNITIES THE IMPORTANCE OF HEALTH, NUTRITION AND THE ENVIRONMENT. 62815 YOUTH & PROFESSIONAL INITIATIVES: POP CONTINUED ITS WORK IN THE YOUTH AND PROFESSIONAL COMMUNITIES THROUGH A SUCCESSFUL YEAR ROUND INTERNSHIP PROGRAM INVOLVING 50 DIFFERENT STUDENTS, THE LAUNCH OF MORE THAN 250 STUDENT-LED INITIATIVES, A NEWLY INITIATED CLASS ROOM PASSPORT PROGRAM THAT PAIRS U.S. SCHOOLS WITH OUR SCHOOLS IN LAOS FOR A VIRTUAL CLASSROOM CULTURAL EXCHANGE, SPECIAL EVENTS HOSTED AT LOCATIONS ACROSS THE WORLD, AN ENTIRELY REVAMPED WEBSITE, AND BY EFFECTIVELY UTILIZING ALL SPHERES OF THE DIGITAL SOCIAL MEDIA SPACE. 384233 1 1 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 1 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 1 0 0 7 1 0 0 0 0 0 0 0 0 X 10 10 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 1 1 1 1 0 AK AR CA CO CT HI IL KS MA MD ME MI MN NC ND NJ NM NY OH PA SC TN VA WA WI X X X TOM CASAZZONE 2127773170 195 CHRYSTIE STREET SUITE 401A NEW YORK NY 10002 ADAM BRAUN 60.00 X X 59100 0 1653 LIBBIE FRITZ 1.00 X 0 0 0 JENNIFER WILLIAMS 1.00 X 0 0 0 BRAD HAUGEN 20.00 X X 0 0 0 MICHAEL WEISS 1.00 X X 0 0 0 KAREN HARRIS 1.00 X 0 0 0 RICHARD LENT 1.00 X 0 0 0 SCOTT MANSON 1.00 X 0 0 0 HOPE TAITZ 1.00 X 0 0 0 JAY WOLFF 1.00 X 0 0 0 MIMI NGUYEN 50.00 X 15000 0 2773 RAHUL TEJWANI 50.00 X 13333 0 1653 87433 0 6079 0 0 0 0 0 17305 1379612 246248 1396917 12 12 52586 17305 24307 28279 28279 MERCHANDISE SALES 452000 1620 1620 1620 1426828 0 0 29911 112576 112576 93512 68630 6924 17958 20462 18983 560 919 9750 9750 24601 20107 4494 10500 8071 690 1739 11988 8751 959 2278 32230 30955 943 332 23388 23335 16 37 686 686 SCHOOL AND CONSTRUCTION 61244 61244 MISCELLANEOUS 20067 15425 1318 3324 OUTREACH 14829 14829 MERCHANDISE 1659 1327 332 437492 384233 21846 31413 75211 344141 752 457313 7725 19347 280281 23388 0 256893 0 3000 82936 1081446 4000 13174 4000 13174 X 618011 78936 450261 78936 1068272 82936 1081446 989336 X X 0 1 1 X 0 X 58772 57765 1396917 1513454 58772 57765 1396917 1513454 281061 1232393 1513454 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 280281 23388 256893 256893 1426828 437492 989336 0 989336 1514207 87379 87379 1426828 0 1426828 524871 87379 87379 437492 0 437492 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ORGANIZATION RECOGNIZES THE EFFECT OF TAX POSITIONS WHEN THEY ARE MORE LIKELY THAN NOT OF BEING SUSTAINED. MANAGEMENT HAS DETERMINED THAT THE ORGANIZATION HAD NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE FINANCIAL STATEMENT RECOGNITION. TAX RETURNS SINCE THE ORGANIZATION'S INCEPTION IN 2008 REMAIN SUBJECT TO AUDITS BY APPLICABLE TAXING JURISDICTIONS. MULTI-CITY 47354 16179 31175 11844 270 4068 WHITE PARTY 21737 1126 20611 7500 607 1 800 800 18 69891 17305 52586 19344 270 4693 24307 28279 1 COMMUNITY LEARNING INTERNATIONAL 218 N ALFRED STREET ALEXANDRIA VA 22314 680254397 501(C)(3) 45696 GRANT IS PART OF A PARTNERSHIP TO BUILD SCHOOLS IN LAOS. SEEDS OF LEARNING PO BOX 2107 SONOMA CA 95476 200900415 501(C)(3) 66880 GRANT IS PART OF A PARTNERSHIP TO BUILD SCHOOLS IN NICARAGUA. 2 0 RICHARD LENT RICHARD LENT IS A MEMBER OF THE BOARD OF DIRECTORS OF PENCILS OF PROMISE. RICHARD LENT IS ALSO THE CEO OF AGENCYNET, AN ADVERTISING AND MARKETING AGENCY. AGENCYNET DEVELOPED OUR NEW WEBSITE AND PROVIDED OVER $326,300 IN PRO-BONO SERVICES TO OUR ORGANIZATION IN THE RESEARCH, DESIGN AND DEVELOPMENT OF THE NEW SITE. 0 X WEBSITE COSTS 1 246248 0 0 0 ORGANIZATION MISSION STATEMENT FORM 990 PART III LINE 1 OUR TWO-PRONGED MISSION ALLOWS US TO FOCUS OUR EFFORTS ON BUILDING SCHOOLS IN THE DEVELOPING WORLD AND TRAINING SOCIALLY CONSCIOUS YOUNG LEADERS. OVER THE COURSE OF 2010, WE ACCOMPLISHED THESE ACTIVITIES BY DEDICATING SIGNIFICANT AMOUNTS OF TIME, LABOR AND EFFORT RAISING MONEY IN THE US THROUGH DONOR ENGAGEMENT PROGRAMS AND SPECIAL EVENTS. THE FUNDS RAISED ALLOWED US TO INCREASE OUR DOMESTIC AND INTERNATIONAL REACH AND IMPACT. IN 2010, 20 SCHOOLS HAVE COMPLETED CONSTRUCTION AND ARE OPEN TO STUDENTS IN LAOS AND NICARAGUA AND PLANNING AND THE BEGINNING STAGES OF CONSTRUCTION FOR 7 MORE SCHOOLS STARTED. ADDITIONALLY, WE HAVE EXPANDED OUR REACH BY ESTABLISHING A PRESENCE IN GUATEMALA. EVERYTHING WE DO REFLECTS OUR COMMITMENT TO SUSTAINABLE EDUCATIONAL OPPORTUNITIES. OUR ROLE IS TO CREATE MORE THAN JUST FOUR WALLS; THE SCHOOLS WE BUILD MUST CONTINUE TO PROVIDE GENERATIONS OF QUALITY EDUCATION. TO SUCCEED, OUR APPROACH WORKS FROM THE BOTTOM UP, FINDING AND WORKING WITH COMMUNITIES WHO DON'T JUST NEED A SCHOOL, BUT WHO ARE INVESTED IN CREATING A SUCCESSFUL ONE. HERE'S HOW WE DO IT. DUE DILIGENCE - WE ARE A GROUND-UP ORGANIZATION. SO WE START ON-THE-GROUND; ON MOTORBIKES, IN THE COUNTRYSIDE, IN CONVERSATION WITH LOCALS. WE SIT IN VILLAGES WITH ELDERS AND EDUCATORS AND WE TALK, ASK QUESTIONS, LISTEN. THEY SHARE STORIES OF THEIR CHILDREN AND COMMUNITIES THAT ALLOW US TO UNDERSTAND THEIR NEEDS AS WELL AS THEIR DEDICATION TO INCREASING OPPORTUNITY FOR THEIR CHILDREN. WE DO THIS IN COUNTLESS VILLAGES, COLLECTING DATA AND TAKING NOTES ALONG THE WAY. BACK AT OUR OFFICE WE PUT TOGETHER PROFILES OF EACH POTENTIAL SITE USING BOTH QUANTIFIABLE STATISTICS AND FIELD OBSERVATIONS. IN ORDER TO CONSISTENTLY AND OBJECTIVELY ASSESS A SITE, WE USE RUBRIC SCORING IN THE AREAS OF NEED, SUSTAINABILITY, COST EFFICIENCY, IMPACT AND LOCAL COMMITMENT. WHEN INTERVIEWS ARE DONE AND NUMBERS ARE CRUNCHED, WE MEET WITH THE EDUCATION MINISTRY TO APPROVE BUILDS AND CONFIRM THE ASSIGNMENT OF A TRAINED TEACHER TO EVERY POTENTIAL SCHOOL. SWEAT EQUITY AND LOCAL SOURCING - AFTER SITES ARE GOVERNMENT CLEARED, COMMUNITY PLANNING BEGINS. WE HIRE A LOCAL CONTRACTOR, CREATE A BUDGET, AND SET MEETINGS WITH THE VILLAGE. THE VILLAGE FORMS A 'PROMISE COMMITTEE' OF EIGHT INDIVIDUALS, FOUR MEN AND FOUR WOMEN. THIS COMMITTEE SIGNS A CONTRACT AGREEING TO OVERSEE THE SUPPORT AND MAINTENANCE OF THEIR SCHOOL THROUGH EACH PHASE OF THE PROCESS, FROM CLEARING THE LAND AND SUPPLYING THE LABOR TO ENCOURAGING ATTENDANCE AND SUPPORTING THE TEACHER. AS PART OF THE LOCAL BUY-IN, EACH VILLAGE CONTRIBUTES 10-20% OF THE TOTAL CONSTRUCTION COST IN THE FORM OF LABOR AND LOCAL MATERIALS. THEY DEDICATE THEIR TIME AND THEIR GOODS TO THE CREATION OF THEIR SCHOOL, ENSURING THAT IT IS NOT A HANDOUT, BUT RATHER A STANDING SOURCE OF LOCAL PRIDE. THE REMAINING MATERIALS ARE SOUGHT OUT LOCALLY, INJECTING MONEY INTO THE LOCAL ECONOMY AND CREATING MINIMAL ENVIRONMENTAL IMPACT THROUGHOUT THE BUILD PROCESS. LOCAL EMPOWERMENT - WE ARE COMMITTED TO SUPPORTING LASTING, SUSTAINABLE EDUCATION; ONCE THE NEW SCHOOL IS COMPLETED AND OPEN, OUR LONG-TERM WORK BEGINS. WE MATCH A LOCAL, HIGH-POTENTIAL YOUNG ADULT WITH EACH SCHOOL AS A POP VILLAGE COORDINATOR. THEY CHECK-IN WITH THE CLASSROOMS BI-MONTHLY TO ENSURE THAT EVERYTHING IS OPERATING SMOOTHLY, THAT THE TEACHER IS FULLY SUPPORTED, TO ORGANIZE COMMUNITY DEVELOPMENT DAYS AND DELIVER SHINE (SEE BELOW FOR DETAILS) LESSONS. THROUGH THIS MAPPING, LASTING RELATIONSHIPS ARE FORMED BETWEEN YOUNG VILLAGE STUDENTS AND EMPOWERED, INSPIRING LOCAL ROLE MODELS. THE COORDINATORS IN TURN BECOME AMBASSADORS OF CHANGE TO THOSE IN GREATEST NEED. AND AS SOON-TO-BE LEADERS, EDUCATORS, POLICY-MAKERS AND PROFESSIONALS, THIS EXPERIENCE AND UNDERSTANDING WILL BE INVALUABLE TO THE FUTURE PROSPERITY OF THEIR COUNTRY. KNOWLEDGE TRANSFER - OUR ON-THE-GROUND OPERATIONS ARE RUN BY A LARGE STAFF OF LOCAL TALENT AND ONE INTEGRATED WESTERNER. WE KNOW THAT THE ONLY ROUTE TO TRULY SUSTAINABLE IMPACT IS LED BY THE LOCALS WHO HAVE A VESTED INTEREST IN THEIR COMMUNITIES. OUR IMPACT IS GROWING QUICKLY; WE'RE BUILDING MORE SCHOOLS AND SUPPORTING MORE STUDENTS DAILY. TO KEEP UP, OUR STAFF IS GROWING EVEN QUICKER. AND THE PEOPLE WE HIRE, WELL, THEY ARE AWESOME. WE HIRE POTENTIAL. YOUNG PEOPLE WHO ARE EAGER TO BE INVOLVED IN SOMETHING AND READY TO LEARN ANYTHING. OUR STAFF IS A LITTLE BIT OF EVERYTHING. THEY ARE ONE OF THE COUNTRY'S ONLY FEMALE ARCHITECTS. THEY ARE A UNIVERSITY STUDENT PUTTING HIMSELF THROUGH SCHOOL WHILE SUPPORTING HIS FAMILY IN HIS VILLAGE. THEY ARE A 21-YEAR-OLD FINANCE STUDENT WHO QUICKLY BECAME THE OFFICE EXCEL MASTER. THEY ARE A WOMEN'S BASKETBALL CHAMPION, WHO IN LESS THAN A YEAR WENT FROM DOING LAUNDRY AT A GUESTHOUSE TO MANAGING OUR ENTIRE BUILD AND DEVELOPMENT STRATEGY. AT EVERY STEP OF THE PROCESS, WE ARE NURTURING THE TALENTS OF KEY LOCAL INDIVIDUALS WHO ARE USING THEIR SKILLS AND THEIR PASSION TO CREATE PROFOUND GOOD. S.H.I.N.E. SANITATION - KEEPING OUR COMMUNITIES AND OURSELVES HEALTHY THROUGH CLEAN WATER USAGE AS WELL AS CLEAN BATHROOM AND WASTE DISPOSAL PRACTICES. HYGIENE - KEEPING OUR BODIES CLEAN TO PREVENT THE SPREAD OF DISEASE BY DEVELOPING CONSISTENT AND EFFECTIVE PRACTICES FOR CLEANING OF HANDS, FACES, HAIR AND TEETH. IDENTITY - CREATING CROSS-CULTURAL UNDERSTANDING BY EXPLORING THE PERSONAL AND CULTURAL HISTORIES OF EVERYONE IN OUR COMMUNITY; REINFORCING PRIDE IN ONE'S CULTURE, GENDER AND POSITION IN COMMUNITY. NUTRITION - PROPER DIET & FOOD HANDLING PRACTICES TO FIGHT MALNUTRITION AND PREVENT THE SPREAD OF DISEASE; UNDERSTANDING THE LONG-TERM AFFECTS OUR HABITS AND BEHAVIORS. ENVIRONMENT - UNDERSTANDING THE CONNECTION BETWEEN THE EARTH AND OUR COMMUNITIES: RECYCLING, GARBAGE DISPOSAL, AIR QUALITY AND ENERGY SAVING TECHNIQUES. DOMESTICALLY, WE EXPANDED OUR PROGRAMMING INITIATIVES THROUGH THE LAUNCH OF OUR NEW WEBSITE AND THROUGH OUR EVER-EXPANDING OUTREACH PROGRAM FOR BOTH YOUTHS AND PROFESSIONALS. WITH THE HELP OF OUR WEBSITE AND OTHER SOCIAL MEDIA PLATFORMS, WE HAVE AN ONLINE COMMUNITY OF OVER 100,000 MEMBERS AS THE END OF 2010. WE ALSO HAD A SUCCESSFUL SUMMER AND FALL VOLUNTEER INTERNSHIP PROGRAM AND BEGAN YOUTH PROGRAMMING IN SECONDARY SCHOOLS ACROSS THE US. FORM 990, PART VI, SECTION A, LINE 8B IN 2010, POP DID NOT HAVE ANY FORMAL COMMITTEES WITH FORMAL GOVERNANCE TO ACT ON BEHALF OF THE BOARD OF DIRECTORS. AT THE TIME, THE BOARD OF DIRECTORS WAS SMALL ENOUGH WHERE IT WAS NOT NECESSARY TO BREAK DOWN INTO EVEN SMALLER COMMITTEES. POP DID CONTEMPORANEOUSLY DOCUMENT THE MEETINGS HELD AND THE ACTIONS TAKEN BY THE BOARD OF DIRECTORS IN 2010. HOWEVER, IN 2011, A FINANCE COMMITTEE, A DEVELOPMENT COMMITTEE AND AN EXECUTIVE COMMITTEE WERE CREATED AND EACH WERE GRANTED AUTHORITY BY THE BOARD OF DIRECTORS TO ACT ON BEHALF OF THE GOVERNING BODY IN THEIR SPECIFIC SPHERES OF COVERAGE. ALL COMMITTEE MEETINGS ARE CONTEMPORANEOUSLY DOCUMENTED. FORM 990, PART VI, SECTION B, LINE 11 FORM 990 IS MADE AVAILABLE TO ALL MEMBERS OF THE BOARD OF DIRECTORS. POP'S DIRECTOR OF FINANCE & LEGAL AFFAIRS IS TASKED WITH OVERSEEING THE AUDIT PROCESS AND THE DRAFTING OF FORM 990 IN CONJUNCTION WITH AN INDEPENDENT ACCOUNTING FIRM. ONCE COMPLETED BY THE ACCOUNTANTS AND APPROVED BY THE DIRECTOR OF FINANCE & LEGAL AFFAIRS, FORM 990 IS PRESENTED TO THE BOARD OF DIRECTORS AND TO KEY EMPLOYEES OF POP FOR REVIEW, COMMENT AND APPROVAL. IN 2011, A FINANCE COMMITTEE WAS CREATED THAT WILL AID THE DIRECTOR OF FINANCE & LEGAL AFFAIRS IN OVERSIGHT OF THE DRAFTING OF FORM 990. FORM 990, PART VI, SECTION B, LINE 12C EACH BOARD MEMBER IS ASKED TO READ AND SIGN AN AFFIRMATION STATEMENT EACH YEAR REGARDING THE CONFLICT OF INTEREST POLICY. ADDITIONALLY, A CONFLICTS POLICY IS IN OUR EMPLOYEE HANDBOOK AND EACH EMPLOYEE IS ASKED TO SIGN AND ACKNOWLEDGEMENT FORM AND DISCLOSE ANY POTENTIAL CONFLICTS IF ANY ARE PRESENT. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS INCLUDES ALL OF THESE ELEMENTS: (1) REVIEW AND APPROVAL BY THE BOARD OF DIRECTORS, COMPENSATION COMMITTEE OR EXECUTIVE COMMITTEE OF POP; (2) USE OF DATA AS TO COMPARABLE COMPENSATION; AND (3) CONTEMPORANEOUS DOCUMENTATION AND RECORDKEEPING. REVIEW AND APPROVAL - THE COMPENSATION OF THE PERSON IS REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS, COMPENSATION COMMITTEE OR EXECUTIVE COMMITTEE OF POP, PROVIDED THAT PERSONS WITH CONFLICTS OF INTEREST WITH RESPECT TO THE COMPENSATION ARRANGEMENT AT ISSUE ARE NOT INVOLVED IN THIS REVIEW AND APPROVAL. USE OF DATA AS TO COMPARABLE COMPENSATION - THE COMPENSATION OF THE PERSON IS REVIEWED AND APPROVED USING DATA AS TO COMPARABLE COMPENSATION FOR SIMILARLY QUALIFIED PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS AT SIMILARLY SITUATED ORGANIZATIONS. CONTEMPORANEOUS DOCUMENTATION AND RECORDKEEPING - THERE IS CONTEMPORANEOUS DOCUMENTATION AND RECORDKEEPING WITH RESPECT TO THE DELIBERATIONS AND DECISIONS REGARDING THE COMPENSATION ARRANGEMENT. FORM 990, PART VI, SECTION C, LINE 19 ALL OF OUR FINANCIAL DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC ON OUR WEBSITE. THESE INCLUDE OUR 990 AND ANNUAL REVIEW/AUDIT. ADDITIONALLY, ALL OF OUR ORGANIZATIONAL DOCUMENTS ARE AVAILABLE FOR THE PUBLIC ON GUIDESTAR. FORM 990, PART XII, LINE 2C IN 2010, POP DID NOT HAVE A COMMITTEE THAT OVERSAW THE AUDIT AND THE COMPILATION OF FINANCIAL STATEMENTS. HOWEVER, THE DIRECTOR OF FINANCE & LEGAL AFFAIRS, IN CONJUNCTION WITH THE BOARD OF DIRECTORS AND KEY EMPLOYEES OF POP, SELECTED AN INDEPENDENT ACCOUNTANT TO PERFORM THE AUDIT AND PREPARE THE FINANCIAL STATEMENTS. THE DIRECTOR OF FINANCE & LEGAL AFFAIRS IS TASKED WITH OVERSEEING THE AUDIT PROCESS AND COMPILATION OF FINANCIAL STATEMENTS. ONCE COMPLETED BY THE ACCOUNTANTS AND APPROVED BY THE DIRECTOR OF FINANCE & LEGAL AFFAIRS, THE FINANCIAL STATEMENTS ARE PRESENTED TO THE BOARD OF DIRECTORS AND TO KEY EMPLOYEES OF POP FOR REVIEW, COMMENT AND APPROVAL. IN 2011, A FINANCE COMMITTEE WAS CREATED THAT WILL AID THE DIRECTOR OF FINANCE & LEGAL AFFAIRS IN OVERSIGHT OF THE AUDIT AND PREPARATION OF THE FINANCIAL STATEMENTS.