2017 Impact Report Breaking Down Educational Barriers TABLE of CONTENTS

2017 Impact Report Breaking Down Educational Barriers TABLE OF CONTENTS 3 Letter from the President & CEO 4 The Need: Access to Quality Education is Not Equal 5 The First Book Network: Serving Educators & Kids 7 The First Book Network: Providing the Solution 9 Our Impact: The First Book Marketplace and National Book Bank 10 Our Impact: Breaking Down Educational Barriers 12 Our Impact: First Book Insights 13 Our Impact: Meeting Basic Needs 14 Our Impact: Disaster Recovery 15 2017 Highlights 19 Financials 21 First Book Leadership 2 EDUCATION IS THE FOUNDATION TO EVERYTHING IN LIFE. - EDUCATOR When two friends and I started First Book back in 1992, we knew that the BALTIMORE, MD lack of affordable, relevant books was a catastrophic educational barrier for children growing up in low-income neighborhoods – with devastating implications for individual children, and pervasive, long-term societal impacts. We dedicated ourselves to creating a systemic solution –one that would transform the educational environment for children in need and the educators who serve them. We built First Book using market-driven models powered by the collective strength of formal and informal educators serving children in need – in schools, libraries, museums, early childhood programs, homeless shelters, afterschool programs – anywhere that serves families in need. And while literacy remains a central focus, First Book’s mission has always been to further educational equity. In 2017, our 25th year, we realized a tipping point: First Book now reaches more than 1 out of 4 of the estimated 1.3 million classrooms and programs serving children in need. We leverage this market power to drive the publication of books, titles, and formats that are most relevant to the children we serve, and to identify and break down other long-standing educational barriers. In our 2017 Impact Report, you’ll learn about some of those efforts: LETTER FROM KYLE ZIMMER • The launch of First Book Insights, a research arm that generates proprietary insights from our network of PRESIDENT, CEO, AND CO-FOUNDER educators that drive our educational offerings and steer our most innovative strategies; • Expansion of our recovery efforts to help communities get back on their feet after a natural disaster; • The development of Care Closets, stocked with a range of essentials that educators can use to support students who come to school cold, hungry, and suffering from chronic stress. While we are proud to reach 25 percent of the educators serving children in need, we know that 3 out of 4 classrooms and programs still need our help. It’s critical that we increase our reach and our impact, innovating as fast as we can to remove barriers to learning for children in need. We can’t do it alone. We’re grateful for your support – these are truly “Stories Made Possible By You.” See what we mean at: http://bit.ly/StoriesMadePossible With gratitude, Kyle Zimmer President, CEO, and Co-founder 3 First Book THE NEED: ACCESS TO QUALITY EDUCATION IS NOT EQUAL 51% 61% $500 According to McKinsey & Company, our failure to provide educational opportunities for children in need imposes the equivalent of a permanent economic recession on our nation. First Book believes that education is a child’s best path out of poverty. But access to a quality education is far from equal, and the resulting need is increasing for both educators and the children they serve: 51% 61% $500 51% 61%20 $55010% 8061% $500 OF LOW-INCOME CHILDREN OF STUDENTS ACROSS THE OF 4TH GRADERS FROM LOW-INCOME HAVE NO CHILDREN’S NATION’S PUBLIC SCHOOLS NEIGHBORHOODS DO NOT READ PROFICIENTLY – BOOKS AT HOME.1 ARE LOW-INCOME.2 A KEY PREDICTOR OF FUTURE EDUCATIONAL & ECONOMIC SUCCESS.3 2061% $500 80 20 51% 8020 80 THE ACHIEVEMENT GAP HAS WIDENED TEACHERS SPEND $500 OUT OF THEIR BY 20% IN THE LAST DECADE AND OWN POCKETS ON SUPPLIES.5 GOTTEN WORSE IN EVERY STATE.4 1. Campaign For Grade Level Reading, School Readiness Report. https://gradelevelreading.net/our-work/school-readiness 2. U.S. Department of Education, National Center for Education Statistics. Common Core Data, 2015. 3. The Annie E. Casey Foundation. “Early Reading Proficiency in the United States,” January 29, 2014. 4. National Center for Education Statistics, National Assessment of Educational Progress. http://nationsreportcard.gov 5. As reported in: https://www.nytimes.com/2018/05/16/us/teachers-school-supplies.html 4 20 80 THE FIRST BOOK NETWORK: SERVING EDUCATORS & KIDS The First Book Network — our registered database of educators who access 35,73 First Book resources — 20% 50,000 GROWTH is North America’s largest IN 2017 and fastest-growing community of educators 300,000 serving kids in need. 00,000 7733%% 6600%% OFOF EDUCATORSEDUCATORS OFOF EDUCATORSEDUCATORS HAVEHAVE AREARE SCHOOL-BASEDSCHOOL-BASED WORKEDWORKED ININ EDUCATIONEDUCATION THE FIRST BOOK NETWORK: FORFOR 1111 YEARSYEARS OROR MOREMORE 250,000 21,15 • Open to formal and informal • educators whose classrooms • • or programs are composed of, 200,000 • at minimum, 70% children • in need 72%72% 94%94% 155,5 HAVEHAVE SOMESOME YEARSYEARS OFOF SERVESERVE ENGLISHENGLISH 150,000 POST-GRADUATEPOST-GRADUATE TRAININGTRAINING LANGUAGELANGUAGE LEARNERSLEARNERS • Grows by 1,000 members • each week • Active members in all 50 U.S. • 100,000 • states, the District of Columbia, • and U.S. territories 50,000 27%27% 72%72% WORKWORK OUTSIDEOUTSIDE OFOF SCHOOLS,SCHOOLS, PAYPAY OUTOUT OFOF POCKETPOCKET TOTO INCLUDINGINCLUDING ININ COMMUNITYCOMMUNITY ACUIREACUIRE RESOURCESRESOURCES ORGANIZATIONS,ORGANIZATIONS, LIBRARIESLIBRARIES FORFOR THEIRTHEIR CLASSROOMCLASSROOM && AFTERAFTER SCHOOLSCHOOL PROGRAMSPROGRAMS && STUDENTSSTUDENTS Source: First Book Data 0 2014 2015 201 2017 5 THE FIRST BOOK NETWORK: PROVIDING THE SOLUTION First Book has distributed more than 175 million books INDIAN RESERVATION and resources in more than TRIBAL NATION OTHER 30 countries. 2% 1% FIRST BOOK’S REACH SUBURBAN 20% • 175 million books and resources • distributed through 2017 SCHOOLSSCHOOLS LIBRARIESLIBRARIES & & FAITHBASEDFAITHBASED MILITARYMILITARY FAMILY FAMILY MUSEUMSMUSEUMS ORGANIZATIONSORGANIZATIONS WHERESUPPORTSUPPORT THE PROGRAMS PROGRAMS KIDS WE SERVE • More than 25% of the estimated URBAN LIVE 52% • 1.3 million U.S. settings serving • low-income children, from birth RURAL • to age 18 25% MILITARYMILITARYMILITARY MILITARYFAMILY FAMILY FAMILY FAMILY • 5 million children SCHOOLSSCHOOLSSCHOOLSSCHOOLS LIBRARIESLIBRARIESLIBRARIESLIBRARIES & & & & FAITHBASEDFAITHBASEDFAITHBASEDFAITHBASED MILITARYMILITARYMUSEUMSMUSEUMS FAMILYMUSEUMS FAMILYMUSEUMS ORGANIZATIONSORGANIZATIONSORGANIZATIONSORGANIZATIONSSUPPORTSUPPORTSUPPORT SUPPORTPROGRAMS PROGRAMS PROGRAMS PROGRAMS • reachedSCHOOLSSCHOOLS annually LIBRARIESLIBRARIES & & FAITHBASEDFAITHBASED MUSEUMSMUSEUMS ORGANIZATIONSORGANIZATIONS SUPPORTSUPPORT PROGRAMS PROGRAMS EARLYEARLY CHILDHOOD CHILDHOOD SHELTERSSHELTERS & & OUTOFSCHOOLOUTOFSCHOOL ANDAND MANY MANY MORE MORE PROGRAMSPROGRAMS CLINICSCLINICS TIMETIME PROGRAMS PROGRAMS • Books and resources distributed • in more than 30 countries EARLYEARLY CHILDHOODEARLY CHILDHOODEARLY CHILDHOOD CHILDHOOD SHELTERSSHELTERSSHELTERS SHELTERS& & & & OUTOFSCHOOLOUTOFSCHOOLOUTOFSCHOOLOUTOFSCHOOLANDAND MANY MANYANDAND MORE MANYMORE MANY MORE MORE PROGRAMSPROGRAMSPROGRAMSPROGRAMS CLINICSCLINICSCLINICSCLINICS TIMETIME PROGRAMS PROGRAMSTIMETIME PROGRAMS PROGRAMS EARLYEARLY CHILDHOOD CHILDHOOD SHELTERSSHELTERS & & OUTOFSCHOOLOUTOFSCHOOL ANDAND MANY MANY MORE MORE PROGRAMSPROGRAMS CLINICSCLINICS TIMETIME PROGRAMS PROGRAMS Source: First Book Data 6 THE FIRST BOOK NETWORK: MEET OUR MEMBERS In East Nashville, it’s more likely that you’ll find a fast food restaurant, or a used One thing about First Book tire store, or a gas station, that excites me is seeing or a liquor store, before that you’re not just acting in you’ll see a library. formal academic classroom First Book educators say that access spaces or schools. I think to resources is the number one barrier for the LGBTQ community in to academic success. High school English teacher Jarred Amato particular–in certain spaces mobilized his students to fill the certain books are banned SEEDING A BOOK DESERT shelves in their schools— and it’s hard to get access. and 50 other schools in the Nashville WITH RELEVANT BOOKS area—with books that were relevant Tim’m West, senior managing director JARRED AMATO to their lives. And so, the Project LIT of Teach for America’s LGBTQ Community, a student-led celebration Community Initiative, relied on First of diverse books, was born. CREATING SAFE SPACES Book to reach children outside of formal education. Tim’m set up LGBTQ youth READ JARRED’S STORY AT: TIM’M WEST BIT.LY/FIRSTBOOKBLOG_JARREDAMATO. centers to offer space where kids can have access to books they may not be able to have in their schools. READ TIM’M’S STORY AT: I HAVE FAMILIES THAT HAVE TO CHOOSE BIT.LY/FIRSTBOOKBLOG_TIMMWEST. BETWEEN SCHOOL SUPPLIES AND FOOD. - 3RD GRADE TEACHER WASHINGTON, DC 7 OUR IMPACT 8 OUR IMPACT: THE FIRST BOOK MARKETPLACE AND NATIONAL BOOK BANK BOOKS & RESOURCES In 2017, First Book distributed 14 million books and resources The First Book National Book Bank, which offers publisher- DISTRIBUTED to classrooms and programs across the U.S., with the generous donated inventory for only the cost of shipping, relaunched 22 MILLION support of partners, including the American Federation of as a 24-hour nonprofit eCommerce site this year. The relaunch Teachers, C&S Wholesale Grocers, Citi, dd’s DISCOUNTS, follows the 2016 redesign of the

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