annual report 2014 Change the picture. The answer is simple.

an ANECDOTE.

As part of our effort to get the word out, Academy Somebody needs to actually see them. To care. Award–winning filmmaker Errol Morris joined To be there. Just as we are with our own children.” with us to tell our kids’ stories. Like Tres’Rionna’s. Turn the page to learn what Elaine and President After getting to know her, Errol remarked to Elaine Dan Cardinali have to say in response. And visit Wynn, Chair, CIS National Board, “It is the falling communitiesinschools.org/tresrionna to learn through the cracks that hurts these kids. And more about this exceptional student. One we the answer is so simple. We need to see them. proudly call ours. 03 THE CONTEXT “When it comes to unlocking each We couldn’t agree more with the sage words of our new friend and supporter Errol Morris: no child should fall through the cracks and remain unseen, their needs unmet. Indeed, seeing each and every child’s full potential, student as an individual and doing whatever it takes to help her or him succeed in both school and in life is the obsession of our organization. It has been so since our founding in 1977, and still we will never give up.” is. So we present to you our 2014 Annual Report, complete with a wealth of data covering the year. But first, here are four trends to help put the numbers in perspective: Our quality is improving. We continue to push consistent quality throughout the network, because every student in every community deserves our best. In 2014, eleven more affiliates were accredited under our rigorous Total Quality System, bringing us very close to our goal of 100%. Our network is growing. Quality drives quantity at CIS. Instead of expanding into new communities in 2014, we focused on going deep by adding more than 150,000 new students within our existing network. For an organization of our size, an annual growth rate above 10% is pretty astounding, and it speaks to the hard work and dedication of the entire network. Our challenge is increasing. For the first time, a majority of students in American public schools are now living in poverty. When economic hardship is the rule rather than the exception, schools face an enormous challenge in helping students overcome the nonacademic barriers to learning. Our moment is dawning. Educators and policymakers are increasingly aware of the difficulties that poor kids face at school. The question is no longer, “Does poverty matter in the classroom?” but rather, “What can we do about it?” After more than 40 years of hard work, we may finally be at the tipping point where integrated student supports (ISS) becomes a way to solve our challenges in public education.

We’re proud to be at the forefront of that movement – and a little overwhelmed at the same time. With 11 million U.S. children living in poverty, the “big picture” can be daunting, but we’re already changing the picture for nearly 1.5 million students each day. In the following pages, every face and every story is another reminder of why we do what we do – and with your help, we’re committed to doing it even better. 05 table of contents

the answer A new supporter sees what is needed. 03

the context A message from our President and Chair. 05

the Highlights Three strategic initiatives. Significant tangible progress. 09

The proof You can’t just say it. You have to do it. 13

The role of you We couldn’t have done it without many supporters. 19

The money Where it comes from. Where it goes. 25

The founder Back to the source for more inspiration. 31

Hector, student, CIS of Los Angeles Ellie, graduate, Texas Central South of CIS Ellie, “I couldn’thave doneit without Communities InSchools.”

the Highlights focus. and get results. Without doubt, any list of highlights must start and finish with the students we serve. Like Ellie, pictured on the previous page, who worked with her site coordinator to overcome devastating obstacles at home to graduate from high school, move on to college and begin a career in fashion. But while our success happens child-by-child, our impact is felt system-wide and nationwide. Here are three strategic areas we identified for improvement, and a look at the progress we made.

Grow with Quality Change the Frame Secure the Future Eleven more affiliates were To help put a face on the dropout At the close of our three-year accredited under our rigorous crisis, we launched Change the capital growth campaign in 2014, Total Quality System (TQS), and Picture, our first-ever nationwide we were able to invest $30 million our goal of 100% accreditation is branding campaign that earned into our network, helping to now within reach. TQS helps to nearly $14 million in pro bono ad leverage an additional $600 ensure that every child we serve placements in just six months. million in local resources for

in every community is getting the To highlight our successes, we our affiliates. same high level of support. hosted the World’s Biggest By partnering with state affiliates As quality improves at the local Graduation Celebration, a social on advocacy and communication level, affiliates are able to increase media extravaganza that efforts, we helped to secure $27.5 capacity, as well. In 2014, we showcased our kids in their million in new public funding in served an additional 150,000 kids proudest moment. Kansas, North Carolina and Texas. within our existing network – a For a deeper dive into the issues, We saluted our board chair, Elaine growth rate of nearly 10%. our national leadership went on a Wynn, with a one-night event in For the first time ever, The media offensive, earning space or that drew the support of NonProfit Times named CIS to airtime with top-tier outlets top corporate and political leaders, its Top 100 list of the largest including , exposing many of them to our nonprofit organizations in The Journal and work for the first time. the United States. MSNBC – just to name a few. Throughout the public education system, we saw a clear trend toward broader acceptance of integrated student supports as a useful and productive strategy. This was driven, in part, by the first-ever independent review of ISS, published by Child Trends in February 2014.

Ryan, graduate, CIS of Washington 11 Katherine, student, CIS of Bay of CIS Area student, Katherine, early engagement createslong-term success. With students like Katherine, we findthat For thechild. Andthesystem.

the proof state by state Saying you care is one thing. Actually changing the equation is another. Here’s a look at how we did, “...we served nearly 1.5 million across the nation, as we served nearly 1.5 million students in 25 states and the District of Columbia. students in 25 states and D.C.”

IL · IN ·MI ·OH

KS · NE · OK MIDWEST students served: CENTRAL DE · DC students served: 121,648 MA · NY · PA ·VA · wv NORTHEAST AK · CA · NV · WA 41,552 students served: WESTERN 66,737 students served: 91,420

FL · GA · NC · SC · TN LA · NM · TX SOUTHEAST

SOUTHWEST students served: students served: 451,406 710,029

For a complete list of Communities In Schools affiliates, please visit www.communitiesinschools.org/about/where 15 student by student 82% 93% 154,000 When you look at the metrics behind the stories of our kids’ success, the of students served students were eligible students received were racial minorities for free or reduced- targeted case whole picture of education in America changes, looking brighter than ever.* price lunch management services

77% 88% 83% 1.48 million 234,000 41,000 met their attendance met their behavior met their academic students and parents, guardians and community volunteers improvement goals improvement goals improvement goals their families were other family members donated their time directly connected participated in their to resources children’s education

79% 93% 99% $24 million 10,500 4,700 met their suspension of students in K-11 of students remained worth of volunteer community partner nonprofit and reduction goals were promoted to the in school at the end of time was accrued organizations youth-development next grade level the 2013-14 school year benefited at-risk professionals carried students out the CIS mission

91% 72% 2,350 161 $159 of eligible of graduates went on schools and local affiliates and the annual cost per seniors graduated to some form of post- community-based sites three Diplomas Now student served secondary education partnered with CIS programs operated in 25 states and the District of Columbia

* The data in this section reflects case-managed students 17 Dr. Demona Warren, SiteDr. Warren, Demona Coordinator, Atlanta of CIS “I wascreated todothis.”“I

the role of you the role of you The word “community” in our name is no accident. This work takes real partnership, real collaboration, real engagement. From all kinds of supporters. Including you. Thank you to all of our 2014 fiscal year contributors.

Jillian Manus CBS Corporation Midler Family Foundation Vincent and Susan Giampapa Foundation, Inc. J. Peter Simon

Honor society MetLife Ray Chambers Irwin and Susan Molasky classroom champions Gleason Family Foundation Bob and Sandy Miller Sally Susman and Robin Canter

Milken Family Foundation Larry and Deirdre Cohen Moldaw Family Supporting Allen and Deborah Grubman William and Jean Milliken Takeda Pharmaceuticals Foundation 2 of the Jewish Daniel H. Adler William and Donna Acquavella Gregory Haffner Debra Montanino and Charles Teixeira National Philanthropic Trust Jerry Colangelo and USA Basketball Community Endowment Fund Joanne and Hank Asbill Joan Sherman The Allwin Family Lawrence Haverty Lori Traweek John D. Nixon James M. and Susan Cole Morgan Stanley John and Margaret Bader Jenna Morton Altria Group Matthew Heller & Susan Holmes Tonya Ugoretz Paragon Gaming Beth and Ronald I. Dozoretz Moss Foundation Melanie Bialis The Honorable Anonymous Herzing, Inc. Bob Understein Procter & Gamble John R. Ettinger S.I. Newhouse Foundation Georgette Mosbacher BlackRock Inc. AT&T John and Nancy Hoffman The Urken Family Red Hat Matthew and Moonie Fishburn Omidyar Global Fund of the Naismith Memorial Basketball Hawai’i Community Foundation Jacob and Ruth Bloom Hall of Fame Robert H.B. Baldwin, Jr. and Robertson Foundation The Flom Family Foundation Robert R. Hopper Nicholas Veikos Margaret J. Sieck Mike and Missy Perlis Nicholas Branker Katie Nelson Julian H. Robertson, Jr. Gabelli Funds Ingram Yuzek Gainen Carroll & Christine Watkins The Bank of America Charitable Bertolotti, LLP Jeffrey Rackover Eli and Edythe Broad Foundation Douglas Neuse Foundation, Inc. Charles and Sandy Gallin Irwin and Kathryn Weiss Jerald Irving Family Foundation Dr. Quentin Regestein Mr. and Mrs. Richard “Skip” Bronson John Oliver (The Oliver Group LLC) Capital One Daniel R. and Rhoda J. Glickman Jesse Weisshaar John Shaw Oliver Brooks Sheila C. Johnson Michael Parham Adam and Jessica Reinmann Linda Gale and Mark White Anne Cox Chambers Social Innovation Fund Herzing Family Jodi Kahn and Fred Poust The Wallace Foundation Rick M. Rieder and Debra Leib Tom Burke Jeffrey and Tracey Perlmutter James Cox Chambers Phillip Isom Ava D. Youngblood Joel Klein and Nicole Seligman Jason G. and Donna E. Weiss Alex T. Robertson Governor Jeb Bush C. Gregg and Julie Petersmeyer The Edna McConnell Clark Renu Jain Ken Kragen Foundation The Wildflower Foundation, Inc. Susan and Richard Rogel Tom Byrne Virginia and Jonathan Powers George and Janet Johnson Christie Noelle and Scott Krase Community Action Project of Elaine P. Wynn and Daryl & Steven Roth CA Inc. James Read Tulsa County Alan Jones and Ashley Garrett Family Foundation Stephen Leeds Manoj Saxena Amy and Dan Cantor Jon and Sue Resnick Costco Kent and Karen Jordan Todd-Avery Lenahan The Scully Peretsman Foundation Marty Castro Lynda and Stewart Resnick and JPMorgan Chase & Co. Creative Artists Agency the Resnick Family Foundation Dean’s list Lisa and Andy Lerner SS + K The Causeway Agency, LLC Michael Keithley Robert A. Day and the W.M. Keck Barbara J. Richmon Robin Levitt Foundation Leonard and Lauren Stern Andy Chisholm and Ronald Kramer Laurie Thomson John Rosenberg Judy Hart Angelo and Jaclyn Libowitz The Emerson Collective Education Daniel Sullivan John M. Angelo Mike and Mickie Krzyzewski Fund Todd Creek David Rutter Steve and Sue Mandel Thomson Reuters Lovee and Bob Arum Robert and Susan Labriola The David Geffen Foundation Brian Davis Dana Sano in memory of Tosh Sano Mark Kaminsky Marc Tishfield Robert H.B. Baldwin through the Linda and Philip Lader Hudson Group Susan and Jonathan Dolgen Peter Schwartzman Geraldine R. Dodge Foundation Lauren Marx-Abel Dani and Ted Virtue Lear Family Foundation ICAP® Daniel A. Domenech Sebonack Foundation Bank of America Robert and Jane Matluck George Weiss and Say Yes Pam and Stanley Maron Family Foundation Sam and Wendy Frieder Robert and Jane Shepardson Judy and Ron Baron to Education Foundation Kathleen M. McGrath Kevin and Lynnette McCollum Bobby Kotick Eric and Lori Friedman Arthur and Beverly Shorin Geoffrey and Norine Boisi Sherrie and David Westin The Pearl Welinsky Rick McVey Randal Gernaat Merlo Foundation Scott and Amy Silverstein The George Lucas Daniel J. Cardinali and Wynn Las Vegas Family Foundation Scott E. Mitchell Ron Meyer Michael Dunitz Crisis 21 the role of you Cont.

Leonard Stern Robert H. B. Baldwin Audrey Choi J. Douglas Holladay Eric Liu Phyllis Moldaw Susan Rogel Founding Chairman CEO Founder Co-Founder National Board of directors Shepardson Stern + Kaminsky Jerry Moss E. Robert Roskind Communities In Schools National Institute for Sustainable Investing PathNorth Guiding Lights Network Chairman Chairman Daniel Sullivan Office Managing Director & Head, Global Robert R. Hopper Richard Lovett ALMO Sounds, Inc. Lexington Corporate CHAIRMAN Ahold USA Sustainable Finance Brian Becker Senior Partner President Properties Trust Morgan Stanley Gwendolyn Adams Norton Elaine Wynn Donna Weiss Chief Executive Officer Robert R. Hopper & Associates Creative Artists Agency Christopher M. Schroeder Wynn Resorts BASE Entertainment Charles A. Clarkson Sherrie Rollins Westin Dr. Paul D. Houston Kerman Maddox Jack L. Oliver, III Founder & Chairman Senior Policy Advisor John C. Shaw FOUNDER & VICE CHAIRMAN Sesame Workshop Marc Benioff Author Managing Partner The Clarkson Group Bryan Cave LLP Managing Director & William E. Milliken Chairman & Chief President & Founding Partner Dakota Communications Linda Gale White Barclay’s Capital Co-Founder Executive Officer Roger J. Dow Center for Empowered Leadership Christopher F. Allwin Former First Lady of Texas Peter A. Magowan Resource Holdings Ltd. Salesforce.com President & CEO Michael Olshan General Maritime Corporation Thomas J. Hutchison, III Director U.S. Travel Association Chairman, Managing Partner Russell Simmons Ava Youngblood Janet Lea Berman Principal Caterpillar, Inc. Robert H.B. Baldwin, Jr. O-CAP Management L.P. Chairman & CEO Youngblood Executive Search, Inc Ronald I. Dozoretz, M.D. Hutchison Advisors, Inc. Wayne Berman Joseph P. McCarthy Rush Communications Heartland Payment Systems Chairman Pratish Patel Senior Advisor for Global Kevin Huvane Senior Vice President ValueOptions® Jim Sinegal Martin R. Castro * Government Affairs Managing Partner Chief Human Resources Officer National leadership council Mark C. Percy Co-Founder & Director New Futuro Blackstone Group Millard Drexler Creative Artists Agency Altisource Principal Costco Wholesale Corp. Nuestro Futuro Chief Executive Officer & Next Generation Strategies, LLC Geoffrey T. Boisi Shavar D. Jeffries Betsy McCormack U.S. Commission on Civil Rights Daniel H. Adler Chairman of the Board Nathan Troutman Chairman & Chief Associate Professor of Law Center Retired WTA Tennis Professional Richard Plepler Founder & Principal J. Crew Managing Partner James Cox Chambers Executive Officer for Social Justice Chairman & CEO Media Eagles Susan McCue Privatus Partners Roundtable Investment Partners Joseph Durnford Seton Hall University School of Law Field Hands Productions President HBO Andre Agassi Chief Executive Officer Bob Understein Joseph DiDomizio Gerald Breslauer George H. Johnson Message Global LLC Joseph P. Portera Founder JD Ford & Company President Partner Founder & President Executive Vice President The Hudson Group, Dufry AG Andre Agassi Foundation William J. McEnroe Government Transformation Breslauer, Rutman & Leslie Fielden, Esq. Johnson Properties Chief Operating Officer, Eastern for Education Managing Partner Initiative Daniel A. Domenech Anderson LLC & Canadian Divisions, Chief Lance Freed Alan K. Jones Fund Tax Services American Association of Shaun Alexander Diversity Officer Tom Vander Ark Senator William E. Brock President Managing Director & Global Head School Administrators NFL Football Player, The Honorable Rob McKenna Costco Wholesale Corp. CEO Rondor Music International of the Private Equity Group Author & Owner Sandy Brock Partner Getting Smart John R. Ettinger Morgan Stanley Thomas Reed Shaun Alexander Enterprises Ann Gardner Orrick, Herrington & The Helmsley Trust Director, Office of Communications Happy Walters Janet H. Brown Director Joyce Klein Sutcliffe LLP Dean Allen Executive Director Business Opportunities Co-Chief Operating Officer Michael B. French Communities In Schools of the Managing Director Commission on Presidential Ken Kragen Ron Meyer Federal Communications Relativity Media Altria Client Services Nation’s Capital Riverside Capital Debates President Vice Chairman Commission William H. Walton, III John H. Gardner Kragen & Company NBCUniversal Rhoda Glickman Dr. Paula Allen-Meares Vanessa Reed Founding Managing Member Reneé Brown President & Chief Empire State Development Chancellor Robert J. Labriola Michael Milken Trial Attorney Rockpoint Group, LLC Chief of Basketball Operations & Executive Officer Corporation University of Illinois at Chicago Player Relations Senior Vice President Co-Founder Department of Justice Buvermo Properties Jason Weiss WNBA Merrill Lynch Wealth Management Milken Family Foundation Michael Keithley Maria Allwin Rick Rieder Owner Joseph Gigliotti Creative Artists Agency Stephen B. Burke Linda LeSourd Lader Denny M. Miller Managing Director, Chief Investment Terrapin Palisades Ventures, LLC Herb Alpert Managing Director, CFO Chief Executive Officer President President Officer of Fundamental Fixed Income Jillian Manus Co-Founder Three Bays Capital, LP Stephen A. Wynn NBCUniversal Renaissance Institute Denny Miller Associates BlackRock Manus Media & Literary Agency A&M Records Chairman & CEO Executive Vice President Hon. Daniel Glickman Daniella Landau Jill Milliken David S. Robbins Wynn Resorts Structure Capital Comcast Corporation Executive Director Frantz Alphonse Founding Partner Mid-Atlantic & Southeast Sales Partner Co-Founder & Managing Partner The Aspen Institute Congressional Jim Youngren John Nixon Russell J. Carpentieri Hannegan Landau Europ Assistance K&L Gates APC Holdings, LLC Program; Senior Fellow, Bipartisan Chairman, Board of Directors ICAP® Managing Director & Partner Poersch Advocacy Policy Center Sean Milliken Alex T. Robertson Long Live the Kings Opus Advisory Group, LLC Michael Parham Wally Amos Simone Levinson Director of Nonprofit Strategy Managing Partner Chairman & Co-Founder Stefanie Graf RealNetworks, Inc. Anne Cox Chambers Vice Chairman eBay, Inc. Tiger Management, LLC Read It LOUD! Founder Chairman Turnaround for Children, Inc. Jonathan G. Powers Children for Tomorrow Scott Ellis Mitchell Julian H. Robertson, Jr. Burt Bacharach Atlanta Newspapers Town of Pound Ridge, N.Y. Robert Light Attorney Chairman Roger W. Hobby Ambassador Elizabeth Raymond Chambers Managing Partner & Head of Music Federal Aviation Administration Tiger Management, LLC Manoj Saxena Executive Vice President Founder Creative Artists Agency Frawley Bagley Fidelity Investments Michael Moe Richard Rogel The Entrepreneurs’ Fund The MCJ Amelior Foundation Advisor President & CEO GSV Advisors Tomay, Inc.

*Current as of publication date 23 Jamal, graduate, Charlotte-Mecklenburg of CIS Jamal, do something great fortheworld." "I'm goingtogrow upand

the money funding sources (AFFILIATES) When you set out to change the way each child in the system is seen—as­­ a unique center of possibility for our future—you have to go beyond normal math, and available and dwindling public funds. Here is where the money is coming from to fund our 161 affiliates across the country.

Grants $150,894,110

Cash $25,682,492

In-Kind $22,574,386

47% Private ($93,600,964) total affiliate Funding 53% Public $199,150,988* ($105,550,024)

Emmiley, student, CIS of Mid-America

*Does not include national or state offices 27 Accountability (National Office) At the center of the Communities In Schools network is a strong core of national office staff and leadership dedicated to changing the picture of education. We leverage all available resources to fund our national operations in support of our network. We continue to be recognized by independent nonprofit evaluation national office organizations for our financial accountability, transparency and sound business practices. support & revenue 57% Corporations Activities & Changes in Net Assets financial position 30% Individuals & Family Foundations Year Ended September 30, 2014* Year Ended September 30, 2014* 8% Foundations 5% Grants & Governmental Agencies SUPPORT & REVENUE Assets

Contributions: Cash & Cash Equivalents $ 15,239,926 Foundations† $ 3,043,059 Cash Held for Restricted Purposes 128,123 Corporations‡ 20,825,392 Investments 35,024,954 Individuals/Family Foundations 11,171,392 Pledges Receivable, net 1,724,828 Grants–Governmental Agencies 1,723,737 Government Grants Receivable 221,098 Other Revenue 82,941 Other Assets 975,553 Total Support & Revenue $ 36,846,521 Fixed Assets, net 1,028,426 Total Assets $ 54,342,908 expenses LIABILITIES & NET ASSETS Program Services: Network Operations $ 18,713,125 Liabilities: Advocacy 1,381,236 Accounts Payable & Accrued Liabilities $ 1,402,937 Public Awareness & Communication 5,557,925 Deferred Rent 450,759 In-Kind Expenditures 14,095,929 Total Liabilities $ 1,853,696 Total Program Services $ 39,748,215 Net Assets: national office Supporting Services: Unrestricted 12,895,820 General & Administrative 637,514 Temporarily Restricted 14,583,312 Expenses* Fundraising 2,963,625 Permanently Restricted 25,010,080 64% Network Operations Total Supporting Services $ 3,601,139 Total Net Assets $ 52,489,212 19% Public Awareness & Communications Total Expenses $ 43,349,354 Total Liabilities & Net Assets $ 54,342,908 10% Fundraising Change in Net Assets from Operations $ (6,502,833) 5% Advocacy Investment Income (Loss), net 4,457,822 2% General & Administrative Change in Net Assets (2,045,011) Beginning Net Assets 54,534,223 Ending Net Assets $ 52,489,212

* Excludes in-kind expenditures * Communities In Schools fiscal year 2014 began October 1, 2013, and ended September 30, 2014 † Does not include family foundations

‡ Includes $14,095,929 in in-kind media and software 29 founder’s Letter

“We started out with a lifetime When we started our street academies in Harlem 50 years ago, we worried that the dropout crisis was creating a nation of haves and have-nots. And today, with more than 1 million commitment to this movement, children dropping out of school every year – mostly poor children of color – we know that the and that hasn’t changed.” battle for America’s future will be won or lost at the schoolhouse door. Back then, we began with a long-term vision because we knew this had to work at both the individual and institutional levels. As it turns out, we were faster and better on the individual side: building relationships, and “loving kids into change,” is an approach that everyone can understand, and we were able eventually to reach critical mass, a necessary first step toward institutional change.

The institutional piece has been trickier. For years, we had the passion but not the proof. The real game-changer for our model has been the recognition of the essential role of a site coordinator, who becomes woven into the fabric of the school. The site coordinator frees up the principals to lead and the teachers to teach by coordinating the community services that help the students focus on learning. Once we became integrated into the schools, we began to get consistent results, and today we have years of data to prove that the Communities In Schools model works.

We knew it would take decades to reach critical mass, establish the effectiveness of our model and then influence legislation to make that model more widely available. We always knew our model worked but now, almost 40 years later, we are getting closer to seeing integrated student-support services as part of our national education policy. Maybe this will be the year that Congress takes notice, and passes an education bill that enables our schools to help all kids succeed.

We started out with a lifetime commitment to this movement, and that hasn’t changed. I just turned 75, and I’ve never been so optimistic about what we’re doing and where we’re going. I’m grateful for having been part of something that is now serving nearly 1.5 million students and their families annually. I look forward with great anticipation to seeing Communities In Schools not only continue to grow but to be part of a larger coalition that will have a positive impact on the lives of the other 11 million children who need our services. I believe this will happen if we stay focused on our original vision of combining caring adults, caring communities and caring and accountable delivery systems.

Bill Milliken Founder and Vice Chairman 31 communitiesinschools.org

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