Senior Management Team DIRECTORS PROGRAM SITES Gems Head Start 60 West 117th Street Harlem Children’s Zone George Khaldun Facilities The Baby College Chief Operating Officer Jim Adamec 2037-39 7th Ave. (212) 369-3577 2006-2007 Biennial Report Mindy S. Miller Director (212) 665-9832 Deborah Carroll Vice President, Development Director Executive Chef Marilyn Joseph Tracey Costello Director Harlem Gems Uptown Chief Financial Officer Andrew Benson 35 East 125th Street Booker T. Washington Foundation Relations Pre-School Programs Beacon (212) 534-0700 Administrative Office Shana Brodnax Michelle Germaine 103 West 107th St. Paula Mack Senior Manager Director 35 East 125th Street (212) 866-5579 Director , NY 10035 Preventive Programs Evaluation Tarsha Black Harlem Peacemakers (212) 534-0700 Ron Carlos Betina Jean-Louis, PhD Director 1916 Park Avenue Senior Manager Director (212) 289-0661 fax College Success Office (212) 234-6200 www.hcz.org Beacon Programs Major Gifts 147 St. Nicholas Ave. Jazmine Lewis Marlene Fox Jennifer D. Klein (212) 663-0555 Erica Terrell Senior Manager Director Directors President/CEO Laura Vural Geoffrey Canada Elementary, Middle, Practitioners Institute Director HCZ Community Center High School and Rasuli Lewis Community Pride 35 East 125th Street College Programs Director 157 West 122nd St. 212-534-0700 Board of Trustees Robert Madison Latasha Johnson Senior Manager Communications (212) 932-1920 Stanley Druckenmiller Director Chairman Marty Lipp Kaaryn Nailor Training and Coordination Director Director Learn to Earn Mitch Kurz Caressa Singleton 1916 Park Avenue Treasurer Senior Manager Information Technology Countee Cullen Beacon Matthew Blank Carlos Miller 242 West 144th St. (212) 234-6200 Secretary Director (212) 234-4500 Mizetta Wilson Wallis Annenberg Director Human Resources Employment and Gary D. Cohn Conrad Pinnock Technology Center Midtown Family Place Zoe Cruz Director 304 West 117th Street 457 West 51st St. Joe DiMenna Special Events (212) 369-5912 (212) 315-1707 Joe Gregory Tuere Randall Kristen Sheehan-Levine Pandora Wise Mark Kingdon Director Director Director Kenneth G. Langone Policy and Special Family Development Truancy Prevention Sue Lehmann Projects Program Project Class 309 West 134th St. Marshall J. Lux Kate Shoemaker 689 Lenox Ave. (212) 234-6714 (212) 281-7000 Richard Perry Director Kitara Bingham Deborah Gonzalez Raj Rajaratnam Director Director Laura Samberg Family Support Center TRUCE Steve Squeri 207-211 Lenox Avenue 147 St. Nicholas Ave. Jeffrey B. Swartz (212) 666-7390 (212) 663-0555 Wilma Morton Laura Vural Director Director Harlem Gems TRUCE Fitness and 41 West 117th Street Nutrition (212) 876-0633 147 St. Nicholas Ave. (212) 864-7159 Monalisa Tolbert Director

DESIGN BY Iris A. Brown Design, iabdny.com Letters from the Chairman & the President “If you volunteer or give money to the Harlem Children’s Zone, you know you will get a high rate of return.” —PRESIDENT BILL CLINTON

believe in the American Dream, which is to say that I don’t believe it down the wrong path. It can cost upwards of $50,000 a year to imprison a he past two years have seen our agency grow tremendously — both Because we have been fortunate to receive attention from national media, Iis just a dream. But for kids in Harlem and other poor communities, that young person, and the lost contributions that that man or woman could have Tin Harlem and in the national dialogue of how to break the cycle of genera - we have received calls from many other communities. Our Practitioners dream is often obstructed by some very real, very tough barriers. made to society are many times that amount. The country cannot afford to tional poverty. Institute has met with groups from New Orleans to the Bahamas to Israel. The statistics about outcomes for these kids are pretty grim. Our country continue the status quo. What has become very clear is that getting to children early on and stay - Like us, they are confronted with a tough range of issues that are keeping needs to go beyond politics, beyond our own self-interests, and change the That is why I want to thank our supporters for their vision and generosity, ing with them throughout their young lives works. Unfortunately, what has their kids from achieving their potential and joining the economic main - odds for these kids. We cannot tinker at the edges anymore. and why I am proud to be a part of this incredible HCZ team. I look forward also become clear is that the need for a comprehensive approach to saving stream. These communities have come to the hard-won realization that The HCZ team recognizes the magnitude of this crisis and – thanks to an to participating in the growth of its success. kids in our poorest communities is more dire than ever. piecemeal solutions are too limited; the only way to successfully invest in unprecedented gift from The Starr Foundation – has undertaken Phase 3 of Our kids face an incredible range of challenges: from crumbling schools a child is comprehensively and over the long term. our growth plan. As of January 2007, we increased the HCZ Project area to to stressful home situations to a toxic popular culture that glorifies the exact What they see here in Harlem is that when our children are given almost 100 blocks. To ensure HCZ maintains its high degree of effectiveness wrong role models. Make no mistake, turning one young life around, much the right opportunities and a sustained system of support, they can do and accountability, the organization has strengthened its management infra - less 10,000, is a huge challenge that takes years of careful, sustained work. extraordinary things. structure and added energetic new members to the Board of Trustees. But in Harlem, we have assembled a terrific team of bright, ambitious and With the help of our donors, HCZ’s annual budget grew to $50 million loving adults to remove the roadblocks to success for our kids; to make sure Stanley Druckenmiller over the last two years. That may seem large, but with the organization serv - the promise of each young life — regardless of the community into which Chairman ing over 16,000 children and adults, it is actually only a few thousand dollars they are born — has the best chance of being fulfilled. As a result, kids in Board of Trustees per participant. In reality, that is an incredible bargain considering the socie - Harlem today are winning chess tournaments, creating prize-winning videos, tal costs of dealing with the hundreds of thousands of poor children who go taking home karate trophies, beating the stock market and, most importantly, succeeding in school and in college. Geoffrey Canada President and CEO

-2- -3- CZ has created a network of while students and their parents are offered Hprograms that focus on children at every level healthy cooking classes. TRUCE Fitness and Nu - of their development, from birth through college. trition helps middle-school kids improve their To build out the HCZ pipeline, we added the nutrition, fitness and knowledge of health is - following to our array of free programs: sues. To give families better access to fresh fruits and vegetables, HCZ holds a farmers mar - HCZ Project Phase 3 With a major gift from ket each month where families can get over 30 The Starr Foundation, HCZ launched an un - pounds of produce for a nominal fee. precedented expansion of the Harlem Children’s Zone Project. Beginning in January 2007, the Investment Camp This personal-finance edu - coverage area grew from 60 blocks to almost cation program is taught by volunteers from 100 blocks. The Zone Project’s goal is to serve Lehman Brothers and uses a curriculum created 15,000 children and 7,000 adults by 2011. by the company’s employees. Each week, the volunteer teachers work with 100 students in The Three Year Journey Building on the suc - nine classes from various HCZ sites. The students cess of The Baby College ® parenting workshops, learn about bank accounts, the importance and HCZ created a program for the parents of three- how-to’s of saving, as well as investing in the year-olds who have won the early lottery for the stock market. Each team picks a portfolio of 1. Promise Academy Charter Schools. Over several stocks and if the team’s picks make a profit, the months, the program teaches parents about the members split the proceeds. In 2007, the partic - 2. “An organization that has set out to development of their child, building language ipants shared $14,000 in profits. skills, as well as enhancing their parenting prove that poor, black children can skills. Held on consecutive Saturdays, the pro - College Success Office HCZ has formalized its — gram invites parents to bring their children, support and assistance for students who have and do succeed.” who are provided with activities that are both gone on to college from HCZ programs. The fun and enriching. College Success Office helps high-school stu - dents with the process of getting into the most A Cut Above To help students in the critical, appropriate college, then assists them through - but difficult middle-school years, the Children’s out their college years. CSO gives college schol - Zone ® Project has created an after-school pro - arships and keeps in regular contact with the arlem Children’s Zone ®, Inc. has a range of services and activities on nights, In 1997, the agency began a network of pro - gram that begins with sixth-graders and stays students, helping them with everything from experienced incredible growth – from the weekends and summers. grams for a 24-block area: the Harlem Chil - H with them through college. It creates a parallel time management to adjusting to their new envi - number of children we serve to the breadth of In the 1990s, to help keep local schools dren’s Zone Project. In 2007, the Zone Project pipeline of support for children not in the HCZ ronment, from financial aid to getting valuable our services. But one thing has stayed the same: safe, the Peacemakers program began placing grew to almost 100 blocks and served 7,400 Promise Academy schools, offering academic corporate internships during their breaks. HCZ the agency’s “whatever it takes” attitude when it AmeriCorps participants in classrooms. These children and over 4,100 adults. assistance, leadership development, job-readi - program graduates were offered more than $2.3 comes to helping children to succeed. young people were a welcome presence assist - Over the years, the agency introduced sev - ness workshops, as well as high-school and col - million in scholarships in 2007. The organization began in 1970 as ing teachers during the school day and then eral ground-breaking efforts: in 2000, The Baby 3. lege preparation Rheedlen, working with young children and running programs after school. College parenting workshops; in 2001, the 1. As part of HCZ’s Phase 3 their families as the city’s first truancy- In the late 1990s, HCZ ran a pilot project Harlem Gems pre-school program; also in expansion, the number of Learn to Earn This after-school program helps prevention program. that brought a range of support services to a 2001, the HCZ Asthma Initiative, which teaches pre-kindergarten students high school juniors and seniors improve their Through the 1980s and 1990s, the crack single block. The idea was to address all of the families to better manage the disease; in 2004, a will double. academic skills, as well as prepare for college 2. As part of HCZ’s Obesity epidemic tore through Harlem; open-air drug problems that poor families were facing: from high-quality public charter school; and in 2006, and the job market. The students receive home - Initiative, we hold a farmers markets flourished while families disintegrated. crumbling apartments to failing schools, from an obesity program to help children stay work help, tutoring, SAT and Regents test prepa - market each month so our While many inside and outside Harlem gave up violent crime to chronic health problems. healthy. families have access to fresh ration, summer jobs and job-readiness hope, HCZ’s staff believed that new approaches It created a 10-year business plan, then to Under the visionary leadership of its Presi - fruits and vegetables for only workshops. were necessary. ensure its best-practice programs were operat - dent and CEO, Geoffrey Canada, HCZ continues five dollars. 3. High-school students in the In 1991, the agency was among the first in ing as planned, HCZ was in the vanguard of to offer innovative, efficiently run programs that Obesity Initiative Because 60 percent of black new Learn to Earn program the city to open a Beacon Center. Our Countee nonprofits that began carefully evaluating and are aimed at doing nothing less than breaking adults in Harlem are overweight, HCZ created get help preparing for college Cullen Community Center turned a public tracking the results of their work. the cycle of generational poverty for the thou - this multi-pronged program to fight obesity and and the workplace. school that used to shut its door at the end of sands of children and families it serves. related illnesses. The Promise Academy Charter the school day into a community center offering Schools serve wholesome, freshly made food,

-4- -5- ractitioners Institute. Though the number HCZ feels our comprehensive approach to Pof children and adults served by HCZ is ambi - educating children and strengthening families “...tackling tious, those numbers are dwarfed by the mil - can be successful in other communities as well lions of children, particularly those of color, as Harlem, so we created the Practitioners Insti - decades of decline who are being lost to the chronic poverty of tute, which shares information about our work America’s inner cities. with others. and poverty with The statistics are as frightening as they are sad. The goal is to help communities so they can a no-nonsense,  In 2006, 13 million children were poor, an identify their resources and needs, then organ - increase of more than 10 percent since ize a coordinated, interdisciplinary strategy. business-like 2000. For a small fee, a community delegation can attend either a three-hour or three-day work -  Two of every four black babies are born approach.” into poverty. shop. Because the agency cannot meet all the —CLEVELAND PLAIN DEALER  Only 50 percent of black students and 53 requests that come to us, we only offer work - percent of Latino students graduate on-time shops to groups who already have the resources with a regular diploma. necessary to initiate a large-scale, comprehen -  By their mid-thirties, six in ten black men sive strategy. who dropped out of school have been in The Practitioners Institute has worked with prison. 70 groups across the United States, from Florida  In 2007, the 50 states spent $44 billion on to California, and with delegations from 24 corrections. countries, from Indonesia to Romania.

What Drives HCZ’s Work?

Delegations from around the world have visited HCZ to learn about its innovative programming, including a visit from Prince Charles and, Camilla, the Duchess of Cornwall, of England.

COMMUNITY-BUILDING In a devastated neigh - BEST PRACTICES A hallmark of HCZ’s work has borhood such as Central Harlem, the fabric of the been the ongoing creation of innovative, effective 1community itself must be rewoven. HCZ works to 2programs. As every parent knows, the challenges strengthen block and tenant associations, then a child may face can come at any time and in partners with them to restore common spaces, many forms. For that reason, HCZ has worked to such as streets and parks, as well as to revive the construct programs that best serve a child at every sense of a cohesive community spirit. The goal is phase of his or her development, and then moni - to create a self-sustaining, enriching environment tors the results to continuously enhance them. in which success becomes the norm.

SCALE There are 13 million children living in EVALUATION HCZ has a four-person Evaluation poverty in the United States, with black and Latino Department that carefully tracks each one of our 3 children disproportionately represented. HCZ 4 programs, keeping every staff member account - believes that our country cannot afford to save able for the results of their work. The department kids by the tens or hundreds while hundreds of establishes relevant criteria, then keeps a close thousands are being lost. We must design large- eye on outcomes, helping managers determine scale, successful programs that save kids at the what’s working, what’s not working, and what cor - same level as the current systems fail them. rective action is necessary.

1.

-6- -7- he Harlem Children’s Zone Project, called “one Harlem Gems Head Start has the same of the most ambitious social-service experiments structure and curriculum as the Harlem Gems, of our time” by The New York Times , is a unique, but it is funded by Head Start. comprehensive approach to rebuilding a commu - Community Pride works to help organize nity so that its children can stay on track for col - and improve the neighborhood. While Community lege and the workplace. Pride worked with three large housing projects, In 2007, The HCZ Project embarked on Phase participation in resident associations has jumped 3, expanding its network of programs to 20 percent and helped them obtain over $40,000 almost 100 blocks of Central Harlem. in grants and donations. The HCZ pipeline begins with The Baby Employment and Technology Center College, a workshop series for parents of teaches teenagers and adults computer and job- children 0-3. The pipeline goes on to offer best- seeking skills. In 2007, it moved to a larger space, Tpractice programs for children of every age allowing it to almost double the number of youth T it can serve. through college. For a child to do well, his or her family needs Peacemakers places young men and women to do well, so the HCZ Project also works to from AmeriCorps in public schools as teachers’ 1. The Employment and Tech - strengthen and support families. Since families assistants and as organizers of after-school en - nology Center moved to a richment programs in those same schools. The larger space, allowing it to are impacted by the community around them, almost double the number of HCZ also works to repair the fabric of Harlem, program is now in seven public schools and has teenagers it can serve. which has been devastated by crime, drugs and added, A Cut Above, a middle-school initiative to 2. Project SMART is a com - support children academically, which will eventu - puter-based literacy program decades of poverty. run by HCZ Peacemakers in The HCZ Project began as a one-block pilot in ally serve 1400. The Peacemaker program served 1. local public schools. the 1990s, then was expanded to 24 blocks and 1,836 children in 2007. One of its chess teams 3. TRUCE Director Laura Vural then 60 blocks. The Project has been guided by a placed second in national competition and an - (second from left) and student Ndeydaba Diakhate receive the 10-year business plan, though it surpassed its own other placed third. Coming Up Taller Award from goals in fiscal year 2007, serving 7,400 children TRUCE is an after-school program that gives First Lady Laura Bush for and 4,100 adults. The goal is to serve 15,000 chil - high-school students the opportunity to grow aca - being one of the top programs demically and socially as they find their voices in a in the nation for youth devel - dren and 7,000 adults by fiscal year 2011. opment through the arts. Some of the component programs and their range of creative pursuits. In January 2006, 4. More than 97 percent of accomplishments over the past two years include: TRUCE received the Coming Up Taller Award as Baby College graduates had one of the top arts-related youth development up-to-date or scheduled im - The Baby College is a nine-week program munizations; two-thirds who that teaches parents of children from 0-3 about programs in the nation. read to their children less than child development and child-raising skills. The TRUCE Fitness and Nutrition works with five times a week increased Baby College graduated 641 parents and care - middle-school students to improve their physical 2. 3. 4. their reading time. givers in the years 2006-2007. fitness and overall health –a key component of Harlem Gems is a pre-school program for our Obesity Initiative– while supporting them four-year-olds that has an extended day and an academically. In 2006, students from the program extended year. Children learn in English, Spanish presented at the United Nations about their and French, as well as learn crucial social and rooftop farming program. In 2007 alone, its academic skills. Measured by an independently karate team brought home over 145 trophies. “For all its comprehensive services and all the implications for administered assessment, 100 percent of the Harlem Gems were “school ready” for six broader policymaking, the zone remains at heart a neighborhood consecutive years. organizing strategy, one that emphasizes the power of adults getting involved and the need for mutual accountability for

positive results….” —POLICYLINK’S “WHY PLACE MATTERS: BUILDING A MOVEMENT FOR HEALTHY COMMUNITIES”

-8- -9- ur Kids 3. In March 2006, a fifth- Clients Served, Including Children grade chess team from the HCZ OVERALL HCZ PROJECT HCZ Peacemakers after- “I’m fully aware of the epidemic of our black men going to jail, 1. HCZ Peace March, August 16,000 16, 247 12,000 2005, at Marcus Garvey Park. school program placed second Every year, thousands of HCZ in a national competition. In 11,700 dropping out of high school, or on drugs or being killed. Having 2007, two elementary-school 14,000 kids and families march 14,411 10,000 10,544 through the streets of Harlem teams placed third and fourth three black men that I’m raising is very frightening for me. I to call for an end to violence in the citywide champi - 12,000 onship. The chess program in the neighborhood. 8,000 don’t know that I could have done this in this environment with - 2. The TRUCE Fitness and overall won more than 70 10,000 10,680 Nutrition karate team won trophies. KIDS 7,400 145 trophies in competitions 4. In the 2006-2007 school 9,590 out the Harlem Children’s Zone. It’s also created a village of 8,000 KIDS 6,000 KIDS in 2007. year, eight HCZ teams partici - 6,080 —FLO BROWN, A PROMISE ACADEMY PARENT, TO COX NEWSPAPER GROUP pating in the Lehman Broth - KIDS sorts for me.” ers Investment Camp picked 6,000 their own stock portfolios and 4,000 O split $14,000 in profits. 4,000 2,000 2,000

0 2006 2007 0 2006 2007

‘04 ‘05

1. 2. 3. 4.

-10 - -11 - he Promise Academy ® Charter Schools were created as a partnership with Harlem “With 40% of their Children’s Zone, Inc. to directly impact the center - piece of a child’s educational life. students overweight, The venture began in September 2004 with the opening of Promise Academy 1 elementary and nutrition isn’t an middle schools, followed in September 2005 by Promise Academy 2. Both PA 1 and PA 2 will elective class, it’s eventually run from kindergarten through 12th integral to their 1. 2. grade, taking on a new grade each year. —KIWI MAGAZINE 3. The mission is to give children in Harlem a .” high-quality, well-rounded education; to assemble Ta talented, loving staff that creates an enriching 1. ChildreTn at Promise Academy 2 practice atmosphere where children know they are cared Beethoven’s “Ode to Joy.” about and that there are high expectations of them. In its citywide progress reports, the New York 2. In 2007, a team from HCZ Promise Academy Middle The children at the three Promise Academy City Department of Education gave HCZ Promise School won first place in a schools have an extended school day and year, Academy an “A” rating for its performance. citywide charter school math giving them the time they need to master core In 2006, a health clinic opened in the middle- competition. skills as well as explore the arts and sciences. 3. Cornell University works in school building so the students could get free partnership with our staff to To make sure they are ready for the rigors of the medical, dental and mental-health services. The improve the teaching of school day, the students receive healthy, freshly Harlem Children’s Health Project is a partnership science. made meals each day and they have daily of the Children’s Health Fund, the Mailman School 4. A Promise Academy 1 first grade class copied a physical activity. of Public Health at , New York- Modigliani portrait. The school staff works hand-in-hand with the Presbyterian Hospital and HCZ. In addition the 5. A school-based clinic offers after-school staff, which offer the students project works with the elementary schools to students free medical services and the chance to learn at the academic help, as well as various clubs — from identify children’s unmet health needs and to Lehman Brothers Health Pro - chess to Suzuki violin; from photography to web facilitate necessary care. motion Learning Lab. design. There is also a Saturday Academy for With many of the students spending ten or 6. Students put on Shake - speare’s “As You Like It.” children who need additional help with their more hours a day at the school, they are im - English and math skills. mersed in the school’s culture of achievement and Results have been encouraging. Though the intellectual growth. Today, many of the Promise middle school’s initial cohort arrived at the school Academy students feel it’s “cool” to be smart and in 2004 with less than 10 percent at grade level in firmly believe they can and will succeed. math, last spring they had 63 percent at or above grade level in the statewide math exam. Part of the reason for that big turnaround has been that each Saturday volunteers from Lehman Brothers tutor the middle-school students in math.

4. 5. 6.

-12 - -13 - “As many cities struggle with pockets of crime and poverty, the zone has become a rare national beacon, widely admired and studied by local governments and charities because of its success in bringing education, social services, medical help and a sense of community to thousands of children and families.” —COX NEWSPAPERS

“[Geoffrey] Canada wants to prove that all kids can succ—eAeSSdOC.IA”TED PRESS CZ’s Beacon Programs were In 2006, Countee Cullen added a Family Social Hcreated before the Harlem Children’s Zone Night where families get together and do various Project, but they also have a holistic “whatever it activities as a group. The center also added the takes” approach to meeting the needs of the Rising Stars middle-school academic enrichment surrounding community. program and several programs for adults, includ - The Beacons transform school buildings into ing GED, computer and job-readiness classes. community centers, offering programs during the The Booker T. Washington Beacon program is oster Care Prevention Programs work to tration for Children Services. For that reason, the Project CLASS (Clean Living and Staying afternoon, evening and weekend. They offer pro - located in MS 54 on West 107th Street. In 2007, it stabilize and strengthen families so that their city has increased our capacity from 355 to 410 Sober) serves up to 50 families. It specializes in F grams for youth and adults, and in everything served 1,500 residents, including 1,100 young direct-care client families. providing referrals to drug- and alcohol-abuse children are not placed in foster care. people. There are five HCZ Preventive programs: programs, as well as creating, implementing and from education to the arts to recreation. Each ner) for the surrounding community. The center HCZ operates five programs under contract In addition to its wide range of education, arts The Family Development Program serves monitoring drug- treatment service plans. summer, they offer all-day camp so children have has created a strong relationship with two housing from the Administration for Chil - and recreation programs, Booker T. Washington 120 client families and specializes in access to It recently added the Babies Initiative , which a safe, enriching place to spend their time instead projects, St. Nicholas and Lincoln, that are located dren’s Services. These programs offer a variety of has been busy building out Moving Forward, mental-health professionals who collaborate with is offered to 20 families with children ages five of hanging out on the street. in the northern section of the HCZ Project. services, such as substance abuse referrals, enti - which targets young men and women who are no caseworkers to support therapeutic interventions. and under who are at immediate risk of being put The Countee Cullen Community Center was To help community members maintain a tlement assistance, legal consultations, and emer - longer in school, but not fully employed. Moving The Family Support Center serves 90 client in foster care. This intensive program works to get one of the first Beacons in New York City, created healthy lifestyle, it began holding a monthly gency food aid. The programs also work with Forward works with young people so they can ob - families, and specializes in providing crisis-inter - family members whatever services they need in in 1991. The Center is located in PS 194 on West farmers market, where families can pick up 35 other HCZ programs to strengthen the safety net tain a high-school equivalency degree and then go vention services, referrals, advocacy, groups on order to stabilize. 144th Street in Harlem. In 2007, it served over pounds of fresh fruits and vegetables for a for our children and families. on to a vocational school or other higher-learning parenting, and anger management. Truancy Prevention has 90 client families 1,100 children and 400 adults. Its summer camp nominal fee. Harlem has had some of the highest foster- institutions. The Midtown Family Place has 45 client with at-risk children, and conducts groups on do - served 550 children from the ages of 5½ to 18. In January 2007, the Community Center was care placement rates in the state, HCZ’s programs The HCZ Community Center, located in our families and is based in Hell’s Kitchen. It provides mestic violence, on parenting called the Parenting In 2007, Countee Cullen started a track and able to show off its range of academic, arts and have had very few placements. This is due to our 125th Street headquarters, is not an official Bea - counseling, referrals and advocacy, but also con - Journey, as well as one for teen-agers. field program and two of its young runners placed recreational programs for a visit from England’s commitment to intensive home visits, direct con program, but operates in the same holistic ducts an after-school program for children ages 5- second and third in the “Fastest Kid in the City” Prince Charles and the Duchess of Cornwall. service referrals, and thorough follow-up of client way. It provides after-school enrichment program - 12 and a summer program, a literacy program competition held in Madison Square Garden. services. This commitment has led to some of the ming for the HCZ Promise Academy Middle and a food pantry. Its newest initiative is called highest ratings from the New York City Adminis- School students, as well as programming and spe - The Young Authors Club, a creative writing series cial events (such as an annual Thanksgiving din - for students.

-14 - -15 - arlem Children’s Zone, Inc., has expanded both the quantity and quality of its services over the past two years. Thanks to the remarkable generosity of its donors, the organization has begun Phase 3 of its HCZ Project business plan. As HCZ readied itself to launch Phase 3, expanding to almost 100 blocks, the preeminent management consulting firm McKinsey & Co. generously offered their strategic expertise pro bono to ensure the appropriate infrastructure was in place so the expansion would meet its am - bitious goals. Importantly, as the organization has grown, it has maintained its fiscal stability through careful fis - cal oversight of capital spending and program budgeting. Its management has also been remarkably stable: Geoffrey Canada has been President/CEO since 1990, Stan Druckenmiller has been Chairman since 2001 and many of the Trustees have served on the Board for years. HWhat Funds Go For HCZ has created a unique public-private partnership that has shown the commitment of both sec - tors to support socio-economically disadvantaged children and families. Government’s imprimatur gives the organization additional credibility, while the private sector’s involvement invites a unique 20 % level of accountability and the encouragement to innovate. ADMINISTRATIVE HCZ has also embarked on a Capital Campaign to grow its endowment to $150 million. Just as universities and foundations create endowments to help sustain and grow their mission and services, we want HCZ – we need HCZ – to be here not just when today’s pre-schoolers get to college, but for 80 % generations to come. PROGRAMMING HCZ, Inc. has grown to serve over 10,000 children and over 5,000 adults. The accomplishments and the audacity of the organization’s ambition are unprecedented, and yet the need – in Harlem and across the nation’s urban areas – still dwarfs our efforts. JULY 1, 2005 – JUNE 30, 2006 JULY 1, 2006 – JUNE 30, 2007 Fortunately, other communities are recognizing the need to take a holistic systemic approach to Unaudited breaking the cycle of generational poverty. They see our low cost-per-child-served, our successes, OPERATING INCOME and are eager to replicate, and we are equally eager to have our learning leveraged.

Public $ 7,401,109 16% $ 8,156,553 11% Corporations/Foundations/Individuals 1 $ 25,659,766 54% $ 49,070,965 65% Special Events $ 4,729,830 10% $ 11,758,894 15% Mitch Kurz Other Income $ 184,430 0% $ 231,517 0% Treasurer Gain on Investments $ 9,560,036 20% $ 6,613,698 9% HCZ, Inc. Total Support & Revenue 2 $ 47,535,171 100% $ 75,932,827 100%

OPERATING EXPENDITURES

Program Services $ 26,404,835 79% $ 30,506,330 79% Management & General $ 5,935,170 18% $ 6,787,267 18% “Only 1% of the charities we’ve rated have received at least Fundraising $ 1,242,260 4% $ 1,187,490 3% Total Operating Expenditures $ 33,582,265 100% $ 38,481,087 100% 6 consecutive 4-star evaluations, indicating that Harlem Capital Expenditures $ 1,288,248 $ 1,401,371 Children’s Zone outperforms most charities in America in its HCZ, Inc. Total Expenditures 3 $ 34,870,513 $ 39,893,102 efforts to operate in the most fiscally responsible way possible.” —CHARITY NAVIGATOR 1. Includes funds received for Capital Campaign: $5,129,025 in 2006, and $11,876,711 in $2007. Also includes multiple year grants recorded as operating income because of FASB 113 and 114. 2. Amounts are exclusive of revenue for HCZ Promise Academy I (FY 2006: $5,930,204 and FY 2007: $8,598,208) and for HCZ Promise Academy II (FY 2006: $1,560,179 and FY 2007: 2,459,545). 3. Amounts are exclusive of expenditures for Promise Academy I (FY 2006: $5,927,188 and FY 2007: $9,235,062) and for Promise Academy II (FY 2006 $724,490 and FY 2007: $2,603,039).

-16 - -17 - $25,000 – $49,999 Polo Ralph Lauren Foundation Goldentree Asset Management, LP Linda H. Riefler AEA Investors LLC Linda E. Rawlings Richard Grasso, Jr. Rockefeller Brothers Fund Janie and Billy Armfield Mr. and Mrs. Richard O. Rieger Mr. and Mrs. Jeff Greenfield Sunny and Abe Rosenberg Foundation Nancy and Bob Ascher Lillie Robertson Mr. and Mrs. David H. Hammond S.E.A.R.C.H. Avenue Capital Management II, L.P. David E. Rogers Th e Per and Astrid Heidenreich Family Mr. and Mrs. Matthew Aaron Salvner Mr. and Mrs. Randy Barker Gary Rosenbach Foundation Robert Santangelo Bass Trading Edgar A. Sabounghi Donald J. Herrema Mr. and Mrs. Curtis Schenker David Boies, Esq. Mr. and Mrs. Richard Siegal Wayne and Wendy Holman Judson Schumacher Boone County Community Partnership David and Vickie Smick The Hyde and Watson Foundation Mr. and Mrs. Michael A. Shay Amy Boyer The State Insurance Fund ITG, Inc. David H. Sidwell James C. Cayne Swanee Hunt Family Foundation Instinet Corporation James H. Simons Mr. and Mrs. Daniel Tapiero Mr. and Mrs. Guillermo E. Jasson Skadden, Arps, Slate, Meagher & Flom LLP $1,000,000 & above Lone Pine Foundation, Inc. Sue and Steve Mandel Mr. and Mrs. Joseph Haleski Jeremy and Christine Chase TemPositions Inc. Alan Jones and Ashley Garrett SONY Corporation of America Annenberg Foundation Charles Stewart Mott Foundation Mr. and Mrs. Jay Mantz Harlem Congregation for Community Mr. and Mrs. Charles Chasin Tishman Speyer Properties William K. Judice Mitchell Stern The Carson Family Charitable Trust River Rock Foundation Michael W. McCarthy Foundation Hearst Corporation Kenneth I. Chenault Tommy Hilfiger Corporate Foundation, Inc. Mr. and Mrs. Howard Kaminsky Carolyn Surgent Edna McConnell Clark Foundation Tiger Foundation Merrill Lynch & Company David B. Heller Foundation Child & Adult Care Food Program Irene Tse Al Kim Susquehanna International Group, LLP Cohn Pevaroff Family Foundation The Meryl and Charles Witmer Phil and Anne Newcomb Mr. and Mrs. David C. House Stephen D’Antonio UBS Securities LLC Beeneet Kothari The Timberland Company Ernesto and Zoe Cruz Foundation Mr. and Mrs. Michael J. Petrick James Family Foundation Davis Polk and Wardell Norman and Rosita Winston Foundation The Krauss Charitable Foundation William Jonathan Treen Michael and Susan Dell Foundation Richard Portogallo The Jarx Foundation, Inc. DeMatteo Monness LLC Th e Marie-Josée and Wojtek Uzdelewicz Mr. and Mrs. Stanley F. Druckenmiller Prudential Foundation The Robert Wood Johnson Foundation Mr. and Mrs. Douglas DeStaebler Henry Kravis Foundation Andrew T. Vaden Th e Niki and Joe Gregory $100,000 – $249,999 Betsy and Sam Reeves KKR Financial LLC Mr. and Mrs. Rajat Dhanda $10,000 – $24,999 Chad A. Leat Alberto J. Verme Charitable Foundation BlackRock, Inc. Rebecca and Olav Refvik The KTR Fund Drake Capital Advisors The ACE Group of Companies Roy Lennox Mr. and Mrs. Sadek Magdi Wahba Mr . Mark Kingdon Susan and Matthew Blank The Reveas Foundation John D. Kovitch Mr. and Mrs. James J. Dunne Mr. and Mrs. Daniel M. Allen Matthew D. Lentz William J. Walsh and Mrs. Anla Cheng Kingdon Bill Brown and Amy Moss John A. Schneider Leitner Family Foundation Paul Fribourg Appaloosa Management L.P. Max H. Levine Weeden & Co., LP Kresge Foundation Bristol-Myers Squibb Foundation, Inc. Mr. and Mrs. Zachary Schreiber The MCJ Amelior Foundation Robert E. Gartland Mr. and Mrs. William R. Araskog Reginald F. Lewis Foundation Heather Willis Mr. and Mrs. Kenneth G. Langone Annie E. Casey Foundation Mr. and Mrs. Neal Shear Mr. and Mrs. David B. MacFarlane Mr. and Mrs. Stephen G. Gellman Mr. and Mrs. Joseph W. Armbrust John M. Long Willkie Farr & Gallagher Lehman Brothers Foundation Mr. and Mrs. Walid A. Chammah Showtime Networks Mariposa Foundation, Inc. Gary Gladstein John P. Armenio Aaron Lubowitz Windels Marx Lane & Mittendorf, LLP Morgan Stanley CIBC World Markets Frank V. Sica Maverick Capital Charities Greater Houston Community Foundation Avanessian Family Foundation Gary G. Lynch Mr. and Mrs. Alan Winters Oak Foundation Steven A. and Alexandra M. Cohen Cordell G. Spencer Barry and Karen Mills Happy Elephant Foundation Dean C. Backer MTV Networks Mr. and Mrs. Thomas Wipf Peter Jay Sharp Foundation Foundation Kat Taylor and Tom Steyer Needham & Company, Inc. Christopher M. Harland Evan Bernardi Mr. and Mrs. Thomas Maheras Kevin G. Woodruff The Picower Foundation Co rporation for Enterprise Development Owen and Jennifer Thomas New York Community Trust Mr. and Mrs. Michael A. Hart Tom and Andi Bernstein Michael C. Mauer YMCA of the East Bay Mr. and Mrs. Raj Rajaratnam (CFED) Mr. and Mrs. Anthony B. Tufariello Mr. and Mrs. Steven Okin Jefferies & Company The Peter and Carmen L. Buck Evie and John McNiff Mr. and Mrs. Randell A. Yuen Robin Hood Foundation Sean E. Cullinan John E. Westerfield The Open Society Institute Nikki and Craig R. Johnson Foundation Mr. and Mrs. Paul M. McNulty Mr. and Mrs. Marc D. Zimman The Samberg Family Foundation The Fledgling Fund Mr. and Mrs. John C. Whitehead Mr. and Mrs. James J. Pallotta Kenyon & Kenyon LLP W.P. Carey Foundation, Inc. Michael Meek Anonymous The Starr Foundation Fabrizio Gallo Anonymous Katarina and Mike Pendy Julie and Paul Kerwin James I. Cash, Jr. Christopher M. Melton Anonymous (3) Gap Foundation Michael L. Perl Mr. and Mrs. Robert A. Kindler Julius Gaudio and Chandra Jessee Franck R. Petitgas Lambert Family Foundation Mr. and Mrs. Geoffrey O. Coley Mercury Foundation of New York, Inc. Bernard F. and Alva B. Gimbel $50,000 – $99,999 Ruth Porat and Anthony Paduano Paul and Julie Leff Coming Up Taller Award from the Marie L. Mole Government Funders President’s Committee on the Arts Mr. and Mrs. Roland Morris National Endowment for the Arts $500,000 – $999,999 Foundation Ian Banwell Robert M. Rayner Adam Levinson & the Humanities The Morse Family Foundation Na tional Institute of Environmental The After-School Corporation Horace W. Goldsmith Foundation Scott Bessent and John Freeman Marshal L. Salant Theodore Luce Charitable Trust Carl A. Contiguglia Patrick J. Mortimer Health Sciences Mr. and Mrs. Joseph DiMenna Mr. and Mrs. James P. Gorman Bloomberg Arthur and Rebecca Samberg McKinsey & Company Everett and Karen Cook Stephen R. Munger Ne w York City Administration Sue Lehmann Simon T. Greenshields Louis Calder Foundation Mr. and Mrs. Joshua Samuelson Monness, Crespi, & Hardt Co., Inc. Edith Cooper and Robert Taylor Willam Myers for Children’s Services The Pinkerton Foundation Hess Corporation The Chilton Foundation Mr. and Mrs. John A. Shapiro Moore Charitable Foundation Mr. and Mrs. Howard L. Hubler Citigroup Mr. and Mrs. Peter Sherk Mr. and Mrs. John T. Morris Leon and Toby Cooperman Jeffrey P. Nedelman New York City Department of Education Indus Capital Partners, LLC Maximilian Coreth Mr. and Mrs. Stanley Shopkorn Mari Nakachi and Daniel Simkowitz Family Foundation Mr. and Mrs. William P. Neuberger Ne w York City Department of Parks & Mr. and Mrs. Benjamin Cross New Visions For Public Schools Recreation $250,000 – $499,999 J.C. Flowers & Co. LLC Mr. and Mrs. Stefano Corsi Paul J. Taubman National Financial Services Mr. and Mrs. Christopher C. Davis New Yorkers for Children Ne w York City Department of Youth & American Express J.P. Morgan Chase Foundation The Dover Fund, Inc. The Tomorrow Foundation Mr. and Mrs. Ashok Nayyar Gary S. Davis Thomas R. Nides Community Development American Express Foundation Stephen S. Jamison The Durst Family Foundation Kenan K. Turnacioglu Mr. and Mrs. John Neary Nathaniel De Routhsch Mr. and Mrs. Stephen P. O’Connor New York State Department of Health Carnegie Corporation of New York Jerker Johansson Kevin D. Eng and Un Hae Song Kimberly K. Walin News Corporation Foundation Mr. and Mrs. William M. Doran Joanne Pace and Walter Luby New York State Education Department Duquesne Capital Management Paul Tudor Jones II J. Michael Evans Warner Music Group Daniel S. Och Mr. and Mrs. Mark D. Eichorn The Pacificus Foundation Ne w York State Office of Children & GE Foundation Karam Kalsi Jeff Feig Mark B. Werner Overbrook Foundation Everett Foundation Paribas North America, Inc. Family Services Goldman, Sachs & Co. Erica and Michael Karsch Fund for the City of New York Mr. and Mrs. Robert White Mr. and Mrs. Gerard Pasciucco Mr. and Mrs. Michael S. Faino Prentice Capital Management Gerald Kerner Thomas Colm Kelleher Mr. and Mrs. Thomas A. Funk Anonymous Peninsula Community Foundation Federal Reserve Bank of Chicago Charles P. Prindiville Mr. and Mrs. Mitch H. Kurz Christy and John Mack Foundation Mr. and Mrs. Amit Gupta Juan-Luis Perez Funding Exchange Quantitative Analysis Service, Inc. Thomas H. Lee and Ann Tenenbaum Mr. and Mrs. Anuj Malhotra Stella and Charles Guttman Foundation Edward N. Pick Pittman Family Foundation GE Corporate Mr. and Mrs. Joseph M. Rault Donor levels are based on cumulative giving and pledged commitments during fiscal years 2006 and 2007, from July 1, 2005 to June 30, 2007.

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