Summer 2012Final Client Portfolio Project

Client Portfolio Assignment 2-5 2

Press Releases 11

Risk Management Analysis 16

Relevant Government Agencies 18

Demographic Analysis of Employees 20

Quarterly Financial Report 22

Executive Profiles 24

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Client Portfolio Assignments 2-5

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Maisie Weinschenk

Client Portfolio Assignment #2

KIPP is a national network of charter public schools. As far as community outreach they

work with multiple different organizations and media outlets all across America. The variety of

organizations they partner with are quite diverse and serve an individual need for a specific

location.

The Philadelphia network of KIPP schools announced a new outreach program to partner

with local colleges and universities. The University of Pennsylvania will become the KIPP

Foundation’s 10th higher-education partner and its first Ivy League school. This relationship can

be mutually beneficial if executed well. The university can work to increase diversity, and KIPP

students have been given a pledge for full cinancial need of all qualified undergrads. Other KIPP

partner schools include Colby College in Waterville Maine, Davidson College in DAvidson N.C.,

University of Houston, Franklin and Marshall College in Lancaster, San Jose State University in

San Jose California, Mercy College in Dobbs Ferry N.Y., Tulane University in New Orleans,

Morehouse College in Atlanta, and University of Pennsylvania.

KIPP also partners with an organization called Pipelines Into Partnerships. This

organization helps to steer minority students into college. Under this program, the college’s

admissions office outsource the responsibility of choosing 17 members of its incoming freshmen

class to KIPP, as well as to the Boys and Girls Club. In these instances, the relationship between

the KIPP high schools and the colleges must be very strong. Both sides of this partnership can

benefit. The colleges save money on time and recruitment while also getting students to commit

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to four years of college, as well as giving their campus a diversity boost, and the students get

special attention to ensure that they graduate in four years.

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Maisie Weinschenk

Client Portfolio Assignment 3

The KIPP Foundation functions as a non-profit organization and relies heavily on

philanthropic partners who make significant contributions to the KIPP Foundation. Along with

donations, KIPP relies on volunteers and their volunteer board of directors to keep the foundation

going in the right direction. The national foundation of KIPP recognizes dozens of donors that

transform what KIPP can achieve every year. From the $60,000,000 and above contributors: the

Doris & Donald Fisher Fund and the Walton Family Foundation. In the $5,000,000-$9,999,999

you’ll find the Bill & Melinda Gates Foundation, the Citi Bank Foundation, and countless others.

The list goes on from there with organizations like the National Geographic Education

Foundation, State Farm Companies Foundation, the Jay Pritzker Foundation, NFL Charities, and

Congregation Emanu-El of the City of New York.

The KIPP Foundation did not release this information directly, but it is my personal belief

that their strategy for finding donors is to work with communities directly and make their

statistics very accessible so everyone can easily see what good they are doing. They have

developed a Leadership Competency Model that serves as the anchor for the Foundation and

helps to recruit leaders and donors. They hold a KIPP School Leadership Program Summer

Institute. KIPP requests proposals for a university partner to host its five-week KSLP Summer

Institute. This allows the foundation to present their missions and talent to the public.

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In Chicago specifically, the philanthropic support directly helps students go to college.

85% of costs to provide the education to these underserved students comes from local, state, and

federal funding. The other 15% comes from individuals and organizations. Their donations cover

the necessary “extras” the students receive like the extended school day policy, Saturday School,

end of the year field lessons, and the KIPP Through College Program.

One way that they Chicago branch finds their donors is to hold benefit dinners. There was

recently one on May 11, 2012 in the home of Don and Edna Weiss. At the benefit the Executive

Director of KIPP Chicago spoke along with the Founder of KIPP College Prep.

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Maisie Weinschenk

Client Portfolio Assignment #4

The KIPP Foundation uses multiple forms of media to relay their message to their

publics. They make this information readily on their website. Their media consists of national

news, local news, editorials, press releases, a KIPP Blog, TV clips, and KIPP-produced videos.

Websites like Onlineschools, Edweek, blogs.edweek, NOLA, and BizJournals have all

written feature pieces on KIPP schools. Topics of these articles range from politics, celebrity

speakers, statistics about the schools, and spotlighting staff members of the schools.

Larger national news organizations that have picked up stories on KIPP include CNN,

FOX, MSNBC, Chronicle, ESPN, Forbes, and NBC Nightly News. These organizations covered

KIPP with both print media and broadcast. KIPP does an excellent job being at the forefront of

the charter school debate and allows itself to be used as an example in a larger discussion of

education reform. Because of their apparent openness, they receive more coverage from national

and local news organizations.

The press releases KIPP puts out focus mainly on University partnerships, awards schools

are offered, specific school internal restructuring, investments, new schools opening, and faculty

spotlights.

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For social media, KIPP has their own blog. Their blog works as a portal for their other

social media outlets like Facebook, Twitter, LinkedIn, Youtube, and Email Newsletter sign-up.

The Blog itself consists of school happenings, spotlights on educators, and news about education

reform.

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Maisie Weinschenk

Client Portfolio Assignment #5

A crisis for the KIPP Foundation lays within each individual community. As of now,

charter schools like KIPP get their funding from the local government and private donors. I

foresee a growing resentment in under-privileged communities that are unable to hold unto their

public schools as more and more schools get shut down for being inefficient. The biggest

problem KIPP has in communities is that they simply do not have enough space for every

student. This means that they must hold a lottery for the students to fill in empty spaces. Oprah

featured this side of charter schools on an education special, as well as a documentary Waiting

For Superman. These types of press show charter schools in a good light because of course all

students want to get in, but what about the students who aren’t lucky enough?

With mounting pressure on the average public school to stay afloat, and the teachers

union getting angrier at charter schools I see this as a possibly toxic situation. The pr crisis that

could ensure would involve the community turning on each other. Charter school families verse

public school families. With the statistics showing that charter school children outperform and

graduate at a higher rate than the average inner-city public school child, I suspect the public

school families that aren’t allowed in will feel more and more persecuted and victimized while

they watch their neighbors kids move on to college.

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If this hostile type of environment would spread, the teachers union for public schools

would gains support through families that would believe that more money and resources needs to

be put into maintaining the public schools their children go to. The teachers union is a large force

and has a big impact on legislation in counties when it comes to education.

KIPP could handle this in a way that would be beneficial to their schools and their cause.

What KIPP has going for them is that their schools work in a time when education dollars are

being cut. The angle KIPP would need to take is that they are the example for a new type of

education and pressure public schools and legislators to adapt their new system of education or

students will continue to suffer. KIPP can plainly state that they do not have the resources to

educate all children, but that they firmly believe that all children, everywhere deserve an

excellent education and that they are committed to the mission of education equality for all

American children. They can team with legislators who wish to expand the charter system across

inner city neighborhoods and show that they are not promoting their brand of school specifically,

but the charter school system as a whole. Focusing on the children, and not the historic nature of

the neighborhood will make it easier to make the case that older public schools that are not doing

well must be terminated and more charter schools must be built to replace the old ones. They

must take the teachers union on and challenge them to put children first over their strict

restrictions on how a teacher can be fired and put on probation for not being efficient.

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Press Releases

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KIPP statement: NEPC Report by Bruce D. Baker on “Spending by the Major Charter

Management Organizations” Official Statement | May 3, 2012 Dr. Bruce D. Baker’s new report

for the NEPC, which received funding from foundations established by the American Federation

of Teachers and the National Education Association, compares per pupil expenditures at charter

schools in Ohio, Texas, and New York City with district schools of similar size. The NEPC

report incorrectly asserts that two KIPP established regions – KIPP Houston and KIPP New York

– spend $2,000 and $4,000 more per student respectively, than similarly-sized district schools.

This false claim is manufactured by (a) failing to include sizable district school expenditures in the comparison with KIPP schools, and (b) attributing to KIPP schools various expenses that the study does not likewise allocate to district schools. If the researchers accounted for these differences and created a true ‘apples to apples’ comparison, the spending gap between KIPP and district schools would be virtually eliminated.

For all KIPP schools and regions in Dr. Baker’s study:

• KIPP schools and regions were expanding grades during the period of 2008-2010, and continue to do so. KIPP schools start with one grade and add a grade each year until they are fully grown public schools. Costs per student at our schools fall each year as grades are added, enrollment increases, and schools ultimately mature – spreading costs over a larger number of students. The growing KIPP schools in the study were inaccurately compared to mature district schools offering a full set of grades and therefore reflecting a very different cost structure.

• The report purports to focus only on school site-specific costs to generate a more accurate per pupil expense analysis. Consistent with that approach, the report excludes various non-site-specific district costs – yet includes KIPP spending on our KIPP Through College program, which supports students across the network after they complete KIPP schools and embark on the road to and through college. Those costs should not have been attributed to KIPP per-pupil spending, as this is inconsistent with the study's stated focus on school-specific costs.

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• KIPP schools in Texas must secure their own buildings, which requires capital expenditures and debt financing. We find no evidence in this report that similar facilities and debt services expenses were included in the school level spending figures for district schools.

KIPP New York City – The report compares four KIPP charter schools to mature New York City district schools. All four KIPP schools were in growth mode at the time of the study and did not yet offer all grades, which inflates their per pupil costs relative to fully mature district schools.

The report contends that KIPP Academy New York spends $7,000 more per student than a similar-size district school by lumping in substantial non-school-specific costs – such as central administrative staff and the KIPP Through College support program for KIPP graduates – that were not likewise included in the calculation of district school, site-specific per pupil expenses.

In addition, it appears the NEPC researchers substantially under-reported district school per-pupil costs by not counting pension contribution costs, which the NYC Independent Budget Office estimated at $2,200 per student in FY 2009, or more than $2 billion annually in total pension contributions for NYC district schools. In contrast, pension expenses were included in the KIPP school costs reported in the study.

When these inaccuracies and inconsistencies are properly accounted for, the spending gap between KIPP and New York City Schools is virtually eliminated.

KIPP Houston – The majority of KIPP schools included in the report were not fully mature schools, which inflates per pupil costs relative to district schools with full enrollment. The researchers also included costs that they did not attribute to districts, such as interest on debt service, depreciation, central administrative expenses, and KIPP Through College – a student support program for KIPP graduates.

In addition, expenses for KIPP Coastal Village in Galveston are included in the KIPP costs, even though these students are not counted as enrolled students, driving up per pupil costs. It is unclear if the study adjusted for this nuance. Correcting for these discrepancies would virtually eliminate the KIPP Houston expenditure gap with the district.

Davidson College and Duke University to team up with KIPP schools to promote college

completion

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Press Release | June 26, 2012

Charlotte, N.C. – KIPP announced today that it will partner with Duke University and Davidson College to increase college completion rates for young people from low-income communities.

KIPP –the Knowledge Is Power Program–is a national network of open-enrollment, college-preparatory public charter schools that prepares students for success in college and in life. More than 95 percent of KIPP's 33,000 students in 20 states and Washington, D.C., are students of color and 85 percent qualify for the federal free- and reduced-price meals program. In North Carolina, KIPP has one charter school in Charlotte and two in Gaston that serve more than 1,000 students. A third KIPP school will open in Gaston this summer.

Davidson College, the third college in the nation and the first in North Carolina to sign onto the program, hopes to recruit and enroll a cohort of qualified KIPP alumni beginning in the 2013-14 academic year. Davidson will support mentoring opportunities between upperclassmen and KIPP graduates enrolled at Davison. In addition, 10 rising high school seniors will participate at a Davidson pre-college summer program, called July Experience, beginning in 2012.

“All young people deserve not just a college education, but the best college education for them,” said Davidson College President Carol Quillen, “and Davidson strives to make equal opportunity real through simultaneous, aggressive commitments to academic excellence and to access for all talented students, regardless of financial circumstances. At Davidson, we do everything possible to ensure that our students thrive, both at the college and after they graduate. KIPP’s effectiveness is well known, and it is a privilege to work with this program as we realize these aspirations.”

Duke will actively recruit 8 to 12 KIPP students each year for possible enrollment in the university. Duke will provide those KIPP students who do enroll with a range of services, beginning with a pre-orientation program, that are designed to help them succeed as Duke students.

This agreement will build upon Bruce and Martha Karsh’s $50-million donation to Duke in December 2011 for undergraduate financial aid. Ten percent of that gift –$5 million –is designated for KIPP students who gain admission to Duke.

“Duke University is proud to expand our current recruitment efforts to reach out to KIPP schools nationwide,” said Duke University President Richard H. Brodhead. “This initiative will ensure

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that talented KIPP students are aware of Duke’s dual commitment to making a Duke education affordable and to supporting our students throughout their college years. We’re looking forward to benefiting from the energy and contributions of more KIPP alumni on our campus.”

Davidson and Duke both have a need-blind admissions policy, which means they do not consider an applicant's ability to pay for college when making admissions decisions. Both schools guarantee to meet the full demonstrated financial need of all KIPP students they enroll.

“Duke and Davidson are incredible schools,” said Tiffany Flowers-Washington, CEO of KIPP Charlotte. “We are grateful for their commitment to our students and look forward to working together over the next several years to get more KIPPsters on the path through college and towards a better future.”

According to 2010 Census data, thirty-one percent of all Americans aged 25-29 have earned a college degree. For students in the bottom economic quartile, only 8 percent complete college by their mid-20s. As of 2011, 36 percent of KIPP students had completed a four-year college after finishing eighth grade at a KIPP middle school 10 or more years ago. KIPP’s four-year college completion rate is above the national average for students across all income levels and more than four times the rate for students from low-income families.

KIPP's goal is to attain a college completion rate for its students that is comparable to the nation’s highest-income students.

"This partnership will open doors of opportunity for our students at two outstanding colleges and universities in North Carolina," explained Tammi Sutton, CEO of KIPP Gaston. “While our students have gained admissions to these schools in the past, many have not had the financial means to attend. With this new commitment, all of our students who choose these universities will earn a diploma from these schools."

With the addition of Davidson and Duke, KIPP’s total number of college and university partners now stands at 12. Other university partners include Colby College (Waterville, Me.); University of Houston (Houston, TX); Franklin and Marshall College (Lancaster, PA); San Jose State University (San Jose, CA); Mercy College (Dobbs Ferry, NY); Tulane University (New Orleans, LA); Spelman College (Atlanta, GA); Morehouse College (Atlanta, GA); Texas State University (San Marcos, TX); and the University of Pennsylvania (Philadelphia, PA).

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Risk Management Analysis

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In the case of a crisis I believe each individual school will have their own chain of

command and way of handling the crisis. As individual entities, each school has what

KIPP refers to as a school leader. They work as the principal to ensure the stability and

the safety of each school remains a constant. As for the national foundation, they would

be able to work very quickly in the case of a crisis using both traditional forms and social

media forms of journalism to get their message out.

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Relevant Government Agencies

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The most essential government agency for KIPP is the U.S Department of Education

(ED). According to the department’s website, the ED is responsible for promoting student

achievement and preparation for global competitiveness by fostering educational

excellence and ensuring equal access. The ED is responsible for establishing policies

related to federal funding in education and helps focus in on issues in American

education . On a more local level, each state has their own department to handle

education. Each individual school must work within the confines of their state. KIPP

must work with government agencies all the way from the U.S national department, state

level, and even county level. Realistically, it is the source of these school’s funds that

make it extremely relevant for KIPP to maintain a good relationship with their state

education department.

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Demographic Analysis of Employees

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The KIPP entity does not release specific demographics for their employees, but I can

gather an analysis of my own. KIPP employees are mostly teachers and school leaders.

Most of their school leaders started out as teachers and started relatively young. Their

teachers are younger, anywhere from 25-40 and college educated.

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Quarterly Financial Report

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KIPP releases their reports as individual schools, not one national foundation.

Some of these schools make their reports more transparent than others. One KIPP school

that has their budget open to the public on their website is KIPP Colorado Schools.

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Executive Profiles

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Reported from KIPP Foundation Operating Committee Overview

Richard Barth, Chief Executive Officer

Richard Barth was made CEO and President of the KIPP Foundation in December of 2005. Over the past six years, he has overseen the significant growth of the network from 45 to 109 schools, dramatically expanded KIPP's leadership development programs, advocated for high performing charter schools on Capitol Hill, and secured more than $190 million in new, long-term philanthropic commitments, including more than $75 million from the federal government.

Barth came to KIPP from Edison Schools, where he served as President of District Partnerships and managed school partnerships serving over 40,000 students. Prior to joining Edison, Richard was one of the founding staff members of Teach For America. He earned a BA in American History from Harvard University, and is an Aspen Institute-New Schools Fellow. He currently sits on the board of directors of 50CAN, The Broad Center for the Management of School Systems, and ROADS Charter High School, and is President of the KIPP Foundation Board of Directors.

Jonathan Cowan, Chief Research, Design & Innovation Officer

As the Chief Research, Design & Innovation (RDI) Officer, Jonathan is responsible for leading the RDI team's efforts to support the KIPP network in getting better as we get bigger by: (1) leading network-wide innovation efforts in support of KIPP's regions and schools; (2) enabling local, grassroots innovation to have a broader impact by identifying what's working and helping to catalyze and disseminate it; and (3) driving ongoing insight via research and analysis that feeds KIPP's innovation pipeline. Prior to joining KIPP, Jonathan spent over 10 years at The Boston Consulting Group (BCG) where he assisted senior executives of large, complex organizations in addressing strategic, operational, and organizational issues and in managing large scale change. As a principal and partner at BCG, Jonathan spent several years helping to build and lead BCG's public education practice. Jonathan has an MBA from Harvard Business School, an MPA from Harvard's Kennedy School of Government, and a BS in applied mathematics from Yale University. Jonathan and his wife Kris have two young sons.

Valerie Faillace, Chief of Staff

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As Chief of Staff, Valerie is responsible for managing strategic and annual planning for the KIPP Foundation. Valerie leads network-wide project teams to pursue key initiatives such as the development of KIPP's 2015 strategic priorities and the coordinated pursuit of large-scale public funding for the KIPP network. Valerie came to KIPP from McKinsey & Company where she led teams to develop strategies for leading institutions in the financial, technology and education sectors and helped launch McKinsey's Financial Inclusion Practice. Prior to McKinsey, Valerie worked as an investment banking analyst at Morgan Stanley in the Latin America and Real Estate groups and also served as weekly tutor at a local public school. Valerie holds an MBA from Harvard Business School and an BA in Economics from Princeton University.

Nolan Highbaugh, General Counsel

As General Counsel, Nolan provides legal counsel to the KIPP Foundation as well as KIPP schools and regional operations throughout the country. Prior to joining KIPP, Nolan worked as an Associate in the Public Finance Department of Orrick, Herrington & Sutcliffe, LLP. Before entering law school, Nolan was a Budget and Policy Analyst for both the Chief Administrative Office of Los Angeles County and the Office of Mayor Willie L. Brown Jr. in the City and County of San Francisco. Nolan attended U.C. Berkeley where he earned a Bachelor's degree in International Political Economy and a Master's in Public Policy. He earned his JD from Stanford Law School and is a member of the California State Bar Association. His all-time favorite movie is The Godfather Part II.

Lisa Margosian, Chief Program Officer

As Chief Program Officer, Lisa is responsible for the KIPP Foundation's delivery of services to KIPP regions and schools. In this role she oversees a diverse range of programs and services including school growth and sustainability, recruitment and selection of network leaders, and support services such as finance, operations, real estate and board development. Lisa assumed this role in April 2009 and joined the KIPP Foundation in February 2008. She leverages over eighteen years of for-profit management experience with Bank of America and JPMorgan Chase. In addition to general management, Lisa's functional expertise includes sales, marketing, and service, and her focus was on rebuilding underperforming businesses. She has an MBA from Columbia University and a BS from Marquette University.

Tina Sachs, Chief Financial Officer

As CFO, Tina is responsible for overseeing the Accounting, Finance, Facilities and Event Services functions for the KIPP Foundation. Tina joined KIPP from the Jewish Community Federation where she served as General Fund Controller. She was previously an auditor for

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Deloitte and Touche focusing on large public retail companies, real estate companies, and non-profits in the Bay Area. Tina has a BA in accountancy from California State University, Northridge. Tina and her husband, John, have two children.

David Wick, Chief Development Officer

As Chief Development Officer at the KIPP Foundation, David is a member of the leadership team that determines the KIPP Foundation’s strategy to grow the KIPP network of schools with quality and sustainability. In his role, he oversees the Foundation's development strategy and execution, and works closely with KIPP’s schools and regions across the country, providing direct consultative support around fundraising planning. Under his leadership over the past five years, the Foundation has raised over $140 million, fueling the growth of the KIPP network from 57 to 109 schools nationally. Prior to joining KIPP, David served as Managing Director for Capital Giving for the Faculty of Arts and Sciences at Harvard University. Before that, he was a Regional Director for Capital Giving at Harvard. David began his career in development as an Annual Fund Officer for the University of Chicago. He received his bachelor’s degree from Davidson College and earned a Masters in Education from the Harvard Graduate School of Education. A native of Sheboygan, WI, David and his wife Mieka make their home in the Washington, DC area with their daughter Annabelle and son Samuel.

Kelly Wright, Chief Learning Officer

Prior to joining the KIPP Foundation, Kelly founded KIPP Adelante Preparatory Academy in San Diego and was its principal for four years. Under her leadership, KIPP Adelante was named a California Distinguished School in 2006 and received the 2007 National Title I Distinguished School Award in California for most narrowing the achievement gap that year. Kelly has experience teaching in bilingual classrooms from third to eighth grades, and was the Director of Bilingual Programs at a charter school in Phoenix, Arizona. She graduated with a BA from Carleton College in Latin American Studies and holds an EdM from Harvard University in Administration, Planning, and Social Policy. As Senior Learning Officer, Kelly works alongside the KIPP network's school leaders and aspiring leaders, facilitating opportunities for their professional growth, reflection, and development.

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