2005 KIPP Foundation Annual Report

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2005 KIPP Foundation Annual Report

Transcript of 2005 KIPP Foundation Annual Report

Page 1: 2005 KIPP Foundation Annual Report
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Leaders : 8 Great Schools : 12 Teachers : 16 Communities : 20 Growth : 24 Financials : 26

1

{The actual proves the possible.}Dear Friend of KIPP,

It has been five years since my wife, Doris, and I organized the KIPP Foundation

with Michael Feinberg, David Levin, and Scott Hamilton to replicate the original

two KIPP schools in Houston and the Bronx. Since then, our faith has been

confirmed by the extraordinary results from nearly all the public schools that we

have started.

I believe we have proven that the KIPP model works and that skeptics - who

thought that high-quality public schools cannot be taken to scale - were wrong.

KIPP has had great success, but challenges lie ahead. For instance, we have found

that our new schools need more and better support to achieve long-term

sustainability, that starting middle schools is not enough in areas with limited high

school options, and that quality must be our guide, even if it requires difficult

decisions about our schools that are not performing to KIPP's standards.

With these challenges in mind, we are re-doubling our efforts to improve and grow.

Last year, we opened a pre-school and a high school in Houston. This year, we

started another public high school in Gaston, North Carolina, and we plan to open

more in 2006 and 2007.

As you will see in the financial statements, we need your help to keep expanding

the movement. KIPP is beginning to show what is possible in the public school

system. We believe that underserved kids have the ability to become outstanding

students, and our schools are demonstrating that students are achieving at high

levels. Public school superintendents are increasingly incorporating KIPP's Five

Pillars, or core operating principles, into their schools. This is one reason to

continue to expand the number of KIPP public schools nationwide.

If you have not been to a KIPP school (or have not been to one recently), I

encourage you to visit and see what it is all about. KIPP students, with their hard

work, enthusiasm, and their focus on college, are a real inspiration.

Sincerely,

Donald G. FisherChairman of the Board

Page 4: 2005 KIPP Foundation Annual Report

Leaders : 8 Great Schools : 12 Teachers : 16 Communities : 20 Growth : 24 Financials : 26

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100

50

00 year 1 year 2 years 3 years 4 years

Years in KIPP

Per

cen

tile

Ran

k

The average 8th grader exits KIPP at the 74th percentile

The average 5th grader enters KIPP at the 28th percentile

National Average

28

74

Reading & Mathematics Achievement of KIPP Students

Fall 2000-Spring 2005Stanford Achievement Test

T heKIPP effectKIPP schools are public, tuition free, and openenrollment. They share a core set of operatingprinciples known as the Five Pillars: HighExpectations, Choice & Commitment, More Time,Power to Lead, and Focus on Results. KIPPstudents typically attend school from 7:30 a.m. to5:00 p.m. on weekdays, alternating Saturdays, andthree weeks in the summer. They receive 60% moretime to learn than their counterparts in typicalpublic schools. The time that students spend inschool during traditional “after-school” hours helpsthem focus on academics. Rigorous college-preparatory instruction is balanced withextracurricular activities, experiential field lessons,and character development. These factorscontribute to the culture of excellence, highexpectations, and results that KIPP schools arerecognized for.

This graph demonstrates the comparative growththat KIPP fifth through eighth graders achieved inreading and mathematics since entering KIPP. The shaded area under the curve represents thepercentage of national test takers that KIPPstudents outperform.

While the average fifth grader enters KIPP in thebottom third of test takers nationwide (28thpercentile), the average KIPP eighth graderoutperforms nearly three out of four test takersnationwide (74th percentile).

These results show that the longer hours, great teachers, and astructured learning environment are producing significantacademic gains and putting students on the road to college.

Page 5: 2005 KIPP Foundation Annual Report

2005 Highlights

An independent study conducted by the Educational PolicyInstitute found that KIPP students made “large and significant”gains beyond what is average for schools on the Stanford-10, anational norm-referenced test. These findings build upon the 2002report conducted by New American Schools that found that thefirst KIPP schools opened in 2001 all recorded “statisticallysignificant” gains in student achievement.

Highlights of KIPP schools opened in 2001

: The first schools to open with the assistance of the KIPPFoundation — KIPP DC: KEY Academy (Washington, DC), KIPP 3DAcademy (Houston, TX), and KIPP Gaston College Preparatory(Gaston, NC) — promoted 100% of their eighth graders to highschool. Students from the DC and Houston schools earned morethan $2.7 million in high school scholarships. The North Carolinaeighth graders now attend the newly opened KIPP Pride HighSchool, also in Gaston.

: KIPP DC: KEY Academy is the highest performing public middleschool in the District of Columbia.

: In 2004-2005, 100% of KIPP Gaston College Preparatory's eighthgrade achieved above grade level scores in all end-of-grade testsand an Algebra I test typically given in high school.

: Since entering KIPP 3D Academy, current seventh graders havejumped from the 34th to the 56th percentile in reading and fromthe 41st to the 79th percentile in mathematics, as measured bythe Stanford-10.

Highlights of KIPP schools opened in 2002

: KIPP Reach College Preparatory's (Oklahoma City, OK) current sixth grade performed in the top 10% of the city's mathematics test takers.

: KIPP Ujima Village Academy's (Baltimore, MD) current sixth gradeearned the highest fifth grade mathematics scores in Baltimore onthe Maryland School Assessment.

: Current eighth graders at TEAM Academy Charter School, a KIPP School (Newark, NJ), started KIPP at the 31st percentile in mathematics in 2002. Three years later, they are performing at the 91st percentile.

Highlights of KIPP schools opened in 2003

: KIPP Aspire Academy's (San Antonio, TX) current seventh gradeoutperformed every school in its attendance zone's districts inreading and mathematics on the 2005 Texas Assessment ofKnowledge and Skills.

: KIPP South Fulton Academy's (East Point, GA) current seventhgrade had the highest passing rate in mathematics in South FultonCounty on the Georgia Criterion-Referenced Competency Test.

: KIPP Summit Academy's (San Lorenzo, CA) current seventh gradeoutperformed every school in the San Lorenzo School District onthe California Standards Test.

: KIPP WAYS Academy (Atlanta, GA) was one of ten schools inAtlanta Public Schools with a 100% pass rate on the state's fifthgrade writing test.

Highlights of KIPP schools opened in 2004

: Last year's KIPP Heartwood (San Jose, CA) fifth gradersoutperformed every school on the California Standards Test in the Alum Rock Union Elementary School District. In mathematics,KIPP Heartwood's fifth grade outperformed two of the mostaffluent school districts in the Silicon Valley and every charterschool in California.

: KIPP Houston High School (Houston, TX) was recognized for its promising practices in Newsweek's “The 100 Best High Schoolsin America.”

Page 6: 2005 KIPP Foundation Annual Report

Leaders : 8 Great Schools : 12 Teachers : 16 Communities : 20 Growth : 24 Financials : 26

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KIPP began ten years ago when two teachers identifiedcritical problems and solutions in their classrooms. In thesame spirit of “no excuses,” we would like to share both theachievements and lessons learned in KIPP's effort toreplicate success in classrooms across the country.

Lesson 1: Great schools can be replicated through a focuson school leadership development. The academic gainsmade by thousands of KIPP students nationwide prove thatsuccessful schools can be replicated. School leadership is key,and school leadership training remains our core competency.This summer, we began training eight Fisher Fellows, who arepreparing to open new schools, and 24 Leaders-in-Training, oraspiring assistant principals and school leader successors.One challenge remains: finding more KIPP school founders tokeep pace with the demand.

Lesson 2: A network of like-minded schools can help eachother in powerful ways. We have significantly enhanced theeffectiveness of our educators by sharing proven practices incontent area retreats for KIPP educators and the annual KIPPSchool Summit. We plan to invest more in the collection andsharing of knowledge to spread these practices and avoid theneed for schools to “reinvent the wheel.”

Lesson 3: KIPP schools can influence policy. In Arkansas, anew state law that modestly raised the cap on charterschools specifically granted KIPP an unlimited number. In2004, San Francisco Unified School District launched a“dream school” initiative that emulates KIPP schools.Congress awarded KIPP $3.5 million to support leadershiptraining and new school development. KIPP's success hasbeen featured in national news magazines such as People,Newsweek, Forbes, and US News and World Report. We mustfurther increase advocacy on behalf of our schools to supporttheir long-term sustainability and that of other successfulpublic schools.

Lesson 4: Success is not guaranteed. Not every KIPPschool has achieved great results. KIPP has becomesynonymous with quality, yet achieving that quality requiresgreat school leadership and an unrelenting focus on KIPP’sFive Pillars. Leadership issues have led us to replace theschool leader in three cases and revoke the KIPP name in twocases. Our current challenge is to ensure that each school,from our highest performer to our lowest performer, gets thehelp they need and want. In addition, we are improving ourevaluation process in order to identify our struggling schoolsas early as possible. While we are incredibly proud of oursuccess rate, perfection remains our goal.

Lesson 5: Sustainability can be reached with smart targetedgrowth. Strategic growth and local school support will lead togreater sustainability for the foundation and for our schools.Smart growth means expanding in high-need communitieswhere school leaders have authority over issues like budget,staffing, and other critical decisions. Sustainability will occuras schools are increasingly supported by local resourcecenters. The KIPP Foundation will then focus on leadershiptraining, professional development, school start-up, schoolevaluation, and advocacy.

Lesson 6: Middle school is not enough. We have dramaticallyraised student achievement in middle school but must expandto include K-12 education. To ensure that our studentssucceed in college and in life, we must prepare them earlierand make sure they have college-preparatory high schooloptions. The challenge is to start elementary and highschools as we continue to strengthen our middle schools.

We hope that both our accomplishments and challengescontribute to the progress of public education reform. Wehave certainly benefited from collectively “looking in themirror” and assessing what we have done right and what wecould do better. The next five years will be informed by bothour lessons learned and what we know is possible.

Lessons learned in the first five years

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ORIGINAL KIPP ACADEMIES OPENED IN 1995

KIPP SCHOOLS AND TRANSFORMATION SCHOOLS OPENED SINCE 2001

STATES AND THE DISTRICT OF COLUMBIA WITH KIPP SCHOOLS

EDUCATORS SERVED BY THE KIPP SCHOOL LEADERSHIP PROGRAM

KIPP TEACHERS EMPLOYED IN 2004-2005

KIPP STUDENTS ENROLLED IN 2004-2005 *

KIPP ALUMNI NOW IN HIGH SCHOOL OR COLLEGE

KIPP STUDENTS WHO QUALIFY FOR THE FEDERAL FREE OR REDUCED MEAL PROGRAM

KIPP STUDENTS WHO ARE AFRICAN-AMERICAN OR LATINO

KIPP ALUMNI WHO HAVE EARNED ACCEPTANCES TO COLLEGE

HIGH SCHOOL SCHOLARSHIPS EARNED BY KIPP ALUMNI

COLLEGE SCHOLARSHIPS EARNED BY KIPP ALUMNI

2

45

15

88

480

8,900

1,009

80%

9O%

80%

$21 MILLION

$12.5 MILLION

IN THE LAST FIVE YEARS, KIPP HAS GROWNAT AN IMPRESSIVE RATE WHILE MAINTAININGA STANDARD OF HIGH QUALITY.

* These 47 schools will serve 16,000 studentsby the time they are fully grown.

Page 8: 2005 KIPP Foundation Annual Report
Page 9: 2005 KIPP Foundation Annual Report

I was an intern at this

summer's School Leadership

Institute, KIPP's largest ever.

The teachers have big hearts

and are there for the kids.

Seeing how dedicated they are

to helping their schools get

better, I now think about my

own KIPP teachers differently.

I see how much I've grown

and how much my teachers

sacrificed to help me

get where I am right now.

Noe RomoKIPP Academy Houston

Class of 1999

University of Texas in San Antonio Class of 2007

Major: Architecture

Page 10: 2005 KIPP Foundation Annual Report

KIPP trains outstanding teachers to lead schools.

Leaders : 8 Great Schools : 12 Teachers : 16 Communities : 20 Growth : 24 Financials : 26

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The KIPP Foundation starts new KIPP schools by recruitingand selecting educators who seek to make an impact beyondtheir own classrooms. Once selected for the KIPP SchoolLeadership Program, these Fisher Fellows participate in anambitious yearlong curriculum of classroom instruction withuniversity professors and experts in education andorganizational behavior. They then experience leadershipfirst-hand in residencies at exemplary schools with theguidance of KIPP school leaders.

KIPP school leaders plan for sustainability from the start andhire teachers with leadership potential. KIPP WAYS Academy(Atlanta, GA) school founder David Jernigan completedKIPP's school leadership training in 2003 and recruitedteachers like Jamal McCall. Two years later, Mr. McCallparticipated in KIPP's four-week Leaders-in-Training (LIT)program, which prepares assistant principals, co-directors,and deans of student services for greater leadershipresponsibilities.

“Jamal returned from the School Leadership Institute withthe confidence of a leader,” says Mr. Jernigan. Now in its thirdyear, KIPP WAYS Academy serves 220 fifth through seventhgrade students. “I walked by the cafeteria and noticed Jamalhad initiated a seventh grade meeting. Before, he would haveasked, 'David, how do you think I should handle this?' Now, heis making decisions.”

This year's LIT class was the largest ever, with 24 educatorsfrom KIPP schools and exemplary public schools. “Every dayat the Leadership Institute was a day of learning,” says Mr.McCall, KIPP WAYS' assistant principal. “Every person hadsomething to share that I brought back to my school.”

“Growing up in poverty, I wanted to be a doctor,” Mr. McCallsays. “I saw that a career in medicine was a way to help myfamily and myself out of poverty.” While pre-med at HamptonUniversity, he found his true calling while tutoring local highschool students. “The impact of those kids on me changedwhat I wanted to do,” he recalls.

While the school leader provides overall leadership, theassistant principal manages the different moving parts of aschool. Like other LITs, Mr. McCall plays many roles. He isresponsible for mathematics and science instruction andevaluation, student discipline, food services, transportation,enrichment activities, and facilities. He is the Saturday schooldirector, athletics director, and the football coach. In spite ofthe astounding work load, Mr. McCall insists that “our kids area true testament of doing whatever it takes to succeed.”

This summer, seven KIPP schools opened in Annapolis, MD;Albany, NY; Washington Heights and Crown Heights, NY;Gaston, NC; Tulsa, OK; and Nashville, TN. School founderswho completed KIPP's yearlong training program thissummer include Millard House, a former Oklahoma StatePrincipal of the Year. He started KIPP Tulsa CollegePreparatory (Tulsa, OK) three miles from where he grew up.“It's great to be making a difference in my community,” Mr.House says.

Other new school founders include Tammi Sutton. Ms. Suttonbegan teaching in the rural community of Gaston, NC throughTeach For America. Four years later, she and Caleb Dolan co-founded KIPP Gaston College Preparatory (Gaston, NC), aNorth Carolina School of Excellence. She completed thetraining program this summer and opened KIPP Pride HighSchool, KIPP's second high school.

Page 11: 2005 KIPP Foundation Annual Report

2005 Highlights

: Eight Fisher Fellows are participating in the yearlong KIPP SchoolLeadership Program. In 2005-2006, they are preparing to openschools in Washington, DC; Chicago, IL; New Orleans, LA; Newark,NJ; and Houston, TX.

: Twenty-four Leaders-in-Training participated in the SchoolLeadership Institute. The program served KIPP schools andeducators at other high-performing charter schools, including:Amistad Academy (New Haven, CT), Leadership Prep CharterSchool (New York, NY), Noble Street Charter High School(Chicago, IL), and YES College Preparatory Schools (Houston, TX).

: Teach For America (TFA) corps member alumni continue theircommitment to public education through KIPP. Thirty-three KIPPschool leaders are TFA alumni, and over 200 TFA corps membersand alumni teach in KIPP schools.

: KIPP school leaders recognized for their contributions includeMaggie Runyan-Shefa, school leader of KIPP STAR College PrepCharter School (Harlem, NY), who was a recipient of the RobinHood Foundation's Local Heroes Award.

Page 12: 2005 KIPP Foundation Annual Report
Page 13: 2005 KIPP Foundation Annual Report

I get emotional when

I meet KIPPsters because

they remind me of me.

The impact of a KIPP school

on a student, a family, and

community is huge. Some

students and parents think

KIPP is too difficult and want

to quit, but I am still reaping

the benefits of a decision

I made eleven years ago.

Vanessa Ramirez KIPP Academy Houston

Class of 1998

Occidental CollegeClass of 2006

Major: Psychology

Page 14: 2005 KIPP Foundation Annual Report

KIPP has proven that great schools such as the two originalKIPP Academies can be replicated. This spring, the first threeschools to open with the help of the KIPP Foundationpromoted their initial class of eighth graders to high school.KIPP DC: KEY Academy (Washington, DC), KIPP 3D Academy(Houston, TX), and KIPP Gaston College Preparatory (Gaston,NC) are among the highest performing schools in theirrespective regions. The Class of 2009 (the year these eighthgraders will enter college) has collectively earned more than$2.7 million in high school scholarships.

KIPP's new schools are modeled after the original KIPPAcademies in Houston and New York. Celebrating their tenyear anniversaries, both schools continue to excel in theirregions. Ninety percent of KIPP alumni who completed highschool in 2005 earned acceptances to college. For the fourthconsecutive year, KIPP Academy New York (South Bronx, NY)ranks in the top 10% of all New York City public schools. KIPPAcademy Houston (Houston, TX) has expanded into KIPPHouston, which includes two middle schools (KIPP AcademyMiddle School and KIPP 3D Academy), KIPP SHINE Prep (pre-k), and KIPP Houston High School.

Like the other KIPP schools, KIPP Heartwood Academy (SanJose, CA) is located in a community with low expectationsthat are the result of limited opportunities for advancementin underserved communities. Only 11% of KIPP Heartwood'scurrent sixth graders' parents are college graduates.

KIPP Heartwood school leader and life lessons teacher SehbaZhumkhawala completed KIPP's leadership training programin 2004. “People say students can't learn because theirparents didn't go to college or because they don't speakEnglish,” she says. “Our kids are going to prove them wrong.”

Ms. Zhumkhawala’s students are off to an impressive start.Last year’s KIPP Heartwood fifth graders outperformed everyschool on the California Standards Test in the Alum RockUnion Elementary School District. In mathematics, KIPPHeartwood’s fifth grade outperformed two of the mostaffluent school districts in the Silicon Valley and everycharter school in California. “Their results say that we areproviding opportunities for our kids,” Ms. Zhumkhawala says.

Forty of KIPP’s 45 schools are public charter schools, whichgive principals the freedom to lead while holding themaccountable for results. Ms. Zhumkhawala makes sure theschool does whatever it takes for students to learn; forexample, classes last an hour and 45 minutes. “Our kids canachieve anything if they are given the chance,” she says.

“KIPP will change your life,” says sixth grader MaritzaHurtado, one of several students who often receive rides toschool from Ms. Zhumkhawala. “I wasn't sure before, but nowI'm sure that I'm going to college.”

Leaders : 8 Great Schools : 12 Teachers : 16 Communities : 20 Growth : 24 Financials : 26

12

KIPP replicates great schools.

Page 15: 2005 KIPP Foundation Annual Report

2005 Highlights

: The KIPP Foundation opened seven new schools thissummer. The Walton Family Foundation, BroadFoundation, and the US Department of Educationcontributed funds for new school development.

: The first schools to open with the assistance of theKIPP Foundation — KIPP DC: KEY Academy(Washington, DC), KIPP 3D Academy (Houston, TX),and KIPP Gaston College Preparatory (Gaston, NC) —promoted 100% of their eighth graders to high school.Students from the DC and Houston schools earnedmore than $2.7 million in high school scholarships.

: KIPP Gaston College Preparatory eighth graders nowattend KIPP Pride High School, also in Gaston, NC.Supported by the Bill and Melinda Gates Foundation, itopened this summer and is KIPP's second high school.Ten more high schools will be established by 2008.

Page 16: 2005 KIPP Foundation Annual Report
Page 17: 2005 KIPP Foundation Annual Report

At the end of the day, there

was always a teacher who

would offer a ride home

because it was dangerous to

walk the streets unattended.

They saw where we lived,

how we lived, and what our

neighborhoods were like.

Because of this simple act of

daily generosity, our teachers

knew what they needed to do

to ensure that we were given

every opportunity to succeed.

Adaobi Kanu KIPP Academy New York

Class of 2000

Bryn Mawr College Class of 2008

Major: Physics and Dance

Page 18: 2005 KIPP Foundation Annual Report

KIPP helps teachers stay committed to preparingunderserved students for college and life by encouragingthem to do whatever it takes to help students learn, byfacilitating knowledge sharing with teachers across the KIPPnetwork, and by celebrating quality teaching.

In an Arkansas Delta county where only 12% of adultsgraduate from college and where half the children under theage of 18 live in poverty, KIPP Delta College PreparatorySchool (Helena, AR) defies deeply rooted low expectationsand inspires veteran teachers to work at the school. WyvonneSisk is in her 37th year as a teacher but commutes two hoursa day to teach reading, provide one-on-one tutorials forstruggling readers, and mentor new teachers.

Growing up on her father's farm, Ms. Sisk experienced thealternative to education. “I had to milk the cows, feed thehogs and chickens, pick up chips for the fire, and cook mydaddy's breakfast,” she said. She once missed six weeks ofschool to pick cotton. “If you don't get an education, what willyour life be? All I could see was the cotton field. Some days, Iwalked three and a half miles to go to school, but what weremy choices? The school or the field.” Her commitment toeducation inspires both her students, who test above thestate average in reading and writing, and new teachers. “Ms.Sisk demands the best from all the students, and they loveher for it,” KIPP Delta teacher Luke VanDeWalle says.“Teaching next to her is the best professional development ateacher can have.”

Established in 2002, KIPP Ujima Village Academy (Baltimore,MD) has operated with a small staff because of the district'slow per-pupil funding. Founding teacher Anne Claire Tejtelrefused to let it hinder her students' potential and taughteverything from science, mathematics, music, reading, andwriting across all grades. Everyone's hard work paid off; theschool was one of only two middle schools in Baltimore thatachieved adequate yearly progress in 2004-2005.

The KIPP Foundation hosts training events and producesresources for teachers to gain and share instructionalstrategies throughout the KIPP network. KIPP Reach CollegePreparatory (Oklahoma City, OK) founding faculty memberWarren Pete contributes regularly to resources andworkshops and hosts visits that demonstrate effectiveapproaches to culture and instruction. “Mr. Pete uses what hehas and makes it fun,” says eighth grader Rachael Teague,who will go to college in 2010. “Walk in the room, and you willfeel how much he loves what he does.” Mr. Pete'smathematics instruction has helped his fifth grade studentsperform in the top 10% of mathematics test takers inOklahoma City for the last three years.

The KIPP Foundation offers quality professional developmentprogramming with the help of supporters, including the USDepartment of Education and SAP America, Inc. The annualKIPP School Summit attracted 750 KIPP educators and boardmembers for workshops and planning for the year. The four-day event culminated with a performance by the KIPPAcademy New York String and Rhythm Orchestra and aceremony for the Kinder Excellence in Teaching Awards.Sponsored by Houston supporters Nancy and Rich Kinder, theaward honored ten KIPP teachers with $10,000 awards foroutstanding teaching. Among this year's Kinder winners wereMs. Tejtel and Mr. Pete.

Leaders : 8 Great Schools : 12 Teachers : 16 Communities : 20 Growth : 24 Financials : 26

16

KIPP inspires teachers to be their best.

Page 19: 2005 KIPP Foundation Annual Report

2005 Highlights

: The KIPP Foundation organized professionaldevelopment events for mathematics, EnglishLanguage Arts, science, and social studies, reaching434 participants.

: Sixty-eight participants from KIPP schools and otherschools attended the annual School Leaders Retreat.

: The annual KIPP School Summit drew over 750educators and board members.

: The KIPP Foundation produced resources thatpromoted knowledge sharing among schools, includinga mathematics curriculum, footage of masterteachers, and a high school placement resource.

: Shawadeim Reagans, TEAM Academy Charter School,a KIPP School’s (Newark, NJ) school leader andmathematics teacher, was named one of 50 AmericanStars of Teaching by the US Department of Education.

: KIPP Ascend Academy's (Chicago, IL) sixth gradereading teacher Tracy Kwock earned Chicago PublicSchools' Golden Apple Award and is the first charterschool teacher to be awarded this distinction.

Page 20: 2005 KIPP Foundation Annual Report
Page 21: 2005 KIPP Foundation Annual Report

Being the first member

of my family to attend

college meant that

I needed support from

people with experience in

this climb. The teachers

and staff at KIPP were

always my number one

role models. KIPP does

more than teach kids

how to read, write, and

behave. The friendships

I made will last a lifetime.

Janet ReynosoKIPP Academy Houston

Class of 2000

American University Class of 2008

Major: Business Administration

Page 22: 2005 KIPP Foundation Annual Report

As KIPP schools make progress with their students, they alsoimpact other classrooms, schools, and their communities.Educators visit KIPP schools annually to observe academicand behavioral expectations and then incorporate them intheir own classrooms. School-wide change also occurs; forexample, the San Francisco Unified School District launchedDream Schools, which adopted elements of the KIPP modelsuch as uniforms, more time in school, and non-negotiablestandards of behavior.

KIPP Aspire Academy's (San Antonio, TX) current seventhgrade outperformed every school in its attendance zone'sdistricts in reading and mathematics on the 2005 TexasAssessment of Knowledge and Skills. The school has startedto see its influence beyond students and in communityorganizations and its surrounding neighborhoods.

“San Antonio has a growing population that's not getting theeducation it needs,” says Jorge Gonzalez, the chair of TrinityUniversity's economics department. He has taught at Trinityfor the last 16 years. “As a professor at a selective university,one of my biggest frustrations is that kids who have not beengiven an equal opportunity are not prepared for the rigors ofcollege.” A member of KIPP Aspire's board, he hosts campusvisits for KIPP students. “KIPP is reaching them when it's nottoo late. KIPP is helping our city by making sure that kids areprepared for and finish college and have successful careers.”

KIPP Aspire's accelerated learning environment is fostered bycaring teachers. Assistant principal Rudy Galvez is aninvaluable mentor to students. “My parents have third gradeeducations,” he explains. “I grew up in a neighborhood likethat of my students'. Gangs, drugs, and jail were a part of life.It's hard to leave at the end of the day because I know whatour kids are going through.”

To help improve these neighborhoods, KIPP has partneredwith other non-profit organizations such as American Sunrise,a community venture that makes affordable housing possiblefor working families. It was started by community leader MaryAlice Cisneros and her husband Henry Cisneros, formerHousing and Urban Development Secretary and former SanAntonio Mayor. “We help families fulfill the American dreamof owning a home,” says Mrs. Cisneros. “One family we'vehelped is the Herrera family. I have personally seen their sonLuis jump two grade levels after nine months at KIPP.” ParentPatricia Herrera now pursues another dream: “I saw a greatchange in Luis when he joined KIPP. He has a chance of goingto college. College is our dream.”

The Herrera family's new house provides an environment forthe sixth grader to focus on academics. “There's less noiseoutside,” Luis says. “It's better for homework.” KIPP Aspireschool leader Mark Larson anticipates other benefits ofpartnering with American Sunrise. “Our families are renters,which leads to greater mobility,” he says. “Finding stablehomes for them is great for our community.”

“The Luis Herrera story has touched us all,” says Mrs.Cisneros. “ I hope to replicate his story for hundreds ofHispanic families in San Antonio.” She recently demonstratedher personal commitment by joining KIPP Aspire's board.

Leaders : 8 Great Schools : 12 Teachers : 16 Communities : 20 Growth : 24 Financials : 26

20

KIPP schools impact communities.

Page 23: 2005 KIPP Foundation Annual Report

2005 Highlights

: The KIPP Foundation helped secure over$2.9 million in grants for KIPP schools.

: SAP America, Inc., in partnership withthe KIPP Foundation, is supportingtechnology at individual KIPP schools aswell as volunteerism on a national level.

: Townsend Press donated thousands ofbooks to KIPP schools and offered$1,000 reading incentives for everyschool to reward their top readers.

Page 24: 2005 KIPP Foundation Annual Report
Page 25: 2005 KIPP Foundation Annual Report

I asked [KIPP school

leader] Kelly Wright in

San Diego how she

chose her school's name,

KIPP Adelante

Preparatory Academy.

She said, “Whenever

I spoke to a parent, they

said, ‘Señora, nada mas

quiero que mi hijo sigue

adelante - Miss, I only

want my child to move

forward.’” We all share

the goal of a better life

for our children.

Laura ReyesKIPP Academy New York

Class of 1999

Binghamton University Class of 2008

Major: Philosophy, Politics and Law,and Latin American Carribbean

Area Studies

Page 26: 2005 KIPP Foundation Annual Report

Leaders : 8

“We are the best public middle school in the city. But that isnot enough,” says KIPP DC: KEY Academy founder SusanSchaeffler. Since the school opened four years ago, demandhas risen for the limited seats available in her open-enrollment school, which serves 320 fifth through eighthgraders and is the highest performing middle school in the District of Columbia.

This fall, KIPP DC: KEY's first class of eighth graders startedhigh school, half in public and half in private schools.Students earned more than $1.5 million in scholarships from local scholarship programs, local schools, and boardingschools. When she began turning away more students than her school served, Ms. Schaeffler decided to openadditional KIPP schools in Washington, DC. It was the onlyway to “chip away at the poverty cycle and the achievementgap,” she says.

Two founding faculty members assumed leadership roles thisyear after participating in the KIPP School LeadershipProgram. Sarah Hayes, who participated in the 2003 LITprogram, is now the principal of KIPP DC: KEY Academy. Thissummer, Khala Johnson opened a second DC middle school,KIPP DC: AIM.

Smart growth for KIPP means starting schools in regions withexisting, proven KIPP schools that can help support newschools with quality control and support services. Ms.Schaeffler heads KIPP DC: Headquarters, which she staffedwith “roll-up-your-sleeves kind of people who do whatever ittakes for our schools to run efficiently.” This includesfundraising, financial and facilities management, instructionalcoaching, and marketing. She will maintain the high quality ofthe DC schools and set the expansion vision for her region.Similar offices exist in Houston and New York City, whichopened two new schools this summer.

Families want the promise of public education fulfilled, apromise that KIPP delivers. To reach more students, KIPP isexpanding beyond middle school. Two years ago, KIPP SHINEPrep opened on the KIPP Houston campus for pre-kindergarteners. It is so successful that other cities are nowplanning elementary schools. KIPP Houston High School(Houston, TX) was established in 2004 and serves studentsfrom KIPP 3D Academy and KIPP Academy Middle School.KIPP's second high school, KIPP Pride High School (Gaston,NC), was opened to create a college-preparatory option in arural region of North Carolina. A rigorous high school optionis also needed in the rural community served by KIPP DeltaCollege Preparatory School (Helena, AR), and a high school isbeing planned there.

KIPP's growth strategy will include more partnerships thanever before. Governors and districts routinely ask KIPP howto improve the quality of their states' schools. This year, KIPPbegan managing, or transforming, two chronically low-performing schools: Cole Preparatory Academy (Denver, CO)and E.H. Phillips Preparatory (New Orleans, LA).

To ensure that students' lives are not further disrupted byHurricane Katrina, KIPP Houston opened New Orleans West(NOW) College Prep, a KIPP Transformation School atDouglass Elementary for children of displaced Louisiana andMississippi families in a partnership with the HoustonIndependent School District and Teach For America. KIPP co-founder Mike Feinberg says, “The 'College Prep' partsymbolizes our goal of turning lemons into lemonade.”

Great Schools : 12 Teachers : 16 Communities : 20 Growth : 24 Financials : 26

24

KIPP strives to reach more students.

Page 27: 2005 KIPP Foundation Annual Report

2005 Highlights

: In July, KIPP co-founder Mike Feinberg served as akeynote speaker on K-12 education at the NationalGovernors' Association Annual Meeting in DesMoines, Iowa.

: Advocacy remains a priority. Press highlightsinclude USA Today, Esquire, The Washington Post,and a documentary aired on PBS. In the July 4,2005 edition of US News and World Report, KIPPschools were singled out as having “achieved thelargest and quickest improvement in learningaround the country.”

Page 28: 2005 KIPP Foundation Annual Report

Leaders : 8 Great Schools : 12 Teachers : 16 Communities : 20 Growth : 24 Financials : 26

26

KIPP FOUNDATION BUDGET CATEGORIES

KIPP FOUNDATION OPERATION REVENUE NEED

KIPP FinancialsHow does the KIPP Foundation spend its resources?

The KIPP Foundation’s strategy and organizational structurehave evolved to include the following functions: startingschools, sustaining schools, and general & administrative. Thethree functions are organized to achieve one goal: provideschool leaders, teachers, and staff with the knowledge andresources necessary to achieve a “tipping point” in thenation’s expectations of our public schools.

What operations revenues are needed to continueexpanding the national movement?

Operating revenue needs have increased over the last threeyears as a direct result of an expansion of the FisherFellowship training program and increased support to moreschools, now at 47. For fiscal year 2006, KIPP expects tomaintain its staff levels and continue supporting incomingFisher Fellows and existing school leaders.

What makes a KIPP school unique?

KIPP schools are lean on administrative costs, and thesesavings help pay for the additional "above and beyond" costsassociated with spending over 60% more time on task thantheir district counterparts. These costs include instructionalmaterials and the resources necessary to run a summerprogram and Saturday school. Teachers also receive stipendsfor the additional time they spend in the classroom. KIPPschools conduct end-of-year field lessons, in which studentsvisit sites they studied in class or experience a collegecampus for the first time. All of these KIPP extras costapproximately $1,200 per student. Once a KIPP school hasreached full capacity with over 300 students, it is able tobenefit from the economies of scale, and its fundraisingneeds diminish.

What does it cost to open a KIPP school?

To bring a KIPP school to a community, KIPP invests$400,000. These costs include: leadership development,school start-up, and ongoing school support.

Page 29: 2005 KIPP Foundation Annual Report

Sample KIPP School Budget

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Financial Summary

Enrollment - 85 166 244 320 320Revenues

State & Local per-pupil 1 - 510,000 996,000 1,464,000 1,920,000 1,920,000Federal Revenue 2 - 95,710 186,916 274,744 360,320 360,320

Other Revenue - 24,990 48,804 71,736 94,080 94,080

Total Revenue - 630,700 1,231,720 1,810,480 2,374,400 2,374,400Expenses

Instructional Salaries & Benefits - 239,360 467,456 687,104 901,120 901,120Administrative Salaries & Benefits 5,000 150,000 282,000 390,000 390,000 390,000Instructional Materials & Supplies 60,000 38,250 74,700 109,800 144,000 144,000General & Administrative 3 5,000 55,250 107,900 158,600 208,000 208,000Facility Costs 4 50,000 295,000 295,000 295,000 295,000 295,000Food Service - 61,200 119,520 175,680 230,400 230,400Subtotal 120,000 839,060 1,346,576 1,816,184 2,168,520 2,168,520

KIPP Above & Beyond Costs

Extended Schedule Instructional Salaries & Benefits - 32,640 63,744 93,696 122,880 122,880Extended Schedule Materials and Supplies 1,500 17,000 33,200 48,800 64,000 64,000Field Lessons, Uniforms, Additional Food Service - 45,050 87,980 129,320 169,600 169,600

Subtotal 1,500 94,690 184,924 271,816 356,480 356,480KIPP Above & Beyond Costs 1,114 1,114 1,114 1,114 1,114

Total Expenses 121,500 933,750 1,531,500 2,088,000 2,525,000 2,525,000Total Expenses/pupil 10,985 9,226 8,557 7,891 7,891

Surplus/(Fundraising Need) 5 121,500 (303,050) (299,780) (277,520) (150,600) (150,600)Fundraising Need/pupil (3,565) (1,806) (1,137) (471) (471)

HOW MUCH DOES IT COST TO START A KIPP SCHOOL?

0

200

400

600

800

1000

1200

NOTES1. Per-pupil revenue from the state or district is $6,000.

2. Federal revenues of approximately $1,126 per pupil include the federally subsidized meal

program and various entitlement programs.

3. General & Administrative includes teacher development, back-office services, insurance,

office furniture and supplies, telecommunications, etc.

4. This cost will vary depending on the condition of the facility and excludes capital costs.

Years 3 - 5 assume the school continues to lease the facility.

5. Fundraising needs will vary depending on the facility situation, local cost of living, and per-

pupil revenues.

Page 30: 2005 KIPP Foundation Annual Report

Leaders : 8 Great Schools : 12 Teachers : 16 Communities : 20 Growth : 24 Financials : 26

28

As of the publication date, these financial statements remain unaudited.Complete audited financials will be mailed upon request when theybecome available.

* Gross of net assets released from restrictions.

Fiscal Year Ending June 30, 2005

Assets

Current Assets:

Cash and Cash Equivalents $ 1,717,052 Cash and Cash Equivalents - held in trust 912,205 Program Accounts Receivable 672,919 Contributions Receivable 7,323,943 Other Receivables 7,200 Prepaid Expenses 203,301 Notes Receivable, current portion 525,081

Total Current Assets 11,361,701

Contributions Receivable, net of current portion 1,136,740 Notes Receivable, net of current portion 463,356 Furniture and Equipment, net of accumulated 127,768

depreciation of $280,332 and $207,664, respectively

Deposits 116,175

Total Assets $ 13,205,740

Liabilities and Net Assets

Current Liabilities:

Line of Credit $ 900,000 Accounts payable 622,268 Accrued expenses 908,061 Due to Schools 912,205 Unearned Service Fees 136,092

Total Current Liabilities 3,478,626

Long-term Debt 151,500 Total Liabilities 3,630,126 Net Assets:

Unrestricted Net Assets 73,720 Temporarily Restricted Net Assets 9,501,894

Total Net Assets 9,575,614 Total Liabilities and Net Assets $ 13,205,740

For the Year Ended June 30, 2005

Revenues, Gains and Support:

Donations* $ 12,026,748 Federal Grant 4,137,702 Contributed Services 351,333

Service Fee Income 278,079

Miscellaneous Income 21,108 Investment Income 29,697

Total Revenue, Gains and Support 16,844,667

Expenses:

Programs:

Leadership Development 1,904,640 School Start-up 2,647,768 On-going School Support 6,577,297 Research and Improvement 1,443,817

Total programs 12,573,522

Support Services:

Administration 2,706,964 Fundraising 264,837

Total Support Services 2,971,801

Total Expenses 15,545,323

Net Assets Released from Restrictions (9,302,403)Change in Net Assets (8,003,059)Net Assets, beginning of year 17,578,673 Net Assets, end of year $ 9,575,614

Statement of Financial Position Statement of Activities

Page 31: 2005 KIPP Foundation Annual Report

William McIvor

Janet Mordecai

Staples Foundation

Allison & Troy Thacker

Tai-Po Tschang

Edwin C. Widner

Friends of KIPP $1 to $4,999Nagam Abdalibbar

Nuzhat & Sirgi Alavi

Julie Albright & Brian Haas

Aleen Leslie Living Trust

Willie Allen, Jr.

Altria Employee Involvement

Program

Lori Aratani

Arnall Golden Gregory, LLP

Artemis Gifts

Maria J. Ávila

Mohammed & Ahsia Badi

Barry Badsen

Mohini & Balu Balakrishnan

Bank of America Matching

Gifts Program

W. Douglas Barron

Becky Bartindale & Brandon Baily

Jeffrey Berg

Shikha & Girish Bhakoo

Barbara Blinderman

Loren & Howard Block

Margaret Bobertz

Regina M. Boone

Bert Borngesser III

Learka Bosnak

Kecia Boulware

Ralph Boulware

Morris Brown

John Buonassisi

Judith Calson

Margaret L. Carter

Stacey Black Case

Kim Chan

Jeff Chiu

Peter C. Clendenin

Jane & Campbell Collins

Barbara Jay Cooper

Phyllis & James Coulter

Mark Damon

Rosalie Danielson

DBA Mark Yamamoto

Photography

Cathy & Alexander Dean

Arthur de Cordova III

Paul Diamond

Shannon DiBari

The Draper Foundation

Elizabeth Duff

Dana Duncan

David Early

David O. Ellis

Marlon Evans

Don Feria

Beth & John Fernsterwald

Tracy Field

Jeri Finard

Jill & Eric Flamm

Dawn & Christopher Fleischner

Eva Fleischner

Leslie Fleischner

Alfred Flora

Charlen Fong & Marc Peterson

Susanna Frohman

Alan Galumbeck

Jim Gensheimer

Susan & David Golden

Vindu Goel

Blanca González

Marcia Gugenheim

Oanh Ha

Becky Hall

Paul R. Hanke

Lee Hansen

Mikki K. Harris & David Wall Rice

Ken Head

Stephen Hely

Seth Hemmelgarn

Raskin Holdings

Jacqueline Holen & William Jackson

Amy Hussey

Carolyn Jung

Meichele Jurich

Lisa & William Justice

Cynda & Robert Kaiser

Karen & Christopher Payne

Foundation

Rita R. Karlsten

Maurice Karmen

Dan Kirschner

Christina Koci & Richard Hernandez

James Labas

Barbara Lawrence

Chris Lee

Gregory Lee

Joanne HoYoung Lee

Lee Matherne Family Foundation

Imelda Lepe

Lerner Gray Foundation

Marian Liu

Pauline Lubens

Robert & Connie Lurie

Anne Lutkemeyer

Dagny Maidman

Asma Malik

Susan Marshall-Gordon

Javier Martinez

Maxine & Jack Zarrow Family

Foundation

Michael Mayer & Meryl D. Simon

Beth McClurg

D. Allen McDaniel

Tracy McDaniel

Dorothy & Ian McFarlane

Jean McMahon

Carolyn & Richard Meisner

Nhat Meyer

Geralyn Migielicz & Liza Culick

Brian Moore

Pamela Moreland

John Noble

David Orr

Liebe & Bill Patterson

Lara Pendleton

Martha Pertuz

Bianca M. Philippi

Michael Railiard

Oostur Raza

Malinda & Gary J. Reyes, Sr.

Jane L. Richards

Riordan Foundation

Robyn & Keith Russell

Paul Sakuma

Niranjan Samant

Gabriela R. Sanchis

Laura Sanchis

Richard M. Scheinin

Michele & Randol Schreck

William Schutte

D.P. Shah

Olga Shalvgin & Cilfford S. Orloff

Leslie Shames & Eduardo Díaz

Hilery & Jeff Shay

Shelter Against Violent Environments

Anthony Shen

Louisa & Thomas Shields

Jane & John Siegel

Elizabeth & Carl Silverman

Kate Slater

George Smith

Gwendolyn Smith

Jordan Snedcof

Sarah Stein

Elizabeth & James Stever

Carter Stewart

John Stubler

Mathew Sumner

Elizabeth Sutkus

Marian & George Takis

Richard Tarlowe

Patrick Tehan

Temple Rodef Shalom Sisterhood

Shmuel Thaler

Priscilla Totten

Hoa Truong

United Way of San Diego

Peter Wendell

Westchester Community Foundation

Hollis Wood

Woodrow Wilson Master

Revocable Trust

Zain Jeewaniee Insurance Agency

Joel F. Zemans

In-kind DonationsHRJ Capital

MetLife Resources

Safeway, Northern California Division

Townsend Press

UBS Financial Services

National Corporate Volunteer PartnersSAP America, Inc.

KIPP Supporters

These acknowledgements reflectcontributions received at the time ofprinting for the fiscal year 2004-2005,which ended on June 30. They do notinclude the many donors who send theirgifts to KIPP schools directly. We aregrateful for their ongoing support andbelief in KIPP's mission.

Founders$5,000,000 and aboveDoris and Donald Fisher

College Presidents$1,000,000 to $4,999,999Bill & Melinda Gates Foundation

Broad Foundation

Michael & Susan Dell Foundation

U.S. Department of Education

Walton Family Foundation

Professors$500,000 to $999,999Ewing Marion Kauffman Foundation

Jack Kent Cooke Foundation

Marcus Foundation

SAP America, Inc.

Doctorate$100,000 to $499,999All Stars Helping Kids

Anne E. Casey Foundation

Goldman Sachs Foundation

Kinder Foundation

Koret Foundation

Pisces Foundation

Master’s$25,000 to $99,999Anonymous

Peter Avenali

Charles & Helen Schwab Foundation

Falconwood Foundation

Fitzpatrick Foundation

Genentech Foundation

Mimi and Peter Haas

J.R. Hyde III Family Foundation

Rose Community Foundation

San Francisco Foundation

SAP Labs, LLC.

State Farm Companies Foundation

William & Flora Hewlett Foundation

Bachelor's$5,000 to $24,999Anonymous

Bari Lipp Foundation

The Brown Foundation, Inc.

Patricia R. Byrne

Community Foundation Silicon Valley

Elizabeth & Robert Fisher

Laura & John Fisher

Sakurako & William Fisher

Gap Inc. Foundation

Warren Hellman

The Janet V. Hayes Davis Foundation

Montgomery Kersten & Sheryl Heckmann

Page 32: 2005 KIPP Foundation Annual Report

KIPP schools grow one grade at a time. Listed below are KIPP schools and the grades served in 2005-2006.

Schools

Page 33: 2005 KIPP Foundation Annual Report

During my week recruiting

students, I walked into some of

the most rundown communities

I have ever seen. When we

passed children on the street,

I knew why I was here. KIPP

gives children the opportunity to

have options in this world.

One day, the KIPPsters I recruited

will remember that I knocked on

their doors or stopped them on

the street to tell them about KIPP.

They will grow up and do the

same thing for another student,

just like someone did for me...

and the circle will expand.

Anthony NegronKIPP Academy New York

Class of 2000

Binghamton University Class of 2008Major: Finance

Page 34: 2005 KIPP Foundation Annual Report

Leaders : 8 Great Schools : 12 Teachers : 16 Communities : 20 Growth : 24 Financials : 26

32

Five years into the effort to replicate the success of theoriginal KIPP schools, we are pleased by the results, inspiredby the hard work of 9,000 students and 500 teachers, andhumbled by the challenges we face. We are excited aboutbuilding on the accomplishments of our schools and thelessons we have learned to make the next five years evenmore extraordinary than the past five.

To begin, the KIPP Foundation will increasingly focus on ourcore competency, leadership training and professionaldevelopment. We will serve more students by creating newschools in strategic locations. We will make KIPP schools andthe KIPP Foundation itself sustainable by increasing andlocalizing school support. Finally, we will ramp up our effortsto advocate on behalf of KIPP schools and the policies thatmake them possible at local, state, and national levels, whichwill have a benefit beyond KIPP schools.

With our experience, we believe it is realistic to expect that by2012, KIPP will be:

: More than 100 sustainable schools with strong localsupport;

: 30,000 students striving for success in college and in life;

: A catalyst for change in cities, states, and the nation;

: A leading training program for thousands of teachers andschool leaders; and

: An association of 15,000 KIPP alumni committed to makingpositive changes in their communities.

Sustaining and expanding KIPP’s success, however, dependsupon the passion and participation of people andorganizations committed to helping public education fulfill itspromise of providing opportunity to all. The actual has alreadyproven the possible, yet there is so much more to accomplish.

KIPP will continue to challenge the nation’s beliefs about whatpublic education can achieve with students in underservedcommunities and demonstrate the structural reforms andschool practices that make such achievement possible. To doso, we need your help.

Join us.

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Page 35: 2005 KIPP Foundation Annual Report

KIPP SCHOOLS

KIPP schools share a core set of operating principles known as the Five Pillars,which lay the foundation for students to perform at the highest academic levels:

1. High Expectations. KIPP schools have clearly defined and measurable high

expectations for academic achievement and conduct that make no excuses based on

the background of students. Students, parents, teachers, and staff create and reinforce

a culture of achievement and support through a range of formal and informal rewards

and consequences for academic performance and behavior.

2. Choice & Commitment. Students, their parents, and the faculty of each KIPP school

choose to participate in the program. No one is assigned or forced to attend these

schools. Everyone must make and uphold a commitment to the school and to each

other to put in the time and effort required to achieve success.

3. More Time. KIPP schools know that there are no shortcuts when it comes to success in

academics and life. With an extended school day, week, and year, students have more

time in the classroom to acquire the academic knowledge and skills that will prepare

them for competitive high schools and colleges, as well as more opportunities to engage

in diverse extracurricular experiences.

4. Power to Lead. The principals of KIPP schools are effective academic and

organizational leaders who understand that great schools require great school leaders.

They have control over their school budget and personnel. They are free to swiftly move

dollars or make staffing changes, allowing them maximum effectiveness in helping

students learn.

5. Focus on Results. KIPP schools relentlessly focus on high student performance on

standardized tests and other objective measures. Just as there are no shortcuts, there

are no excuses. Students are expected to achieve a level of academic performance that

will enable them to succeed at the nation's best high schools and colleges.

KIPP Foundation345 Spear Street, Suite 510San Francisco, CA 94105www.kipp.org

KIPP Foundation's MissionThe mission of the KIPP (Knowledge Is Power Program) Foundation is to create a respected, influential, and national network of public schools that aresuccessful in helping students from educationally underserved communities develop the knowledge, skills, and character needed to succeed in collegeand the competitive world beyond. KIPP fulfills its mission by providing aspiring public school leaders with the training and support to create and leadsuccessful new independent KIPP schools in high-need communities across the country.