National Academy FoundationAnnual Report 2012-2013
A Letter from JD Hoye
This year’s Annual Report attests to the work in recent years that positionsthe National Academy Foundation (NAF) to meet its most ambitious goal yet:to graduate 100,000 college and career-ready academy students by 2020.To get us there, NAF has created an exciting momentum of quality assurance among the more than500 NAF academies and is taking our strategy further in districts that serve large populations ofmotivated students. Our impact promises to be exponential.Our report offers a look into three key aspects of NAF’s five-year business plan—increasing impactby ensuring academy quality, student certification, and district engagement—all of which areturning out important and measurable results.To support these strategic growth initiatives, Sandy and Joan Weill and the Weill Family Foundationannounced a $10,000,000 challenge grant. Thanks to the leadership and commitment of NAF’sBoard of Directors and major partners, NAF has met this goal, raising a total of $23,350,000 to fundthe implementation of this important five-year plan.NAF academies are motivated and are increasing their impact and quality year by year. Theirsuccess is key to the 100k goal and this process has consistently surpassed our highest projectionsand expectations.Academy students are working hard to earn NAF Certification, which will demonstrate theircapabilities to colleges and employers.NAF is also partnering with several of the largest school districts in the nation that use the NAFmodel and technical assistance in district-wide reform efforts—the progress these teams havemade is remarkable.This past spring, NAF held its annual Benefit honoring Mark A. Standish and Kim D. Standish,along with RBC Capital Markets, for their commitment to NAF’s success. Sandy Weill and UrsulaBurns joined me on the stage and rallied the audience in support of student opportunities. Classof 2013 graduate of the Academy of Finance and Enterprise in Queens, New York, Josuel Placensia,addressed guests at the Benefit on the importance of internships and helped generate supportduring our Text-to-Pledge drive.All of this is accomplished together with our Board and corporate partners, friends, and thenetwork of NAF academies. Their belief in NAF’s ability to contribute dramatically to high schooleducation reform in this country has propelled our best work so far. Stay close so we can all enjoythe successes yet to come.Regards,JD HoyePresident, National Academy Foundation
NAF Motivates Academiesto Move Up the ModelThree years ago, NAF introduced a continuousimprovement process that includes anassessment tool for academies to track theirprogress and implementation of the elementsof the NAF model: Academy Development,Advisory Board, Curriculum & Instruction,Work-based Learning and Internships. Thestandards that comprise NAF’s model werecreated by a coalition of career academy expertsand researchers.The academies’ degree of implementationdetermines their status within the NAF network,ranging from Under Review (which meets thefewest standards of the model) up to Member(meets some—often new academies thathaven’t yet had a graduating class), Certified(meets most), Model (the NAF model is stronglyin place), and finally, Distinguished (meetsadditional thresholds that show excellence).Research shows that students in NAF academiesachieve better results than those in the sameschool district who are not in NAF academies.NAF academies that performed at the highestlevel on the academy assessment (Model level)realize even greater student outcomes.In the three years that NAF academies havecompleted the academy assessment, they haveconsistently increased their fidelity to the NAFmodel. As part of its 2012-16 business plan, NAFseeks to have 75% of academies at the Certifiedlevel or higher by 2016.Now, with three years of data on academyperformance, NAF staff are mobilizednationwide to understand what is workingfor academies and what kinds of support canhelp. Rather than trying to improve based onanecdotal evidence suggesting what works,the assessments and the continuousimprovement process equip academy teamswith tools to understand their specific needsand areas of strength.Assistant Vice President of AcademyDevelopment Brenda Barry explains the valueof these assessments: “They inform our on-thegroundcoaching and our annual conference—so we know what learning seminars are mostneeded. As academies plan for the conference,they can use their assessment results to choosewhich sessions to attend.”She notes that many academies are motivatedto increase model fidelity after seeing theDistinguished academies highlighted at theannual conference. “We’ve had so many say,‘I want to be on stage next year—tell me whatto do!’ It created an incentive even bigger thanwe ever anticipated.”Kathy Kittel is the Academy of Finance Directorand Career and Technical Education ProgramManager at St. Paul Public Schools in Minnesota.In May of 2012, she and Dan Mesick, Principalof Como Park Senior High School, received aletter from NAF urging them to strengthen theiracademy and advance beyond their status asUnder Review or risk disaffiliation.“We had an academy for seven years,” explainsKittel, “but we never operated it in the way thatNAF requires.” At that time, it was a studentbasedorganization with as few as 12 studentsenrolled. Kittel and Principal Mesick decidedto attend the 2012 NAF Next conference tolearn more.They returned to St. Paul Public Schools inspiredand ready to make some changes.“Before we went to the conference, it seemedlike such a huge undertaking,” says Kittel,who, along with Principal Mesick, took partin several conference calls during which NAFshared expertise on the areas of the model tofocus on first. “We discovered we had a strongadvisory board that just wasn’t being utilizedeffectively—but they were ready and willing tosupport our program!”To support Como Park’s efforts, NAF andTravelers Insurance invited the St. Paul PublicSchools’ Superintendent and other keyadministrative staff members to visit academiesin Hartford, Connecticut, where the NAF modelwas firmly established after only a few years.Kittel says, “They came back embracing the newmodel, which gave us the support we needed.”Como Park proceeded to raise its status twolevels in one year—from Under Review toCertified. In the fall of 2013, Como Park willwelcome its first cohort of more than 50 NAFAcademy of Finance students entering the 9thgrade. The student body includes a significantpercentage of Hmong students, followedby African American and Caucasian students—72% of the student body qualify for free andreduced lunch.Thanks to the school’s Advisory Board, the ComoPark Academy of Finance has new marketingmaterials and a recruitment strategy in place inSt. Paul middle schools. Additionally, studentswill earn college credit at St. Paul College bycompleting the four-year NAF curriculum. ComoPark has even opened a student operated creditunion on school grounds—one of only twocredit unions in the entire state. And, Travelerssponsored the hire of an Academy of FinanceSite Coordinator who starts this summer.Kittel credits Como Park’s evolution to “thesupportive leadership in the St. Paul SchoolDistrict, highly active and committed localbusiness partners and advisory board members,the enthusiasm generated by the NAFNext Conference, teachers, counselors, andadministrators at Como Park who embraced thechallenges, college partners who believe inearly preparation, and of course the technicalassistance and guidance from the team at NAF!”NAF commends Como Park on their hard workand tremendous success and celebrates the factthat Como Park is one of many schools thatare committed to delivering on the promise ofNAF academies.“Everyone has a stake in getting 100,000students ready for college and careers,” saysBarry, who reports that academies are exceedingall targets. “They’re doing this work out therebecause they believe it’s right. They see theimpact on students’ lives.”
STUDENT OUTCOMES TIED TO HIGH QUALITY ACADEMIES ACADEMIES AT CERTIFIED OR HIGHER: 2010-1310010095% 98% 65%% OF STUDENTS88%76% 78%70%71%77% 76% 79% 86%% OF ACADEMIES41%55%66%2016 GOAL75%0EARNED 5+CREDITS, GR. 9EARNED CREDITSTO GRAD, GR. 12EARNED MATHCREDIT, GR. 9EARNED ENGLISHCREDIT, GR. 902010-11 2011-12 2012-13DISTRICT (NON-NAF) NAF ACADEMIES NAF MODEL ACADEMIESCERTIFIED +BELOW CERTIFIED
NAF Certification StrengthensResumes, Transcripts andCompetitive EdgeNAF academy students in every career themecan now earn NAF Certification—acredential that is increasingly being recognizedby colleges, universities, employers andprofessional trade associations for its assurance,backed by data, that these NAF graduates arecollege and career ready.“No other national education organization hasyet produced something this comprehensiveand balanced,” explains NAF Special Advisoron Education Policy Andrew Rothstein. “Thestudent certification and assessment systemencompasses the career and technicalknowledge, work-based skills and everything elsethat the NAF experience is supposed to be.”Today, NAF student certification is a centralfeature of NAF’s overall evaluation system toassure academy quality throughout the networkand positive outcomes for NAF students.Student assessments mirror NAF’s values abouthow students must be supported to learnand demonstrate their skills and knowledge.It uses Project Assessments, End of CourseExaminations and Work-based LearningExperience Assessments, completed by aninternship or workplace supervisor, to measurewhat students know and what they can do.Juniper Networks and SAS, two major technologycompanies, have linked their credentials’requirements to NAF Certification, makingNAF-certified students eligible for admission toentry-level training programs for professionalemployees. This degree of access typicallyextends to budding professionals several yearsolder and further into their education than highschool graduates.“Responsible educators and responsiblecorporate citizens want to help their ownprofessions and enhance the lives of students,”says Rothstein. “They want the professionalpipeline to look like America and they wantlower income students positioned for upwardmobility. NAF’s curriculum and certificationassessment is a superb vehicle for achievingthose things.”The Council on Economic Education and theGlobal Travel and Tourism Partnership haveagreed to recognize–and in some cases offerjoint certification with–NAF’s system. Also, theInternational Baccalaureate is working withNAF to expand its Career-Related Certificate toinclude NAF Certification.District Engagement StrategyRaises Impact, Enrollmentand Student PerformanceSeveral of the nation’s largest school districtsare partnering with NAF to create major,lasting reforms.NAF’s commitment to district engagementrepresents a shift in the way the organization hastraditionally done business. Rather than focusingon increasing the numbers of NAF academies,this strategy aims to raise the quality of theeducation that districts are able to provide toboth academy and non-academy students.“Districts are driven to come to us based on ourdata that shows NAF’s impact,” NAF DistrictEngagement Director Mike Henson said.Henson works with teams in Oklahoma City,OK, Prince George’s County, MD, Dallas, TX, andBirmingham, AL. They serve a combined totalof 110,097 high school students.academies within the district and yield positiveresults for non-academy students as well.Failing schools, low graduation rates,communities where economic inequalities andenvironmental conditions indicate a clear need:these are the districts where NAF finds its mostmotivated partners and does its best work.Henson cites recent data showing that youngpeople who were once deemed most at-risk arenow graduating at a higher rate through NAFacademies. NAF has measured increases in thenumber of students attending school regularly,earning required credits, reaching math andEnglish proficiency, and achieving GPAs over2.0. The higher retention and attendance ratesdirectly lead to additional state funding forschools, which more than covers the cost of NAF.District engagement teams, led by NAF andincluding principals, superintendents andbusiness leaders, develop customized plans.No two plans are the same, as every districtbrings unique strengths, challenges, andleadership to the table. Yet all create systemswith NAF’s help that will sustain strong NAF“Most of them know us and have hadsuccess with NAF on a smaller scale,” DistrictEngagement Director Steve Casa said. “We’rethe best game in town and are committed tobe there when any district calls and says they’reready to go.”
NAF Benefit GeneratesOffers of Internships andHonors RBC Capital MarketsJOSUEL PLACENSIA—Class of 2013 graduatefrom the Academy of Finance and Enterprise,Queens—addressed guests on the importance ofinternships. Here is an excerpt from his remarks:NAF academy students here tonight representthe 62,000 of us who are working long days,most weekends, and through the summer tomeet NAF’s gold standard.At our annual Benefit on May 6, NAF honoredMark A. Standish and Kim D. Standish, alongwith RBC Capital Markets, for their belief inNAF and in the crucial role of business inhelping schools and students succeed.The event, held at Cipriani Wall Street inNew York City, provided an opportunity for NAFto recognize the philanthropic and corporateleadership of Mark Standish, President andCo-Chief Executive Officer of RBC CapitalMarkets. He credits his success to theDuke of Edinburgh Award, a youth leadershipdevelopment program in the U.K. that helpedhim develop skills and confidence outside ofthe classroom.Standish joined the NAF Board of Directorsin 2013. He and his wife Kim are determinedthat they and RBC Capital Markets can playan important role in furthering NAF’s workand impact.The event highlighted students representingDistinguished NAF academies from Florida,New York, Texas, California, and Connecticut.It also featured a Text-to-Pledge drive whichraised $43,000 in individual funds (for atotal of $1.65 million raised) and generatedoffers of internships from guests. NAFthanks Benefit Co-Chairs Ursula Burns, KenChenault, Gene Ludwig, and Jim Robinsonand supporters including Capital One, Citi,Barbara and Stephen Friedman, JosephPlumeri, Promontory Financial Group, TheTravelers Companies, Verizon Communicationsand Xerox Corporation for their generouscontributions and enthusiastic participation.One of the ways NAF makes sure that studentsare getting all the benefits of a NAF educationis by securing internships on our behalf. Theseinternships aren’t given to us. We prepare forthem. We don’t get the job, we earn it. You don’thave to teach us how to make a spreadsheet,conduct research, write reports, or deliver results;we’ve got it covered.Up until a couple of years ago, my mom andI lived in an attic apartment—one room. Thisroom became a symbol to me of the social andeconomic constraints we faced. It might havecontained me and kept me small. Two years agomy life opened up, and NAF is a big part of that.NAF’s support, including my internship, has givenme confidence and the belief that I am capableof achieving whatever I desire. I am about tobecome the first in my family to graduate fromhigh school. I also won a full scholarship toattend Babson College. At Babson, you start outin business internships before coursework andI’m all lined up to work with Ernst & Young thissummer, and I head over to KPMG in the fall.I know the value of these opportunities. NAF’sgold standard is my standard too. I’ll take itwith me on my journey and someday I too willbe in your place, out there, with the motivationand the means to give others the chances I’vebeen given.
BREAKDOWN OF EXPENSESBALANce ShEETSyears ended December 31, 2012 and 201120122011PROGRAMS 75%ASSETScash and cash equivalents $contributions and grants receivable, netother receivables, net of allowance of $75,578 in 2012 and $46,294 in 2011prepaid expenses and other assetsinvestmentsequipment, furniture, and fixtures, net768,0743,339,007554,268120,32213,880,607606,832137,9151,861,916560,616146,9377,371,962387,746total assets $19,269,11010,467,092FUNDRAISING 10%GENERAL &MANAGEMENT 15%Liabilities and Net ASSETSliabilities:accounts payable and accrued expenses $deferred revenuesamounts held for others1,324,607—21,0851,703,404250,00021,085total liabilities1,345,6921,974,489net assets:unrestrictedtemporarily restrictedpermanently restricted4,464,76812,928,650530,0004,269,2803,693,323530,000total net assets17,923,4188,492,603total liabilities and net assets $19,269,11010,467,092STATEMENTS of acTIvITIESyears ended december 31, 2012 and 201120122011changes in unrestricted net assets:support and revenue:contributions and grants $membership feesregistration feesspecial eventinterest and dividends, netnet realized and unrealized gain (loss) on investmentscontract revenueother incomenet assets released from restrictions2,885,4851,037,275582,1812,760,000218,65934,436222,330226,282,8773,118,0071,112,301524,6751,619,200319,420(170,212)212,1657,6547,312,348total unrestricted support and revenue14,023,26514, 055,558expenses:program servicessupporting services:management and generalfund-raising10,442,3961,991,5091,393,87211,042,5952,100,5031,417,258total supporting services3,385,3813,517,761total expenses13,827,77714,560,356increase (decrease) in unrestricted net assets195,488(504,798)changes in temporarily restricted net assets:contributionsinterest and dividendsnet realized and unrealized gain on investmentsnet assets released from restrictions15,450,85916,60150,744(6,282,877)4,657,72915,7624,427(7,312,348)increase (decrease) in temporarily restricted net assets9,235,327(2,634,430)increase (decrease) in net assets9,430,815(3,139,228)net assets at beginning of year8,492,60311,631,831net assets at end of year $17,923,4188,492,603
BOARD OF DIRECTORSSanford I. Weill – ChairmanFounderNational Academy FoundationKenneth I. Chenault – Vice ChairmanChairman & Chief Executive OfficerAmerican Express CompanyLinda S. Huber – TreasurerExecutive Vice President & Chief Financial OfficerMoody’s CorporationEugene A. Ludwig – SecretaryFounder & Chief Executive OfficerPromontory Financial Group, LLCAndy F. BessetteExecutive Vice President & Chief Administrative OfficerThe Travelers Companies, Inc.Jeffrey BrillPartnerSkadden, Arps, Slate, Meagher & Flom LLPUrsula M. BurnsChairman & Chief Executive OfficerXerox CorporationRobert C. DughiExecutive ChairmanU.S. Retirement PartnersHarold McGraw IIIChairman, President & Chief Executive OfficerMcGraw Hill FinancialJoseph J. Plumeri IIFormer Chairman and Chief Executive OfficerWillis Group Holdings PLCHunter R. Rawlings IIIPresidentAssociation of American UniversitiesJames D. Robinson IIIGeneral Partner & Co-FounderRRE VenturesBarbara Benioff FriedmanTrustee Emerita, Cornell UniversityVice-Chair of Overseers, Weill-Cornell Medical CollegeJohn HinshawExecutive Vice President, Technology & OperationsHewlett-Packard CompanyJD HoyePresidentNational Academy FoundationA. Kirk LantermanPresidentKirlan Venture CapitalLowell C. McAdamChairman & Chief Executive OfficerVerizon CommunicationsRobert SchwartzFrancis Keppel Professor of Practicein Educational Policy and AdministrationHarvard Graduate School of EducationMark A. StandishPresident and Co-Chief Executive OfficerRBC Capital MarketsRonald A. WilliamsChairman & Chief Executive OfficerRW2 Enterprises, LLCSanjiv YajnikPresident, Financial ServicesCapital One Financial CorporationPhotography: Don Tracy, Jerry Speier, Elsa Ruiz, City Polytechnic High SchoolArt Direction & Design: richardchartierdesign.comMissionThe National Academy Foundation is dedicated to preparing young people forcollege and career success using its proven educational model.VisionThe National Academy Foundation envisions a world in which all young peoplehave the skills, knowledge and experience needed to thrive.ABOUT218 W 40th Street, Fifth FloorNew York, NY 10018T: (212) 635-2400F: (212) 635-2409www.naf.orgThe National Academy Foundation (NAF) is an acclaimed network of career-themedacademies that opens doors for underserved high school students to viablecareers. For over 30 years, NAF has refined a proven model that provides youngpeople access to industry-specific curricula, work-based learning experiences, andrelationships with business professionals.NAF academies focus on one of five career themes: finance, hospitality & tourism,information technology, engineering, and health sciences. Employees of more than2,500 companies volunteer in classrooms, act as mentors, engage NAF students inpaid internships, and serve on local advisory boards.