TransformingCommunities

TransformingLives2013

Annual Report

The AllianceCommitment...

Ensure that all students receive a rigorous college-preparatory education.

Provide small personalized learning environments where students

develop quality relationships with teachers and principals.

Offer more time for learning with extended school days and a longer

school year than traditional public schools.

Guarantee highly-effective educators for all students.

Work with parents as partners in their children’s education.

Embrace innovation to remain relevant to the needs of our students and

the world in which they live.

Operate using a financially sound and efficient business model.

As we enter our 10th year, I remain amazed and inspired by our hard working team of teachers, administrators, staff, and families who prove day in and day out that exceptional truly can be the rule in public education. It’s hard to believe that in such a short time we have grown to 22 middle and high schools that educate more than 10,000 students across Los Angeles. If we were a freestanding district, we would be larger than 75% of school districts in the state of California. More importantly, Alliance schools continue to significantly outperform neighboring public schools and Los Angeles Unified School District overall. In 2013, U.S. News & World Report ranked six of our high schools in the top 5% nationwide, and Newsweek recognized four of those schools among the “25 Most Transformative High Schools” in the country. This past June, we graduated 1,200 seniors, bringing our total to more than 4,500 graduates since our founding. Almost all Alliance graduates are low-income, and 98% are Latino or African American. They are the students who have largely been failed by our public schools, yet Alliance sends 95% of them to college. Many are the first in their family to graduate from high school and most are the first to go to college. Their success is transformative, changing not only their lives, but also their communities and the possibilities for public education.

The coming year promises to bring more change, and with it, opportunity. Nurturing and retaining effective teachers will remain a central focus of our work, especially in light of the coming transition to the Common Core. We will expand our commitment to blended learning, putting digital education tools in the hands of all our teachers and students. And, while we are proud of our high school graduation rate, we believe our promise to our students doesn’t stop there. We will strengthen our college counseling and alumni support, ensuring that our students continue to succeed after they leave us. In 2014, we will open four new schools, expanding the Alliance opportunity to many more students, and continuing to show that itis possible to operate a large, successful urban school district.

First and foremost, I am grateful to our parents, teachers, and school leaders who surround our students with the day to day support they need to succeed. And to our Board of Directors, donors, and volunteers, thank you for sharing your time, talent, and resources to ensure all students receive a high quality education. Together we are transforming lives, communities,and the future of public education.

Dear friends,

Sincerely,

1

Judy Ivie Burton Alliance President and CEO

The Alliance success comes from a relentless focus on student achievement. It also comes from a deep commitment to constant improvement. Alliance embraces change to ensure we deliver an education that is relevant to the needs of the 21st century student. We welcome the new Common Core State Standards, which challenge students and teachers with far more rigorous and truly college-ready expectations. While there has been much public, and often heated, debate about the role of technology in schools, Alliance has quietly and successfully integrated digital learning tools into our classrooms over the past four years. We have seen amazing innovation bubble up from our teachers who use technology as a tool to create a more personalized, engaging, and dynamic learning environment for our students. The creativity and passion of Alliance teachers has been central to the accomplishments of our students. We are committed to supporting and developing teachers, and, as importantly, to fairly compensating them for their success.

None of this would be possible without the diverse and committed Alliance community.

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At Alliance schools, we strongly believe that all students can achieve if given the opportunity.We operate 22 high-performing high schools and middle schools in low-income, high-need communities in Los Angeles.

Alliance schools offer students a small, safe learning environment, rigorous coursework with a relentless focus on college preparation, and access to the latest technology and online learning tools.

In 2013 we sent more than 1,200 graduates to colleges and universities across the country. Most of them were the first in their family to attend college, and almost certainly would not have gone without an Alliance education.

Transforming thelives of students whoneed us most...

Demographics

Of these students:

2%

Latino

African American

Other

90%

8%

Qualify for Free/ReducedMeal Program93%

Have Special Needs8%

17% Are English Language Learners

3

Transforming thelives of students whoneed us most...

In 2013 we sent more than 1,200 graduates to colleges and universities across the country, most of whom were the first in their family to attend college.

Performing below grade level in reading and math.

Lacking courses required for them to apply for college.

Having passed the courses required to apply to a University of California or Cal State University.

Having been exposed to college-level coursework and advanced placement classes.

Prepared to succeed in college and future careers.

The average student comes to anAlliance middle or high school...

Every graduate leaves Alliance...

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Great urban public schools don’t have to be “islands of excellence.” It is possible to achieve academic success on a large scale. Through strategic and systematic growth, we have been able to expand our reach while continuing to operate high-performing schools that educate many thousands of students at high levels. If the Alliance network was a standalone district, we would be larger than 75% of school districts in the state of California.

Transforming theeducational system...

4 Alliance schools ranked

among the top“Most Transformative”high schools in thenation by Newsweek.

25

6 Alliance schools ranked

in the topof highschools nationwideby U.S. News & World Report.

5%

Alliance Success...

AtScale...

5

All Alliance schools achieved Academic Performance Index

scores higherthan their neighborhood average.API

of incoming 9th graders

graduated from

high school in four years,and of those graduates

went on to college.

Alliance-wide,

94%95%

seniors graduated from 12

Alliance high schools.

More than

1,200

success in the

century globaleconomy.

Every Alliance student received state-of-the-artdigital learning tools to prepare them for

21st

Alliance added 3 new schools;we now serve more than

across 15 highschools and 7 middle schools.

10,000students

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A college education changes more than just the life of a student, it has the power to change an entire community. Those with a college degree are more likely to be active in their neighborhoods by volunteer-ing and voting in local elections. Most importantly, college graduates serve as role models for their fami-lies, friends, and neighbors, inspiring them to follow in their footsteps and earn a college degree.

Alliance alumni are living proof of the positive impact a college graduate can have on their community. Many of our alumni are creating social change through jobs in public policy and the nonprofit sector, or working for Alliance as teachers, tutors, or school support staff.

A college graduate is…

less likely to live in povertythan a person without a college degree.67%

less likely to require public assistancethan a person without a college degree.88%

More thanin their community as a person without a college degree.

2x as likely to volunteer

Will earnthan a high school graduate, and pay 83% more in taxes.

66%more income in their lifetime

more likely to vote than a person without a college degree.2x

Transformingcommunities...

With everything Alliance has given me, how could I not want to come back and support our schools? I am proud to serve as an example for other students in my community of what you can accomplish with a great education.”

“ —Denae Joseph Alliance College-Ready Academy High School 5, Class of 2012 UCLA, Class of 2016

25 8

Alliance is a learning organization. We embrace innovation to provide our students with the tools they need for success in today’s society. While we stay true to our core values, the way in which those core values are realized constantly changes to reflect the needs of our students and the world in which they live.

In 2013, students at every Alliance school received iPads and access to the latest online learning software. Additionally, we expanded our industry-leading BLAST model (Blended Learning for Alliance School Transformation) to 10 Alliance schools. These classrooms are fully digital, using technology to support teachers in making learning a highly personalized, relevant, and collaborative experience. In a year of academic growth across all Alliance schools, BLAST high schools saw the largest increase in academic performance with an average API increase of 52 points.

Transforming the 21st century classroom...

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Transforming andelevating teachers...

Transforming the 21st century classroom...

Alliance is a national leader in elevating and transforming the teaching profession. Our goal is to attract, nurture, and retain top talent in the classroom. Teachers are our greatest resource, and are most responsible for the success of our students. This past year, we expanded support systems for our teachers, giving them the tools, time, and coaching needed to perfect their craft.

Every Alliance teacher received 10 days of instructional training before the school year began, and an additional six days of professional development throughout the year. Additionally, we provided personal coaching and mentoring for new teachers. Alliance has begun developing comprehensive career paths for highly-effective teachers, including opportunities as master teachers, mentor coaches, and administrators. While many educators are still trying to figure out how to tie pay to performance, Alliance has developed a system of providing teachers with performance-based bonuses.

By providing training and support, as well as options for career development and salary growth, Alliance ensures that the best teachers stay where they are needed most – in front of students.

Transformingfutures...Success means more than preparing our students to graduate from high school, it means preparing our graduates to succeed in college and future careers. Alliance not only helps students prepare for college, we also provide them with support for a successful transition once they graduate.

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Every Alliance graduate has passed the courses required to apply to a public, four-year university in California. Alliance has increased focus on non-fiction reading and writing to better prepare students for college-level coursework. We also encourage students to take at least two college-level advanced placement classes, and offer free SAT preparation courses for all students.

The combination of rising college costs and budget cuts has made attending even public universities far more challenging for our students. Alliance college counselors work with families to identify schools that can provide financial aid benefits and support programs for low-income, first generation college students.

Alliance alumni are generally the first in their family to attend college. Transition-ing to a large university is often a shock, leaving many students feeling socially isolated and unsure how to navigate the college system. This year, Alliance launched the Alumni Mentorship Program (AMP), which matches Alliance alumni already thriving in college with incoming Alliance college freshman to ensure their successful integration into college life.

Transformingfutures...

Academic preparation

College matching

Social support

Alliance provides students withthe tools for success in college.

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PASSIONATE VOLUNTEERS& COMMUNITY PARTNERS

Transformingrelationships...

Alliance schools are a community ofconcerned individuals working togetherto ensure our students’ success:

HIGHLY-EFFECTIVEPRINCIPALS & TEACHERS

GENEROUS BOARDMEMBERS & DONORS

STUDENT SUCCESS

PASSIONATE VOLUNTEERS& COMMUNITY PARTNERS

INVOLVED PARENTS& FAMILIES

Transformingrelationships...

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Alliance at a glance...Our Goals: Open 10 new schools in five years, expanding the Alliance opportunity to an additional 5,250 students each year.

Expand digital learning tools to all Alliance students.

Create a world-class educator talent management system to recruit, nurture, and retain highly-effective teachers and principals.

Increase college completion rates by strengthening college preparatory curriculum and support for Alliance alumni.

Strengthen college readiness and successfully transition to Common Core.

Alliance Enrollment

0

3,000

6,000

9,000

12,000

15,000

2018-192016-172015-162014-152013-142012-132011-122010-112009-102008-092007-082006-072005-062004-05

School Year

Number ofStudents

22 = 10,000 > 75% of CA school districtsstudentsschools

15

Alliance at a glance...

100% of Alliance graduates have passed the courses necessary to apply to a University of California or Cal State University.

100%

95% of Alliance graduates go on to college.

95%

High School Graduation Rate

0

20

40

60

80

100

Alliance CaliforniaLAUSD

67%

79%

94%

22 = 10,000 > 75% Academic Performance Index

0

20

40

60

80

100

Alliance CaliforniaLAUSD

67%

79%

94%

Neighboring Schools LAUSD Schools California Schools Alliance Schools600

650

700

750

800

653

693

735

760

16

Alliance financials... 22,383,412 1,143,555 1,400,750 25,251,707 12,072,904 926,137 63,178,464 956,126 1,370,000 16,386,995 626,237 7,016,189 170,936 3,872,410 140,355,587 233,932,945

4,382,087 8,342,162 9,500 300,000 0 10,083,270 23,117,019 0 129,025,000 267,976 61,071

152,471,065

81,461,879 233,932,945

Liabilities and Net Assets

Historical Revenue and Expenses

Combined Statement of Financial Position 2013

Assets

$120,000,000

100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

$0Total Revenue

Total Expenses2006 2007 2008 2009 2010 2011 2012 2013

CURRENT ASSETS Cash and cash equivalents Grants, contributions and pledges receivable, current portion Related party receivable, current portion Public funding receivables, current portion Asset limited as to use, current portion Prepaid expenses and other current assets Total current assets

Grants, contributions and pledges receivable, net of current portion Related party receivable, net of current portion Note receivable, net of current portion Deferred rent receivable Assets limited as to use, net of current portion Other long-term assets Deferred financing costs Property and equipment, net Total assets LIABILITIES Accounts payable and accrued expenses Deferred revenue Due to beneficiary Related party loan payable, current portion Long-term capital lease obligation, current portion Long-term debt, current portion Total current liabilities Long-term capital lease obligation, net of current Long-term debt, net of current Liability for asset retirement obligation Deferred rent liability

Total liabilities

Total net assets

Total liabilities and net assets

17

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

$6,000,000

Public Per-Pupil FundingPrivate Investment

Year 5Year 4Year 3Year 2Year 1DevelopmentYear

150 Students

300 Students

450 Students

600 Students

600 Students

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

$6,000,000

Public Per-Pupil FundingPrivate Investment

Year 5Year 4Year 3Year 2Year 1DevelopmentYear

150 Students

300 Students

450 Students

600 Students

600 Students

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

$6,000,000

Public Per-Pupil FundingPrivate Investment

Year 5Year 4Year 3Year 2Year 1DevelopmentYear

150 Students

300 Students

450 Students

600 Students

600 Students

Fiscal 2013Income & Expenses

Expenses$86,793,603

Instruction (Program) $63,288,224

Operations and Administration $12,069,610

Fundraising$442,981

Facilities and Interest$10,992,788

72.9%

13.9%

0.5%

12.7%

Revenue & Support$99,574,990

Public State & Local Funding $73,314,078

Federal Funding $15,575,247

Private Contributions $7,955,060

Other Revenue $2,730,605

73.6%

15.6%

8.0%

2.7%

Alliance School Budget Public vs. Private Funding

Alliance schools areself-sustaining on publicrevenue after four years.

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1 2 3Help us grow the Alliance network and provide more students with a high-quality public education.

Make a gift today – Donations can be made by check, credit card, stock, or wire transfer. Contact Catherine Suitor at 213-943-4930, ext.1036 or csuitor@laalliance.org to learn more, or make a gift online by clicking the Donate Now button at www.laalliance.org.

Make a deferred gift – Consider making a deferred charitable gift as part of your estate planning. Often planned gifts allow supporters to make a more significant contributionthan they can make today. The most common legacy gift is a simple bequest which names Alliance as a beneficiary in your will. For more information about making a deferred gift, contact Catherine Suitor at 213-943-4930, ext. 1036 orcsuitor@laalliance.org.

Share your time and experience with Alliance students – We offer a number of volunteer opportunities including mentorship programs, career days, library book drives, and school beau-tification projects. Learn more about upcoming Alliance volunteer projects and join our volunteer mailing list by clicking the Get Involved button at www.laalliance.org.

Spread the word about Alliance schools – Host a “friend-raising” event to help Alliance grow its family of supporters. For more details, contact Catherine Suitor at 213-943-4930, ext. 1036 or csuitor@laalliance.org.

Join Alliance’s online community to receive regular Alliance updates and information about education reform efforts. Sign up for our mailing list by clicking the Stay Informed button at www.laalliance.org.

How to get involved...There are 3 easy ways to get involved:

laalliance.org

Donate Volunteer Stay Informed

Visit

to sign up & stay informed.

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How to get involved...There are 3 easy ways to get involved:

laalliance.org

Stay Informed

Alliance Senior Management

Judy Ivie Burton, President & CEOAlliance College-Ready Public Schools

Alliance Board Of Directors

Frank Baxter, Co-ChairJefferies & Company, Inc. Tony Ressler, Co-ChairAres Management, LLC

Harold Williams, Vice ChairThe J. Paul Getty Trust Alan ArkatovChanging.edu

Judge David Cunningham IIIL.A. Superior Court

Joseph DrakeGood Universe

David FisherCapital Group International, Inc.

Stewart KwohAsian Pacific American Legal Center

Harry LevittUniversal Operations Risk Management

Meyer LuskinScope Industries

Richard Merkin, M.D.Heritage Provider Network

Neal Millard Musick, Peeler & Garrett LLP

Gayle MillerGo Alongside Foundation

Theodore R. MitchellNewSchools Venture Fund

Dale OkunoOkuno Associates, Inc.

William OuchiAnderson School of Management, UCLA

Richard J. RiordanFormer Los Angeles Mayor

Virgil RobertsBobbitt & Roberts

Darline P. Robles, Ph.D.Rossier School of Education, USC

Araceli RuanoCenter for American Progress

Fred SimmonsFreeman Spogli & Co

Eva SternInsideOUT Writers

Ronald D. SugarNorthrop Grumman Corporation

Marie WashingtonCalifornia Community Foundation

C. Frederick WehbaBentleyForbes

Alliance Senior Advisors

Robert ErburuTimes Mirror Company (retired)

Luis de la FuenteThe Broad Foundation

Antonia HernándezCalifornia Community Foundation

Paul C. HudsonBroadway Federal

Dan KatzirThe Broad Foundation

Robert E. WycoffARCO (retired)

Board of Directors

Young Professionals BoardErik Kronstadt, Board ChairConsultant

Rebecca AgonafirMunchkin, Inc.

Kamala Avila-SalmonUniversal Pictures

Todd BeileyKayne Anderson Rudnick

Nicole BennettBoston Consulting Group

Eric BrightBel Air Investment Advisors, LLC

Monica R. Briseño Cox, Castle & Nicholson, LLP

Will Craig Capital Group Companies

Grayce FrinkSkadden, Arps, Slate, Meagher &Flom LLP & Affiliates

Ingrid GarcesSkycrown, Inc.

Cynthia GonzalezLoyola Marymount University

Casey HarmonToyota Financial Services

Andrea JohnGoldman Sachs & Co.

Shilpa Kumar KPMG

Jonathan LischkeThe GPI Companies

Sinthuja NagalingamCornerstone Research

Krystal O’Leary FloresCollegeSpring

Sarah Ouchi TsaiStacy Blackman Consulting

Kristin SalayaPricewaterhouseCoopers

Almuhtada SmithAbaco Partners, LLC

Brent TjarksCity National Bank

Chris WeberAnderson School of Management, UCLA

Transforming Leadership...

German Oliva Photography & Cinema

Mark Savage Photography

Seed Agency

Shaun Fenn Photography

Giving from July 2012 - November 2013

Acknowledgements

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$1,000,000+Bill and Melinda Gates FoundationBloomfield Family FoundationCarol and James Collins$500,000+The Ahmanson FoundationKathy and Ambassador Frank BaxterThe Broad FoundationMariana and David FisherThe Walton Family Foundation$250,000+AnonymousThe Green FoundationDr. Richard MerkinThe Riordan FoundationUnited Way, Inc.W.M. Keck Foundation$100,000+AnonymousFrank McHugh-O’Donovan Foundation, Inc.John W. Carson FoundationRenee and Meyer LuskinMichael and Susan Dell FoundationThe Paul E. Singer FoundationResnick Family Foundation, Inc.$50,000+Joseph Drown FoundationK & F Baxter Family FoundationKissick Family FoundationPatti and Peter NeuwirthAyako and Dale OkunoThe Skirball FoundationSusan and Eric SmidtEva and Marc Stern$25,000+Edison InternationalFarah and Steve GoziniEJ and Gregory Milken NewSchools Venture FundCarol and Dr. Bill OuchiDr. Olga Mohan and Fred SimmonsSuperior GrocersWhittier Trust Company$10,000+Apple, Inc.California Community Foundation

The Carol and James Collins FoundationPriscilla and James HalperThe James Irvine FoundationGayle MillerBrenda and Virgil RobertsSempra EnergyValerie and Ronald SugarCindy and Richard TroopSusan and C. Frederick WehbaHarold Williams$5,000+AECOMFox Entertainment GroupRobert LandesRoyal Dining Catering, Inc.Marie Washington$1,000+Bank of America Charitable Foundation, Inc.Bank of the WestLeah and Gregory BergmanJudy Ivie BurtonConfidence FoundationLynne and James DeWittMrs. William H. Doheny, Sr.The Education TrustJoan and David HillRichard HiltonHolly Du-Hyun and David HyunPatricia and Michael KlowdenLiberty Hill FoundationJulie and Patrick McCormickMarianne and Lance MillerKevin MohanRobert PambelloNancy and Barry SandersMarilyn and Eugene SteinCatherine Suitor and Jorge RamirezTeri and Larry WalkerWendy and Jay Wintrob$500+Nelson ChengFinectJoanne Freed and Richard MendelsonAda GeraghtyThomas GiovineMarta and Casey Harmon

Andrea JohnDaniel KrauthammerErik KronstadtJohn KronstadtNeal MillardSarah Ouchi Tsai and Vince TsaiSilicon Valley Community FoundationEdward SimmonsUP TO $499 Rebecca AgonafirAndrew AgzarianKamala Avila-SalmonTodd BeileyAdam BrightEric BrightMonica BriseñoKatie BuchananKimberly CockrellConnie CollingwoodWilliam CraigJohn DaleKara FoxIngrid GarcesJeffrey GarciaJulie GerchikCynthia GonzalezTaylor GrigsbyKrisen InghramMohsen KhanLaw Offices of Stephen A. KingGreg KoenigJonathan LischkeSinthuja NagalingamGarret NeimanKimberly O’LearyKrystal O’Leary FloresKelly and David PokressAraceli RuanoKatharine SimmonsSingerLewak, LLPAlmuhtada SmithAnne and David SuitorChris WeberSylvia WeberChris Yontez

Alliance Donors...

“When we found out there was an Alliance high school in Huntington Park, the neighborhood where Jim grew up, we knew we wanted to support the school. We are honored to provide Alliance students with the same opportunities for success that we had.”

— Carol and Jim Collins School Naming Sponsors, Alliance Collins Family College-Ready High School

ALLIANCE COLLEGE-READY

PUBLIC SCHOOLS601 South Figueroa Street,

4th FloorLos Angeles, CA 90017

(213) 943-4930www.LAAlliance.org

Alliance High SchoolsAlliance Cindy & Bill Simon Technology High School10720 Wilmington AvenueLos Angeles, CA 90002

Alliance College-Ready Academy High School 54610 South Main StreetLos Angeles, CA 90037

Alliance College-Ready Academy High School 161575 West 2nd StreetLos Angeles, CA 90026

Alliance Collins Family College-Ready High School2071 Saturn AvenueHuntington Park, CA 90255

Alliance Dr. Olga Mohan High School644 West 17th StreetLos Angeles, CA 90015

Alliance Environmental Science and Technology High School2930 Fletcher DriveLos Angeles, CA 90065

Alliance Gertz-Ressler High School2023 South Union AvenueLos Angeles, CA 90007

Alliance Health Services Academy High School12226 South Western AvenueLos Angeles, CA 90047

Alliance Judy Ivie Burton Technology High School10101 South Broadway Los Angeles, CA 90003

Alliance Marc & Eva Stern Math and Science School5151 State University DriveLos Angeles, CA 90032

Alliance Media Arts and Entertainment Design High School113 South Rowan AvenueLos Angeles, CA 90063

Alliance Renee & Meyer Luskin Academy High School2941 West 70th StreetLos Angeles, CA 90043

Alliance Susan & Eric Smidt Technology High School211 South Avenue 20Los Angeles, CA 90031

Alliance Tennenbaum Family Technology High School2050 North San Fernando RoadLos Angeles, CA 90065

Alliance William & Carol Ouchi High School5356 South 5th AvenueLos Angeles, CA 90043

Alliance Middle SchoolsAlliance Christine O’Donovan Middle Academy5355 South 4th AvenueLos Angeles, CA 90043

Alliance College-Ready Middle Academy 49719 South Main StreetLos Angeles, CA 90003

Alliance College-Ready Middle Academy 5211 South Avenue 20Los Angeles, CA 90031

Alliance College-Ready Middle Academy 72941 West 70th StreetLos Angeles, CA 90043

Alliance College-Ready Middle Academy 12100 East 49th StreetLos Angeles, CA 90011

Alliance Jack H. Skirball Middle School603 East 115th StreetLos Angeles, CA 90059

Alliance Richard Merkin Middle School2023 South Union AvenueLos Angeles, CA 90007

The mission of Alliance College-Ready Public Schools, a nonprofit charter management organization, is to open and operate a network of small, high performing high schools and middle schools in low-income communities in California with historically under-performing schools, that will annually demonstrate student academic achievement growth, and graduate students ready for success in college.