Executive Compensation at Harlem Children’s Zone (2020)

Harlem Children’s Zone (HCZ) was initially established in 1970 as the Rheedlen Centers for Children and Families, New York City’s first truancy prevention program. 21 years later in 1991, the organization took PS 194 and turned it into a community center for after school, weekend, and summer programs for children and families in the local Harlem neighborhood.

Today, HCZ provides free support (after school programs, parent workshops, preschool programs, health programs, and charter schools) to nearly 100 blocks in the Harlem neighborhood to keep kids on track through childhood, college, and the early job market.

HCZ has 19 voting members (board members) on its governing body (Board), 16 of whom are independent.  15 of the 19 (79%) are male while 4 of the 19 (21%) are female (note: the Form 990 does not reported gender.; determinations were made based on name and google searches).

Based in Harlem in New York City, HCZ reported total revenue of $135 million in 2020, most of which came from contributions, gifts, and grants.

Expenses totaled $105 million with the largest expense reported to be compensation.  2,030 employees received $60 million in compensation, which equates to an average compensation of $30,000.  77 employees received more than $100,000 in compensation with the 13 most highly compensated reported to be:

• $705,987:  Anne Williams-Isom
• $638,907:  Conrad Pinnock, Senior Advisor
• $610,736:  Mindy Miller, VP of Development
• $513,261:  Martin Lipp, Director, Communications
• $511,631:  Kwame Owusu-Kesse, COO (through 6/20) CEO next year
• $500,404:  James D Hutter, CFO
• $493,034:  Marquitta Speller, Sr Managing Director
• $374,749:  Betina Jean Louis, Director of Evaluation
• $325,738:  Tracey Jenkins, Procurement Officer
• $309,982:  Justin Maker, Sr Managing Director
• $282,419:  Michelle Germaine, Strategic Development Initiatives
• $227,122:  Geoffrey Canada, President
• $156,528:  Jennifer Klein, Chief Development Officer

7 of the 13 most highly compensated employees are female while 6 of the 13 are male.

On the Form 990, Schedule L, Part IV, Business Transactions Involving Interested Persons, 5 transactions with board members were reported.  All of these transactions involve investments in various funds and managment/performance fees. For details on these transactions see the Form 990, Schedule L, Part V Supplemental Information.

53 independent contractors received more than $100,000 in compensation with the five highest reported to be:

• $1,530,860:  F-INT LLC, of New York, NY for construction services
• $  867,549:  XEROX Corp, of Norwalk, CT for lease of copier machines
• $  717,885:  The Ultimate Software Group, of Weston, FL for HR software services
• $  652,829:  Sysco Food Services, of Jersey City, NJ for food delivery
• $  584,085:  School Professionals, of New York, NY for substitute teachers

Pursuant to the the terms of commitment letters between HCZ and the Promise Academy Charter Schools I and II (PACS), HCZ, as the institutional partner is committed to provide the PACS certain services – financial management, social, technology, fundraising, public relations, and teaching assistance services – at no cost.     Both PACS have renewed their commitment letters with HCA through 2024.  HCZ’s contributed space and services provided to the PACS for the year ending June 30, 2020 amounted to $2,791,983.  HCZ includes within its Section 457(F) and teachers supplemental bonus plan, certain employees of both charter schools and for the year ending June 30, 2020, provided the PACS a subsidy of $1,888,103 to cover this cost (note:  this is in addition to the grants awarded to the PACS).

To read the IRS Form 990 (2019 for the year ending June 30, 2020), click here.