BLOCS Impact Report 2020-2021

IMPACT REPORT 2020-2021

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TABLE OF CONTENTS 4 5 6 8 10 12 14 16 18 20 21 22

FROM THE CHAIRMAN & CEO OUR MISSION OUR HISTORY PHILADELPHIA’S EDUCATIONAL LANDSCAPE FINANCIAL INFORMATION | COVID-19 EMERGENCY AID FUND SCHOLARSHIPS EITC SUPPORT FOR SCHOOLS BUILT BY BLOCS DONOR IMPACT ANNUAL GALA WAYS TO GIVE BOARD OF DIRECTORS AND STAFF

Check out our new BLOCS Impact Video to see how your donation helps transform Philadelphia students’ lives.

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Matt Topley

Board Chairman

Dear BLOCS Family, On behalf of the BLOCS Staff and Board of Directors, we are honored to present our 2021 Impact Report, showcasing the contributions our donors have made to improving the lives of countless young students and their families all throughout the Philadelphia area.

Due to rapid technological societal change, at no time in history has the progress gap been wider between learners and non-learners. As workforce academic needs grow exponentially, a higher percentage of American school systems are not equipping students with the basic skills and knowledge required to perform at the collegiate level or to market themselves as ‘workforce-ready’ beyond high school graduation. Philadelphia has the highest poverty rate in the nation, while Catholic schools have a 14,000-person waiting list of children who cannot afford tuition.

An investment in BLOCS provides our donors with an opportunity to create boundless educational opportunities for our future leaders, while supporting a transformational community organization. BLOCS students achieve a 99% graduation rate versus 66% in the Philadelphia School District.

BLOCS-supported schools recognize that discipline and education equate to an upward mobility that often leads to more fulfilled lives and successful futures. It is an exceptional honor to represent an organization that has been creating generational change through education for more than 40 years.

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Dave Rowan

Chief Executive Officer

As leaders in our neighborhoods, parishes and business community, we are called to steward a society toward greater growth and opportunity than the one we inherited from our parents. It is our patriotic duty to increase our community’s educational standards to remain competitive both nationally and globally. It is our religious duty to measure our legacy by the scope of our service to others.

It is our professional duty to create a society for future generations that is prepared for the economic changes to come.

BLOCS is on pace to raise over $50 million dollars in scholarships this year. On behalf of our students, we sincerely thank our donors for a remarkable year – you are changing lives.

We have experienced enormous successes due to the organization’s dynamic leadership and the effective collaboration with the Philadelphia business community, but there is still work to be done.

As we look ahead to the future, we implore you to imagine the type of world you wish to bestow upon the next generation. We believe that through educational investment in partnership with BLOCS, together we can create a transformational impact on Philadelphia.

We look forward to continuing our great work alongside you, our valued partners.

Thank you and God’s Blessings,

“Building a Brighter Future,

OUR MISSION

One Child at a Time”

For over forty years, Business Leadership Organized for Catholic Schools (BLOCS), has been committed to providing eligible pre-K, grade school, high school and special education students access to high-quality, values-based Catholic education, as an alternative to their area public school.

Since 2010, BLOCS has awarded more than 100,000 scholarships in tuition aid to families and students. We award scholarships to as many children – of any religion – as possible across the greater Philadelphia area.

Our work will continue until every family who desires a values-based Catholic education can afford one.

We believe every school-aged child in the Philadelphia region – regardless of race, religion, or financial circumstance, deserves a future filled with promise & hope.

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OUR HISTORY THE

BEGINNING 1985 William Bennett, U.S. Secretary of Education

(1985-1988) is the featured speaker at a Donor Recognition Luncheon hosted by BLOCS at the Union League. In his remarks, Bennett cites BLOCS, whose fundraising initiatives earned it a Presidential Award for private sector initiatives, as “probably the most successful private sector undertaking in education in the country.”

1980 BLOCS announces start of Financial Campaign to aid Parochial

schools. At a news conference at the Union League, Philadelphia, Msgr. Francis B. Schulte, Superintendent of Schools describes the role of the new committee that will seek support from the business community for Archdiocesan schools.

The business leaders spearheading the effort include from left: Richard C. Bond, Bernard G. Segal, Joseph A. Gallagher, Peter F. McCormick, and G. Morris Dorrance, Jr. Not pictured: Morris Duane and William Fishman.

Photo credit: The Office of Catholic Education Archives, Robert S. Halvey Collection

G. Fred DiBona, Jr. Esq.

1990 One of the original business leaders

in BLOCS’ formative years, former Independence Blue Cross President & Chief Executive Officer Fred DiBona, Jr. partnered with Fishman to encourage the Philadelphia business community to support Catholic education. DiBona served as BLOCS Chairman from 1990 – 1998.

In 1980, representatives from the Philadelphia business community predicted that tuition funding alone cannot sustain the Philadelphia Archdiocesan schools, while citing that the system saves local businesses $50 to $75 million per year in taxes. Noting that Archdiocesan schools constituted at the time the eighth largest in the country, and that these students went on to fuel the labor force in Philadelphia, the business leaders noted pragmatic motivations for launching this fundraising effort.

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William S. Fishman

1982 The Archdiocese of

Philadelphia selects William Fishman, former Chief Executive Officer of ARA Services, (now Aramark) to Chair the newly formulated fundraising group Business Leadership Organized for Catholic Schools (BLOCS). Fishman’s motivations to involve himself in the effort were borne from a desire to help ensure a qualified labor pool for Philadelphia firms.

“The product the parochial schools graduate and make available to us as employers is better than the public schools. Their work habits are better.

Their attendance is better.

They are more reliable, desirable employees.”

– William S. Fishman

“Catholic schools save tax payers hundreds of millions of dollars annually. The concept of BLOCS is that Catholic schools are not the responsibility of the Catholic community alone, but deserve support of the whole community, since the whole community benefits.”

THE

NEW ERA

– William S. Fishman

In 2013, Amendments to the Educational Improvement Tax Michael G. O’Neill

2010 BLOCS officially H.F. (Gerry) Lenfest, Esq.

2005 The prominent J. William Mills, III

2002 Mills,

lawyer, media executive, philanthropist and Founder of The Lenfest Group, served as BLOCS Chairman 2005 – 2007.

organizes as a 501(c)(3) nonprofit, operating completely independently from the Archdiocese of Philadelphia.

Michael G. O’Neill, then-Board Chairman, oversees the transition, serving in this capacity until 2013.

Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) statutes adopted in Pennsylvania’s House Bill 91 significantly improve the operation of both tax credit programs. A watershed moment for Scholarship Organizations in PA, the bill now allows for the formation of Special Purpose Entities (SPE’s) which enable individual taxpayers

former President of PNC Bank’s Philadelphia/S. New Jersey region, led BLOCS from 2002-2005.

as well as businesses to receive tax credits on their scholarship gifts.

David F. Girard-diCarlo, Esq.

1999 Girard-diCarlo, former U.S. Ambassador to the Republic of Austria and Chairman of Blank Rome, served as BLOCS Chairman from 1999 – 2001.

Donald Saleski

2013 Saleski led the

expansion of BLOCS, serving as Chairman from 2013-17.

Currently, Saleski holds leadership positions with Kemberton and Acentus. He played hockey in the National Hockey League, winning two Stanley Cup Championships with the Philadelphia Flyers.

Matthew Topley

2021 The BLOCS

Board has grown to 42 total members comprised of 13 Executive Committee and 29 Board members. The group represents a cross-section of Philadelphia business professionals from a diverse set of industries.

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PHILADELPHIA’S EDUCATIONAL LANDSCAPE Education is the great equalizer.

Investing in education will play a significant role in reducing socio-economic disparities while creating opportunities for children facing adversity.

37%

Philadelphia children living below the federal poverty level

Phildelphia has the highest poverty rate among the largest U.S. cities* (nearly 380,000 residents under the poverty line)

PHILADELPHIA SCHOOLS

63%

Reading proficiency

Math proficiency

“We need the trades. We need IT and healthcare professionals. Mercy Career & Technical High School educates students to develop the skills necessary to become leaders in their industries. That’s the exciting part about our school. We give confidence to our students and then they go out and set the world on fire.”

Sister Rosemary Herron, RSM, President Mercy Career & Technical High School

* Source: U.S. Census Bureau, 2016 American Community Survey

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42%

21%

of high school students will not graduate

“Every student at Cristo Rey attends school four days and goes to work one day a week. We have established very strong relationships with more than 90 companies within Philadelphia through the Work Study program. Our partners offer really good jobs where our students are surrounded by mentors who inspire them, build their confidence and teach them applicable, transferrable skills which develop them into highly marketable candidates for college and for the workforce of the future.”

John McConnell, President and Founder Cristo Rey Philadelphia High School

“Building a Brighter Future, One Child at a Time”

The cultural and social capital gained through a high-quality education is the surest way for young people to escape the cycle of poverty.

99%

Graduation rate for Catholic schools vs.

66%

Graduation rate for public schools*

Urban children are

2.5x

more likely to finish college if they attend Catholic school**

More than 90

%

of Archdiocese of Philadelphia high school graduates enroll in college***

“Manufacturing is the backbone of our country and it is imperative that we have a skilled labor force to compete globally. PTR partnered with Father Judge to start their Welding Program from the beginning and it has been a tremendous success. It is producing talented, energetic, and focused young people who will be the future of manufacturing across our region. The program is a testament to the values of Catholic education.“ Michael Savage, President/CEO PTR Baler and Compactor Company

* Philadelphia City School District Report 2021, PublicSchoolReview.com ** Source: Univ. Chicago study. *** Based on data provided by the Office of Catholic Education, Class of 2021 graduates.

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FINANCIAL INFORMATION In what will go down in history as a truly unprecedented year in 2020, BLOCS was able to mobilize, reduce red tape in its fundraising practices, and exceed year-end fundraising goals, despite many significant hurdles.

BLOCS’ FY21 total revenue caps off the largest 5-year growth trend in the company’s history, having raised an impressive $224,300,000 since 2016.

Operating Efficiency More than 96¢ of every dollar donated to BLOCS is distributed directly in the form of need-based scholarships to partner schools for local students and families.

$0.96 of every $1

TAX CREDIT REVENUE

NUMBER OF DONORS

$70M FY17

$60M 49.0

$50M

51.3

33.6

$30M $20M

19.0

10

FY19

817

FY20

811 966

FY21

$10M $0

506

FY18

42.0

$40M

487

FY17

FY18

FY19

FY20

FY21

0

200

400

600

800

1000

COVID-19 EMERGENCY AID FUND BLOCS awarded over $2.5M in tuition assistance to more than 3,100 students whose families suffered financial hardships due to the COVID-19 pandemic.

In collaboration with Archdiocese partners, BLOCS has traditionally managed an Emergency Scholarship Fund (ESF) designed to provide students and their families need-based scholarships to combat setbacks sustained as a result of job loss, chronic illness or fatality. The Board of Directors made immediate plans to re-assess the ESF scholarship awarding process and remove any bureaucratic red tape which would prohibit BLOCS from quickly getting funds into the hands of families who needed them.

Program Spending vs. Operating Costs

3.6% BLOCS

23%

National Average

Source: “Guidelines for Fundraising Including Expense & Profit Ratio” https://bizfluent.com/way-5266544-guidelines-including-expense-profit-ratio.html, 2017.

GUIDESTAR PLATINUM SEAL OF TRANSPARENCY BLOCS has earned the 2021 Platinum Seal of Transparency from GuideStar. The Platinum Seal, the highest rating offered, indicates that BLOCS shares clear and important information with the public about our goals, strategies, capabilities, achievements and progress indicators that highlight the difference we make in the greater Philadelphia area.

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16,000+ SCHOLARSHIPS AWARDED BLOCS, through the help of its partner schools, distributes more than 16,000 need-based scholarships each year to students and families in the Philadelphia five-county region.

As the largest scholarship organization in the state, BLOCS has established itself as the leader in the space, working harder each year to innovate, generate new strategic relationships and develop new sources of fundraising revenue to close the supply gap and positively impact more students per capita than ever before.

SCHOOL CATEGORY Emergency Scholarship Fund/Other

5%

Archdiocese Pre-K, Grade, High & Special Education Schools

17.7%

34.0%

18.2%

Private Catholic Schools

Independence Mission Schools (IMS)

Private Schools

25.1%

COUNTY DISTRIBUTION 2% 5%

Other

Bucks Chester

6% 15%

Philadelphia

53%

19%

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Montgomery

Delaware

PHILADELPHIA AREA 5-COUNTY CATHOLIC SCHOOLS SUPPORTED BY BLOCS* Academy of Notre Dame de Namur Archbishop John Carroll Archbishop Ryan Archbishop Wood Assumption BVM Bishop Shanahan Blessed Trinity Blessed Virgin Mary Cardinal John Foley Cardinal O’Hara Christ the King Conshohocken Catholic Conwell-Egan Corpus Christi Cristo Rey Philadelphia Devon Prep Drexel Neumann Academy Father Judge Gesu Good Shepherd Gwynedd Mercy Holy Cross Collegeville Holy Cross Philadelphia Holy Cross Springfield Holy Family Aston Holy Family Levittown Holy Family Phoenixville Holy Ghost Prep Holy Innocents Holy Redeemer Holy Rosary Holy Trinity Immaculate Heart of Mary La Salle Academy LaSalle College High School Lansdale Catholic Liguori Academy Little Flower Malvern Prep

Mary, Mother the Redeemer Mater Dei Maternity BVM Mercy Career and Technical Merion-Mercy Monsignor Bonner and Archbishop Prendergast Mother of Devine Grace Mother of Providence Mother Teresa Regional Mount Saint Joseph Nativity of Our Lord Norwood-Fontbonne Academy Notre Dame de Lourdes Our Lady of Angels Our Lady of Calvary Our Lady of Confidence Our Lady of Good Counsel Our Lady of Grace Our Lady of Hope Our Lady of Mercy Our Lady of Mount Carmel Our Lady of Port Richmond Our Lady of the Assumption Our Mother of Consolation Our Mother of Sorrows/ St. Ignatius of Loyola Pope John Paul II Presentation BVM Queen of Angels Resurrection Regional Roman Catholic Sacred Heart Academy Sacred Heart Havertown SS Coleman & John Neumann SS Cyril & Philomena SS John Neumann and Maria Goretti SS Peter and Paul SS Phillip and James

SS Simon and Jude St. Agnes St. Albert the Great St. Aloysius St. Anastasia St. Andrew Drexel Hill St. Andrew Newtown St. Anselm St. Anthony of Padua St. Athanasius St. Barnabas St. Bernadette St. Catherine of Siena St. Cecilia St. Charles Borromeo St. Christopher St. Cornelius St. Dominic St. Dorothy St. Elizabeth St. Ephrem St. Eugene St. Frances Cabrini St. Francis de Sales St. Francis of Assisi Norristown St. Francis of Assisi Springfield St. Francis Xavier St. Genevieve St. George St. Helena St. Helena Incarnation St. Hilary of Poitiers St. Hubert St. Ignatius Antioch St. Isidore St. James St. Jerome St. Joseph Downingtown St. Joseph’s Prep St. Joseph St. Roberts

St. Jude St. Katharine Drexel St. Katharine of Siena Wayne St. Katherine Day St. Katherine of Siena Philadelphia St. Laurence St. Laurentius St. Lucy St. Luke St. Malachy St. Margaret St. Mark St. Martha St. Martin de Porres St. Martin of Tours St. Mary Interparochial St. Mary Magdalen St. Mary Schwenksville St. Matthew St. Max Kolbe St. Michael the Archangel St. Monica St. Norbert St. Patrick St. Peter the Apostle St. Philip Neri St. Pio St. Pius X St. Raymond of Penafort St. Rose of Lima St. Teresa of Calcutta St. Thomas the Apostle The DePaul Catholic The Regina Academies Villa Joseph Marie Villa Maria Visitation BVM Norristown Visitation BVM Philadelphia West Catholic

* Not a comprehensive list of all BLOCS partner schools across PA.

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EITC SUPPORT FOR SCHOOLS FY21 represented a new horizon of partnership between BLOCS and our school partners.

Beginning with the design and rollout of a BLOCS Tax Credit program overview video as well as an informational brochure, BLOCS then cascaded the custom program offering to all our partner grade and high schools. The custom marketing kit made available to the school’s leadership and development teams provided the opportunity to personalize one or both pieces with video and still photography highlighting their school and campus, while crafting a message unique to their alumni and friends.

Working together with BLOCS, last year delivered over $2M dollars to the families and students at Father Judge. When you think about how many lives that has impacted, how many opportunities those scholarships have provided for young men here, you realize the significance of having BLOCS as a partner in helping these students achieve a Father Judge diploma, as well as supporting them along their pathways to success in life.

Brian Patrick King ‘97 President Father Judge High School

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BLOCS has been a valued partner and supporter of our 14 Independence Mission Schools since its inception in 2013. Today, with 4,000 students across our schools, we continue in our mission to serve low-income communities and provide students with a rigorous academic and Catholic education. The financial support that BLOCS has made available has allowed tens of thousands of children to receive a life-altering and faith-based educational experience.

Our mission is challenging, but with the assistance of BLOCS we continue to be able to improve the lives of students and make Philadelphia a better and more equitable place to live.

Bruce Robinson CEO and President Independence Mission Schools (IMS)

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BUILT BY BLOCS In concert with #GivingTuesday 2020, BLOCS officially launched the #BuiltByBLOCS campaign to showcase our incredible scholarship recipients, both current and former – and celebrate those who have overcome hardships while remaining committed to their Catholic education. Through this campaign, we showcase real-life stories of hundreds of families who – because of BLOCS donors – can continue to afford Catholic school.

BLOCS showcased stories from grade and high schools throughout the Philadelphia area, which highlighted some extraordinary students, faculty and administrators who have exhibited the drive, commitment to education and a spirit of gratitude which enable them to achieve their goals.

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To view the complete portfolio of #BuiltByBLOCS stories visit BLOCS.org/built-by-blocs @BLOCSPhilly

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DONOR IMPACT None of the work we do would be possible without the support of our donors – both individual and corporate – who selflessly contribute, both through major gifts, annual gifts and tax credit donations to create the more than 16,000 scholarship opportunities for students and families all across the Philadelphia region and beyond.

It is because of our donors that together, we are truly Building a Brighter Future One Child at a Time.

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THANK YOU FOR YOUR SUPPORT! “Earlier this year, we sold our company, and we were talking about ways we can give back – how would we give to families that were most in need. We decided the most impactful way to support them was to invest in education.

Through BLOCS, we were able to donate more than we originally thought we could. While the impact has been felt by so many students, it has blessed us more profoundly than we could have imagined. Catholic education is about opportunity – building a foundation of faith, family, and community. You want to donate to a charity where every dollar has an impact, and that impact will be generational.”

Will & Colleen Mullin BLOCS Donors

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ANNUAL

Gala The onset of the global pandemic precluded us from hosting our Gala in May 2020 or ‘21, but we announce with excitement the return of the event – the “Aspire to Dream” Annual Gala in May 2022 in South Philadelphia hosted at Lincoln Financial Field.

We are grateful to our corporate partners for their support and we look forward to seeing you at our 2022 signature fundraising event in May! 20

WAYS TO GIVE Corporations and individuals can help us fulfill our mission to provide families seeking private or faith-based education access to these schools as a safe alternative to public schools in a variety of ways.

While there are many giving options to choose from today; your age, income and overall legacy goals may dictate which gift options are best. As always, consult a tax advisor to determine which of the following or combination of the following best fit you and your family’s individual needs.

Tax Credit Program Through the establishment of Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs, donors can receive up to a 90% tax credit against their Pennsylvania state tax liability by making their gift through BLOCS. An individual or company who wishes to take advantage of this tax credit program may become a member of a BLOCS Scholarship LLC (“LLC”). These special purpose entities (or SPE’s) are the only financial vehicle available for individuals (or companies who do not have direct tax credit approval) to be able to realize tax credits in return for scholarship donations.

To join, an individual or company makes a 2-year commitment, (minimum of $5,000 per year), to fund the LLC. The LLC will then receive tax credits equal to 90% of the donation amount.

Outright Cash Giving You have the opportunity to see your generosity in action and will receive a federal income tax charitable deduction.

Gifts of Appreciated Securities & Mutual Funds Making a gift of securities or mutual funds that have increased in value and have been held for more than one year offers you the chance to support BLOCS’ mission. A donation of appreciated securities or mutual funds can reduce or even eliminate federal capital gains taxes on the transfer. In addition, you may be entitled to a federal income tax charitable deduction based on the fair market value of the securities at the time of the transfer.

Planned Giving Bequests of Wills and Estates Beneficiary Designations Charitable Gift Annuities Charitable Remainder Trusts Charitable Lead Trusts

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BOARD EXECUTIVE COMMITTEE Matt Topley Lansing Street Advisors Board Chairman Matt McFillin KPMG Philadelphia Board Vice-Chairman Charlie Bernier ECBM Gary DeVito Zarwin, Baum, DeVito, Kaplan, Schaer, Toddy, P.C. Brian Gallagher GMS Surgent Brian McElwee Valley Forge Investment Corporation Don Saleski Acentus/Kemberton

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Michael Savage PTR Baler & Compactor

Maureen Blom RTD Financial Advisors, Inc.

Tom Shoemaker TD Bank

Amara Briggs Truist

Bill Streich Holt Logistics Corporation

Jerry Buckley CFGI

Dorae Sudell United Healthcare

Brian Cassidy Deloitte & Touche LLP

Fran Van Kirk PwC, Heidrick & Struggles, Retired

Joseph Chott Brown Brothers Harriman

Michael Young Young Capital

BOARD OF DIRECTORS

Nick Ciocca Stephano Slack, LLC Marty Connor Toll Brothers

Dan Astolfi Citizens Bank

Jeff Coron Glenmede Investment Management LP

Paul Becker DDP Roofing

Natalia Dominguez Buckley City of Philadelphia

STAFF Sean Fahey Troutman Pepper Hamilton Sanders LLP James Fitzgerald Goldman, Sachs & Co. Most Rev. Michael J. Fitzgerald Auxiliary Bishop, Archdiocese of Philadelphia Sean Flynn Flynn O’Hara Uniforms Brian Hannan PwC Ed Hanway Faith in the Future Bill Larkin Lopez, Teodosio & Larkin Paul Leary Cozen O’Connor Raman Mahadevan Ernst & Young

John McDonald PECO Energy John McGonigal, Jr. Marcum J. Justin O’Malley J.P. Morgan Securities Michael O’Mara Stradley Ronon Archbishop Nelson J. Pérez Archdiocese of Philadelphia Mike Prendergast Capital One, Commercial Banking PA/NJ/DE Jack Reick AON Greg Skalicky Eversana

BLOCS STAFF Dave Rowan Chief Executive Officer Ted Aicher Chief Financial Officer Kathleen Harvey Controller Jim Downey Development Manager Jeff Gibson Development Manager Katie Rose Thornton Director, Marketing & Communications Laura Scheuerle Administrative Assistant

Brian Vesey PNC Bank

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THANK YOU FOR YOUR SUPPORT OF QUALITY EDUCATION

BUSINESS LEADERSHIP ORGANIZED FOR CATHOLIC SCHOOLS 555 Croton Road, Suite 310 | King of Prussia, PA 19406 | 484-704-2300

BLOCS.ORG | @BLOCSPhilly