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Learning Never Stops

Seeing math in a new perspective opens doors for lifelong learning.

2011 Annual Report


In some of America’s neediest schools, a culture of success thrives. Children overcome obstacles created by poverty, language barriers and learning disorders. They experience achievement in math that fosters adaptability, perseverance and – most importantly – a love of learning. Equipped with these skills, the children will embark on a path of success that extends through high school, college and into tomorrow’s competitive knowledge economy. Their lives are changed forever because, for them, learning never stops. MISSION The MIND Research Institute enables K-12 teachers and students from all socioeconomic and cultural backgrounds to succeed in the 21st century knowledge economy. A 501(c)(3) non-profit organization, MIND also conducts neuroscientific, mathematics and education research to improve and apply our understanding of how people learn.

WHO IS JIJI? Created by MIND co-founder Matthew Peterson, Ph.D., in 1997, JiJi is the beloved penguin of the ST Math® software games. Children help JiJi get past obstacles by solving math puzzles – and they associate JiJi with challenge, learning, understanding and the thrill of success. Every time a child demonstrates understanding of a math concept, JiJi crosses the screen, signaling success and leading the student to the next more challenging puzzle.


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EARLY MATH SKILLS

are the strongest predictor of likelihood to attend college, compared to reading, attention, social behavior and mental health. research from UNIVERSITY OF CALIFORNIA, IRVINE and UNIVERSITY OF WISCONSIN, MADISON

SARAH FLORES

“She’s got such a love for math now.” KARENSA FLORES

At age two and a half, Sarah Flores was diagnosed with autism, and doctors said she might never learn to speak. Her parents worked with her at home and saw progress, eventually deciding to put her in mainstream classes at Dream Lake Elementary School in Apopka, Florida. Entering third grade, “She was just really withdrawn and socially inept,” says her mom Karensa. “She didn’t like reading, she didn’t like math. Just nothing.” That all changed when Sarah met JiJi. Dream Lake had just recently received a grant from the MIND Research Institute to implement ST Math. Sarah loved the ST Math games so much that her teacher used them as a reward for completing her reading assignments. “I think that because autistic learners are visual, and there is no sound – it is all visual in JiJi Math – the kids just get in the zone with it,” said Karensa. “When you step in with programs like these, it really boosts kids’ motivation and their desire to learn.”


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CLOSING THE ACHIEVEMENT GAP Santa Ana, Calif. Santa Ana Unified School District

11 20

10 20

09 20

08 20

07 20

06 20

20

05

Math Proficiency

California

Santa Ana Unified elementary schools went from 35% proficiency in math in 2005 to 67% in 2011

ENRIQUE GRANADOS

“Knowing that complete strangers decided to take a chance on me, and gave financial support to help me succeed, just gives me that much more drive.” ENRIQUE GRANADOS

Enrique Granados was one of the first kids to learn math with JiJi in the early 2000’s. Living in Santa Ana, Calif., he was raised by working-class parents who emigrated from Mexico. Enrique attended Madison Elementary where MIND Research Institute’s ST Math+Music®, which includes both a research-based music curriculum and the ST Math instructional software, was being piloted. Remembering those early experiences with JiJi he says, “I felt like I was playing video games. It was very straightforward, you just had to get the penguin across the screen.” Enrique’s academic success didn’t stop when he left Madison and JiJi behind. After attending a magnet middle school, he earned a scholarship to a private East Coast boarding school where he excelled in everything from singing in the choir to learning calculus. “I wish math could always be this visual,” he says, when playing the new generation of ST Math games. Recently, Enrique was accepted to Georgetown University, where his journey of success continues.


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SYVENA CROSS

“It’s so rewarding when you know you’ve made a difference.” SYVENA CROSS

Many of the students at Mark Twain Elementary in Colorado Springs are English Language Learners (ELL), struggle with developmental disabilities, or come from challenging home environments. Fully 77% of their students come from low-income families. Kindergarten teacher Syvena Cross had been supplementing the existing math curriculum to help students better understand fundamental concepts. So she was captivated by ST Math when she and 970 other Colorado Springs District 11 teachers attended a summer training session as part of the district-wide program adoption. “I loved the problem solving approach it used and how it encouraged critical thinking, which these kids need so badly,” says Syvena. The results didn’t disappoint. “The amazing thing for me was when I taught a new concept. The students who had already worked on it in ST Math grasped it so quickly and easily.” “The growth I saw in every single student was awesome.”

POWERFUL TOOL FOR TEACHERS District 11, Colorado Springs, Colo.

970

TEACHERS

were successfully

trained in ST Math after only

72

HOURS


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COMMUNITY LEADERS RAISED $5 MILLION

to support the OC Math Initiative and better the community.

STEVE LITCHFIELD

“What the U.S. needs to create tomorrow’s high-tech workforce is a revolutionary tool like this. And we need to get it in more schools across the country.” STEVE LITCHFIELD

With degrees in engineering and business, Steve Litchfield understands the importance of math and science education. When Steve learned about the MIND Research Institute’s success in raising math scores with its innovative ST Math program, it immediately piqued his interest. “At the end of the day, it’s about the results. Whether the school is performing in the 30th percentile or the 60th percentile for proficiency, the scores need to go up,” says Steve, who is the Executive Vice President and Chief Strategy Officer of Analog Mixed Signal at Microsemi. Steve convinced two local parents to help him fund MIND Research’s ST Math program at his daughter’s public school in San Clemente, Calif. “My daughter experienced some natural struggles with math,” says Steve. “But what I saw with ST Math, is that the tool was designed to teach her to persevere.” And that’s a skill that will help her succeed in any field.


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WE NEED TO CHANGE THE GAME TO WIN MATH PROFICIENCY AVERAGE BY COUNTRY 80

Percent Proficient

70

60

50

40

SIN

GA

PO RE TA IW AN JA KA PA ZA N KH ST AN EN GL AN D RU SS IA LA LIT TVIA HU NE AN T IA UN HER L ITE AN DS D ST AT ES

30

The United States ranks

32nd out of 65 countries in math proficiency.

STATEMENT OF NEED

America’s children have fallen far behind. The U.S. ranks 32nd out of 65 countries in math proficiency. Our Hispanic, African-American and Native American students fare even worse. Yet math is a basic competency for the growing job sectors requiring skills in science, technology, engineering and math. According to Harvard research, our collective failures in math literacy will cost our nation about $1 trillion in gross domestic product annually. Even more importantly, America’s strategic advantage is at stake. Average performance is no longer good enough. We were once global leaders, but today other countries train many of tomorrow’s smartest, most innovative, adaptable and persistent thinkers.

But what if there were an engaging, rigorous new program any teacher could successfully use with any student? What if it combined innovative, interactive games for students with instructive feedback and support for teachers? What if it was based on the science of how our brains are wired to learn? What if kids and teachers felt passionate about the program, and saw its impact in areas far beyond just math? What if that program was already proving results in more than 10,000 classrooms and capable of being expanded virtually overnight to a million more? Now that would be a game changer. And, that would be how millions of students in America can rise to the global challenge.

There is no shortage of grand, unproven ideas for reinventing America’s education system. But the majority are too costly, time-consuming or downright impossible to replicate and reach every American student. And they often alienate a key educational asset: teachers.

The MIND Research Institute is doing this, and your continued support can literally change the game.


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“Thank you for joining our endeavor to bring math success to children across America.” Dear Friends, MIND Research Institute made important ® progress in 2011. We expanded our ST Math instructional software to 1,314 schools and 389,182 students – a 35% increase over 2010. We also generated record revenue of $13.8 million, driven by 17% and 14% increases in charitable donations and sales, respectively.

Among the year’s major success stories was a district-wide ST Math adoption in Colorado Springs District 11, where our Educational Services team trained nearly 970 teachers in just three days. Early positive results from Colorado Springs bring to mind the tremendous long-term success in California’s Santa Ana Unified, where math proficiency has risen from a dismal 35% in 2005 to the statewide average of 67% in 2011. Using ST Math, they have literally closed the achievement gap among their 28,000 elementary school students. Similar stories repeat across the country as we expand. Our 2011 Math Initiative schools experienced twice the increase in proficiency compared to non-ST Math schools. These remarkable results at needy schools nationwide are due to generous corporate, foundation and community supporters. Among those who helped bring math success to at-risk students were Cisco Foundation, Emulex, Microsemi, the Samueli Foundation and the Whitman-Harsh Family Foundation. We are deeply grateful to all of our supporters. In fall 2012, a touch-enabled version of ST Math will roll out to schools. MIND co-founder, Matthew Peterson, Ph.D., re-designed the games to leverage the benefits of touch technology – an intuitive, gesture-based, hands-on learning experience. ST Math

featuring touch, our next generation software, is also aligned to the new Common Core State Standards. Other major initiatives for 2012 include piloting a pre-K ST Math program in 15 schools and focusing on our Math Education Process to ensure teachers follow best practices in implementing the program, in order to elevate math achievement. We’re also on the brink of a significant milestone: half a million students will be using ST Math in the third quarter of 2012. Thank you for joining our endeavor to bring math success to children across America. Sincerely,

Ted Smith Chairman and CEO MIND Research Institute


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Financial Information TOTAL REVENUE Sales Revenue

GROWTH IN CHARITABLE CONTRIBUTIONS

Charitable Donations

By Year

$ 14

Nationally*

To MIND Research

*Source: Giving USA

$ 12

32.2%

$8

16.9%

12.6%

2011 EXPENSES

4.5%

4.0%

11 20

08 20

11 20

10 20

09 20

08 20

20

07

$2

% -8.3 1.3 %

10

-3.7

%

20

$4

09

$6

20

In Millions

$ 10

CHARITABLE CAMPAIGNS

86%

Program

50%

Math Initiatives

11%

Fundraising

27%

Annual Fund

Administration

23%

Program Development

3%

2011 Awards Gala 2011 AWARDEES RECOGNIZED Corporation of the Year:

Microsemi

District of the Year:  Anaheim

City School District

CALLING ALL SUPERHEROES! 400 people attended the annual gala on Nov. 19 at the Disney Grand Californian, raising $446,000 to support MIND Research Institute.

Anaheim, Calif.

Math Champion of the Year: Leisha

Morton

Curriculum Specialist Anaheim City School District

Rising Star of the Year:  Carrie

Buck, Ph.D.

Sewell Elementary School, Principal Las Vegas, Nev.

46,000+ Views of MIND co-founder Matthew Peterson’s 2011 TEDx Talk To view, search for “Matthew Peterson Teaching Without Words” on YouTube, or scan the QR code to the right.


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2011 Impact MIND REACHES

GROWTH IN STUDENTS SERVED

In 2011

By MIND Research Institute’s Programs

2007

1,314 Schools

55,000

2008

100,000

14,091 Teachers 2009

2010

389,182 Students /

150,000

289,000

2011

=1,000 =10,000

389,182

2012

500,000* *Projected

NATIONAL RESULTS AT SCALE * Math Initiatives

11.1

11.6 4.9

-0.6

13.0 6.1

6.7 0.4

Napa Valley

Silicon Valley Replicated over 2 years

13.6

Chicago

New York

11.9 4.2

6.5

Dallas Los Angeles

19.1 2.2

11.6

4.3

Houston

13.7 Orange County Replicated over 3 years

6.6

4.1 -0.2 Orlando

Las Vegas Replicated over 2 years Non-ST Math

ST Math

*Growth in percent of students testing proficient or better

Students served in each state: 50,000+

10,000+

1,000+

<1,000


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Our Generous Donors

*

$250,000 and above

$50,000 and above

Anonymous

Cisco Foundation

Anonymous

Emulex Corporation

The Boeing Company

Microsemi

Croul Family Foundation

Samueli Foundation

The Green Foundation

University of California, Irvine/Institute of Educational Sciences

Helping Us Help Ourselves Foundation

KDK-Harman Foundation

The Whitman-Harsh Family Foundation

$100,000 and above

Mr. William Bloomfield, Jr.

Chevron Corporation

Children & Families Commission of Orange County

The Horowitz Group

Leonetti/O’Connell Foundation

Pacific Life Foundation

Jim and Sheila Peterson

Podlich Family Fund

Abbott Medical Optics

Janet and James “Walkie” Ray

RGK Foundation

The Rose Hills Foundation

SAP America, Inc.

State Farm Insurance Companies

Stern Charitable Trust

$25,000 and above

The Ahmanson Foundation

The Albert and Bettie Sacchi Foundation

Mr. and Mrs. Eric Boden

Bank of America

PricewaterhouseCoopers

Capital Group Companies Charitable Foundation

The Seaver Institute

The Henry L. Guenther Foundation

Ueberroth Family Foundation

Matthew and Roberta Jenkins

University of Phoenix Foundation

Leo M. Shortino Foundation

Wells Fargo Foundation *Donations listed are for $10,000 and above gifts made in calendar year 2011 only.

“Helping children achieve their full potential is a central goal of our family’s foundation, and a personal passion of mine. The MIND Research Institute inspires me with its proven success in increasing math proficiency and academic success of our neediest children. Together, we are building a future for these children and elevating the entire community.” C AT H Y C O L L I N S H E S SION P re s i d e n t , T h e C a ro l a n d J a me s C o l l i n s F o u n da t ion


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Marion Knott Foundation, Inc.

McCormack & Farrow

Mr. and Mrs. McCluney

O.L. Halsell Foundation

Sempra Energy Foundation

S.L. Gimbel Foundation

The Ted and Janice Smith Family Foundation

Symantec Foundation

United Way of Greater Los Angeles

US Bank

Verizon Foundation

WHH Foundation

$10,000 and above

Mr. and Mrs. Erik Brandi

Bruce and Karen Cahill

The Carol and James Collins Foundation

Edwards Lifesciences Corporation

Ella Fitzgerald Charitable Foundation

Fluor Foundation

Glynn Orthodontics

Jim Hagstrom & Cindy O’Neill

Steve and Sally Herrick

The Kenneth T. & Eileen L. Norris Foundation

The Kling Family Foundation

Mr. and Dr. Steven & Amy Litchfield

Mara W. Breech Foundation

Opus Community Foundation

Dr. and Mrs. Matthew Peterson

Marjorie Rawlins

The Roripaugh Family Foundation

Taco Bell Corporation

“Technology is the bridge that will carry students to graduation, college and a lifetime of prosperity. We’re proud to work with Mayor [Antonio] Villaraigosa, MIND Research Institute, and education leaders across Los Angeles to expand the use of what is a transformational mathematics tool that dramatically improves comprehension and performance.” ­M EG WH ITM A N T h e Wh i t ma n - H a rs h Fa m ily Founda t ion

“The Cisco Foundation saw an incredible opportunity to combine MIND Research Institute’s effective math education programs with the work of City Year, which provides mentors and tutors to children in high-need public schools. Together, Cisco, City Year and MIND strive to provide every local

child the chance to experience a quality education – a public

service that is too often denied to our most underserved students.” R I C A R D O B EN AVID EZ C i s c o c o mmu n i t y re la t ions m a nag e r fo r Silic on Va lley


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M I N D R E SE A RC H I N ST I T U T E 2 0 1 1

Statement of Income Revenue and Support Gross School Sales

Total 2011

$

Less Contributions/Sponsorships

11,303,697

Total 2010

$

9,503,716

(3,533,938)

(2,678,283)

7,769,759

6,825,433

5,602,812

4,440,464

411,179

381,226

25,351

343,863

6,039,342

5,165,553

Gain (Loss) on sale of securities

821

(15)

Other Income

527

18,635

1,348

18,620

Total Non-sponsored School Sales Contributions Special Events, Awards Dinner net of donor benefit of $35,000 In Kind Revenue Total Development/Fundraising

Total Other Support Releases from prior year restrictions TOTAL REVENUE AND SUPPORT

$

13,810,449

$

12,009,606

Expenses Program Fundraising Management TOTAL EXPENSES

10,081,045

1,517,529

1,369,201

370,326

$

INCREASE IN NET ASSETS NET ASSETS, BEGINNING NET ASSETS, ENDING

11,809,347

$

13,697,202

354,510

$

11,804,756

113,247

204,850

3,062,743

2,857,893

3,175,990

$

3,062,743

MIND Research Institute’s 2011 financial statements and records are audited annually by Guzman & Gray, Certified Public Accountants, in Long Beach, CA. For complete copy of the 2011 Audited Financial Statements, please email gmaddalon@mindresearch.net or call 714-751-5443, ext.245.


Board of Directors Ted Smith* Chairman and CEO MIND Research Institute; Founder & Ret. Chairman FileNET Design/Concept MC Brand Studios www.mc-brandstudios.com / Photography Michelle Kim | Alex Hill | Brittany Fournier

Mark Bodner, Ph.D.* Vice Chairman, Co-founder, Scientist and President, Research Division MIND Research Institute; Adjunct Professor University of Pittsburgh; Adjunct Professor Johns Hopkins University Andrew R. Coulson* President, Education Division MIND Research Institute Marian Bergeson Former Secretary of Education, Assemblywoman and Senator State of California John P. Bishop Vice President Sikorsky Aircraft Kim Burdick* President, Private Banking Opus Bank Bruce Cahill Founder, CEO and Chairman Centaur Corporation Helen Clemmons, Ed.D.* Former Principal of 95th St. Elementary School & Mentor Administrator L.A. City Board of Education Kris Elftmann President and CEO Noelle Marketing Group

Passed away March 2012 *Executive Committee Member †

John R. Evans Senior VP and Regional Manager Wells Fargo Bank Lawrence Higby Vice Chairman and Advisor (Retired) Apria Healthcare, Inc. David Horowitz President Horowitz Management, Inc. Roberta Jenkins Matthew and Roberta Jenkins Family Foundation Donald P. Kennedy† Chairman Emeritus The First American Corporation Mike Lefkowitz* President The Semel Group Jim Mazzo President Abbott Medical Optics Corporation Jim McCluney* CEO Emulex Corporation Jiri Patera, Ph.D. Professor University of Montreal Daryl Pelc Vice President – Engineering & Technology Phantom Works Boeing James J. Peterson* President and CEO Microsemi Corporation

Matthew Peterson, Ph.D.* Co-founder and Chief Technical Officer MIND Research Institute John Phelan President, American Funds Services Capital Group Company William Frederick Podlich Consulting Managing Director and ret. CEO Pacific Investment Management Company James “Walkie” Ray* Partner Sanderson J. Ray Development

In Memoriam Gordon Shaw, Ph.D. Co-founder, Chairman Emeritus and Institute Scientist MIND Research Institute; Professor Emeritus, Physics University of California, Irvine


MIND Research Institute 3631 S. Harbor Boulevard, Suite 200 Santa Ana, California 92704 www.mindresearch.net (888) 751-5443

www.facebook.com/FriendsofMINDResearchInstitute @MIND_Research MIND Research Institute

Learning Never Stops -- 2011 MIND Research Institute Annual Report