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ANNUAL REPORT CRISTO REY NETWORK

| 2016


MISSION The Cristo Rey Network® empowers thousands of students from underserved, low-income communities to develop their minds and hearts to become lifelong contributors to society. By providing students an extraordinary college preparatory education and a unique four-year, integrated corporate work study experience, we seek to transform urban America one student at a time.

ABOUT While Cristo Rey® schools are locally owned and operated, the Cristo Rey Network national office protects the integrity of the movement and advances school excellence and innovation by • Surfacing, scaling, and standardizing effective practices across all schools through professional development offerings, group convenings, and school-specific consultation in academics, college enrollment and completion, Corporate Work Study Program, performance measurement, and governance; • Facilitating new school growth through development and implementation of a national growth plan and support for new schools; • Supporting mission accountability—as defined by the Mission Effectiveness Standards—through school evaluations and data analysis; and • Stewarding national branding, visibility, and fundraising.


Letter from Leadership

thinking that spawned the movement. They explain—indeed compel—our continuous focus on assessment, improvement, and

Dear Friends:

innovation in all domains of our work, an approach that this Annual Report succinctly conveys and our newly revised Network website now shares in inviting detail.

The Cristo Rey movement began in 1996 when Cristo Rey Jesuit High School opened its doors to 70 students in southwest Chicago. The school’s founders prayed that their bold idea of a rigorous college preparatory school supported in substantial part with student-earned income would allow them to provide a high quality education and a promising to-and-through college trajectory to children from economically disadvantaged families in one Catholic parish. They readily concede that they did not at the start foresee the powerful formational impact and opportunity that the combination of academics and professional work experience would entail for Cristo Rey students. Nor did they imagine that they were creating a model that could and should be replicated across the country. As the Cristo Rey movement begins its third decade, the 32 schools that today comprise the Cristo Rey Network collectively welcome 10,933 students to classrooms and corporate workplaces in 21 states and the District of Columbia. As the Network’s presence and impact has grown, so has our understanding of the ingeniousness of the Cristo Rey model in building financial sustainability on the one hand and student character, competence, confidence, and aspiration on the other. The 7,000 Cristo Rey graduates who have either earned their undergraduate degrees or are currently enrolled in colleges and universities across the country are the best evidence of the power of the model—and the best ambassadors for our Network. Our students and graduates remind us daily of the high human stakes and profound human consequences of this worthy work. They motivate all of us to continue the innovation and the audacious

No one suggested that “transforming urban America one student at a time” would be easy or the province of a few talented individuals. But the founders could not have envisioned the strength of the talent that the Cristo Rey movement would galvanize across the country. An extraordinary team of school leaders, teachers, and administrators; supporting Religious Sponsors and Endorsers; Corporate and University Partners; national staff members; and school and Network boards work locally and nationally to ensure the excellence of each of our schools and all of our schools. That work is fueled by the many supporters who demonstrate belief in the Network’s power and progress through their generous investment in our work. We are deeply grateful to all of you for your commitment to our mission. Sincerely in Cristo Rey,

W. Nicholas Howley Jane E. Genster Board Chair President and CEO Chairman and CEO Cristo Rey Network TransDigm Group Incorporated


Reflections Dear Friends: This year’s Annual Report reaches you simultaneously with the completion of the Holy Year of Mercy, proclaimed by Pope Francis. When the Year was first announced it seemed like a pretty innocuous topic. As Pope Francis understood and we have learned, however, “mercy” itself is a very powerful concept. Our liturgy teaches us that God shows might through mercy. Mercy evidences strength and has its own logic. As James (2:13) states very succinctly, “mercy triumphs over judgment.” Where mercy is involved, all the rules change. In the early days of the Cristo Rey model, someone described “a Cristo Rey moment” as “flying in the face of logic.” A Cristo Rey school was by design, for example, only open to those who could not afford it. So those of us familiar with Cristo Rey are used to working with a different logic. In April 2016, at the Cristo Rey Network Annual Meeting in Denver, Jose Alberto Mesa, S.J., assistant to the Jesuit General in Rome for secondary and pre-secondary education worldwide, lead a dynamic workshop for 200 school leaders and Religious Sponsors and Endorsers. He challenged us to be open to change and to recognize opportunities to extend mercy, compassion, and support to our students as early as the admissions process and to sustain this promise through four years of high school and beyond graduation as alumni matriculate to and through college. The Pope himself challenged those who work in education to reflect on how we can do the different works of mercy through that apostolate. In doing so the

4 | Follow the Voices of Cristo Rey blog at www.cristoreynetwork.org.

Pope invited the whole Cristo Rey family to rethink how we educate, to ask ourselves if we can educate more as Jesus did. He called upon the entire Cristo Rey community to identify areas in our lives and in our institutions where mercy can be more present and where we can all exercise greater compassion. As Pope Francis said in declaring this Holy Year, “The mercy of God is able to transform hearts,” an ideal to consider as we all seek to “transform urban America one student at a time.” Sincerely in Cristo Rey,

John P. Foley, S.J. Chair Emeritus and Chief Mission Officer


Student Demographics

At A Glance

$35,000

Average family income for a family of four

National Profile

School of Origin

10,933 students nationwide

11,508 graduates

since the first school opened 20 years ago

32 schools located in

21 states and DC

3,000 Corporate Partners

45 University Partners

38 Religious Sponsors and Endorsers

$55m

46%

Faculty and Staff

Earned by Students

Students Non-Catholic

670

16:1

97%

Board Members

Student to Teacher Ratio

59% Hispanic

31% Charter 33% Black

2015-2016 School Year

1,745

38% Public

Race/ Ethnicity

Student Attendance Rate

27% Catholic

4% Other Private

5% Other

3% White

www.cristoreynetwork.org/ataglance | 5


Mission Support and Accountability Cristo Rey Network protects the integrity of the Cristo Rey model as defined by the Mission Effectiveness Standards, which articulate the common identity of member schools.

MISSION EFFECTIVENESS STANDARDS A School:

1. Is explicitly Catholic in mission and enjoys Church approval. 2. Serves only economically disadvantaged students. The school is 2. open to students of various faiths and cultures. 3. Is family centered and plays an active role in the local community. 4. Shall prepare all of its students to enter and graduate from college. 5. Requires participation by all students in the work-study program. 2. All students must be 14 years by September 1st. 6. Integrates the learning present in its work program, classroom, 2. and extracurricular experiences for the fullest benefit of its student 2. workers. 7. Has an effective administrative and board structure as well as 2. complies with all applicable state and federal laws. 8. Is financially sound and at full enrollment the school is primarily 2. dependent on revenue from the work-study program to meet 2. operating expenses. In addition, the school maintains a 2. comprehensive advancement program to ensure financial stability. 9. Supports its graduates’ efforts to obtain a college degree. 10. Is an active participant in the collaboration, support, and 2. development of the Cristo Rey Network.

6 | www.cristoreynetwork.org/about

The following areas of focus capture the essential elements critical to ensuring all schools fulfill the Mission Effectiveness Standards: • Foster internal expertise at the national office, cultivate and • retain talent, and improve internal processes to maximize • efficient and targeted support for our schools • Hold schools accountable to shared mission and performance • against each standard through the Annual Data Report and • Mission Effectiveness Reviews • • • •

Support acquisition, development, and retention of talent at all schools primarily by providing high quality and consistent professional development opportunities and supporting hiring of new school leadership

• • • • •

Cultivate collaboration among schools for continuous improvement by providing opportunities for online collaboration, encouraging informal peer-to-peer collaboration and joint problem solving between schools, and identifying, surfacing and scaling best practices

• • • • • •

Provide support for efficient and effective school operations by offering consulting support as needed to improve school performance; expanding use of school-level data; securing school pass through grants for targeted improvements in our schools; and integrating cross-cutting technology strategies across all school operations


RELIGIOUS SPONSORS AND ENDORSERS

Thirty-eight sponsoring and endorsing groups ensure that our schools are Catholic in identity and mission, true to the religious charism of the order. Basilian Fathers Brothers of the Christian Schools District of Eastern North America and San Francisco District Clerics of St. Viator Dominican Sisters of Mission San Jose Franciscan Missionaries of Our Lady The Holy Cross Province of the Congregation of the Passion Marist Brothers of the Schools (USA Province) Oblates of St. Francis de Sales Salesians of Don Bosco School Sisters of Notre Dame Sinsinawa Dominican Sisters Sisters of Charity of Cincinnati Sisters of Charity of Leavenworth Sisters of Charity of St. Elizabeth Sisters of the Humility of Mary Sisters of Mercy of the Americas (West-Midwest) Sisters of Mercy Mid-Atlantic Community Sisters of Notre Dame de Namur (US East-West Province) Sisters of Providence of St. Mary-of-the-Woods Sisters of St. Joseph of Peace Sisters, Servants of the Immaculate Heart of Mary (Immaculata, PA) Society of the Holy Child (American Province) Society of Jesus California Province, Central and Southern Province, Maryland Province, Midwest Province, and New England-New York Province Society of Mary Roman Catholic Archdioceses Boston, Indianapolis, Los Angeles, Newark, Portland, and Washington, DC Roman Catholic Dioceses Columbus and Sacramento

www.cristoreynetwork.org/religious | 7


Academic Excellence Since taking the helm as our Chief Academic Officer in July 2015, Dr. George Fornero familiarized himself with our schools’ practices and results, listened to their expressed needs, and assessed the strength of their academic programs against best demonstrated practices and relevant research. Dr. Fornero’s evaluation of our schools has led him to refine and enhance the series of existing interrelated initiatives offered by our Teaching and Learning Team to advance the success of every student in both high school and college. Those initiatives focus on teacher effectiveness, principal leadership, and ongoing refinement of the rigorous Network curriculum and aligned assessments.

Through targeted gatherings over the next two years for joint problem solving and action planning, principals will study each focus area in our schools and work toward identifying a peerrecommended network-wide approach.

The team is supplementing current programming with an initiative new in concept and content. To better leverage the extraordinary talent and expertise in our schools in service of all of our schools, the Teaching and Learning Team plans to launch Best Practice Working Groups with school principals that focus on three critical domains: 1. Ninth Grade Retention 2. Creating and Sustaining an Instructional Data Culture 3. Advanced Placement (AP) and Dual Enrollment Opportunities

94%

8 | www.cristoreynetwork.org/innovativemodel

To further bolster this work, the team undertakes site visits to every school to deepen our understanding of how each institution approaches each focus area, to ensure effective implementation of the curriculum, and to provide personalized academic support responsive to school teams.

3.0

Schools offer Advanced Placement, Dual Enrollment, and honors courses

Average ACT growth for the Class of 2016

3

14

Schools named “America’s Most Challenging High Schools” by The Washington Post

Schools offer a 1:1 technology program


Work Study Progra Corporate WOrk Program In combination with classroom learning, the four years of professional work experience tackled by every Cristo Rey student strengthens their cognitive and non-cognitive skill development and prepares them for the demands of college and careers in the knowledge-based economy. Ensuring students’ readiness for the 21st century workplace offered by our 3,000 Corporate Partners is a major focus of our work. Under the leadership of our Senior Vice President of Corporate Work Study Dan Walsh, the curriculum design team continues to develop a workplace training curriculum that closely parallels our academic curriculum. Seven Cristo Rey schools piloted an introductory summer curriculum with aligned assessment tools for our ninth graders in July 2015, and their experience and input led to a refined summer curriculum that they field tested again this past summer with our Class of 2020.   Through a generous two-year grant, we have increased our capacity to take this project to the next level and facilitate the integration of classroom learning with workplace learning.

Since the Corporate Work Study Program is one of a kind, no generic software effectively supports the wide range of operations critical to efficient program management. Our Chief Technology Officer Mark Bazin has responded to this challenge and led the development of a best-in-class customized solution called Corporate Work Studyforce. Built on the Salesforce platform—the most prominent customer relationship management software— Corporate Work Studyforce provides a system for student information, account management, sales tracking, and performance management. Seventeen schools are now implementing the tool this school year.

94%

Students meet or exceed expectations in the workplace

88%

Annual Corporate Partner retention

Cristo Rey’s nationally recognizable Corporate Partners are featured at www.cristoreynetwork.org/corporatepartners.


College Initiatives 360 Since the first Cristo Rey high school opened its doors in 1996, college enrollment and completion has been our goal for our students. With a $2.4 million investment from The Wilson Sheehan Foundation, the Cristo Rey Network launched College Initiatives 360 to expand and strengthen Cristo Rey schools’ college-going culture and support for students and graduates on their path to and through college.

“Our foundation’s investment is a meaningful step in building institutional capabilities across the Cristo Rey Network to help Cristo Rey students continue the success in college which they achieved in high school.”

- Chris Wilson founder of the Wilson Sheehan Foundation

Led by Director of College Initiatives Ken Hutchinson, the program—which emphasizes staff development, more targeted use of data and technology, strengthened University Partnerships, and a College Success Fund to increase schools’ institutional capacity for college support—is designed to equip our schools with the resources necessary to actualize the Network’s commitment to closing the graduation gap for our students.

These efforts are augmented by the new Cristo Rey Howley Scholarship Program, a collaboration with The Howley Family Foundation, that is awarding approximately $1 million of supplemental four-year scholarships to Cristo Rey graduates enrolling in University Partner institutions to help ensure that they have the necessary financial resources to graduate from college.

COLLEGE COMPLETION SNAPSHOT Cristo Rey alumni are attaining Bachelor’s degrees at 2.5x the rate of all low-income high school graduates. Cristo Rey Network

Low-Income Total Population

High School Graduates

High-Income Total Population

2008

2009

2010

Class of 2020 Goal

College Enrollment

89%

90%

89%

95%

46%

64%

81%

Bachelor’s Degree Completion (in 6 years)

32%

36%

34%

70%

8%

15%

73%

For the Class of 2010, another 8% of Cristo Rey Network alumni graduated from two-year institutions, increasing the total rate at which Cristo Rey alumni graduate from college to 42% (two and four-year institutions). Source: Cristo Rey Network Class of 2008, Class of 2009, and Class of 2010 Data from the National Student Clearinghouse; Low-Income and High-Income populations based on Cristo Rey Network calculations of data from Postsecondary Education Opportunity, January 2012 and September 2014 publications from Postsecondary.org of the Pell Institute; National Average and National Black & Hispanic Average from the 2013 American Community Survey, US Census

10 | Visit www.cristoreynetwork.org/impact to read alumni profiles and www.cristoreynetwork.org/universities for a list of University Partners.


“Cristo Rey prepared me for college by instilling in me hard work, dedication, and independence.” - Karis Harris Cristo Rey Jesuit (Baltimore) ‘11 Stevenson University ‘15


New School Growth School growth momentum remains strong, and the Cristo Rey Network is poised to have 40 schools serving 14,000 students by 2020. In summer 2016, two new schools—Cristo Rey Baton Rouge Franciscan High School and Cristo Rey Tampa High School— opened their doors. Chief Network Growth Officer Brian Melton and his team worked closely with the Feasibility Study Committees during the Replication Process and the founding leadership teams to ensure that both institutions are positioned for financial and operational success.

Cristo Rey Oklahoma City Catholic High School has completed a Feasibility Study, moved to Launch Year, and is on schedule to open in 2017. A Network first—the school’s site will be located on the Oklahoma City campus of Oklahoma State University. Five Feasibility Studies are currently underway in the following markets: East Bay, CA; Fort Worth, TX; Jacksonville, FL; Las Vegas, NV; and Richmond, VA.

SCHOOLS RAISE $25,000 FOR CRISTO REY BATON ROUGE Cristo Rey Baton Rouge officially opened its doors only seven days before it was forced to close them indefinitely due to flooding that devastated the campus and much of the city of Baton Rouge in September. As the school quickly moved to temporary quarters and resumed operations, the 31 other Network schools were inspired to mobilize support and challenged each other in creative ways to help raise money to replace lost technology, uniforms, and furniture necessary to equip the school for its first academic year. Student-led initiatives raised more than $25,000 for the school. “When you talk about solidarity and the call to family, community and participation, we understand what it means.” - Cristo Rey Baton Rouge President Jim Llorens 12 | Target markets for new schools are listed at www.cristoreynetwork.org/schoolgrowth.


Board of Directors W. Nicholas Howley (Board Chair) Chairman and CEO | TransDigm Group Incorporated

Financial Statements

Kevin Baine Partner | Williams & Connolly, LLP George W. Bilicic Vice Chairman of Investment Banking | Lazard Freres & Co. LLC

Comparative Schedule of Revenue and Expenses Support and Revenue:

Richard Braddock Private Investor

FY 2016

FY 2015

$1,950,144

$3,377,603

School Membership Dues

960,000

890,000

University Partnership Dues

113,500

125,550

Investment Income

2,171

958

Total Support and Revenue

$3,025,815

$4,394,111

Fundraising

Sr. Eileen Enright, RSM President | Cristo Rey Sacramento High School John P. Foley, S.J. Chair Emeritus and Chief Mission Officer | Cristo Rey Network Jim Gartland, S.J. Rector | Blessed Peter Faber Jesuit Community at Boston College Jane E. Genster President and CEO | Cristo Rey Network Patrick James Founder and Owner | Crowne Group, Inc. Preston Kendall President | Cristo Rey St. Martin College Prep

Expenses:

Ann Korologos Former United States Secretary of Labor

Program Services

Jane Martinez Dowling Executive Director | KIPP Through College

Funding of Schools Funding of Scholarships Programming Provided to Schools

— 45,000 2,358,675

1,250,000 — 2,201,049

Supporting Services General Administration

348,792

357,572

Development and Communication

271,340

235,768

$3,023,807

$4,044,389

Total Expenses

John R. McConnell Founder and President | Cristo Rey Philadelphia High School Robert M. Mooney Private Investor Tom O’Connor Former General Partner | Bear Stearns & Co. John E. O’Shea CEO | Navigator Energy Services, LLC Paul E. Purcell Chairman, President, and CEO | Robert W. Baird & Co. Joe Rauenhorst President | Charter School Properties Leo Sheridan Founder and CEO | Advanced Group John Thompson Former Senior Vice President and General Manager | BestBuy.com Martha Wyrsch Executive Vice President and General Counsel | Sempra Energy


Honor Roll The Honor Roll reflects gifts of more than $100 to the Cristo Rey Network received July 1, 2015 through June 30, 2016. $500,000+ Anonymous $250,000 - $499,999 The Walton Family Foundation $50,000 - $249,999 George and Laura Bilicic Richard and Susan Braddock Foundation The Dana Foundation The Drexel Fund The Howley Family Foundation Darren and Terry Jackson Mario Family Foundation John and Charlene O’Shea Roger and Susan Stone Family Foundation Ventana Charitable Foundation $25,000 - $49,999 Kevin and Thayer Baine Jane E. Genster and John J. Buckley, Jr. GHR Foundation Tom O’Connor Purcell Charitable Foundation Joseph Rauenhorst Family Foundation Martha and Gerald Wyrsch 14 | www.cristoreynetwork.org/makeagift

$10,000 - $24,999 Patrick J. Foley Paul B. Gaffney Margaret K. Manatt William V. and Paula McMenamin McNamara Purcell Foundation Dr. Scholl Foundation Joe and Ann Wenger $5,000 - $9,999 John and Rosemary Croghan The Healey Family Foundation Jack and Sherry Kahl Rita and Dennis Meyer Kevin J. Serr Richard and Dolores Shantz John and Carol Thompson $1,000 - $4,999 John Bakalar Charles and Tiscia Bidwill Margaret S. & Philip D. Block, Jr. Family Foundation John Compall Philip Ward and Claire Cunningham W.S. Darley & Co. Patrice and John DeCorrevont William and Arline DeJoseph Paul and Rosemary Eide Charles and Shirley Feeney Fordham University Campus Ministry Christopher Hebig David and Margaret Hensler Susan and Leander Jennings Foundation Stephen Kern

Charles King William Laimbeer Pat Lee Susan A. Leverone Thomas and Ann Litzler Michael Maag Peter Maag Mary Jane Macafee William and Kathe McDaniels Carla Volpe Porter and Tim Porter Dennis M. and Kathy O’Keefe Susan R. and John W. Sullivan Foundation The Vardaman Family Foundation Ann Wallace and Mark Troutman $500 - $999 Richard and Joan Abdoo Mary Batch Robert and Sheila Berner Kirk M. Bresniker George Cavanaugh Philip and Julie Delaney Eugene and Barbara Feit John P. Glunz Brian and Kathy Hayes Robert H. Keller Linda and Buzz Lewandowski Thaddeus and Margaret MacKrell Thomas and Madeleine McKeon Patrick Mitoraj Andrew and Brenda Morris Jon and Linda Morris Susan B. Murphy Norton and Mary Ann O’Meara Jeanne B. Oelerich


Eve and Tim Shea Mary Sherry Martha and Michael Smith Robert Van Kirk Tami Wilson $100 - $499 Jo-Ann and Rocco Abbate Radm. Robert and Lois Abele Salvatore Anastasio (deceased) Lisa Becchetti Robert J. Becherer Emily Blaha Anne D. and James Allen Carroll Charles Catalano Maureen Joyce Chavoen Michael and Gail Coie Michael and Katherine Davey Debra K. Davis William Drake Ralph Drees Raullo and Gina Eanes Matthew and Kelly Fairweather Richard E. and Anne K. Feeney Joanne Feldmeier George and Bettina Francis Theodore Fuger Karen and Bernard Gallagher Jean and James Galleher E. Tim and Michelle Gay Gladys and Walter Gaylor Thomas M. Haggerty Joseph Halbach Jr. James W. Harriman Jr. Paul Jaeger Frank and Patricia Johnson Ed and Linda Kaiel William D. Klein William Knott

Edward R. Koger Paul LaZotte Charles and Sandra Lizza CJ Mahoney Tom and Teri Maier David and Mary Martin Daniel McCarthy Stephen McGeady Mary Kelly and James McShane Elizabeth and Dale Meers Brian D. and Darcy Melton Rev. William Metzler Frank Molony James and Marcia Morley Carolyn P. Mosmeyer John P. Muller Dennis Kevin Mulvihill G. Michael Nidiffer Joseph and Joan Noonan Edmond and MaryAnn O’Connor Tim Olson Ben and Rowena T. Parma Robert and Carolyn Peters Barbara J. Pope Adam Ralko Charles and Joy Reed Tom and Dede Reedy Dr. Ana Maria Rizzuto Jennifer L. and Eric C. Rothe Pete Sanchez, Jr. and Norma Sanchez Clem and Viktoria Schaub Rev. Richard Shannon Cynthia Sharp Barry and Beth Simon Paul and Elizabeth Sittenfeld Francis and Bernadette Skuse Susan Smith Rev. Eldon K. Somers Roger and Marguerite Sullivan Seanna and Matthew Sumrak

Philip and Sandra Tobin Martha and Charles Turner Donald and Natercia Varley Mr. and Mrs. Leslie Vincent Pauline Viviano Lambert and Eleanore VonBank Michael and Marian Wernicke W. James Whelan David Wolke Clifford M. and Elizabeth Yeary Matching Gifts GE Foundation Sempra Energy UBS Memorial Gifts In memory of David Kvapil Priscilla and William Astleford Debra K. Davis Carolyn P. Mosmeyer Jennifer L. and Eric C. Rothe Jerry Alice Schoggins Mike and Kay Vajdos In memory of Mrs. Odeon Yeary Marian Swift Honor Gifts In honor of Henry J. Shea Eve and Tim Shea In honor of Leo Sheridan William V. McMenamin If an error has occurred in the compilation of this list, we ask that you call it to our attention.

www.cristoreynetwork.org/makeagift | 15


14 East Jackson Boulevard, Suite 1200 Chicago, Illinois 60604 Phone: (312) 784-7200 www.cristoreynetwork.org


2016 Cristo Rey Network Annual Report