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'A Different Kind of Attention Develops Sound Judgment' | 'Suppose I'm Right Here?…' (posted 3/23 & 3/5/2014). Over 680 posts, Public-Interest Investigative Blogging On These Matters Since 2009.

Challenging the Annenbergs’ Public Education Challenge Grants, Still Searching for AISR@Brown as a Form 990 filer, Still Scrutinizing Why We Accept that Privately Controlled, Synched, Billion-Dollar, Tax-Exempt Foundations Care about the Public as Much as About Controlling Their Collective Assets (and the Public, Lest It Start Demanding a Better Look at the Books!) [moved here 4-15-2017]

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This sprang un-mid-wifed (?) from the belly of another post,** where it’d grown submerged under that post’s main identity until ready to burst forth into a free-breathing, distinct publication from the other, as itself, and at a different street address (url) on the same blog.  I have been pregnant (and carried to term; they’re young adults now), so I do know what it feels like getting around the last few months: cumbersome. That’s how the other post was getting.

**the post (published 4/17/2017) which gestated (? incubated) this one:

Others talk so freely about conceiving, founding, launching and incubating various projects (or nonprofits) under some larger fiscal agent, or donor-advised-funds community foundations until they are “spun off” or “born,” I figure I can talk about having “given birth” to another post every now and then.   🙂  Sometimes, when I’m tangling too close with certain subject matter (here, the University of Pennsylvania and University of Southern California’s “Annenberg School of Communications” Trusts, not to mention the Annenberg Foundation itself) unpremeditated offspring are conceived.

So, this one being my “baby” I gave it a nice long name, in the  family (“FamilyCourtMatters)”tradition:

The first several paragraphs here overlap from the originating post, before I “get into it,” scrutinizing some of the Forms 990PF and relationships between various Annenberg projects and their main foundation. *** [see below next para. and link]

As previously explained (on the last post, above), this is a large family foundation (well, at least one) whose primary wealth came from ownership of publications/media field — the sale of “Triangle Publications,” by a second-generation business success, Walter H. Annenberg.

As much as I might want to elaborate more on this, after starting to do so here, I ‘re-allocated’ this into a spin-off post, which is now (a day later) complete and ready to go when this one is, under the name:

***And whose family style of philanthropy, prior generation and the new one (daughter Wallis), tends to put its name on the things it funds and endows — like entire schools within at least two universities, and to advertise about the amazing, large-scale things it has accomplished by the sheer scope and size of commitments.  No question this philanthropy is appreciated by the recipients, especially the art museums, but I do have a “show-us-the money” (financial reports) issue with the private-university-located entity which not only seeks to transform the US Public School system but also I gather to privately steer how, and in what direction, and to do this nonprofit and somewhat fiscally underground.

I also believe it’s time to start questioning the university homes (here, private universities) who help hide the cashflow involved while publicizing the program and project aspects, both this one, and other related ones.   

About this principle: I am noticing the habit across subject matters and at other universities also (example:  National Center for Adoption Law and Policy at Capital University in Columbus Ohio turns out to have been a trademark of the university, and while its featured website was referenced repeatedly on-line at different sites ending “*.org” or as I recall “*.edu”, at the end of the day, the website for which $230,000 (for starters) HHS funds were obtained by a Capital University Alumna (and US Rep), looks to have never been put up; the domain name is for sale with no redirect, and what was “NCALP” then became FYLaw, equally untraceable, most likely. You can see this interest across several of my posts within the last half year.

That was “Child Welfare Training” subject matter, but it also occurs in domestic or “Intimate Partner” violence prevention fields also (Ohio IPV Collaborative).  In reality, it may be less the subject matter than the accounting and reporting practices we should be paying attention to. At some levels, I believe the stated “cause” may be functioning as a hook, to reel in public support for the private or public/private consolidated interests (wealth, in other words) to problem-solve and retrain all involved in the new way of thinking, communicating, or in of course new electronic databases or platforms for the same.

In this post, “AISR” stands for one of the advertised projects for which I’m having some trouble locating financial reports (showing gross receipts, program-related revenues and expenses (payments to others, including subcontractors), plus annual reporting of a balance sheet, showing where are its investments), despite how popularly and widely it is referenced both by the involved universities and some of the funded nonprofits, some of which are either themselves networked, or helped start one (i.e., “Coalition for Essential Schools.”

If there IS no such Form 990-filing entity by the legitimate name AISR (written out), thing, then I would question why a corporation by that name was ever set up, which, as I established in my last post, Rhode Island Corporations Division says does exist; it has a business entity and listed board of directors, is classified as a nonprofit, and a start date is listed.

“AISR” represents “The Annenberg Institute for School Reform at Brown University” which is in the USA’s smallest state: Rhode Island or as the Secretary of State/Corporations Division website says “Rhode Island and the Providence Plantations.”

Here’s a street sign for the AISR but who can find its tax return (EIN#)?  I see there is a corporate filing for it.  Donations to it are coming (mostly) direct to Brown University EIN#; Brown being a private nonprofit, files its own Form 990s:

Ramifications: IF there is no proper EIN# (for example, if AISR is an UNregistered trademark of Brown University, or some other explanation), then what does that say about the famous Annenberg Foundation whose $500M to public education — and $50M of this to this institute named after the donors — is displayed on their website and recited faithfully in histories of the respective institutions?

If, by contrast (however) the secrecy and “catch-us-if-you-can” aspects of the cash flow TO the AISR is symptomatic of Brown University only, not the Annenberg Foundation whose claim is to have committed $50M gift to it months after its first $5M gift (and this in 1993), then PERHAPS the donee may be found by starting at the Annenberg Foundation end and working downwards as to the Public Challenge Grantees.

I cannot easily access EIN#s before this century, but early in this century did find a list of some of those grantees (but not named AISR and representing any EIN# outside of Brown U’s main #). Will show it below. This all will make more sense if you read the annotated images, not just the narratives around them.

What’s more, when a major foundation IS claiming to donate money which cannot be readily found on a financial report to an institute within a private university not subject to (or complying with requirements to) file — I figured perhaps it might be good to identify, in this situation, the OTHER “Challenge Grantees” specifically and see if, as a group, they are doing any better.  Perhaps also it is a symptom that something might be radically wrong with the entire picture; whether or not should be identified and whatever is wrong should be corrected. Where, for example, are the checks and balances?

CYC (found at AISR Brown University) Notice “Cradle to Career” is the goal.

At all points, when public schools major institutions are targeted for systemic change as sponsored by untrackable, or hard to follow private money, (projects of school districts across the country, who as specialized, special-purpose government entities, must maintain their pension funds, facilities management, maintenance, construction and acquisition at times (i.e. real estate), staff, administrative overhead, support staff, school security, books, computers and consumable classroom supplies, not to mention supply of properly qualified teachers, and security-screened for criminal backgrounds at all levels too — should we not already have familiarized ourselves with at least our own school districts’ financial statements too, how they are put together, and be able to tell when any unethical, immoral, or potential racketeering influence (RICO) might be operational?    And be talking about those financial statements with each other, as opposed to devouring the press and funded public relations material (only) about them?

If the school districts — and their projects, the schools —  are collectively a major “distressed asset” in which foundations wish to personally invest (or, have the public “divest” more and more) — shouldn’t we be able to see where they are dealing with the private contractors seeking to reform them in coordinated fashion based on theories from, for example, specific Harvard, Yale, Brown, Columbia University, Princeton or Ivy League models?  [This maroon font marks three paragraphs not on original post, in the “overlap” section].

From ANNENBERG FNDTN WEBSITE About Page 1989 – 1993 (School Reform) + 1958 School for Communciation at U of P (Screen Shot 2017-04-14 at 1.32PM (Goes with next image):

The School Reform challenge is featured on Annenberg Fndtn’s own summary of itself, along with establishing schools of communication in 3 institutions, and substantial contributions to art museums and endowed chairs at universities. It also gives a size reference for the initial funding of the foundation — sale of a media empire (Triangle) for, judging by this, $3.6 billion, presenting another major problem to be solved — federal taxes on capital gains! And, public image vis a vis the less well-endowed (i.e., the working poor and middle class).

The foundation still has a Pennsylvania Address, although its surviving Annenberg family members and some of the staff/contractors seem to be more in Southern California (Los Angeles, Beverly Hills, etc.).

Timeline FAQs from its “Who We Are” (after identifying as a family foundation).  Notice the years, please.

  • 1989 The Annenberg Foundation begins operations on July 1 with $1.2 billion in assets. [see also annotated image to left]
  • 1990 To focus attention on the needs of historically black colleges, the Annenberg Foundation makes a $50 million challenge gift in what becomes, at the time, the most successful fundraising drive ever by the United Negro College Fund.
  • 1993 The Annenberg Foundation makes a $25 million grant to Harvard University. The grant will be used for scholarships, seminar programs and renovations to historic Memorial Hall, including the creation of a freshman dining facility named for the Ambassador’s son, Roger Annenberg.
  • 1993 The Annenberg Foundation makes a historic commitment to public education with the $500 million Annenberg Challenge. The Annenberg Challenge is one of the largest gifts in philanthropic history and works to revive and inspire school reform efforts across the nation. Eighteen locally designed Challenge projects operated in 35 states,** funding 2,400 public schools that served more than 1.5 million students and 80,000 teachers. [[More on how it identifies (or doesn’t) these projects, below, look for the “**”]]
  • 1993 The Annenberg Foundation grants $120 million to the University of Pennsylvania.## The grant endows the Annenberg School for Communication and creates the Annenberg Public Policy Center, which conducts research and convenes discussions on the critical intersection of media, communication and public policy.

“**” and “##” mark two footnotes I’m making to the organization’s summary page.  “##” is addressed first, and several paragraphs below that, and likely next to an image, **.” Look for both the symbols and titles in those two colors to tell one from the other.

## Annenberg School of Communication Financial Relations with the University of Pennsylvania and the Annenbergs:  

This 1993 $120M endowment for the (pre-existing since 1958, per description above) Annenberg School for Communication at the University of Pennsylvania (“ASC at UofP” for convenience here) becomes interesting when eight years later, the UofP endows a trust whose income goes to the school, but is still controlled by Annenberg and their historic financial and legal managers from other foundations or trusts.

I found a 2002-funded Trust which was initially funded with $100M (even) FROM the University of Pennsylvania [currently held in the UofP’s “AIF” and possibly from it in the first place] which was from the start under the control of (a) a Dean or Director from the ASC at UofP, Annenberg Family Members (originally Leonore + Wallis; Leonore the mother died in 2009, her famous spouse Walter H. in 2002), some lawyers from (as the Form 990PFs show) from a Philadelphia Law firm Dilworth Paxson also known for handling other Annenberg financial and estate matters.  One of these men (Wm. J. Henrich) was previously successor to Triangle Publications when its owner (Ambassador Annenberg) stepped down in, I believe the NYT article showed, 1984.

Closer looks at some of the respective tax return details reveals operation practices and the larger strategy.

(Shown again below:   tinyurl.com/1984Nov16NYTHenrichSuccdsAnnbg.  Not too long after, Triangle Publications was sold?)

“AIF” is a term I found on the tax return, and as seen on a financial statement (at university site) must stand for Affiliated Investment Funds” managed by a third party, it says:

AIF is Associated Investments Fund third-parties-managed, then 2’8B (excerpt from FY2001 UofP Financial Statemt)” (<==click for full-sized).

I will post more on this below; I’m still trying to understand it and wrap my head around how a university as large as the University of Pennsylvania, around since 1740 (!!), could be operating as a private nonprofit, and not as is seen in other states whose similarly-named universities ARE often state corporations or instrumentalities, or may have started as land-grants, but going by the name “University of Pennsylvania” similar to other states   Apparently.

This would mean that Annenberg has chosen two PRIVATE universities for Schools of Communications (here, and Univ. of Southern California) and private university Brown for its AISR.

The interesting feature to me here is that what I considered a state university, and would expect to be subject to “CAFR” filings, is apparently (judging by the size and description of “Trustees of the University of Pennsylvania) instead, just a humongous 501©3, that is, a private, nonprofit.  Each state may do its state-supported university systems in its own way, but that was a real surprise for me.  The ramifications?  It may not have to produce the type of detailed reports that other government entities have to.  For a contrast, I’m working on a separate post looking at the Commonwealth of Pennsylvania’s CAFRs, not that this topic hasn’t been covered on this blog (and a related one) in earlier years.

Take a look! You’ll have to ignore the wrong name supplied by the FoundationCenter, again; the EIN# represented belongs to the “Trustees of the University of Pennsylvania” which a small image from the IRS “Exempt Organization Select Check” search page also shows.  Or, just click on any oddly named organization in the table here to see the Form 990 attached to it.

Total results: 3Search Again.

Out-Of-School Time Resource Center PA 2015 990 142 $17,230,855,000.00 23-1352685
Morris Arboretum PA 2014 990 238 $16,398,248,000.00 23-1352685
Institute of Contemporary Art PA 2013 990 204 $14,905,771,000.00 23-1352685

The IRS “Exempt Organizations Select” check search site verifies that contributions here are tax-deductible and who actually owns that EIN#:  “Trustees of the University of Philadelphia.”

$17 BILLION dollars of assets of course includes buildings, and liabilities to go with them.  BUT, a closer look shows it includes substantial investments and related companies (foreign and domestic).


Click to read Annotations and view full-sized (Sched E self-identification by U of P on its tax return)

The Annenberg Foundation “About Us” summary fails to mention that after it gave UofP $120M to endow the school named after the family and setting up another “Center” with the family name, eight years later, in 2002, the UofP then set up a trust controlled by ASC leadership and Annenberg family leadership, starting with $100M — and not too many years later, doubling in size, which income was to go to back to the University of Pennsylvania (i.e., the terms of the trust strictly controlled where its revenues went).  However, someone had to administer this, and over time I saw that the, or an independent subcontractor investment management firm (Bessemer) also had funds titled after itself in which the assets were invested, as well as being paid (as a subcontractors, plus separately, there would be also more “investment management fees”).

About Bessemer — this firm began when Phipps, who helped found Carnegie Steel, sold his share and (obviously) than had some investments to manage.  The investment company (1907 started) continued privately controlled, but by the 1970s began inviting in some of their kind (wealthy families, foundations, or trusts) to work with them.  https://en.wikipedia.org/wiki/Bessemer_Trust.  Still run by a Phipps descendant (as of this “Wiki”), it manages over $100 billion assets for its 2,300 clients, has offices all over the US in major cities, and the Cayman Islands, and London.  In 2001, this Bessemer Trust formed a partnership with someone from Morgan Stanley aimed at “middle market equity.” See next image:

Minimum investments to get involved in Bessemer Trust, if they want you, is $10M.

Guess what the 2001-formed partnership middle-market partnership specialized in?

“Lindsay Goldberg is an American private equity firm focused on leveraged buyout and growth capital investments in middle-market companies in such sectors as consumer products, commodity-based manufacturing, energy services, business services, financial services, energy transmission and waste disposal.[2]

The firm, which is based in New York City, was founded in 2001 by Alan Goldberg, who had previously served as chairman and CEO of Morgan Stanley Private Equity (later Metalmark Capital) and Robert Lindsay, who played a central role in the Bessemer Trust private equity business, serving most recently as Managing General Partner since 1991. Goldberg and Lindsay had worked together in the 1980s at Morgan Stanley and were founding members of the private equity business in 1984.

The firm has raised approximately $13 billion since inception, across four funds. The firm raised $2 billion for its first fund in 2002.[3] In 2006, the firm completed fundraising for its second fund with $3.1 billion of investor commitments.[4][5] In 2008, Lindsay Goldberg commenced raising its third fund with a target of $4.0 billion. As of November 2015, $3.4 billion had been raised toward its fourth fund.[6]

Leveraged buyouts and growth capital.  Per this (brief) Wiki, there was also some press over a controversy regarding one of the projects, Duff Capital Advisors, which lasted about one year, period, 2008-2009.

Investment in Duff Capital Advisors[edit]

In 2009, Lindsay Goldberg received media coverage for controversies related to its investment of $500 million in seed capital in Duff Capital Advisors.[8][9] Launched by former Morgan Stanley CFO Phil Duff, Duff Capital was led by financial services executive Eileen Murray, who served as its Co-Chief Executive Officer and President.[10] Duff Capital Advisors started in March 2008 and shut down in May 2009 prior to moving into the 43,400 square feet of office space, complete with food court, showers, and other amenities, which the company had leased in an office park in Greenwich, Connecticut.[11][12] Subsequent to the closure of Duff Capital Advisors, Phillip Duff formed Massif Partners, another hedge fund; however, Lindsay Goldberg declined to make an investment in this enterprise.[13] Massif Partners went on to encounter similar challenges to Duff Capital.[14]

(For timeline comparison, the alteration in the UofP / Annenberg School of Communications financial setup involved moving $100M into a trust “fbo” (for the benefit) of UofP in 2002 and another one “fbo” USC (University of Southern California), looks like the same amount or close to it, also about the same time.)  However, they weren’t involved with the partnership, just Bessemer Trusts.  BUT, later on, you can see the investments are in funds named “Bessemer” part of the time.  [I do not recall on which tax return, but remember seeing this.  Perhaps it was on the foundation proper and not one of the ASC Trusts…Anyone is free to review; I’ve provided the EIN#s…]

But here’s an image from a UoP tax return showing that EIN# as part of its overall “related entity” operations.  I’ll show the table for the same EIN# below.

Trustees of Univ of PN EIN# 231352685 FY2014 990 Excerpt showing ASC Trust as supporting entity.  Meanwhile, see also the corresponding entity’s filing (the ASC Trust at U of PENN) FY2014 Form 990 acknowledging the Univ of Pennsylvania as its own Schedule R Related Entity (and the only one, in fact):

** Annenberg Public Education Challenge (footnote to the Foundation’s summary page)

(**18 projects in 35 states by definition indicates crossing state jurisdiction lines, which helps break down accountability with the departments of education and school districts within each state involved.  But that’s nothing particularly new in the field of public/private partnerships…)

Question:  Where are the Foundation’s Forms and audited statements for year 2015? I can understand why 2016 may not be out yet — but why not 2015? (2015 return has not shown up yet on the FoundationCenter search, either) — this is the latest year showing as of now, April 2017.  They are two to three years behind in reporting to their own openly transparent website.

Annenberg Foundation PA 2014 990PF 101 $1,663,095,893.00 23-6257083

Above represents FY2014 because at this point their FYr.=Calendar Yr. That means FY2015 isn’t posted yet, at least here (also not on their website).

Just a word on the relationship with the University of Pennsylvania and Annenberg School for Communications (started in 1958) and its endowment (and new name, Center for Public Policy) — who funded whom, and who controls whom, gets a little complicated when I read an Annenberg Foundation 2002 return stating that the “[Ann’brg.] School for Communications” had converted into a private trust. I looked up the private trust and found its initial return (2002) which shows a $100M contribution TO this trust:

Annenberg School for Communication Trust at the University of Pennsylvania PA 2014 990 34 $119,030,954 81-0550464
Annenberg School for Communication Trust at the University of Pennsylvania PA 2013 990 34 $119,053,373 81-0550464
Annenberg School for Communication Trust at the University of Southern California PA 2015 990 34 $104,485,226 77-6216147

WHILE I’m HERE (and after more research of a few more related family trusts or foundations, with a curiosity about the similarities between ASC Trust at Univ of Pennsylvania, and the one (with its own, separate EIN#) at Univ. of Southern California — I already knew that “USC” (In Los Angeles) was a private university; its name came up in association with other “drill-downs” (on “Promise Neighborhoods” as I recall, but don’t quote me on that).  Looking it up, it seems “Exempt” from filing, almost anything of interest, at the state Charitable level, it dates back to 1895 (when two colleges, both run or controlled by Southern Methodist Conference) merged into one university.  And, it’s a Form 990-filer.  Current gross assets, for comparison with UofP’s $17B, are almost $10B recently: USC EIN# is 951642394:

Total results: 3Search Again. (Univ. of Southern California)

University of Southern California – Pacific Asia Museum CA 2015 990 135 $9,978,569,629.00 95-1642394
University of Southern California CA 2014 990 174 $9,594,824,056.00 95-1642394
University of Southern California CA 2013 990 175 $8,451,149,010.00 95-1642394

Self-described by header, showing a small board consisting of one Dean, two partners in a law firm, and an Annenberg to control $100M of investments to be distributed at least 85% to the school named after the Annenbergs

INITIAL RETURN (short year) 2002 $100M receipts shown funding the Trust whose income is distributed to the U of P Annenberg School of Communications (see above image for 4-person only board of directors)

[I’m not looking at the ASC Trust at the USC one in this post.  It could be reviewed in the same manner as the UofP one was here… or any other way…  Notice its street address is still “PA.”]

<==John LaTourette, Jr. & Richard L. Fox (after 9/30/2005) I guess represent the legal trusts and estates component; elsewhere on the next 990PF like a Bessemer Investments (NY) is investment management, and as you can see the Annenberg women (mother and daughter at this point) with Wm. J. Henrich (see below) and the Director of the ASC at the University, control these particular $100M assets, including where to invest, when and what parts to sell, etc.   See description from FY2003 (EIN# 810550464).

<==Kathleen Hall Jamieson per NNDB was born in MN, educated in UWisconsin (except BA in Rhetoric and Public Address at Marquette Univ (Jesuit, Milwaukee)), and before coming here in 1989, was professor at UMaryland and UTexas (also lists her books there).  She has been a Fulbright Scholar. Per the School website:

Dr. Kathleen Hall Jamieson, shown at ASC at Univ. of Pennsylvania

…Jamieson’s work has been funded by the FDA and the MacArthur, Ford, Carnegie, Pew, Robert Wood Johnson, Packard, and Annenberg Foundations. She is the co-founder of FactCheck.org and its subsidiary site, SciCheck, and director of The Sunnylands Constitution Project, which has produced more than 30 award-winning films on the Constitution for high school students  [[that reference to Sunnylands indicates staying in close contact with the Annenbergs — it’s a property in Rancho Mirage CA which was at one point intended to become “Camp David West,” has hosted Presidents, etc.]]

Part III -Statement of Program Service Accomplishments ( from the Form 990, EIN# 81-0550464)

“The Annenberg School for Communication Trust at the University of Pennsylvania (hereinafter the “Trust”) is a charitable trust established under the laws of the Commonwealth of Pennsylvania exclusively for the benefit of The Annenberg School for Communication at the University of Pennsylvania (hereinafter the “Annenberg School”), which is the school for the study of communications at the University of Pennsylvania, an organization described m Sections 501(c )(3) and 170(b)(1 )(A)(u) of the Internal Revenue Code (“Code”), located in Philadelphia, PennsylvaniaThe Annenberg School is a component part of the University of Pennsylvania and is governed and operated by the Trustees of the University of PennsylvaniaPursuant to an IRS Determination Letter dated June 6, 2002,
the Trust is a tax-exempt organization under Section 501(c )(3) of the Code and a “supporting organization” under Section 509(a)(3) of the Code The activities of the Trust are limited to the trustees making distributions of principal and income of the Trust to the University of Pennsylvania, exclusively for the benefit of the Annenberg School.. This Form990 is being filed for a taxable year beginning July I, 2002 and ending June 30, 2003 Distributions to the University of Pennsylvania were made during the Trust’s taxable year in the amount of $2,000,000.

[Comments: You’d think this might be a Form 990PF, however supporting an educational institution seems to qualify what might otherwise be a private foundation as a public charity (??)  The form used to file is clearly “990” and not 990PF).

Law Firm profile of LaTourette, Jr. features involvement in managing Annenberg foundations. Shows Law degree from Rutgers University.  See also “Relationship Science” (also on board of the USC Annenberg Trust)

By 2005, there is some change of personnel and a near doubling of the assets held, although that hasn’t particularly doubled the distributions to the Annenberg School of Communications. (Next annotated image showing Officers for 2005).

I looked up Wm. J. Henrich, and found he died not long after (in 2009) (Tinyurl.com/WmJHenrich2009-Obit-Philly) He appears to have been Catholic. Donations to an “Annenberg-Henrich Scholarship Fund” at LaSalle Univ. offered.

And that in 1984 (after about 27 years serving as Triangle’s “outside counsel” and then 55 yrs old, per NYT he was chosen to succeed Walter H. Annenberg as Chairman of the Board (then 76 yrs old) of the fantastically profitable (and privately held) company which had, at one point, owned, then sold the Philadelphia Inquirer:  tinyurl.com/1984Nov16NYTHenrichSuccdsAnnbg (That link also tells more about the company). Henrich was then also senior partner at Dilworth-Paxson (where Latourette also came from).  By 2005, Hall Jamieson has been replaced by Michael X. Delli Carpini (at UofP since only July 2003, with recent background at Pew Charitable Trusts, Columbia (1987-2002), Barnard (1995-1999, chaired Political Science Dept), and before that, Rutgers. As of 2014, his term has been extended until 2018: “Michael X. Delli Carpini’s Term Extended as Dean of Penn’s Annenberg School for Communication“).

That Barnard, with its difficult history trying to duplicate a Harvard-Radcliffe relationship but with Columbia University (i.e., we’re talking in Manhattan, NY), and as the nation’s most selective college for women 2016 per its “Wiki”), would this late (mid-to-late 1990s) have a male and possibly also Catholic, Chair of Political Science is, well, interesting:

The Seven Sisters is a loose association of seven liberal arts colleges in the Northeastern United States that are historically women’s colleges. They are Barnard College,** Bryn Mawr CollegeMount Holyoke CollegeRadcliffe CollegeSmith CollegeVassar College, and Wellesley College. All were founded between 1837 and 1889. Four are in Massachusetts, two are in New York, and one is in Pennsylvania. Radcliffe (which merged with Harvard College) and Vassar (which is now coeducational) are no longer women’s colleges.

**”For its first 229 years Columbia College of Columbia University admitted only men for undergraduate study.[4] Barnard College was founded in 1889 as a response to Columbia’s refusal to admit women into its institution.”  [Columbia University pre-dates the Declaration of Independence.]…

[From http://www.wikicu.com/Barnard_College]: Barnard is an independent institution affiliated with the University via an intercorporate agreement negotiated between the two institutions. Barnard has an intricate, historical, often complex, and sometimes confusing relationship with Columbia

ASC Tr @ UoP EIN#810550464, FY2005 (endsJun06) V-A showing Change of Officers/Directors 

ASC Tr @ UoP EIN#810550464, FY2005 (endsJun06) V-A showing Change of ASC rep (to Delli Carpini) + from Estate Lawyr Latourette to RichardL Fox in Phillie)

The handling of those Communication Schools Trusts at the three universities gives us an idea of how the family operates — often maintaining a controlling interest in things named after themselves, and utilizing (as to the ASC Trusts above) common management.

FY2014 EIN#810550464 ASC Trust at UofP 5 1h-wk Trustees — Delli Carpini, W Annenberg, RL Fox, Diane Deshong and John R Latourette Jr (back on again) c|o Dilworth-Paxson

ASC Trust FY2014, the Balance sheet top half (assets) has about $5K cash (Ln1) and is otherwise basically blank except a single entry under “Other Assets,” holding $118.9M. Clearly at this point, a low-maintenance operation (see Sched D which describes which other assets — all in a single place).

Schedule D (Supplemental information to Balance Sheet Statement) shows that ASC Trust for UofP has the assets stowed under UofP AIF Fund anyhow, which (as I understand it; image above provided or see next link in this caption) is a significant “chunk of change” managed by outside parties. (That info from UofP financial statement, available at the university website, describe). Which brings up the question, why take $100M FROM UofP to stow it in a trust whose income goes back TO UofP and then stow ALL the assets in an already UofP controlled (but managed by outside parties) “AFFILIATED INVESTMENTS FUND” (AIF) which in the early 2000s already held $2.8B?? I think some of the answer may lie in earlier securities-selling activities of this same ASC Trust.




You can view this and subsequent years of the return to judge (or at least see) how various revenues accrued are distributed back to the Univ. of Pennsylvania, per its tax returns.   I have other ground to cover in this post, and am not taking it all the way down at this time.

(Referred to this above also…) Moving on…

I went looking for the financial statements of the University of Pennsylvania, thinking I would find, as in some other states, it was either a state corporation, or instrumentality, or something similar.  It was no such thing, but as “Trustees of the University of Pennsylvania” Form 990 declares (after I finally found its EIN# when no “CAFR” showed up, particularly) is a “private, nonprofit” corporation– obviously functioning as a university (founded in 1740 !!!) as these returns will show.  The screen print just goes to show why one might not find it on a “name-search” at Foundation Center.org.  I wonder why this happens so often, and how it happens over there!

















Despite the odd names, go to 990finder.foundationcenter.org and look up this EIN#, click through, and you will indeed find “Trustees of the University of Pennsylvania” and quickly see, this is the university itself (complete with gross receipts this (latest reported) year of $15 Billion, assets (Beginning of year) of about $17B (and after liabilities, about $12B), and the significant size and scope of operations. Under Schedule R, showing its many related entities (both disregarded and Pt. II, ta-exempt), this ASC Trust I’m looking at (showing its EIN# also) can be seen, among a crowd of others. (next image).

Trustees of UPenn Guidestar (EIN#231352685) Overview incl its 12 Schools (ASC Wharton GSE etc.) Screen Shot 2017-04-17 at 6.14PM annotated











Click to see ASC Trust and its EIN# listed as a “Related Entity” at “Trustees of the Univ. of PA”Trustees of Univ of PN EIN# 231352685 FY2014 990 Excerpts (annotated)



Getting back to “Who/What is the AISR…”Per the Annenberg Foundation’s own history, [near photo of the couple, above] AISR received its $50M under the 1993 challenge.  Notice, however, the other timelines name the recipients (United Negro College Fund, Harvard (and there are more not quoted), but this one does NOT name the direct recipients, but instead cites “18 locally designed PROJECTS” funding 2400 public schools. It also first references a “commitment” — not a donation of that amount that year; it is probably over time — then calls it a a “gift” but refrains from naming to whom.
Typically collaborative projects might have a lead agency funder — these could be named, but here, weren’t.  The list of major donations continues, often named “Annenberg” or TO something named “Annenberg.”  This may make more sense also when one realizes that Ambassador Walter H. Annenberg’s father (Moses) was sentenced to four years’ federal penitentiary time for things related to tax evasion, and died shortly after getting out, thus sacrificing himself for his son, who then inherited and obviously also developed the publishing empire and what other portions of it existed at the time.

This empire being substantial, philanthropic giving is also a major way of reducing federal taxation on profits from investments (dividends, interest on savings, net gain from sales etc.).  It’s a requirement of functioning as a private foundation, i.e., less tax on the non-charitable use assets, and of course builds positive relationships with those receiving the funds, and positive press too — no question it creates jobs at the foundation, for subcontractors, and for the projects funded.In fact, reviewing the returns of the Annenberg Foundation Trust at Sunnylands, there is discussion, as it’s an operating (not a grant-making) private foundation, in which, although it’s exempt from federal income tax, it would also be having reduced excise taxes of either 1% (if enough qualifying distributions are made) or 2% if not.  Also interesting in this Foundation Trust (now with a California address, but earlier on, a Pennsylvania one) is the intentional future use of the 200 acre property at Sunnylands should it come into possession of the trust, for specific “Permitted Program Uses” and in the process of this, over time, the University of Pennsylvania and/or “Annenberg Public Policy Center” being paid for “administrative services” for that trust.  I found this trust looking for a registration for the ASC at USC (by its EIN#) in California, which I did not find, but did find these other trusts or nonprofits:

Annenb’g Foundatn Trust at Sunnylands shows under California Charitable Registry namesearch of “Annenberg” (But, Annenberg School of Communications” doesn’t under this name or its EIN# — because an educational institution?)

Screenshot (top only) of CalifOAG Char Details for AnnenbrgFndtn@Sunnylands; see annotations as this is a source of info on other family activities and foundations (Article IX to FY2004 filing)

Annotated p2 of Article IX (Ann’bg Fndtn Tr @ Sunnylands att to FY2004 Form 990PF) names AISR, Schools of Communication (UPenn & USC) + more as conducting programs to advance important social & educational issues @ Sunnylands (see p1 also)

Annb’g Fndtn Tr@ Sunnylands ArticleIX (4pp) ONLY from FY2004 (Permitted Programs — Post!) EIN#256774871_200506_990PF (last 4pp of the 123-pager!) [<==THIS link has more than any single image nearby]

Char Details (Calif) Annenb’g Fndtn Tr @ Sunnylands EIN#25- 6774871~ Joint Indiv Trustees (PrivateOperatingFndtn since 2001 per its FS) ACTIVE LINKS over $½ B assets <==

($556M to be precise).  That link does not reflect any nearby image; please take a general look at the size and scope of activities.  Because it’s printed as a “pdf” (not from an image) those links at the bottom (Related Doc’ts. section) will be active and lead to more information on the various filings.  Including 3 attempts in a row spanning two attorneys-general for paperwork.


Annenberg Foundation’s own website “Financials” page explains this (distribution percentages required, reporting requirements) very well, actually, and posts Audited Financial Statements, Form 990-PF, and Form 990-T — up through 2014 only.  It describes being registered as a nonprofit in California.  The 2014 Form 990PF is showing a Pennsylvania (not California) address (reflecting the Treasurer/Financial Manager Paul Manganiello; the family members show Los Angeles addresses)  EIN#23-6257083.

Question:  Where are Forms and audited statements for year 2015? I can understand why 2016 may not be out yet — but why not 2015? (2015 return has not shown up yet on the FoundationCenter search, either) — this is the latest year showing as of now, April 2017.  They are two to three years behind in reporting to their own openly transparent website.

Annenberg Foundation PA 2014 990PF 101 $1,663,095,893.00 23-6257083

Above represents FY2014 because at this point their FYr.=Calendar Yr. That means FY2015 isn’t posted yet, at least here (also not on their website).

Fiscal Year 2001 (ended June 30, 2002) (Tweak the Year to see later years; at some point it will go to FY=Calendar Year so the URL pattern would mention that in the table above around the “YYYYMM_990PF” part).  This listed the Chicago Annenberg Challenge Foundation, Inc. and how it works, also providing what looks like a grant number — it seems to be serving as an intermediary:

Annenberg Fndtn FY2001 Note re Chicago Annenberg Challenge exemplifies (unlike “AISR”) an IDENTIFIED corporate recipients; its name ends in “Inc.” Click to read full-size. See next related image listing (as of 2002) 15 (original was “18” per Fndtn website) Challenge Grantees. From that list, specific corporate IDs and EIN#s could be found but notably, AISR at Brown is not on the list. Brown University is, but only a single grant under $1M.

The Annenberg Fndtn (#236257083) FY2001 re Chicago Annenberg Challenge (Statmt19 from Form 990PF) (Screen Shot 2017-04-14 at 3.07PM.png

Fiscal Year ended 2001 (FY2000) Tax Return (<=whole return) contains a list naming 15 “Public School Challenge” grantees — Brown University (not “The AISR at Brown”) Is one of them, and among the smaller amounts distributed ($634K).  By this time, the AISR corporation had already been registered in Rhode Island, so why wouldn’t that be the grantee? An unusual notice in these earlier returns also says that The Annenberg School of Communications became this private foundation.

AnnenbergFndtn (EIN#236257083) Sched 17 to FY2000<~~ (YEJne30 2001) Challenge Program PublicEd Note TYPES of grantees (ScrnShot 2017-04-14 at 3.27PM)

Annenberg Fndtn FY2001 lists $52M of grants to 15 of the “Challenge Grants (Public Education)” — paid that yr. My annotations are simply sorting grantees by category, informally, and noting that AISR as an entity doesn’t show up among them. These take time to produce — pls. read!

This $52M reported in 2001 under the “Challenge Grant” which is reported as $500M over time in the press originally, as to the Annenberg Foundation, isn’t the only program name under which some of these same entities (I noticed Houston Challenge) and some of these networked school-reform nonprofits (again, I noticed “PEN” or Public Education Network” in the next section).  In addition to “Higher Education” grants (significant) in 2001, there was also “K-12 Public Education” (but not labeled “Challenge”) on the same Schedule 17, pp. I believe 2 and 3 of 10.  Next two images.  (Not annotated; you have link to the entire tax return above, so this time no links for full-sized reading to the same images).  It is easy to see which are the largest grants and, if combined, about which portion of the whole (under this category) they represent:  Corporation for Public Broadcasting (CPB) – $4.5M; PEN ($2.9M) and, Trustees of the University of Pennsylvania – $2.3M (which again, is a state government entity, or sponsored entity as most university systems in the USA are, whether “University of [State name]” or “[State name] State University”(CSU, PSU, etc.) .

K-12 Public Educ Grants (total $15M) Annenberg Fndtn FY2001 (Sched 17, image 1 of 2, see header info in image)


Along the way, looking at all this, there is plenty to learn about how our society is assembling the education of the future held hostage to whoever owns the debt.  

Somehow, it’s starting also to look a lot like the “too entrenched to fail — and likely to need more bailouts” of the former S&L and big bank/mortgage related disasters of other decades.  I saw this only by paying closer and closer attention to the foundations talking about each other and coordinated to fund their various networks.

**AISR = The Annenberg Institute for School Reform. Both this post and “A Tale of Two LLCs” contain important information on the background and issues presented with the AISR.

For example, I see it’s a corporate entity in Rhode Island, but  cannot Iocate any tax returns or a specific EIN# for it, so far. Donations to this entity (I’ve seen them from three or four different foundations) are going straight to Brown University itself (“earmarked” but to that main Brown University EIN#).

Proof:RI Community Fndtn (EIN#222604963) SCHED I p 65 showing multiple-program grants to Brown all under main EIN# 05-0258809 (Incl AISR -Providence Childrn+Youth Cabinet) Screen Shot 2017-04-

Meanwhile the board of Overseers (Directors) for it over time include prominent individuals, including over time, a President of Brown University, Ruth J. Simmons, the former President of the NAACP and a prominent Democrat U.S. Representative The Hon. Wm. H. Gray, III and, at least in the name of the sponsoring  Annenberg Foundation, and The Hon. Leonore Annenberg (℅ someone at the Foundation). Its original name and the source of $5 million start-up funding are not revealed at Brown’s description of this organization / program.  In its current name, at least in Rhode Island, it doesn’t show up on the IRS list of exempt organizations (to which donations are tax-deductible, i.e., Pub. 78 data).

Evidence at the Corporations Division (State of RI) level that an entity by this name, with a business ID, exists — however its articles of organization (unlike those of some others) are NOT posted under “filings” and when the option to ask for filings prior to (I believe 2008) by entering the Business ID# is given, nothing before 2006 is uploaded. Did AISR exist under some different name and Bus ID# previously? (Notice the start date, inside that filing, isn’t 1993 but later).

==> RI SOS showing The AISR as Corp 000087058 POB 1985 (Providence) (2017-04-06 at 6.29PM) ==>RI SOS showing AISR (DNP ID#000087058) existed since 1995 and some of its Directors| (2017-04-06 at 6.31M

Please notice that this Rhode Island Foundation (a dba for R I Community Foundation) gift to the Brown University Main EIN# ([<==link to above annotated image]) used for other programs also, as that tax return showed) only gave a total of about $50K to Brown/AISR, it was for the “Providence Children and Youth Cabinet” — a consortium formed, apparently, in 2010 and supported (so its website — scant in information about WHO it was, or its history, big on featuring personalities and colorful graphics) by AISR-Brown (and the RI Dept. of Health, and Lumina Foundation), making it obviously a Public/Private “collaboration” if not partnership. I also looked at some years of Lumina Foundation, and only this foundation, as donating towards the “Providence CY Cabinet,” and so far haven’t located in which year or how.

Who knows how many the other sources were.


Children Youth Cabinet of Providence @ the AISR, with help from “Lumina Foundation” (Indianpolis, also with prior involvement in SLM (Student Loan Marketing / Sallie Mae), and  Evidence2Success (an Annie E. Casey Foundation trademarked program) being promoted through the CYC (among other programs) in a simplistic website which kinda sorta doesn’t identify the responsible business entity behind CYC, other than naming AISR (which as I’m saying hasn’t identified ITSELF as a 990-filing entity either, that I can see….!)

The word “Cabinet” would be expected and is implied to be at the government level, however this one, evidence says it’s housed in part at “AISR.”

For discussion, I’ll call this CYC or CYCP (for “Providence”)

They are promoting “Evidence2Success,” an Annie E. Casey Foundation program. As a word mark, it’s searchable at USPTO.gov’s “Trademark Electronic Search Site” (“TESS”):

Trademark Electronic Search System (TESS)

Use Trademark Electronic Search System (TESS) to conduct a free online search of the USPTO database. TESS provides access to text and images of registered marks, and marks in pending and abandoned applications. The USPTO cannot provide guidance as to how you should search, beyond the HELP provided within the TESS site.

I just did, and found out this term was first used in commerce only 2012, Annie E. Casey only filed for the trademark in March 2016, and it’s not even been published yet (the date says May 2, 2017 — still future as I write) for opposition yet.  It also describes the “goods and services involved.” (I provided the link so you can verify, rather than me insert the whole table into post):

Goods and Services IC 041. US 100 101 107. G & S: Educational services, namely, providing non-downloadable webinars, on-site training, and non-downloadable group video coaching about programs that communities can adopt to improve child well-being. FIRST USE: 20120118. FIRST USE IN COMMERCE: 20120118

IC 042. US 100 101. G & S: Computer services, namely, providing an interactive web site featuring technology that allows users to collect, store, manage, deliver and showcase electronic and paper-based content to choose and implement evidence-based programs that can be adopted to improve the general well-being of children. FIRST USE: 20121118. FIRST USE IN COMMERCE: 20121118


The two categories are educational services, non-downloadable and computer services.  The general subject matter is described in bold print, the services in red, underlined, italics, and that red, underlined, italics tells you WHAT forms of goods and services will be sold and over which proprietary control is sought.  Notice no claim that such programs WILL improve child-well-being is claimed — just that communities can adopt them, or that they “can be adopted…”  The subject matter “focus” “general well-being of children” or “child well-being” isn’t exactly focused — but broadly expansive…

Here’s the Evidence2Success narrative at the “Cradle to Career” CYC website:

In 2012, key leaders in Providence signed onto a promising initiative to bolster the well-being of the city’s children and youth: they adopted Evidence2Success, a prevention-based framework designed by the Annie E. Casey Foundation to help public systems work together more effectively to improve the well-being of children in disadvantaged communities.** This initiative is an exciting opportunity for Rhode Island to stem the demand for high cost services such as special education, residential placements and incarceration and redirect funding into cost-effective prevention programs for greater return on investment.

**Notice the purpose stated here doesn’t precisely match the purpose stated at the US Patent and Trademark Office above (USPTO.gov). No reference was made to “public systems” in the trademark, or to “children in disadvantaged communities.”  But that’s probably the best place to start before going national for ALL children, in ALL places (it’s preventative, right?) at least in the nation (and it doesn’t specify USA children, either — does it?) 

Annie E. Casey Foundation (location: Baltimore) is into coordinated services and public/private partnerships, as are many philanthropies. (for example:  FundersNetwork for Smart Growth and Liveable Communities) (which apparently started with 30 philanthropies in 1999 and took until 2007 to incorporate as a Florida 501©3…. ….) and likes this strategy:

(Fundersnetwork.org/About-Strategies image)

“Influencing Knowledge “Fostering networking” “Facilitating funder Action and Leadership.”  Basically, they are talking about a privately-organized (if not sponsored! public institutions WILL be involved) form of government.

AEC has been also more than enthusiastic about “responsible fatherhood” programming (diverting money from TANF to educating low-income people –originally sold under this target population — on the benefits of marriage and paying one’s child support if not married, under similar justifications, and diversionary juvenile justice systems, and so forth, as I have posted (search the foundation name) on this blog earlier.

If AEC says it’s a great idea, then it must be. (???)…

So, here again at CYCP promoted by AISR at Brown Univ. in R.I. with acknowledged help from Lumina Foundation (in Indianapolis — coming up soon, below) we have (yet) another major, tax-exempt, privately controlled foundation. AEC (in Baltimore) signing up for its trademarks to drive more money (and life energies) into tax-exempt directions.  And what a pretty website — (referring to the CYC one below, but I decided to talk and show some on AEC (Foundation) also.

fine print, gray font explains what AEC foundation has been about since right after WWII (wealth made in UPS //communications field)

Another indication (???) Evidence2Success (and the CYC) must be a good idea if there are photos of exuberant children on the home page and every one else important is endorsing it (appeal to the crowd instinct).

How could anything showing such happy children have anything other than what its claiming to be in its heart — helping children, youth, and poor people? Or, as its slogan (see aecf.org and you’ll see in large letters on an orange background): “Building Better Futures for Children, Families and Communities

Annie E. Casey DOES post its audited financial statements (latest is for YE Dec. 2014 and 2015, independently audited by Deloitte), and charts of its various assets and % distributions over 10 years, but tactfully doesn’t post its Form 990 (EIN#) so you might actually look at the grantees.

Even a look at the investments on the audited financial statements shows, by relative quantity, they are much more than a grant-making entity.  They are a tax-exempt, privately controlled investor, and a lender, with a $90M line of credit from Bank of NY Mellon guaranteed by UPS stocks (see Notes to Financial Statements) for details, and in all years except 2009, despite their large amount of grants, at most points charitable giving was less than 10% (requirement for tax-exempt foundation I believe is probably around 5%).  In other words, they do less than some churchgoers on a fixed salary or other religious people might in the form of tithes (10%)…In exchange for the philanthropy (which comes at a cost to those invested in), is as these things go, reduced taxes on the remaining “noncharitable use assets.”  etc.

Federal excise taxes paid Year 2014 (tax return below) on over $2.9B of assets (MOST of which were non-charitable use assets producing some nice revenues in the hundreds of millions) was around $5Million.  A look at their latest posted financial statements (through Dec. 31, 2015 — which makes me wonder why, it now being APRIL 2017, I don’t see at the FoundationCenter.org search site, any Form990s for AECF for even Year 2015, when for Year 2016 is due, well, in a few days from now.

Excerpt from AEC FS (2014-2015 comparison) posted at their website. Notice the categories of assets and liabilities, and compare Charitable Use to Non-Charitable use amounts, as well as notice how their liabilities are relatively small. (not annotated this time!)

For comparison:

I just looked in detail (it took a while!), that is, scrolling, through first, the Form 990PF above, and second, through its grantees.  I shouldn’t have really been surprised, but still as, just how many institutions (public and private universities, nonprofits)  it paid off to promote, refine, develop, implement, and even support the “out-come-based study” of “Evidence2Success.”  So while it’s very nice of Annie E. Casey Foundation to post their financials, I did make a note that they are NOT posting on their program-promoting (and “we’re big, we give, and we care”) website the actual EIN# or a copy of the latest return, which show details (and also commit to which version of any tax return they stand by, if or when there may have been different versions).

People who read those tax returns would have the backdrop to the narratives and even some of the financial statements which ARE posted.  Form 990s also show relative sizes of each category of expending.  Form 990PFs like this also show specific stocks invested in (I say this after noticing: Bain Capital, Blackstone, Carlyle among others).  They give a general, based on reported detail of with whom the entity is engaged, and how much is paid to whom over time. Again, it also shows level of interest in reporting this in functional form.  For example, when the IRS form has a neatly lined table to report trustee, officer, and directors:  Names (and addresses), titles, hours/week worked, and salaries + benefits that looks like this (not including my annotations asking why it’s left blank):

Image1:AEC Fndtn FY2014 Form 990PF Pt VIII Detail: My annotations are making an important point (esp. when viewed with related annotated image showing “General Explanation” for the missing info on this part of the Form 990PF. CLICK HERE for full-size (or on the link in filename format describing this image; they’re the same link).

Image 3:AECF FY2014 990PF version of their own Directors, Trustees, Officers, Hrs/Wk Worked, AND salaries, in non-table format (with the highest paid one’s salary missing — but they give an alibi (CLICK for full-sized and do pls. read. Filename begins “31 AECF…”)

Now for my annotations on what this “double-dodge” by a $2B assets privately controlled (but BY WHOM, isn’t really forthcoming) foundation fixated on fixing the nation’s:  schools, social service systems, courts re: juveniles, treatment of minorities, treatment of FATHERS, treatment of everyone, basically.  It really is a double-dodge to avoid placing their only 40h/wk Board Member’s name, next to his salary (and other board members’) where it belongs on the Form 990PF!

“Image4” is the next page after the Annotated Image3 above. (Available also in the FY2014 Form 990PF return itself — table below, near the end of uploaded yr2014) this lists the Highest Paid Employees (and doe show Patrick McCarthy’s salary ($679K or so + benefits) and that he’s “CEO” as well as others with titles. Because the column format has been dismantled, who is VP or of WHAT program is hard to tell, as well as clouding what should be upfront, just how very well-paid these foundation employees are. I see a reference to Campaign for Baltimore; see what you can decipher. AGAIN — AECF had a choice to present it in legible format near the top of the return — where it belongs! But chose not to put it there. (no corresponding link for full-sized provided here)

In the Year 2014 (where’s year 2015 below??)

I also saw several grants to “Fund for Educational Excellence” and to one of its grantees, “Safe and Sound Baltimore” which I’ve already (before writing this part of the post) noticed below.  As well as a grant to Brown University for Providence Children and Youth Cabinet (which promotes Evidence2Success) !!

Total results: 3Search Again.

Annie E. Casey Foundation MD 2014 990PF 163 $2,991,829,324.00 52-1951681
Annie E. Casey Foundation MD 2013 990PF 160 $2,933,059,949.00 52-1951681
Annie E. Casey Foundation MD 2012 990PF 181 $2,666,068,266.00 52-1951681

When an entity’s total gross assets grow from $2.66B (as in “billion”) dollars to almost $2.99B (as in “billion”) dollars in two short years, that’s a $0.33B increase.  Pretty soon it will be $3 Billion and may be already.

Generally speaking, at this size, the increase is NOT coming from better paying jobs, or more contributions TO it (although I see that in 2014 “KnowledgeWorks Foundation in Cinncinatti OH” is listed as giving $187K on the Schedule B) , but from the profits on either holding, or selling, investments, or (usually) both.  Page 1 of any return starts to show the pattern.  The IRS form has numbered lines, and sections (Revenues / Expenses / Totals for each of those; and towards the bottom of Page 1, a little math is in order.  These are stated in different columns, obviously, and towards the bottom, one can see “charitable distributions” as well as ALL expenses.  As high as these are, they still for AEC in 2014 showed a profit (excess) of $74MILLION, meaning it was able to (see “Balance Sheet” section) almost double its holdings in cash — not that this is where most of its assets were being held…

So, by NOT referencing this or linking to it on “AECF.org” while such exists, and disarmingly showing their audited, accrual basis financial statements, implying openness, AECF is in effect re-asserting its right to NOT be so open, really, and make readers (who know enough to even look) go work for that information JUST a little harder, while it’s paying [off], nationwide, government departments, agencies, and both public AND private universities, to promote ITS (that is, AECF’s) programs (like “Evidence2Success”) — or those of its friends and colleagues…

It’s an important lesson to learn.  I think I may include those Evidence2Sucess grant excerpts (you’d be surprised!), but first want to show, by contrast, more from the AISR and CYC websites, as well as about this related (supporting) Lumina Foundation referenced on it.

The “pretty pictures of smiling children” I was referring to above.

“In Evidence2Success, teams of stakeholders — with community members as full partners {{“imagine that!!”}} — analyze high-quality local data and apply their respective experience and expertise as they identify needs of children in their communities to be prioritized for action. They then select appropriate programs that, through rigorous studies, are proven to be effective in addressing the priorities.

The assembling of teams is ALWAYS with a view to what (new and exciting) PROGRAMS can be applied.  Look for the ownership of the programs, and you’ll often find involvement of those convening (or sponsoring) the assemblies of stakeholders.  … In this one, notice it’s a public health (not criminal or law&order or even specifically education) perspective as the framework.  That’s throughout the system, including in family-court-connected organizations, or domestic violence prevention (etc.).  Somehow, it always ends up being in a public health perspective.  Perhaps that the US Department of HHS happens to be THE largest grant-making agency may have something to do with this?

Evidence2Success is powered by “the Children and Youth Cabinet (CYC),”** and is championed by leaders from the Providence Public School Department, the Department of Children, Youth and Families, the Rhode Island Department of Health and the City of Providence among others.*** Evidence2Success is central to achieving the CYC’s goals, mission and philosophy of supporting children from cradle to career. For this reason, Providence signed on to be the pilot site. The CYC began by focusing on the communities of Upper and Lower South Providence/Elmwood and West End.

**powered by (not to mention “championed”) I put the CYC in quotes because until it shows up as a funded “entity” it can’t power anything.  The power I already showed coming from the Rhode Island Community Foundation THROUGH Brown University/Annenberg Institute for School Reform ($50K for that year) FOR CYC would seem to indicate that its actual power may come, indirectly, from “the people” at least the people sponsoring the R.I. Community Foundation!  ***Somehow the “among others” doesn’t reference AISR at Brown, although if you want to contact CYC you have to go through them.

Incidentally, Annie E. Casey Foundation in 2014 was helping power the CYC too, or so their return says — $50.6K to Brown University Office of Sponsored Projects to support CYC, and (same year, separately) $314K to the same entity to support Evidence2Success.  Two annotated images and links to go with them:

1 AEC $50.6K to Brown for Providence CYC1

2 AEC $314K to Brown for Evidence2Success!!

1 –AECFndtn (recent, grants) to BrownUniv OfficSponsoredProjects – 50’6K (for PROVIDNCE CYCabinet) Screen Shot 2017-04-13 at 2.34PM2 –AEC Foundatn (Latest return) showing 314K to Brown U Office of Sposnored Projects to support Implementation of Evidence2Success in ProvidencRI (Screen Shot 2017Apr13 at 1.59PM)


Evidence2Success works by addressing outcomes as well as risk and protective factors. Outcomes are measures that indicate positive, healthy youth development. Risk factors are scientifically validated characteristics that increase the likelihood of negative outcomes. Protective factors shield children from risk. As a prevention framework, Evidence2Success helps communities identify the underlying predictors of the most widespread problems of children and youth, and address those predictors as early as possible, before problems become entrenched. The work happens at the community level, using a public health approach

Meanwhile, back at AISR (Brown), it talks about supporting the same Providence CYCabinet.  “Cabinets” at the state or other levels are great ways to cloud the money trail and specific accountability, while promoting “accountability” and community involvement.

What a mess in attempting to identify that which, apparently, is seeking NOT to be precisely identified, most specifically, AISR (but also, the CY Cabinet).  Catch this:

From AISR @ Brown on its project Providence CYC:

Over the past two years, AISR has provided planning, research, and communications support to the CYC.  The CYC and its director, Rebecca Boxx, are affiliated with and housed at AISR, and students from Brown’s Urban Education Policy program have served as research assistants and interns with the CYC. “

Unpaid or underpaid research assistants and/or interns?  “Do it for your life experience and as part of your urban education course requirements”??

This is a photo of the address (383 Benefit Street in Rhode Island) from victorianweb.org (see caption for credits and permissions).  This is where AISR, apparently, is at least in Rhode Island!

Hoppin House. 1855. 383 Benefit Street Date and original owner from Brown University plaque. Photograph and text by George P. Landow. [You may use this image without prior permission for any scholarly or educational purpose as long as you (1) credit the photographer and (2) link your document to this URL.(<==done!)] Last modified 13 May 2008.

Sign on the street reads AISR, at least behind some of the shrubbery.

The housing address (383 Benefit Street) seems to also be a historic American Building, Thomas F. Hoppin House (Library of Congress):

  • Notes-  Significance: This is one of the largest and most elegant houses built in Providence in the mid-nineteenth century, and was at that time, a center of artistic and social life in the city.-  Survey number: HABS RI-166-  Building/structure dates: after 1850 Initial Construction-  Building/structure dates: ca. 1980 Subsequent Work-  National Register of Historic Places NRIS Number: 73000072
  • “Historic American Buildings Survey, Creator, Alpheus C Morse, and Green Bretta Robinson. Thomas F. Hoppin House, 383 Benefit Street, Providence, Providence County, RI. Providence Providence County Rhode Island, 1933. Documentation Compiled After. Photograph. Retrieved from the Library of Congress, https://www.loc.gov/item/ri0209/. (Accessed April 12, 2017.)

and, at the bottom of page (after providing a link to CYC and some more PR on the project):

Partners and Funders:

Funded by Lumina Foundation and the Rhode Island Department of Health.

CYC partners with## approximately 70 organizations and 175 active individual members in Providence and Rhode Island. (and clicking through, ignoring the banners and promotions, to the organization’s footer):

##I get real tired of explaining this.  A program or initiative (which CYC certainly seems to be) is not a ‘partner’ to anything.  To ‘partner” one must be an entity — a business or government “person.”  Therefore where a program is being constantly referred to as a partner when it’s not, the ultimate purpose is to cloud, conceal, or cover who are the real partner/s, and that these same really may not need money, though they might be soliciting it  — or simply endorsement, cooperation with the labeling — for the cause.  They also may not need more volunteers, or staffing, but volunteering increases commitments, increases revenues, popularity, public awareness etc.

Lumina Foundation is an independent, private foundation in Indianapolis that is committed to making opportunities for learning beyond high school available to all. We envision a system that is easy to navigate, delivers fair results, and meets the nation’s need for talent through a broad range of credentials. Our goal is to prepare people for informed citizenship and for success in a global economy.

There is (at the same street address) an “assets $1B+” foundation by this name which is NOT just “Lumina Foundation” but as you see below:

Total results: 3Search Again.

Lumina Foundation for Education IN 2015 990PF 171 $1,193,318,361.00 35-1813228
Lumina Foundation for Education IN 2014 990PF 201 $1,265,931,444.00 35-1813228
Lumina Foundation for Education IN 2013 990PF 200 $1,258,939,683.00 35-1813228

This is its 2001return (FY=Calendar Year) as early as I could find on this database.

(NOTE:  I look at tax returns first where possible.  I had already written (below this) about the evidence on them of where its money came from, initially $370,000,000 at least.  However on the “About us” website, the organization explains it did indeed start only in 2000 and where the funds came from — after first emphasizing how “flush” it is with assets (over $1B // among top 100 foundations in the US, etc.) From their FAQs page:

When was Lumina Foundation founded? Lumina was established in August of 2000.

(which probably explains why the earliest tax return I could find was for 2001!).

How was Lumina Foundation founded? Lumina is a conversion foundation created in 2000 as USA Group, Inc., the nation’s largest private guarantor and administrator of education loans, sold most of its operating assets to the Student Loan Marketing Association, Inc. (Sallie Mae). Proceeds from the sale established the USA Group Foundation with an endowment of $770 million. Since 2000, the Foundation has been dedicated to ensuring that more students, especially underrepresented populations (also termed 21st century students by the Foundation), access and succeed in attaining a high-quality postsecondary credential. The Foundation was renamed “Lumina Foundation for Education” in February of 2001. Lumina Foundation was re-branded solely as “Lumina Foundation” in 2011. Today there are no connections to the student loan industry or to any other interest group or sector.

Really?  I just looked through its tax returns….

Does Lumina Foundation give scholarships? No, Lumina does not give scholarships. Lumina supports its mission in a very targeted way: all of the Foundation’s resources are focused on system-level change that can lead to large-scale impact

With its partners, both grantees and contractors, Lumina strives to meet workforce demands and close gaps in attainment for groups not historically well-served by higher education. For more information on Lumina’s grant-making process, click here.

It’s clear throughout this entity doesn’t need any contributions, and isn’t receiving them:  From the start, plenty is made (and distributions are consistently less than) as any “Page 1, Part I summary” with its various columns and labeled rows for categories of revenues, expenses and (at the bottom) balances will show.  Money comes from:  Interest on savings; dividends, and net gain (or loss) from sale of securities, i.e., its investments.  This year ended below $1B (for the first time) and you can see on the image it sold plenty on Line 6a&b.  Later in the return, it’s detailed where at least some of this comes from, and that the $370,000,000 in a certain category at the beginning of the year was in fact, investments from — well, take a look!

How this relates to my topic here — yesterday’s (4/11/2017 “Tale of Two LLCs”) post touches on this near the top — a major funder of some of the “School Reform” entities, at least in the NorthEast (incl. at Brown University in Rhode Island) came from the Nellie Mae Foundation, which historically was involved (and its leadership, some, still involved) with the secondary market for federally guaranteed student loans — that is, “SLM Holdings” (“Sallie Mae”), formerly? Student Loan Marketing Association.  Nellie Mae, Inc. (a nonprofit) which merged into “Nellie Mae Education Fund” in 1998) was involved in this secondary market, sold major holdings to Sallie Mae, and kept some of its leadership (of Nellie Mae Education Foundation) also involved in the Sallie Mae operations.  (Lawrence W. O’Toole, John F. (“Jack”) Remondi who (I see from the Wiki) is now on a spin-off entity from Sallie Mae, “Navient.”

Nellie Mae, Inc. (founded in 1980s, merged into N.M. Education Foundation in 1998) Articles of Incorporation (10pp pdf):1985 Articles of Org + Bylaws NELLIE MAE Inc (BraintreeMA) (merged into NellieMaeEducFndtn in July 1998) 10pp printed April2017 (Lawrence O’Toole’s name and the other incorporators also shown).  Other entities by Mr. O’Toole in Rhode Island (recent search results) include Education Loan Services, Inc. (dissolved in 1996) and “Debt Recovery Services, Inc.” (INc. 1991, Dissolved April 30, 1996 (State stamped) — next two images/one link:

ELS being dissolved in 1996 (Lawr. O’Toole involved)

Debt Recovery Services being dissolved in 1996 (Lawr. O’Toole involved

@MassCorpSearch-Lawrence O’Toole Entity search ~>1991 Debt Recovery Srvices (Articles of Org = 200Kshares Common Stock) later dissolved

Link to Image below: Nellie Mae INC (L W O’Toole John F Remondi Diane Saunders) merged into NellieMaeEducFndtn July 1 1998 (#04289932) CorpDiv FaceSheet | Screen Shot 2017-04-11 at 5.56PM  [The filename is missing one digit — it’s 042899932.  That’s an EIN#!  but not the current “Nellie Mae Education Foundation, Inc.” EIN# which as we can see is different:]

Nellie Mae Education Foundation MA 2015 990 63 $506,350,110.00 04-2755323

Showing that Nellie Mae Inc (articles of Org 1985) merged into the N.M. Educ. Fndtn also a nonprofit giving EIN# also

Link to Image: NYT May 27 1999 (AP) tells how SallieMae ~ privatized 1997 — about to buy privately held Nellie Mae (student loan assets valued 2’6B!) for 320M (Screen Shot 2017Apr11 at 7.28PM

That’d be nice IF it were known who the heck AISR actually was (quote from link in image caption below).

In 2012, key leaders in Providence signed onto a promising initiative to bolster the well-being of the city’s children and youth: they adopted Evidence2Success, a prevention-based framework designed by the Annie E. Casey Foundation to help public systems work together more effectively to improve the well-being of children in disadvantaged communities. This initiative is an exciting opportunity for Rhode Island to stem the demand for high cost services such as special education, residential placements and incarceration and redirect funding into cost-effective prevention prog

rams for greater return on investment.


CYC (found at AISR Brown University) Notice “Cradle to Career” is the goal.

MORE COULD (and should) BE SAID ON THESE TOPICS, but at 11,000 words, and complex enough so far, I believe enough said for this post. I see where follow-up will be needed. Near the top of the post, I also show a correlated post on “Freedom of the Press on the Auction Block” referencing the media empires behind some of all this frenetic foundation activity.

I am curious to look up the “Challenge Grantees” that, so far, might be identified, whether or not I ever get to the bottom of the AISR situation.

(Learning is a continuous growth curve, for sure!)
//LGH April 21, 2017 on a Friday evening.

Written by Let's Get Honest

April 21, 2017 at 8:43 pm

One Response

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  1. daveyone1

    April 22, 2017 at 1:52 pm

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Journalist specialising in the Horn of Africa and Southern Africa

Let's Get Honest! Blog: Absolutely Uncommon Analysis of Family & Conciliation Courts' Operations, Practices, & History

'A Different Kind of Attention Develops Sound Judgment' | 'Suppose I'm Right Here?...' (posted 3/23 & 3/5/2014). Over 680 posts, Public-Interest Investigative Blogging On These Matters Since 2009.

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