Teach For America • Charlotte 2015 Vision

1. Teach For America • Charlotte 2015 Vision December 2010

2. An achievement gap exists in Charlotte • 52% of economically disadvantaged students graduate in four years • 51% of African-American and 51% of economically disadvantaged students are proficient on end-of-course tests • 88% of white students and 85% of non-economically disadvantaged students are proficient on end-of-course tests • “Here in Charlotte, all too often it is a tale of two educational systems.” • -Dr. Peter Gorman, Superintendent, CMS

3. To close this gap, we must attract talented leaders to Charlotte Teach For America is the nation’s premiere recruiter of talent for education reform. We recruit, select, and train our nation’s best leaders and build a pipeline of talent that will sustain Charlotte’s education reform movement. Recruit leaders to Teach in Charlotte Provide excellent teachers to high-poverty schools Channel leadership of our alumni Build an Enduring Reform Movement 300 corps members reaching 18,600 students Corps members achieve at 75th percentile 1,000 alumni 700 in education Education reform is cause of choice in Charlotte • “We believe that Charlotte-Mecklenburg Schools stands today at an unprecedented convergence of national and local opportunities to transform public education.” • -Dr. Peter Gorman, Superintendent, CMS

4. Our corps members have an immediate impact on the achievement gap At schools like Philip O. Berry, where we have placed a steady stream of teachers for six years, proficiency scores have doubled. • In the 2009-10 school year, at Philip O. Berry: • 17 corps members • 2 corps members in English I, 2 in English II, and 2 in Algebra I • 10th Grade writing scores were third in the district Percent Proficient Today in Charlotte, 230 corps members impact 15,000 students in 60 high-poverty schools.

5. Research demonstrates the impact of our teachers Research indicates that the impact of a Teach For America corps member is greater than the impact of other education interventions. Mathematica Policy Research: “Disadvantaged secondary students would be better off with TFA teachers, especially in math and science, than with fully licensed in-field teachers with three or more years of experience.” University of North Carolina: At every grade level and subject studied, Teach For America corps members did as well as or better than the traditionally prepared UNC graduates. Effect Size TFA “represents an opportunity for UNC and North Carolina to learn and improve.” - Erskine Bowles 1. Mathematica Policy Research, 2004 2. Urban Institute/CALDER, 2008-09 3. The University of North Carolina at Chapel Hill / Carolina Institute for Public Policy, 2010 4. Urban Institute, 2006; Urban Institute, 2008. 5. American Educational Research Journal 37 (2000): 123-51; Urban Institute/CALDER, 2007 6. Journal of Labor Economics 25 (2007): 95-135.; Improving Student Achievement: What State NAEP Scores Tell Us; RAND Corporation, 2000.

6. We can build a thriving education reform community in Charlotte We can attract 750 new leaders to Charlotte by 2015 and build a community of more than 1,200 corps members and alumni effecting systemic change in Charlotte. • 1,000 alumni • 700 in Education • 70 school or district leaders • 46% of core teachers are corps members or alumni 750 leaders over 5 years • 300 Corps Members • 18,600 students • 27% of low-income students • 20% of core teachers $15 million growth investment $4m Investment from Spangler Foundation *assumes 51% of alumni remain (Atlanta) and 1.8% of out-of-region alumni move to Charlotte. **assumes 63% remain in education.

7. Our alumni remain in education, leading long-term local reform efforts Today, 193 Teach For America alumni live in Charlotte, including the leaders of KIPP Academy Charlotte, New Leaders for New Schools, and Teach For America. 95 classroom teachers 6 principals / assistant principals 9 training to become principals 4 in district administration In Charlotte, 70% of Teach For America alumni are working full time in education.

8. Realizing our Vision in Charlotte To realize our vision of growing to scale in Charlotte, we must raise local support of $8 million annually by 2015.

9. Realizing our Vision in Charlotte

10. We can build a legacy of excellence in public education We have an opportunity to alter the course of education reform in Charlotte and our country. Charlotte Impact We can recruit and train 750 of our nation’s most capable leaders to close the achievement gap during their two-year commitment. We can build an education reform community of more than 1,000 Teach For America alumni in Charlotte. National Impact Charlotte is uniquely positioned—given the strength of our district leadership, the pipeline of talent attracted to our city, and the community’s commitment to educational excellence—to demonstrate to our country that a large, urban system can successfully provide all students with an excellent education. “The single most important factor determining whether students succeed in school is not the color of their skin or their ZIP code or even their parents' income—it is the quality of their teacher. “ -How to Fix Our Schools: A Manifesto by Jeol Klein, Michelle Rhee, and Dr. Peter Gorman

11. Appendix A: Teacher Efficacy

12. Appendix A: Increasing efficacy – National Investments Evaluating and Measuring Student Progress Effectively • Providing corps members with access to strong assessments • Providing good benchmarks showing the growth of students in 75th percentile classrooms on the same assessments To meet our ambitious teacher efficacy goals by 2015, we are investing in the following priority areas. Better Understanding and Predicting Teacher Success Strengthening Direct Engagement with Corps Members • Researching the drivers of teacher improvement and impact • Refining our Teaching As Leadership rubric for teacher development • Improving predictive selection model and assessment tools • Improving one-on-one coaching of corps members • Using technology to improve methods for delivering training and support • Enhancing content- and grade-level-specific planning and instructional tools We are aiming for our corps members to achieve as much student growth, on average, as 75th percentile teachers, for the sake of their students and of the lessons they learn to inform a lifetime of educational leadership and advocacy. 12

13. Appendix A: Increasing efficacy – Zoned Program Team • A dedicated team focused on three schools within the same Learning Community in Charlotte. • Includes a Zone Director, 3 Zone Program Directors, and 1 Zone Associate • responsible for achievement of corps members at these schools and the transformation of the school. • Program Directors have reduced PD/CM ratios (15:1) and work out of the school(s) to ensure more concentrated time with corps members and ability to influence professional development at school level. • CURRENT CHALLENGES • Insufficient time to coach corps members to effect rapid change • Inconsistent messaging around tools and assessments impedes corps members’ effectiveness • Inefficient systems for sharing best practices across schools • Inability to build strong relationships with district/school personnel • Inconsistent impact in effecting systemic, school-wide change Pilot Evaluation: student achievement of 45 corps members in three schools in December (half way through year). Projected Outcome: 50% of 1st years and 80% of 2nd years have TAL classrooms by mid-year, significantly higher than current rates. We are still determining other school-wide measures, but anticipate we would also see improved collaboration, culture and overall impact on student body with this model. 13

14. Appendix A: Increasing efficacy – School Buy-in for PD Role • Provide schools with the opportunity to decrease CM / PD ratio at their school by purchasing a PD. The PD is school based and reports to Teach For America and the principal or member of the school’s leadership team. • Scenario 1: School X is slated to have 30 total corps members and thus “entitled” to 1 full PD. School X can pay salary and benefits of a second PD, decreasing CM / PD ratio to 15:1 • Scenario 2: School Y is slated to have 15 corps members. The school is entitled to “1/2 a PD.” The school can pay half the salary of a PD, decreasing CM / PD ratio to 15:1. • CURRENT CHALLENGES • High corps member / program director ratio (30:1) • Insufficient funding to decrease corps member / program director ratio • Placement schools do not view program directors as a valued resource • Limited partnership and communication between placement schools and our program team Pilot Evaluation: student achievement of corps members in schools with decreased CM / PD ratios. Projected Outcome: 50% of 1st years and 80% of 2nd years have TAL classrooms by mid-year, significantly higher than current rates. We are still determining other school-wide measures, but would survey principals on efficacy of Program Director relationship and value to school. 14

15. Appendix B: Alumni Leadership

16. Appendix B: Alumni Leadership – School Leaders By 2015, we will have 40 alumni serving as principals, assistant principals, or instructional leaders in CMS. • To reach these goals we will: • Continue to partner with three leadership training programs: • New Leaders for New Schools • Columbia Summer Principals Academy • CMS Leaders for Tomorrow • Work with CMS to source talent from other regions for open positions • Facilitate alumni serving in leadership roles within schools • Develop partnerships with the charter community in Charlotte

17. Appendix B: Alumni Leadership – District Leaders By 2015, we will have 30 alumni working in CMS central administration. • To reach these goals we will: • Continue to place high-quality corps members in the Aspiring Leaders Program • Increase our ability to source talent within Charlotte and from other regions to fill high-impact roles

18. Appendix B: Alumni Leadership – Teacher Leaders By 2015, we will have 450 alumni teaching in high-poverty schools in Charlotte. In addition to growing the overall number of alumni teachers, we aim to better understand the effectiveness of our alumni who remain in the classroom. • To reach these goals we will: • Support corps members completing their second year to actively choose to remain in the classroom • Develop partnerships within the region to support their continued professional growth and leadership within schools • Partner with the district to facilitate alumni in teacher leader roles within schools

19. Appendix C: Costs and Investments

20. In FY2011, We Will Invest Nearly $214M in Recruiting and Training Future Corps Members and Supporting Our Largest-Ever Corps and Alumni Base Teach For America’s 2011 Expenses 2011 Activities and Goals $213,919,000 • Recruit on over 350 campuses, select and matriculate best candidates from over 40,000 applicants, and develop national partnerships, marketing, and outreach strategies Recruitment and Selection $30,919,000 Institute and Teacher Prep • Train 5,300 incoming corps members at 8 summer institutes and provide local inductions and orientations $36,400,000 • Support 8,200 teachers reaching more than 500,000 students with 250 program directors and increasingly robust online tools, resources, and measurement/assessment systems, all grounded in developing transformational teachers who are leaders in their classrooms Ongoing Teacher Professional Development $85,847,000 • Increase the leadership and engagement of more than 20,000 alumni as forces for change $18,867,000 Alumni Program $20,288,000 Development • Secure the short term and long term funds necessary to operate our program and sustain and grow our impact • Deliver efficient, effective centralized support functions to maximize overall organizational impact $21,597,000 National Support

21. This Budget Represents a 19% Increase Over 2010, Driven Predominantly by Corps Growth and Inflation Investments in Student Achievement, Alumni Leadership and Support Services are being offset by efficiencies gained in Recruiting and Training. Operating Expenses $ Millions Enduring American Institution$0.5 Alumni Leadership $0.7 Scale & Diversity ($0.2) Student Achievement $1.4 Growth by Priority

22. To Fund Our 2011 Operations and Grow our Reserves, We Will Raise $246 Million from a Diversified Funding Base Teach For America’s 2011 Projected Revenue by Stream* Millions of Dollars • 37% of our revenue will come from public sources, including $46 million from the states and districts where we place corps members • Of our $156 million projected private funding, over 85% will be raised by our 35 established and 4 newly-opened regions • We will raise the remaining $23 million of national private funding from a diversified base of corporate, foundation, and individual donors Corporate State and District Foundation Private ED and AmeriCorps $10 Individual/Other i3 Fund * All development projections are preliminary. While the overall goal will not change, breakouts of private vs. public money and within the private streams could change as region and team goals are finalized

23. National Subsidy to Regions Will Increase Over Time 19% 25% 60% As we grow fundraising more quickly than costs – and in particular as we grow national development faster than regional development – we have been strengthening our reserve position so that we can increase the automatic subsidy to regions. Expenses Regional Development Non-Regional Development

24. To Gauge Financial Efficiency, We Monitor the Cumulative per Corps Member Leadership Investment and Annual per Alumnus Investment Cumulative per Corps Metric Expense Area Recruitment and Selection Cumulative per CM Leadership Investment Costs of Incoming Corps Members Number of Incoming Corps Members Investment per Incoming Corps Member = Institute and Teacher Prep Investment per Incoming Corps Member + Costs of Teaching Corps Members Ongoing Teacher Professional Development Number of Teaching Corps Members Investment per Teaching Corps Member 2 x [Investment per Teaching Corps Member] = Investment per Alumnus Costs of Alumni Number of Alumni Alumni Program = Development Supporting Costs Reallocated Proportionally Across Above Categories National Support

25. From 2006-2009 per Corps Member and Alumnus Leadership Investment Grew as We Increased Quality and Built a More Sustainable Infrastructure Cumulative per Corps Member Leadership Investment Annual per Alumnus Investment CAGR CAGR 18% 47% CAGR Total Expenses 41% Teaching Corps Members 20%

26. Detailed 2006-2009 Investments • Maintained a highly efficient ratio of 7 cents per dollar raised while increasing development staff to cultivate a larger funding base • Built out org-wide alumni initiative • Began building CRM system • Result: The concentration of alumni in office grew by 50%. By the end of 2009, 441 alumni were school leaders and 27 held elected office, vs. 140 and 3 in 2005 • Invested to scale in early years; offset investments with efficiencies later in growth plan • Result: Increased applicants 18% annually, from 19,000 in 2006 to 35,200 in 2009, while increasing corps diversity Between 2006 and 2009 we invested in improving corps member and alumni effectiveness while growing our corps by 18% annually, and took steps to ensure our organizational health at increased scale. These investments set the stage for efficiencies as we scale from 2010-2015. Organizational budget Millions of dollars • Opened 5 new summer institutes • Built out design and execution teams • Redesigned curriculum • Result: In addition to increasing in-year gains, we redesigned the curriculum and increased the emphasis on diversity • Built out finance, HA, marketing, and technology teams; invested in technology infrastructure; added a Diversity team • Result: Achieved audit readiness; increased staff retention from 66% in FY05 to 80% in FY09 • Decreased ratio of CMs to PDs from 50:1 to 34:1 • Added new regional staff positions and built out national teacher support and development team • Invested in TFANet • Result: Increased student gains : 44% of corps member attained significant gains in 2009 vs. 34% in 2005 1 2 1 26 • 3% Annual inflation • Based on corps growth increases of 210% (incoming), 250% (teaching), and 230% (alumni)

27. 2009-2011 Cumulative per CM Leadership Investment Steadied at 2% as We Realized Efficiencies Beginning in 2010, we realized $2-3 million annual savings in conferences, communications, shipping, and other areas as well as a nearly 20% reduction in cost per recruit. We anticipate continued efficiencies in 2011 as we automate back-office services. Cost per Corps Member

28. Teach For America’s Cumulative Unit Cost is Substantially Less Than the Peace Corps Total Cost Per Participant Costs are directly comparable. Peace Corps costs exclude direct and indirect compensation to volunteers * 2011 data. Using revised cost per corps member method which excludes costs related to alumni, and looks at the three-year costs of recruiting, training and supporting a corps member **Based on 2011 Peace Corps Congressional Budget Justification; http://www.peacecorps.gov/index.cfm?shell=pchq.policies.docs and other information on http://www.peacecorps.gov . These sources reveal $336 million in 2009 expenses and 7,332 active CMs. Additionally, the Peace Corps has several expenses that are direct or indirect forms of compensation to their volunteers and therefore are not comparable to TFA’s expenses, which are excluded from this comparison. These include $4,785 in healthcare and related costs and $14,422 in living allowances and stipends per participant.

29. Our Recruiting and Training Costs are Competitive vs. Similar Activities In Other Organizations Cost to recruit each participant Cost to train each participant 2 3 1 4 1 2 3 • 2011 recruitment and admission direct costs per Incoming participant; does not include overhead • 2008 cost per recruit for the Army from usmilitary.about.com • Estimate • 2011 costs for 5-week summer institute (including room and board as well as design and execution costs related to the institutes) • 2009 costs for 6-week language summer school. Includes tuition, room, & board • 2009 costs for 4-week summer immersion program to prepare students for careers in business. Includes tuition, room, board, & books • Tuition, Room, and Board for ’08-’09 School Year 29

30. Our Fundraising and Administrative Costs Remain at or Below National Nonprofit Averages We have received our eighth consecutive four-star rating for efficiency by Charity Navigator. Fundraising Costs/$ Raised % of Total Costs that are Administrative 30 Source: CharityNavigator,org, as of October 2010

31. For the Next Four Years, We Are Planning for 1% Annual Investments in Quality While We Continue to Seek Efficiencies We will continue investing in program effectiveness, but we also intend to reduce costs through innovation, technology investments, and scale. Cost per Corps Member

32. Our 2011 Budget Includes Both Direct Regional and Centralized National Expenses, Most of Which Are Allocated to Regions To increase quality and efficiency, Teach For America centralizes corps member recruitment, selection, and training, along with other centrally managed program and support activities. These national program and support expenses are allocated to regions on a per corps member and per local alumni basis. National development and some alumni expenses are not allocated. National expenses include centrally managed program costs (recruitment, selection, training and development, alumni) and national support services (human assets, finance, marketing, technology) Two types of national expenses are not allocated to regions: expenses supporting alumni who do not live in a region, and expenses incurred by the national development teams Direct regional expenses include salaries and program costs incurred locally, as well as local development costs

33. FY11 Planned Investments by Priority Area Scale & Diversity Student Achievement Alumni Leadership • Greater scale achieved by both Recruitment and Admissions teams • Both teams implementing greater use of digital information in lieu of paper materials • Admissions team reducing shipping by utilizing electronic delivery • Admissions team reducing travel requirements needed for selection process • Regions strengthening capability in placement through increasing District Strategy to at least one dedicated person on average per region • Regions investing in more capacity in Teaching and Learning coaches for Corps Members • Investments offset by • No need to open a new Institute. Prior year included start up costs not needed in FY11 • Efficiencies in Institute food and lodging contracts through improved negotiations • Regions finding travel efficiencies by sharing best practices for Inductions and Orientation events • Continued build-out of the regional alumni affairs function through increasing regional team alumni headcount • Investments in contact management system to help track alumni interactions like volunteer activities and job coaching (originally scoped to roll in late FY2010, but rescoped to occur in FY2011 and include greater functionality) ($0.2M) $1.4M $0.7M

34. FY11 Planned Investments by Priority Area Enduring American Institution Administration & Finance Technology Fundraising • Finance decreasing due to reduced need for line of credit interest expense to support reserve levels • Finance beginning to experience economies of scale as expected, no longer needing to grow at the rate of the corps • More creative use of space in the National office to continue to delay the need for moving to a potential new space in Manhattan • Small investment made to increase capacity and set ourselves up to be able to achieve our aggressive development targets • Scaling of our technology development staff to deliver the heavy investment in new systems in the FY11 tech capital investment plan • Continuing investment in integrated corporate systems to automate and streamline key functions within Human Assets, Admin and Finance, resulting in enhanced compliance and future efficiency gains ($0.25M) $0.26M $0.54M

35. FY11 Planned Investments by Priority Area Enduring American Institution Marketing Human Assets President’s Fund • Leveraging previous investments in TFA.net website to drive greater engagement across all members of the TFA community (corps member, staff, and alumni) • Slower growth in the staff for Human Assets due to efficiencies gained by deployment of new Corporate systems integrating several “homegrown” systems • Continuing the practice of having a mid-year investment fund at the President’s to facilitate mid-year ideas for improvement ($0.15M) ($0.18M) $0.28M