Department of the Treasury Internal Revenue Service
Public Charity Status and Public Support
Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.
Attach to Form 990 or Form 990-EZ. See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
CITY YEAR INC
Employer identification number
22-2882549
Part I
Reason for Public Charity Status
(All organizations must complete this part.) See instructions
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses
acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)
10
11
e
By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).
f
If the organization received a written determination from the IRS that it is a Type I, Type II or Type III supporting organization, check this box
..................................................
g
Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons?
(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the the supported organization?
................
11g(i)
(ii)
a family member of a person described in (i) above?
......................
11g(ii)
(iii)
a 35% controlled entity of a person described in (i) or (ii) above?
................
11g(iii)
h
Provide the following information about the supported organization(s).
(i) Name of supported organization
(ii) EIN
(iii) Type of organization (described on lines 1- 9 above or IRC section (see instructions))
(iv) Is the organization in col. (i) listed in your governing document?
(v) Did you notify the organization in col. (i) of your support?
(vi) Is the organization in col. (i) organized in the U.S.?
(vii) Amount of support?
Yes
No
Yes
No
Yes
No
Total
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 2
Part II
Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the
organization failed to qualify under Part III. If the organization fails to
qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
47,114,251
59,675,420
63,515,866
64,776,312
83,788,931
318,870,780
2
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3
The value of services or facilities furnished by a governmental unit to the organization without charge..
4
Total. Add lines 1 through 3..
47,114,251
59,675,420
63,515,866
64,776,312
83,788,931
318,870,780
5
The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included
on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
3,995,850
6
Public Support. Subtract line 5 from line 4.
314,874,930
Section B. Total Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
7
Amounts from line 4..
47,114,251
59,675,420
63,515,866
64,776,312
83,788,931
318,870,780
8
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
927,178
231,468
132,696
158,122
206,260
1,655,724
9
Net income from unrelated business activities, whether or not the business is regularly carried on..
10
Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..
792,254
623,411
1,415,665
11
Total support (Add lines 7 through 10).
321,942,169
12
Gross receipts from related activities, etc. (See instructions.)
..................
12
13
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here..........................................
Section C. Computation of Public Support Percentage
14
Public Support Percentage for 2010 (line 6 column (f) divided by line 11 column (f))
.........
14
97.805 %
15
Public Support Percentage for 2009 Schedule A, Part II, line 14
...............
15
97.410 %
16a
33 1/3% support test—2010.
If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization
......................
b
33 1/3% support test—2009.
If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization
.....................
17a
10%-facts-and-circumstances test—2010.
If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization
..................................................
b
10%-facts-and-circumstances test—2009.
If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported organization
..............................................
18
Private Foundation
If the organization did not check a box on line 13, 16a, 16b, 17a or 17b, check this box and see
instructions
...................................................
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 3
Part III
Support Schedule for Organizations Described in IRC 509(a)(2) (Complete only if you checked the box on line 9 of Part I or if the organization
failed to qualify under Part II. If the organization fails to qualify under
the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2
Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3
Gross receipts from activities that are not an unrelated trade or business under section 513..
4
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5
The value of services or facilities furnished by a governmental unit to the organization without charge..
6
Total. Add lines 1 through 5.
7a
Amounts included on lines 1, 2, and 3 received from disqualified persons...
b
Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c
Add lines 7a and 7b..
8
Public Support (Subtract line 7c from line 6.)
Section B. Total Support
Calendar year (or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
9
Amounts from line 6...
10a
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b
Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c
Add lines 10a and 10b.
11
Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12
Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
13
Total support (Add lines 9, 10c, 11 and 12.).
14
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.............................................
Section C. Computation of Public Support Percentage
15
Public Support Percentage for 2010 (line 8 column (f) divided by line 13 column (f))
.........
15
16
Public support percentage from 2009 Schedule A, Part III, line 15
...............
16
Section D. Computation of Investment Income Percentage
17
Investment income percentage for 2010 (line 10c column (f) divided by line 13 column (f))
......
17
18
Investment income percentage from 2009 Schedule A, Part III, line 17
.............
18
19a
33 1/3% support tests—2010.
If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
..........
b
33 1/3% support tests—2009.
If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
....
20
Private Foundation
If the organization did not check a box on line 14, 19a or 19b, check this box and see instructions
.....
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 4
Part IV
Supplemental Information.
Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
Explanation
Schedule A (Form 990 or 990-EZ) 2010
Additional Data
Software ID:
Software Version:
-
TIN:
SCHEDULE O (Form 990 or 990-EZ)
Department of the Treasury Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ
Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
CITY YEAR INC
Employer identification number
22-2882549
Identifier
Return Reference
Explanation
FORM 990, PART III
PROGRAM SERVICE ACCOMPLISHMENTS 4A & 4B
4A - IN-SCHOOL SERVICE (CONTINUED): IN EACH OF CITY YEAR'S 157 PARTNER SCHOOLS, THE TEAM PROVIDES ACADEMIC SUPPORT, ATTENDANCE MONITORING AND INCENTIVES, POSITIVE BEHAVIOR SUPPORT, AFTER-SCHOOL PROGRAMMING AND EVENTS (SUCH AS ASSEMBLIES AND CELEBRATIONS) THAT IMPROVE THE OVERALL SCHOOL ENVIRONMENT. THE SERVICE MODEL HELPS THE CORPS MEMBERS HAVE AN IMPACT EVEN BEYOND THE 17,948 STUDENTS REACHED DIRECTLY THROUGH ONE-ON-ONE AND SMALL GROUP INSTRUCTION. CORPS MEMBERS CHANGE THE ENVIRONMENT OF A SCHOOL BY IMMEDIATELY CHANGING THE RATIO OF STUDENTS TO RESPONSIBLE, CARING ADULTS. IN ADDITION TO THE IN-SCHOOL SERVICES, 11,744 STUDENTS WERE PROVIDED WITH AFTER-SCHOOL AND SCHOOL VACATION PROGRAMS. 4B - YOUTH CIVIC LEADERSHIP (CONTINUED): CITY YEAR WAS FOUNDED ON THE BELIEF THAT A YEAR OF NATIONAL SERVICE COULD SERVE AS A CIVIC RITE OF PASSAGE-A UNIQUELY TRANSFORMATIONAL LIFE EXPERIENCE THAT, WHILE HELPING TO TRANSFORM COMMUNITIES IN NEED, COULD BEND THE TRAJECTORY OF AN IDEALISTIC YOUNG PERSON'S LIFE TOWARDS A LIFETIME OF ACTIVE CITIZENSHIP AND CIVIC LEADERSHIP. THESE PRINCIPLES GUIDE THE "IDEALIST'S JOURNEY," A FULL CURRICULUM THAT ALL CORPS MEMBERS EXPERIENCE AS PART OF THEIR OWN DEVELOPMENT AS LEADERS.
FORM 990 REVIEW PROCESS
FORM 990, PART VI, SECTION B, LINE 11B
THE TAX RETURN INFORMATION IS GATHERED BY THE FINANCE OFFICE AND USED TO POPULATE THE FORM 990, IN CONJUNCTION WITH KPMG, LLP, INDEPENDENT TAX CONSULTANT. ONCE COMPLETED, THE DRAFT FORM IS FORWARDED TO THE AUDIT COMMITTEE OF THE BOARD OF TRUSTEES IN ADVANCE OF A SPECIFIED MEETING. AFTER THE AUDIT COMMITTEE MEMBERS COMPLETE THEIR REVIEW AND APPROVAL OF THE FORM, IT IS SENT TO THE ENTIRE GOVERNING COMMITTEE FOR THEIR REVIEW AND COMMENT PRIOR TO THE FILING OF THE FORM.
CONFLICT OF INTEREST POLICY
FORM 990, PART VI, SECTION B, LINE 12C
ALL TRUSTEES SHALL DISCLOSE TO THE BOARD ANY POSSIBLE CONFLICT OF INTEREST AT THE EARLIEST PRACTICABLE TIME. NO TRUSTEE SHALL VOTE ON ANY MATTER UNDER CONSIDERATION AT A BOARD OF COMMITTEE MEETING IN WHICH SUCH TRUSTEE HAS A CONFLICT OF INTEREST. THE MINUTES OF SUCH MEETING SHALL REFLECT THAT A DISCLOSURE WAS MADE AND A TRUSTEE WHO IS UNCERTAIN WHETHER A CONFLICT OF INTEREST MAY EXIST IN ANY MATTER MAY REQUEST THE BOARD OR COMMITTEE TO RESOLVE THE QUESTIONS. ANNUALLY, TRUSTEES ARE REQUIRED TO SIGN CONFLICT OF INTEREST STATEMENTS ASSURING THAT THEY HAVE NO CONFLICT OF INTEREST.
COMPENSATION POLICY
FORM 990, PART VI, SECTION B, LINE 15B
CITY YEAR STRIVES TO BE THE EMPLOYER OF CHOICE FOR HIGHLY TALENTED PROFESSIONALS SEEKING A POSITION WITH MISSION-DRIVEN, ENTREPRENEURIAL NON-PROFITS. OUR GOAL IS TO ATTRACT, DEVELOP AND RETAIN HIGH-PERFORMING TALENT FROM DIVERSE BACKGROUNDS AND INDUSTRY SECTORS. CITY YEAR REWARDS EMPLOYEES FOR THEIR INDIVIDUAL JOB PERFORMANCE AND CONTRIBUTIONS TO THE ORGANIZATION, AND CULTIVATES AND PROMOTES AN INCLUSIVE WORK ENVIRONMENT. CITY YEAR TARGETS COMPENSATION ABOVE THE MARKET AVERAGE TO REFLECT CITY YEAR'S GREATER EMPHASIS ON PERFORMANCE, LEADERSHIP AND ENTREPRENEURSHIP, AND TO ENABLE CITY YEAR TO ATTRACT AND RETAIN HIGH-PERFORMING TALENT FROM DIVERSE BACKGROUNDS AND INDUSTRY SECTORS. CITY YEAR COMPARES ITSELF TO BOTH NON-PROFIT AND PRIVATE SECTOR ORGANIZATIONS OF SIMILAR SIZE. IN ADDITION TO SIZE, CONSIDERATION IS GIVEN TO OTHER ORGANIZATIONS' STRUCTURES, AS WELL AS TO ANYTHING ABOUT A PARTICULAR POSITION THAT MAY BE UNIQUE TO CITY YEAR. AS AN EXAMPLE, IN BENCHMARKING THE EXECUTIVE DIRECTOR POSITION, CITY YEAR DISTINGUISHES BETWEEN ORGANIZATIONS HAVING A SIMILAR STRUCTURE (MULTIPLE LOCATIONS WITH CENTRALIZED FUNCTIONS SUCH AS FINANCE AND HR) AND THOSE THAT HAVE AN EXECUTIVE DIRECTOR THAT OVERSEES A STANDALONE ORGANIZATION. THE PURPOSE OF THE COMPENSATION POLICY IS TO ESTABLISH CONSISTENT, SUSTAINABLE, COMPETITIVE, EQUITABLE, AND TRANSPARENT PAY PRACTICES, ALIGNED WITH CITY YEAR'S ORGANIZATIONAL STRATEGY AND COMPENSATION PHILOSOPHY, ACROSS ALL DEPARTMENTS AND DIVISIONS OF CITY YEAR, INC. THE HUMAN POTENTIAL DEPARTMENT IS RESPONSIBLE FOR UPDATING AND MANAGING ENFORCEMENT OF THIS POLICY. PROCEDURE FOR SETTING MARKET REFERENCE POINTS THE HUMAN POTENTIAL DEPARTMENT BENCHMARKS CURRENT MARKET REFERENCE POINTS USING MARKET DATA FOR REPRESENTATIVE POSITIONS FROM ORGANIZATIONS AS DESCRIBED ABOVE, AND REVISES THE MARKET REFERENCE POINT FOR EACH GROUP AS NEEDED. MARKET REFERENCE POINTS FOR THE CHIEF EXECUTIVE OFFICER AND THE CEO'S DIRECT REPORTS (TYPICALLY, BUT NOT LIMITED TO, THE PRESIDENT, CHIEF FINANCIAL OFFICER AND CHIEF EXTERNAL AFFAIRS OFFICER) MUST BE APPROVED BY THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES. PROCEDURE FOR SALARY INCREASES CHIEF EXECUTIVE OFFICER - ALL INCREASES ARE DETERMINED AND APPROVED BY THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES, AND COMMUNICATED TO HUMAN POTENTIAL FOR PROCESSING. CEO DIRECT REPORTS - ALL INCREASES ARE PROPOSED BY THE CEO, MUST BE APPROVED BY THE CHAIR AND VICE CHAIR, IF ANY, OF THE BOARD OF TRUSTEES, AND COMMUNICATED TO HUMAN POTENTIAL FOR PROCESSING. SENIOR LEADERSHIP TEAM - ALL INCREASES ARE PROPOSED BY THE CEO'S DIRECT REPORTS, MUST BE APPROVED BY THE CEO, WITH INPUT FROM THE CHAIR AND VICE CHAIR, IF ANY, OF THE BOARD OF TRUSTEES, AND COMMUNICATED TO HUMAN POTENTIAL FOR PROCESSING. EXECUTIVE DIRECTORS, VICE PRESIDENTS, AND ANY STAFF MEMBER WITH A BASE SALARY >$100K - ALL INCREASES ARE PROPOSED BY THE EMPLOYEE'S MANAGER TO HUMAN POTENTIAL, MUST BE APPROVED BY THE PRESIDENT AND CEO, AND COMMUNICATED TO HUMAN POTENTIAL FOR PROCESSING.
PUBLIC DISCLOSURE POLICY
FORM 990, PART VI, SECTION C, LINE 19
CITY YEAR'S FORM 990 AND FINANCIAL STATEMENTS (AUDITED ANNUALLY) ARE MADE AVAILABLE TO THE GENERAL PUBLIC THROUGH THE ORGANIZATION'S WEBSITE, ON REQUEST, AND AVAILABLE FOR INSPECTION AT HEADQUARTER OFFICES. ADDITIONALLY, THE FORM 990 IS AVAILABLE AT WWW.GUIDESTAR.ORG.
RELATED PARTIES AND AFFILIATIONS
CITY YEAR IS ONE OF SEVEN MEMBERS OF CITY YEAR SOUTH AFRICA CITIZEN SERVICE ORGANIZATION, A SEPARATE LEGAL ENTITY WHICH IS INCORPORATED UNDER SOUTH AFRICAN CHARITABLE ORGANIZATION LAWS. ONE INDIVIDUAL MEMBER OF CITY YEAR SOUTH AFRICA IS ALSO A TRUSTEE OF CITY YEAR. CITY YEAR DOES NOT CONTROL AND HAS NO OBLIGATION TO SUPPORT OR BE A BENEFICIARY OF THE NET ASSETS OF CITY YEAR SOUTH AFRICA. AS SUCH, THE FINANCIAL RECORDS OF CITY YEAR SOUTH AFRICA ARE NOT CONSOLIDATED HERE WITHIN. CITY YEAR HAS AN AFFILIATION AGREEMENT WITH CITY YOUTH LIMITED, AN ORGANIZATION INCORPORATED AS A COMPANY LIMITED BY GUARANTEE UNDER THE ENGLISH CHARITY ACT. THE AFFILIATION AGREEMENT PROVIDES FOR, AMONG OTHER THINGS, A GOVERNANCE STRUCTURE THAT ESTABLISHES THE PROGRAM AS A FULLY INDEPENDENT UK CHARITY, WITH CITY YEAR ENTITLED TO APPOINT TWO PERSONS TO THE BOARD OF DIRECTORS. CITY YOUTH LIMITED IS, AND SHALL AT ALL TIMES, REMAIN FINANCIALLY INDEPENDENT FROM CITY YEAR. CITY YEAR DOES NOT CONTROL AND DOES NOT HAVE ANY FINANCIAL OBLIGATION, RESPONSIBILITY OR LIABILITY TO CITY YOUTH LIMITED. AS SUCH, THE FINANCIAL RECORDS OF CITY YOUTH LIMITED ARE NOT CONSOLIDATED HERE WITHIN.
PART XI, LINE 5 OTHER CHANGES IN NET ASSETS
NET UNREALIZED GAINS ON INVESTMENTS $ 998,128 UNREALIZED NET GAIN ON CHANGES IN FAIR VALUE OF INTEREST RATE SWAP $ 157,901 ----------- TOTAL $ 1,156,029 ===========
SCHEDULE G, PART IV, SUPPLEMENTAL INFORMATION
FUNDRAISING ACTIVITIES, PART II DISCLOSURE
DURING THE FISCAL PERIOD, CITY YEAR WAS PROUD TO HOST 20 SEPARATE FUNDRAISING EVENTS TO BRING LEADERS OF OUR COMMUNITY AND OUR SUPPORTERS TOGETHER. THOSE EVENTS RESULTED IN $6,334,631 OF RECEIPTS. IN ACCORDANCE WITH INTERNAL REVENUE CODE (IRC) 6115, CITY YEAR MADE GOOD FAITH EFFORTS AND DETERMINED THE COST OF GOODS AND SERVICES PROVIDED IN CONNECTION WITH THESE EVENTS TO APPROXIMATE $479,688. THE DIFFERENCE BETWEEN THESE AMOUNTS, $5,854,964, REFLECTS THE GENEROSITY OF OUR DONORS. THE DIRECT COSTS, INCLUDING FACILITY RENTAL AND OTHER SIMILAR EXPENSES WERE $1,064,024.
SCHEDULE I, PART IV, SUPPLEMENTAL INFORMATION
PART I, LINE 2
CITY YEAR'S DISBURSEMENTS TAKE THE FORM OF PROVIDING CORPS MEMBERS WITH A STIPEND RANGING FROM $175/WEEK TO $375/WEEK DURING THE PROGRAM YEAR. ON A LIMITED BASIS, CITY YEAR PAYS AN EDUCATIONAL AWARD OF $5,550 TO CORPS MEMBERS. THIS AWARD IS FOR EDUCATIONAL AND RELATED EXPENSES AND PAYABLE DIRECTLY TO THE EDUCATIONAL INSTITUTIONS. THE POLICY FOR SELECTING CORPS MEMBERS IS BASED ON A COMBINATION OF WHAT THE INDIVIDUAL CAN BRING TO CITY YEAR AND WHAT CITY YEAR CAN GIVE TO THE INDIVIDUAL. CITY YEAR HAS BEEN SUCCESSFUL IN INVOLVING YOUNG PEOPLE FROM A BROAD RANGE OF RACIAL, SOCIO-ECONOMIC, RELIGIOUS AND EDUCATIONAL BACKGROUNDS AND IS COMMITTED TO RECRUITING AND RETAINING A DIVERSE CORPS. CITY YEAR MAINTAINS A NON-DISCRIMINITORY POLICY TOWARDS ALL EMPLOYEES WITHOUT REGARD TO RACE, AGE, ETHNICITY, RELIGIOUS AFFILIATION OR SEXUAL PREFERENCE.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.