2012 ANNUAL REPORT

97% of all LPS graduates are accepted

to college

did you know...?

85% of LPS graduates will be first-generation college students

On the cover: Brian Clarks, LPS Hayward Class of 2012. Attending CSU Humbolt. “At LPS, I learned that if I remain focused and relentlessly pursue my dreams, I can and will accomplish anything.”

83% of LPS students are low-income

100% of LPS graduates meet or exceed the

University of California academic entrance

requirements 29% of LPS students are

English Language Learners

Meeting Challenges

Dear LPS Supporter,

This past year—our tenth in existence—has been an exciting one as we have made even greater progress in meeting the unique challenges that face urban education today.

Nearly every LPS student faces significant economic hardship at home. In some cases their after-school earnings provide the bulk of the family income. Despite economic and academic challenges, over 97 percent of our 2012 graduates were accepted to college; of these, an astounding 50 percent to a four-year college.

In this report, you will read about some of our recent honors and successes, many of these directly linked to the way we are leveraging the power of technology to develop innovative educational solutions.

You will also read about the efforts we are undertaking to ensure that all LPS graduates leave our schools possessing the skills necessary to pursue their most ambitious academic and personal dreams.

This year saw the first significant group of LPS alumni become college graduates—generally the first in their family to reach this important mile-stone. Their success is evidence that we are fulfilling our mission of ensuring that all LPS graduates are prepared to succeed in college regardless of their academic skills when they join us in 9th grade. However, our vision extends far beyond the boundaries of our own schools to developing strategies that will contribute to the transformation of urban education nationwide.

Thank you for your continued support of these outstanding young men and women who are learning to believe in their own ability to succeed.

JR Matthews Board Chair

Dr. Louise Bay Waters Superintendent & CEO

Our MissionOur mission is to prepare traditionally underserved students to succeed in college and become leaders in their communities while at the same time developing replicable practices that can improve urban education across the nation.

About LPSLeadership Public Schools (LPS) is a not-for-profit organization founded in 2002 to serve a diverse student body throughout the Bay Area with a network of outstanding public charter high schools. LPS currently operates four public high schools in Richmond, Oakland, Hayward, and San Jose serving over 1,500 students. As public charter schools, LPS high schools are tuition-free and open to all.

Our VisionAll LPS graduates ready for college entrance without remediation, regardless of their proficiency level upon enrollment in our schools.

Our StrategyA critical component of our strategy is to act as an entrepreneurial “research and development” organization seeking solutions for the most difficult issues in public education. LPS is leveraging the design processes of the private sector and the power of partnerships to develop solutions that are uniformly rigorous, yet flexible enough to address individual student needs.

Recognitions and Awards

“LPS is the best example of a collaborative and distributed innovation agenda across a network of schools.” — Tom Vander Ark, Founder and

Executive Editor of Getting Smart

�Effective Practice Incentive Community (EPIC) AwardLPS Richmond and LPS Hayward were among the 14 EPIC award-winning schools identified as having the most dramatic gains in student achievement from a pool of 179 high-need charter schools across the nation.

�Next Generation Learning Challenges GrantLeadership Public Schools was awarded one of five national Next Generation Learning Challenge Wave III grants for its new LPS Oakland R&D Campus. Funded by the Bill and Melinda Gates Foundation and the William and Flora Hewlett Foundation, Next Generation Learning Challenges (NGLC) was designed to promote innovation that leverages education technology to help improve college readiness—especially among low-income students.

�U.S. News & World Report Lists LPSHayward Among Nation’s BestLPS Hayward earned a Silver medal, ranking in the top 100 charter schools nationwide in U.S. News & World Report’s “Best High Schools 2012.”

�USC Names LPS Hayward #2 Charter School in California

The USC School Performance Dashboard, developed by the prestigious USC Center on Educational Governance, ranked LPS Hayward as the second highest performing charter in California based on measures of academic performance and organizational health.

During the 2011-12 school year, LPS earned several local and national distinctions and awards. These honors reflect LPS' focus on helping our students take control of their academic future and make the leaps necessary to prepare for college success.

Innovating Locally...

Transforming Education Nationally

This past summer the education community was saddened to hear of the closure of the Stupski Foundation, a leader in education reform. Joyce and Larry Stupski have been long time supporters of LPS and we wish to extend our heartfelt appreciation. Previously, as a director at the Stupski Foundation, Dr. Louise Bay Waters, LPS Superintendent and CEO, led a national project documenting the reform paths of a group of districts that had significantly closed their achievement gaps. The findings of this research became the Theory of Action behind the organizational changes and accelerated results at LPS over the past four years. Ongoing conversations during that research laid the conceptual foundation for creating an R & D “district” or charter network—which is now a key component of the LPS mission. More tangibly, the class set of “clickers” the Stupski Foundation donated to LPS became the starting point for the design and development of ExitTicket. The philanthropic support of Joyce and Larry Stupski and the Stupski Foundation has been instrumental in its development. Finally, LPS Hayward was fortunate to be a part of the Stupski Learning Lab Network, helping LPS extend its focus on college readiness and student empowerment.

Thank you, Larry. Thank you, Joyce. We are indebted to you in so many ways.

Over the past year and a half, Dr. Scot Refsland, LPS Entrepreneur in Residence, has worked with a design team of teachers and students to develop ExitTicket, a software application widely recognized as the leader in providing just-in-time data to teachers and students. Working on any hardware platform, ExitTicket provides online quizzes and collects and displays real-time data tied to learning targets. Students receive immediate feedback on the items assessed and can track their mastery of concepts over time. Teachers track just-in-time data on an iPad with a heatmap showing each student’s response on every item. This response data allows the teacher to provide immediate intervention to individual students, separate out small groups

needing re-teaching, or review the lesson for the entire class. ExitTicket can also be used in survey mode to spark class debates or to collect and track ongoing affective information on topics such as growth mind set and effort.

To develop ExitTicket, Dr. Refsland embedded himself in Algebra and Academic Numeracy classes at LPS Richmond where it was used all year. Results from the NWEA Measures of Academic Progress (MAP) growth assessment showed the average student in these classes grew 2.5 grade levels in one year.

Schools and districts across the U.S. have expressed interest in utilizing Version 2.0 when it is released in late 2012.

A central focus of the education reform movement has been the use of data to drive student achievement.LPS has been a key contributor to this national dialogue.

The Stupski Foundation

Transforming

Cultivating

“I believe that Leadership Public Schools showed me a lot about my character. LPS also taught me the importance of being a leader. One of the things I really appreciate about LPS is its culture. There were moments when I no longer felt like doing things or I got upset with people, but the friendly atmosphere truly inspired me to forgive. People need to notice why this school works so well. The teachers, staff, and academic rigor are inspiring.”

Mitzi Perez LPS Richmond, Class of 2012Attending UC Berkeley

Jose EspinozaLPS San Jose, Class of 2013

“When I first came to LPS my English was very poor. During these three years that I have been at LPS I have learned a lot, and not just English, but everything. The teachers here have a very friendly, fun, and powerful way of teaching that makes me more interested in the subject. I am particularly interested in history and government and was inspired by what I learned to run for class President—and I won! LPS has an incredible environment that you cannot find at any other school—the students, the teachers, the deans, the principal, and administration; together we make LPS an amazing school. I have many words to describe LPS but the one that fits the best is ‘family’.”

Knowledge

Lives

Jasmine: “LPS changed my life. It showed me that there is more to life than what we think, that we all have hidden talents, and that you should always be yourself.”Robert Mack: “LPS helped my granddaughter grow as a person. Starting as a freshman she was quiet and kept to herself, but over the years the growth in her has shown us all that hard work really does pay off.”Deshaya Poe: “Watching my sister at LPS I saw students and staff become a family. This family atmosphere created a welcoming environment where students worked hard and enjoyed school.”

“LPS opened up my eyes to a brighter future. I knew I wanted to go to college but I didn't know how I was going to make it happen. Thanks to LPS, I now know what it will take to be successful in college. LPS challenged my academic skills and made me realize what I am capable of doing. LPS taught me nothing is impossible as long as you work hard and never give up. I am proud to say I am an LPS alumnus!”

Gerardo AndradeLPS Hayward, Class of 2012Attending Chabot College

Jasmine Eubanks (with her grandfather and sister)LPS College Park, Class of 2012Attending UC Davis

MeasuringAt LPS we hold ourselves to three standards of success: overall academic growth, the individual growth of every student, and our proficiency in individual subject areas.

Accelerated Growth During Critical Freshman Year

LPS’ Network-Wide API Continues to ClimbWith an astounding API score of 800 for LPS Richmond and a remarkable jump of 90 points for LPS College Park, the LPS Network-wide API score has reached an all-time high of 772.

Leadership Public Schools Average API 2004–2012

Overall Growth

LPS Among California's Top-Performing High SchoolsThe API scores of LPS Hayward (861) and LPS Richmond (800) place them in the top 2% of high schools serving similar percent-ages of low-income students and in the top 8% (LPS Hayward) and 18% (LPS Richmond) of all high schools statewide.

Succes

Individual Growth

Most of our students begin 9th grade significantly below grade level. This first year with us is critical to their success in college preparatory high school courses. To help students accelerate their academic growth, LPS utilizes data from the Northwest Evaluation Association’s Measures of Academic Progress (MAP), looking for average growth well above one year, with the lowest students gaining two or more years.

Physics CST (% Scoring Proficient or Advanced)

The Physics Success StoryClosing gaps in foundational skills is not enough; LPS is also committed to high levels of achievement in advanced college preparatory courses. Two years ago, a rigorous new approach to physics was introduced by teacher Darren Tarshis at LPS Hayward, resulting in a huge jump in achievement. Last year, LPS Richmond teacher Ryan Melvin extended the curriculum and saw even greater jumps at that school. Alex Moos at LPS San Jose also built on Tarshis’ curriculum with gains of 17% more students scoring Proficient and Advanced and 24% fewer Far Below and Below Basic on the California Standards Test (CST).

9th Grade 2011-2012 Accelerated Reading Growth

One Year Expected Rate = 1.0 Grade Level Increase

Ave

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# G

rade

Lev

el In

crea

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9th Grade Algebra 2011-2012 Accelerated Math Growth

One Year Expected Rate = 1.0 Grade Level Increase

Ave

rage

# G

rade

Lev

el In

crea

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Subject Area Growth

Expected 1 year increase

Expected 1 year increase

LPS Richmond LPS Hayward

ss

why we donate...“We're excited to support Leadership Public Schools. LPS is doing what has been discussed for decades: using appropriate technology to fundamentally change the way students, and particularly urban high school students, learn and progress. LPS stands out as a leader of true educational innovation.”

–Amy Slater and Garrett Gruener

The contributions and grants made by individuals, corporations, and foundations help us ensure that every LPS student graduates college-ready. These donations enable us to design and implement the latest advances in effective educational innovations.

The following is a list of our donors from July 1, 2011 through June 30, 2012.

“LPS is what happens when you mix best-in-class teaching practices with innovative technologies and exceptionally high standards with tough love. The students, most of whom have beaten incredible odds to reach their full potential, are living proof that the formula works.LPS believes in the potential of every student who enrolls in their schools. No matter the starting point, just about every youth graduates college-ready. For this reason, we believe LPS is one of the best philanthropic investments that can be made in the Bay Area.”

–Pam Scott and Tim Koogle

“The more I learn about LPS, the more I am inspired by their tireless dedication to tackling the toughest issues in education. The LPS team develops models that can be used in schools across the country, and they are engaged in unique strategic partnerships that allow their successes to be broadly influential.”

–Regan Pritzker and Chris Olin

Visionary Circle$100,000 and aboveLaura and John FisherPam Scott and Tim Koogle

Founders’ Circle$20,000 and aboveCecily Cameron and Derek SchrierAdam Cioth and Beth CobertSandy and Catherine Dean

Honor Roll$10,000 and aboveBernard and Jane von BothmerMarsha and Tom DuganDavid and Junko FinkeNeeru and Vinod KhoslaRegan Pritzker and Chris OlinSheryl Sandberg and David GoldbergAmy Slater and Garett GruenerJoyce and Larry Stupski

Thank you to our 2012 donors for your generous support.

Leadership Circle$50,000 and aboveScott Pearson and Diana Farrell

Robert and Dana EmeryJR and Jennifer MatthewsSteven and Grace VoorhisLouise and Harry Waters

Benefactors$5,000 and above

Stu and Meg McLaughlinWilliam and Susan OberndorfElizabeth PattersonAli Partovi and Gina TegaRussell and Elizabeth SiegelmanTom Steyer and Kat TaylorAlex and Nadine Terman

Scholars$2,500 and above

John and Anne CrossMutiu FagbayiWilliam and Sakurako FisherJohn and Marsha GoldmanDixon Long

Mentors$1,000 and aboveKurt and Lisa AbrahamsonJohn Atwater and Diana NelsonKathleen Burke and Ralph DavisGreg and Cathy CiothLionel Conacher and Joan DeaAlan and Laurie DachsWendy and Doug DaytonJohn and Ceci FarrellWilliam FerrellJason Fish and Courtney BenoistJohn FreidenrichSally GlaserEdie HoffmanMark JacobsteinAlix LobbyDavid Loo and Valerie de LavaletteSebastian Mallaby and Zanny Minton BeddoesJoyce Montgomery and Thomas E. LewisRobert and Susan MorseLaurence Pearson and Carole HawkinsGary and Mary PinkusRobin and Jon ReynoldsAlex and Kelly WatersJohn and Susan WeissKatherine Welch

Friends$250 and above

Bruce and Hilary ArmstrongAndy and Andrea BallardKen and Janice BenjaminAndy Byrne and Julie DickersonJuan Carlos and Nerine TorresMary DangJonathan DenholtzSteve Dostart and Sharon MeersD'Lonra EllisAmy Epstein and Liat Barnea Jacqueline and Christian ErdmanJosh EstelleCharles and Chase EwaldMary FoustDon GosneyDavid and Randy GreenbergHeather Hiles and Karen Roye-HilesLeslie and George HumeAndrea and David KennedyDavid Kremer and Marla MillerBeatrice KushnerMark Kushner and Mimi WinsbergBruce Mac CorkindaleV. Darleen OpferGary Patterson and Francisco HernandezMonica and David PauliJay and Rosa PeirJohn and Angela RobertsJani and Terry RossRohan SethGlenn and Lori ShannonSarah Stein and Michael CohnJoseph and Jane WeintropMike and Jeanne Williams

Josefina Alvarado-MenaMichael and Susan AndersonDuane and Mary BayBob and Crystal BenbowJulian BlumenthalKerri Briggs

DonorsUp to $250

In Kind DonorsCalifornia HeathCare FoundationMark McClure, CCIGCK12 FoundationClarium Capital Management, LLCDechert LLPDevice AnywhereGoogle, Inc.Hall Capital PartnersBrady Rowe, Nor Cal Moving ServicesLucie RefslandJohn Witchel, sendme.comSilicon Valley Community FoundationSpeckStupski FoundationThe Swig CompanyZynga

LPS Donors, cont.Up to $250

Tristan BrownMichelle BusseniusLarry CubanEllen DiGiacomo and Joelle ChartierAlexa DiJulioElizabeth DoctorLauren Dutton and Glen TrippSean FoleyNicholas and Samantha FrenchKimberly GrunderGreg HauslerRuth E. HerringCharles HokansonRachel HsuJason JohnsonLiz KoenigPeter and Janice LorberJames LudwigSusan Mensinger and Rick ForemanAlexander MoyleAndrew and Roz NatkerPaz OlanoBobbi Pearson and Mike EbertAnn Reidy and Olaf GrothOlga Jane RotermundLauren SchneiderDiana Schneider and Patrick Wolff

Frances ScottChristina SeibLane ShackletonJeffrey and Lei SheehanBen SteinbergDorothy TermanRicardo and Sara ToyloyLuis Andre VertizRebecca Zucker

Foundations and CorporationsSupport of $100,000 or moreEducauseThe William and Flora Hewlett Foundation

Support up to $100,000Association for Continuing EducationBank of America FoundationCiti FoundationChevron Matching Gift ProgramChubb & SonThe Dean & Margaret Lesher FoundationDodge & CoxExcellence in Investing for Children's CausesFull Circle FundGap, Inc.Google Matching Gifts ProgramThe K & F Baxter Family FoundationLeader EnterprisesMind TrustThe Sobrato Family FoundationThe Steve and Anita Westly FoundationUnited Way of the Bay Area

Charitable Advisory FundsAyco Charitable FoundationEast Bay Community FoundationEGG FoundationFidelity Charitable Gift FundJewish Community Federation and Endowment FundMarin Community FoundationMeadowood FoundationNational Philanthropic TrustQualcomm Charitable FoundationThe San Francisco FoundationSchwab Charitable FundSilicon Valley Community FoundationSpringcreek FoundationVanguard Charitable Endowment Program

Corporate SpotlightRicardo Toyloy (left),

Senior Tech Analyst VP at Citibank and LPS Board Member, and

Lance Tomasu, Citi Community Officer and LPS supporter

LPS and Citi are building on our shared commitment to innovation in education to open the doors of opportunity for more people. As Bob Annibale, Citi’s Global Director for Microfinance and Community Development states: “a college degree is crucial to breaking inter-generational cycles of poverty, increasing earning power and contributing to the economy. Citi’s strategy is to support programs that help increase the number of low-to-moderate-income students who are meeting the academic, financial and social milestones to enroll and complete postsecondary education.” He added “the ultimate measure of program success is college completion, as opposed to simply college acceptance, which is why Citi is working together with LPS on a program that focuses on every student graduating from college.” The program includes intense college counseling beginning freshman year and the opportunity for LPS juniors and seniors to complete online college courses with intensive tutoring and academic support.With Citi’s support, LPS created the LPS College Access Readers, a set of curricular resources that teach college

preparatory content and literacy skills simultaneously. These open-source materials, which have been adopted

in school districts across the U.S., can be customized to meet each

individual student’s needs.

The William G. Gilmore FoundationThe Wayne and Gladys Valley FoundationWells Fargo Bank

Statement of ActivitiesLPS ended the year with a moderate surplus as a result of outstanding support from our donors along with strong attendance and cost containment at our schools. The surplus for 2012 will be critical in mitigating the difficult and uncertain educational funding climate that exists in California.

Statement of Financial Position

Revenues*

Expenditures*

Total Revenues

Expenses by Function

Total Expenses

Assets

Total Current Assets

State and Federal Revenue

Federal Stimulus Funds

Other Revenues**

Individual Donors

Foundation/Corporate Donors

Instructional Services

Facilities & Capital Improvements

Student Services

Curriculum and Staff Development

Management & General

Fundraising Expenses

Fiscal Year Ending 6/30/2012* 6/30/2011

13,046,430

4,462

99,041

926,440

898,933$14,975,306

12,101,591

471,700

253,477

510,349

429,024

$13,766,141

9,174,842

1,507,936

1,625,393

629,111

591,579

218,066 $13,746,927

8,710,627

1,553,715

1,214,756

777,950

666,057

210,253

$13,133,005

Change in Net Assets

Fiscal Year Ending 6/30/2012* 6/30/2011

Cash & EquivalentsCertificate of DepositState and Federal ReceivablesGrants ReceivableOther ReceivablesPrepaid Expenses and Deposits

3,144,736

135,000

3,714,162

322,041

221,553

167,065

$7,704,557

2,888,369

250,000

3,198,324

16,460

121,083

110,180

$6,585,416

Fiscal Year Ending 6/30/2012* 6/30/2011

Liabilities

Total Liabilities

Accounts PayablePayroll Accruals and PayablesDue to Governmental AgenciesLoans Payable

321,938

562,229

361,776

698,255

$1,944,198

560,983

598,483

266,655

792,858

$2,218,979

Revenues

*Unaudited ** 2011 figure includes a one-time, non-cash realized gain of $174K

$1,228,379 $633,136

Property, Plant & Equipment, Net

Total Assets

$903,925 $1,069,468

LPS has been able to maintain a sufficient cash balance even with unpredictable state funding and cash deferrals.

$8,608,482 $7,654,884

Fund Balances

Total Liabilities and Net Assets $7,654,864$8,608,482

Beginning Fund BalancesEnding Fund Balances

5,435,905

6,664,284

4,802,769

5,435,905

(87%) State and Federal

(<1%) Stimulus Funds

(<1%) Other Revenues

(7%) Individual Donors

(6%) Foundation/Corp

(67%) Instructional Services

(11%) Facilities & Capital

(12%) Student Services

(5%) Curriculum & Staff

(4%) Mgmt & General

(1%) Fundraising Expenses

2011-12 Board of Trustees As of September 2011*Board service completed June 30, 2012

“During the eight years I served on the Board of Trustees for Leadership Public Schools, I learned about the real and immediate value of educational reform and the impact of technological innovation not only for LPS, but for schools across the nation. I am inspired by LPS’ vision of preparing every single student—no matter at what level they enter high school—for success in college and beyond. LPS’ results speak for themselves, and I am

proud beyond words of what LPS, its students, and graduates are achieving. There are truly revolutionary changes taking place in K-12 education right

now, and LPS is at the head of the pack, helping lead the way.”

—Heather Hiles,LPS Board of Trustees

Member & Secretary 2004–12

Josefina Alvarado-MenaCEOSafe Passages

Adam CiothManaging PartnerRolling Hills Capital

Larry CubanProfessor EmeritusStanford University

Sandy Dean*PartnerSansome Partners

Marsha DuganActive in Community Affairs

D'Lonra EllisAssociate Corporate CounselGap, Inc

Karen Elloqui*Student RepresentativeLPS San Jose

Mutiu FagbayiPresident & CEOPerformance Fact, Inc

David FinkeManaging DirectorRussell Reynolds

Karene Gray*Parent RepresentativeLPS College Park

Heather Hiles*, SecretaryCEOPathbright

Mark KushnerFounder of LPSSenior Vice Presidentk12 Inc

JR Matthews, ChairManaging DirectorTregaron Capital

Stu McLaughlinPartnerSansome Partners

Ana Olazava-Broadbent*Academic CounselorLPS San Jose

Jack R. SelbyCo-FounderClarium Capital Management, LLC

Nicole SheehanActive in Community Affairs

Alex Terman, Vice ChairFounder & CEODigital Parent

Ricardo ToyloySenior Tech Analyst VPCitigroup

Dr. Louise Bay WatersSuperintendent & CEOLeadership Public Schools

www.leadps.org

“LPS gave me the instruction, resources, and inspiration to become the first in my entire family to not only be accepted to college, but to earn a B.A.

Without a doubt, my experience at LPS helped me become the person I am today. Now, I am motivated to give back to the community that supported me.

This summer I will join LPS as an outreach program coordinator and look forward to helping new LPS students gain their own inner confidence and the drive to succeed.”

-Libertad Carlos

LPS San Jose, Class of 2008Whittier College, Class of 2012

Find us on

www.lpscollegepark.org � www.lpshayward.org � www.lpsrichmond.org � www.lpssanjose.org

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