AGM COMMON PROPOSAL FORM - owfortefdn.orgowfortefdn.org/images/2014_UTEC.pdf · AGM COMMON PROPOSAL FORM . FULL PROPOSAL NARRATIVE. The Full Proposal Narrative is to provide a complete

©Associated Grant Makers provides this form as a service to foundations and corporate grant makers, and nonprofit organizations seeking grants in Massachusetts and New Hampshire. We prohibit any

duplication or modification of this document without permission. Page - 1 -

COMMON PROPOSAL FORM

COVER SHEET The Cover Sheet Summary is to provide the essential data about the organization, the contact person, and the proposal. Please input text in shaded boxes. Complete this form and submit with your full proposal. Request to: Orville W. Forté Foundation

Date of Application: 2/14/2014 Full Legal Organization Name: United Teen Equality Center, Inc. Address: 34 Hurd Street City: Lowell State:MA Zip Code: 01852 Website: http://www.utec-lowell.org/ President/Exec. Dir.: Gregg Croteau Title: Executive Director Phone #: 978-856-3990 Email: [email protected] Contact Person (if different): Dawn Grenier Title: Associate Director of Development Phone #: 978-856-3906 Email: [email protected] Organizational Information 501(c)(3)? Yes No If, Yes, FIN #: 38-3669532 Year established: 1999 If No, provide name of fiscal sponsor (enter organization name and address): Total Organization Budget $3,387,814

Fiscal Yr: Month Jul Day 01

Total # of Board Members: 10

Total # of staff: 37 Volunteers #: 21

Organizational Mission Statement (50 words or less): UTEC's mission and promise is to ignite and nurture the ambition of our most disengaged young people to trade violence and poverty for social and economic success. Brief Description of Organization (75 words or less): UTEC’s model begins with intensive street outreach to our most disconnected youth. UTEC engages youth through case management, workforce training in social enterprises and alternative education. Social justice and civic engagement are embedded in all programming, with special emphasis in our organizing and policymaking work both locally and statewide. Population Served (25 words or less, include age groups, race & ethnicity, income levels, etc.): UTEC serves youth ages 16-24, without a high school credential and either gang involved, court involved, or parenting/expecting. Our 2013 youth population was 42% Latino, 23% Asian, 16% Multiracial, 12% White and 7% Black. Proposal Request: Program/Project Name: Preparing Proven-Risk Youth for Employment Opportunities in Furniture Making Total Program Budget: $1,079,538 Requested Amount: $5,000 %: 1% Type of Request: Program Support Grant Period: 1/1/2015 to

12/31/2015 Multi-Year? No

Geographic Area Served: Lowell and Lawrence MA Priority funding areas of grant maker (indicate how your request fits within the grant maker’s strategic interest[s]): UTEC's mission and work is perfectly aligned with the Orville Forté Foundation focus on serving disadvantaged youth in the Greater Boston area to improve job

©Associated Grant Makers provides this form as a service to foundations and corporate grant makers, and nonprofit organizations seeking grants in Massachusetts and New Hampshire. We prohibit any

duplication or modification of this document without permission. Page - 2 -

skills, increase self esteem and heighten personal aspirations. Most recent grants received from this funder: Amount: $5,000 Date: 12/5/2013 Amount: $5,000 Date: 12/5/2012 I hereby verify that the information provided is accurate and honest to the best of my knowledge. Gregg Croteau 2/14/2014

Authorizing signature (President of the Board or Executive Director) Date

Associated Grant Makers provides this form as a service to foundations and corporate grant makers, and nonprofit organizations seeking grants in Massachusetts and New Hampshire. We prohibit any

duplication or modification of this document without permission. - 1 -

AGM COMMON PROPOSAL FORM

FULL PROPOSAL NARRATIVE

The Full Proposal Narrative is to provide a complete description of the request. This is a suggested format that includes the most common information asked by foundations and corporate grant makers. Read the Common Proposal Instructions before you begin. We strongly recommend that you check the specific guidelines developed by the funder before completing this form. Please input text in shaded boxes. The suggested limit is eight (8) pages. Request to: Orville W. Forté Foundation Organization Name: United Teen Equality Center Project Name (if any): Preparing Proven-Risk Youth for Employment Opportunities in Furniture Making Organizational Information 1. Organization’s History: UTEC was founded in 1999 as the result of an organizing movement driven by young people to develop their own teen center in response to gang violence. Throughout its history, UTEC has incorporated values of peacemaking, positive action, and youth empowerment in all programming. Today, our mission and promise is to ignite and nurture the ambition of our most disengaged youth to trade violence and poverty for social and economic success. In late 2009, after ten years in operation, staff engaged in a strategic planning process that led to a programmatic restructuring to provide intensive, integrated services for our most disconnected youth. UTEC decided to continue the organization’s gang prevention work and education programming, as well as expand its employment and case management services. These features were integrated into programming based on ten years of service delivery to older, gang-involved youth. In response to the growing need for positive intervention programming for proven-risk youth in Lowell and Lawrence, UTEC is implementing an intentional scaling plan to serve and impact our most disconnected young people. UTEC began renovating its historic youth center in mid-2011. Construction concluded in November 2012, and the center is now the oldest LEED-Platinum building in the country. The construction included a new addition and green design retrofits to reduce energy consumption by 50%. The building features space for a café, which will open in Spring 2014. As part of our effort to enroll more youth through social enterprise job creation, we piloted our newest enterprise – Furniture Making – in late 2013 in our warehouse space in Lawrence. 2. Organizational Goals and Objectives (short-term and/or long-term): UTEC’s goal is to foster the social and economic success of proven-risk young people. To help us accomplish our youth goals, we have established four agency-wide outcomes that guide all programming and define the “social and economic success” referenced in our mission statement. Specifically, we track youth outcomes for Increased Educational



Attainment; Increased Employability and Financial Stability; Ceased Criminal and Gang Activity; and Increased Civic Engagement. In addition to our goal of ensuring youth progress in the four outcome areas, UTEC has established the following organizational objectives for FY14:

• Expand overall enrollment from 100 target youth served in FY12 to 200 youth served in FY16;

• Expand outreach to youth in DYS, county and state locked facilities to ensure participation in UTE’s workforce development and social enterprise program when they return to their communities;

• Increase job slots in our UTEC-run social enterprises - currently food services, building trades, mattress recycling, and furniture making;

• Launch a food manufacturing enterprise involving value-added products (such as salsas and pestos) from locally sourced food, to be sold at our café and through partnering retailers (business plans are currently being developed with Whole Foods); and

• Develop post-secondary education and job placement opportunities for proven-risk youth.

3. Programs and Services (briefly describe your organization’s programs and services): UTEC's mission is to ignite and nurture the ambition of our most disconnected young people to trade violence and poverty for social and economic success. UTEC was founded in 1999 by young people driven to develop their own teen center in response to gang violence. Today, UTEC’s nationally recognized model begins with intensive street outreach and gang peacemaking, reaching out to our most disconnected youth by meeting them “where they’re at” and facilitating a peace process between rival gang leaders. Each young person in our target population (16-24, dropped out of school, gang or criminally involved, or pregnant/parenting) receives up to three years of intensive case management. UTEC provides workforce training through our social enterprises in culinary, recycling, furniture design and light demolition and construction crews. Project-based educational programming is provided through both an alternative high school diploma program and GED pathways. Social justice and civic engagement are embedded in all programming, with special emphasis on our youth-led, state and local grassroots organizing and policymaking campaigns, such as the campaign to lower the voting age. Enrichment activities such as athletics, dance, and visual arts give youth healthy and safe alternatives to violence while serving as recruitment pathways into more structured enrollment programs. Ultimately, UTEC’s unique model can provide a pathway from the street to the state house for older youth most often overlooked and considered disengaged. 4. Organizational Structure (board, staff, volunteers): UTEC has a simple organizational structure. At the top is an Executive Board, including youth members, which sets high level policy and direction. Operations for the center are managed by a fully empowered Executive Director, who works closely with our Chief Program Officer and Chief Innovation Officer. Each of UTEC’s program teams is led by an experienced Director who implements programs and procedures to achieve the short and long term objectives identified by the Board and Executive Director. Current staffing includes 35 full-time and 7 part-time positions. UTEC programs also benefit from the support of 18 full-time AmeriCorps members for 10 months per year, and 3 full-time AmeriCorps VISTA members to build capacity within our Evaluation, Social Enterprise and Development teams.



UTEC intentionally hires a staff that reflects the racial diversity and life experience of the youth its serves. The racial composition of executive and program staff is 43% White, 27% Asian, 10% Latino, 10% Black, and 10% Other. Many UTEC staff have similar life stories to those of youth. UTEC has hired former gang members, refugees, immigrants, and the children of refugees and immigrants.. Proposal Information (If you are requesting general operating support, provide information about your organizations overall purpose, operating needs, and strategic plans.) 5. Description of Program/Project: UTEC’s Workforce Development and Social Enterprise program – which includes a required education component and wrap-around case management – is intended to provide a range of employment opportunities for our youth where they can develop workforce competencies as well as basic skills in specific trades. Recognizing that the majority of our youth come from difficult backgrounds, the programs are built to instill positive employment behaviors over a long period of time (e.g., 2 years) vs. shorter, more intensive programs. Through this program, youth learn industry-specific skills and, most importantly, the interpersonal and life skills required to excel in any workplace. Program Managers teach and mentor youth so that they can pursue viable and long-term careers after they leave UTEC. The programming emphasizes the basic soft skills that are needed for long-term success in UTEC’s model and in the community: reliable attendance and appropriate personal presentation, group work and communication, hands-on work experience and work ethic, basic problem-solving, and ability to follow directions. UTEC’s Social Enterprise model provides on the job training opportunities to participating youth in a variety of industries that promise valuable experience in fields that offer appropriate entry level positions for youth at the point of graduation (e.g., jobs that do not require post-secondary credentials). These enterprises, moreover, are market-based and provide invaluable opportunities for youth to interact with customers, work under deadlines and participate in the management of the business. The earned revenue offsets program costs and raises the profile of participating youth as valuable contributors to the workforce and tax base through their taxable earnings. The increase in responsibility is matched by increased financial incentives, which serve the additional purpose of providing supplemental resources for youth to gain even greater financial independence. The wages allow youth to afford permanent housing, child care expenses, and ultimately save for future needs. As youth gain valuable job skills, they are simultaneously ingraining the positive life habits that will serve them when they are integrated into the traditional workforce, including months of arriving at work on time and mentally prepared for work. This phase of the program is intentionally the longest, as it is here that the long-term habits will be formed within the context of an increasingly structured environment that upholds high standards for performance, etiquette, and attendance. During this on-the-job training, youth have opportunities to work independently and within a group and simultaneously work to earn nationally recognized certifications that will serve them in future trades, including OSHA and ServSafe. In all of these activities, we emphasize a triple bottom line: (1) providing living wages for the youth that we serve; (2) producing self-generating revenue to support our work; and (3) supporting community impact on sustainability by focusing on serving the local community, purchasing materials for our enterprises locally, and working with local community partners. In addition, these enterprises serve to engage youth over a long period of time: for youth who are difficult to engage, the “hook” of earning money gets



them in our doors and encourages them to stay for a longer period than they might otherwise. In addition, by creating our own enterprises, UTEC is able to create our own rules that allow youth opportunities to fail, but then re-engage in our programs – often many times – before they succeed. Through our enterprises, we offer youth a safe place to fail and to try again, before they have to play by the rules in the “real world.” 6. Description of Need (What is the issue you plan to address? What is your approach? What research supports your idea? How does your strategy differ from others in the field?): Lowell is the fifth largest city in Massachusetts, located about 35 miles northwest of Boston. With a history of textile-mill manufacturing, Lowell remains a diverse immigrant community of 106,519 residents. Nearly 25% are foreign born, and 42% speak a language other than English at home. Lowell has a significant Latino population at 17.3% and an even larger Asian population (mostly Cambodian) at 20.2% (US Census 2010). There are about 13,600 youth between the ages of 16-24 in Lowell, and they face a number of challenges, including:

• Poverty: 17.5% of Lowell households live below the poverty line, compared with 10.5% statewide, and 22% of children live in poverty (Census 2010 data).

• Drug and narcotics violations increased 12% between 2009 and 2010. Gang-related Group B offenses (which include drug offenses) increased 24% during that time period (Lowell Police Department 2010).

• Gang involvement: Lowell Police estimate that 1,500-2,000 youth are involved in 25-30 active gang sets, well above the average among cities of comparable size. Lowell youth join national gang sets, particularly Latino and Asian (eg, Latin Kings, Tiny Rascal Gangs), and more localized sets (eg, Brown Mafia).

• Cultural barriers: In many of Lowell’s immigrant families, barriers such as language gaps and generation differences can cause conflict between children and their parents.

• Pregnancy: Lowell has the 8th highest teen pregnancy rate in the state’s 350 communities (Lowell Community Health Center 2012).

• Dropout rates: Lowell High School is the second-largest in the state, with a 4-year graduation rate in the bottom 10% of Massachusetts districts. These high dropout rates result in a severe disconnect with other service providers for older teens and youth who may be in the greatest need of support.

Our in-process expansion to serve youth from nearby Lawrence, MA, is due in part to its even greater needs. The 2010 US Census confirms that Lawrence has one of the youngest populations in the state with approximately 41% under 24 (33% is under 15). It also shows that the Latino population of Lawrence is at 78.3%, up from 59.7% in 2000. Median family and per capita income in Lawrence is approximately 50% of the state average. Unemployment rates in Lawrence are consistently more than twice that of the state. In 2010, the Lawrence violent crime rate was 94 % higher than the violent crime rate in Massachusetts, according to FBI statistics. Furthermore, between January 1 and June 30, 2011, violent crime increased by 44% compared to the same period in 2010. In 2009 and 2010, an incredible 92% of Lawrence Police Department arrests were of minority youth under the age of 17 (Lawrence Police Dept, 2011). If these challenges were not daunting enough, Lawrence Public Schools went into receivership in 2011. 7. Specific Activities (Include information about service delivery and/or timeline.): UTEC’s request to the Orville W. Forté Foundation is for support of our newest social enterprise – Furniture Making. In late 2013, we piloted this business to teach youth how to



make unique furniture that is UTEC-inspired. We plan to sell the furniture to local customers who are happy to support UTEC’s mission-based social enterprise. The Furniture Making crew’s first project is building the furniture for our café, to open in 2014 as an expansion of our Food Services enterprise. They will move on to create a line of products that will enable them to develop basic drawing, modeling and construction skills, as well as custom work using re-purposed materials. This enterprise will ideally use reclaimed materials from our Mattress Recycling and Building Trades work. All enterprise youth progress through a tiered structure that gradually fosters greater responsibility.

1. Engagement Level, our core workforce level, operates 5 days a week from 9 to 4. Two youth cohorts who alternate between daily workforce and education/enrichment blocks. Youth work in morning or afternoon shifts of 3-4 hours a day in our social enterprises; the other half of the day involves GED, personal development, and enrichment classes. Youth receive daily stipends from $20-$45/ day, depending on level and GED obtainment. The engagement level is itself subdivided into three tiers: bench, crew and skill. Progression is based on performance review and attendance record. As they progress, youth also begin meeting with UTEC’s job developer to explore internship and post-enrollment employment opportunities.

2. Independence Level – Internship consists of a 3-6 month paid, part-time internship outside UTEC. Youth continue to meet weekly with their Transitional Coaches and attend GED classes if they have not yet obtained this high school credential. Employers that host UTEC interns submit monthly evaluations. This level also provides opportunities for “enterprise level” positions within UTEC (30 hours/week for a minimum of 4-6 months) such as café crew leader and reception positions.

3. Independence Level – Permanent Employment marks a youth’s completion of UTEC requirements but does not conclude the UTEC relationship with its “graduates.” UTEC’s Pathways Coordinator issues an employer survey the first month and then every 2 months for the first 6 months that a graduate is on the job. Additionally, the Pathways Coordinator facilitates first and second month meetings with the Job Developer, Employer, and Youth. Transitional Coaches continue to check-in with graduates weekly to biweekly to monthly, with reduced dosage over time.

Daily youth schedules are determined by their placement into one of three groups. Youth who are placed in Group A will have work shifts Monday and Tuesday mornings and participate in HiSET (formerly GED) classes in the afternoon. On Thursday and Fridays, Group A youth begin with HiSET instruction and then switch to work shifts in the afternoon. Group B youth have a similar schedule but in reverse order. On Wednesdays, all youth participate in professional development workshops, life skills classes, driver’s education, social justice circles and other special events such as guest speakers. An investment from the Orville W. Forté Foundation will provide seed funding for needed equipment and supplies to increase production and efficiency. Additionally, a portion of the funds will support our Furniture Making program manager as well as daily mileage costs to transport youth from our program center in Lowell to the Furniture Making location in Lawrence. 8. Objectives and Goals for this Request (How will this grant strengthen the organization, address the issues, make improvements, or achieve success?): The goal of the Workforce Development and Social Enterprise program is to prepare youth for full-time employment and increase youth’s educational attainment through HiSET preparation.



With support from the Orville W. Forté Foundation, we expect the following one-year youth outcomes:

• 90% remain enrolled in UTEC after 6 months (excluding youth who disenroll due to incarceration or moving away from service area)

• 80% are not re-arrested or do not violate parole • 35% pass 1 or more HiSET tests (of 5 tests required for HiSET credential).

9. Evaluation (What are the anticipated outcomes and how will you know if you are successful?): For each of our 4 outcome areas (Increased Educational Attainment; Increased Employability & Financial Health; Ceased Criminal and Gang Activity; and Increased Civic Engagement) and each individual youth, all data and documentation is tracked in our agency-wide client database, Efforts to Outcomes (ETO), and overseen by our Director of Evaluation, Erin Harris M.Ed . Intermediate and long-term outcomes will be measured through UTEC’s longer-term assessment tool, completed via follow up phone calls and visits with the youth by his/her Transitional Coach. This data allows staff to determine not just what youth are attaining during and after their time at UTEC, but also why. Through an analysis of all youth outcomes, UTEC can better understand what programs are and are not contributing to youth gains and then improve programming to increase UTEC’s rates of success with young people. 10. Other (Use this space to provide any additional information that you feel would be relevant to this grant request that is not covered in the sections above or respond to any other questions an individual grant maker may have.): UTEC seeks out enterprise opportunities that can put small teams to work under limited supervision. Because we want to employ as many youth as possible, we look for enterprises that require a relatively high level of labor to operate. Our goal is to have a team of 6-10, depending on the enterprise, with two staff supervising each team. This allows for lots of one-on-one attention and conversations over the course of the work day. We also seek out enterprises that require various skill levels to run. We want to provide a platform for broad learning, particularly of basic workplace skills like punctuality and consistency. We teach some trade-specific skills that serve the youth but these tend to be basic skills rather than in-depth/specialized skills. Given the Forté family’s connection to the textile industry, we would be very interested in exploring opportunities for integrating the trustees’ input on product ideas and accessing markets, if appropriate. UTEC’s advisory councils solicit the expertise of professionals as we expand our social enterprises and integrated services to more youth, and we welcome the chance to discuss this further. Budget Information Use the Budget Form to provide the organizational financial information and the program or project budget, both income and expenses. 11. Use this section below to indicate what funding you have received from other foundations, and from which other foundations you plan to seek funding. Describe any unusual or special circumstances and provide an explanation/justification of funding request and the amount. UTEC has received funding from various funders to support our social enterprise expansion. The top 5 contributors include: Smith Family Foundation $365,880 Aiyana Foundation $100,000



Amelia Peabody Foundation $100,000 Abrams Family Fund $100,000 Theodore Edson Parker Foundation $75,000 More detailed information about funding is available upon request. Currently, we have a $3,500 pending request to First Parish Unitarian Church in Concord for support for the Furniture Making enterprise.

Organization Name United Teen Equality CenterFederal ID # 38-3669532Fiscal Year End 6/30/2015

OWF Workforce AgencyRequest Budget Budget

Income SourcesGovernment Grants/Contracts 324,596 1,484,916 Foundation and Corporate Grants 5,000 499,500 1,297,638 Fundraising / Individual Contrib. 235,000 Earned Income 255,442 339,760 In-Kind Support 30,500 Total Income 5,000 1,079,538 3,387,814

ExpensesStaff Salaries & Wages 432,145 2,076,094

Furniture Design Program Manager 833 35,000 Employee Benefits and Taxes 167 100,673 398,252

Total Personnel Costs 1,000 532,818 2,474,346 Youth Stipends 225,000 225,000 Program Supplies & Materials 84,000 179,450 Air compressor @ $400/unit x 2 800 Jointer @ $600 600 Portable Belt Sander @ $100/unit x 3 300 Misc tools 69General & Office Expenses 5,893 96,971 Printing & Mailing 1,700 25250Occupancy 21,550 92,800 Training & Professional Development 3,200 17,600 Insurance Expense 8,427 37,076 Travel Lowell to Lawrence @.56/m x 26m round trip x 4 days/wk x 24 wks 1,398 9,000 55,750 Vehicle Expenses 4,920 25,458 Professional Fees 1,097 142,899 IT & Equipment Expenses 2,010 15,214 Admin/Fiscal Management @ 20% project 833 179,923 -

Total Non Personnel Costs 4,000 546,720 913,468 Total Expenses 5,000 1,079,538 3,387,814

Excess of Revenue Over Expenses 0 - -

Footnotes:

AGM COMMON PROPOSAL FORMWorkforce Development Program and Agency Budget Summary

The equipment above represents a partial list of furniture design program supply needs totaling approximately $17,000. More detailed information is available upon request.

Assets

Current Assets

Cash and cash equivalents 969,037.65

Accounts receivable 240,022.80

Prepaid Expenses 254,709.79

Current Assets 1,463,770.24

Fixed Assets, Net 8,973,139.48

Notes Receivable 7,709,000.85

Total Assets 18,145,910.57

Liabilities and Net Assets

Current Liabilities

Accounts Payable 130,653.87

Accrued Expenses 84,815.01

Line of Credit 422,463.72

Current Liabilities 637,932.60

Long Term Debt 11,335,978.35

Total Liabilities 11,973,910.95

Net Assets

Unrestricted 6,172,000

Total Net Assets 6,172,000

Total Liabilities and Net Assets 18,145,910.57

United Teen Equality Center, Inc

Consolidated Statements of Financial Position

6/30/2013

Not Audited. For Management Use Only

Operating Support and Revenue

Grants and Contributions 1,301,973

Contract Revenue 1,397,768

Other Income 69,619

Special Events 79,830

Interest 1,032

Total Support and Revenues 2,850,221

Operating Expenses

Salary and Wages 1,822,681

Occupancy 214,742

Program & Fundraising 283,090

Other Admin 417,270

Total Expense 2,737,784

Change in Net Assets from Operations 112,438

Non-Operating Support and Revneues

Grants and Contributions - Building 287,065

Loan Interest 119,629

Change in Net Assets 519,132

Beginning Net Assets 6/30/12 5,652,868

Ending Net Assets 6/30/13 6,172,000

United Teen Equality Center, Inc

Consolidated Statements of Activities

6/30/2013

Not Audited. For Management use only.

ANSTISS CERTIFIED PUBLIC ACCOUNTANTS

United Teen Equality Center, Inc.

Consolidated Financial Statements

June 30, 2012 and 201 1

AUDIT, TAX & ADVISORY SERVICES

SINCE 1964

ANSTISS CERTIFIED PUBLIC ACCOUNTANTS

Independent Auditor's Report

To the Board of Directors of United Teen Equality Center, Inc. 34 Hurd Street Lowell, MA 01852

We have audited the accompanying consolidated statements of financial position of United Teen Equality Center, Inc. and its affiliate (the "Organization") as of June 30, 2012 and 2011, and the related consolidated statements of activities, functional expenses, and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these consolidated fmancial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of United Teen Equality Center, Inc. and its affiliate as of June 30, 2012 and 2011, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated May 14, 2013, on our consideration of United Teen Equality Center, Inc.'s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

AUDIT

TAX

A DVISORY SERVICES PRINCETON CoRPORATE (ENTRE • 1115 WESTFORD STREET • lOWELL, MA 01851

P 978·452-2500 • F 978-4s8-o425 • www.ANsnssCPA.coM

Our audit was conducted for the purpose of forming an opinion on the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole.

Anstiss & Co., P.C. Lowell, MA May 14,2013

2

ANSTISS

United Teen Equality Center, Inc. Consolidated Statements of Financial Position

June 30, 2012 and 2011

2012 Assets Current assets

Cash and cash equivalents $ 1,552,080 Certificates of deposit Accounts receivable 368,622 Accounts receivable- building 539,208 Prepaid expenses and other 5,633

Total current assets 2,465,543 Property and equipment - net 8,377,883 Note receivable- UTEC Investment Fund, LLC 7,632,291

Total assets $ 18,475,717

Liabilities and Net Assets Current liabilities

Accounts payable $ 175,657 Accrued expenses 157,857 Line of credit 422,464 Deferred revenue

Total current liabilities 755,978 Long-term debt 12,066,873

Total liabilities 12,822,851

Net assets Unrestricted 5,323,113 Temporari ly restricted 329,753

Total net assets 5,652,866

Total liabilities and net assets $ 18,475,717

2011

$ 795,593 51 1,541 137,537

25,503

1,470,174 2,148,582

$ 3,618, 756

$ 113,239 245,010 149,500 201,063 708,812

708,812

1,789,342 1, 120,602

2,909,944

$ 3,618,756

The accompanying notes are an integral part of these consolidated financial statements. 3

United Teen Equality Center, Inc. Consolidated Statements of Activities

For the Year Ended June 30, 2012

Temporarily Unrestricted Restricted

Operating support and revenues Grants and contributions $ 359,318 $ 544,621 Contract revenue 1,136,899 -Other income 27,039 -Special events 59,344 -In-kind contributions 510,200 -Interest income 63 ,788 -Net assets released from restrictions 1,760,470 (1 ,760,470)

Total support and revenues 3,917,058 (1,2 15,849)

Operating expenses Programs 1,568,222 -General and administrative 441 ,511 -Fundraising 123,984 -

Total expenses 2,133,717 -Changes in net assets from operations 1,783,341 (1,215,849)

Non-operating support and revenues Grants and contributions - building 1,750,430 425,000

Change in net assets 3,533,771 (790,849)

Net assets- beginning of year 1,789,342 I, 120,602

Net assets- end of year $ 5,323,113 $ 329,753


Total

$ 903,939 1,136,899

27,039 59,344

510,200 63,788

2,701,209

1,568,222 441 ,511 123,984

2, 133,717

567,492

2, 175,430

2,742,922

2,909,944

$ 5,652,866

United Teen Equality Center, Inc. Consolidated Statements of Activities

For the Year Ended June 30,2011

Temporarily Unrestricted Restricted

Operating support and revenues Grants and contributions $ 193,424 $ 578,324 Contract revenue 636,201 -Other income 81,479 -Special events 30,265 -In-kind contributions 22,936 -Interest income 9,093 -Net assets released from restrictions 699,388 (699,388~

Total support and revenues 1,672, 786 (121,064~

Operating expenses Programs 1,474,314 -General and administrative 367,552 -Fundraising 132,388 -

Total expenses 1,974,254 -Changes in net assets from operations (301,468) (121,064) Non-operating support and revenues

Grants and contributions - building 480,517 185,000

Change in net assets 179,049 63,936

Net assets- beginning of year 1,610,293 1,056,666

Net assets- end of year $ 1,789,342 $ l , 120,602


Total

$ 771,748 636,201

81,479 30,265 22,936

9,093

1,551,722

1,474,314 367,552 132,388

1,974,254

(422,532)

665,517

242,985

2,666,959

$ 2,909,944

United Teen Equality Center, Inc. Consolidated Statements of Functional Expenses

For the Years Ended June 30,2012 and 2011

General and Programs Administrative Fund raising

Salaries, wages, taxes and benefits $ 1,245,030 $ 207,183 $ 109,403 Consultants 69,547 30,262 3,168 Other expenses 78,833 78,901 10,648 Supplies 60,356 20, 155 408 Depreciation 39,770 24,247 357 Occupancy 74,686 2,339 -Interest expense - 78,424 -

Total expenses $ 1,568,222 $ 441,511 $ 123,984

General and Programs Administrative Fund raising

Salaries, wages, taxes and benefits $ 1,1 15,710 $ 190,340 $ 108,573 Consultants 127,323 81,9 15 172 Other expenses 86,770 63,353 22,950 Supplies 44,139 27,177 210 Depreciation 52,084 966 483 Occupancy 48,288 985 -Interest expense - 2,8 16 -

Total expenses $ 1,474,314 $ 367,552 $ 132,388

The accompanying notes are an integral part of these consol idated financial statements. 6

2012 Total

$ 1,561,616 102,977 168,382 80,919 64,374 77,025 78,424

$ 2,133,717

2011 Total

$ 1,414,623 209,4 10 173,073 71,526 53,533 49,273

2,8 16

$ 1,974,254

United Teen Equality Center, Inc. Consolidated Statements of Cash Flows

June 30, 2012 and 2011

2012 Cash flows from operating activities

Change in net assets $ 2,742,922 Adjustments to reconcile change in net assets to net

cash provided by operating activities In-kind contribution of property (5 1 0,200) Depreciation 64,374 interest income added to note receivable -

UTEC Investment Fund, LLC (41, 111) (Increase) decrease in accounts receivable (23 1 ,085) Increase in accounts receivable -building (539,208) Decrease (increase) in prepaid expenses 19,870 Increase (decrease) in accounts payable 62,418 (Decrease) increase in accrued expenses (87, 153) (Decrease) increase in deferred revenue (201,063)

Net cash provided by operating activities 1,279,764

Cash flows from investing activities Purchase of certiticates of depos it (318) Redemption of certiticates of deposit 511,859 Loan proceeds to UTEC Investment Fund, LLC (7,591, 180) Acquisition of property and equipment (5,783,475)

Net cash used by investing activities ( 12,863,114)

Cash flows from financing activities Proceeds from line of credit 272,964 Payments on line of credit Proceeds on long-term debt 12,066,873

Net cash provided by financing activities 12,339,837

Net Increase in Cash and Cash Equivalents 756,487 Cash and Cash Equivalents at Beginning of Year 795,593 Cash and Cash Equivalents at End of Year $ 1,552,080

Supplemental information Cash paid during the year for

Interest $ 155,562 Income taxes $

2011

$ 242,985

53,533

157,303

(21 ,337) (230,391) 155,372 92,483

449,948

73,509

(510,686)

(437, 177)

135,000 (35,000)

100,000

112,771 682,822

$ 795,593

$ 2,816 $


United Teen Equality Center, Inc. Notes to the Consolidated Financial Statements

June 30, 2012 and 2011

Note l -Nature of Operations

United Teen Equality Center, Inc. ("UTEC") was established in 1999 to be a "by teens, for teens" safebaven for youth development and grassroots organizing. UTEC provides a safe and multicultural place of belonging emphasizing the holistic development of Lowell's young people, ages 13-20, particularly those most often overlooked and labeled as "at-risk". UTEC reaches out to these young people through intensive street outreach, builds upon their unique strengths within a youth development framework, and creates opportunities to best support them in becoming agents of social change and organizers in the community.

In order to serve more high-risk youth, UTEC recently completed a fundraising campaign to renovate their existing 12,500 square foot building, and also build a new 8,000 square foot building addition. The facility includes resources such as a cafe, multimedia lab, dance studio, additional classrooms, renovated kitchen, and a multipurpose performance and conference space. Such added capacity will enable UTEC to expand their workforce development programming and integrated educational programming. Similarly, UTEC has expanded staffing capacity to best support the increased numbers served.

Note 2- Summary of Accounting Policies

Basis of Consolidation The accompanying consolidated financial statements include the accounts of UTEC and its affiliate, Hurren St., Inc. (collectively the "Organization"), which is controlled by UTEC. Inter-organization transactions and balances have been eliminated in consolidation.

Hurren Street, Inc. was formed to own and develop the building at 34 Hurd Street in Lowell, MA for the purpose of leasing such property to UTEC.

Basis of Accounti11g The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles. Under the accrual method, income and expenses are recognized when earned or accrued. The costs of providing the various programs and supporting services have been summarized on a functional basis in the statement of functional expenses. Accordingly, certain costs have been allocated among the programs and supporting services benefited.

Basis of Presentation Financial statement presentation follows the recommendations of the Financial Accounting Standards Board Accounting Standards Codification ("ASC") 958-205, "Presentation of Financial Statements." Under ASC 958-205, the Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. In addition, the Organization is required to present a statement of cash flows.

8


June 30, 2012 and 2011

Note 2- Summary of Accounting Policies (continued)

Cash and C(lj·fl Equivalents Cash and cash equivalents consist of cash in the Organization's bank accounts and certificates of deposit with maturities of three months or less.

Concentration of Credit Risk The Organization places its cash investments with high quality financial institutions. Such investments are covered by Federal Deposit Insurance Commission (FDIC) insurance and by state level insurance for balances in excess of FDIC limits. Management routinely assesses the financial strength of the institutions in order to minimize risk. The Organization has not experienced any losses on such accounts and believes it is not exposed to any significant financial risk on cash.

Fair Value of Financial Instruments UTEC follows the provisions of ASC 820-10, "Fair Value Meamrements and Disclosures." ASC 820-10 applies to reported balances that are required or permitted to be measured at fair value under an existing accounting pronouncement. ASC 820-1 0 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability and establishes a fair value hierarchy. The fair value hierarchy consists of three levels of inputs that may be used to measure fair value as follows:

Level 1 -Inputs that utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Organization has the ability to access.

Level 2 - Inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the fu ll term of financial instrument. Fair values for these instruments are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows.

Level 3 - Inputs that are unobservable inputs for the asset or liability, wh ich are typically based on an entity's own assumptions, as there is little, if any, related market activity.

For instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fai r value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

ASC 825-l 0, "Financial Instruments," permits an entity to measure many financial instruments and certain other assets and liabilities at fair value on an instrument-byinstrument basis.

9


June 30, 2012 and 2011


Accounts Receivable Revenue is accounted for at established rates on the accrual basis, less allowances for contractual, charitable and other arrangements for services provided at less than established rates. The Organization's policy is to not accrue interest on trade receivables. the Organization records its accounts receivable at the outstanding principal amount less an allowance for doubtful accounts. On a periodic basis, the Organization evaluates its accounts receivable and establishes an allowance for doubtful accounts based on the history of past write-offs, collections and current credit conditions. As of June 30, 2012 and 20 II, there was no allowance for doubtful accounts.

Property and Equipment The Organization capitalizes major purchases of fixed assets, which are not in the nature of replacements or repairs. Minor equipment purchases, replacements, maintenance, and repairs are charged to expense as incurred.

Capitalized assets are recorded at cost if purchased or constructed, or at fair market value at the date of the gift, if donated. Depreciation is provided using the straight-line method over the estimated useful lives of the assets capitalized.

Classification of Net Assets Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows:

Unrestricted Net Assets Unrestricted net assets consist of net assets that are not subject to donor-imposed stipulations.

Temporarily Restricted Net Assets Temporarily restricted net assets consist of net assets subject to donor imposed stipulations that may or will be met, either by actions of the Organization and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.

Permanently Restricted Net Assets Permanently restricted net assets consist of net assets subject to donor-imposed stipulations that they be maintained permanently by the Organization. Generally, the donors of these assets permit the Organization to use all or part of the income earned on any related investments for general or specific purposes. As of June 30, 2012, the Organization had no permanently restricted net assets.

10


June 30,2012 and 2011


Revenue Recognition The Organization follows ASC 958-605, "Revenue Recognition." In accordance with ASC 958-605, contributions are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions.

Gains and losses on investments and other assets or liabilities are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulation or by law. Expirations of temporary restrictions on net assets by fulfillment of the donor-stipulated purpose or by passage of the stipulated time period are reported as reclassifications between the applicable classes of net assets.

In-Kind Donations The Organization received in-kind services from two organizations which provided educational and maintenance staff. The estimated fair values have been recorded as inkind contributions and an equal amount has been recorded as expenses. During the year ended June 30, 2011, the amounts recorded for in-kind services were $22,936. No inkind services were received during the year ended June 30, 2012.

Additionally, the Organization receives services from volunteers in various aspects of its operations. None of these services were recognized as revenue in accordance with ASC 958-605, "Revenue Recognition."

Expense Allocation Expenses are allocated among program and supporting services directly based or based on time records and utilization estimates made by management. Management and General expense includes those expenses that are not directly identifiable with any other specific function, but provide for overall support and direction of the Organization.

Income Taxes and Uncertain Tax Positions UTEC and Hurren St., Inc. have been granted tax-exempt status under Internal Revenue Code Section 50l(c)(3) and are, therefore, generally exempt from federal and state income taxes. Accordingly, no provis ion for income taxes has been provided for in the accompanying financial statements.

ASC 740-10, "Income Taxes" requires the Organization to evaluate and disclose tax positions that could have an effect on the Organization's financial statements. The Organization reports its activities to the Internal Revenue Service and to the Commonwealth of Massachusetts on an annual basis. These informational returns arc generally subject to audit and review by the governmental agencies for a period of three years after filing. Substantially all of the Organization' s income, expenditures and activities relate to its exempt purpose, therefore, management has determined that the Organization is not subject to unrelated business income taxes and will continue to qualify as tax-exempt not-for-profit entities.

11


June 30, 2012 and 2011


Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabi lities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Reclassijiclltions During 20 12 certain amounts from the prior year financial statements were reclassified to conform to the current year's presentation.

Note 3- Property and Equipment

Fixed assets consisted of the following as of June 30, 20 12 and 2011:

2012 2011 Land $ 189,074 $ 189,074 Building and improvements 680,076 1,003,362 Equipment 196,338 176,622 Furniture and fixtures 24,514 24,514 Vehicles 48,238 48,238 Construction in progress 7,486,990 998,489 Total fixed assets 8,625,230 2,440,299 Less: accumulated depreciation {247,347} {291,717}

Total property and equipment- net $ 8,377,883 $2,148,582

Depreciation expense relating to property and equipment for the years ended June 30, 2012 and 201 1 was $64,3 74 and $53,533, respectively.

Note 4- Note Receivable- UTEC Investment Fund, LLC

The Organization has a note receivable from UTEC Investment Fund, LLC, an unrelated entity, in the original principal amount of $7,591,180, with an annual interest rate of 1.60%. Payments due under the note receivable are as follows:

Beginning January 2012 through October 2018, quarterly payments of accrued interest on the outstanding principal balance will be due at an interest rate of .50%, with all accrued interest not payable added to the outstanding principal balance.

Beginning January 2019 through maturity in October 2051, quarterly payments of principal and interest will be due in the amount of$320,216.

As of June 30, 20 12, accrued interest in the amount of $4 1, Ill has been added to the balance of the note receivable.

12


June 30, 2012 and 2011

Note S - Line of Credit

The Organization has a $450,000 line of credit at TD Banknorth. The interest rate applied to the outstanding principal balance is 2.0% above the prime rate (5.25% at June 30, 20 12 and 2011 ). The line is collateralized by substantially all ofthe Organization's assets. As of June 30, 2012 and 2011, the outstanding balance on the line was $422,464 and $ 149,500, respectively.

Note 6- Notes Payable

Notes payable to AI Wainwright CommuniFund F, LLC in the original principal amounts of $6,9 16,180, $2,496,820, $425,000, and $250,000. The notes provide for quarterly payments of accrued interest, an interest rate of 1.03%, and mature in October 2051. The notes are secured by the property and other assets of the Organization.

Note payable to Eastern Bank in the original principal amount of up to $2,864,032. The note provides for monthly payments of accrued interest and matures in October 2013. Interest is calculated utilizing the two year Classic Advance Rate plus 275 basis points with a floor of3.5% (3.56% at June 30, 20 12). The note is secured by the property and other assets of the Organization.

Note payable to Massachusetts Development Finance Agency in the original amount of $425,000. The note provides for monthly payments of accrued interest, an interest rate of 2.00%, and matures in October 20 17. The note is secured by the property and other assets of the Organization.

Note payable to Lowell Development and Financial Corporation in the original amount of $250,000. The note provides for monthly payments of accrued interest, an interest rate of 3.00%, and matures in October 2018. The note is secured by the property and other assets of the Organization.

13

2012 2011

$ 10,088,000 $

1,303,873

425,000

250,000

$ 12,066,873 __...$ _ _ _ _


June 30, 2012 and 2011

Note 6- Notes Payable (continued)

The future minimum payments on notes payable at June 30 are as follows:

201 3 2014 2015 2016 2017 Thereafter

Total

$ 1,303,873

10,763,000

$ 12,066,873

In connection with Hurren St., Inc.'s note agreements with AI Wainwright CommuniFund F, LLC, UTEC entered into a put and call agreement with U.S. Bancorp Community Development Corporation, who is the sole member of UTEC Investment Fund, LLC, who has made a qualified equity investment in AI Wainwright CommuniFund F, LLC.

Under the terms of the agreement, UTEC (the "Purchaser") granted U.S. 13ancorp Community Development Corporation (the "Investor") the option (to "Put") to sell the their interest in UTEC Investment Fund, LLC to UTEC at any time during the period beginning at the end of the Tax Credit Investment Period and ending six months after the investor receives notice from the Purchaser (after the end of the Tax Credit Investment Period) that the Investor may exercise its option (the "Put Option Period"). If, at any time during the Put Option Period, the Investor elects to sell its interest, it shall give the Purchaser notice of such election (an '~Election Notice"). Within thirty days after delivery to the Purchaser of an Election Notice from the Investor, the Purchaser or its assignee shall pay to the Investor a purchase price in an amount equal to $ 1,000.

In the event that the Investor does not deliver an Election Notice to the Purchaser during the Put Option Period, the Purchaser shall have the right and option (the "Call"), at any time during the six month period following the Put Option Period (the "Call Option Period") to purchase the interest in UTEC Investment Fund, LLC for an amount (the "Call Price") equal to the fair market value of the interest, as determined by mutual agreement among the parties, or if there is no such agreement, then by a qualified independent appraiser.

Once UTEC obtains U.S. Bancorp Community Development Corporation's interest in UTEC Investment Fund, LLC, UTEC will be in a position to forgive the debt that is owed by Hurren St., Inc.

14


June 30, 2012 and 2011

Note 7- Temporarily Restricted Net Assets

Temporarily restricted net assets are available for the following purposes:

2012 To support UTEC's youth programming $ 329,753 To renovate UTEC's building

Total temporarily restricted net assets $ 329,753

Note 8 - Contract Revenue

2011 $ 111,304

1,009.298 $ 1,120,602

The Organization receives funding from various contracts to assist in administrating its programs. These contracts are subject to possible audit by the appropriate agencies. In the opinion of management, the results of such audits, if any, will not have a material effect on the financial position of the Organization as of June 30, 2012 or on the change in its net assets for the year then ended.

Note 9 - In-kind Contributions

During the year ended June 30, 20 12, the Organization purchased a building located on Central Street in Lowell, Massachusetts. The difference between the fair market value and purchase price in the amount of $510,200 has been recognized as an in-kind contribution and an equal amount has been capitalized as property. There were no inkind contributions related to the purchase of property during the year ended June 30, 2011.

Note 10- Retirement Plan

The Organization maintains a qualified retirement plan under Internal Revenue Code Section 401 (k) covering all employees meeting certain eligibility requirements. The plan allows for employees to contribute pre-tax income, as defined and limited by the Internal Revenue Code. The Organization may make discretionary contributions to the Plan as determined by the Board of Directors. No discretionary contributions were made in 2012 and 201 t.

15


June 30, 2012 and 2011

Note 11 -Interest Expense

The Organization follows the policy of capitalizing interest as a component of the cost of property and equipment constructed for its own use. Total interest incurred and charged to operations was $78,424 and $2,816 during the years ended June 30, 2012 and 20 II , respectively. Total interest capitalized during the year ended June 30, 201 2 was $77, 138. No interest was capitalized during the year ended June 30, 20 I I.

Note 12- Related Party Transactions

During the years ended June 30, 20 I2 and 2011, the Organization paid $943 and $51 2, respectively to a law firm where one of the members of the Board of Directors is a partner for legal services provided to the Organization. In addition, the Organization maintained a certificate of deposit with Enterprise Bank, which employs a member of the Organization's Board ofDirectors.

Note 13- Subsequent Events

ASC 855-10, "Subsequent Events," defines further disclosure requirements for events that occur after the statement of financial position date but before financial statements are available to be issued. ln accordance with ASC 855-10, the Organization's management has evaluated events subsequent from June 30, 2012 through May 14, 2013, which is the date the financial statements were available to be issued. There has been no material event noted during this period that would either impact the results reflected in this report or the Organization's results going forward.

16

Executive Board of Directors

Updated October 2013

** Denotes residence in designated low/moderate neighborhoods. (M or F denotes Male or Female)

UTEC staff list available online at http://www.utec-lowell.org/contact/staff

David Brown (M), Treasurer

Commercial Lending Officer

Enterprise Bank and Community Trust

Term ends: July 2014

Residence: Westford, MA

Richard Cavanaugh (M), President

Founding Partner

Gallagher and Cavanaugh, LLP


Residence: Lowell, MA

Luis Garay (M)

Community Representative / Youth Client


Residence: Lowell, MA**

Jim Geraghty (M)

Executive Director

Morgan Stanley Private Wealth Management


Residence: Westford, MA

Belinda Juran (F), Vice President

Partner

WilmerHale



Kenneth Lavallee (M)

Security Specialist and Bank Officer

Enterprise Bank and Trust Company

Former Chief of Lowell Police Department


Residence: Chelmsford, MA

Kathy Muldoon (F)

Homelessness Programs

Community Teamwork, Inc.



Chirayu Patel (M)

Financial Analyst

Raytheon Company



Susan Smith (F), Clerk/Secretary

Student Support Services

Lowell High School



Megan Phillips (F)

Community Representative/Youth Client



http://www.utec-lowell.org/contact/staff

~~<ii\\ IRS D<.:pd i llli<.: i ll or the T rcasmy .;/t!b"JJ/ lnlcrna l 1\t•\'<'IIIJc SN\'kt•

00027 3

P.O. Box 2508 Cincinnati OH 45201

UNITED TEEN EQUALITY CENTER % GREGG CROTEAU 34 HURD ST LOWELL MA 01852-2206347

In reply refer to: 0248248320 Aug. 12, 2008 LTR 4168C EO 38-3669532 000000 00 000

00015265 BODC: TE

Employer Identification Number: 38-3669532 Person to Contact: Ms. Mills

Toll Free Telephone Number: 1-877-829-5500

Dear Ta x payer:

This is in response to your request of Aug. 01, 2008, regarding your tax-exempt status.

Our records indicate that a determination letter was issued in September 2003, that re cogn ized you as exempt from Federal income tax, and discloses that you are currently exempt under section 501Cc)(3) of the Internal Revenue Code.

Our records also indicate you are not a private foundation within the meaning of section 509(a) of the Code because you are described in section 509(a) (2).

Donors may deduct contributions to you as provided in section 170 of the Code. Bequests, legacies, devises, transfer s, or gifts to you or for your use are deductible for Federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code.

If you have any questions, please cal l us at the telephone number shown in the heading of this letter.

Sincerely yours,

Michele M. Sullivan, Oper. Mgr. Accounts Management Operations I

INTERNAL REVENUE SERVICE P. 0. BOX 2508 CINCINNATI, OH 45201

Date: SEP 1 G 2003

UNITED TEEN EQUALITY CENTER 10 KIRK ST LOWELL, MA 01850-1005

Dear Applicant:

DEPARTMENT OF THE TREASURY

Employer Identification Number: 38-3669532

DLN: 17053071016023

Contact Person: GAYLE MADAMS

Contact Telephone Number: (877) 829-5500

Accounting Period Ending: June 30

ID# 95073

Foundation Status Classification: IRC 170 (b) (1) (A) (vi)

Advance Ruling Period Begins: February 27. 2003

Advance Ruling Period Ends: June 30, 2007

Addendum Applies: No

Based on information you supplied, and assuming your operations will be as stated in your application for recognition of exemption, we have determined you are exempt from federal income tax under section 501(a) of the Internal Revenue Code as an organization described in section 501(c) (3).

Because you are a newly created organization, we are not now making a final determination of your foundation status under section 509{a) of the Code. However, we have determined that you can reasonably expect to be a publicly supported organization described in sections 509(a) (1) and 170(b) (1) (A) (vi).

Accordingly, during an advance ruling period you will be treated as a publicly supported organization, and not as a private foundation. This advance ruling period begins and ends on the dates shown above.

Within 90 days after the end of your advance ruling period, you must send us the information needed to determine whether you have met the requirements of the applicable support test during the advance ruling period. If you establish that you have been a publicly supported organization, we will classify you as a section 509(a) (1) or 509{a) {2) organization as long as you continue to meet the requirements of the applicable support test. If you do not meet the public support requirements during the advance ruling period, we will classify you as a private foundation for future periods. Also, if we classify you as a private foundation, we will treat you as a private foundation from your beginning date for purposes of section 507(d) and 4940.

Grantors and contributors may rely on our determination that you are not a private foundation until 90 days after the end of your advance ruling period. If you send us the required information within the 90 days, grantors and contributors may continue to rely on the advance determination until we make

Letter 1045 (DO/CG)

-2-

UNITED TEEN EQUALITY CENTER

a final determination of your foundation status.

If we publish a notice in the Internal Revenue Bulletin stating that we will no longer treat you as a publicly supported organization, grantors and contributors may not rely on this determination after the date we publish the notice. In addition, if you lose your status as a publicly supported organization, and a grantor or contributor was responsible for, or was aware of, the act or failure to act, that resulted in your loss of such status, that person may not rely on this determination from the date of the act or failure to act. Also, if a grantor or contributor learned that we had given notice that you would be removed from classification as a publicly supported organization, then that person may not rely on this determination as of the date he or she acquired such knowledge.

If you change your sources of support, your purposes, character, or method of operation, please let us know so we can consider the effect of the change on your exempt status and foundation status. If you amend your organizational document or bylaws, please send us a copy of the amended document or bylaws. Also, let us know all changes in your name or address.

As of January 1, 1984, you are liable for social security taxes under the Federal Insurance Contributions Act on amounts of $100 or more you pay to each of your employees during a calendar year. You are not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA) .

Organizations that are not private foundations are not subject to the private foundation excise taxes under Chapter 42 of the Internal Revenue Code. However, you are not automatically exempt from other federal excise taxes. If you have any questions about excise, employment, or other federal taxes, please let us know.

Donors may deduct contributions to you as provided in section 170 of the Internal Revenue Code. Bequests, legacies, devises, transfers, or gifts to you or for your use are deductible for Federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code.

Donors may deduct contributions to you only to the extent that their contributions are gifts, with no consideration received. Ticket purchases and similar payments in conjunction with fundraising events may not necessarily qualify as deductible contributions, depending on the circumstances. Revenue Ruling 67-246, published in Cumulative Bulletin 1967-2, on page 104, gives guidelines regarding when taxpayers may deduct payments for admission to, or other participation in, fundraising activities for charity.

You are not required to file Form 990, Return of Organization Exempt From Income Tax, if your gross receipts each year are normally $25,000 or less. If you receive a Form 990 package in the mail, simply attach the label provided, check the box in the heading to indicate that your annual gross receipts are normally $25,000 or less, and sign the return. Because you will be treated as a public charity for return filing purposes during your entire advance ruling period, you should file Form 990 for each year in your advance ruling period

Letter 1045 (DO/CG)

-4-

UNITED TEEN EQUALITY CENTER

If you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter.

Sincerely yours,

'~*~' a et ,~ ~'

Lois G. Lerner Director, Exempt Organizations

Rulings and Agreements

Letter 1045 (DO/CG)

AGM COMMON PROPOSAL FORM - owfortefdn.orgowfortefdn.org/images/2014_UTEC.pdf · AGM COMMON PROPOSAL FORM . FULL PROPOSAL NARRATIVE. The Full Proposal Narrative is to provide a complete

Documents