The closer I get to the KIPP story, the more bizarre and disturbing it gets from every angle.
Let's take a peak at administrative costs first. Prior to 2011, the KIPP Foundation's administrative costs averaged 18 percent of its operating expenses every year. According to Nonprofit Investor, which, by the way, rates KIPP a "Buy," that percentage improved in 2011, so that administrative costs were down to 13 percent of operating expenses. Sounds impressive until you realize that ten executives of the KIPP Foundation collected 20 percent ($2,184,235) of the entire amount that the Foundation paid out in salaries during 2011, which amounted to just over $12.7 million. And if you think Levin and Feinberg are getting low-balled, the amount paid by the KIPP Foundation does not include the other six-figure amounts collected in consultation fees from other local and regional KIPP operations.
Click chart to enlarge.
Page 10 of the 990 lists the KIPP Foundation Expenses. Somehow KIPP spent almost $4 million on travel and over $7 million on "Other." How?
On page 9 of the 990, we find out that since Bill Gates became the effective Sec. of Ed. in 2009, KIPP's federal grant money has skyrocketed. Also we find out that the KIPP Foundation collects over $2 million each year from individual school funds (taxpayer dollars) to pay for using the KIPP name. The cost of doing business!
We find out, too, that Mathematica, which issued a most favorable research report on KIPP in 2012 was paid over $3 million by the KIPP Foundation in 2011. Remember: correlation is not causation!
And how about those hotel and hospitality expenses to go along with that $4 million paid out for travel (see above)?
Let's take a peak at administrative costs first. Prior to 2011, the KIPP Foundation's administrative costs averaged 18 percent of its operating expenses every year. According to Nonprofit Investor, which, by the way, rates KIPP a "Buy," that percentage improved in 2011, so that administrative costs were down to 13 percent of operating expenses. Sounds impressive until you realize that ten executives of the KIPP Foundation collected 20 percent ($2,184,235) of the entire amount that the Foundation paid out in salaries during 2011, which amounted to just over $12.7 million. And if you think Levin and Feinberg are getting low-balled, the amount paid by the KIPP Foundation does not include the other six-figure amounts collected in consultation fees from other local and regional KIPP operations.
Click chart to enlarge.
Page 10 of the 990 lists the KIPP Foundation Expenses. Somehow KIPP spent almost $4 million on travel and over $7 million on "Other." How?
On page 9 of the 990, we find out that since Bill Gates became the effective Sec. of Ed. in 2009, KIPP's federal grant money has skyrocketed. Also we find out that the KIPP Foundation collects over $2 million each year from individual school funds (taxpayer dollars) to pay for using the KIPP name. The cost of doing business!
We find out, too, that Mathematica, which issued a most favorable research report on KIPP in 2012 was paid over $3 million by the KIPP Foundation in 2011. Remember: correlation is not causation!
And how about those hotel and hospitality expenses to go along with that $4 million paid out for travel (see above)?
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