On December 24, 2011, John Goldston issued a report on Philadelphia Youth Network with a "BUY" rating. Nonprofit Investor ("NPI") is a platform for the creation and distribution of free, in-depth research on charity organizations by volunteers. If you believe there are any inaccuracies or errors in any report, please contact us.

1. NONPROFIT INVESTOR
I N D E P E N D E N T R E S E A R C H F O R P H I L A N T H R O P Y
Philadelphia Youth Network SUMMARY
Philadelphia Youth Network (“PYN”) provides college preparation
Nonprofit Investor Rating: services, career training programs and employment and internship
BUY opportunities by leveraging its relationships with local youth
organizations, community centers, secondary and post‐secondary
Vision Statement academic institutions and employers.
All of Philadelphia’s young people will take
their rightful places as full and contributing STRENGTHS
members of a world‐class workforce for the ▲ Strong reputation within Philadelphia community. PYN has
region. grown from a small non‐profit subsidiary into an independent,
Mission Statement citywide organization serving thousands of local students.
Serving as a catalyst for collective action, PYN
▲ Growing and sticky partner network of employers, academic
makes connections among individuals,
institutions and youth organizations. Over 150 employers are
organizations and systems and increases
currently involved in WorkReady, PYNs largest school‐to‐career
capacity and resources in order to provide
initiative, up substantially from 50 employers six years ago.
world‐class preparation so Philadelphia’s
youth can thrive in a regional and global ▲ Number of students benefitting from PYN programs continues
economy. to grow each year. WorkReady placed over 11,000 students in 2010,
compared to only 150 students in 2003.
Financial Overview
▲ Strong financial performance and stable expense/revenue ratio.
$ in MM, Fiscal Year Ended June 30
15% revenue and support CAGR over the past three years, which has
2008 2009 2010 funded an increase in the breadth and depth of program offerings.
Revenue and Support $23.2 $29.5 $31.5
Operating Expenses $23.1 $29.5 $31.5 CAUTIONS
▼ Funding Concentration. 85% of funding comes from six
% of Total: government programs and loss of funding from any single program
Program Expenses 93.5% 94.2% 95.1%
will have a material (>10%) impact on total revenue and support.
G&A 6.4% 5.7% 4.9%
Fundraising 0.1% 0.1% 0.0% ● Long‐term evaluation horizon makes current performance
difficult to evaluate. Access to long‐term employment data among
Year Founded: 1999 PYN participants is not readily available.
Contact Details
Philadelphia Youth Network RECOMMENDATION: BUY
714 Market Street, Suite 304
Philadelphia, PA 19106 Since being founded in 1999 as a small non‐profit subsidiary, PYN has
(267) 502‐3800 grown into an independent, citywide organization with substantial support
http://www.pyn.org
within and recognition from the Philadelphia community. Having
EIN: 23‐2993155
developed relationships with key policymakers and stakeholders, the
Analyst: John Goldston company appears to be in a great position to continue to grow and create
Peer Review: E. Wang, K. Chao opportunities for Philadelphia’s youth for years to come.
Publication Date Nonprofit Investor Research | nonprofitinvestor.org
December 24, 2011

2. OVERVIEW OF PHILADELPHIA YOUTH NETWORK’S ACTIVITIES
Created in 1999 as a vehicle to sustain and extend the work of Philadelphia’s highly successful school‐to‐career system,
PYN has grown into a nationally‐recognized intermediary organization for public and private investments targeted
toward improving the educational and workforce development outcomes of the city’s youth.
Workforce Initiatives (75% of program expenses) Educational Initiatives (25% of program expenses)
PYN workforce initiatives focus on creating Key educational programs include Project U‐Turn, the
opportunities for youth to gain work experience, Student Success Centers and Gear‐Up initiatives.
exposure to potential career opportunities and general
employment skills that are helpful over the long term. Project U‐Turn
WorkReady Philadelphia
Project U‐Turn is a collective effort to understand and
Workforce opportunities are mainly offered through resolve Philadelphia’s dropout crisis, focusing on policy,
WorkReady Philadelphia, a broad‐based partnership resources, stakeholder involvement and the quality and
program with local employers that places Philadelphia’s quantity of educational opportunities. In 2010, the program
low‐income students and out‐of‐school youth aged 14‐ helped refer over 2,000 out‐of‐school youth to educational
24 in local jobs. WorkReady currently leverages a options and enlisted over 1,350 adults to act as youth
partner network over 150 employers, up substantially mentors.
from only 50 employers in 2005.
Student Success Centers
E3 Centers (Empowerment, Education & Employment)
Student Success Centers have been established at eleven
PYN also contracts with local youth‐serving
high schools (up from eight schools in 2008) to offer college
organizations to operate community centers serving
and career information and a support system. Participation
out‐of‐school youth returning from juvenile placement.
in these centers has had a statistically significant impact on
The centers offer activities that teach occupational and
student outcomes, including higher grades and lower
life skills, and are supported by the Philadelphia
percentage of total school days missed from suspension.
Department of Human Services and Juvenile Probation
Department. The effectiveness of these re‐integration
Gear‐Up
centers can be seen through lower recidivism rates
among those who attend.
Gear‐Up is a discretionary federal grant program designed to
increase the number of low‐income students who are
prepared for post‐secondary education by partnering with
students beginning in middle school. PYN has received a six‐
year grant to provide services at 18 high‐poverty middle
schools and 4 high schools.
PROGRAM RESULTS AND EFFECTIVENESS
PYN has provided local youth access to jobs and internships for over 10 years, and all indications conclude that the
organization has been successful to date. Since being founded in 1999 as a small non‐profit subsidiary, PYN has grown
into an independent, citywide organization with substantial support within and recognition from the Philadelphia
community. Having developed relationships with key policymakers and stakeholders, the company appears to be in a
great position to continue to grow and create opportunities for Philadelphia’s youth for years to come.
Philadelphia Youth Network | Nonprofit Investor Research 2

3. Early data indicates that youth supported by PYN programs have higher college and graduate school placement rates,
are more likely to be permanently employed post‐graduation and have lower recidivism rates. Year after year, 90% ‐
100% of employers submit evaluations saying they were satisfied with the work performance of their PYN‐placed
student, and would support taking on students in future years.
The company has shown a successful track record in increasing the breadth and depth of its employer partner network
that caters to job and internship‐seeking students, and as a result has been able to serve over 10,000 students each year.
PYN has shown the ability to convert an initial relationship into a long‐term partnership with a high retention rate year
after year.
On the educational initiatives side there is also evidence that PYN program services deliver superior student outcomes.
Students that participate in PYN’s Student Success Centers are more likely to be promoted to the next grade level,
receive higher grades and miss fewer days of school due to unexcused absences or suspension. All of PYN’s educational
programs continue to expand their reach to more students across a growing list of high schools, middle schools and
community centers.
PYN has a stable senior management team and strong board of directors that appears capable of guiding the non‐profit
as it continues to grow. The current CEO is a co‐founder and former COO of PYN, having been with PYN since inception
in 1999. Other key management and personnel have been employed by PYN for 5+ years, and the board has had
minimal turnover since 2009, suggesting that key decision makers are intimately familiar with the day‐to‐day operations
and understand the specific operations of the non‐profit that make it successful.
TRANSPARENCY
PYN is very transparent with its financial and operational reporting. Annual reports from 2002‐2010 containing
summary financial information and a list of program supporters (funders, partners and employers) are readily accessible
on the website. The annual report also provides contact information and instructions on how to obtain a detailed
company audit from the independent auditor. Form 990s through the year ended 6/30/10 are also available on
www.guidestar.org.
FINANCIAL OVERVIEW
REVENUE
Funding Mix (2009 and 2010, cumulative)
PYN has achieved significant, consistent
revenue and support growth of 16% annually Temporary Assistance for
Needy Families (TANF)
since 2005 and has increased revenue and
Workforce Investment Act
support each year since being founded, with the (WIA)
4.6%
exception of 2004. 85% of revenue and support 8.4% School District of PHL
23.9%
comes from federal, state and city grants, with 9.1%
the other 15% coming from foundations, City of PHL
corporations and individuals. The increase in 10.1%
Foundations
funding over time is entirely from larger 18.5%
12.3%
government grants, while private donor American Recovery and
13.2% Reinvestment Act (ARRA)
contributions have been lumpy and
Commonwealth of PA
unpredictable.
Other
Philadelphia Youth Network | Nonprofit Investor Research 3

4. EXPENSES
Program expenses account for 95% of total expenses. Of the $30mm in program expenses for 2010, approximately
$22mm was associated with workforce initiatives and $7mm was associated with educational initiatives, a split
consistent with prior years. Program expenses are primarily related to education and training services, as well as payroll
assistance for some employers participating in the WorkReady program.
PYN has held management and employee expenses relatively constant at ~ 5% of total revenues and support. CEO and
CFO compensation is clearly laid out in the Form 990, is comparable to what other similarly sized non‐profit peers pay
their executives.
NET ASSETS
PYN has historically put all of its annual revenue and support to work by funding its growing programs, and holds very
little cash in reserves. Total expenses have been 99% ‐ 100% of total revenues in each year since 2005, and the company
has maintained a net asset position of roughly $700k. While this does not indicate a higher ROI on each dollar invested,
it does show that PYN has made a concerted effort to not let funding sit idly, and is able to find uses for the money
provided by its benefactors. We would expect this to be the case given that demand for PYN services outstrips supply.
Total Expense Breakdown (GAAP Basis) Program Expense Breakdown (GAAP Basis)
$ in MM $ in MM
95% $35
$35 94% 93% 94% 100%
$32 $30
$29 90%
$30 $30
$28
80% $6
$25 $23 70% $25 $6
Program Expense % of Total
$22
$21 60% $19 $3
Expenses
$20 $20
Expenses
$5
50% $8
$4
$15 $15
40%
$7
$10 30% $5 $7
$10
20% $16
$5 $12
10% $5 $10 $10
$0 0%
2007 2008 2009 2010 $0
2007 2008 2009 2010
Program Expenses Fund‐Raising Contracted Provider Services Youth Wages, Stipends & Benefits
Management and General Program Expense % of Total In‐kind Expenses Direct Services
Philadelphia Youth Network | Nonprofit Investor Research 4

5.
Detailed Financial Statement
Fiscal Year Ended June 30 2008 2009 2010 CAGR Source:
Revenue and Expenses (GAAP Accounting Basis)
Support and Revenue:
Contracts $22,445,221 $25,587,850 $30,716,525 Annual Report (GAAP)
Contributions 67,515 268,308 246,630 Annual Report (GAAP)
Other Fees 623,149 765,294 506,266 Annual Report (GAAP)
In‐Kind Contributions 270 2,841,079 71,012 Annual Report (GAAP)
Interest and Other 55,886 23,620 5,127 Annual Report (GAAP)
Total Support and Revenues $23,192,041 $29,486,151 $31,545,560 16.6%
% Growth 12.3% 27.1% 7.0%
Expenses:
Contracted Provider Services $9,968,096 $12,173,252 $16,143,000 Annual Report (GAAP)
Youth Wages, Stipends & Fringe Benefits 6,817,214 6,928,139 7,800,065 Annual Report (GAAP)
In‐kind Expenses ‐ 2,841,079 7,012 Annual Report (GAAP)
Direct Services 4,843,735 5,828,902 6,048,501 Annual Report (GAAP)
Total Program Services $21,629,045 $27,771,372 $29,998,578 17.8%
Management and General $1,490,379 $1,681,415 $1,531,642 Annual Report (GAAP)
Fundraising 19,273 13,706 9,363 Annual Report (GAAP)
Total Expenses $23,138,697 $29,466,493 $31,539,583 16.8%
% Total Support and Revenue 99.8% 99.9% 100.0%
Change in Net Assets $53,344 $19,658 $5,977
Net Assets, Beginning of Year $632,549 $685,893 $705,551
Net Assets, End of Year $685,893 $705,551 $711,528
Program Services as % of Total Expenses 93.5% 94.2% 95.1%
Management & General as % of Total Expenses 6.4% 5.7% 4.9%
Fundraising as % of Total Expenses 0.1% 0.0% 0.0%
Cost Per Beneficiary
# of Youth Served Through PYN Programs 16,544 20,000 '08 Annual Report, estimate
Total Expenses $29,466,493 $31,539,583
Total Expense Per Youth $1,781 $1,577
Total Program Services Expenses $27,771,372 $29,998,578
Program Service Expense Per Youth $1,679 $1,500
GROWTH OPPORTUNITIES
Fundraising and Support. Increasing funding from non‐governmental agencies has not been a core focus for PYN to
date. Although a relatively small part of the overall funding pie, a dedicated effort to reach out to more foundations,
businesses and wealthy individuals could drive revenue and support growth and would help protect PYN from the
downside risk of losing funding from government budget cuts. PYN already has full‐time employees handling fundraising,
but the staff may need to be augmented for PYN to achieve meaningful scale with private donors.
Philadelphia Youth Network | Nonprofit Investor Research 5

6. Demand for Services. There remains a substantial underserved population that demands PYN services. Of the 21,000
students who applied for WorkReady programs in FY10, only 11,000 were able to be placed by PYN. PYN can address
the shortfall by either raising additional funding to help cover payroll costs for employers, or growing the employer base
as it has done historically.
ADDITIONAL DILIGENCE AREAS
Funding sources. A better understanding of the policy landscape and the outlook for public funding is critical to
developing an opinion on PYNs ability to scale going forward. The reliability of government funding has not been a
problem for PYN to date; however, the possibility of losing funding is a real risk today that must be considered. PYN
noted in its 2010 Annual Report that several funding streams were reduced due to the recession, but the gap was more
than filled by additional support from the American Recovery and Reinvestment Act, which supported an additional
2,600 summer jobs.
While the federal programs supporting PYN (Temporary Assistance for Needy Families [TANF], Workforce Investment
Act [WIA], American Recovery and Investment Act [ARRA]) are less likely to be eliminated, marginal cuts across the
board will also hinder PYN’s efforts to carry out its programs at current levels.
THIRD PARTY RATINGS
Philadelphia Youth Network has not been rated by other major non‐profit evaluation groups, including Charity Navigator,
GiveWell, GreatNonprofits and GuideStar.
GET INVOLVED
 Become a WorkReady employer – hire an intern and/or offer work opportunities to Philadelphia’s youth
 Join the Young Friends of PYN and support PYN programs through fundraising, events and networking
 Sign up to be a Graduation Coach to guide students through secondary and post‐secondary education
 Join the Project U‐Turn Collaborative to help identify solutions to keep students in school
 Donate: http://www.pyninc.org/donate.php
DISCLOSURES
John does not have any affiliation with Philadelphia Youth Network and has never made a donation to the organization.
NPI analysts and NPI as an organization do not receive any form of compensation from reviewed charities.
Philadelphia Youth Network | Nonprofit Investor Research 6