Milton Hershey School and School Trust

“Family/business relationship several of the board of managers members and officers of the filing organization also serve as directors and officers of business entities that are related to this filing organization. Other than their overlapping service on related company boards, they have no family or business relationships with each other. Please see form 990, schedules j and r for further information.”

“Election of members of governing body mr. And mrs. Hershey organized the school through the school trust ("the school trust"), created under the original 1909 deed of trust that, as amended, still governs the operation of the school. The deed of trust sets forth the respective powers and authorities of the trustee and managers of the school and names the hershey trust company ("htc"), a state chartered trust company, as trustee for compensation of no more than $1,000 per year. Under the deed of trust, the trustee is directed to hold title to all school property and all investments and assets that support the school. The managers, in turn, are not permitted to hold school trust assets; but, are otherwise generally responsible for managing the school, including with respect to admissions, the program ofeducating and full-time care of the children, and employment decisions. As required under the deed of trust, the members of the board of managers of the milton hershey school are appointed by the trustee from among the trustee's own board of directors. Since mr. Hershey's death in 1945, all of the stock of htc has been owned by the milton hershey school trust. The same twelve individuals (as of 7/31/21) serve on the board of directors of htc and the board of managers of the milton hershey school.”

“Form 990 review process the form 990 is reviewed by the organizations' management and independent tax advisor, who signs the return as the "paid preparer." the audit committee of the board of managers and the trustee reviews and discusses the form 990 at one of its meetings prior to filing the return with the irs. Additionally, the form 990 is provided to the full board of managers, noting key disclosures, prior to the filing of the form 990 with the irs.”

“Conflict of interest the board of managers of milton hershey school operates under a conflict of interest policy which requires directors to disclose "all actual or potential conflicts of interest" with milton hershey school and school trust or hershey trust company. The conflicts policy cannot be modified or amended without the prior written approval of the pennsylvania office of attorney general ("pa oag"). The milton hershey school's conflict of interest policy is applicable to all school employees and requires the school's officers, managers, and supervisors to respond annually to a conflict disclosure survey. All disclosed conflicts are reviewed by the school's conflict of interest committee and any corrective action required as a result of the disclosed conflict is addressed with the employee who made the disclosure and their supervisor. The conflict of interest policy covering officers and other key employees of hershey trust company, trustee for milton hershey school and school trust, is documented in hershey trust company's ethical standards, conflict of interest, and code of conduct sections of its policy manuals. Each manager, director, officer, and key employee is required to avoid all activity that could create a conflict of interest or even give an appearance of a conflict of interest. Any conflicts of interest are to be reported as soon as practical after they become aware of such a conflict. Annually, each manager, director, officer and key employee is required to complete an annual statement of disclosure. The forms identify vendors, investments, other board memberships, and family members that could give rise to conflicts of interest. The statements are reviewed by the general counsel of hershey trust company, along with the chair of the nominating & governance committee in order for them to be aware of activities that could give rise to conflicts of interest. The results of this review are then documented and shared with the nominating & governance committee and then the full board.”

“Compensation process an independent compensation consultant evaluates and compares the compensation of the officers and key employees of milton hershey school to similarly qualified persons in functionally comparable positions at similarly situated organizations to determine that it is fair and reasonable. This process occurs at regular intervals thereafter, but not less frequently than every five years. The compensation information is reviewed and approved by the board of managers, the governing body of the milton hershey school, who does not have any conflict of interest with respect to the compensation arrangements of the officers and key employees. The review of the compensation of the officers and key employees, including detail on the deliberations and decisions, is contemporaneously documented within the minutes from the board meeting. A file with position descriptions, resumes of officers and key employees, the report of the independent compensation consultant and a copy of the applicable board minutes is maintained by milton hershey school and school trust. The compensation of the officers and key employees of hershey trust company, trustee of the school trust, is determined by periodic review (generally, at least every three years) by third party compensation consultants to determine it is fair and reasonable. The members of the board of managers of milton hershey school do not receive any direct compensation from milton hershey school. The managers receive compensation from hershey trust company as directors of the hershey trust company in accordance with its bylaws and the pennsylvania office of attorney general agreement.”

“State filing of form 990 the form 990 is not required to be filed in the state of pennsylvania; however, a copy is provided to the pennsylvania office of the attorney general for their review.”

“Public availability of governing documents copies of the deed of trust which establishes the milton hershey school and school trust, and the conflict of interest policy are posted on the milton hershey school website. The milton hershey school and school trust has its form 990 posted on another website, guidestar. Included in the 990 are certain financial statement components for review. The form 990 and tax exemption letter are provided to anyone who requests them in accordance with irs regulations.”

“Hershey trust company is listed as an independent contractor. Milton hershey school reimburses hershey trust company for the shared services (compensation and benefits) of certain individuals who perform services for both hershey trust company and milton hershey school. The school trust reimburses hershey trust company for investment services.”

“Milton hershey school and school trust mission the mission of milton hershey school is to nurture and educate children in social and financial need so they can lead fulfilling and productive lives. During the 2020-2021 school year, milton hershey school marked its 111th year as a home and school for children from poverty in need of care, support, and resources. Since the school's founding in 1909, families experiencing financial hardship and the complexities poverty creates in their lives have enrolled their children to benefit from the school's whole child approach to education and programming that comes at no cost to students or their families. The vision of founders milton s. Hershey and his wife catherine, as well as the deed of trust they signed, continues to guide the school today. Because of the hersheys' generosity and the dedicated efforts of staff, the school was able to provide best-in-class education, 24/7 care, and unparalleled resources to students in 2020-2021 when they needed it most. The school remained open, holding daily in-person classes for the entirety of the school year to support students' growth and development. With a comprehensive health and safety plan in place, milton hershey school proactively responded to covid-19 pandemic challenges and had a successful year as a residential school addressing the needs of students and their families. During the fall of 2020, the school unveiled its new five-year strategic plan, the milt plan. The initiative was developed using in-depth research, education best practices, and input from students and staff in order to focus on four key areas: modeling character and well-being; innovating career-focused education; leveraging impact; and teamwork to strengthen community alignment and engagement. Advancements were made in all areas of the strategic plan during the 2020-2021 school year. An example of leveraging impact was the launch of the school's early childhood education initative, catherine hershey schools for early learning. In furthering our mission, more pennsylvania children will benefit from the hersheys' vision. As subsidiaries of milton hershey school, up to six cost-free early childhood resource centers will initially be developed across pennsylvania. Catherine hershey schools for early learning will educate and support children ages birth to age five from economically disadvantaged and at-risk backgrounds. At the centers, students will engage in a curriculum that supports educational, social, emotional, and cognitive development, and families will have access to services through a dedicated family resource center. The goal of this investment is to help younger children and their families in breaking the cycle of poverty earlier in the child's developmental and educational journey. The school aims to provide each student with high quality learning experiences and development opportunities in the classroom and beyond. Throughout the 2020-2021 school year, milton hershey school focused on being the reliable resource families needed while they navigated the pandemic. This involved a commitment to keeping their children safe, learning in person, and benefiting from full access to the school's wraparound services and resources, like food, clothing, a nurturing home life, medical, dental, psychological, behavioral, and social work. In the 2020-2021 school year, 1,984 students from low-income families benefited from milton hershey school's cost-free, private, coeducational home and pre-k through 12th-grade education. Students live at milton hershey school as part of the home life, residential, program. Each student has a safe and supportive environment to call home under the watchful care, supervision, and support of a married houseparent couple. These experienced and trained adults care for 8-12 students of similar ages and the same gender in one of approximately 190 student homes across campus. When students reach their senior year, they take part in the trans”

“In addition, whether they are entering college or technical school, the workforce, or the military, milton hershey school provides comprehensive and individualized support to students and graduates through the graduate programs for success (gps) division. Dedicated career counselors and transition specialists support students and alumni of all ages. Career counselors provide high school students with mentorship and guidance about job interviews, college applications, and transportation to orientations. Transition specialists provide targeted support to young alumni in recognition that every student's path to success is different. Form of organization milton hershey school and school trust is an integrated tax-exempt organization composed of both the not-for-profit corporation, milton hershey school, acting as "managers" under the deed of trust, and the school trust itself. This informational return is required to include the expenses of the organization as a whole, with detail as required by the form instructions. As a result, this return includes all expenses of serving the students enrolled in the school and scholarship costs for alumni pursuing continuing education, as well as the costs associated with administering the investments held in the school trust. Form 990, part i, line 5 this figure includes w-2 forms filed within the tax year: all ancillary roles, part-time internships and work experience for students on campus, positions which have been vacated and filled by another individual within the year, and one-time event workers, for example. Milton hershey school employs approximately 1,300 full-time staff.”

“PROGRAM SERVICE ACCOMPLISHMENTS MILTON HERSHEY SCHOOL SEEKS TO NURTURE AND EDUCATE THE "WHOLE CHILD," WHICH MEANS THE SCHOOL PROVIDES FOR EACH CHILD IN A COMPREHENSIVE MANNER - COVERING THE EXPENSES OF, BUT NOT LIMITED TO THE FOLLOWING: - THE EDUCATION OF STUDENTS IN STATE-OF-THE-ART CLASSROOMS WITH SMALL CLASS SIZES AVERAGING 15 STUDENTS PER CLASSROOM - THE PHYSICAL, MEDICAL, DENTAL, AND PSYCHOLOGICAL CARE OF ALL STUDENTS - CLOTHING, FOOD, AND ROOM AND BOARD - CAREER AND TECHNICAL TRAINING, COLLEGE COURSES BEFORE GRADUATION, VISUAL AND PERFORMING ARTS, MUSICAL INSTRUCTION, ATHLETIC PROGRAMS AND CAMPS, AND ENVIRONMENTAL AND AGRICULTURAL EDUCATION OFTEN NEW STUDENTS WHO ENROLL AT THE SCHOOL HAVE FALLEN AT LEAST ONE OR TWO GRADE LEVELS BEHIND BECAUSE OF FACTORS RELATED TO POVERTY, SUCH AS HOMELESSNESS, FAMILY DRUG AND ALCOHOL ADDICTION, MENTAL ILLNESS, OR NEIGHBORHOOD VIOLENCE. OF NEW STUDENTS ENROLLED IN THE 2020-2021 SCHOOL YEAR, THIRTY-THREE PERCENT ATTENDED AT LEAST THREE DIFFERENT SCHOOLS BEFORE ARRIVING AT MILTON HERSHEY SCHOOL. AT MILTON HERSHEY SCHOOL, STUDENTS ARE GIVEN PSYCHOLOGICAL AND EMOTIONAL SUPPORT WHEN NEEDED. CLOSE TO EIGHTY-ONE PERCENT OF STUDENTS RECEIVE ANYWHERE FROM ONE TO NINE SPECIALTY SERVICES AND SEVENTEEN PERCENT RECEIVE TEN OR MORE SERVICES. DESPITE THESE CHALLENGES, MILTON HERSHEY SCHOOL STUDENTS ARE RESILIENT AND HAVE HIGH POTENTIAL FOR SUCCESS IN THE SCHOOL'S UNIQUE NURTURING ENVIRONMENT. IN ADDITION TO HOUSING, FOOD, AND CLOTHING, EACH STUDENT RECEIVES REGULAR MEDICAL, VISION AND DENTAL CHECKUPS FROM THE SCHOOL, AS WELL AS ANY NECESSARY HEALTH SERVICE OR MEDICATION. DURING SCHOOL YEAR 2020-2021, THERE WERE 111,185 HEALTH SERVICE VISITS BY STUDENTS TO THE SCHOOL'S MEDICAL PROFESSIONALS DURING THE REPORTING YEAR, IN ADDITION TO 47,978 DENTAL PROCEDURES PERFORMED ON STUDENTS. A STRONG FOCUS ON CAREER AND TECHNICAL EDUCATION, JOB SHADOWING, AND HANDS-ON LEARNING THROUGH INTERNSHIPS, CO-OPS, AND PRE-APPRENTICESHIPS HELPS TO PREPARE STUDENTS FOR LIFE BEYOND MILTON HERSHEY SCHOOL. STUDENTS IN ALL GRADE LEVELS, INCLUDING ELEMENTARY STUDENTS, ARE EXPOSED TO AGE AND GRADE APPROPRIATE CAREER AND TECHNICAL EDUCATION. YOUNG LEARNERS START WITH HANDS-ON ACTIVITIES AND GUEST SPEAKERS WHILE HIGH SCHOOL STUDENTS COMPLETE INTERNSHIPS AND ACCREDITED INDUSTRY CERTIFICATIONS. SINCE 2012, EVERY GRADUATING SENIOR HAS EARNED AT LEAST ONE INDUSTRY-RECOGNIZED NATIONAL CERTIFICATION BY PASSING AN INDUSTRY-APPROVED TEST. THE CLASS OF 2021 EARNED A TOTAL OF 1,732 INDUSTRY-RECOGNIZED CERTIFICATIONS AND NINETY-TWO PERCENT OF GRADUATING SENIORS OBTAINED AT LEAST THREE CERTIFICATIONS. THERE ARE CURRENTLY TWELVE CAREER PATHWAYS THAT STUDENTS ARE ABLE TO PURSUE, INCLUDING: BUSINESS/FINANCIAL MANAGEMENT & ACCOUNTING; LAW, PUBLIC SAFETY, & SECURITY; COMPUTER SCIENCE & INNOVATION; AGRICULTURE & NATURAL RESOURCES; AND EDUCATION & HUMAN SERVICES. ------------------- THIS TUITION-FREE, COMPREHENSIVE PROGRAM, INCLUDING PHYSICAL CARE AS WELL AS EDUCATIONAL PROGRAMMING IN ACADEMIC, HOME LIFE AND COMMUNITY/CAREER SETTINGS, HAS AN ANNUAL COST OF: TOTAL PROGRAM EXPENSES: 234,335,365 LESS: LINE 22 DEPRECIATION (38,364,921) LINE 2 GRANTS (5,100,278) -------------- TOTAL EXPENSES 190,870,166 TOTAL NUMBER OF STUDENTS: 1,984 GAAP Cost per Student - Total Expenses (Part IX Line 25) $303,768,377 (TOTAL EXPENSES/1,984) = $153,109 Total Annual Cost per Student- School and Trust Total Program expenses less depreciation (Part IX line 22) and CES Grants (Part IX line 2) $190,870,166 (TOTAL EXPENSES)/1,984 (TOTAL NUMBER OF STUDENTS) = $96,205 MHS DIRECT COST PER STUDENT - SCHOOL ONLY A PREMIER BOARDING SCHOOL LIKE MILTON HERSHEY SCHOOL, OFFERING SIMILAR ACADEMIC PROGRAMMING AND SMALL CLASS SIZES, CHARGES APPROXIMATELY $60,000 PER YEAR, WITHOUT PROVIDING PERSONAL EFFECTS LIKE CLOTHING, TECHNOLOGY, TRANSPORTATION, OR CAREER TRAINING AND INTERNSHIPS. ADDITIONALLY, MILTON HERSHEY SCHOOL ASSUMES THE COST FOR MEDICAL, PSYCHOLOGICAL, DENTAL, ORTHODONTIC, SOCIAL W”

“Other fees for service this amount is for hospital, medical, and dental services provided for the students. Form 990, part xi, line 9 reconciliation of net assets increase in unrecognized pension service cost $24,100,845”