2008 ANNUAL REPORT

THE BOWERY MISSION &KIDS WITH A PROMISE

RENEWINGHOPE

IN DIFFICULT TIMES

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Dear Friend,

As 2008 came to close, our nation faced a new year of exceptional change, challenge and opportunity. However, one thing has not changed — the commitment of The Bowery Mission and Kids With A Promise to renew hope in New York’s men, women and children. For 130 years we have worked to transform their lives — men homeless on the streets, women suffering from addiction and abuse, children neglected by broken neighborhoods and broken schools.

Our work began in 1879 with the Christian Herald newspaper, which brought exceptional Christian reading into homes and raised funds for humanitarian needs in every corner of the world. Out of this charitable enterprise sprang our two outreach arms, The Bowery Mission and Kids With A Promise. Over the intervening years, we have seen wars, civil unrest and depressions, but by providential grace we have endured them all. Our newspaper may have long ceased publishing, but our commitment to renewing hope in New York City has only strengthened.

Inside we share more of who we are and our work throughout The Bowery Mission and Kids With A Promise. Inside are also stories of individuals who represent the thousands we serve, and those who help us serve: young and old, rich and poor, every shade and color.

I hope you’ll join us in this inspiring task.

Sincerely,

Edward H. MorganPresident

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7 Compassionate Care8 Life Transformation

The Bowery Mission Discipleship Institute The Bowery Mission Women’s Center at Heartsease Home The Bowery Mission Transitional Center Alumni Services

11 Highlights

14 A Promising Future Mont Lawn Camp After Schools Summer Day Camp Leadership Academy

22 Highlights

24 Renewing Hope in New York City 25 Financial Summary 26 Our Board of Directors 27 Our Key Staff

2008 Annual Report Renewing Hope in Difficult Times

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“I finally got out of that pit.”

“I grew up in Washington Heights with a pretty good life, but my growing up stopped quickly at 15 when my son was born. It was really hard, raising a child that young. My parents did what they could, but they’re factory workers, you know? I had to leave school to work … I think the pressure made me want to escape my responsibilities. That’s what led me into drugs when I was 19. Weed, heroin, cocaine, crack … I didn’t realize how far gone I was for a long time. I burned a lot of bridges at home, and that added to my guilt and shame. That’s why I became homeless – I was too ashamed to go home … too ashamed to put the key in the door. I worked a steady job during the day, and at night got high and slept outside. It was my church who helped me see I needed help. When I first got to The Bowery Mission it was hard and I wanted to run away, but they helped me see that I could change. I finally got out of that pit. Now God keeps me, even when I don’t want to keep myself. I know I can’t change the last 20 years, but now I’m accepting my responsibilities and being held accountable. I’m moving forward and taking it one day at a time. My goal is to be a chaplain at The Bowery Mission, and lead others in the right direction … because someone did it for me. I’m not afraid anymore. I’m absolutely more hopeful now …absolutely. I’m Alejandro, I’m 39 years old, and I’m in the Discipleship Institute.”

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Compassionate Care at The Bowery MissionFeeding the Hungry and Sheltering the Homeless

Since 1879, compassion for the troubled has marked our services and the attitude of everyone at The Bowery Mission. Our motto is simple: Serve like you are serving a King. Volunteers from New York and throughout North America helped cook 800 meals every day in our cafeteria at 227 Bowery, contributing a total 36,691 volunteer hours in 2008. Our compassionate care for the homeless does not end with a meal, however: we also offer medical and optometric care, showers, clothing, and a bed for the night to each of our guests.

• Our Chapel Program hosts services three times a day for our guests. Each service is organized and led by our 40-member Bowery Ministry Team, a collection of local churches. Monthly themes center on ministering to the very special needs of the homeless community, imparting this message: hope springs anew from a transformed heart.

• Every Wednesday our on-site clinic, Bowery Medical Services, provides free medical and optometric care. This all-volunteer staff is run by professional medical doctors and optometrists. We saw 551 patients and treated a variety of chronic conditions and disease, including administering flu vaccines. Our optometry clinic helped 55 men and women see better with a brand new pair of free eyeglasses.

• Through our Outreach Program volunteers and staff took more than 34,000 hot meals to the homeless and low-income in various parks in Brooklyn and Manhattan.

• Without our In-Kind Food Operations, serving 800 meals a day would never have been possible. A supportive network of generous Mennonite communities in Pennsylvania, and other partners like Whole Foods Market, Inc., altogether provided more than $2.3 million in gift-in-kind contributions.

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Life TransformationRestoring Hope, Dignity and Relationships

A meal, a shower and some clothes may set life transformation in motion, opening broken hearts to the possibility that life can be different, that they can recover. After that, each man and woman has to make a personal decision to set about the hard and rewarding work of life transformation often energized by a newly found faith in God. In our residential recovery programs, described below and on the next page, counselors help work through addiction and abuse issues, our career center managers help develop employment skills and pursue a better education, and our chaplains give spiritual counsel. Men and women can find new clothes for that interview, and reintegrate into the working world through on-the-job training experiences. When our residents are fully prepared, family, friends and supporters gather for graduation ceremonies to usher our alumni into a new life marked by sobriety and independent living. After graduating, alumni take advantage of a host of services to sustain their stability.

The Bowery Mission Discipleship Institute The Bowery Mission has been ministering to broken men since 1879. For six to nine months, 62 men at a time recover their lives and renew their hope in our dormitory at 227 Bowery. In 2008 a record-breaking 80 graduates walked out of our famous red doors with transformed lives.

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The Bowery Mission Transitional Center In 1994, the City of New York partnered with us to create a residential recovery program for the 5,300 single adult men in the city shelter system. For the past nine years, the Transitional Center has been cited as one of the most effective substance abuse recovery programs in the City. This historic partnership with the City of New York has been fruitful for the 500 men who pass through the doors of The Transitional Center every year. In 2008, 98 men graduated to independent living.

The Bowery Mission Alumni Services For graduates of each residential recovery program we offer a top-notch aftercare program, to help our graduates remain sober and self-sufficient. In 2008, we supported 332 graduates with help finding employment and housing, and hosted retreats, reunions and seminars on relationships, family restoration and parenting.

The Bowery Mission Women’s Center at Heartsease Home Building on our more than a century and a quarter experience of working with homeless men, in 2005 we opened The Bowery Mission Women’s Center at Heartsease Home. The Women’s Center is a 17-bed program focused on helping homeless women gain spiritual grounding, economic empowerment and emotional equipping. Five brave women graduated in 2008, whole again and ready for a new lease on life.

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“I can just stand up now. I’m not afraid.”

“Thirty years. That’s how long unforgiveness, anger and despair ruined my life. The last time I was homeless was in January 2007. Before that I tried to soothe the pain of childhood abuse with drugs, alcohol, men … all of them abused me and controlled me. I was with my mother at that time and drinking a lot, so she asked me to leave. I slept in a tent for two years … it was so hard. I felt like somehow I deserved it — I thought living on the streets affirmed who I was … worthless, shameful … I hated myself. It was a nightmare. That last January was so cold. I caught pneumonia, and they told me I had a seizure due to malnutrition. Suddenly, I slipped into a coma. I woke up six days later and my daughter was there, my mother, my brother … and they were praying for me. I know it was God who filled me up then. After that my brother got me into a faith-based rehab. I transferred from there to The Women’s Center. Debbie, the Director, she is such an inspiration, I just love it so much here. They’re helping me overcome what was done to me when I was young. I can just stand up now. I’m not afraid. All I want to do is go out into the streets and find people like I was. I feel like if someone had come to me and shown me there is hope … that’s what I want to do for others — show them there is hope. I’m Rebecca, I’m 58 years old and I’m in the Women’s Center.”

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Across our programs every day, 993 people received a hot, nutritious meal and 212 people found a warm bed for the night.

142 of our graduates achieved a “Positive Life Outcome”. These men and women:• Have connected to their Creator;• Are connected to family;• Are committed to being

clean and sober; • Have found a job and a place to live;• Have a plan for the future.

Our annual Thanksgiving dinner was gratifying – 665 volunteers cooked and served more than 2,400 meals to homeless New Yorkers.

In January, 200 people attended our opening of About Face, an exhibit featuring portraits of men and women at The Bowery Mission by famed photographer Bill Bernstein.

A new garden graced the Women’s Center, opened in July through a renovation spearheaded by Mrs. Veronica Kelly.

In February, over 400 people attended our ninth annual Valentine’s Day Gala, high atop Rockefeller Center at the Rainbow Room. Rev. A.R. Bernard, Kate Paley and Barbara Bryant were honored and Mayor Bloomberg praised The Bowery Mission. Our friends and supporters raised $1 million to help men and women at The Bowery Mission.

2008 Highlights from Bowery Mission Programs

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“My experience here proves faith really does work wonders.”

“I went to The Bowery Mission Women’s Center the first time with Veronica Kelly. She spoke to me about the beauty and importance of what they were doing there and showed me around the Center. My heart immediately gravitated towards the women there. Then I saw the backyard; at that time it was so disheveled and in desperate need of renovation … my heart immediately gravitated towards the women there — I decided to give them an outside space just as beautiful as it was inside. I helped Veronica raise money for the Women’s Center Garden — the first person I went to was my boss at the New York Mercantile Exchange. After that, the circle of influential supporters just kept expanding. At the Garden’s summer opening, I approached The Bowery Mission’s special events manager about starting a program to get more young professionals involved. It eventually evolved into The Bowery Mission Young Philanthropists — a committed group of young people dedicated to raising money to meet the needs of The Bowery Mission. Detaching from my daily life to help others in need is such a rewarding experience. I hope others can experience this as well … I want men and women, no matter if they are volunteering, raising money, or even benefiting from a program themselves, to know they can come to The Bowery Mission and succeed. My experience here proves faith really does work wonders. I’m Christine Grasso, I’m a Young Philanthropist and I support The Bowery Mission.”

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Kids With A Promise: A Promising Future

New York City’s millions of underprivileged and at-risk children are weighed down and scarred by impoverished communities, broken families, and under-performing schools. Without help, New York City’s children and youth can find their hope and potential snuffed out before they even kindle. Since 1894, Kids With A Promise has been dedicated to breaking the cycle of poverty in the lives of our young people, helping them become accomplished academically, confident in their character, and ready for leadership in their families, communities and wider world.

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“We’re going back next year!”

“Camp is so much fun! We like swimming in the pool and going to the chapel to sing songs. We liked chasing bugs too, except spiders and bees. Well, really only Aaron liked it. We got to sing a lot, and it was good because we got to play with our friends. At home in the Bronx … it’s scary sometimes. Somebody broke in the people’s house downstairs. We like to get out of the house, because we don’t have anything to do, and our parents work and come home at night. But Aaron likes to watch TV, can’t get him away from it. We also really like Mont Lawn Camp because we learn about God. We’re going back next year! I’m Alyssa, I’m 11 … I’m Aaron, I’m 6 … and we go to Mont Lawn Camp!”

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Mont Lawn Camp Our wooded summer camp in the Poconos Mountains is a world removed from the city. A wealth of great experiences met 950 children and youth this past summer at Mont Lawn Camp. Across our sprawling 200 acres, children slept in cozy cabins, greeted the morning with rousing songs in Diebold Chapel, and ate nutritious meals in Fort Plenty. Each activity incorporates the values every child needs to grow in character, competence and confidence, such as responsibility, thanksgiving and faith. Mont Lawn’s hands-on instructional areas educate with new and exciting experiences. In Mr. Al’s Hobby House, arts and crafts grew sophisticated due to the addition of kiln-fired ceramics, needlework and pine car derbies. Campers saw their first goat in our Petting Zoo, and made their own ice cream in the Little Chefs Area. Mont Lawn’s Adventure Program helped form character through age appropriate challenge experiences such as rope courses and the climbing wall. Our teenage campers enjoyed overland hikes, backcountry camping and canoe trips on the Delaware River. In the midst of this excitement, there was plenty of time for a refreshing swim in Diebold Pool, or long talks with one of our 72 trusted summer counselors by the campfire at night. For 114 years, Mont Lawn Camp has given the opportunity of a lifetime to New York’s children. A chance to breathe fresher air than they have ever smelled, see trees as far as they eye can see, to run, jump, play, learn and experience things New York can never offer — a chance to leave it all behind and refresh their hopes in achieving a better future.

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After SchoolsEventually the summer fun comes to a close, and our campers become students, returning to workbooks, desks, and homework. But Kids With A Promise stays at their side, ready with year-round programming to develop every child in academics, faith and character. In 1995, Kids With A Promise expanded to offer After Schools for children ages six to 12 to help our kids combat academic failure and grow in their love of learning. In 2008, four sites, Fort Washington Collegiate Church, Evangelical Church, Fordham Manor Church, and Living Waters Church, hosted 110 children for three hours a day, four days a week. Each After School is linked with school standards, reinforcing literacy and math through project-based learning. Our site staff also provided homework help, shared well-known Bible stories, and led creative arts projects. At the end of the year, every After School site held a performance for parents and community members.

Summer Day CampDuring the summer, not every student can escape the city for Mont Lawn Camp. For them, we have provided a positive summer alternative: Day Camp. Lasting all of June, Day Camp hosted 86 1st – 6th graders in Washington Heights and the Lower East Side for an activity and project-based learning experience incorporating arts, academics and field trips. The theme A New York City Adventure engaged kids in reading and writing about the City’s history, and broadened their horizons through visits to historic sites, such as the Statue of Liberty, the Museum of New York and Central Park.

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“I can be in a safe place to learn …”

“I don’t have a lot of choices sometimes. My neighborhood can be good, but sometimes there is trouble … people are fighting and yelling outside at night, and there are gangs too. So I really like After School because I can be in a safe place to learn and do my homework. We also learn to read the Bible … we just started reading Exodus, but my favorite book is Mark because I know that one the best. I get to read my favorite mystery books too, play with my friends, and get something to eat, because sometimes I don’t get lunch at school. Today we are doing papier mache monsters! I really like After School and I thank the people who support it. I’m Joshua, I’m 11 and I go to After School!”

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The Leadership AcademyThe teenage years are pivotal. Some of the decisions we make — finishing school, dating this person or another, playing football or swimming — can ripple through the rest of our lives. In New York City, teenagers are surrounded by voices competing for their self-esteem, their integrity, their future. Leadership Academy pairs teenage graduates of our After-Schools and Mont Lawn Camp, no longer students but “protégés”, with volunteer adult mentors who give voice to the confidence, character and academic accomplishment we want for our kids. 2008’s theme was GREATS: Godliness, Responsibility, Effective Communication, Achievement, Teamwork and Servant Leadership, and mentors worked with protégés in a series of workshops, events and teambuilding activities to foster growth in each virtue. Saturday meetings also gave the protégés the space to open up to their mentors, to talk about that boy or girl, their fight with mom last week, their struggles with school- work. But the mentors wanted to do more. So they formed a scholarship committee, dedicated to creating a resource guide and raising money to help our protégés get to college. Our 23 mentors had a tremendous impact on these 78 protégés, helping them grow into young individuals of competence, character and confidence.

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“… it’ll teach me how to be more of a leader.”

“I really love my family. My parents are great and very supportive of me. But I live in Castle Hill in the Bronx, and there, there’s a lot of gangs and drugs at night. So I have to be really aware and alert of them. I’ve been going to Mont Lawn Camp since I was 6, and in Leadership Academy for four years. And I love it, I mean, you get to meet up with mentors, have fun, go to retreats. It’s cool. But the best thing is learning about leadership qualities and about God. When I was in 8th grade I wanted to kind of be a thug, you know? Never again though. This program keeps me focused, teaching me right from wrong and how to be patient. My mentor, Rich, is helping me find a way to be in the US Coast Guard or the FBI, I don’t know which one yet. But I’m glad to be able to cut loose all those bad things that were trying to stop me. I’m going to be a counselor-in-training at Camp this summer; it’ll teach me how to be more of a leader. This is a really great program! I’m Manny and I’m in the Leadership Academy.”

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2008 was record-setting. At Mont Lawn Camp attendance increased to 950 campers. At the same time, counseling was enriched by a lower camper to staff ratio, 4:1 this year over 9:1 last year.

At four After School programs hosting 110 students, reading and vocabulary scores increased 20%. Mathematics scores were even more successful, increasing by 43%.

Our Fourth of July Yacht Party aboard the Royal Princess raised $145,000 for Mont Lawn Camp. More than 120 of our closest friends enjoyed front row seats to a spectacular fireworks show in the East River.

Kids With A Promise’s strategic move to the Lower East Side kicked off with a Summer Day Camp and an After School program.

We completed a half-million dollar renovation of Mont Lawn Camp’s signature building, Diebold Chapel, and celebrated the endowment of the swimming and summer arts programs by generous donors.

2008 Highlights from Kids With A Promise

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“I can see their potential.”

“I came here from Boston a few years ago. Back there I used to mentor with Big Brothers and Big Sisters and a youth group, so I came to New York looking for an opportunity to serve. That’s when I found Leadership Academy. You know sometimes these kids, they don’t have a father, or they were raised in a community and go to a school with bad influences. But these kids have so much potential, they just don’t have the right influences around them. So their parents send them here; and that’s the first important step, for the parents to take the initiative. In the Leadership Academy I can sit down with them and see their potential, connect with it, and channel it in the right direction. These kids are extremely bright, but they don’t always know it. I want to give them a sense of their capability. To let them know all things are possible if they believe. I’m Michael Park, I work at Goldman Sachs and I’m a Leadership Academy mentor.”

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Renewing Hope in New York City

All of us at The Bowery Mission & Kids With A Promise are committed to our purpose statement:

We are called to minister in New York City to men, women and children caught in cycles of poverty, hopelessness and dependencies of many kinds, and to see their lives transformed to hope, joy, lasting productivity and eternal life through the power of Jesus Christ.

If these stories have stirred you, we invite you to join us in our mission of renew-ing hope. You are welcome to serve in our soup kitchen. Become a mentor in the Leadership Academy. Teach a class at the Women’s Center. Sponsor a man in the Discipleship Institute. Attend our Valentine’s Day Gala. We ask you to give of yourself and your resources what you can — it takes all of us to renew hope. “Hope deferred makes the heart sick, but when dreams come true there is life and joy.” We have faith in that proverb, and the God who makes it happen. Faith has renewed the hope of thousands we have served, and we are thankful.

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1 Combined summary for Christian Herald Association (The Bowery Mission & Kids With A Promise) and the Christian Herald Housing Development Fund Corporation (The Bowery Mission Transitional Center)

2 Includes legacy gifts ($400K in FY 2008) & contributions to endowments (two gifts totaling $408K in FY 2008)

3 Includes operating grants ($819K in FY 2008) and capital grants ($66K in FY 2008)

4 Difference in 2007 & 2008 totals due to government grants in FY 2007 for capital improvements

5 Includes fees for outside groups using Paradise Lake Retreat Center and nominal fees for After School and Camping programs

6 Includes The Bowery Mission, The Bowery Mission Women’s Center, The Bowery Mission Transitional Center, Alumni Services and Gift-in-Kind Operations

7 Includes Kids With A Promise After School Programs, Day Camps, Leadership Academy, Mont Lawn Camp and Paradise Lake Retreat Center

Financial Summary & Ratios1

Support & Revenue (in the thousands)

Contributions from Individuals2

Foundations & Corporations3

Government Contracts & Grants4

Gifts in KindSpecial EventsInvestments & TrustsProgram Fees5

Volunteer ServicesOtherTotal Support & Revenue

ExpensesProgram Services

The Bowery Mission Homeless Services6

Kids With A Promise Children’s Services7

Total Program Services

Development & Public AwarenessManagement & GeneralTotal Expenses

$4,561 885

1,535 2,338 1,096

438 402

71 86

11,412

$5,965 1,853 7,818

1,764 1,449

11,031

40%8%

13%20%10%

4%4%1%1%

100%

54%17%71%

16%13%

100%

$3,320 737

2,231 1,543 1,168

477 414

70 64

10,024

$5,099 1,791 6,890

1,607 1,114 9,611

33%7%

22%15%12%

5%4%1%1%

100%

53%19%72%

17%12%

100%

2008

2008

2007

2007

Revenue 2008 Expenses 2008 Contributions from Individuals

Foundations & Corporations

Government Contracts & Grants

Gifts in Kind Special Events Investments & Trusts

Program Fees Volunteer Services Other

The Bowery Mission Homeless Services

Kids With A Promise Children’s Services

Development & Public Awarenss

Management & General

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Our Board of Directors

Jan Nagel, ChairmanPartnerKPMG-LLPNew York, NY

Nicholas J. DeMarcoCEOActive BrandsNew York, NY

Dudley G. DieboldInvestorRoxbury, CT

Henry HigdonManaging PartnerHigdon Partners LLCNew York, NY

Victor J. HuebnerManaging Director, RetiredTD SecuritiesDobbs Ferry, NY

Douglas John Founder and PresidentConnecticut Marketing AssociatesWilton, CT

Donald KolowskyDivision President, RetiredPfizer Inc.Niantic, CT

Pamela LeggettVolunteerUpper Montclair, NJ

Bruce MaasbachManaging DirectorManhattan MortgageNew York, NY

Edward H. MorganPresident and CEOThe Bowery Mission and Kids With A PromiseNew York, NY

Daniel NessAdministrator, RetiredLancaster, PA

Miguel SanchezAssociate ProfessorNyack CollegeNyack, NY

Beverly Ann SloanBusiness RepresentativeActor’s Equity AssociationNew York, NY

Charles W. VethFounder and PresidentCVM, Inc.Madison, CT

Thomas R. VogeleyInvestorDoylestown, PA

Vaughn WeimerManaging DirectorOaktree Asset Management, LLCNew York, NY

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Our Key Staff

President & CEO Edward Morgan

Vice President of OperationsBrian Johansson

Chief Financial OfficerRobert Depue

Director of DevelopmentJames Winans

Contact

Administrative Headquarters132 Madison AvenueNew York, NY 100161-800-BOWERY-1www.bowery.orginfo@bowery.org

design & art direction: Kathryn Cho

photography: Song Han

portrait photography: Francis Hsueh (p. 6, 10, 12, 15, 19, 21, 23)

The Bowery Mission and Kids With A Promise are ministries of Christian Herald Association, Inc.

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Administrative Headquarters132 Madison AvenueNew York, NY 100161-800-BOWERY-1www.bowery.orginfo@bowery.org

He will give a crown of beauty for ashes

a joyous blessing instead of mourning,

festive praise instead of despair.

In their righteousness, they will be like great oaks

that the Lord has planted for his own glory.

Isaiah 61:3