& 2013-14 ANNUAL REPORT

They’ve never needed us more.

Supplementary Charts 16

Success After MHS 14

College and Career Readiness 12

Educating the Whole Child 10

Academic Achievement 8

Looking to the Future 5

State of the School 2

6The Children We Serve

1

It is a pleasure to present this annual report of student success at Milton Hershey School. As you page through this report, you will see the remarkable accomplishments of our students who strive to achieve beyond expectation.

MHS prepares students to find their passion —whether that leads to college or straight into the world of work. The goal is to put them on a path to a productive, healthy and happy life that allows them to break the cycle of poverty. With access to top-notch academics, the nurturing support of our home life program, character and leadership development, extensive health and wellness curriculum, and assistance beyond graduation, our students are heading into the world ready to overcome any challenge.

It is clear that our student-focused programs are having a positive impact at all levels, as our students continue to attain exceptional results on standardized tests and success in their postsecondary schooling.

Beyond all the test scores and success matrices, the factor that impresses me most about our students is their kind and serving hearts. MHS students are making a difference because we have instilled in them the importance of giving back. Although this service cannot be quantified, I can assure you that our students have spent thousands of hours working in the community and on our campus. Their efforts during the 2014 Cancer Care Community Walk raised more than $122,000 and demonstrated the support that the MHS family extends to those who are facing adversity. It truly is an organization like no other, and I am so proud to call it my alma mater, my Hershey home since the age of five and the amazing institution I am now honored and humbled to lead as president.

Sincerely,

Peter G. Gurt ’85 President

State of the School

2

Regardless of our role, we all have the ability to be the one person in the life of a student who makes the biggest difference — who inspires them to dream, to achieve, to serve others, to be compassionate, to leave a legacy.”

—President Gurt2014 Opening of School Assembly

“3

A Top-Notch Education

62% Four-Year College

7% Trade/Technical School

18% Workforce

6% Community College

2% Other (Art School, Military Academy, Etc.)

5% Military

4

The Class of 2014 was the largest graduating class in our School’s history with 210 seniors. Of those graduates, 77 percent (162 graduates) pursued a form of postsecondary education.

Postsecondary Choices

TOP 5SCHOOLSATTENDED BYCLASS OF 2013

SHIPPENSBURGUNIVERSITY OF PA

PENN COLLEGEOF TECHNOLOGY

TEMPLEUNIVERSITYPITTSBURGHTECHNICALINSTITUTEKUTZTOWNUNIVERSITY OF PA

Milton Hershey School is always looking for innovative ways to invest in the success of our students. A new program starting in the spring of 2015 will allow academically advanced seniors to take an entire semester of college courses without leaving the MHS campus.

Fifteen students who have excelled academically and in their extracurricular activities have been chosen to participate in the program which partners MHS with Temple University Harrisburg. They will take on a full 15-credit course load, which will include math, English, U.S. society and psychology classes.

The classes will be taught by Temple professors on the MHS campus. Students will experience the responsibility and workload of college while still in high school.

Partnerships like this are an important priority for President Gurt, a 1989 graduate of the Fox School of Business at Temple. As MHS works to increase its already extensive support of young alumni, college-readiness programs will help recent graduates as they transition to life in college.

The School is exploring more ways it can partner with outside organizations to benefit MHS students. Creative programs like this help prepare students for success beyond high school.

New Temple University Program Brings College to MHS Campus

Looking to the Future

5

15 SENIORSWILL COMPLETEA SEMESTEROF COLLEGEBEFORE FINISHINGHIGH SCHOOL

CollegeReadiness

The Children We ServeMilton Hershey School empowers students from families of low income to succeed in school and in life. We currently serve nearly 2,000 students from pre-kindergarten through 12th grade. In order to serve as many eligible students as possible, enrollment at the School has increased by almost 50 percent over the past decade.1 And we are still growing.

Most students come from Pennsylvania, but 22 percent come from other U.S. states. We provide a variety of support services to students and their families to minimize homesickness and maximize family communication and involvement.

The School’s retention rates are excellent and comparable to those of traditional boarding schools. Our 2013-14 retention rate was 90.2 percent, the highest since 1997-98. It tops the 10-year and 40-year averages of 87.3 percent and 87.6 percent respectively.2

All of our students come from low-income households. The average family income for students enrolled in 2013-14 was $14,655, 38% under the 2014 Federal Poverty Level Guideline of $23,850 for a family of four.

49% Male (935)

44% White

10% Hispanic

<1% Native American

51% Female (990)

31% Black

2% Asian

13% Other

28% Students from Dauphin, Lebanon or Lancaster counties (535)

50% Students from other PA counties (966)

22% Students from other U.S. states (424)

1 See Peak Enrollment Statistics supplementary chart on p. 16.2 See Student Retention Rates supplementary chart on p. 16.6

Ethnicity

Gender

Geography

ENROLLMENTAPPLICATIONS

16%

My mom, two brothers and I were living together. As a single mother it was a struggle for her to provide for all of us. I knew I wasn’t excelling in school, and I needed more support and motivation in my life.”

—Tatiana12th grade

90.2%RETENTIONRATE

“

3 See Student Physical Health supplementary chart on p. 16. 7

MHS educates students about the importance of healthy lifestyles and provides them with access to important health and personal care services.

We provide medical, dental, psychological, behavioral and social work services for our students. Licensed social workers serve as coordinators of Student Health Services for all students within the Elementary, Middle and Senior Divisions, and connect them with a variety of available health services.

Students learn about nutrition, exercise, proper hydration, adequate rest and limiting their leisure screen time through formal instruction, behavior modeling and fun activities aimed at keeping them active and engaged with their own health.

Because they are more informed and empowered, the health and wellness of our students has improved.3

Keeping Our Students Healthy

MHS EARNED THEHEALTHY SCHOOLS PROGRAM

BRONZEAWARDFROM THE ALLIANCEFOR A HEALTHIERGENERATION

IT TAUGHT MEI COULD DOANYTHINGI PUT MY MIND TO.—Julissa, 12th gradeAfter running the annualHershey Half Marathon

“”

Academic AchievementStatistically, children from economically- challenged backgrounds do not score favorably on standardized tests, but students at MHS have risen above that trend. In all subject areas, MHS students outscored the statewide averages and significantly exceeded the scores of other socioeconomically-challenged children.

For our advanced students, we have improved and expanded enrichment and career-readiness

opportunities including Advanced Placement and college-level courses, cooperative education programs, and internships.

In our ongoing effort to ensure our students are ready for life after graduation, MHS has integrated more technology into the curriculum to engage students, expand their learning and teach 21st-century skills necessary for postgraduate success.

8

HIGH SCHOOLJUNIORS AND SENIORS

LEARN IN A1:1

COMPUTINGENVIRONMENT

2,595COMPUTERSFOR STUDENT USE

PSSA Math

PSSA Science

Keystone Algebra I Keystone Biology Keystone Literature

PSSA Reading

PSSA Writing

9

0 10 20 30 40 50 60 70 80 90 1000 10 20 30 40 50 60 70 80 90 100

0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100

58%

73%

88%

85%

78%

80%

74%

PA – Economically Disadvantaged (ED)

PA – All Testers 2013-14

MHS 2013-14

MHS 2012-13

MHS 2011-12

MHS 2010-11

MHS 2009-10

53%

70%

80%

71%

73%

61%

66%

PA – ED 2013-14

PA – All Testers 2013-14

MHS 2013-14

MHS 2012-13

MHS 2011-12

MHS 2010-11

MHS 2009-10

53%

69%

86%

84%

84%

79%

77%

PA – ED 2013-14

PA – All Testers 2013-14

MHS 2013-14

MHS 2012-13

MHS 2011-12

MHS 2010-11

MHS 2009-10

52%

68%

89%

90%

94%

90%

87%

PA – ED 2013-14

PA – All Testers 2013-14

MHS 2013-14

MHS 2012-13

MHS 2011-12

MHS 2010-11

MHS 2009-10

0

10

20

30

40

50

60

70

80

90

100

0

10

20

30

40

50

60

70

80

90

100

0

10

20

30

40

50

60

70

80

90

100

PA –

ED(S

prin

g 201

4)

PA –

ED(S

prin

g 201

4)

PA –

ED(S

prin

g 201

4)

MHS

2012

-13

MHS

2013

-14

PA –

All T

este

rs

(Spr

ing 2

014)

PA –

All T

este

rs

(Spr

ing 2

014)

PA –

All T

este

rs

(Spr

ing 2

014)

MHS

2012

-13

MHS

2013

-14

MHS

2012

-13

MHS

2013

-14

65% 74% 83%65% 75% 95%40% 41% 52%24% 24% 35%

STANDARDIZED TEST SCORESPercentage of students scoring proficient or above on the PSSA (grades 3-8) and Keystone (high school level) exams.

Consistent with the broader mission of Milton Hershey School, we provide for the educational, social, physical, emotional and spiritual growth of our students. This includes traditional academic learning and character and leadership development.

These skills support our children in becoming productive members of society and help them develop the “grit” and determination needed to succeed.

Students who demonstrate an understanding of the MHS Sacred Values of Integrity, Positive Spirit, Commitment to Mission and Mutual Respect are recognized and rewarded.

Going forward, MHS will formalize a leadership and character curriculum to ensure these skills are both taught in the student homes and woven throughout the MHS experience.

Educating the Whole Child

Character/Behavior

0102030405060708090

100

MHS

2006

-07

MHS

2007

-08

MHS

2008

-09

MHS

2009

-10

MHS

2010

-11

MHS

2011

-12

MHS

2012

-13

MHS

2013

-14

68% 69% 72% 73% 74% 77% 80% 81%

10

Percentage of students who consistently followed our code of conduct:

STUDY HOURSEVERY STUDENTSTUDIES FORAT LEASTONE HOUREACH SCHOOL NIGHTIN THE STUDENT HOME

I’M JUST SOTHANKFULTHAT I WASCHOSENTO BE PART OF THIS

AWESOMESCHOOL.—Patricia, 6th grade

“

”

0102030405060708090

100

Milton Hershey School offers experiences year-round for students who choose to stay on campus during summer and/or holiday breaks. In 2014, more than 85 percent of students participated in at least one activity during break that was designed to address their academic, social, emotional and physical needs.

Year-Round Experiences Participation

58%

68% 67%71%

62%

72% 72% 73%79%

85%

11

2004

-05

2007

-08

2010

-11

2005

-06

2008

-09

2011

-12

2006

-07

2009

-10

2012

-13

2013

-14

MILTON HERSHEY SCHOOL

SACREDVALUESINTEGRITYPOSITIVESPIRITCOMMITMENTTO MISSIONMUTUALRESPECT

Percentage of students who participated in a significant skill-building activity scheduled

during summer and/or holiday breaks:

u

A Brighter FutureBegins Here

College and Career ReadinessMilton Hershey School prepares high school students for their next stage of life through career training and college-readiness programs, the Transitional Living program, scholarships, and mentoring.

During their senior year, students have access to hands-on learning in the workplace through our extensive internship and part-time work programs. Students gain valuable work experience through a vast network of partner organizations including The Hershey Company, Hershey Entertainment & Resorts, Penn State Milton S. Hershey Medical Center, and other local businesses.

Partnership programs like Moving Forward Together at Elizabethtown College and Gear Up at Lebanon Valley College help our students prepare for the rigor of college life. Rising seniors also experience a weeklong transition program that assists them with the college application and financial aid processes.

Transitional LivingThe 210 students in the Class of 2014 spent their senior year in the Transitional Living program—a dormitory-style living environment that provides an opportunity for students to practice life skills necessary for independence after MHS.

Students develop skills in time management, budgeting, conflict resolution, cooking, nutrition and exercise that prepare them for the transition to college or a full-time job.

100%OF GRADUATING

SENIORSEARNEDAT LEAST ONEINDUSTRYCERTIFICATIONIN EACH OFTHE LASTTHREE YEARS

12

I didn’t know what I wanted to do, but I got into an engineering class and found my passion. I feel conf ident about going to college with the skills and knowledge I have because most high schools don’t offer this type of program.”

—AlexisClass of 2014

“

0102030405060708090

100

HIGH SCHOOLSTUDENTSCAN EARNONE OR MORE OF

– 4 6 –STATE OR NATIONALCERTIFICATIONS

Students are introduced to the Career/Technical Education (CTE) program in 4th grade and are able to explore 11 career options.4 Once students reach 9th grade, they narrow their areas of interest down to four, which provides them with an in-depth experience in a variety of concentrations before choosing one pathway for the remainder of their MHS career.

Career/Technical Education

61.0%

71.0%

92.0% 93.0%98.3% 98.8% 99.0% 99.4% 99.6%

134 See Career/Technical Education Pathways list on p. 16.

2005

-06

2008

-09

2011

-12

2006

-07

2009

-10

2012

-13

2007

-08

2010

-11

2013

-14

Percentage of students in grades 10-12 who successfully completed state or national certification or competency exams in their respective CTE areas:

u

AchievementBeyond Expectations

College and Career counselors begin working with students in 9th grade and continue providing support up to five years after they graduate from MHS.

The Continuing Education Scholarship provides financial assistance to eligible MHS graduates pursuing full-time study toward one accredited, classroom-based undergraduate program that leads to a diploma, certificate or degree from a U.S. institution.

MHS has collaborated with more than 70 colleges and universities in its Alliance Schools program to give MHS graduates access to dedicated and supportive staff members at each alliance school.

In 2014, 77 percent of MHS graduates continued their education at a two- or four-year college or trade school—far greater than the national average rates for economically disadvantaged students.

5 YEARSPOSTGRADSUPPORTOFFEREDTO ALUMNI

STUDENTSCAN EARN$80,000IN COLLEGESCHOLARSHIP

FUNDING

10 SENIORSCHOSE TOPURSUEMILITARYSERVICE

Success After MHS

14

Postsecondary SuccessPercentage of graduating seniors who began their freshman year of postsecondary education in the fall of 2014:

0102030405060708090

10088% 84% 81% 81% 77% 87% 66% 50%

Clas

s of 2

010

(144

/163

)

Clas

s of 2

011 (

149/

178)

Clas

s of 2

012 (

155/

192)

Clas

s of 2

013 (

151/

186)

Clas

s of 2

014

(162

/210

)

MHS

8-yr

. Ave

rage

(200

5-20

12)

Natio

nal A

vera

ge

Econ

omica

lly D

isadv

anta

ged

7,359ALUMNIIMPACTINGTHEIRCOMMUNITIES

IN ALL50 STATES

15

Alumni Summer HousingMilton Hershey School maintains strong connections with its young alumni and is committed to tracking their progress. Summer housing services are available to alumni who need a safe place to live during their college years. During the summer of 2014, 40 young graduates utilized our housing services.

0

10

20

30

40

50

60

70

80

90

100

38 40

Number of students who utilized MHS housing services:

u

Sum

mer

2013

Sum

mer

2014

It feels good that their eyes are opened. They say, ‘Wow, Garry did this and he came from where I came from. So, why can’t I?’”

—Garry Gilliam ’09Tackle, Seattle Seahawks

“

Excellent Education,Exceptional Life

Supplementary Charts

Peak Enrollment Statistics Student Retention Rates

Student Physical Health Career/Technical Education Pathways

16

n Agriculture and Natural Resourcesn Automotive Technologyn Business/Financial Management and Accountingn Computer Technologyn Construction/Carpentryn Culinary Arts/Restaurant Management Servicesn Electronic Media and Journalismn Engineering and Designn Graphic Communication Technologiesn Health Sciencen Law, Public Safety and Security

10001100120013001400150016001700180019002000

50

60

70

80

90

100

2004

-05

2004

-05

2007

-08

2007

-08

2010

-11

2010

-11

2005

-06

2005

-06

2008

-09

2008

-09

2011

-12

2011

-12

2006

-07

2006

-07

2009

-10

2009

-10

2012

-13

2012

-13

2013

-14

2013

-14

1,278

1,395

1,509

1,703

1,831 1,848 1,838 1,866 1,891 1,925

84.3%87.7% 89.1% 87.2% 88.3% 86.4%

84.2%86.1%

89.5% 90.2%

Percentage of students measuring in the healthy Body Mass Index (BMI) range:

0102030405060708090

100

Sprin

g 201

0

Sprin

g 201

1

Sprin

g 201

2

Sprin

g 201

3

Sprin

g 201

4

PA St

ate A

vera

ge

61% 59% 65% 65% 66% 64%

Giving back is an action that needs to come from within, and without expecting something in return. I am always trying to do the right thing. None of us are perfect. However, we must never lose the drive to want to become better people in our daily lives.”

—OscarClass of 2015

“We’ve never needed them more.

mhskids.org

12/2014

Milton Hershey School is one of the world’s best private schools, offering a top-notch education and positive home life to children

in pre-kindergarten through 12th grade from families of lower income at no charge. Learn more at:

IN KEEPING WITHMR. AND MRS. HERSHEY’SDEED OF TRUSTMILTON HERSHEY SCHOOLNURTURES AND EDUCATESCHILDREN IN SOCIALAND FINANCIAL NEEDTO LEAD FULFILLINGAND PRODUCTIVE LIVES.

MILTON HERSHEY SCHOOL

MISSION

Milton Hershey School admits boys and girls of any race, color, religion, nationality and ethnic origin to all of the programs and activities made available to students of the school.

We are very proud of the academic persistence of our students, and their excellent scores on statewide tests are evidence of their commitment to success.

Students come to Milton Hershey School with varying aptitudes and competencies. Our employees strive to help them grow in their achievement and understanding. Thanks to the diligence of our students, our dedicated teachers and the support of houseparents, students are making remarkable progress.

Recently released data places MHS in the top 1 percent of districts in Pennsylvania

for student growth in literature and biology and the top 9 percent for growth in algebra, as measured through the Keystone Exams which evaluate high school level learning. We also ranked in the top 3 percent for growth in reading and the top 13 percent for growth in math in Pennsylvania districts among students in grades 4-8.

These impressive growth statistics show the advancement of our students’ learning, and we should be very proud of our results. Our priority is to ensure that every student has the opportunity to meet and exceed his or her academic goals.

MHS Students Continue to Show Exceptional Growth

mhskids.org

Brown & Gold

Update

Here is what members of the Class of 1998* are doing 15 years after graduation.

mhskids.org

38% have earned abachelor’s degree

24% have earned amaster’s degree

17% are in school full or part time

79% areworkingfull time

14% areworkingpart time

7% have earned aprofessional

degreelaw, medicine, dentistry, etc.

*2013-14 Annual Student Life Report Card survey respondents.