Dear Kids’ Chance Supporters and Friends:

I am happy to report that for the second year in a row,Kids’ Chance increased the dollar amount in total scholar-ships. We provided a total of $58,000 in scholarshipgrants to 35 deserving college-bound students. Highergrants were made possible by the generous second yeargrant of the ACE INA Foundation and were awarded toapplicants demonstrating both high academicp o t e n t i a l / p e rf o rmance and significant financial need.What is more outstanding is the fact that the scholarshipsp rovided last year helped us raise another $26,555t h rough a state matching program called PAT H(Partnership for Access to Higher Education). The ACEINA Foundation has already committed to increasing thepast year’s contribution to $30,000.

We also broadened our base of support last year throughthe Corporate and Community Partner pro g r a m .Currently there are 26 Partners representing a variety oforganizations related to the workers’ compensation field.Partner commitments from organizations such as thePennsylvania Self-Insurers’ Association, as well as golfoutings benefiting Kids’ Chance hosted by the CentralPennsylvania Chapter of RIMS and Onyshko InvestigativeServices, were also vital to our success.

The Kids’ Chance Board has been working diligently toupdate our strategic plan. I am pleased to report thatduring our November 2005 Board Meeting, the plan wasadopted.

Support from a wide range of workers’ compensation relat-ed businesses and groups, as well as private individuals,have made these opportunities possible for Kids’ Chancescholarship recipients. To our donors, and on behalf of thestudents whose lives have been positively impacted, thankyou. We have posted letters from scholarship recipients onour website, and I encourage you to read some of these let-ters as they reflect, in the students’ own words, the differ-ence Kids’ Chance is making.

We are currently working with the Bureau of Workers’Compensation to hold our first ever recognition banquetin conjunction with their two day conference which is ten-tatively scheduled in Hershey in June 2006. This is a greatopportunity to have our scholarship recipients meet ourcorporate sponsors. We have also asked our HonoraryC h a i r, Governor Edward Rendell, to speak at thisBanquet.

I look forward to working with concerned organizationsand individuals across the state to fulfill the Kids’ Chancemission in 2005 and beyond. Together we can continue tomake life-changing opportunities possible.

Sincerely,

Jeffrey S. GelburdPresident

MISSION STATEMENT:The mission of Kids’ Chance of Pennsylvania, Inc. (Kids’ Chance of PA) is to provide financial support forpost-secondary education, through scholarship grants, to children of Pennsylvania workers who have beenkilled or seriously injured in a work-related accident resulting in financial need. Kids’ Chance of PA wasfounded as a non-profit 501(c)(3) organization in 1997. Since its inception, Kids’ Chance of PA has awardedscholarships to over 230 deserving student applicants throughout Pennsylvania.

2004 AN N UA LRE P O RT

A LETTER FROM OUR BOARD PRESIDENT:

SCHOLARSHIP HIGHLIGHTS:Kids’ Chance scholarship grant recipients came from all over the state of Pennsylvania. All have a parentwho has been seriously injured or killed in a work-related accident. Criminal Justice; ElementaryEducation; Computer Science; Architectural Engineering; English/Secondary Education; Engineering; andInternational Relations/Foreign Languages.

• The total dollar amount of scholarship grants awarded increased from the previous year.• Through a Partnership with the PATH Program of the Pennsylvania Higher Education Assistance

Agency (PHEAA) and American Education Services (AES), Kids’ Chance of PA leveraged an additional $26,555 in matching grants for 20 Kids’ Chance scholarship recipients with remainingunmet financial need.

• 60% of scholarship recipients also received a Kids’ Chance grant the previous year. (Students must re-apply annually and must satisfy the eligibility requirements each year to be considered for a grant.)

3-YEAR SCHOLARSHIP OVERVIEW:

Academic Year # Grants Awarded Average Amount Total

2002-2003 27 $900 $24,500

2003-2004 35 $1,500 $53,000

2004-2005 35 $1,500 $58,000

KIDS’ CHANCE OF PA SCHOLARSHIPS, 2004-2005

“This scholarship really has opened up a world of opportunity for me. With the financial assis-tance of this scholarship, I was able to accept and attend my first-choice college, and pursue myinterest in international relations/foreign languages. I am honored to have this opportunity topursue my academic dreams.”

“Thank you so much for your generous scholarship to my student education. It’s your organization with itsselfless deeds that gives kids like me a chance for a prominent future. You’ve given me the inspiration to suc-ceed both at school and life.”

Jessica HammondLock Haven University

Elizabeth WagnerBoston University

FINANCIAL OVERVIEWFISCAL YEAR 2003 & 2004

Twelve Months Ended

Dec. 31, 2003

Ordinary Income ExpenseIncome

Interest Income $ 269General Unrestricted 1,500ACE INA Scholarship 25,000Scholarship Donations 20,877Partnerships 46,250

Total Income $ 94,166

ExpenseScholarship Grants $ 53,000Scholarship Program 17,865General Administration 8,935Fundraising 18,560

Total Expenses $ 98,360

Recipient Hometown College/University/Technical SchoolJoshua Barnish Eldred California University of PAWalter Chesla Shenandoah Muhlenburg College Daniel DeGrazia* Carbondale Dickinson College Alicia Demer Susquehanna Wilkes UniversityMandy Diffenbach Robesonia York Technical InstituteCecelia Diefenderfer Fogelsville King’s CollegeMary Beth Dipko* Portage University of Pittsburgh/JohnstownCatherine Donnelly Philadelphia LaSalle UniversityMatthew Donnelly Philadelphia LaSalle UniversityAdam Forgach Yeagertown York Technical InstituteMaggie Gorman Mechanicsburg Elmira CollegePatrick Gorman Mechanicsburg Shippensburg UniversityAndrew Grzybowski Philadelphia Marist CollegeLynnsey Grzybowski Philadelphia Marist CollegeJessica Hammond* Lock Haven Lock Haven UniversityShane Hesser Middletown Mansfield UniversityKevin Kear Greensburg West Virginia Wesleyan Kyle Kenthack Paupack Lycoming CollegeGarrett Kurtek Pottsville Bloomsburg UniversityMelissa Mackrella McKees Rocks LaRoche CollegeAndrea McClellan York Slippery Rock UniversitySteven McCullough Philadelphia Pace UniversityWilliam Milligan, III Pittsburgh Robert Morris UniversityThomas Osborne Horsham CHI InstituteChelsey Padasak Johnsonburg Indiana University of PAHarry Sankey Warminster Widener UniversityKristin Shelley East Earl Millersville UniversityJulie Speakman Bulger University of PittsburghSarah Speakman Bulger University of PittsburghShannon Speakman Bulger University of PittsburghDeanna Staul Sharpsville Butler County Community CollegeNicole Vaughan Berlin Waynesburg CollegeNicole Vranka Colver Slippery Rock UniversityElizabeth Wagner* Philadelphia Boston UniversityRachel Wisner West Easton East Stroudsburg University

* Kids’ Chance ACE INA Scholar

WashingtonEldredHarmonyShenandoah HeightsMcDonaldCarbondaleSusquehannaRobesoniaRobesoniaPhiladelphiaMechanicsburgMechanicsburgPhiladelphiaWilliamsburgWaumpumMiddletownGreensburgGreensburgPaupackMcAdooPottsvilleMoon TownshipYorkPhiladelphiaDuboisDuboisJohnsonburgSharonWarminsterDanvilleBulgerBulgerState CollegeLenhartsvillePhiladelphiaWest Easton

Erica AnthonyJoshua BarnishHeather BrannanWalter CheslaDominique D’Angelo*Daniel DeGraziaAlicia DemerBrandon DieffenbachMandy DieffenbachCatherine DonnellyKevin GormanPatrick GormanLynnsey GrzybowskiJessica Hammond*Roy HerrShane HesserBrandon KearKevin KearKyle KenthackJoseph KringerGarrett KurtekMelissa MackrellaAndrea McClellanSteven McClulloughShannon MuirheadSherri MuirheadChelsey PadasakKyle RiffleHarry SankeyCourtney SonesSarah Speakman*Shannon Speakman*Jamie StreicherAshley TraboshElizabeth Wagner*Rachel Wisner

KI D S’ CH A N C E O F PA SC H O LA R S H I P RE C I PI E N TS, 2004-2005

California University of PACalifornia University of PASlippery Rock UniversityMuhlenberg CollegeCalifornia College of the ArtsDickinson CollegeWilkes UniversityJuniata CollegeYork Technical InstituteLaSalle UniversityAlvernia CollegeShippensburg UniversityMarist CollegeLock Haven UniversityYoungstown UniversityMansfield UniversityPenn State Univ/AltoonaW. Virginia Wesleyan CollegeLycoming CollegeEast Stroudsburg UniversityBloomsberg UniversityLaRoche CollegeSlippery Rock UniversityPace UniversityPenn State Univ/Univ ParkSlippery Rock UniversityIndiana University of PAYoungstown UniversityWidener UniversityPenn State Univ/Univ ParkUniversity of PittsburghUniversity of PittsburghPenn State Univ/Univ ParkKutztown UniversityBoston UniversityNorthampton Community College

SCHOLARSHIPPROGRAM$14,689

FUNDRAISING

$12,482GENERAL

ADMINISTRATION

$9,841

SCHOLARSHIP

GRANTS

$58,500

Notes:* Scholarship grants and related expenses comprise 72% of total expense.* Materials and website-related expenses included within scholarship program

and fundraising totals were higher than initially estimated due to one-timedevelopment related costs.

* Income does not include over $13,000 in Partner and scholarship funds pledged in Fall 2003 but not received until early 2004.

Dec. 31, 2004

$ 443858

25,00040,29253,500

$120,093

$ 58,50014,869

9,48112,482

$ 95,152

FINANCIAL OVERVIEW FISCAL YEAR 2003 & 2004

KIDS’ CHANCE OF PA. BOARD OF DIRECTORS

P.O. Box 543 Pottstown, PA 19464

To make a tax-deductible donation to support Kids’ Chance scholarships,please see our brochure or newsletter, or visit our website: www.kidschanceofpa.org.For more information about the Partner Program and benefits, please call (484) 945-2104.

CORPORATE AND COMMUNITY PARTNER PROGRAMThe Corporate and Community Partner Program supports the operational activities of Kids’ Chance including raising scholarship funds, administeringscholarship applications, preparing and printing communications and publications, updating the website, etc. In 2004, Kids’ Chance of PA secured 26partnerships, including several multi-year pledges.

SENIOR ($10,000)Pennsylvania Self-Insurers’ Association (PSIA)

JUNIOR ($5,000)Central PA Chapter, Risk & InsuranceManagement SocietyE a s t e rn Alliance Insurance Gro u p / E m p l o y e r sA l l i a n c ePennsylvania Bar Association

SOPHOMORE ($2,500)Alliance Impairment Management, Inc.

Marsh & McLennan CompaniesMedRisk, Inc.Peters & Wa s i l e f s k i

FRESHMAN ($1,000)Allegheny County Bar AssociationC a ro s e l l i, Beachler, McTi e rnan & Conboy, LLCCNA FoundationDickie, McCamey & ChilcoteFried, Kane, Walters, Zuschlag & Gro c h m a lGenex Services, IncI n j u red Workers Pharm a c y

K a t h e rman Briggs & Gre e n b e rg LLPKegel Kelin Almy & Grimm LLPMartin, Banks, Pond & LehockyM u rray Insurance Associates, Inc.Pennsylvania AFL-CIOQuatrini Raff e rty Galloway, P. C .Saltz, Mongeluzzi, Barrett and Bendensky P. C .Sedgwick Claims Management Services, Inc.The PMA Insurance Gro u pThomas, Thomas & Hafer, LLPWestfield Insurance

HONORARY CHAIRMANHonorable Edward G. RendellGovernor of Pennsylvania

PRESIDENTJeffrey S. GelburdMarsh USA, Inc.

VICE PRESIDENTP. Drew JonesThe PMA Insurance Group

SECRETARYAnthony J. BilottiAnthony J. Bilotti & Associates, LLC

TREASURERKim J. Jones Murray Insurance Associates

Edward Case, Jr.Byerly, Inc.

A. Jeffrey CrampCramp and Associates

Gary T. DeFlorentisPSBA Insurance Trust

Bart E. EckerLaputka, Bayless, Ecker & Cohn

Suzanne M. Emmet, CPCUEastern Alliance Insurance Group

Pearre DeanPennsylvania AFL-CIO

William Lynch, Esq.Thomas Lowry and Associates

David ManleyMellon Certified Restoration

Don McCarterNovaCare Rehabilitation

John McTiernan, Esq.Caroselli, Beachler, McTiernan

and Conboy, LLP

Mike NessVocational Rehabilitation Services, Inc.

Bart ShafferWeis Markets

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