The first San Miguel School in Chicago was started in 1995 in the Back of the Yards neighborhood, where it now serves 80 Latino middle-school students. The Gary Comer Campus in Austin followed in 2002 and serves 110 African-American students. The children come from neighborhood families living at or below the poverty level, with preference given to those who are not performing well in their current schools. San Miguel's $3-million budget is entirely donor-financed. Kevin Allodi, managing partner of La Grange-based investment firm KBA Holdings LLC, and his sister Anne will chair the schools' fundraiser on Thursday featuring multiplatinum band Styx. Crain's spoke with Mr. Allodi.

CRAIN'S: How did you become involved with the San Miguel Schools?

MR. ALLODI: Around five years ago, a volunteer asked me to help out. I joined the board four years ago and am now chairing the development committee. Three years ago, we started the "School of Rock" benefit because no one wanted to go to another black-tie dinner and sit down in one place all night. We all liked the feedback, the music and the casualness of the event, and this year we have Styx - an award-winning band with Chicago connections - performing.

What makes this educational effort different?

Most schools work with kids who are achievers. We give preference to kids who are failing and are underachievers - the kids who may never finish high school. At San Miguel, we believe that all these kids can thrive if put in the right environment. We have a longer school day and a longer school year. We know of kids who started at San Miguel 15 years ago and are now in medical school or are teaching school. The average high school graduation rate for our neighborhoods is 40%, and we have a better-than-94% rate for kids who attend San Miguel. Another 20% are going on to four-year colleges.

Tell us more about the benefit.

The party is at the House of Blues, with an appearance by DJ Biz Markie. We'll have cocktails, hors d'oeuvres and a buffet dinner, and later on there will be a raffle drawing for a $50,000 prize. Everyone can wear jeans or other comfortable clothes, so it promises to be a relaxing evening.

What are your feelings about philanthropy on a personal basis?

There are so many good causes that, over time, I have developed a process for choosing the ones I wish to participate in. I ask if the funds raised are really moving the needle. Most organizations stand for good things, but I like to see proof. I ask what the return on investment is, and what it is really doing. We all get requests from a lot of good organizations, but I would rather say yes to just a few good ones.

Click here to read the article on ChicagoBusiness.com.

Registration required.