THE MANHATTAN INSTITUTE Social Entrepreneurship AWARDS 2003

Recognizing enterprising individuals who are helping Americans realize their full potential as citizens and members of society THE MANHATTAN INSTITUTE SOCIAL ENTREPRENEURSHIP AWARD DINNER 2003

FEATURED SPEAKER 2003 SOCIAL ENTREPRENEURSHIP AWARD RECIPIENTS

MILLARD FULLER GERALD CHERTAVIAN SARA HOROWITZ AMY LEMLEY CHAD PREGRACKE MICHAEL TENBUSCH AND DANIEL VARNER

Habitat is an organization of great complexity that developed from a simple impulse: Mr. Fuller’s desire to rid the American South of its infamous one- room “shotgun” shacks and from his own belief that he could, if he found enough people willing to help. Today, 27 years after Millard and his wife Linda founded it, Habitat for Hu- manity International has helped make it possible for more than 150,000 fami- lies to live in what Mr. Fuller calls a simple, decent home. It has provided a way for hundreds of thousands of people to volunteer to help Habitat build thou- sands of homes every year, and it is among the top 15 homebuilders (for profit or non-profit) in the United States every year. But families that qualify for help must start by helping other fami- Millard Fuller, founder, Habitat for Humanity, addresses the award winners and lies first. audience at the 2003 Manhattan Institute Entrepreneurship Award Dinner. Millard Fuller has shown that even in an era of big government a major R. HOWARD HUSOCK: thoughtful social entrepreneurs in the new, non-profit organization can be Good evening, my name is United States over the past thirty years. built and change the face of not just MHoward Husock and I am the One way to illustrate Millard one nation, but many others as well. Director of The Manhattan Institute’s Fuller’s entrepreneurial qualifications is He’s a brilliant, religiously-inspired or- Social Entrepreneurship Initiative. This to recall that before he founded Habitat ganizer, builder and marketer who has is the Initiative’s third annual awards for Humanity, he was a successful, pri- done some things that less visionary program honoring those who have vate, for-profit direct mail entrepreneur, thinkers would consider impossible. started new and effective not-for-profit someone who could have well afforded But, most importantly, he has helped organizations that help to solve social to retire at an early age. Instead, at 68, countless families around the world problems with little or limited support Mr. Fuller maintains a truly grueling become, for the first time in their lives, from government. travel schedule that would tax the the dignified owners of their own Before we recognize this year’s hon- strength of many young men. Mr. Fuller simple, decent homes. Ladies and orees, it’s my great honor and privilege is the leader of an organization, Habitat gentlemen, please join me in welcom- tonight to introduce as our keynote for Humanity International, which is ing to New York the President of Habi- speaker, someone who must surely be building homes today in 3,700 locations tat for Humanity International, Millard considered among the most effective and in 92 countries. Fuller.

1 THE MANHATTAN INSTITUTE MR. MILLARD FULLER: Thank you very much Howard. I have a great re- spect for Howard, and I want him to know and I want all of you to know that I am incredibly honored to be here to- night. Howard said that I keep a busy schedule. That’s very true. This is my seventh speech for today. But I can promise you that I’m just as fresh as a daisy and delighted to be here, along with several of my colleagues, regional representatives from Habitat for Hu- manity. First of all, let me publicly congratu- late all of the honorees that have been chosen to win one of the awards of this From left to right: Daniel Varner, Think Detroit; Millard Fuller, Habitat for Hu- evening. I’ve been in this business a very manity; Gerald Chertavian, Year-Up; Howard Husock, Harvard University; Amy long time, but I am still very eager to Lemley, First Place Fund for Youth; Michael Tenbusch, Think Detroit; Sara Horowitz, learn more about what you are doing and Working Today; Chad Pregracke, Living Lands and Waters. to learn from your experience as young social entrepreneurs. 250 houses in five days in 90 cities across thought you might find it more inter- Howard said in his remarks that I the state. Today, I flew into New York esting to hear very briefly about the keep a busy schedule, and I told you what and have been busy in Westchester motivation that gave birth to this tre- I’ve done today. Last week I was in County all afternoon. Tomorrow I go mendous outpouring of effort. Mexico City with Jimmy Carter for a to Hartford, Connecticut for a weekend I was raised in Alabama, and I was press conference and to have a reception of engagements at a conference brining raised in a very religious home. My and a big dinner in Mexico City to an- together all of the Habitat affiliates in mother died when I was very young, nounce and to kick off the promotions New England, and we’ll have about 700 when I was three years old. My dad re- for his next annual Jimmy Carter Work people at that conference, where there married. His second wife was the or- Project. President Carter has been build- will be a number of seminars, workshops ganist in the church. My dad was a dea- ing with Habitat every year since 1984, and so forth for Habitat volunteers. con in the church, and the church was a and next year will be his 21st year with us. Then I go home for two days and big, big part of our life. But when I went President Carter is turning 80 next year, I’ll be off again to Melbourne, Florida for off to university, I didn’t renounce my and it is an inspiration that he is giving a big banquet and fly straight from there Christian faith, but it was not primary so much back to the world at an advanced to New Zealand to have our fall Habitat in my life. Instead, I became very dedi- age and is a shining example to many for Humanity International Board Meet- cated to making money. people who know about him and about ing. If you haven’t noticed, my life is I met a fellow student, the man who his dedication to ending poverty hous- pretty much like a political campaign with later became my business partner for ing. President Carter will be helping us no election. But it’s a joyous work, and eight years, Morris Dees, who later build 150 houses in a week in Pueblo and there would be no way that I could sus- founded the Southern Poverty Law Cen- Vera Cruz, Mexico next October. tain this pace if I didn’t really believe in ter. Early on in our partnership we de- After our press conference in what we are doing and love it. cided on a mission statement for our new Mexico City, I went to Nicaragua for the Tonight I want to talk to you about enterprise. We didn’t know what we dedication of 31 Habitat for Humanity how Habitat for Humanity went from would say or what we would do—we just houses about an hour out of Managua. building one house to building now a knew that we wanted to be together as A few days after that, I went out to Kan- house every 26 minutes, worldwide. business and law partners—and our mis- sas, and then Texas. I spent much of We’ll build another 21,600 houses this sion statement just stipulated that we yesterday in Detroit and Benton Har- year; by the end of next year we will have were going to get rich. For the next eight bor with the Governor of Michigan to built 200,000 homes and will have years we dedicated every waking hour announce the 2005 Jimmy Carter Work housed, at that point, a million people. to making money; and we did make a Project in Michigan. We plan to build The numbers are interesting, but I lot of money.

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Somebody once said that when the student is ready to learn, the teacher appears. Shortly after we came home we were led to a small Christian com- munity near where I met the most in- credible human being I’ve even known in my life, a man named Clarence Jor- dan who, with his wife Florence, had founded an integrated Christian com- munity. Clarence was a social entrepreneur in his own right, a man with a social conscience and a courageous spirit, who went to southwest Georgia in 1942 and stood up and said I’ve got something to say to everybody — black folks and white folks are equal. Naturally, after that, all hell broke loose for Clarence. He and his fellow community members Millard Fuller congratulates Social Entrepreneurship Award winner Amy Lemley, were beaten up and persecuted, and dy- Founder, Working Today. namited, and had their buildings burned down, and were persecuted and suffered I married the girl of my dreams as a all our money away. He said, you better in a way that was just unbelievable. I senior in law school, and later moved her sleep on that. And I said, well you know didn’t know anything about this even to Montgomery, Alabama, and ensconced the Bible says it’s difficult for the rich to though I was raised less than a hundred her in a beautiful house with a Lincoln get into the Kingdom. He said, yeah miles away. But God led us to that small Continental to drive, servants, two thou- but you’ve got a couple of kids and you Christian community and I got to know sand acres of land, horses, cattle, speed know that you don’t want get too literal this man; and I met for the first time in boats, everything you could ever want. about the Bible. Needless to say, he my life people who were persecuted be- But I worked all the time and so our rela- didn’t give us any encouragement. cause of their faith. I had never met tionship disintegrated. The consequence But we really felt that that was what anybody who had been persecuted be- of that alienation was that she left me and we needed to do in our situation. Later, cause of their faith before and that was a came here to New York City and came to we went back to the South not having profound experience for me. the Wellington Hotel in Manhattan, any idea what we would do except that We intended to stay two hours and where she was considering a divorce. we wanted to be together as a couple. stayed a month. I don’t know if you’ve I was plunged into total despair, but We had two children at that point, and ever been anywhere intending to stay eventually, after repeated entreaties, she we did not want to break up our family. two hours and stayed a month. But I was eventually agreed to see me. I came up And so we really asked God to guide us, touched by this man and his faith. here, and it was out of that very severe and we went on a spiritual pilgrimage. We ended up leaving that commu- personal crisis that my wife and I decided A lot of people don’t know that fact nity eventually, and actually came back to take a very drastic step that most about the founding of Habitat for Hu- to New York and we engaged ourselves people thought was very foolish. She manity; I didn’t start Habitat because I in other work for about two and a half was counseling with a pastor here in the had an interest in housing or real estate, years and then went back to the South city, and I remember we called him up or anything like that. I was looking for and literally had a brainstorming session about midnight and said we’ve been a way in my life to please God. That with a small group of about 30 people. reconciled, but a part of the was my motivation, and I had no idea The question we asked ourselves was: reconciliation is that we’re going to give what that would be. What should we do to demonstrate in a

3 THE MANHATTAN INSTITUTE practical way God’s love in the world? thing about charging interest to the poor. out where your natural support base is And that’s when we saw all of these ter- The ancient wisdom of the scriptures in as it is to clearly see what the need is. rible shacks around us; and it dawned all of those three faiths is don’t charge For Habitat, our natural support base on us that here is a need that is not be- interest to the poor. That’s God’s for- was the church. The largest organiza- ing addressed. mula on how the poor can raise them- tion in the world is the church, and so I think that’s the definition of social selves up out of poverty. You don’t have we look to that to that natural support entrepreneurship: seeing a need that’s not to give them charity. Just lift the bur- base to keep our work vital; and over the being addressed and deciding that maybe den of interest from them. years we have cultivated that base and you are the person that ought to do some- Of course all the people in our area then reached out far beyond it. But it is thing about it. And we literally started there thought we were crazy when they still our core base that enables us to con- by building one house for one family in found out how we were going to run this sistently and steadily move ahead. need, the Johnson family. Clarence, my- program. They said that’s un-American. We came back from Africa and had self, and my wife Linda and a small group You don’t charge interest? It sounds sub- an organizing meeting in an old chicken of about 25 or 30 people decided to form versive, a Communist scheme; and we barn in 1976 where we officially incor- a program which we called Partnership said we got the idea from the Bible. porated Habitat for Humanity as a non- Housing. That was the name of Habitat Afterward, we decided to expand our profit organization and invited to world for Humanity initially. mission to Africa. But before we went I to join us. Even as we decided to build this one raised money to start a second commu- Over the years, slowly at first, but house, we also laid out streets for about nity, and I left them with about $200,000 then with increasing speed, our idea was 30 houses. We were going to build a to keep up with our work. Then Linda picked up and embraced by more and community of about 30 homes. That and I, along with our four children, more people. Today, as you heard was really the beginning of everything moved right to the heart of Africa, the Howard Husock say in his introduction, that came after. This was in 1969. That old Belgian Congo, and we started build- Habitat is at work building in 3,700 cit- same year, Clarence, my spiritual men- ing houses. At that point Habitat was ies and we’ve built 150,00 houses and tor, was in his little study writing a ser- called the “Housing Project”. are building more than 21,000 houses mon when he had a massive heart at- We started 114 houses in the capi- every year. tack at age 57 and died very suddenly. tal city of the Congo and then went to On June 21st of this year I was in So we were left with a tremendous the southern part of the region and Romania to dedicate our one hundred sense of loss. But we felt that this was started 300 more houses. While we were fifty thousandth house. I want to tell God’s call on our lives; and we finished in Africa I began to think that these you that story because it makes a beau- that house for the Johnson family, and simple concepts that we were working tiful point. A house is so important to we kept building, and we worked there with could form the basis of a world- human development. I like to say that in southwest Georgia building houses— wide new program to provide housing. a house is to a human family what soil is just four or five the first year, eight or We felt that our primary partner in this to a plant. It is a place where children ten the next year, then a dozen. We program would be the church. We were are rooted and grounded, and it gives stayed there for almost five years. We looking to all of the different churches them a platform on which to stand and finished that one community of about – Protestant, Catholic, Liberal, Conser- grow and develop and become all that 35 houses. vative – and we wanted to look beyond they can be in life. Then we went down the road about the borders of the church and bring in The family in Cluj, Romania who a mile and we started a second commu- others. But we wanted it to be an overtly got that one hundred fifty thousandth nity. Later on, I wanted to formalize the religious organization that was and is re- house was the Bacco family. That fam- concepts that we were working with – ligiously motivated and looked to people ily consisted of a husband and wife and no profit, no interest. We got this idea with similar motivation to be our pri- five little children, and the youngest out of the Bible. The Bible teaches you mary support base. child in that family was a three-year-old if you lend money to the poor, don’t I’ve talked to social entrepreneurs little boy named David. The new Habi- charge interest. And interestingly about this quite a bit, and I’ve noticed tat house had been built right in front enough, as I’m sure all you here know, that very often a social entrepreneur will of their old house, which was practically the three monotheistic religions of the see a real need clearly, but they don’t see falling over: the roof was clearly leaking, world are Christianity, Islam, and Juda- clearly where they’re going to get the obviously the windows were caving in, ism. And while they differ on many money to do anything about it. I re- and the floor was falling apart. It was a things, they all teach exactly the same mind them that it is as important to find terrible house by anybody’s standards.

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I don’t know what will happen to little David, I said that did know what has happened to another child, Cookie. Cookie was a little girl in the first family for whom we built a house: the Johnson family. There was Joseph Johnson, his wife Emma, and their chil- dren, Queenie, Sally, Junior, Cookie and Baby Sister. Those were the five chil- dren in that family. Interestingly enough, there was the same configura- tion in the first family as in the one hun- dred fifty thousandth family – mother, father and five children. But Cookie was a little girl in that family and because that was the first house that we were building I helped build it. We were lit- erally a mom and pop operation in the early days. I know how to wield a ham- mer and saw wood, and I helped build From left to right: Michael Tenbusch, CEO, Think Detroit; Cheryl Dorsey, Presi- our first houses. dent, Echoing Green Foundation; Daniel Varner, CEO, Think Detroit. When the Johnson house was fin- I went inside the house, and it was accept me. So I beckoned him to come ished, and we got to the point of sign- totally black; and the reason it was black to me, and he came running; and he ing the papers at the closing, Joseph was because it was black from mold. I came up in my arms. And I held little Johnson—whose nickname was Bo— was told that the five children who lived David while I talked about that dedica- told me very embarrassedly that he in that house were perpetually sick, sick tion. And little David helped me with didn’t know how to sign his own name. from living in that mold-infested house. my speech. When I would say some- He never learned how to read or write. But Habitat built them a new house lit- thing serious, he would look serious. So I had to sign Joseph Johnson’s name erally an arms-length away from their old When I would say something funny, he to that first mortgage that we ever wrote house; a beautiful white house, with would laugh. He was incredible. for the first house that we ever built and beautiful windows, a good roof, good But I told the audience that day that he put his mark, an X, next to the signa- walls, good floor—and that’s where they I didn’t know what little David would ture. were moving to. become. I didn’t know that I would ever Well, that family lived there all of As a part of the dedication cer- see him again in my life; but I said I these years since, and those five children emony that day we literally started tear- know one thing. We’re giving little grew up there, including little Cookie. ing down the old house. We were tear- David a better chance in life. For one Today that little girl whose daddy ing off the tiles and smashing the win- thing he won’t get sick anymore from couldn’t sign his name to the mortgage dows and ripping out the doors. It was mold. We’re getting him out of that old is writing mortgages herself because she’s a big program on national television that moldy house, and he and his brothers a lawyer. night, especially the part of tearing down and sisters won’t be sick anymore. It makes a big difference for a child the old house. And we are giving him a place where to have a decent place in which to live But when we started the dedication when he starts to school and his teach- and grow up. The work that we started that day I looked over at little David who ers give him a homework assignment, there in Sumter County thirty years ago I had just met a few minutes earlier, and he’ll have good place to come home to has continued, and on Friday afternoon I could just sense that even though I had and work on his assignments so that he September 15th, 2000 I stood in the front just met him that this little kid would will do better in school. I said that while yard of the Thomas family house in

5 THE MANHATTAN INSTITUTE Americus, Georgia to dedicate it as the house that ended poverty housing in our town and county. Then I went up to Harlem with Jimmy Carter and built the one hundred thousandth house built in the United States. Then I went down to Jacksonville, Florida where 10,000 vol- unteers were building 101 houses in 17 days; and then we went back over to where it all began in Americus in Sumter County George, where we were build- ing 35 houses in a week. One of those houses was a house called the Victory House because it sym- bolized our victory over poverty hous- ing in the county. We don’t have any From left to right: Larry Mone, President, Manhattan Institute; Ann Charters, poverty housing in Americus or Sumter Adjunct Fellow, Manhattan Institute; Darla Romfo, President, Children’s Scholar- County. We’ve made sure that there is a ship Fund. good house for every family in our town and in our county. I stood in the front place to live, every child has a place to you’ll get the information and take ac- yard of the Victory House with about study his or her school lessons every night tion to change things for the better. 400 people there and led the people in so that that child will be able to rise to his I am very passionate about what I singing an old Southern gospel song, or her highest potential. No society is so do, and I know that the people who are “Victory In Jesus.” That was a glorious well off that it can afford to squander the being honored here tonight are passion- moment. children of its next generation. And that’s ate about what they are doing. In clos- That successful effort to eliminate what you do when you consign a certain ing, let me congratulate them and all of poverty housing in an entire county has percentage of your population to live in you for recognizing young social entre- brought about what we call the 21st Cen- substandard housing. preneurs who are rendering a great ser- tury Challenge, where we now are chal- So this is the message that I’ve con- vice to society. I am honored beyond lenging communities to eliminate all sistently delivered over the past 27 years, words to be here tonight and share your poverty housing (and I issued that chal- and that message has fallen on receptive celebration of social entrepreneurship. I lenge as recently as today in Westchester, ears in so many places. We now have salute the Manhattan Institute for mak- New York). literally millions and millions of people ing these awards possible. Thank you They’ve done a study in Westchester who are joining to help us, including and God bless you. County and found that there are 80,000 students at 774 colleges and universities. people in Westchester County, New York Today Habitat for Humanity is the larg- MR. HOWARD HUSOCK: Before we living in substandard housing—in one est student organization on campus at present the awards to our honorees to- of the richest counties in the world. So many, many colleges and universities. night, I’d like to just say a few words I issued the challenge to Westchester But I think the world needs more about them as a group—echoing much County. I said by what date are you people who see undesirable social con- of what Millard Fuller has so eloquently going to end poverty housing? We did ditions and stand up and boldly say, let’s said. We gather tonight to honor five it in Sumter County, Georgia. Are the change things. Let’s take whatever ac- organizations and their founders. On folks in Sumter County, Georgia smarter tion is necessary to make things better the surface, our honorees might not ap- than the folks in Westchester County in and find out what buttons we can push pear to belong together on the same pro- New York? Well, they weren’t ready to to get people to act. gram. They are doing, to put it mildly, admit that. It’s my belief that it’s more impor- very different sorts of things in very dif- And so I said you need to consider tant to give inspiration than it is to give ferent sorts of places. that families living in undesirable hous- information because you can be as in- Mike Tenbusch and Dan Varner ing is a disgrace, and you need to change formed as you want to be, but if you’re from Think Detroit are running an in- disgrace into grace; and the way you do not inspired, you won’t do anything ner city baseball league. Chad Pregracke that is make sure every child has a good about it. But if you’re inspired, then and his group, Living Lands and Waters,

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are picking up old tires on the banks of ing the reach of affordable health insur- and they did not respond. Gerald the Mississippi River. Gerald ance to workers without steady employ- Chertavian rushed into the vacuum left Chertavian, founder of Year Up, trains ers. She has managed to find a solution, by ineffective public vocational educa- high school graduates for back office albeit a very limited one, to America’s tional programs not attuned to the ac- computer jobs in Boston’s health care healthcare crisis through her own com- tual needs of the contemporary job mar- and financial services institutions. Sara mitment and ingenuity. Kudos to all of ket. Sara Horowitz became fed up with Horowitz, who started Working Today, our winners tonight for finding solutions decades of public argument about how arranges health insurance for uninsured to problems that other people took for best to extend health insurance to the New York freelance professionals. And granted were unsolvable through indi- uninsured. She set about simply trying Amy Lemley, the visionary behind the vidual effort. to find an economical way to start do- First Place Fund, helps former foster It is an astounding and quintes- ing something about it. And there is at children in Oakland, California and the sentially American impulse to take on least one other thing they have in com- larger Bay Area stand on their own two big social problems in the belief that the mon: the struggle to find reliable sources feet as adults. individual can cut them down to size. of funding. Despite the diversity of their orga- A hundred years ago Lillian Wald was But I am really only repeating the nizations and social commitments, there doing the same thing as she worked to things they told me when I went out to is one deeply important element of their Americanize New York’s immigrants on visit them. Almost by definition those work that unites all of this year’s win- the lower east side at the Henry Street who benefit most from social service pro- ners. Each honoree has, as an individual, Settlement. Nearly thirty years ago grams are in no position to pay for the been moved to take on a big important Millard Fuller was doing the same thing benefits that they receive. Each of our public problem in the belief that as an in Americus, Georgia as he took on those award winners, despite their commitment individual they should and could do dilapidated one-room shacks. and quantifiable success—and the Man- something about it. As a result, all of Our winners tonight have some hattan Institute demands that all of our them have been remarkably successful. other subtle commonalities as well, award winners show quantifiable results That’s what Millard Fuller just told us which one discovers when one is privi- that demonstrate their effectiveness— that he did when he founded Habitat leged, as I was, to have conversations must scrape and struggle to find the fi- for Humanity. with them. In their own ways they have nancial support to keep going next year. Just consider the problems that all been frustrated by the ineffectiveness Despite their serious doubts about they’ve tackled. Think Detroit is doing of government in dealing with the issues the efficacy of public funding, this year’s something about the problem of father- that concern them. social entrepreneurship winners, like less inner city youth in need of guidance, Mike Tenbusch and Dan Varner in some of their predecessors, often find and is helping to restore the social fabric Detroit watched as the Detroit Recre- themselves driven into the arms of gov- of poor Detroit neighborhoods. The ation Department was spending about ernment for lack of funding sources that First Place Fund for Youth is striving to six hundred times as much as they were are consistently available for the long haul. reduce youth homelessness by providing are every year and yet still let the city’s And make no mistake; public funding life skills and self-discipline for foster public parks fall into disrepair thanks to does have real drawbacks in terms of its children who age-out of foster care, a the Department’s patronage employees lack of flexibility and abundance of red group that is very much at risk for be- and indifferent leadership. tape. I would ask everyone here tonight coming homeless. Chad Pregracke is Amy Lemley watched foster chil- to ask themselves if the experience of so- taking responsibility for the environ- dren emancipated at age 18 leave state cial entrepreneurs should make private mental protection and upkeep of the supported institutions with nothing but philanthropy donors reconsider the con- most storied river in America. Gerald a garbage bag filled with their meager ventional wisdom that grants are best Chertavian is helping those who might belongings and nowhere else to go. made on a short term basis. well be left out of the modern economy Chad Pregracke was outraged when he Now, without any further ado, I’d take their place in it, and Sara Horowitz called public agencies to ask if something like to introduce our winners. Let me is tackling a problem that has stymied could be done about the mounds of trash begin with the founder of Boston’s Year many American politicians by extend- blighting America’s historic river ways, Up program. Gerald Chertavian has

7 THE MANHATTAN INSTITUTE taken it upon himself to reinvent voca- tional education. But the really impres- sive thing about the program that he cre- ated is it breadth and vision. He makes sure that in his vocational education pro- gram the students have conversations about current events—because, he said, if the graduates of our program don’t know who the governor is when they get a job, they’re not really going to fit into the workplace. They need to know so- cial facts as well as how to use a com- puter. Please welcome Gerald Chertavian.

MR. GERALD CHERTAVIAN: First From left to right: Joseph Dolan, Executive Director, Achelis and Bodman Founda- I would like to say that, as I was listen- tions; Larry Mone, President, Manhattan Institute; Carl Helstrom, Associate Ex- ing to Millard Fuller, that I was inspired, ecutive Director, The JM Foundation. absolutely inspired. I was overcome with emotion at times. I was also a little bit group of young boys who had the talent able asset for those corporations who are fearful because I realized that I would and savvy and everything they needed really struggling to build effective and have to be the first person to follow up to succeed, but they didn’t have the op- heterogeneous workforces. But that’s not after him. portunity to get into the mainstream why they choose us. But as hard as it is to follow such an economy. This struck me as a tremen- They choose us because we have inspirational human being, I first want dous waste of human capital. wonderfully talented people that they to say thank you very much for provid- At the same time, we recognized need, and so it’s not only the right thing ing me with an opportunity to speak to that our businesses would not be able to to do but also it’s good business sense you this evening. I’m particularly grate- hire a diverse set of entry-level skilled for these organizations to employ our ful to be here. employees to meet their needs—people interns. In fact it’s not only good busi- I also would like to say that I be- with the right attitudes, behaviors, and ness sense for them, but for the govern- lieve very strongly in what the Manhat- skills over the next 20, 30 years. We re- ment as well. We had a team of MIT tan Institute does as an organization, alized that the economy is going to be students who came to Year Up and ana- especially in terms of how they approach facing a real gap. So what we did was to lyzed our output of human capital and public policy. As someone who spent put together the urban young adults we told us that the net present value of the the majority of his career in the private believed in with the corporations that incremental tax revenue these students sector, I’ve always had a very strong be- we knew didn’t have access to those en- will generate is about $200,000—be- lief in market-based approaches. In fact, try level skilled employees. We created cause they’ve become productive tax pay- it was that private sector mindset, simi- a program that provided urban young ing citizens. lar to Millard Fuller’s, that enabled me adults with the set of professional and Currently, we serve about 120 stu- to actually do the work I do today for a technical skills that enable them to find dents a year. We’re also opening up a cause that I’ve held near and dear to my good jobs with good corporations and site in Providence, Rhode Island. We’re heart for a lot of years, how to use the for which they would pay very good trying to branch out to New York City market to solve social problems. money. over time. We’re doing some research In the case of Year Up we started In fact, half of Year Up’s revenue, if there, and I do know that our vision of with the belief that every urban young not more, comes from the companies touching 10,000 people—and after I adult deserves an opportunity—not a who pay us for the interns we provide heard Millard Fuller say that Habitat has handout but an opportunity to realize them, and that revenue enables us to live built 150,000 houses I think that maybe their full potential. In fact, in my case, as a program and limit our dependence Year Up should raise our sights quite a I worked for three years right here in on public sources of funding. The fact bit—but we do have the vision to really New York down on Delancey and that our students are 100% low income have a national impact and create some- Rutgers Street in Manhattan with a and 95% of color is, I think, a very valu- thing that is truly replicable and scalable.

SOCIAL ENTREPRENEURSHIP AWARDS 2003 8 SOCIAL ENTREPRENEURSHIP AWARD DINNER 2003

actually work. So what did we do in New York? We started a portable benefits network by figuring out new ways to reach individuals who could not get health insurance, because in the U.S. the two major ways that people get health insurance is through their employer and through the state. But, now, about a third of the work force actually doesn’t work for a steady employer. Our healthcare systems have really been designed for the 1930s and as a re- sult many Americans have been falling through the cracks. So why would this be something that Working Today or I might have some ideas about? Going back to what Millard was talking about earlier, I started Working Today in 1995 by focusing on what was happening to people who are working independently, From left to right: Donna Thompson, Director of Special Projects, Manhattan Insti- people who work as freelancers, consult- tute; John Krieger, Program Officer, Achelis and Bodman Foundations; Sheila J. ants, some creative professions, and some Mulcahy, Program Officer, William E. Simon Foundation. not so creative—nannies, cab drivers, But with people like the people who friends here at the Manhattan Institute. and the like—but what they all have in are here tonight in this room, with or- It’s really quite an honor to be here to- common is that they had great difficulty ganizations like Manhattan Institute, I’m night. I’d also like to say before I start, coming by health insurance, a problem quite confident that some day we’ll be that the social entrepreneur world is re- affecting people across the country. able to reach our goals. So, again, thank ally just an incredible community of When you started asking them what you very much for recognizing our work. people who really are doers, people who was their number one concern, it was We’re very honored to be here tonight. aren’t the ones who criticize social prob- the lack of health insurance. So with My wife is here as well, and I have to say lems from the sidelines, even though zero interest in health insurance and zero that she is invaluable—I could not have many of us feel somewhat frustrated by knowledge about the field, I thought, started Year Up without her. the political world that we live in because “how hard could this problem be to fix?” we’d really like to just figure out some As you can imagine, it turned out to be MR. HOWARD HUSOCK: Thank solutions. That frustration was brought pretty hard. you, Gerald. Our next honoree, Sara me into social entrepreneurship and My background is that I grew up in Horowitz, is doing something that helped give me a place to start. a labor family. My grandfather was a anyone with common sense will look at We all have heard the statistics now Vice President of the International La- and think is a good and constructive about the uninsured—about 46 million dies’ Garment Workers Union. My fa- thing for our society, helping the Americans. The Congressional Budget ther was a union-side labor lawyer. I’m uninsured get health insurance. Please Office also estimates that up to 60 mil- married to a union-side labor lawyer. I welcome our second award winner, from lion Americans have gone without health have a three and a half year-old future Brooklyn, New York, Sara Horowitz of insurance at one time or another over labor leader in the family. And so, since Working Today. the last two years. I had all of these labor roots and con- We can really see that in this coun- tacts, I started to try and solve this prob- MS. SARA HOROWITZ: I do really try we really haven’t been able to tackle lem by going to the tools I knew and I want to say thank you so much to my this by focusing on programs that could eventually realized that actually you

9 THE MANHATTAN INSTITUTE couldn’t just come at this problem from Journal. In fact, Habitat for Humanity educational situations and send them on an ideological perspective, but you had is about the only housing program I ever a straight and narrow path to success. to try to find an innovative solution that wrote anything good about. But over the course of the next three was already out there. You really have But one of the great things about years that I worked there, I realized that to start with already works. Amy Lemley, and the First Place Fund, in fact the challenges facing youth who So in 1995 when I started on this is that she’s figuring out a way to use are aging out of care are tremendous. In journey, I had no interest not only in housing in a way that helps people build fact what I saw was as they turned 18 health insurance, I didn’t even know character and prepare for adult life. years old was that instead of being a what a social entrepreneur was. And in Working with the small landlords of East springboard into a productive life of self- my family an entrepreneur wasn’t nec- Oakland, she says to former foster chil- sufficiency, they became homeless. My essarily the best thing to be. dren that we’ll give you free rent the first job, the lucky job I had, was to help load But what I’ve grown to love about month, but over next two years you’re up their personal belongings into what social entrepreneurship is that if any- going to have to pay a little bit more each was often a black garbage bag and basi- thing we’re radical pragmatists, that re- month so that at the end of two years cally escort them to the perimeter of our ally what we just want to do is solve a you’re going to pay the rent yourself and premises. That got me pretty depressed. problem. What’s so wonderful about be self-sufficient. At first I thought that I was just a listening social entrepreneurs hearing To support the First Place Fund she bad case manager. I became convinced them tell their stories? How did they signed up many small landlords and got that it was my case management skills, get to where they are? What was the them to believe in her program, and it but over the course of time and over the moment that inspired them to act? takes an entrepreneur to do that and that course of working on my Master’s De- What was their epiphany? And all of us impressed me as well. So I’m very glad gree in Public Policy, I came to under- have very personal stories because our to be joined here tonight by the founder stand that foster care in the United States vocations grow out of a deep passion. of the First Place Fund for Youth, Amy is tremendously broken; and it is, I think, But it’s not just this naïve feeling of do- Lemley. maybe the most poignant example of a ing something good, it’s people who are terrible failing in the public sector. rooted, people who really know some- MS. AMY LEMLEY: Thank you very The public sector removes children thing and have a skill set who really keep much. It’s a real honor to be here to- from their families based on specific cri- pushing and pushing and don’t accept night. I’m totally overwhelmed, and I teria and places them in the foster care no for an answer and just keep pushing just want to thank by thanking Mr. system; however, it fails to provide them the envelope. Fuller for his remarks. It was a real in- with an environment where children and I would like to thank the Manhat- spiration and a real source of hope think- youth can thrive and succeed as adults. tan Institute for recognizing people who ing that what we have started on a small So after leaving the group home are pushing the envelope. I also have to level can some day expand to a nation where I worked, I went to graduate thank my staff, Stephanie Buchanan who wide approach to ending homelessness school and really learned about foster does our development and policies, Jes- among former foster youth. care on a national level; and I realized sica Friereich who works with Monitor I got involved in the issue of that, nationwide, children have the very in support of social entrepreneurs, and homelessness among former foster youth bad habit of exiting out of foster care New Profit Inc., which is one of our sig- as a case manager in a group home for into homelessness. Nationwide we have nificant helpers and funders. I would parenting pregnant teens. I was the very 25,000 youth a year exit foster care and also like to thank Elise Krull who does bottom person on the administrative face homelessness, which is just tragic. our member services, and Margaret rung, and I worked with 13 young I mean it’s one thing if they’re living with Remsky who does our great advertising. women and their 13 children. These a family where abuse and neglect is go- But I have to say a special thanks to my were young women who had been re- ing on. It’s another thing if we remove first funder, my husband Peter De Kiera moved from their homes due to neglect them from that family, spend $400 mil- who has been just a great friend and sup- and abuse and placed into a group home lion on them, and then leave them porter for 17 years. Thank you so much. in Boston, Massachusetts. At the time I homeless. thought this should be no big problem. So after graduate school I had the MR. HOWARD HUSOCK: Some of I’m a pretty smart young woman. I can very, very good fortune of receiving an you may know that I write about hous- probably figure out how to hook them Echoing Green Fellowship, and tonight ing issues for the Manhattan Institute’s up with a job, and get their medical Cheryl Dorsey, the President of the journal of culture and urban affairs, City needs taken care of, and figure out their Echoing Green Foundation, is here with

SOCIAL ENTREPRENEURSHIP AWARDS 2003 10 SOCIAL ENTREPRENEURSHIP AWARD DINNER 2003

us tonight. Echoing Green gave us the Nya is typical, but she’s in no way typi- Please welcome the founder of Liv- seed money to start in the first place. cal. Nya is exactly the kind of young ing Lands and Waters, Chad Pregracke. The whole mission of the First Place person we help, people who are hungry Fund is to end homelessness for youth for opportunity and who see the good MR. CHAD PREGRACKE: Thank aging out of foster care by providing deal that First Place Fund is offering and you. I just want to say that it’s a big them with the same opportunities and take full advantage of it. honor to be here, and I really appreciate resources that middle income Americans When Nya entered the First Place the opportunity to be able to come up get. Some people can’t imagine how we Fund, she did not have a high school here and visit New York. It’s definitely a get the result that we achieve. But we diploma despite the fact that she was lot different from Iowa. make progress by applying the same discharged from foster care. During her I want to thank the Manhattan In- standards to our kids as middle-class tenure with us, she went back to a jun- stitute for having me here and thank all parents apply their children, and by ior college, got her high school diploma, of the other recipients tonight for giv- making those same resources and stan- got her associates digress, was awarded a ing me even more inspiration. And, I dards available to young people exiting Gates Millennium Scholarship and came want to thank my parents for their ter- the foster care system. out to Marymount Manhattan College rific support. But really, the major thing we’re try- here in New York and has since received I grew up on the banks of Missis- ing to accomplish focuses on housing, her Bachelor’s Degree. sippi River, and just in a very simple way because, like Habitat for Humanity, we She’s just one example of what can saw the plight of the river. I tried call- also recognize that without a safe, afford- really happen when we take the time to ing the state for four years, starting when able place to live young people don’t provide young adults with the resources I was 17 years old because I thought that stand a chance. And so our housing is and support they need to make a success- the Mississippi River is a national trea- not transitional housing, it’s permanent ful transition from childhood to adults. sure. It’s like a national park, the housing. It’s a place where young people In closing, I want to recognize First Yellowstone of the Midwest and no one can end the cycle of transiency that they Place’s co-founder Deanne Perrin. would think of going to our other na- experience in foster care and begin to Deanne is my best friend, and she lis- tional parks and finding tires, barrels and invest and put roots down in a commu- tens to all my complaints, and I just feel other garbage strewn about for miles. nity. This helps them to find a place tremendously fortunate to have the op- I finally just decided that if nobody where they can feel safe. portunity to work with her. I’d also like else was going to act, then I would. I But what that also means is that we to recognize my mother Mary Lemley, didn’t know what I would do, but my need to find a way for them to pay their my husband Justin Horner, and my first problem was finding the money to rent. So as Howard said, our assistance other best friend Juliet. I would like to get going. My inspiration was a is temporary, not permanent. Over a say again that this is a tremendous honor, NASCAR race I saw on TV when I was twenty-four month period we work with and I just want to thank the Manhattan in college. I thought that if a company young people to help them basically Institute very much. will sponsor a racecar, it would definitely springboard into the mainstream sponsor a river cleanup—if I supplied economy. If after twenty-four months MR. HOWARD HUSOCK: When I the people. Six years later, we had four our young people are still working in last saw Chad Pregacke I was trying to barges and a floating classroom; and service-sector jobs paying only 30% of avoid getting poison ivy on the Missis- we’ve picked over 900 tons of debris out their income, then we haven’t done our sippi River. Chad has a tremendous of the river and had over 10,000 volun- job. Our goal is to integrate young floating barge operation, with four teers. people into the mainstream economy barges. Chad goes up and down the We have more and more equipment where they find living wage employment Mississippi River cleaning up; and he’s all the time. We have six workboats, and pay market rate housing. got hundreds of people helping him, barges, work trucks and everything we So for that reason it’s a special treat hundreds of people who volunteer to need for the clean up. We have created tonight to have one our very first par- save that great old river. It’s like an old- an opportunity for people to go out there ticipants. I’d like to take a moment to fashioned barn raising except it’s a tire and do something positive for the river. recognize Nya Ellen. I’d like to say that picker-upper, for lack of a better phrase. I didn’t realize when we started that we

11 THE MANHATTAN INSTITUTE were encouraging social change. But that’s what we did. But it really has gone that way, and that’s what it is. It took, though, a lot of hard work and persistence. I thought I could do it all alone, but I didn’t realize the scope of the work or understand what it really took to make a project like this work. It takes thousands of people to help out for a common cause. When you can do that, then things really do change. And that’s its own reward. But I do appreciate you having me here to- night, and recognizing our work.

MR. HOWARD HUSOCK: In inner From left to right: Charles Hamilton, Executive Director, The Clark Foundation; city Detroit, you can now find literally Carl Helstrom, Associate Executive Director, The JM Foundation; Elizabeth Fonseca, hundreds of people reinventing Little JM Kaplan Fund. League baseball. Families from middle class neighborhoods can take it for tial donors. I would also like to thank what social entrepreneurism is really all granted that Little League exists. Well, Echoing Green for investing in Think about. I’ve been given that opportunity, in a lot of neighborhoods Little League Detroit when we didn’t have anything and I’d like to thank the Manhattan doesn’t exist because it takes a lot of but an idea between us six years ago. Institute and everybody here for giving things to make Little League happen. It Finally I’d just like to thank the us recognition for our work and re- takes coaches, it takes sign-up sheets, it good Lord for blessing me with a won- inspiring us to do even more. takes the infrastructure of social capital, derful life. That’s why we can’t give up if I can use that jargon. But that “social on these kids—because they have so MR. HOWARD HUSOCK: I would capital” is exactly what Mike Tenbusch much to do and become in their lives. just like to recognize a few members of and Dan Varner have brought back to They’re just like us; the Lord has given the Social Entrepreneurship Award Se- inner city Detroit, and a lot of people them talents. We’re just trying to give lection Committee who are here tonight. are better off because of it. It’s my great them the opportunity to make the most First, there is Cheryl Keller. And then privilege and honor to introduce our fi- of those talents. Charles Hamilton from the Clark nal award winners tonight, the founders Foundation. Finally, I would like to rec- of Think Detroit, Mike Tenbusch and MR. DANIEL VARNER: I have to ad- ognize Larry Mone, President of the Dan Varner. mit that I really don’t know what to say. Manhattan Institute. I’m an attorney by education. I am a In closing I’d just like to say to all MR. MICHAEL TENBUSCH: The litigator by nature, so I thought I would of you who are in a position to know or most important thing we do at Think just get up here and right away some- know of a social entrepreneur, please Detroit is put good coaches in kid’s lives. thing would just come to me. nominate them for next year’s award. I A good coach gives player in his team a But after listening to Millard and hope to visit one of the sites that you feeling of being special, and gives every all of the other folks who are receiving nominate. Many of you in this room player higher expectations than he or she awards tonight, I’m really humbled, by have nominated programs in the past, ever has had for themselves. I know a the scope of all the wonderful work that’s and some of you have nominated win- good coach helped make a difference for going on around me. It’s truly mind ners. I hope that will happen again, and me during a critical juncture in my life, boggling to see everything that’s taking I think that we should all be grateful that and I still feel a debt of gratitude to that place, and really inspirational. there are wonderful people out there to person. At the end of the day there are a lot nominate. That type of gratitude is what I’ll of people who really want to make a Thank you very much for coming always feel to The Manhattan Institute difference, who really just want to fix tonight. Please join me in a last round for this award, because it’s helping Think problems and we just need to give them of applause for all of our winners and Detroit have higher visibility for poten- a chance to do that, to really experience for Millard Fuller.

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