Annual Report 2007 ACCESS TO JUSTICE ACCESS TO EDUCATION ACCESS TO OPPORTUNITY

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1 Annual Report 2007 ACCESS TO JUSTICE ACCESS TO EDUCATION ACCESS TO OPPORTUNITY

2 he Seeds of Justice Dear Friends and Supporters of Appleseed: This has been an exciting year for Appleseed, full of significant changes and important steps forward. Most notably Betsy Cavendish joined Appleseed as executive director in March, following a lengthy search of high-caliber candidates to replace Linda Singer, who left to serve as attorney general for the District of Columbia. Betsy came to Appleseed after 25 years of service in the public arena, including work in all three branches of government, academia and at non-profits. She has a keen sense of the unique role Appleseed plays as a dynamic, dependable and results-oriented organization that brings together top professionals to uncover and correct social injustices. We are also particularly proud this year that Appleseed re-established a New York Office with the generous assistance of Jones Day, which sponsored a fellow to lead it, and Shearman & Sterling, which provided office space. With excellent staff and a top-notch advisory board, the New York office succeeded in launching four projects to improve the delivery of public and financial services, including an examination of public libraries as joint-use facilities for community assets such as schools or affordable housing. Pro bono assistance for that project is being provided by Orrick, Herrington & Sutcliffe. The state of our network is strong. A few highlights: our Mexico Center has forged ties at the highest levels of government and business, and is building a culture of giving back among firms and corporations. Our revitalized Louisiana Center now has two staff members and has won numerous accolades for its leadership in rebuilding New Orleans post-katrina. Large, strong Centers in Nebraska, South Carolina. Texas and Washington, D.C. make headlines for their pathbreaking reports, legal work and creative solutions to tough social problems in such areas as immigrant rights, health care and financial access. Younger Centers in Georgia and Washington State made a major splash with projects focusing on cutting-edge issue like juvenile justice and education reform. The impact of Chicago Appleseed s work extends far beyond its state boundaries, yet it is a major public interest force in Chicago itself and in the Appleseed network. Your gifts to Appleseed go directly toward building a more just society. Indeed, Appleseed received over $3 million in donated pro bono legal services in FY , and had a clean audit with no management letter. One prominent monitor of charities suggests that program expenses should be at least 65 percent of total expenses. We are proud to say that 85 percent of Appleseed s expenses went to program. It has been a source of pride for each of us to serve as co-chairs of Appleseed this year. We invite all who value our mission to deepen their commitment to building a just society by giving generously to Appleseed and providing invaluable pro bono support. Robert Mallett, Co-Chair Senior Vice President, Worldwide Public Affairs and Policy for Pfizer; President of the Pfizer Foundation Marc Fleischaker, Co-Chair Chairman, Arent Fox

3 A Message from the Executive Director: It is a pleasure to be leading this vibrant organization with its limitless potential to engage professionals in uncovering and correcting social injustices through legal, legislative and market-based reform. My vision for Appleseed is to ensure that through strategic initiatives, and with the support of donors and volunteers, we will bring the promise of equal opportunity ever closer to reality. We will strengthen our existing centers, build new ones, and widen our circle of well-connected, powerful volunteers and donors to ensure that opportunities are genuine, access to the law is universal and equal, and government advances the public interest. Appleseed does not merely sow the seeds of justice; Appleseed and our network of centers are in fact reaping justice, by ensuring that we achieve long-term structural solutions. That means matching the excellent caliber of Appleseed s research and publications with equally effective action plans that translate into lasting change. It means helping Centers replicate the best work of colleague Centers. And it means ensuring strong funding for collaborative projects so that centers can leverage resources to maximize local impact. We couldn t do this without strong staff. Appleseed owes a debt of gratitude to the interim executive directors Annette LoVoi and Michael Tune, and to the fine staff who didn t miss a beat when the Board conducted a search for a new executive director. Staff expertise this year has been bolstered by Eric Gutiérrez, Esq., our new immigrant policy director, and Allison Berger Tiller, Esq., our first full-time director of the Hurricane Katrina Relief Project. Working in concert with many of our 16 centers, Appleseed made significant strides in key collaborative project areas this year, including financial access, education, Hurricane Katrina relief and response, workplace supports for low-income wage earners, and immigrant rights. A few highlights from our national collaborative project work: Through a Fair Exchange pilot program, testimony before legislators, and collaboration with financial institutions, Appleseed is ensuring that the gigantic remittance market is treating its customers fairly and transparently. immigration law. We will soon be releasing an updated version of our 2006 report Forcing Our Blues into Gray Areas. It demonstrates that marshalling local law enforcement in service of federal immigration law subverts community policing. Assisting heir property owners is a new focus for Appleseed. Katrina brought this issue to our attention when hurricane victims were unable to collect insurance or secure credit to rebuild their homes because the properties that had been in their family for generations lacked clear title. Appleseed s expertise on the vital issue of parent involvement in schools typifies our non-partisan, common-sense approach to tough problems. Edwin Darden, Esq., Appleseed s director of education policy, has published op-eds, provided key background for Senate legislation and worked closely with local school districts through Appleseed Centers and at national conferences to ensure schools engage low-income parents effectively in their children s educations. How to sum up these areas of work? Appleseed is making sure that markets work for people; that witnesses and victims of crime do not hide in fear of being deported for reporting crimes; that longstanding residents are not displaced from homes and can tap into credit and insurance markets, and that schools are working with parents to give all children a fair shot at a good education. That s work Appleseed is proud of. Thank you. Betsy Cavendish Executive Director Appleseed is a key player in an important component of the immigration debate: fighting efforts to mobilize landlords and police to enforce

4 Appleseed Staff José Arévalo Edwin C. Darden Anna Figel Michael Gueltig Eric Gutiérrez Erica Henri Nakia Kelly Annette LoVoi Patti Riippa Allison Berger Tiller Michael Tune Controller Immigration Policy Director Communications Associate Education Policy Director Development Director Hurricane Katrina Project Director Development Associate Event Planner Operations Director Executive Assistant Field Director Jordan Vexler Program Associate

5 Assets, Liabilities, and Net Assets Audited financial statement for the year ending June 30, 2007 Assets Cash and cash equivalents $796,602 Unconditional promises to give $388,849 Prepaid expenses $8,029 Property and equipment, net $8,121 Investments $955,027 Total assets $2,156,628 Liabilities and Net Assets Current Liabilities Due to centers $232,249 Accounts payable and accrued expenses $26,426 Total current liabilities $258,675 Net Assets Unrestricted $324,622 Temporarily restricted $1,509,165 Permanently restricted $64,166 Total net assets $1,897,953 Total liabilities and net assets $2,156,628 Support, Revenue, and Expenses Audited financial statement for the year ending June 30, 2007 Support and Revenue Contributions temporarily restricted $771,493 Contributions unrestricted $1,544,101 Investment income $159,814 Change in value of beneficial interest in remainder trusts $2,960 Donated services $3,066,870 Total support and revenue $5,545,238 Expenses and Distributions Total program services $4,874,842 Management and general expenses $366,482 Fundraising $500,359 Total expenses and distributions $5,741,683 Change in net assets ($196,445) Net assets beginning of period $2,094,398 Net assets end of period $1,897,953 A full audit for the fiscal year 2007 is available upon request Firm In-kind Supporters Adams and Reese Arent Fox Booz Allen Hamilton Dickstein Shapiro DLA Piper Faegre & Benson Holland & Knight Jones Day Kilpatrick Stockton King & Spalding Kirkland & Ellis Latham & Watkins O Melveny & Myers Orrick, Herrington & Sutcliffe Paul, Weiss, Rifkind, Wharton & Garrison Schulte Roth & Zabel Shearman & Sterling Sheppard Mullin Simpson Thacher & Bartlett Skadden, Arps, Slate, Meagher & Flom Steptoe and Johnson Weil Gotshal & Manges White & Case WilmerHale

6 Appleseed Board of Directors Marc Fleischaker (Co-Chair), Arent Fox PLLC Robert Mallett (Co-Chair), Pfizer Inc. James Rogers (Chair-Elect) Latham & Watkins LLP Malcolm Rich (Vice President) Chicago Appleseed Center Eric S. Koenig (Treasurer), Retired, Microsoft Corporation Kevin Arquit Simpson Thacher & Bartlett LLP Alicia Batts Proskauer Rose LLP Evelyn Becker O Melveny & Myers Fran Bermanzohn Goldman Sachs Brooks Burdette Schulte Roth & Zabel LLP Ronald Cami Cravath Swaine & Moore LLP Stephen M. Cutler JPMorgan Chase & Co. Maureen Del Duca Marriott International Natalia Delgado Huron Consulting Group David Douglass Shook, Hardy & Bacon LLP Stephen Gates Mayer Brown Richard Godfrey Kirkland & Ellis LLP Ralph Gonzalez Citigroup Inc. Edward Gray Morrison & Foerster LLP Barbara Harding Kirkland & Ellis LLP Larry Harris Ansible Eileen Hershenov Consumers Union Ted Hester King & Spalding LLP Jonathan Hiatt AFL-CIO A. Stephen Hut WilmerHale Ann Kappler WilmerHale Richard Ketchum New York Stock Exchange, Inc. Timothy J. Mayopoulos Bank of America Herbert E. Milstein Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Peter Mundheim Stone Point Capital Cecilia Muñoz National Council of La Raza Steve Newborn Weil Gotshal & Manges LLP Melanie Nussdorf Steptoe & Johnson LLP Tai Park Shearman & Sterling LLP James Patton Robert Half International R. Bruce Rich Weil, Gotshal & Manges LLP Alexis Rovzar White & Case LLP Philip Spector Intelsat, Ltd Martin Stern Adams and Reese LLP Kerry Sulkowicz The Boswell Group LLC Ronald Tabak Skadden, Arps, Slate, Meagher & Flom LLP Andy Tomback Milbank Tweed Hadley LLP Allan Van Fleet Greenberg Traurig, LLP Neal Wolin The Hartford Financial Services Group, Inc. Eric Zahler Formerly of Loral Space & Communications Center Representative Directors Frank Bailey Sherin & Lodgen LLP Jack Barnes Sowell, Gray, Stepp and Laffitte, LLP David Broderick McCarter & English, LLP A. Stephens Clay Kilpatrick Stockton LLP Gary Epstein Latham & Watkins LLP A.H. Gaede Jr. Bradley Arant Rose & White LLP R. James George George & Brothers, LLP Jack Focht Foulston & Siefkin LLP Forrest N. Krutter Berkshire Hathaway Group, Inc. Carlos Ortiz Mena Grupo Peñoles Charles F. Smith Skadden, Arps, Slate, Meagher & Flom LLP Arthur White Yankelovich Group Founding Directors Robert L. Bachner Phillips Nizer LLP Gail Erickson Retired, W.R. Grace & Co. Robert E. Herzstein Miller & Chevalier Mark Joelson Law Offices of Mark Joelson Edward M. Levin, Retired Department of Commerce Richard J. Medalie (Chair Emeritus) Law Offices of Richard J. Medalie Ralph Nader The Center for Study of Responsive Law Ralph I. Petersberger Retired, McDermott Will & Emery Bertrand B. Pogrebin Littler Mendelson P.C. Philip F. Zeidman DLA Piper Affiliations listed for identification only. Isaac Newton Society Cecily Baskir Susan Borschel Pillsbury Winthrop Shaw Pittman Kendall Burman Obama for America Pamela Cogut Debevoise & Plimpton Andrew Goldsmith Cravath, Swaine and Moore Karin Kincaid Pillsbury Winthrop Shaw Pittman With the power of your private sector partnerships and a nationwide pro bono network, you are able to make a difference in a way that few others can Whether it s securing financial access for all, advocating for improved health care coverage, ensuring justice for the accused, expanding educational opportunity, or protecting the vulnerable and the voiceless; Appleseed is there. -Sen. Amy Klobuchar (Minn.) Jennifer Lee Stanford Law School Immigrants Rights Clinic Olabisi Onisile Angie Pegram Department of Justice Kathy Scott White and Case Rachel Tausend Stradley Ronon Stevens & Young

7 For more information about Appleseed and our programs please visit or call

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