Archive for the ‘PEP Communications’ Category

PEP Challenge Sign

If you’ve kept up with our blog, you have read some amazing stories of life transformation in the past few months.

You have read graduate about Adam C., who shared that PEP taught him that “beauty could rise from the ashes of (a) brokenhearted young man.” You have read graduate Lance N.’s story about how PEP helped him to find his first job (and why he donates to PEP each month). Graduate David F. shared how he had never stayed out of jail for more than a year, but now has been out for more than three years thanks to PEP. Others, like Devon S. and Cristian H. , shared how God has changed their lives through PEP.

And all of that was just in October!

Just imagine the stories that you can make possible over the next year.

The Prison Entrepreneurship Program is rapidly growing. This past August, we launched our operations in a second prison in Texas. By 2015, we might be able to serve nearly twice as many people as we did at the beginning of this year… provided that we have the funding to do so.

PEP is 100% privately funded. Without donors like you, graduate Clay T. may not have paid of $44K in debt and graduate James C. may not have generated over $5MM in sales through his business.

You make these stories possible. That is why we are asking for your help today.

We need to raise $190,000 by December 31, 2014.

These funds will ensure that we can launch into 2015 with full force, rapidly expanding our presence both inside of prison and outside of the walls. Your gift will make sure that 100% of our graduates find a job within 90 days of release from prison and that their likelihood of returning to crime drops by 80-90%.

Help us Meet the Challenge!


Thanks to the PEP Board of Directors, we have the potential to match every gift!

  • One-time gifts will be matched dollar-for-dollar. That means a gift of $1,000 will instantly become $2,000!
  • Monthly commitments will be matched TWO to one based on their annual value! That means a commitment of $100 per month will receive a $2,400 match – making a $3,600 combined impact on PEP!

Where else can you make this kind of impact?

Your gifts matter.

Can we count on you?

Bert Smith

nacogdoches rotary

Brad C. and two PEP volunteers, Sherry P. and Carl. P, with a leader of the Rotary Club of Nacogdoches

The PEP Revolution rolls on … into Nacogdoches, Texas!

The local Rotary Club invited one of our graduates and two of our volunteers to share their story with the member of the club. Pictured here are the presenters, who spoke to over 100 people in an event that was later broadcast on television through KTRE (click here for the video).

(To learn more about Sherry’s son Kevin, read his guest blog here or watch his video here)

We are so very grateful for the many people who join us in our effort to transform the prison system.


Please take a moment to watch the video below … and then share it!

Nacogdoches couple touts prison entrepreneurship program that changed son's life

Check out this 2-minute video interview of James Cornish, PEP graduate and founder of Cornish Trucking!

James Cornish from Francisco Castro on Vimeo. This video was originally featured in The Houston Press’s article on PEP.

(If that video will not play, click here)

Great news! Photos are now available from the Class #Transcendent 22 Kickoff … as well as their headshots and some special images from a recent Houston Press article on PEP!

See the whole gallery here:

Special thanks to our long-time photographer, Israel Thompson, for these amazing images. We especially love this shot of three graduates who now work for PEP …. Al Massey (Executive Relations Manager), Marcus Hill (Recruiter), and Charles Hearne (Development Associate).

Most PEP Staff members are also graduates, including Al Massey, Marcus Hill and Charles Hearne.

Most PEP Staff members are also graduates, including Al Massey, Marcus Hill and Charles Hearne.

Check out this awesome video by the United Way of Metropolitan Dallas that profiles PEP Class 6 graduate Kevin R., the founder and CEO of a limousine and car-for-hire services in the Dallas/Fort Worth area.

Thanks to support from PEP, Kevin launched his transportation business earlier this year. He has already generated over $30,000 in the first four months of operations and is preparing to add a second car soon.

Most importantly, Kevin has maintained a great relationship with his son (as he wrote previously here).

Please join us in congratulating Kevin (and thanking the United Way for this great video)!

Prison Entrepreneurship Program Class 20 Graduation PhotoThe final photos from PEP’s Class “Tenacious” 20 Business Plan Competition and Graduation are now available!

You can see all of the galleries here.

You can see the new gallery of Business Plan Competition photos here.

You can see the new gallery of group shots with our executives volunteers here.

Thank you!

Phillip D, PEP Graduate and Winner of the Class 20 Business Plan Competition

Phillip D, PEP Graduate and Winner of the Class 20 Business Plan Competition

On Friday, December 13, 2013, over seventy men walked across the graduation stage at PEP. Among them stood the 1,000th graduate to earn a PEP diploma!

Please take a moment to celebrate this momentous occasion by looking through the family portraits with the graduates. Hundreds of family members were joined by a large group of PEP’s executive volunteers who were there to cheer for the graduates of Class “Tenacious” 20! Several of these volunteers serve as “honorary family members” for the men whose families did not attend the ceremony.

See the first round of photos here:

This week in prison, Class 21 also completed our Prep Class (the precursor to the full Business Plan Competition that they will start next month). We also completed our “peer panels,” the final evaluations of prospective Class 22 participants. These evaluations are conducted by PEP’s graduates who are in the “servant leadership” phase of their work with PEP … sowing back into the program as our volunteer leaders before they are released from prison.

Class 21’s Kickoff is on Friday, January 24, 2014 from 11:30 am – 5:00 pm. If you would like to join us, please register here.

See you in prison!

At PEP, nearly in 1 in 3 donations that we receive is from a formerly incarcerated graduate of our program. Many of them are now registered as PEP Partners, making monthly donations to support our work. For many, these gifts are significant financial sacrifices that they make in order to help their brothers who are still in prison.

To understand what could transform a felon into a philanthropist, we asked several of them: “What are you thankful for?”

May their answers remind you of the many reasons that each of us has to be grateful this holiday season!

If the video below is not working, please click here to watch it on a separate page.

Thanks to a generous donation from the Laura & John Arnold Foundation and The Giving Library, we were able to produce the video below as the introduction to a series of videos about PEP. This video features PEP’s Prison Initiatives Manager, Pat McGee, who shares his story along with a bold vision for the future of PEP. Enjoy… and please share!

auto-lab texas  autolabDear Friends:

As many of you know, the Prison Entrepreneurship Program has spent the past three years focused on two important initiatives: expanding our core programs and strengthening our long-term sustainability.

As our recent annual reports have demonstrated, we have made great progress on the first of these. PEP is now graduating more men than ever before while maintaining or improving our already best-in-class results in the areas of post-release employment, small business development and prevention of recidivism. This is attributable to the prayers and tremendous support that many of you have provided to PEP, as well as the prayers and hard work of our board, staff, volunteers and especially our participants.

Today, we are very excited to announce a major milestone on the second of these two primary initiatives:

PEP’s for-profit subsidiary, Communitas Auto Group LLC, has purchased the rights to become the exclusive master franchisee for Auto-Lab Complete Car Care Centers for the State of Texas.

We are working with Auto-Lab on the official press release, but I wanted you to be among the first to know about this significant development.  I also want you to understand the particular implications for PEP.

As the master franchisee for Texas, PEP’s Communitas Auto Group (“CAG”) will build and operate general auto repair shops under the Auto-Lab of Texas brand.  We will also promote the growth of the franchise throughout the state and will provide support to franchises sold anywhere in Texas. Immediate plans call for opening two locations within the first year, likely both within the Houston area. Once these stores are established, CAG will then look to expand to other major metro markets in Texas.

Throughout this process, we have been guided by Dr. Ben Litalien, Certified Franchise Executive. Ben is the Founder & Principal of FranchiseWell, LLC, a consulting practice dedicated to the improvement and enhancement of franchising.  In 2009, Ben also formed the Social Franchise Institute, a 501(c)(3) dedicated to providing education on franchising to the nonprofit sector where he serves as President and Director.  Previously, Ben devoted 20 years to developing several very successful franchised businesses, including On the Run markets for Exxon Mobil.  As Ben says, “There are only about 100 franchises owned by nonprofits around the country. This agreement will allow PEP to become the industry leader in this area within a few years.”

Auto-Lab, in operation since 1989, is a growing auto repair franchise business with an emphasis on being a complete car care alternative to the dealer. The company’s competitive advantage is its dual focus on delivering exceptional customer service while utilizing state-of-the-art diagnostic and repair technology to meet the evolving needs of modern cars and drivers. The company currently operates or supports about 30 locations in Michigan, Indiana, Iowa and Florida. Each repair comes complete with a 12 month/ 12,000 mile warranty on all parts and labor, which is honored at any location in the country. You can learn more about the company at

Frank Brandenburg, CEO of Auto-Lab, sees the partnership with CAG as a natural fit for his rapidly growing company. As he recently told our team, “There is enormous potential for Auto-Lab in Texas. We are delighted to partner with such an innovative, entrepreneurial group that has such a broad network of supporters and potential customers and that is led by an impressive team of professionals.”

Both parties are very clear on the goals for this venture. While qualified graduates of PEP’s rigorous, values-based entrepreneurship program will be eligible for jobs created by these new stores, the primary purpose of CAG is to operate as a successful business, providing not only quality opportunities for graduates but a significant revenue stream to PEP.

We believe that this development will serve as a game-changer not only for PEP, but for the world of philanthropy. We will demonstrate how nonprofits can partner with successful franchisors to run a successful and scalable business that meets both their charitable mission and their financial goals.

As Dr. Litalien told me: “I applaud the PEP leadership for their vision in developing and implementing a significant social franchise strategy. More importantly, the model that we have crafted could well become a template for how other charitable organizations can align their mission with profitable ventures that enhance their sustainability.”

The initial capitalization of Communitas has been underwritten with a significant equity investment by Mike and Janene Humphrey.  Mike is Chairman of the Governing Board of PEP and a partner in Tanglewood Investments, a 17-year old private equity firm that has developed and sold several significant businesses.  Tanglewood sold its last major holding, Ameriforge Group, in December 2012, after 13 years of development during which it grew from $40 million to $750 million in sales.

One of CAG’s major accomplishments during the acquisition of this franchise was the development of a highly innovative capital structure that provides that the company will buy out the initial investors over time, providing them with a reasonable return while transitioning full equity ownership to PEP (which obtained a significant carried interest in the company at nominal cost).  The terms of Mike and Janene’s investment were considered carefully and unanimously approved by all other members of PEP’s Governing Board.

As Mike shared during a presentation to the Philanthropy Roundtable earlier this year, “Janene and I feel blessed to have the opportunity to further strengthen PEP by helping to build this new business, in effect harnessing capitalism to create jobs, new business opportunities and sustainable financial support for PEP.”

CAG is seeking other experienced, mission-minded investors to co-invest.  We are also actively seeking locations in the Houston area for the launch of the first two stores. Future stores are expected to open in the Dallas market, where PEP operates additional re-entry services.

I welcome the chance to speak with you about this venture, its impact on PEP and/or any questions you have about ways to get involved. Please feel free to contact me at any time, or click here to download our list of FAQ’s.


Bert Smith, CEO