New Brunswick — Thomas V. Karaban, director of the Rainbow Foundation, was presented with the Madeline Worthy Williams Youth Advocacy Award last night at the annual Governor's Awards Ceremony.

The award is presented each year by the Governor's Awards Academy to an individual who bas promoted the welfare of New Jersey youth and families. The award, a symbol of great achievement and distinguished service, is the highest honor New Jersey can bestow on an individual.

Vera King Farris, president of Richard Stockton College, Galloway Township; called Karaban "a model of excellence, not only for the children but : for all of us" in presenting the honor.

Karaban, 50, Atlantic Highlands, left his job on Wall Street in 1984 and, with his wife, Peggy, founded the Rainbow Foundation for children. In its first year, the agency had a budget of $10,500 and helped 15 children. Today, it serves 700 children annually and has a budget of $500,000.

The foundation, headquartered at .15 Cherry Tree Farm Road, Middletown Township, provides assistance to children with illnesses such as cancer, cystic fibrosis and muscular dystrophy.

In 1992, Karaban opened Noah's Ark, a small home to provide temporary housing for abused and neglected children under the age of 7. He said his ultimate dream is to open a large camp facility to serve as a respite center for seriously ill children and their parents.

Other winners were:

• Bill J. Balough, Plainsboro Township; Amos Alonzo Stagg Athletics Award for teaching gymnastics to a team of boys with Down Syndrome.
• James Langhorne Breen, Maplewood; Clara Barton Medical Service Award for pioneeering surgical treatments for malignant diseases affticting women.
• Lou Malfitano. Nutley; John Basilone Heroism Award for pulling three men from a burning car on the Garden State Parkway.
• Arnold J. Levine, Princeton; Thomas Alva Edison Science Award for contributions to cancer research.
• Beatrice Ueben, Fort Lee; Albert Einstein Education Award for her work teaching chIldren with leaming disabilities.
• Ellis Vieser, Middletown Township; Alexander Hamilton Economic Development Award for promoting economic development in the state.
• Arthur E. Imperatore, Weehawken; Charfes A. Undbergh Transportation Award for reviving ferry service between New York and New Jersey.
• Vincent J. Giblin, Livingston Township; Peter J. McGuire Labor Excellence Award for his work with New Jersey trade unions.
• Carla L Lerman, Teaneck Township; Alice Paul Humanitarian Award for working to provide housing for low-income New Jerseyans.
• Joyce Carol Oates. Princeton; Walt Whitman Creative Arts Award for her prolific literary career in poetry and prose.
• Marilyn J. Morheuser. Newark; Woodrow Wilson Public Service Award for filing the landmark lawsuit that changed the way the state funds public education.
• Richard J. Sullivan. Pennington; Hovhaness Heukelekian Environmental Award for environmental service to the state.

Home News staff writer Jane Huth contributed to this story.