Appeal from the Order of the Commission on Charitable Organizations in case of In Re: Application of Rehabilitation Workshops, Inc., dated March 22, 1978.
Thomas R. Ceraso, for petitioner.
William H. Haubert, II, Deputy Attorney General, for respondent.
Judges Crumlish, Jr., DiSalle and Craig, sitting as a panel of three. Opinion by Judge Crumlish, Jr.
[ 45 Pa. Commw. Page 296]
Rehabilitation Center and Workshop, Inc. (RCW) appeals the denial of its application for renewal of registration by the Commission on Charitable Organizations which determined that RCW was in violation of Section 3(f)(4) of the Solicitation of Charitable Funds Act (Act),*fn1 10 P.S. § 160-3(f)(4), by virtue of its excessive fund-raising costs.
RCW is a non-profit corporation formed for, among other things, the purpose of establishing a program that includes remunerative employment for the physically, mentally, visually and socially handicapped.*fn2 It has facilities in Greensburg and New
[ 45 Pa. Commw. Page 297]
Kensington which implement three basic programs for its "clients," the approximately 250 handicapped individuals (primarily mentally retarded) who are accepted for its services: (1) evaluation, (2) "regular" program for its trainable clients which attempts to bring the client to a level of competitive employment and eventually to refer him to outside employment and (3) the direct mail program which solicits contributions.
At least 75% of the clients' time is spent working in the direct mail program assembling ballpoint pens from components, inserting them and written materials requesting contributions into envelopes, and preparing the envelopes for mailing. The clients working in the mailing program are paid an hourly wage reflecting their productivity, which averaged $.50.
RCW has three sources of income. Its total revenues from July 1, 1975, through June 30, 1976 totaled $1,737,713.55, which included $619,541.01 from governmental grants and $842,167.44 in contributions solicited through the direct mailing program. The remainder of its revenue was derived from sub-contracting work which RCW conducts on its premises for private industry employing its "regular program" clients at an average hourly wage of ...