Rochester Rehabilitation Center: A nonprofit contemplates the purchase of a greeting card company

Abstract

In 2001, George Gieselman, president of the Rochester Rehabilitation Center, was considering a unique proposition for his nonprofit organization. A Rochester-based greeting card company, Parrett Paper, had fallen on hard times and was looking for a buyer. The Center already operated a division, The Out-Source, which provided direct employment for the disabled individuals who were the clients of the Center. If The Out-Source purchased the card company, the business could potentially generate additional jobs for the disabled as well as provide a source of income. However, the greeting card business seemed to be unlike the other contract work provided by The Out-Source division and therefore might strain the managerial resources of the organization.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

Resources

Exhibit 1: Rochester Rehabilitation Center Revenues and Expenses, 2001

Revenues

County and State Office of Mental Health Grants and Contracts

$978,689

Other New York State Grants and Contracts

1,286,208

United Way

310,810

Foundation Grants

275,441

Contributions and Bequests

517,645

Fees for Service

4,603,285

Out-Source Sales

2,310,754

Out-Source Federal Contracts

587,451

Investment Earnings (loss)

(121,708)

Interest Income

20,602

Other Income

60,252

Total

$11,165,787

Expenses

Vocational Rehabilitation

$4,912,162

Psychiatric Rehabilitation

2,652,979

Physical Rehabilitation

1,681,727

Supporting Services

1,971,914

Total

$11,218,782

Source: Rochester Rehabilitation Center Annual Report, 2001

Exhibit 2: Clients Served by Program

Mental Health

Clinic

615

MEN'S Group

552

Case Management

207

Partial Hospitalization

98

Ventures

167

Continuing Day Treatment

222

Driving Programs

Driver Evaluation & Training

676

Arrive Alive

544

Wheels to Work

66

SportsNet

188

Employment Connection

836

IT2

76

The Out-Source

202

Outpatient

1,080

Total

5,529

Source: Rochester Rehabilitation Center Annual Report, 2001

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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