Wage Increase Deceptive, Say Feds

Another Snow, Another Day Off In W-b Area

By JENNIFER LEARN; Times Leader Hazleton Bureau
 Sunday, January 16, 1994 &nbsp;&nbsp;&nbsp;&nbsp;Page: 





BUTLER TWP. -- Drums builder George Derr is pursuing his plan to raffle a
new home for charity despite a ruling from the Attorney General's Office that
his original raffle proposal is illegal. &nbsp;&nbsp;&nbsp; 
 Last June, Derr, who owns Hawk Construction Co., launched a "Win a House
for $100" plan to build a $190,000 home, sell raffle tickets and use the
raffle revenue for his charity, Power in One Foundation. &nbsp;&nbsp;&nbsp; Two months later, Mike Moyle for the state Attorney General's Bureau of
Charitable Trusts and Organizations told Derr that raffles based on chance --
ones that don't involve a skill -- are illegal in Pennsylvania. &nbsp;&nbsp;&nbsp; 
 Derr, 30, has removed the raffle sign from in front of the Drums house and
is no longer distributing fliers in lower Luzerne County communities. The
unfinished four-bedroom house is for sale and Derr has refunded $5,000
collected from ticket sales. &nbsp;&nbsp;&nbsp; 
 He and attorney Daniel Miscavige -- who is also a Power In One trustee and
adviser -- are waiting for a meeting with the Attorney General's office to
discuss legal raffles, including contests or games of skill. &nbsp;&nbsp;&nbsp; 
 Derr has said money raised would go for housing, food programs,
scholarships and medical programs. He has not specified any organizations that
would benefit, and local charities, including the United Way, have said they
would not accept Power In One money until the legal questions have been
settled. &nbsp;&nbsp;&nbsp; 
 Derr argues the state policy on games of chance is unfair because it
prohibits raffling a home but allows individuals or groups to give away homes
by holding contests, such as the best essay or photograph contest. &nbsp;&nbsp;&nbsp; 
 "Which sounds more fair, a raffle or an essay contest? I'd choose the
raffle if it was my money," Derr said. &nbsp;&nbsp;&nbsp; 
 Derr also questions why churches -- but not his non-profit Power In One
Foundation -- may hold raffles that do not involve skill. &nbsp;&nbsp;&nbsp; 
 "It's not fair. Churches can hold raffles. St. John Bosco Church down the
road is raffling a BMW for $100 to raise money for their mortgage. My cause is
as important as their mortgage," Derr said. &nbsp;&nbsp;&nbsp; 
 Church and church organizations are exempt from the Charity Act, said
bureau spokesman Moyle. Power in One has no religious affiliation. &nbsp;&nbsp;&nbsp; 
 Derr originally planned to raise $300,000 by selling 3,000 tickets at $100
each to win the house or a 1993 Ford Explorer, computer and entertainment
center, with the winners chosen in a lucky draw. &nbsp;&nbsp;&nbsp; 
 After paying himself $190,000 for the house, $22,000 for the other prizes
and $1,500 for marketing, Derr expected to end up with $86,500 for the
charity's causes. He planned to hold several raffles a year. &nbsp;&nbsp;&nbsp; 
 So far, Derr lost about $2,000 in application and legal fees related to the
first raffle. &nbsp;&nbsp;&nbsp; 
 Derr figures any money his charity raises would be distributed to a variety
of area charities: housing, 64.8 percent; soup kitchens, 20.4 percent;
scholarships, 3.4 percent; clothing, 5.1 percent; children's toys, 3.4
percent; children's hospitals, 1.7 percent; local medical emergencies 1.2
percent. &nbsp;&nbsp;&nbsp; 
 Derr acknowledges he would benefit personally. The $190,000 home price
includes a profit of 4 percent or $176,000 for his company. &nbsp;&nbsp;&nbsp; 
 "Times are tough. I'm not building any houses," said Derr, who has worked
in the Poconos, Hazleton and Conyngham areas for eight years now. Most
recently he built three of the five homes in the Countryside Development in
Drums. &nbsp;&nbsp;&nbsp; 
 So far, Power in One's handful of volunteers have only distributed donated
clothes to the needy, Derr said. He hopes to attract more volunteers and raise
more money to give to local charities. &nbsp;&nbsp;&nbsp; 
 He said he could eventually give people jobs by hiring them to help
construct homes. &nbsp;&nbsp;&nbsp; 
 Power In One is exempt from state financial disclosure regulations covering
non-profit organizations because it has not raised a minimum $25,000. &nbsp;&nbsp;&nbsp; 
 "We're still here. We didn't disappear anywhere. But we need money to
accomplish these goals," Derr said.

Ag's Office Says Charity Can't Begin At Home Contractor George Derr Does Not Want To Give Up His Plan To Sell Houses And Help The Needy