Court Opinion

ID: 9706954
Source: CourtListenerOpinion
Date Created: 2023-08-26 01:56:30.724381+00
Date Added: 2024-06-11T18:22:26.339371
License: Public Domain

Dissenting Opinion by
Mr. Justice Cohen:
The record discloses that the Vanguard School in its Pennsylvania operation collected tuition in the amount of $1,300,000. It granted scholarship aid in the negligible amount of $30,000. The percentage of scholarship aid to fees collected for tuition amounts to 2.2%. I cannot conceive that an institution which made $80,000 profit in 1967, after charging $50,000 as an expense for depreciation and only expended $30,000 in scholarship aid, can be held to be a charity entitled to tax relief.
While it is true that a purely public charity does not cease to be such where it receives some payment for its services, in my opinion, however, it does cease to *385be a charity entitled to tax relief when it receives 98% payment for services rendered. The cash flow ($80,000 profit and $50,000 depreciation) is $130,000 and represents a 10% net profit on the tuition collected, even after the payment of salaries to former private owners of the school.
Mr. Justice Eagen joins in this dissenting opinion.