At the time, New York City had somewhere in the area of forty thousand homeless children, and Father Drumgoole approached his Archbishop about creating what we would today call a “virtual parish” for them. He created the Newsboys’ Home for these children. In 1881, with the help of a group of Franciscan nuns, he founded the Mission of the Immaculate Virgin for the Protection of Homeless and Destitute Children, located on the corner of Lafayette and Great Jones Streets. To raise money for this work he founded the St. Joseph’s Union, a support group whose members donated annual dues, and published The Homeless Child Magazine. In 1882 he purchased three farms in Staten Island, which he named Mount Loretto. It became one of the largest orphanages in the United States, staffed by eighty nuns.
Father Drumgoole died during the Blizzard of 1888 visiting the poor. His death certificate listed that he died of pneumonia and exhaustion.