I am in constant amazement at the information (or lack of it) that is posted on these forums.

First, not all rhododendrons are native to woodland locations. There are many species rhodies that originate from alpine, rocky and very exposed situations and the only thing they share with their woodland cousins is a preference for acidic soils.

Most of the common hybrids DO owe their parentage to the more woodland species and prefer an organic, well-drained soil and the partial shade common to this type of environment.

The only resentment rhodies have to compost (other than mushroom compost - too alkaline) is that it is typically applied too heavily as a mulch. Rhodies have shallow, dense root systems with a mass of feeder roots located just below the soil surface. Piling on any type of mulch - compost, pine needles, bark, etc., in anything other than a very thin layer to the dripline can easily smother these delicate roots. It certainly doesn't hurt to amend your soil (not just the planting hole) with organic matter like a good, finished compost and I have planted them in pretty nearly straight compost with no ill effects.

As most soils tend not to be as acidic as rhodies prefer (5.5 or lower), they are often not able to access needed nutrients or trace elements without supplemental fertilization. Since finished compost (other than mushroom) is nearly neutral in pH and is very low nutrient-wise, it seldom helps either in terms of maintaining acidity or nutrient supplementation.

If you have concerns regarding chemical fertilizers and your pets and kids (personally, I'd be more concerned about chemical pesticides or the toxic nature of the plants themselves), you can always opt for an organic formulation for acid lovers. Espoma's HollyTone is common in the east and midwest and Whitney Farms and Dr. Earth are similar west coast products and are 100% organic, although I wouldn't recommend eating them :-) Or you can always use an liquid fertilizer like fish emulsion as a soil drench - it is quite acidic.

While I tend not to fertilize much of anything in my garden, being blessed with (and worked hard to achieve) an excellent, nutrient rich organic soil, I do fertilize my rhodies, azaleas and other ericaceous annually with an ACR fertilizer to compensate for less than optimum soil acidity. And Washington State is pretty much the rhododendron capital of the US.