PILOTs (also known as payments in lieu of taxes), fees and other efforts to generate revenue from nonprofits are being explored by cash-strapped cities in fiscal crisis across the nation. While these may seem like issues facing only big cities like Boston, New Orleans and Chicago most recently, these are threats to the sector that if successful would most certainly work their way to all communities.
David Thompson, vice president for public policy with our partner, the National Council of Nonprofits said it well in an article in yesterday’s New York Times: “Very simply, the social compact between nonprofits and governments exists to serve the public good,” Mr. Thompson said. “Changing the rules undermines the work of the institutions, takes money out the community and out of the services provided to constituents.”
At a time when nonprofits are facing their own financial issues and increases in the demand for services, our sector must be focal in letting government know how such policies and experiments will affect our communities and those we serve.
Has your local or county government mentioned any such fees or voluntary payments? How would these proposals impact your nonprofit?Danielle Clore Director