logo logo
giving banner
Donate
    • Membership
    • Donate
  • Social Justice
    • Racial Justice
    • Climate Justice
    • Disability Justice
    • Economic Justice
    • Food Justice
    • Health Justice
    • Immigration
    • LGBTQ+
  • Civic News
  • Nonprofit Leadership
    • Board Governance
    • Equity-Centered Management
    • Finances
    • Fundraising
    • Human Resources
    • Organizational Culture
    • Philanthropy
    • Power Dynamics
    • Strategic Planning
    • Technology
  • Columns
    • Ask Rhea!
    • Ask a Nonprofit Expert
    • Economy Remix
    • Gathering in Support of Democracy
    • Humans of Nonprofits
    • The Impact Algorithm
    • Living the Question
    • Nonprofit Hiring Trends & Tactics
    • Notes from the Frontlines
    • Parables of Earth
    • Re-imagining Philanthropy
    • State of the Movements
    • We Stood Up
    • The Unexpected Value of Volunteers
  • CONTENT TYPES
  • Leading Edge Membership
  • Newsletters
  • Webinars

Nonprofit Newswire | Boston Asks Nonprofits To Share Budget Pain

Bruce S Trachtenberg
April 7, 2010

April 6, 2010; Boston Globe | It’s beginning to look like tax-exempt status doesn’t quite mean that for many nonprofits anymore. Add Boston to the growing list of recession-battered cities and states that are seeking to boost revenues from new or increased levies on exempt organizations. But what makes Boston’s situation different is that nonprofits already make annual, but voluntary, contributions to the city.

The negotiated amounts include both cash and services, but still equal to a small fraction of what they’d pay if they weren’t exempt from property taxes—from one to 8 percent, for example. Now, according to the Boston Globe, a task force is readying recommendations that would eventually seek up to the equivalent of 25 percent in contributions from tax-exempt entities.

The new rules wouldn’t mandate payments; they’d still be voluntary. But, according to the paper, a “revised formula would make it easier to compare similar institutions and increase pressure on those paying proportionally less.”

Under the current system, the amount negotiated varies widely from one group to the other, and has led to criticism. For example, last year Berklee College of Music made $361,000 in payments, or more than 8 percent of what it would have paid in property taxes. In contrast, Wentworth Institute of Technology only paid $40,000, or less than 1 percent of what would have been a $5.6 million property tax bill.

Sign up for our free newsletters

Subscribe to NPQ's newsletters to have our top stories delivered directly to your inbox.

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

“There was a perception of unfairness for institutions because nobody was exactly sure what the agreements for their peers included,’’ said Stephen W. Kidder, the task force chairman. “One of the principal goals of the task force was to . . . put it in a framework so the rules would be the same for everyone.’’

While the recommendations seek to bring fairness to the system, hospitals and universities, among those that would be affected, say they’d be forced to layoff workers, and raise tuition for students and charge more for medical services if the rules change. So far there’s been no talk of including religious institutions in a new plan.

Still Boston, like other municipalities, is being hurt by the recession and is looking at how to afford basic services without asking taxpayers to share the pain alone. While acknowledging “the predicament the city is in,” John Erwin, executive director of the Conference for Boston Teaching Hospitals, adds “we are also in a similar predicament.’’ The 158 reader comments (last we counted) are all over the board and worth scanning in and of themselves.—Bruce Trachtenberg

Our Voices Are Our Power.

Journalism, nonprofits, and multiracial democracy are under attack. At NPQ, we fight back by sharing stories and essential insights from nonprofit leaders and workers—and we pay every contributor.

Can you help us protect nonprofit voices?

Your support keeps truth alive when it matters most.
Every single dollar makes a difference.

Donate now
logo logo logo logo logo
See comments

Call to action
You might also like
On the Oracle Alice Wong, Disability, and Community
Alison Stine
Staff Picks for 2025: Isaiah Thompson
Isaiah Thompson
The Deadly Combination of Pregnancy and Rural Living in the United States
Janelle Carlson
How Climate Instability and Extreme Heat Could Upend High School Sports
Roxanne L. Scott
Staff Picks for 2025: Steve Dubb
Steve Dubb
Staff Picks for 2025: Alison Stine
Alison Stine

Upcoming Webinars

Group Created with Sketch.
January 29th, 2:00 pm ET

Participatory Decision-making

When & How to Apply Inclusive Decision-making Methods

Register
Group Created with Sketch.
February 26th, 2:00 pm ET

Understanding Reduction in Force (RIF) Law

Clear Guidance for Values-centered Nonprofits

Register

    
You might also like
A red circle overlayed on a yellow background with three multi-colored dots on each side. In the center it reads, " Isaiah Thompson: Staff Picks for 2025"
Staff Picks for 2025: Isaiah Thompson
Isaiah Thompson
Staff Picks for 2025: Steve Dubb
Steve Dubb
A red circle overlayed on a yellow background with three multi-colored dots on each side. In the center it reads, "Alison Stine: Staff Picks for 2025"
Staff Picks for 2025: Alison Stine
Alison Stine

Like what you see?

Subscribe to the NPQ newsletter to have our top stories delivered directly to your inbox.

See our newsletters

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

  • About
  • Advertise
  • Careers
  • Contact
  • Copyright
  • Donate
  • Editorial Policy
  • Funders
  • Submissions

We are using cookies to give you the best experience on our website.

 

Nonprofit Quarterly | Civic News. Empowering Nonprofits. Advancing Justice.
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.