Pittsburgh Seeks Changes to Payment Program

In the midst of a financial crisis, some Pittsburgh officials are calling for nonprofit groups to adhere to a formula for making contributions to the city, rather than paying what they wish as part of an agreement that exempts them from taxes, reports the Pittsburgh Post-Gazette.

Controller Tony Pokora argued that nonprofit groups should pay an amount linked to their “profits.”

Mr. Pokora focused his criticism on large institutions, such as the University of Pittsburgh Medical Center. He argued that the institution’s payment of $800,000 to the city is well below the $1.5-million in property taxes it would have been assessed on just one of the buildings it owns.

Even without changes, the city is hoping to receive $5.7-million in payments from nonprofit organizations starting next year.

See also The Chronicle of Philanthropy’s story on nonprofit-owned real estate and property taxes.

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