Boston nonprofits asked to pay more for municipal services
April 07, 2010
A mayoral task force in Boston has announced the city will seek more money from tax-exempt nonprofits to pay for municipal services, like public works and police.
Typically, nonprofits in Boston are asked to provide cash or products to the city on an individual basis in lieu of paying taxes. The payment system had been criticized as ill-defined.
Now the city government is planning to have nonprofits contribute 25 percent of what they would owe in taxes if they were not exempt from them.
John Erwin, executive director of the Conference for Boston Teaching Hospitals, says he understands the need for increased funding from nonprofits, but the payments will be difficult for the organizations.
"We want to do everything we can to make sure that the city is on sound financial footing and not laying off police and firefighters," says Erwins. "We realize the predicament the city is in, but we are also in a similar predicament."
The move comes at a time when nonprofit fundraising efforts are pulling in less money because of the economic recession. Organizations that face increased pressure because of similar municipality payments may find some relief in nonprofit financial management
services, experts say.