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U.S. cities' revenue boost from nonprofits meager-report

Reuters
September 29, 2012 09:00
(Reuters) - Hopes that large payments by nonprofits could fatten lean local budgets, such as that announced by Brown University, do not fully achieve the desired results, according to a report on Friday. As struggling cities seek new sources of revenues, voluntary payments by private colleges, hospitals and others to their hometowns make up only 0.13 percent of general revenue, the Lincoln Institute of Land Policy said in the report. The local governments are putting pressure on the big nonprofits within their borders to help defray costs for providing police, fire and sanitation services. The payments, which nonprofits sometimes agree to pay because they are exempt from property taxes "will never be a panacea for cash-strapped governments," the institute said. "They simply do not generate enough revenue." Even so, the payments can provide useful funding to towns and can benefit the nonprofits by strengthening relationships with their hometowns, the researchers said.

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Posted in: Lincoln Institute in the News

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