PILOT Agreements Gain in Popularity, As Non-Profits are Asked to Pay the Piper

The financial crises faced by many municipalities has them searching for ever more creative means to bolster city budgets. As a result, non-profit institutions are increasingly being asked to complete payments in lieu of taxes (PILOT) agreements.

2 minute read

May 23, 2012, 10:00 AM PDT

By Jonathan Nettler @nettsj


As recent debates in Pittsburgh and Providence, R.I. bring PILOT agreements to national attention, Kevin Kiley describes the confluence of factors leading property-tax-exempt nonprofits, "often under duress from local
officials," to agree to such deals with local governments to help municipalities
balance their budgets. The subject was the topic of a daylong series of panels hosted earlier this week by the Urban Institute.

"Over the course of the day, speakers said they believe municipalities,
and potentially regional governments such as counties, will place
increasing pressure on nonprofits to contribute more to local government
budgets. Most of the speakers were supportive of PILOT agreements,
recognizing that the size and role of nonprofits, particularly large
colleges, universities and medical centers, have changed dramatically
since states established the tax exemption. Such organizations also use
up a significant amount of municipal resources, they argue. Colleges and
universities, particularly those that own a significant amount of land
and have considerable financial resources, are likely to be an easy
target for government pressure."

"Daphne Kenyon, an economist at the Lincoln Institute of Land Policy,
said there is growing support for taxing traditionally tax-exempt
institutions, particularly colleges, hospitals and even religious
institutions. Speakers at the Urban Institute meeting said it might be
financially better for nonprofits to strike PILOT agreements now to
mollify critics rather than face the revocation of their tax-exempt
status in a few years."

 

Tuesday, May 22, 2012 in Inside Higher Ed

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 25, 2025 - Diana Ionescu

Map of Western U.S. indicating public lands that would be for sale under a Senate plan in yellow and green.

Map: Where Senate Republicans Want to Sell Your Public Lands

For public land advocates, the Senate Republicans’ proposal to sell millions of acres of public land in the West is “the biggest fight of their careers.”

June 19, 2025 - Outdoor Life

Person wearing mask walking through temporary outdoor dining setup lined with bistro lights at dusk in New York City.

Restaurant Patios Were a Pandemic Win — Why Were They so Hard to Keep?

Social distancing requirements and changes in travel patterns prompted cities to pilot new uses for street and sidewalk space. Then it got complicated.

June 19, 2025 - Diana Ionescu

Close-up of full beer glass with purple train-themed design sitting on bar between two frosty tall cans.

Platform Pilsner: Vancouver Transit Agency Releases... a Beer?

TransLink will receive a portion of every sale of the four-pack.

7 hours ago - Cities Today

Vintage red Toronto streetcar passing in front of Rogers Arena in Toronto, Canada.

Toronto Weighs Cheaper Transit, Parking Hikes for Major Events

Special event rates would take effect during large festivals, sports games and concerts to ‘discourage driving, manage congestion and free up space for transit.”

June 30 - blogTO

Map of Berlin with ring roads in green and red.

Berlin to Consider Car-Free Zone Larger Than Manhattan

The area bound by the 22-mile Ringbahn would still allow 12 uses of a private automobile per year per person, and several other exemptions.

June 30 - Streetsblog USA

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.