Last year, the City of Pittsburgh took action that could change the financial landscape for some nonprofits within its borders. Today, the Board of Property Assessments and Appeals Review gears up to hear the challenges issued by the city against several nonprofits' tax-exempt status. According to an announcement from the City of Pittsburgh, these proceedings originate from the standards set by the Pennsylvania Supreme Court in the HUP case.
The criteria for maintaining tax exemption are stiff, and they serve a multi-pronged purpose: to advance charitable goals, gift a substantial portion of services, benefit a substantial class of those in need, lift some weight off governmental shoulders, and operate without a private profit motive. Using their properties inconsistently with these charitable purposes, some nonprofits may have to open up their checkbooks. In getting underway, the cases, filed back in March last year, seem ready to put these organizations through their paces.
Mayor Ed Gainey has been vocal about the city's importance of a just tax base. Nonprofits, which traditionally benefit from tax-exempt status, reap the benefits of city-provided services, such as "Police, Fire and EMS teams," among other amenities. "It’s only fair that they pay their share and not leave the burden on responsible tax paying residents," Mayor Gainey emphasized, as the city's official communications reported. "They should do their part in keeping our city a place where everyone has the ability to feel safe, thrive and feel welcomed."
The city is starting to review how nonprofits operate. This is important for Pittsburgh’s budget and might change how nonprofits work in the city. The city wants all nonprofits to help support city services like waste management and road paving, just as they benefit from these services.
