Under a different name, governments tax nonprofits

From the National Council of Nonprofits

One of the defining characteristics of your nonprofit is exemption from certain taxes. For charitable nonprofits in particular, tax exemption is critical to their ability to sustain operations and focus on serving the community.

Unfortunately, in a move designed to generate new revenues amidst the persistent recession, state and local governments across the country are attempting to impose new fees on nonprofits that stretch the notion of “tax exemption.”

When is a fee a tax? For example, the City Council in New Rochelle, New York approved a plan to ask nonprofit organizations to help support local government by paying payments in lieu of taxes amounting to 10 percent of their property tax value.

In Boston, nonprofits have been battling plans to impose PILOTs for two years and proven that collective and persistent action by nonprofits can turn back these plans. As a result of efforts by Providers’ Council in Massachusetts, the Mayor of Newton, recently agreed to exempt nonprofit residential centers from the city’s trash removal fees. The exemption treats residents of nonprofit group homes like other city residents.

The National Council of Nonprofits, whose members include all Nonprofit Members of the Hawaii Alliance of Nonprofit Organizations, tracks these state and local issues that affect your organization. You can stay up to speed on these issues by signing up for the National Council’s advocacy e-newsletter, Nonprofit Advocacy Matters.