Boston hospitals, universities, and other nonprofit groups would get the equivalent of a tax break for hiring out-of-work city residents under a jobs plan unveiled Monday by Mayor Thomas M. Menino, The Boston Globe writes.
Charities would receive credits of $1,000 to $1,500 per hire on the payments they are asked to make annually to help subsidize city services. The payments charities make are intended to make up for some of the money the city loses by giving the organizations tax exemptions.
Boston collected some $31-million in voluntary payments in 2010 but has asked nonprofit institutions to chip in more.
“The mayor knows that the largest employers in our city are hospitals and universities. Giving them an incentive makes sense in this difficult economy,’’ said Dot Joyce, a spokeswoman for the mayor.
Alan Clayton-Matthews, an economist at Northeastern University, said it was uncertain whether the credit was big enough to do much to lower the jobless rate, but it “provides some potential for publicity for the nonprofit and the city. And maybe that publicity is worth more than $1,000.’’
More from The Chronicle: A national coalition of nonprofits is urging President Obama to consider ways to help charities create jobs.