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May 14, 2009

State And Local Governments Consider Fees on Nonprofit Groups

With state and local governments strapped for cash, they are increasingly looking for new sources of revenue — including imposing fees on nonprofit groups.

According to Governing magazine, states and localities are receiving money from the economic-stimulus package, but it’s not enough to cover budget gaps. To find revenue, some municipalities have placed fees on tax-exempt groups to pay for city or county services.

Nonprofit organizations “don’t have to pay property or sales taxes, but they are liable for fees,” the magazine says. “One Minnesota city is charging a curb fee based on property frontage as a way of generating revenue for street upkeep — and as a way to get 501c3s to chip in for the local services they receive.”

Even before the recent downturn took hold, governments considered such fees to make up for losses in property taxes.

According to a 2006 study by The Chronicle, property-tax exemptions granted to nonprofit groups in 23 of the nation’s 30 most-populous cities cost those municipalities more than $1.5-billion annually.

— Ian Wilhelm

Thursday May 14, 2009 | Permalink

Comments

1. Non-profits should make reasonable payments to their home communities as partial reimbursement for use of municipal services.
   It’s the responsible thing to do, however unpopular it has been and will be in the nonprofit board room.
   Consider it a means of sowing the philanthropic cloud, proof of good citizenship.

   — Ron Wormser    May 17, 01:38 AM    #

2. This is redicilous.

   — Chanel Waters    May 18, 12:21 PM    #

3. I would like to have my share as soon as possible thank you

   — Rico Cesar    May 21, 01:58 PM    #

Commenting is closed for this article.

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