Philadelphia Officials Look to Nonprofit Organizations to Help Close the Budget Gap

Tough times have forced many local city officials to consider alternative and new plans for increasing revenue.  Unfortunately, they're looking to nonprofit organizations to potentially pay the price.

A proposed expansion of the business privilege tax (BPT) would charge nonprofits taxes for facility rental and other sales. The proposal was introduced by the city's Revenue Department and a public hearing was held in February.  Many business and nonprofit leaders, including Cultural Alliance President Peggy Amsterdam, agreed the proposal could prove devastating for organizations.  It is currently under review by the Revenue Department. 

A bill to rescind the city's 25% water and sewer rate discount for nonprofit organizations was introduced by Councilman DiCicco and a public hearing was held in February. An attempt to vote the bill out of committee immediately following the hearing failed. 

Last month, Councilman Clarke introduced a bill that would expand the city’s Amusement Tax – a 5% tax on admissions – to include nonprofit performing arts organizations. The bill was referred to the Committee of the Whole, and a hearing originally scheduled for early May was cancelled. 

The Cultural Alliance opposed all three proposals, testifying at hearings and working closely with other arts organizations and City Council members.