What happens when some nonprofits have more money than the public sector? Well, in Providence, RI the big nonprofits have agreed to increase their PILOT (payment in lieu of taxes) to help keep the city of Providence from going into bankruptcy.
Of course PILOT's are vountary on the part of the nonprofit. Through a PILOT a nonprofit effectively puts a price tag on the value of city services to that nonprofit. Note, the municipality can help "set" the value like it does for for-profits and of course, a nonprofit does pay taxes for property or activities not specific to its mission.
But, is a PILOT really "fair". And what about the direct and indirect benefits these large nonprofits already provide to the municipality? Should these nonprofits really be responsible for a government that has financially failed?
The question has been answered for the moment but....