Nonprofits Increase Contributions to Boston Coffers

The City of Boston received $9.4-million in voluntary payments from nonprofit organizations in the past six months, up 24 percent from the same period a year earlier, according to The Boston Globe.

The increase came after Mayor Thomas Menino’s administration called for tax-exempt groups, which own more than half of the city’s commercial real estate, to pay more in lieu of property taxes to offset the cost of police, fire, and other municipal services.

The city collected 88 percent of what it sought from nonprofit organizations, many of which paid substantially more than they had in past years. Boston officials adopted new guidelines last year asking groups to contribute based on a set proportion of what they would owe if subject to property taxes.

Nonprofit groups had questioned the effort, saying they already made substantial contributions to the city through employment, economic development, and other areas. But Kevin Tabb, president of Boston’s Beth Israel Deaconess Medical Center, said the new payment system is “fair, reliable, and transparent.”