Providence’s Community Benefit Reporting Requirement for Private Colleges and Universities

The Providence Rink

Yesterday, we told you about Providence’s relatively successful effort to persuade private universities within its tax jurisdictions to make payments in lieu of taxes (PILOTs) to the City.  We contrasted the nearly $7 – 11 million annual PILOTs Providence receives with the less than $500,000 payments Pittsburgh receives.   Providence has been collecting PILOTs since as early as 2003, if not before. The PILOT agreements are merely aspirational, meaning that they are nonbinding MOUs, except that the City promises not to challenge property tax exemption as long as the payments are made.  One interesting point about the MOU between the City and the Universities is the expectation that universities will provide community benefit reports annually.  Sort of like the Community Needs Health Assessment required for nonprofit hospitals under IRC 501(r) which are required every 3 years.  Here is page 4 of the MOU:

Its not like the amorphous community benefit standard, though it does allow the universities themselves to define and then value their community contributions.  I guess that is amorphous come to think of it.  Still, sometimes a requirement just to be intentional about a thing is better than nothing.  Note that the community benefits must be specific to Providence.  Community contributions to the whole world don’t count.  We should admit that the community benefit of colleges and universities is so apparent and incalculable that this seems kinda make work-ish.  But I suppose it helps make a record in case of future challenge and it sure beats demonizing the eds and meds.  Anyway, here is page 10 showing the exact amount of community contributions expected.  You can see the exact PILOT amounts for the same 20 year period below the fold.

darryll k. jones