Earlier this week, the Chicago Sun-Times reported that as part of the continued budget negotiations for the City of Chicago, there is talk of “generating tens of millions of dollars by requiring hospitals and other nonprofits with property tax exemptions to make what are known as ‘payments in lieu of taxes’.”
While nothing else has been shared about exploring a “PILOT” program for Chicago—it’s an unlikely outcome, given that it requires approval at the state level—we oppose implementing PILOT (Payment in Lieu of Taxes) for Chicago’s nonprofit organizations.
Imposing a PILOT program on organizations operating within the City of Chicago would only exacerbate the nonprofit sector’s current challenges, especially in the aftermath of the COVID-19 pandemic and as relief funding is coming to an end.
Chicago’s nonprofit organizations provide indispensable community services, from community health centers to food pantries, theaters, museums, and more. Imposing PILOT payments would be unjust and create additional financial burdens for our city’s nonprofit organizations.
Arts Alliance, Forefront, and the Illinois Association of Museums stand firm in our commitment to advocating for fair and equitable policies that enable nonprofits to thrive and continue their invaluable contributions to Chicago and beyond.
Questions? Reach out to Nora Gregor, Director of Communications, at [email protected].
