December 27, 2010

Nonprofits Angered Over Prospect of Fees

Posted in Philanthropy at 4:18 pm by philanthropynews

In a departure from long-standing practice, some states and local governments with budget shortfalls and a newfound aversion to taxes or debt are looking to nonprofits as a potential source of revenue, the Wall Street Journal reports.

In Houston, where some flood-prone roads are in such disrepair that signs have been erected warning drivers to turn around, taxpayers voted in November to impose “drainage fees” on property owners in order to raise $125 million a year toward the cost of improving roads and storm-water systems. The big news, however, is that traditionally tax exempt churches, schools, and nonprofits have not been exempted from the fee. “Everyone who contributes to drainage issues has to share in the cost of correcting those issues,” said Mayor Annise Parker. Indeed, similar fees have been adopted by other cities, including Richmond, Virginia, Lafayette, Indiana, and Verona, Wisconsin.

(Read more via Philanthropy News Digest.)