Northeastern may be a tax exempt institution, but a political endeavor by Mayor Thomas M. Menino may drive the school to contribute more financially after years of donating substantially smaller amounts than other local universities and colleges.
Menino announced an initiative last month aimed at getting tax exempt, nonprofit institutions in Boston to voluntarily donate more money during tough economic times – a plan that will affect the city’s many universities, including Northeastern, which, according to local media reports, donates $30,600 a year to the city of Boston. By comparison, Boston University pays $4.6 million yearly – the most of any nonprofit in the city – and Harvard donates $1.9 million, according to the reports.
Currently, these tax exempt institutions – which also include some of Boston’s medical centers – donate to the city in lieu of property taxes, voluntarily. A press release from the Mayor’s Office indicated the mayor would focus on equalizing the disparate donations of the hospitals and universities in the city.
“Partnerships with hospitals, universities and other nonprofit institutions are mutually beneficial, but under the current structure, there are significant disparities in what various institutions contribute to the city,” the release said. “Mayor Menino called on the need to create an equitable PILOT (Payments in Lieu of Taxes) system so that these relationships are fairer and generate more value, both in payments and in programs.”
Already, according to the reports, Northeastern – along with Boston College – is restructuring its payment agreement with the city as part of expansion plans. The city holds authority over zoning and permitting, which are necessary for institutional redevelopment as well as expansion, and in the past has used such authority as leverage in working out payment agreement plans.
“Northeastern looks forward to working with the mayor and building on our track record of urban engagement to strengthen Boston’s position as a world class city rooted in communities, education and research,” Mike Armini, Vice President for Marketing and Communications, said in a statement to The News. “As the mayor noted in his remarks last month, it is in times of crisis that we need to join forces and develop creative new solutions.”
While Northeastern donates less than other institutions within the city, Armini said it does contribute to the community in a number of non-monetary ways, including programs which give financial aid to Boston students; Open Classroom, a program where anyone in Boston can come and listen to lectures by prominent Northeastern faculty; and annual turkey giveaways to residents in the surrounding community. Armini said the school also runs a program called Step Up, in which Northeastern and other Boston universities work with several Boston elementary schools on curriculum development, teacher training and other initiatives to improve the quality of early education.
