Paying for Planning

This report provides an understanding and guidelines to PILOT programs and how they can fit into a municipal budget where both parties benefit. There is a benefit-cost mismatch often observed with property tax exemption for charitable nonprofits; PILOTs serve as a voluntary one-time or continual payments through a negotiated contract method of partially offsetting the lost tax revenue and covering some of the cost of public services to the 501(c)(3). This report guides how to establish a PILOT program in a municipality and imparts the challenges and benefits of PILOTs.