Princeton Sets Bar for PILT - May Foreshadow Future

This item from Inside Higher Ed on October 21, 2016, may foreshadow the future for nonprofit institutions in the United States. While technically only setting precedent for the Princeton municipality, and perhaps for New Jersey, the willingness of the university to commit to a substantial (multiple millions of dollars) payment signals its interest in (1) saving on the cost--reputational and financial--of eventual litigation, and (2) the strength of its case, official statements notwithstanding.As tax dollars become ever more coveted by all jurisdictions, and independent schools, following in the footsteps of universities, seek greater non-tuition revenue from all sorts of ventures, taxing nonprofits may become a serious threat. Savvy boards will include this in a SWOT analysis, and savvy heads will cultivate relationships with the local authorities before the issue arises. Strategic topic for a future board retreat: what is the public benefit from our existence for this city, county and state? Knowing and being able to demonstrate the answer helps when the tax people come calling.