There are many intangible benefits to be had from the existence of nonprofit institutions like Peabody Essex Museum and Endicott College in our midst.
Indeed, the recent growth of both — the former in downtown Salem and the later along Beverly's Gold Coast — represent remarkable success stories that have added immeasurably to the quality of life in their respective communities, as well as on the North Shore.
Given that these are not profit-making enterprises, and in recognition of their educational and cultural contributions, government has long granted such institutions exemption from the taxes levied on other property owners. Despite the wisdom of this policy, however, the growing gap between government expenditures and resources has caused some to glance longingly at the revenue potential these nonprofit organizations represent.
Trying to reverse centuries of tradition and precedent would likely prove fruitless, not to mention be unwise. Their tax-exempt status, as well as the ability of donors to deduct the value of their contributions from their income taxes, has helped fuel the expansion of facilities and programming. The benefits, to name just a couple, include a new outdoor athletic complex at Endicott used by many area high schools, and a recent series of blockbuster art exhibits at PEM that have drawn visitors from far and wide to Salem.
Still, it's to the credit of both institutions that they have seen fit to increase their monetary contributions to their respective host communities.
In the case of Endicott, it was an agreement announced last month to increase its payments in lieu of taxes to $166,667 annually (up from $110,000 a year) for the next three years. The increase represents the estimated property tax value of two former estates the college has acquired since 2008 that are now used for student housing.
Meanwhile, PEM has agreed to continue paying taxes on the full value of three commercial and residential properties it recently acquired in the central business district. As with its gift shop and restaurant, the museum would have been obligated to pay taxes on any portions of those buildings from which it derived revenue; but the agreement negotiated with the Driscoll administration makes even those portions of the properties that might be used for museum purposes subject to taxation, and includes an escalator clause guaranteeing future increases.
Beyond their important missions, both the museum and the college are major employers whose payrolls and purchases have a significant economic impact not only locally, but throughout the region. Both are to be commended for going above and beyond what is legally obligated in terms of monetary contributions to provide, in the words of Endicott President Richard Wylie, "an example of what is right."
Ravi Spared Prison in Rutgers Webcam Case
Arnold on Relationship with Maria After Scandal
'GMA' Play of the Day: Aussie Player's Big Jump
Miley's Racy Award Show Outfit
Ring of Fire Eclipse Seen in U.S., Asia
Reaction: Kara's Exit
ET's Last Interview with Robin Gibb
Trending: Rihanna dating a Knick?
Pippa Middleton's Red Hot Look
Oprah's Advice Before Ga. College Graduation
Spurs sweep Clippers
Magnitude 6.0 Earthquake Slams Italy
Wiig's Emotional SNL Sendoff
Adele, Bieber, Perry win big at 2012 Billboard Awards
Bloodied anti-NATO protester
Bee Gees Singer Robin Gibb Dies
Facebook Founder Ties the Knot
Heat even up series with Pacers
The Dictator Overthrows Elisabetta
Anarchists Arrested at NATO Summit in Chicago
