We are two school district educators who would like to encourage the Board of Trustees of the University of Pennsylvania to consider payments in lieu of taxes (PILOTs), a common practice among private institutions around the country.

When I hear arguments that Penn should not pay PILOTs because the District is a broken system, I believe that is like starving children and then blaming them for being frail. But, in this case, the analogy is not even hyperbolic. Students in the District, such as those on The Bullhorn panel, shared stories of both inadequate meals at school and the academic undernourishment that comes with slashing enrichment programs.

Penn and other big tax-exempt nonprofits do not have unlimited funds especially amid the COVID-19 crisis; endowments carry restrictions and stewardship requirements. But asking them to directly invest in public education in their hometown is a reasonable request deserving more than stony silence. A lively conversation about PILOTs for nonprofits is already underway. It’s time for Penn and other big players to be part of it.

“It’s difficult to say if the refusal to pay PILOTS is a result of greed, willful ignorance, financial prudence, or something else. But our recent history of standing back and letting highbrow volunteerism be enough has not paid high enough dividends. David Cohen, it is time to change.”

When called upon to pay PILOTs, Penn highlights the vast reach of our civic engagement programs. During my freshman year, I worked in West Philadelphia High School as a science teacher through the Netter Center, and while volunteer efforts are indisputably beneficial, fundamental issues with the education system urgently need to be addressed. An asbestos-laden school without toilet paper, soap, and hot water does not need weekly university volunteers. They need fiscal support. Community service should not be leveraged to discredit the urgent need for PILOTs.

The time has always been right for Penn to join the other universities that have agreed to enter into PILOT arrangements. But the time has never been more crucially right, in the wake of the pandemic, the resulting economic impact, and the growing nationwide awareness of the racism that has for centuries so profoundly disfigured our civic life, and continues to do so today.

I join with my colleagues in urging Penn’s administration and trustees to move expeditiously toward the implementation of the necessary PILOT agreements. The University’s participation in this program will confirm our dedication to Philadelphia and its citizens, and especially to the city’s young people.

The city of Philadelphia is deprived. The School District of Philadelphia is drowningand the gap between rich and poor keeps deepening. With today’s schools being more segregated than they were 40 years ago, Penn’s failure to pay PILOTs directly and disproportionately affects Black and Brown people. This is a systemic problem that needs to be addressed. We must stop betting against Philadelphians and begin facilitating innovative ways to alleviate systemic inequality. 

We are faculty and staff at the University of Pennsylvania who believe that Penn has a responsibility to ensure adequate funding for the Philadelphia public schools. Penn is the largest property owner in the city of Philadelphia, but as a non-profit institution, it pays no property taxes on its non-commercial properties. In other words, it contributes nothing to the tax base that funds Philadelphia’s public school system — all of this in a city whose schools are underfunded and facing deep budget cuts amid the COVID-19 pandemic.

Penn has a $14.7 billion endowment and a $3.5 billion operating budget and owns $3.2 billion of tax-exempt property in Philadelphia. PILOT would be a drop in the bucket of Penn’s vast wealth. While money doesn’t solve all problems, it is past time for Penn to stop benefiting from systems that advantage primarily white institutions and make reparations for the damage the university has caused. By voluntarily making these changes, the university has the opportunity to exhibit leadership and courage and set an example for the city’s other large nonprofits to contribute their fair share to the community.