The $100 million that Penn has pledged to the public school systems is but a fraction of the amount that the University would pay if they committed to pay PILOTS, which itself are a fraction of the amount that they would owe if their property were fully taxed under Philadelphia law.

Members of Penn for PILOTS still argue that local wealthy property owners, like Penn, should be pressed to ensure the city’s schools are fully funded through recurring PILOTS.

The group remains resolved that Penn must make annual payments in lieu of taxes (PILOTs) to the public schools — 40% of what it would owe in property taxes, paid into an Educational Equity Fund governed by the School District and City of Philadelphia.

Following years of backlash for its refusal to make Payment in Lieu of Taxes, Penn has decided to contribute $100 million to the School District of Philadelphia. Yet, students and professors say the contribution is not a PILOT, criticizing its short-term commitment as well as Penn's framing of it as a gift rather than a debt owed to the city.

Students have for years called on the wealthy private university to make payments in lieu of taxes, called PILOTs, to the city. Recently, faculty and staff members joined them. The $10 million per year outlined in Tuesday’s pledge is lower than the estimated $40 million per year that PILOT advocates requested, and significantly lower than what the university would owe the city if it were subject to property taxes.

Penn will contribute $100 million to the School District of Philadelphia over the next 10 years, the largest private contribution in the school district's history. … The announcement comes as the University faces widespread criticism from both students and faculty for its refusal to make Payments in Lieu of Taxes, known as PILOTs, to the city of Philadelphia. As a nonprofit institution, Penn is exempt from paying property taxes to the city. But universities often voluntarily pay PILOTs to support public services, like school systems.

“The chronic underfunding of the Philadelphia Public Schools cannot be resolved with a limited commitment of 10 annual payments,” the group, Penn For PILOTS, said in a statement.

Faced with a multi-stakeholder force that has been advocating strongly for the University of Pennsylvania to make regular payments in lieu of taxes (PILOTS) to Philadelphia public schools, Penn has made a concession worth about a quarter of what had been asked for in dollars, and even less than that in terms of a permanent commitment.

“This victory is a testament to the strength of the movement by public school teachers, parents, and students for equitable funding for their schools,” said executive director of Philadelphia Jobs With Justice Devan Spear.