Baltimore City Signs $48M Agreement with Nonprofits to Enhance Investment

Baltimore City has finalized a $48 million agreement with 14 of its largest nonprofit organizations, including prominent hospitals and universities, to significantly increase their financial support over the next five years.

The agreement, announced by Mayor Brandon Scott on Wednesday, is categorized as a PILOT (Payment in Lieu of Taxes) and will be effective from Fiscal Year 2027 through Fiscal Year 2031.

Under the terms of this new deal, the combined annual contributions from these institutions are set to grow from $6 million in 2027 to $12 million by 2030. This marks a notable increase from previous PILOT arrangements, which had seen contributions ranging from $1.4 million to $6 million annually over the past 16 years.

The structure of the new agreement includes annual increases to help the nonprofits gradually enhance their contributions. It also takes into account the ongoing challenges posed by federal funding cuts, particularly impacting smaller organizations like Grace Medical Center and the Maryland Institute College of Art.

The agreement is slated for renegotiation in FY 2031.

In addition to the new PILOT payments, the 14 nonprofits already contribute approximately $29 million each year in taxes and fees, alongside $28 million in direct community services. This financial support includes $19 million allocated for community safety, $7 million for waste management, and $2 million for public right-of-way maintenance.

Collectively, these institutions employ around 71,000 individuals, representing one in four private sector jobs in Baltimore, and generate $57.6 million in local income taxes. In 2024 alone, their investments in the city are expected to reach about $652 million, benefiting schools, economic development, health services, and the arts.

Over the five-year period, assuming stable economic conditions, the city anticipates that these nonprofits will contribute a total of $481 million to the General Fund, factoring in PILOT payments, taxes, and fees.

Reported by HarborBeat based on WBFF (source).