News

Local nonprofits don't have to contribute a cent to help Pittsburgh cope with its financial problems, and their leaders don't appreciate city officials grumbling that $4.5 million the organizations raised isn't enough.

"When we see a headline that we failed to reach a goal that we didn't set, it's frustrating," said G. Reynolds Clark, vice chairman of the Pittsburgh Public Service Fund, which was established by 83 nonprofits to help the city with its financial problems.

Clark and the Rev. Ronald Lengwin, chairman of the fund, met yesterday with the Pittsburgh Tribune-Review editorial board. They were joined by Carolyn Duronio, a fund lawyer; Pittsburgh Foundation CEO William E. Trueheart; Gregg Behr, president of The Forbes Fund; and John Ellis, spokesman for The Pittsburgh Foundation.

Nonprofit leaders are miffed that Mayor Tom Murphy penciled in the nonprofits for a $6 million contribution to the 2005 budget without first talking to them. Fund officials proposed $12.1 million over three years, rather than the $33.5 million over five years that was in the city's financial recovery plan.

Fund officials acknowledged that the notion of contributing to the city raised a ruckus in the nonprofit community.

"It's very difficult for them to say (they'll) take a chunk of money from their operating budget, when indeed that could take money from their services," Lengwin said.

Some parishioners called the Catholic Diocese of Pittsburgh to question why it was contributing to the city while simultaneously closing churches and schools, Duronio said.

Some nonprofits find it so hard to bail out the city that their board members pass the hat among themselves and make contributions. The Little Sisters of the Poor in Bellevue did just that.

Nonprofit leaders dislike city officials' portrayal of charities as a drain on the city. They cite, for example, statements by the mayor that nonprofits own about 40 percent of the land in the city.

A study by the Allegheny Institute for Public Policy has found about 34 percent of land in the city is tax-exempt. Two-thirds of that is owned by the federal, state and city governments, Pittsburgh Public Schools or quasi-governmental bodies. Nonprofits own only 14 percent of the land.

"Frankly, our city leaders have been disingenuous in their comments," Trueheart said.

Murphy signed a preliminary version of an agreement with the fund in August, before contribution levels were known. Councilman Jim Motznik, of Overbrook, said he would not support the agreement as long as it has an expiration date.

Council President Gene Ricciardi criticized the pact because individual contributions are anonymous. Lengwin said the fund is not disclosing individual amounts so groups that cannot afford to give more won't be embarrassed.

"We're not looking to pit one organization against another," he said.

Duronio said nonprofits have no legal responsibility under state law to support the city. Their contribution is solely a gift.

"There isn't any basis for them to rattle any sabers at us," she said.

Despite criticism from city officials, Lengwin said fund participants are not willing to renegotiate or back out on the plan.

"They're walking away from a gift we're prepared to give them," he said. "We're not walking away."

• Most Read
• Most E-mailed
• Latest News