In a significant development for Boston’s cultural landscape, six prominent museums have been relieved of their responsibilities under the Payment in Lieu of Taxes (PILOT) program.
The Boston Children’s Museum, Institute of Contemporary Art, Isabella Stewart Gardner Museum, Museum of Fine Arts, Museum of Science, and New England Aquarium will no longer be required to make PILOT payments.
This change, announced by the city in newly released PILOT data for the past year, is linked to their involvement in Boston Family Days, a program initiated by the Mayor’s office that allows free admission for Boston schoolchildren and their families on select Sundays each month.
A spokesperson for the Isabella Stewart Gardner Museum confirmed that their exemption from PILOT payments is directly related to this initiative.
The New England Aquarium also acknowledged its removal from the PILOT program, although it directed questions regarding the matter to city officials.
Historically, these cultural institutions had been requested to contribute to the PILOT program, but city officials did not pursue payment from them for fiscal year 2024.
Mayor Michelle Wu has previously expressed her support for exempting cultural institutions from the PILOT program, recognizing that the six museums’ contributions had not significantly impacted the city’s revenue from PILOT payments.
Last year, a collective group of nine tax-exempt institutions contributed just 35% of their requested PILOT payments, totaling under $500,000 in cash contributions for fiscal year 2023.
City officials highlighted that the strategic shift away from PILOT payments is intended to enhance community access and programming for Boston families through initiatives like Boston Family Days.
Emma Pettit, a spokesperson for the mayor, stated, “To deliver the greatest impact and benefit for Boston families, the city is prioritizing expanded museum access and programming for Boston residents.”
In fiscal year 2023, museums contributed a mere $102,000 in cash to the PILOT program, a small fraction of the approximately $35 million amassed from all local colleges, universities, hospitals, and other institutions involved in the program.
The focus now shifts towards fostering community access programs, such as Boston Family Days, which offer free entrance for families with school-aged children, thereby providing greater value and experiences to Boston’s residents.
However, the decision has stirred controversy among some city officials. City Councilor Erin Murphy has voiced concerns about the lack of transparency from the mayor’s office regarding this decision, indicating that it sets a “troubling precedent.”
Murphy intends to call for an immediate hearing to explore her apprehensions and seeks clarity on the reasons behind the removal of the six cultural institutions from the PILOT program, which she asserts was done without adequate public notice.
The councilor has previously been critical of the move to limit the free museum initiative only to Boston Public Schools students during its inaugural year and worked alongside Councilor Ed Flynn to advocate for the program’s expansion.
The initial iteration of this initiative, called BPS Sundays, has now evolved into Boston Family Days as of January.
Expressing her discontent, Murphy stated, “I am deeply concerned by recent revelations that the mayor has allowed six participating museums to forgo their voluntary PILOT contributions without informing the City Council or the public.”
She emphasized that this lack of open dialogue undermines public trust and accountability, particularly regarding the PILOT program, which is designed to ensure tax-exempt organizations contribute appropriately to the city’s municipal services.
Murphy remarked, “Exempting these museums without open dialogue or council input not only reduces potential revenue but also sets a troubling precedent.”
In contrast, three cultural institutions—Boston Symphony Orchestra, GBH, and Longwood Collective—have fully met their PILOT payment obligations last year.
These nonprofits contributed $396,734 in cash as well as the same amount in community benefits, which include scholarships and community services, computed by the institutions as contributions to the city and its residents.
Under the PILOT framework, private organizations with tax-exempt properties valued over $15 million are encouraged to make voluntary payments equivalent to about 25% of their estimated real estate taxes.
Recent city data reflects that educational, medical, and cultural institutions together fulfilled 76% of their requested $128.79 million PILOT payments last year, with only $34.85 million of that total presented in cash, while the remainder was accounted for in community benefits.
While residents recently faced steep tax increases, many of the tax-exempt institutions—including Boston’s largest hospitals and universities—failed to cover $30.2 million of their requested PILOT contributions.
This longstanding issue of inadequate compliance with the PILOT program has become a point of contention, with advocates and several elected officials asserting that Boston’s affluent nonprofit sector is not delivering its fair share towards local taxation.
Conversely, the nonprofit sector has emphasized the range of community services they provide, which they consider as contributing to the city’s wellbeing.
Currently, the Wu administration is engaged in negotiations with nine of the largest nonprofit organizations in Boston to establish long-term voluntary PILOT agreements, aiming to alleviate the financial burden on local homeowners and businesses.
image source from：https://www.bostonherald.com/2025/04/25/six-tax-exempt-boston-cultural-institutions-relieved-of-pilot-payment-duties/
