Abstract:
In this case, the relationship between public goals of the revitalization of distressed neighborhoods in Philadelphia and nonprofit organizations is mediated by an unusual vehicle. A Pennsylvania state tax credit program is designed to channel funds from private, for-profit firms to not-for-profit neighborhood groups. The case describes the first five years of the so-called Philadelphia Plan and a series of specific projects supported by specific firms, in exchange for a reduction in state corporate taxes. The projects profiled include a housing program for the formerly homeless supported by Crown, Cork and Seal Corporation; a neighborhood housing improvement program supported by Allstate Insurance; and a community development corporation and builder of subsidized housing supported by Mellon Bank. The case implicitly raises the question of whether it is prudent or effective for state government to direct funds toward nonprofits in this way; whether government should facilitate such "tripartite" (public, private, nonprofit) arrangements which could redound to the business advantage of firms; whether public sector involvement in fundraising for nonprofits will support their mission or divert them from it.
Learning Objective:
For students of urban problems, the case also raises the question of whether the work of nonprofits such as those described in the case can be an effective means of improving distressed neighborhoods and how such improvement could or should be measured.
