Submitted by Safe-Pop2076 t3_ywaef0 in pittsburgh
enemy_of_your_enema t1_iwll7lr wrote
Reply to comment by Marchesa_07 in upmc by Safe-Pop2076
>The city really needs to strip them of their non profit status.
I get why UPMC is a terrible employer and I support efforts to fix that, like unionization and better regulation. But I don't get what that has to do with their nonprofit status.
Marchesa_07 t1_iwlm5xw wrote
1st, love your username lol.
UPMC is this region's largest corporation. They should be paying their taxes same as any other local corporation.
I'm pointing this out just to further illustrate how awful they are in the context of the discussion of UPMC sucks, lol.
And to be completely fair AHN, Pitt, and CMU are also in the same boat when it comes to flagrant abuse of non profit status. They should all be paying taxes. Full stop.
enemy_of_your_enema t1_iwly8zx wrote
Should all nonprofits pay taxes? Why should these nonprofits pay taxes and not others? Does it have to do with size?
Marchesa_07 t1_iwm279i wrote
They're not non profits
They're making profits in the BILLIONS. And they are not giving back to the community on the order of billions, are they?
That's the justification for not paying taxes. . .they give back to the community. But they do not.
Amrun90 t1_iwne3ru wrote
That’s not what nonprofit means at all.
I work at UPMC and they are scummy, but this is wrong.
Cuttlefisher1890 t1_iwlojpc wrote
Less about size more about the fact that they make a profit and their c-level executives make millions per year.
enemy_of_your_enema t1_iwly1t1 wrote
Non-profits are absolutely allowed to "make a profit" in that they can bring in more money than they spend in a given period. And of course they should be able to do that - think how hard it would be to run an organization if your expenses had to always match your income.
What nonprofits can't do is take those profits home in the form of dividends. They have to be reinvested in the organization.
Being a nonprofit also has absolutely nothing to do with the salaries of executives. I think there are good reasons those salaries shouldn't be exorbitant, but it's not related to their nonprofit status. It's not the "charity" sector where qualified professionals should be expected to take a pay cut.
Cuttlefisher1890 t1_iwm71db wrote
I'm just explaining why people don't like UPMC's non-profit status. Not saying it's why they shouldn't qualify for it.
Marchesa_07 t1_iwme76i wrote
Yes, we know they're not supposed to held to a strict standard where they break even.
But their profit margins are massive, seemingly excessive, and where is UPMC reinvesting the 12 BILLION into the organization? Certainly not in the staff payrolls.
Development of additional tax free properties throughout the city? The US and abroad?
Research? I'm not going to get started on how grant indirects work, the amount of tax money that's wasted in research, or the fact that UPMC is very tight fisted with research support.
Health insurance relief?
Do you have a better idea as to the answers?
Do_Be_Suspicious t1_iwlsih6 wrote
It means they don't pay the taxes that they should.
Also, it gives them a more positive reputation. Typically when someone hears "nonprofit", they think of charitable organizations. But UPMC is the opposite of a charitable organization.
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