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ARTICLE · 03 FEBRUARY 2010

Foundation Not Entitled To Charitable Exemption

Cozen O'Connor
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In an unreported opinion, the Commonwealth Court held that a nonprofit corporation with the sole purpose to support the educational mission of a charter school was not entitled to an exemption for real estate that it leased to the school.

United StatesTax
Joseph Bright
Joseph Bright

In an unreported opinion, the Commonwealth Court held that a nonprofit corporation with the sole purpose to support the educational mission of a charter school was not entitled to an exemption for real estate that it leased to the school. In re Appeal of Friends of Pennsylvania Leadership Charter School, No. 808 C.D. 2009 (Pa. Cmwlth. Jan. 7, 2010) (unreported). While the decision is consistent with a statutory provision, it avoids the difficult issue presented.

The statute provides:

(b) Except as otherwise provided in clauses (11) and (13) of this section [relating to libraries and fire and rescue stations], all property real or personal, other than that which is actually and regularly used and occupied for the purposes specified in this section, and all such property from which any income or revenue is derived, other than from recipients of the bounty of the institution or charity, shall be subject to taxation, except where exempted by law for State purposes,

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