The Changing Landscape of Charitable Tax Exemption in Pennsylvania

On February 17, 2015, the Pennsylvania Senate passed a bill that could have far reaching implications for all Pennsylvania nonprofit charitable organizations. The bill, S.B. 4, is a proposal to amend the Pennsylvania Constitution to give the General Assembly the authority to determine the qualification standards for so-called “institutions of purely public charity.” To effect such an amendment, the bill must be passed in two consecutive legislative sessions before being approved by Pennsylvania voters in a general referendum. Prior to this most recent passage by the Senate, the bill was passed in the last legislative session of the General Assembly in June 2013. As such, it will now move to the House of Representatives for its second review and consideration. If approved by the House, the bill will likely be placed on Pennsylvania ballots in this November’s general election.

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