Seeking Neighborhood Revitalization in Philadelphia: Using Tax Credits to Link the Private and Nonprofit Sectors Harvard Case Solution & Analysis

In this case, the relationship between state goalsthe activation problem areas in Philadelphiaand nonprofits mediated unusual vehicle. Pennsylvania's tax credit program designed to channel funds from private, commercial companies are not-for-profit neighborhood group. The case describes the first five years of the so-called Philadelphia Plan and a number of specific projects supported by a particular firm, in exchange for a reduction in the state corporate taxes. These projects include a profiled housing program for formerly homeless supported Crown, Cork and Seal Corporation; improving neighborhood housing programs supported by Allstate Insurance, and Community Development Corporation and the construction of subsidized housing, supported Mellon Bank. Case implicitly raises the question of how appropriate or effective for the government to direct funds to non-profit organizations, so whether the government should encourage such "three-way" (public, private, non-profit) measures that can contribute to the business benefits of the firm, whether public sector involvement in fundraising for non-profit organizations will support their mission or distract them from that. For students of urban problems, it also raises the question of the non-profit organizations, such as those described in the case, may be an effective way to improve the problem neighborhoodsand, as such improvements can or should be measured. HKS Case Number 1578.0 "Hide
by Howard Husock, Christine W. Letts 35 pages. Publication Date: December 1, 1999. Prod. #: HKS220-PDF-ENG

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