The City of Philadelphia is home to a diverse array of non-profit institutions that reach every neighborhood. Under the leadership of Mayor Nutter and City Council, the non-profit sector has forged a strong working partnership that allows non-profits to flourish while providing important benefits for Philadelphia’s citizens.
This partnership – this “Philadelphia Model” – differs from relationships in other cities between government and non-profits, where controversy, confrontation, and litigation often follow in the wake of municipal demands for increasing financial support from the non-profit sector. The report describes the Higher Eds in partnership with City government and with community-serving organizations, driven by a shared desire for the collaboration to serve the respective missions of the City, community serving organizations, and higher education in ways that allow each to thrive.
Higher Eds are some of the largest economic engines in Philadelphia. As a sector, they are some of the City’s largest employers, attract students and visitors from around the world, and lead major capital projects. The Higher Eds’ annual economic impact within Philadelphia is estimated to be $10.9 billion, supporting 84,000 jobs and generating $211 million in City tax revenues.
This work is a fulfillment of the Philadelphia Model: colleges and universities serving their missions of higher education and research in ways that lead to innovative partnerships for the purpose of providing necessary services and resources to every neighborhood in Philadelphia. What results is an extraordinary amount of annual in-kind contributions by the Higher Eds – $641 million per year in scholarships, community services, public safety, and other resources – in support of the city and its residents, spanning every neighborhood and every conceivable type of resource and program.
Importantly, these direct expenditures are made possible in large part by funds imported into the City from across the country and around the world in the form of tuition dollars from non-Philadelphia students, alumni donations, and research grants. Hence, outside dollars are used to support Philadelphia jobs and produce Philadelphia tax revenues, making the Higher Eds among Philadelphia's largest exporters."
"In addition to attracting visitors (and their spending) to Philadelphia, the Higher Eds serve as a major funding draw through alumni and other institutional giving. For example, the University of Pennsylvania's recently completed capital campaign raised $4.3 billion from individual and organizational donors, nearly $4 billion of which came from outside Philadelphia. The vast majority of those funds will be spent in Philadelphia to construct buildings, provide scholarships, and serve the University's mission - all while also creating jobs and generating tax revenues for the City of Philadelphia."
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