“Pa. Tax Ruling Boosts Nonprofits’ Competitive Edge, Atty Say,” Law360

On June 24, 2025, Law360 published an article discussing a recent Pennsylvania Supreme Court decision. S.A.L.T. Practice Chair and Shareholder Stewart Weintraub added his insight to the discussion on the final ruling that says competitive executive compensation is not a threat to tax-exemption for hospitals and other nonprofit organizations.

“The court in HUP said an institution of purely public charity needs to be free from a private profit motive, but never said what a private profit motive is or how you measure it,” Weintraub said. “The previous view was that if an executive’s compensation is based on financial performance, then they’re not without a private profit motive. That blanket standard eroded to the point where you could include in the compensation of senior executives some measure of financial performance-based pay, but again, never with any specific guidance.”

To view the full article, subscribers may click here.