Municipalities in the US are facing a fiscal crisis due to the expiration of federal stimulus assistance and significant cuts in aid from states. Property values have also declined, affecting property tax revenues. This report offers an overview of payments in lieu of taxes (PILOTs) from tax-exempt nonprofits as an alternative revenue source and solution to municipal revenue crisis'. While PILOTs have the potential to provide crucial revenue, there are challenges such as fiscal stress on nonprofits, inequities in contributions, limited revenue potential, and contentious negotiation processes. Establishing systematic PILOT programs with thresholds, targets, and fair calculation methods can mitigate some of these challenges, which the report outlines.