Butler last year received almost twice the amount in payments in lieu of taxes that it received in 2004, even though there were fewer nonprofit organizations contributing.

Last year, contributions from six donors totaled $16,326, while contributions in 2004 from 12 donors totaled $9,000. What made the difference was a contribution of $8,000 from First United Methodist Church, the most generous donor last year.

Government facilities, churches, hospitals, colleges, universities and other nonprofit organizations in Pennsylvania are usually exempt from paying property taxes. Small cities like Butler, a county seat with large government sites, a hospital, schools and a number of churches, can have a high percentage of real estate within its borders on the tax exempt rolls.

The courts and state Legislature have consistently upheld the tax-exempt status of nonprofit organizations, so municipalities -- including Pittsburgh -- strive to encourage nonprofits to make "payments in lieu of taxes" under the argument that the nonprofits receive the same municipal services taxpayers do.

City Treasurer Ralph D'Antonio said he and former Mayor Leonard Pintell met with representatives of First United Methodist Church last spring and discussed ways to persuade other churches to help the financially strapped city.

"Churches within the city were approached, but for one reason or another [most] decided not to do it," Mr. D'Antonio said.

Calvary Evangelical Presbyterian Church gave $2,800 last January from resources that were left after the 50-member church disbanded in 2004. "It's unusual for a church to dissolve and have a lot of money left over," Bob Masters, former member, said.

The church gave only a small portion to the city. The bulk of its money went to other local charities such as the Red Cross, Butler Area Public Library, Boy Scouts, Salvation Army, Meals on Wheels and the Seneca Hills Bible Camp.

According to Mr. D'Antonio, St. Paul Church was asked but declined to make a donation. The church pastor, the Rev. Harry Bielewicz, said he asked the diocese in Pittsburgh but the request was turned down.

The Rev. Ronald Lengwin, spokesman for the Catholic Diocese of Pittsburgh, said the diocese is opposed to such payments because it believes churches "provide services that otherwise would be born by government."

In effect, he said, churches are already contributing to the cost of municipal services by "providing services that relieve government of some costs."

Two of the largest nonprofits in the city are Butler Memorial Hospital and the YMCA. Neither made payments in lieu of taxes last year.

Spokeswoman Melissa Allen said the hospital prefers to contribute to the community at large rather than the city's tax coffers.

"As a hospital, we do a significant amount of service that we do not get paid for," Ms. Allen said.

In its fiscal year ending June 30, the hospital reported community contributions that included free health screenings, community education programs and the family services center totaling $2.1 million. In addition, the hospital provided almost $3.5 million in care to patients who could not afford to pay for treatment.

The Butler Health System, which operates the hospital, pays taxes on some of its properties, including the parking garage, rental buildings across the street from the hospital and the Nixon Sarver Building, which houses counseling services.

"Only 12 percent [of the hospital] is located in the city. We serve the entire county," Ms. Allen said.

According to Councilman James Kraus, the hospital donated $5,000 to the police department to purchase equipment. But that contribution was not included in the city's accounting records as a payment in lieu of taxes.