Can It Build Our Island Home?

The Cost Is Real — And It Has Shaken the Debate​

The proposal for a new Our Island Home has forced Nantucket into one of the most consequential civic debates the island has faced in years. The numbers are large.

 

The current proposal carries a total project cost estimated at roughly $134 million, with the town expected to borrow about $119 million to build the facility. Financial projections reviewed by the Finance Committee suggest the town’s annual subsidy could rise from roughly $5 million today to $14–17 million per year over the coming decade.

 

For many voters, those figures alone have become the story. But focusing only on the price tag may be missing a larger question: How should a place like Nantucket fund something as fundamental as elder care?

 

The island already subsidizes other essential services that cannot pay for themselves — including solid waste operations, housing programs, and other municipal services.  The real question is not whether public support is appropriate. The question is how much of that support should come from taxpayers — and whether other funding sources are possible.

 

One option rarely discussed publicly is one that has funded major healthcare projects across the United States for decades: philanthropy and naming rights.

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A Model Used Across American Healthcare

Large healthcare institutions routinely rely on philanthropy to fund new buildings, research centers, and care facilities. Across the country, donor recognition is standard practice.

 

Examples include:

• Buildings at the Cleveland Clinic named after major donors

• Wings and programs at Massachusetts General Hospital supported by benefactors

• Departments and centers at Brigham and Women’s Hospital carrying donor names

• Research institutes and clinical programs at Boston Children’s Hospital funded through philanthropy

 

Major gifts often come with naming recognition such as:

• pavilions

• care centers

• research wings

• patient units

 

The practice is not unusual. In fact, it is one of the primary ways healthcare infrastructure is built in the United States. Municipal nursing homes, however, are rarely structured to pursue large philanthropic campaigns. That may be why the idea has not been seriously explored in the current Our Island Home debate.

 

Why the Tax Route May Be Limited

Some residents have asked whether Nantucket could simply create new taxes to fund the facility.

 

Ideas frequently raised include:

• tourist taxes

• second-home taxes

• vacancy taxes on seasonal properties

 

The reality is more complicated. Under Massachusetts law, towns have limited authority to create new taxes on their own. Most new revenue tools require approval from the state legislature.

 

Nantucket already uses many of the tools available:

• local room occupancy taxes

• short-term rental taxes and fees

• property taxes on residential property

 

Creating entirely new categories — such as a dedicated second-home tax — would likely require special legislation from Beacon Hill. Even then, the revenue may not be sufficient to fully cover the projected costs of a new nursing facility.

 

That does not mean new revenue tools are impossible, but it does mean taxes alone may not solve the problem. Which brings the conversation back to philanthropy.

 

Nantucket Is Not a Typical Community

Few places in America have the concentration of private wealth that exists on Nantucket.

 

The island is home to:

• financial industry leaders

• technology entrepreneurs

• philanthropists

• major charitable foundations

• seasonal residents with long family ties to the island

 

Real estate transactions regularly exceed $10 million. At the same time, Nantucket has a deeply rooted tradition of civic philanthropy. Institutions across the island have been supported by private donors, including:

• hospitals

• museums

• conservation organizations

• cultural institutions

 

In many cases, those gifts have transformed what would otherwise have been impossible projects. The same model could theoretically apply to Our Island Home.

 

What Philanthropy Could Actually Look Like

If Nantucket pursued a structured fundraising campaign, the goal would not be to replace public funding entirely. Instead, philanthropy could reduce the amount the town must borrow, lowering long-term costs to taxpayers.

 

A typical capital campaign might look something like this:

Lead Gifts

• 2 donors at $10 million

Major Gifts

• 5 donors at $5 million

Leadership Gifts

• 10 donors at $1 million

 

That structure alone could generate $35–40 million. Additional contributions from seasonal homeowners and community donors could potentially push the total higher. Reducing the borrowing by even $30–50 million could dramatically lower long-term operating costs.

 

Naming Rights Could Play a Role

Naming recognition is the most common way institutions secure large philanthropic gifts. That does not necessarily mean renaming the entire facility. More often, recognition applies to specific parts of a campus:

 

Examples could include:

• The [Donor Name] Skilled Nursing Pavilion

• The [Donor Name] Memory Care Center

• The [Donor Name] Rehabilitation Wing

• The Our Island Home Campus — supported by the [Foundation Name]

 

The facility itself could still remain Our Island Home, preserving its identity and history.

 

How These Campaigns Usually Work

Successful healthcare fundraising campaigns typically follow a structured process.

 

1. Leadership Committee

A small group of respected community figures leads the campaign. They identify potential donors and help build credibility.

 

2. Quiet Phase

Before anything becomes public, organizers privately approach potential major donors.

The goal is to secure 40–60 percent of the campaign target before announcing it publicly.

 

3. Public Campaign

Once major gifts are secured, the campaign expands to include:

• seasonal homeowners

• local families

• charitable foundations

 

4. Community Participation

Even smaller gifts play a symbolic role, showing broad support for the project.

 

Why Nantucket Might Be Able to Do This

Few communities combine Nantucket’s wealth with its strong sense of place. For many families, Nantucket is not simply a vacation destination, it’s a multigenerational connection.

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A campaign built around preserving dignity for aging island residents could resonate deeply with donors who have long personal ties to the island. The pitch would not be purely financial — it would be about legacy.

 

The Larger Question

The debate over Our Island Home has largely focused on the numbers — and those numbers matter. But they are only part of the story.

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Nantucket is ultimately deciding something larger: what obligations come with living in — or benefiting from — a place like this? A community that can support world-class cultural institutions, conservation efforts, and hospitals may also be capable of finding creative ways to sustain elder care.

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The question may not be whether Nantucket can afford Our Island Home.

 

It may be whether the island is willing to imagine new ways to build it — and whether it has fully explored how the extraordinary wealth connected to Nantucket might help sustain the year-round community that makes the island what it is.

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— Dominick Costanzo
Lead Editorial Advisor

3/13/26