Despite the growing importance of PILOTs for cities and nonprofits, little is known about how characteristics of requests for PILOTs influence fairness perceptions and compliance. We examine how PILOT frame (carrot versus stick) and procedure (systematic versus ad hoc) jointly influence the fairness perceptions of requests for PILOTs and whether these perceptions, in turn, influence the likelihood of compliance. We conduct an experiment and find that requests framed as a carrot, rather than a stick, are perceived as more fair. Requests that are administered in a systematic, rather than ad hoc manner, are perceived as more fair, but only when the request is framed as a carrot. Perceptions of fairness, in turn, increase the likelihood that nonprofits will comply with the request for PILOTs. A follow-up survey of senior nonprofit executives confirms that PILOT frame and procedure affect their perceptions of fairness similar to our experimental participants. Importantly, survey participants indicate that perceptions of fairness are a significant determinant of their cooperation with the city, not only on the request for PILOTs, but also on future collaborative initiatives. We discuss the implications of our study for entities affected by PILOTs.