Financial Benefit to the Community

To demonstrate concretely the value that Boston Children's Hospital provides as a not-for-profit to the citizens of Boston, Massachusetts and the country, the hospital hired Ernst and Young to calculate what Boston Children's would owe in local, state and federal taxes if it were a for-profit institution:

  • The firm determined that in FY10, Boston Children's would owe $43.8 million as a for-profit hospital.

Boston Children's then calculated the community benefits it has delivered as defined by the new IRS guidelines, using a conservative projection:

  • Boston Children's provides $244.6 million in benefits to taxpayers in exchange for its tax exemption status.

Below is a calculation for FY10 that examines the benefits of tax exemption for the hospital compared to the benefits taxpayers receive from Boston Children's not-for-profit mission. This calculation uses a more conservative methodology than that of the IRS.