Accounting of Children's 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 Children's would owe in local, state and federal taxes if it were a for-profit institution:
- The firm determined that in FY10, Children's would owe $43.8 million as a for-profit hospital.
Children's then calculated the community benefits it has delivered as defined by the new IRS guidelines, using a conservative projection:
- 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 Children's not-for-profit mission. This calculation uses a more conservative methodology than that of the IRS.