To demonstrate concretely the value that Children's Hospital Boston provides as a not-for-profit to the citizens of Boston, Massachusetts and the country, the hospital hired Ernst and Young to calculate what it would owe in local, state and federal taxes if it were a for-profit hospital and determined that in FY'08 the hospital would owe $37.5 million.
Children's then calculated the community benefits its provided as defined by the new IRS guidelines, using a conservative projection, and determined that the hospital provides $92 million in benefits to taxpayers in exchange for its tax exemption status.
Below is a calculation for FY'08 that examines the benefits of tax exemption for the hospital compared to the benefits that tax payers receive from Children's not-for-profit mission, using a more conservative methodology than that of the IRS.
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