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Accounting of Children's financial benefit to the community: FY 2007

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 hospital:

• In FY07, Children's would owe $42 million as a for-profit.

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

• In FY07, the hospital provided $79 million in benefits to taxpayers in exchange for its tax exemption status.

Below is a calculation for FY07 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.