$21M Financial Support for Local Economy
Babson College makes direct and indirect financial contributions to Wellesley and Needham.
We estimate that Babson and its affiliated programs directly contributed more than $21 million to the economies of Wellesley and Needham during 2010–2011, with additional contributions coming from indirect sources.
Direct Financial Contributions
Babson purchases a significant amount of products and services from Wellesley and Needham businesses annually. Babson spent $5,645,897 in Wellesley and $2,260,478 in Needham, including credit card sales, this fiscal year. The total spent in Wellesley includes a $75,000 payment in lieu of taxes to the town.
- Babson employs 98 residents of Wellesley and 70 residents of Needham.
- This represents approximately 15 percent of the College’s employees and $12.8 million of the College’s annual payroll budget.
- Babson employs 1,004 full- and part-time workers who are not residents of these towns, but who patronize local businesses.
- The North Hill retirement community in Needham, located on land owned by Babson College, paid $587,000 in property taxes to the town of Needham.
Indirect Financial Contributions
- Babson Executive Conference Center (BECC)
- Purchased $162,000 worth of services and products from Needham and Wellesley businesses
- BECC payroll budget for residents of Wellesley was $66,159
- BECC paid $61,654 to the town of Wellesley in room occupancy taxes and for licenses and fees
- The average student spent approximately $1,750 on personal expenses. Half of that—$875 per student—is estimated to have been spent on campus or in the local community.
- For the 2010–2011 academic year, five undergraduate Babson students lived off campus in Wellesley and Needham, providing rental income to townspeople.
- The Babson Park Post Office—ZIP code 02457, offering full service to patrons—operates rent-free in a Babson-owned building.
- Boston Sports Club (BSC), a recreation facility owned by Babson and leased by Town Sports International, regularly purchases products and services from vendors in Wellesley and Needham. BSC paid wages to more than 275 employees, some of whom are residents of Needham and Wellesley.
- Babson invested $9.7 million in building projects and another $13.8 million in plant maintenance. While it is not possible to detail how much of these funds directly benefited the towns of Wellesley and Needham, it is a major contribution to the economy of the Commonwealth of Massachusetts. Most of the materials and services used for plant maintenance are from local vendors and contractors.