Financial Investments Contribute to Local Economy
Babson College makes both direct and indirect financial contributions to the towns of Wellesley and Needham. It is estimated that Babson and its affiliated programs directly contribute more than $18 million to their economies, with additional contributions coming from indirect sources.
Direct Financial Contributions
Babson purchases a significant amount of products and services from Wellesley and Needham businesses. Babson spent $4,419,438 in Wellesley and $1,825,814 in Needham, including credit card sales. The total spent in Wellesley includes a $75,000 payment in lieu of taxes to the town.
Babson employs 82 residents of Wellesley and 61 residents of Needham, which accounts for approximately 20 percent of employees and $11.8 million of the College’s annual payroll budget. Babson also employs 905 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 $566,000 in property taxes to the Town of Needham.
Indirect Financial Contributions
Babson Executive Conference Center (BECC) purchased $129,126 worth of services and products from Needham and Wellesley businesses. The BECC payroll budget for residents of Wellesley was $51,726. BECC also paid $57,566 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. In addition, for the 2009–2010 academic year, three undergraduate Babson students lived off campus providing rental income to townspeople.
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 $7.6 million in building projects and another $13.1 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.