MORNING STAR • DECEMBER 15 - 21, 2016PAGE 18

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Spending on B&G Clubs is good investment, report saysBy Tony E. Windsor

An independent research study has concluded that one Delaware direct-service youth agency provides an extraordinary return on investment; for every one dollar invested there is a return of almost $14 through positive economic impact in the economy.

Boys & Girls Clubs of Delaware, which has club sites in the western Sussex County communities of Seaford, Laurel and Greenwood, contracted with the California-based firm of Damooei Global Research, LLC, to determine its effectiveness and impact in delivering services to communities throughout Delaware.

Headed by Dr. Jamshid Damooei, a professor of economics and chair of the Department of Economics, Finance, and Accounting at California Lutheran University, Damooei Global Research provides economic analysis to the public and private sector, and has been instrumental in doing similar studies for Boys & Girls Clubs in New Jersey, Florida and California.

In presenting the results of the survey, which took several months to complete, Damooei said the impact study provides a resource for Boys & Girls Clubs of Delaware to share with stakeholders who support the organization.

“Each day at 44 clubs across Delaware youth get a meal; spend time with their friends; receive help with their school work; learn valuable life skills; and connect with caring adult staff, mentors and volunteers to address and combat the risk factors that befall them,” Damooei said. “This study identifies the many ways in which the clubs create economic value. Boys & Girls Clubs provide services directly and indirectly to a network of community stakeholders.”

Damooei said in addition to the Boys & Girls Club youth and their families, the or-ganization’s services benefit “the commu-nity, the economy and society as a whole.” He explained that the study used multiple strategies to collect necessary data. He said to learn about how club members impact youth experiences, achievements and be-haviors, surveys were administered to a to-tal of 1,343 youth across the state. To gain perspective on how clubs impact youth and families, over 575 parents of participating

youth were also surveyed.As a measure of the impact of Boys &

Girls Club services to communities and across the state, Damooei said organiza-tional data including basic demographic details about club members, financial and budgetary information, and an in-house questionnaire was completed by the man-agement of the clubs.

“This study used comparative data to measure the impacts in creation of changes between the behavior and performance of youth who regularly receive the benefits and their peers in the larger community. Primary data related to social intervention was analyzed using methods informed by an extensive review of literature and publicly available statistics,” he said.

Damooei said data related to Boys &

Girls Club business activities was analyzed using customized economic output models developed by Damooei Global Research.

“Once economic impacts were quanti-fied, the study used simple cost-benefit analysis to calculate ‘multipliers’ for each impact area. Each multiplier was derived by comparing the cost with the benefit (economic impact). These multipliers pro-vide a clear illustration of positive ripple effect created in the economy by the club activities. The tremendous rate of return is a testament to the vital role the clubs play in shaping the lives and futures of club members and their parents,” Damooei said.

He said that beyond the value of social services provided by B&G Clubs, there is a direct impact on the economy produced by the clubs themselves. “Boys & Girls

Clubs stimulate the economy through their budgetary expenditures and volunteer pro-grams,” Damooei said. “Just like private for-profit businesses, Boys & Girls Clubs spend money on payroll, supplies, and equipment thereby helping to stimulate the economy. Volunteers further this capac-ity through a donation of labor that has similar productive qualities as a monetary donation.”

George Krupanski, president and CEO of Boys & Girls Clubs of Delaware, said the socio-economic impact study is a valu-able tool to share as an independent evalu-ation of the organization’s contribution to the communities it serves.

“One of the challenges facing all non-

Boys & Girls Clubs of Delaware President and CEO, George Krupanski (standing), was joined at Delaware Legislative Hall by several representatives of the Delaware youth development organization recently. While at Legislative Hall, Krupanski presented Gov. Jack Markell (seated at desk) with a bound copy of a new independent socio-economic impact study that indicates that for every $1 contributed to Boys & Girls Clubs of Delaware, $13.91 is generated through positive economic impact in the economy. Markell said this tremendous rate of return is a testament to the vital role the clubs play in shaping the lives and futures of club members and their parents. The study was conducted by Damooei Global Research, Thousand Oaks, Calif.

Continued on page 19

MORNING STAR • DECEMBER 15 - 21, 2016 PAGE 19

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profits is the ability to prove their effec-tiveness and impact,” he said. “Donors, governments and investors want to know that their support is making a difference and getting a return on that investment. Even more importantly, we want to know that we are making a difference as we have dedicated our lives to serving youth through the Boys and Girls Club. Not only does this study demonstrate that our pro-grams are making an incredible difference, but they are run in an efficient and cost-effective manner, providing an incredible return to our state.”

Krupanski said he is also excited about the results of the study as it relates to the parents of Boys & Girls Club members. “The study identifies what club parents think of our programs,” he said. “Nine out of 10 parents say the Boys and Girls Club is the only program which they send their children to. Boys and Girls Clubs are truly making a difference. We can all be

proud of the work we do. For years we had known we had made a difference. Now we have the documentation to prove it.”

When the study was completed, Krupanski, joined by staff and board members of the Boys & Girls Clubs of Delaware, attended a special gathering arranged by Delaware Gov. Jack Markell at Legislative Hall to promote the findings of the study and to express his appreciation on behalf of the state, for the significant contribution B&G Clubs in communities each day.

The B&G Club impact study reveals that real economic value is realized by communities through positive youth development programming resulting in:

• Impact of better education through higher graduation rates and the resulting improved lifetime earnings among youth who attend the clubs on a regular basis as opposed to others who do not benefit from such services within the same socio-economic population.

• Lower teen pregnancy and

motherhood rates, which create economic savings.

• Impact of crime reduction programs that enable youth to resolve conflicts and become more peaceful with their own peers and others in their communities.

• Health education and its impact on reducing obesity and related diseases that leads to lower productivity and an increase in long-term chronic diseases.

• Lowering the tendency for alcohol and substance abuse and lowering of the costs associated with underage use.

• Enabling parents to work or attend school in order to upgrade their skills.

• Total employment and the income impact of the clubs through their annual expenditures, including both operational and capital budgets, as well as the donated labor of volunteers.

Data released as part of the Boys & Girls Club study indicates that for every dollar spent on the club some $3.97 is generated through regular and capital expenditures and the work of volunteers. This economic impacts creates some 540 paid jobs and more than $7.5 million in tax revenue for various levels of governments regionally, state and nationwide.

“Economic-based outputs generated by the Boys & Girls Clubs of Delaware including direct, indirect, and induced impacts, totals more than $42 million, a sum of nearly $14 million in labor income, 425 jobs, and a sum of more than $5.2 million in the form of various federal, state and local taxes,” Damooei said. “The positive, safe, and nurturing environment

of the Boys & Girls Clubs of Delaware saves the taxpayers $26,203,518 in reduced criminal justice system spending.”

Damooei says the impact study has allowed and opportunity to quantify the benefits that are being realized through the efforts of Boys & Girls Club programming. “Boys & Girls Clubs of Delaware provides a positive place for youth to develop healthy habits, improve their academic performance, reduce involvement in crime, learn conflict resolutions skills, experience the joy of volunteerism, stay away from violence, alcohol and drugs and be safe while they are out of school and away from home,” he said.

“Investing in our children is the most certain way of constructing a healthy and productive society. While many people may disagree over certain complex economic and political issues, there is little debate about the importance of human capital, healthy families, and social cohesion in bringing people together to pave the road ahead for better life.”

The Boys & Girls Clubs of Delaware Social and Economic Impact Study can be accessed electronically from: www.bgclubs.org. For more information contact Dr. Suchi Hiraesave, Ph.D., MSW, executive director, Grants Development, Boys & Girls Clubs of Delaware at 302-674-3313 or shiraesave@bgclubs.org.

Report: Clubs mean higher graduation rates, lower crimeContinued from page 18

Changes to Green Energy FundDNREC’s Division of Energy &

Climate has announced changes to the Green Energy Fund grant program for Delmarva Power residential customers. Projects with contracts signed on or after Dec. 1 will see slightly reduced grants for customer-owned solar energy systems. Grants will also no longer be offered for systems installed using a lease/power purchase agreement financing model.

In addition to the incentive changes, the program requirements are being streamlined based on comments received during stakeholder workshops. In response to stakeholder feedback, the energy audit requirement for existing non-residential construction has been removed from the program.

Projects will not be affected if the Green Energy Fund application was received by the Division of Energy & Climate before Dec. 1, or if the system contract was signed prior to that date.

“We review the grant levels for the Delmarva Power Green Energy Fund program periodically in response to changing market conditions to ensure that the program continues to be cost effective,” said Energy Program Administrator Robert Underwood,

Division of Energy & Climate. “Because the economics of solar energy continue to get stronger, we have seen the market for solar energy in Delaware grow even as we have reduced incentives in recent years.”

The Green Energy Fund is being updated following an analysis of the program, public comment, stakeholder workshops, consultation with the Delaware Sustainable Energy Utility Oversight Board and a presentation before the Renewable Energy Taskforce. The fund received a record-breaking number of applications in 2016. High program participation was factored into program changes, which are necessary for the fund’s continued sustainability. The Green Energy Fund supported more than 1,000 solar energy projects in Delaware in fiscal year 2016 alone.

The alterations will have a minimum impact on the solar market in Delaware. The analysis conducted by the Division of Energy & Climate considered the fiscal impact of the changes for both customer-owned and lease or PPA systems in terms of internal rate of return, net present value and payback period.

For more information, email Jessica.Quinn@state.de.us, or call 302-735-3480.