Foundations for Duke Energy, Indiana Economic Development Association commit $150,000 to improve community access to affordable child care

Rhea-AI Summary

The Duke Energy Foundation and the Indiana Economic Development Association Foundation are jointly committing $150,000 in grant funding to improve access to affordable child care in Indiana communities. Organizations can apply for grants up to $40,000 by January 31, 2025. This follows a previous $100,000 funding round last year. According to an Indiana Chamber of Commerce report, the state loses approximately $4.22 billion annually due to child care shortfalls, including $1.17 billion in tax revenue losses. Currently, only 61% of children needing care can be served through existing capacity.

Positive

• Previous successful grant program with $100,000 distributed last year
• Duke Energy Foundation provides over $30 million annually in philanthropic support

Negative

• Indiana loses $4.22 billion annually due to child care shortfalls
• State experiences $1.17 billion annual loss in tax revenue
• Only 61% of children needing care can be served through existing capacity

Insights

Market Research Analyst

This initiative represents a strategic investment in addressing workforce challenges, though the $150,000 commitment is relatively modest given Duke Energy's size. The key insight lies in the Indiana Chamber of Commerce report, revealing a staggering $4.22 billion annual economic impact from child care shortfalls. With only 61% of child care needs met statewide, this creates significant workforce participation barriers.

While this program demonstrates good corporate citizenship and community engagement, the financial impact on Duke Energy's bottom line is minimal. The initiative's true value lies in its potential to indirectly benefit the company through improved workforce stability in its service areas, potentially leading to more reliable utility payments and reduced customer service issues. However, investors should view this as a long-term community investment rather than a material financial catalyst.

PLAINFIELD, Ind., Nov. 18, 2024 /PRNewswire/ -- The Duke Energy Foundation and the Indiana Economic Development Association Foundation are committing $150,000 in grant funding to support organizations and projects focused on improving access to affordable child care in Indiana communities.

The new round of grants follows more than $100,000 in funding awarded through the foundations last year to five organizations in Indiana working to close the child care gap in new and innovative ways.

"Inadequate access to high-quality, affordable child care not only creates significant barriers for parents and caretakers to participate and advance in the workforce, but also costs employers in lost productivity and employee retention," said Erin Schneider, managing director of economic development at Duke Energy. "We know that Indiana's child care challenges are complex and we hope these grant funds will help communities and employers develop solutions needed to support working parents and the state's economy."

State and local government entities, local and regional economic development agencies, and public and private nonprofit organizations are eligible to apply for grants up to $40,000. To be considered, applicants must submit their grant proposal to the Indiana Economic Development Association by Jan. 31, 2025. Awards will be announced in March 2025. For a full description of the grant program, including requirements, eligibility and scoring criteria, visit ieda.org/foundation.

"Hoosier families, businesses and communities all feel the burden of insufficient child care options," said Matt Kavgian, executive director of the Indiana Economic Development Association. "Making sure that working parents have access to affordable, quality child care will have long-term benefits for Indiana's prosperity and economic competitiveness."

The Indiana Chamber of Commerce recently released a report examining the impact of child care challenges on Indiana's economy. The study found that Indiana loses out on an estimated $4.22 billion annually for the state's economy, including a $1.17 billion annual loss in tax revenue, due to shortfalls in child care. According to the report, only 61% of children needing care statewide can be served through existing capacity.

Duke Energy Foundation

The Duke Energy (NYSE: DUK) Foundation provides more than $30 million annually in philanthropic support to meet the needs of communities where Duke Energy customers live and work. The Foundation is funded by Duke Energy shareholders. 

Indiana Economic Development Association Foundation

Supporting the economic development profession, the Indiana Economic Development Association Foundation provides scholarships and other support to tomorrow's economic development leaders.

Duke Energy: McKenzie Barbknecht
Phone: 800.559.3853
Email: mckenzie.barbknecht@duke-energy.com 

IEDA: Matt Kavgian
Email: matt@ieda.org 

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SOURCE Duke Energy

FAQ

How much is Duke Energy (DUK) committing to child care access in Indiana?

Duke Energy Foundation and the Indiana Economic Development Association Foundation are committing $150,000 in grant funding to improve access to affordable child care in Indiana.

What is the maximum grant amount available from Duke Energy's (DUK) child care initiative?

Organizations can apply for grants up to $40,000 through this initiative.

When is the deadline to apply for Duke Energy's (DUK) child care grants in Indiana?

The deadline to submit grant proposals is January 31, 2025, with awards to be announced in March 2025.

How much does Indiana lose annually due to child care shortfalls according to Duke Energy's (DUK) report?

According to the Indiana Chamber of Commerce report, the state loses an estimated $4.22 billion annually, including $1.17 billion in tax revenue losses.