Child Care Is A Community Concern

Raising Arms

Child Care is a Business Issue 

The child care marketplace is suffering from a critical shortage of child care options. According to the April 2021 Harvard Business Review, Child Care is a Business Issue. "When the Covid-19 pandemic removed the safety net of schooling and employee-paid child care for working families, the damage was cataclysmic. Without a stable form of child care as part of the business infrastructure, the world stopped working for the vast majority of working parents around the world...It is up to businesses to think creatively about ways to build the child care infrastructure we need to help working parents keep working for their families, and the economy as a whole."

A Business Point of View: Council for a Strong America's President and CEO, Barry Ford, addresses reforming the child care sector, May 24, 2021 READYNATION BLOG.

  • Child care is an essential service that allows local economies to thrive by supporting today's workforce while developing the workforce of tomorrow.

  • Attracting and retaining employees is challenging when 78% of parents with infants and toddlers are in the workforce without sufficient access to child care.

How Can A Business Be Part of the Change?

  • Initiate discussions with employees about child care or joining the board of community-based child care organizations.

  • Financial support to provide child care services for employees that may be deductible as ordinary business expenses under the Internal Revenue Code Section 162 to reduce absenteeism and turnover, aid in recruitment, and increase workforce productivity. For more information, consult your tax advisor.

  • Improve access to child care for employees by contracting with Springboard Child Care, its affiliates or other qualified child care organizations to reserve child care spots for your employees.

  • Learn more about Colorado's Child Care Contribution Tax Credit (CCTC); the after-tax cost of a CCTC $30,000 donation to Springboard Child Care and other non-profit child care organizations results in a net cost to the taxpayer of $8,361 for those taxpayers in the 35% federal income tax bracket

  • Utilize available federal tax incentives for employees with child care costs:

    • Facilitate employee contributions to your cafeteria plan that includes a Dependent Care Assistance Plan (DCAP). DCAPs allow your employee to set aside tax-deferred funds for child care costs through a payroll deduction. The account administrator reimburses the employee for household childcare costs up to a maximum of $5,000 per year. See IRS Publication 15-B Employer's Tax Guide to Fringe Benefits, Page 3 for more information or contact your tax advisor. 

    • ​Contribute as an employer to an employees' Dependent Care Flexible Spending Account (FSA) for child care costs to the extent that the combined employer and employee contribution does not exceed $5,000. Note: Neither the employer nor the employee pay payroll taxes on the salary amount that has been set aside for child care reimbursement.​

Caring Child
Kids in Slide

Why Springboard?

Springboard focuses on child care providers as a small business, offering co-working facilities and peer support, access to technology and business tools to bring scale and business stability to small child care providers that parents like and communities need.

We listened to parents who expressed concerns about:

  • Reliable, quality child care

  • Child care for non-traditional work schedules

  • Support to find culturally relevant child care that match the needs of their child

We listened to childcare small business owners who expressed concerns about:

  • Razor-thin operating margins

  • Risk of going out of business - due to the increasingly high costs of providing care

  • Challenges of managing their child care business through a maze of uncoordinated regulatory agencies

Springboard partners with community leaders to enhance access to child care through its staffed, child care provider peer network, conveniently located
co-working facilities, access to technologies and business tools for the small child care programs.

BETTER TOGETHER
serving children and families