Return on Investment Study: 

YouthBuild AmeriCorps 

ICF Incorporated, LLC 

9300 Lee Highway 

Fairfax, VA 22031 

https://www.icf.com 

Submitted to: 

AmeriCorps 

250 E St., SW 

Washington, DC 20024 

Submitted by: 

August 30, 2021 

This report was commissioned by AmeriCorps’ Office of Research and 

Evaluation under Contract # GS00Q14OADU209 and Order # 

95332A20R0013. Information in this report is in the public domain. Please, 

direct communications related to this report to Lily Zandniapour at 

lzandniapour@cns.gov and Sarah Yue at syue@cns.gov. Cite this report as 

follows: Naugler, A., Kulka, L., Miller, B., Modicamore, D., Munaretto, C., 

Pershing, J., & Sarwana, M. (2021). Return on Investment Study: YouthBuild 

A iC ICF 
 

 

 

Return on Investment Study: 

YouthBuild AmeriCorps 

CONTENTS 

Executive Summary...............................................................................................................ES-1 

YouthBuild AmeriCorps.....................................................................................................ES-1 

Return on Investment Study Methods............................................................................. ES-3 

Program Benefits, Forgone Benefits (Opportunity Cost), and Program Costs............ ES-6 

ROI Results..........................................................................................................................ES-8 

Introduction .................................................................................................................................1 

Program Description...................................................................................................................2 

Population Served..................................................................................................................3 

YouthBuild AmeriCorps Evaluation History...........................................................................5 

Selection of YouthBuild AmeriCorps for the AmeriCorps ROI Project...............................6 

Comparable ROI Estimates...................................................................................................6 

ROI Methodology .......................................................................................................................8 

Monetizing Program Benefits, Forgone Benefits (Opportunity Cost), and Program 

Costs ......................................................................................................................................11 

ROI Study Limitations............................................................................................................20 

Program Benefits, Forgone Benefits (opportunity cost), Program Costs, and ROI 

Results ........................................................................................................................................21 

Program Benefits ..................................................................................................................21 

Forgone Benefits (Opportunity Costs)................................................................................22 

Program Costs ......................................................................................................................23 

ROI Results.............................................................................................................................24 

Recommendations for Further Research................................................................................29 

Conclusion ................................................................................................................................30 

Appendix A: Program Benefits, Forgone Benefits, and Program Costs Included in 

Return on Investment Calculations.........................................................................................32 

Appendix B: Additional Information on the Methodology...................................................38 

Methodology Overview ......................................................................................................38 

Measuring Program Benefits ...............................................................................................39 

Measuring Forgone Benefits (Opportunity Costs).............................................................56 

i 
Return on Investment Study: 

YouthBuild AmeriCorps 

Measuring Program Costs ...................................................................................................60 

Calculating ROI ....................................................................................................................60 

References ................................................................................................................................63 

LIST OF FIGURES 

Figure ES 1. Benefits among YouthBuild AmeriCorps Participants and Government 

Derived from YouthBuild AmeriCorps.......................................................................................4 

Figure 1. Benefits among YouthBuild AmeriCorps Participants and Government 

Derived from YouthBuild AmeriCorps.....................................................................................10 

Figure 2. Compound Interest Formula Used to Calculate Investment Opportunity 

Cost ............................................................................................................................................59 

LIST OF TABLES 

Table 1. Demographic and Socioeconomic Characteristics of YouthBuild AmeriCorps 

Participants for Most Recent Program Year ............................................................................3 

Table 2. Core Program Measures by Program Type and Overall .........................................6 

Table 3. Benefits Realized from the YouthBuild AmeriCorps Program by Stakeholder 

Group.........................................................................................................................................11 

Table 4. YouthBuild AmeriCorps Program Costs by Funder Type ........................................20 

Table 5. Program Benefits by Recipient .................................................................................22 

Table 6. Forgone Benefits from Professional Opportunity Cost............................................22 

Table 7. Forgone Benefits from Investment Opportunity Cost by Scenario and 

Funding Stream.........................................................................................................................23 

Table 8. Program Cost by Funding Source for YouthBuild AmeriCorps..............................24 

....................................................................................................................................................25 

Table 9. Program Benefits, Forgone Benefits, and Costs Included in the ROI Calculations 

Table 10. Benefits and Costs by ROI Scenario.......................................................................25 

Table 11. ROI Results for YouthBuild AmeriCorps...................................................................27 

Table 12. Program Benefits, Forgone Benefits, and Program Costs Included in ROI 

Calculations ..............................................................................................................................32 

Table 13. Per-Person Annual Average Pre-tax and Post-tax Earnings for YouthBuild 

AmeriCorps Participants ..........................................................................................................40 

Table 14. Cumulative Additional Post-tax Earnings due to Participation in the 

YouthBuild AmeriCorps Program by Scenario.......................................................................41 

Table 15. Average Total Cost of Education and Portion Attributable to Education 

Award by Degree Type............................................................................................................43 

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Return on Investment Study: 

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Table 16. Importance of Going to the Following Post-secondary Education Institutions 

Pre- versus Post-Program as Reported by YouthBuild AmeriCorps Participants................44 

Table 17. Estimates of the Number of Post-secondary Degrees Obtained With Using 

the Education Award by Degree Type..................................................................................45 

Table 18. Additional Earnings from YouthBuild AmeriCorps Participants’ Use of the 

Education Award .....................................................................................................................47 

Table 19. Government Lifetime Costs from Increased Educational Attainment Level 

per Individual’s Lifetime ...........................................................................................................52 

Table 20. 2020 Tax Rates and Ratio of Taxable Expenditures for YouthBuild 

AmeriCorps Participants’ Earnings and Education Awards.................................................53 

Table 21. State/Local and Federal Government Benefits by Stakeholder Group and 

by Scenario ...............................................................................................................................54 

Table 22. Forgone Earnings of YouthBuild AmeriCorps Participants for a Service Term ...57 

Table 23. Forgone Taxes Associated with the Forgone Earnings of YouthBuild AmeriCorps 

Participants for a Service Term................................................................................................58 

Table 24. Forgone Benefits from the Investment Opportunity Cost Calculation by 

Scenario and Funding Stream ................................................................................................59 

Table 25. Funding Sources and Amounts for YouthBuild AmeriCorps (September 2019 – 

August 2020)..............................................................................................................................60 

Table 26. ROI Calculations for Short-Term Scenario..............................................................62 

Table 27. ROI Calculations for Medium-Term Scenario........................................................62 

Table 28. ROI Calculations for Long-Term Scenario..............................................................62 

AUTHORS 

This study was conducted by researchers from ICF and BCT Partners: 

• Alix Naugler, ICF, Senior Research Scientist 

• Lisa Kulka, BCT Partners, Research and Evaluation Analyst 

• Benjamin Miller, ICF, Senior Director 

• Dominic Modicamore, ICF, Lead Economist 

• Claire Munaretto, ICF, Senior Economics Analyst 

• Janet Pershing, ICF, Vice President 

• Miriam Sarwana, BCT Partners, Research and Evaluation Analyst 

iii 
 

 

 

 

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Return on Investment Study: 

YouthBuild AmeriCorps 

Executive Summary 

YouthBuild AmeriCorps 

AmeriCorps contracted with ICF Incorporated, 

LLC (hereafter ICF) to explore and quantify the 

return on investment (ROI) of several programs 

that rely on AmeriCorps national service as a 

major resource to sustain operations. ROI 

analyses have the potential to help AmeriCorps 

measure the performance of programs and 

build the base of evidence for future resource 

allocation decisions. In addition, ROI study results 

will help AmeriCorps communicate the value of 

its programming to relevant stakeholders. 

This ROI study measures the benefits of the 

YouthBuild AmeriCorps program against costs. 

YouthBuild USA (YouthBuild) is a national youth 

leadership program designed to improve 

education and employment outcomes for youth 

aged 16 to 24 who are neither in school nor 

employed (referred to as opportunity youth). 

The goal of the program is to help these youth 

Key Results 

This study estimates YouthBuild 

AmeriCorps’s ROI to be between 

-$0.40 and $9.58 per funder 

dollar, depending on how long 

YouthBuild AmeriCorps 

participants experience 

increased earnings from serving 

and participating in YouthBuild 

AmeriCorps. The return on each 

dollar of federal support for the 

program is between -$0.72 and 

$17.97. These results are driven by 

favorable employment and 

education outcomes for 

YouthBuild AmeriCorps 

participants in the years following 

their service. 

attain high school diplomas or equivalency credentials, obtain occupational skills and 

experience, develop leadership skills, and deepen their commitment to service in their 

communities. YouthBuild serves over 8,000 individuals each year through 233 local 

programs across 46 U.S. states. It primarily provides hands-on vocational training in 

construction skills related to building and rehabilitating affordable housing in 

low-income neighborhoods. It recently expanded its service stream to include skill 

development in other in-demand industries such as health care, computer technology, 

and environmental services. 

Population Served 

For the September 2019 to August 2020 program year, all YouthBuild AmeriCorps 

participants were between the ages of 16 and 24, 44 percent identified as Black or 

African American and 31 percent identified as Hispanic, 61 percent were male, and 

86 percent indicated they were economically disadvantaged. Additionally, 85 

percent had less than a high school education prior to program entry. YouthBuild 

AmeriCorps members serve low-income urban and rural communities nationwide. 

These are economically-distressed areas with high rates of poverty (e.g., the 

average poverty rate of sites in 2018 was 27.1 percent) and median annual 

household incomes significantly below the national-level. 

ES 1 
 

 

 

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Return on Investment Study: 

YouthBuild AmeriCorps 

YouthBuild has received AmeriCorps funding since 1994 and—for a subset of YouthBuild 

programs—program participants are, themselves, AmeriCorps members.1 YouthBuild 

AmeriCorps programs enroll over 2,500 opportunity youth as AmeriCorps State and 

National members annually across 65 U.S.-based programs. They directly participate in 

the YouthBuild program and, as AmeriCorps members, earn education awards upon 

program completion.2 In this way, these AmeriCorps State and National members are 

both service providers and program participants. They provide services such as building 

affordable housing and community assets. They also benefit as program participants 

from YouthBuild’s support toward attaining high school diplomas or high school 

equivalence (HSE) credentials, gaining job skills in high-demand employment sectors, 

and developing leadership skills. YouthBuild also engages AmeriCorps VISTA members 

and AmeriCorps State and National members who do not directly participate in the 

YouthBuild program. Due to data availability, the focus of this ROI analysis is on the 

benefits derived from and the program costs associated with AmeriCorps State and 

National members who are also YouthBuild program participants. These individuals 

(hereafter YouthBuild AmeriCorps participants) are YouthBuild AmeriCorps members 

themselves and they also receive YouthBuild program services and supports directly. 

YouthBuild AmeriCorps Impacts: Selected Evaluation Results 

Below are findings from YouthBuild AmeriCorps’s 2019 evaluation (The Center for 

Youth and Communities, 2019) on the program’s performance and impact: 

• 72.5 percent of YouthBuild AmeriCorps participants who completed the 

YouthBuild AmeriCorps program were placed in a job post-service. 

• Of YouthBuild AmeriCorps participants that did not have a high school 

diploma or equivalency pre-service and who completed the YouthBuild 

AmeriCorps program, 67.8 percent obtained one post-service. 

• 12.8 percent of YouthBuild AmeriCorps participants who completed the 

YouthBuild AmeriCorps program enrolled in post-secondary education 

post-service. 

• 59.9 percent of YouthBuild AmeriCorps program participants completed the 

program and earned an education award post-service. 

1 YouthBuild. (2020, October 28). The YouthBuild AmeriCorps Partnership. Retrieved from 

https://youthbuild.org/our-approach/youthbuild-usa/americorps/ 

2 AmeriCorps State and National members are eligible for a Segal AmeriCorps Education Award upon 

successful completion of their service term that can be used to pay current educational expenses or to 

repay qualified student loans. For more information about this AmeriCorps education award, please see 

https://americorps.gov/members-volunteers/segal-americorps-education-award. 
 

 

 

 

 

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Return on Investment Study: 

YouthBuild AmeriCorps 

Return on Investment Study Methods 

The methodology for the YouthBuild AmeriCorps ROI study consists of the following 

components: 

1. Measuring and monetizing program benefits. This included using data from a 

previous evaluation and other third-party sources to determine the benefits of 

the YouthBuild AmeriCorps program. Benefits are realized across two stakeholder 

groups: YouthBuild AmeriCorps participants and government. Specifically, these 

benefits include increased earnings for YouthBuild AmeriCorps participants due 

to both increased employment and use of education awards post-service to 

pursue post-secondary education. Government benefits include tax revenue 

generation from increased economic activity and earnings, tax revenue from 

YouthBuild AmeriCorps members’ education awards, and reduced spending on 

corrections, public assistance, and social insurance. This analysis monetized 

program benefits using various proxies and summed those amounts to quantify 

the impact of the YouthBuild AmeriCorps program in 2020 dollars. 

2. Estimating forgone benefits (opportunity costs). This ROI analysis estimated two 

types of forgone benefits. The first was the professional opportunity cost to 

YouthBuild AmeriCorps members for their period of national service, during which 

they could have earned more pay by doing other work. This included both the 

forgone earnings of YouthBuild AmeriCorps members and the associated tax 

revenue for government. The second was the investment opportunity cost for 

YouthBuild AmeriCorps program funding that could have been used for other 

purposes. The analysis estimated the investment opportunity cost for both 

government and private funders based on the forgone return of investing 

program funds into U.S. Treasury bonds. The rates of return for U.S. Treasury bonds 

provide a market-based estimate of return for low-risk investments. For the ROI 

estimates, the analysis subtracted forgone benefits from program benefits to 

calculate net benefits. The net benefits were then compared to program costs. 

3. Assessing program costs. YouthBuild provided YouthBuild AmeriCorps program 

costs for the September 2019 to August 2020 program year. Only the program 

costs that support YouthBuild AmeriCorps State and National members who 

directly participate in the YouthBuild AmeriCorps program are included in this 

ROI analysis. They exclude funds for YouthBuild AmeriCorps VISTA members who 

assist with capacity building and YouthBuild AmeriCorps State and National 

members who do not participate in the YouthBuild program since benefits for 

those members are not included in the ROI. These program costs included the 

AmeriCorps State and National grant, the education awards received by 

YouthBuild AmeriCorps participants after program and service completion, and 

match funds from private as well as local, state, and other federal government 

stakeholders. 

ES 3 
ES 4-

 

 

 

 

Return on Investment Study: 

YouthBuild AmeriCorps 

4. Calculating the ROI. The ROI analysis consists of three ROI calculations: 

1) total benefits per federal dollar, 2) total benefits per funder dollar, and 

3) federal government benefits per federal dollar. This analysis calculated the 

value of these three ROI calculations under three scenarios representing different 

assumptions about the persistence of program outcomes. As mentioned above, 

the benefits used to calculate the ROI are the net benefits associated with the 

program (the program benefits minus the forgone benefits). 

This analytical framework included only those benefits that could be reasonably 

monetized given the available data, and that likely would not have occurred without 

the YouthBuild AmeriCorps program. Figure ES 1 shows how YouthBuild AmeriCorps 

program activities result in YouthBuild AmeriCorps participant and government benefits. 

Figure ES 1. Benefits among YouthBuild AmeriCorps Participants and Government 

Derived from YouthBuild AmeriCorps 

Government Benefits 

YouthBuild AmeriCorps Participant Benefits 

YouthBuild 

AmeriCorps 

Program Activities 

YouthBuild 

AmeriCorps 

Participant 

Impacts 

Table ES 1 shows the benefits, forgone benefits (opportunity costs), and costs that are 

included in each of the three types of ROI calculations. 
ES 5-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Investment Study: 

YouthBuild AmeriCorps 

Table ES 1. Program Benefits, Forgone Benefits, and Costs Included in the ROI 

Calculations 

ROI Calculation Program Benefits Forgone Benefits Costs 

Total Benefits per 

Federal Dollar 

• All YouthBuild 

AmeriCorps 

participant and 

government benefits 

derived from the 

program 

• Forgone Benefits 

from total 

professional 

opportunity cost 

• Forgone Benefits 

from federal 

investment 

opportunity cost 

• AmeriCorps 

federal 

funding 

• Match federal 

funding 

Total Benefits per 

Funder Dollar 

• All YouthBuild 

AmeriCorps 

participant and 

government benefits 

derived from the 

program 

• Forgone Benefits 

from total 

professional 

opportunity cost 

• Forgone Benefits 

from total investment 

opportunity cost 

• AmeriCorps 

federal 

funding 

• All match 

funding 

Federal 

Government 

Benefits per 

Federal Dollar 

• Additional federal 

government tax 

revenue generation 

and reduced 

spending 

attributable to the 

program 

• Forgone Benefits 

from Federal 

professional 

opportunity cost 

• Forgone Benefits 

from Federal 

investment 

opportunity cost 

• AmeriCorps 

federal 

funding 

• Match federal 

funding 
ES 6-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Investment Study: 

YouthBuild AmeriCorps 

Available data established that YouthBuild AmeriCorps participants enjoy earnings 

impacts as a result of serving with and participating in the YouthBuild AmeriCorps 

program. However, the data do not establish the duration of those benefits. To address 

a range of possible durations for those benefits as well as lifetime benefits, the analysis 

includes three scenarios:3 

• Short-term. This scenario assumes short-term earnings impacts. The assumption is 

that earnings impacts are limited to a single year after program exit. This scenario 

also assumes no lifetime benefits are realized. 

• Medium-term. This scenario assumes a longer duration of earnings impacts. The 

assumption is that earnings impacts last 15 years. A 3 percent discount rate is 

applied each year to represent net present value in 2020 dollars.4 This scenario 

also assumes only half of the net present value of lifetime benefits is realized. 

• Long-term. This scenario assumes sustained earnings impacts throughout 

YouthBuild AmeriCorps participants’ working years. The assumption is that 

earnings impacts last 30 years. A 3 percent discount rate is applied each year to 

represent net present value in 2020 dollars. This scenario also assumes the entire 

net present value of lifetime benefits is realized. 

The long-term scenario (i.e., 30 years of sustained employment and earnings benefits) 

represents roughly a lifetime of working years for a given person while the short-term 

scenario assumes benefits for only the year after program participation or service. The 

medium-term scenario (i.e., 15 years of sustained employment and earnings benefits) 

represents the midpoint between these two scenarios. 

Program Benefits, Forgone Benefits (Opportunity Cost), and Program Costs 

Table ES 2 shows the estimates of monetized benefits of the YouthBuild AmeriCorps 

program by stakeholder group for each of the three scenarios and the percentage of 

the total benefits that each represent. The proportion of benefits going to YouthBuild 

AmeriCorps participants (699 program completers), the federal government, and 

state/local governments were relatively stable across scenarios. In all three scenarios, 

YouthBuild AmeriCorps participants realized two-thirds or more of program benefits. 

3 These three scenarios consider varying durations of how long increased employment and earnings 

benefits last for YouthBuild AmeriCorps participants. They also consider varying durations for lifetime benefits 

that stem from the YouthBuild AmeriCorps program. For example, lifetime benefits in terms of decreased 

public assistance, social insurance, and corrections costs result from YouthBuild AmeriCorps participants’ 

higher educational attainment post-service. The analysis estimates lifetime benefits differently in the three 

scenarios. Specifically, the net present value of the entire lifetime benefit is realized for the long-term 

scenario, half of the net present value of the lifetime benefit is realized for the medium-term scenario, and 

no lifetime benefit amount is realized for the short-term scenario. 

4 The Office of Management and Budget (1992) defines a discount rate as, “The interest rate used in 

calculating the present value of expected yearly benefits and costs” (p. 18). Regarding the 3 percent 

discount rate, see Office of Management and Budget (2003). 
ES 7-

 

 

 

 

 

 

 

 

 

 

 

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Return on Investment Study: 

YouthBuild AmeriCorps 

Table ES 2. Program Benefits by Recipient 

Recipient 

Benefits by Scenario (2020$) 

Short Term Medium Term Long Term 

YouthBuild AmeriCorps Participants 

(percent of total benefits) 

$3,114,306 

(75%) 

$82,912,429 

(68%) 

$138,597,854 

(66%) 

Federal Government 

(percent of total benefits) 

$782,437 

(19%) 

$23,992,231 

(20%) 

$43,466,256 

(21%) 

State/Local Governments 

(percent of total benefits) 

$263,148 

(6%) 

$15,062,301 

(12%) 

$28,274,057 

(13%) 

Total Program Benefits 

(total percent) 

$4,159,891 $121,966,961 $210,338,167 

(100%) (100%) (100%) 

Table ES 3 shows the breakdown of forgone benefits of both YouthBuild AmeriCorps 

participants and funders. These forgone benefits are subtracted from the program 

benefits (shown above) to calculate the net benefits of the program. Those net benefits 

are then compared to program cost to calculate the ROI. These forgone benefits are 

referred to as the professional and investment opportunity costs. 

The professional opportunity cost includes the post-tax earnings YouthBuild AmeriCorps 

members forgo—and the associated taxes forgone—due to their service with the 

YouthBuild instead of other work. This opportunity cost is consistent across all 

three scenarios. 

The investment opportunity cost represents the forgone accrued interest from investing 

YouthBuild AmeriCorps program funding into U.S. Treasury bonds instead of into the 

YouthBuild AmeriCorps program. The forgone accrued interest calculated varies by 

scenario because the analysis matched real interest rates for different maturity levels to 

the three scenarios. The period of forgone interest accrual was set to the length of each 

scenario. 

Table ES 3. Forgone Benefits (Opportunity Cost) by Scenario 

Forgone Benefits (Opportunity Cost) 

ROI Scenario (2020$) 

Short term Medium term Long term 

Professional Opportunity Cost $11,757,989 $11,757,989 $11,757,989 

Forgone Earnings of YouthBuild AmeriCorps 

Participants $9,742,868 $9,742,868 $9,742,868 

Forgone Taxes from Forgone Earnings $2,015,121 $2,015,121 $2,015,121 

Investment Opportunity Cost $255,269 $4,736,355 $11,071,781 

Forgone Benefits from Federal Government 

Investment/returns $139,711 $2,592,242 $6,059,668 

Forgone benefits from state/local government 

and private funder investment/return $115,558 $2,144,113 $5,012,113 
ES 8-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Return on Investment Study: 

YouthBuild AmeriCorps 

Table ES 4 shows the program cost of YouthBuild AmeriCorps by funding source for the 

September 2019 to August 2020 program year (excluding opportunity costs which are 

estimated separately). The total cost of the program—which only includes funding that 

supported the position and activities of YouthBuild AmeriCorps participants—was 

almost $19.6 million. About 55 percent of program costs ($10.7 million) were funded by 

federal government sources, while the remaining 45 percent ($8.9 million) consisted of 

match funding provided by private funders as well as state and local governments. 

Table ES 4. Program Cost by Funding Source 

Funding Source Amount ($) Percent of Total (%) 

AmeriCorps State & National Grant $8,068,367 41.2% 

Expected Education Awards $2,576,958 13.2% 

Match Federal Funding $66,839 0.3% 

Total Federal Government Funding $10,712,164 54.7% 

Match State & Local Government 

Funding $4,661,442 23.8% 

Match Private Funding $4,198,874 21.5% 

Total Non-Federal Government Funding $8,860,316 45.3% 

Grand Total $19,572,480 100.0% 

ROI Results 

This analysis developed ROI estimates using the three scenarios (short-term, mediumterm, and long-term). As noted above, the ROI calculations compared the net benefits 

of the YouthBuild AmeriCorps program with program costs to calculate the ROI. Table 

ES 5 shows the gross program benefits, forgone benefits, net benefits, and program 

costs of the YouthBuild AmeriCorps program, along with the results of the three 

ROI calculations. 

Table ES 5. Benefits and Costs by ROI Scenario 

Benefits and Costs 

ROI Scenario (2020$) 

Short term Medium term Long term 

Total Gross Program Benefits $4,159,891 $121,966,961 $210,338,167 

Member Benefits $3,114,306 $82,912,429 $138,597,854 

Federal Government Benefits $782,437 $23,992,231 $43,466,256 

State/Local Government/Other Funder 

Benefits 

$263,148 $15,062,301 $28,274,057 

Total Forgone Benefits (Opportunity Costs) $12,013,258 $16,494,344 $22,829,770 

Forgone Benefits to Members (Forgone 

Earnings Post-Taxes) $9,742,868 $9,742,868 $9,742,868 

Forgone Tax Revenue from Member Earnings $2,015,121 $2,015,121 $2,015,121 
ES 9-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Return on Investment Study: 

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Benefits and Costs 

ROI Scenario (2020$) 

Short term Medium term Long term 

Forgone Tax Revenue to Federal Government $1,316,994 $1,316,994 $1,316,994 

Forgone Tax Revenue to State/Local 

Government $698,128 $698,128 $698,128 

Forgone Benefits from Funding Provided (All 

Funders) $255,269 $4,736,355 $11,071,781 

Forgone Investment Benefits to Federal 

Government from Funding Provided $139,711 $2,592,242 $6,059,668 

Forgone Investment Benefits to State/Local 

Government and Other Funders from Funding 

Provided 

$115,558 $2,144,113 $5,012,113 

Total Program Net Benefits (Total Program 

Gross Benefits – Total Forgone Benefits) -$7,853,367 $105,472,617 $187,508,397 

Net Benefits to Members (Member Benefits – 

Forgone Benefits to Members) -$6,628,562 $73,169,561 $128,854,986 

Net Benefits to Federal Government (Federal 

Government Benefits – Forgone Tax Revenue 

to Federal Government – Forgone Investment 

Benefits to Federal Government from Funding 

Provided) 

-$674,268 $20,082,995 $36,089,594 

Net Benefits State/Local Government and 

other funders (State/Local Government 

Benefits – Forgone Tax Revenue to State/Local 

Government – Forgone Investment Benefits to 

State/Local Government and Other Funders 

from Funding Provided) 

-$550,538 $12,220,060 $22,563,816 

Total Program Costs $19,572,480 $19,572,480 $19,572,480 

Federal Government Cost $10,712,164 $10,712,164 $10,712,164 

Non-Federal Government Costs $8,860,316 $8,860,316 $8,860,316 

ROI for Total Benefits per Federal Dollar (Total 

Program Net Benefits / Federal Government 

Costs) 

-$0.72 $10.05 $17.97 

ROI for Total Benefits per Funder Dollar (Total 

Program Net Benefits / Total Program Costs) -$0.40 $5.39 $9.58 

Federal Government Benefits per Federal 

Dollar (Net Benefits Federal Government / 

Federal Government Costs) 

-$0.06 $1.87 $3.37 
ES 10-

 

 

 

 

 

 

 

 

 

 

 

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Return on Investment Study: 

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Table ES 6 shows the ROI results for the YouthBuild AmeriCorps program. The results are 

expressed as cost–benefit ratios, while maintaining the ROI terminology. Specifically, 

these ratios take the form of the sum of monetized benefits over the sum of applicable 

program costs. The ROIs expressed as cost–benefit ratios in this study can be interpreted 

as the amount of dollars returned for every $1 of investment (or program cost).5 

Table ES 6. ROI Results for YouthBuild AmeriCorps 

ROI Calculation Short term 

ROI Scenario 

Medium term Long term 

Total Benefits per Federal Dollar -$0.72 $10.05 $17.97 

Total Benefits per Funder Dollar -$0.40 $5.39 $9.58 

Federal Government Benefits per Federal Dollar -$0.06 $1.87 $3.37 

The YouthBuild AmeriCorps program produces strong returns for the medium- and 

long-term scenarios, particularly when benefits to YouthBuild AmeriCorps participants 

and state/local governments are included. This is indicated by the results of the total 

benefits per federal dollar and the total benefits per funder dollar ROI calculations for 

these two scenarios. 

In the short-term scenario—where benefits for only one year post-program are 

included—the ROI results are negative, indicating that costs outweigh the benefits in 

the first year after the first year after the program. A negative ROI in the first year 

post-program is common in programs where there is an initial one-time investment 

made and benefits accrue in the following years. This is because it often requires 

several years of benefits to recoup the initial investment and generate positive returns, 

as indicated in the results for the medium- and long-term scenarios. During the 

program, AmeriCorps members gain the experience, skills, and knowledge that result in 

future benefits, such as improved employment and wages, which can be sustained 

throughout their working years. In the short-term scenario specifically, for every $1 

invested by the federal government, the initial $1 investment plus an additional $0.72 

are lost. When considering the program costs of all funders, for every $1 invested, the 

initial $1 investment plus an additional $0.40 are lost. Moreover, for every $1 the federal 

government invests, the federal government alone loses that initial $1 investment as 

well as an additional $0.06. 

In the medium-term scenario, YouthBuild AmeriCorps participants and government 

realize a combined return of $10.05 for every $1 of federal government investment. 

Moreover, for every $1 of total investment in the YouthBuild AmeriCorps program from 

all funders, $5.39 is return to both society and government combined.6 

5 ROIs can be expressed in percentages or as ratios, such as in this study. Although not shown as a ratio in 

the results, the ROIs in this study show the amount of return for every $1 invested. 

6 The funder groups whose investment is included in this calculation are the federal government (i.e., 

AmeriCorps and other federal sources), state and local governments, and other non-government entities. 
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Return on Investment Study: 

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When considering only the federal government return for every $1 of federal 

investment, the federal government realizes $1.87 in return. 

In the long-term scenario, the ROI for total benefits per federal dollar, total benefits per 

funder dollar, and federal government benefits per federal dollar are $17.97, $9.58, and 

$3.37, respectively. Namely, for both the medium- and long-term scenarios, all the ROI 

calculations are positive where all funders realize a return on their investment in the 

YouthBuild AmeriCorps program. 

The magnitude and direction of the ROI calculations are driven by several factors: 

• YouthBuild AmeriCorps participants’ strong secondary education and 

employment outcomes. For the most recent program, YouthBuild data indicated 

that 85 percent of YouthBuild AmeriCorps participants had less than a high 

school education prior to program entry. With regards to education outcomes, 

The Center for Youth and Communities (2019) reported that of YouthBuild 

AmeriCorps program completers that did not have a high school diploma or 

equivalency pre-service, 67.8 percent obtained one of these secondary 

credentials post-service. This ROI analysis estimated that due to participating and 

serving in the YouthBuild AmeriCorps program, an additional 441 YouthBuild 

AmeriCorps participants completed their secondary education. According to 

the U.S. Bureau of Labor Statistics (2020), gains in educational attainment— 

especially obtaining a high school diploma or equivalent—translate to 

decreased unemployment and higher earnings. The Center for Youth and 

Communities (2019) also reported 72.5 percent of YouthBuild AmeriCorps 

program completers were placed in a job post-service. Based on this finding, this 

ROI analysis estimated that an additional 320 YouthBuild AmeriCorps program 

completers became employed due to participating and serving in the 

YouthBuild AmeriCorps program. Therefore, the completion of secondary 

credentials through the YouthBuild AmeriCorps program plays a crucial part in 

driving YouthBuild AmeriCorps participants’ employment gains. The completion 

of a high school diploma or equivalent not only leads to increased employment 

but also additional earnings. This analysis calculated that YouthBuild AmeriCorps 

participants who were unemployed pre-service but employed post-service 

experienced a $26,000 increase in per-person pre-tax annual earnings, which 

stemmed from their improved employment. 

• Medium- and long-term accumulation of benefits. In the short-term, the three 

ROI calculations are negative because only one year of post-program 

employment and earnings gains are factored in while the entire program cost is 

considered. Additionally, the short-term scenario does not include any lifetime 

benefits in terms of reduced spending on corrections, public assistance, and 

social insurance or increased tax revenue. As these benefits accumulate over 

time, the analysis shows positive returns. This is indicated by the ROI results in the 

medium- and long-term scenarios (15 and 30 years post-program, respectively). 
ES 12-

 

 

 

 

 

 

 

 

Return on Investment Study: 

YouthBuild AmeriCorps 

Government funding serves as a catalyst for 

private funding of evidence-based social 

services programs. For the ROI calculations of 

1) total benefits per federal dollar and 2) total 

benefits per funder dollar, AmeriCorps’s 

requirement of match funding also contributed 

to the magnitude of outcomes. Federal 

government funding of the YouthBuild 

AmeriCorps program, specifically, serves as a 

catalyst for private and other government 

funding. This additional combined private and 

non-AmeriCorps federal government funding— 

amounting to $8.9 million for YouthBuild 

AmeriCorps for the most recent program year— 

allowed the YouthBuild AmeriCorps program to 

Federal Funding as a 

Catalyst for Other Funding 

AmeriCorps funding of the 

YouthBuild AmeriCorps program 

serves as a catalyst for private 

and other government funding. 

The additional private and nonAmeriCorps federal government 

funding—amounting to $8.9 

million allowed the YouthBuild 

AmeriCorps program to enroll 

and serve more participants 

resulting in a greater impact. 

enroll and serve more participants than otherwise would have been served under the 

federal funding alone. Though it may not impact the ROI, because it is a per unit metric, 

match funding leads to greater investment in the YouthBuild AmeriCorps program and 

thus to a greater impact as more individuals are served. 
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Return on Investment Study: 

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Introduction 

AmeriCorps contracted with ICF Incorporated, LLC (hereafter ICF) to explore and 

quantify the return on investment (ROI) of several programs that rely on national 

service—specifically AmeriCorps—as a major resource to sustain operations. ROI 

analyses measure the performance of programs and build the base of evidence for 

future resource allocation decisions. ROI study results demonstrate the value of 

AmeriCorps programming to relevant stakeholders. 

This project, for Fiscal Year 2021, began with a comprehensive literature review and 

preliminary assessments of whether ROI analyses were feasible for five national service 

programs. These feasibility studies included thorough reviews of these programs’ recent 

evaluations, detailed logic models, proposed ROI analysis methodologies for each 

program, and a scorecard mechanism that determined the viability of conducting an 

ROI analysis for each selected program. 

Upon completion of five feasibility studies, AmeriCorps selected four programs to be the 

subject of ROI studies: Habitat for Humanity AmeriCorps, Washington Conservation 

Corps, YouthBuild AmeriCorps, and Birth & Beyond’s Home Visitation Program. This ROI 

study measures the benefits of the YouthBuild AmeriCorps program against its costs 

based on the analytical approach and data sources specified in its respective 

feasibility study. 

This study is organized into five sections: 

• Program Description describes the program’s design, activities, and objectives, 

along with the role that national service (specifically AmeriCorps) plays in its 

operation. The section also provides a brief history of past evaluations, outlines 

the factors that made this program a strong selection for an ROI study, 

underscores the population this program serves, and identifies a potential set of 

comparable ROI estimates for the YouthBuild AmeriCorps program. 

• ROI Methodology outlines how this analysis used various data sources to 

monetize benefits derived from the YouthBuild AmeriCorps program, describes its 

associated program costs, and explains how opportunity costs were calculated. 

• Benefits, Forgone Benefits (opportunity costs), Program Costs, and ROI Results 

provides a detailed description of the program benefits, forgone benefits 

(opportunity cost), and program costs that are inputs into the ROI analyses and 

presents the results of the three ROI calculations across different assumptions. 

• Recommendations for Further Research explores ways AmeriCorps and others 

could further build the evidence base for this program and similar programs, 

including how to address limitations of this study. 

• Conclusion summarizes key points from the ROI study overall. 
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Return on Investment Study: 

YouthBuild AmeriCorps 

Program Description 

YouthBuild USA (YouthBuild) is a national youth leadership program designed to 

improve education and employment outcomes for opportunity youth. Opportunity 

youth are economically disadvantaged youth aged 16 to 24 who are neither in school 

nor employed. The goal of the program is to help these youth attain high school 

diplomas or high school equivalency (HSE) credentials, obtain occupational skills and 

experience, develop leadership skills, and deepen their commitment to service and 

engagement in their communities. YouthBuild serves over 8,000 individuals each year 

through 233 local programs across 46 U.S. states. It primarily provides hands-on 

vocational training in construction related to building and rehabilitating affordable 

housing in low-income neighborhoods. YouthBuild recently expanded its service stream 

to include skill development in other in-demand industries such as health care, 

computer technology, hospitality, digital services, and environmental services. The 

program also offers case management services, counseling, and leadership 

development opportunities to program participants. 

YouthBuild has received AmeriCorps funding since 1994 and—for a subset of YouthBuild 

programs—program participants are, themselves, AmeriCorps members.7 YouthBuild 

AmeriCorps programs enroll over 2,500 opportunity youth as AmeriCorps State and 

National members annually across 65 U.S.-based programs. They directly participate in 

the YouthBuild program and, as AmeriCorps members, earn education awards upon 

program completion.8 In this way, these AmeriCorps State and National members are 

both service providers and program participants. They provide services such as building 

affordable housing and community assets. They also benefit as program participants 

from YouthBuild’s support toward attaining high school diplomas or HSE credentials, 

gaining job skills in high-demand employment sectors, and developing leadership skills. 

YouthBuild also engages AmeriCorps VISTA members to support capacity building 

efforts. YouthBuild AmeriCorps VISTA members do not directly participate in the 

YouthBuild program. Their activities include grant proposal writing, data analysis, 

program development, and fostering partnerships with other organizations to 

strengthen YouthBuild AmeriCorps’s program service offerings.9 Additionally, YouthBuild 

engages AmeriCorps State and National members who do not participate in the 

YouthBuild program. These individuals still perform services in local communities—such 

as building affordable housing—and receive an education award post-service. 

7 YouthBuild. (2020, October 28). The YouthBuild AmeriCorps Partnership. Retrieved from 

https://youthbuild.org/our-approach/youthbuild-usa/americorps/ 

8 AmeriCorps State and National members are eligible for a Segal AmeriCorps Education Award upon 

successful completion of their service term that can be used to pay current educational expenses or to 

repay qualified student loans. For more information about this AmeriCorps education award, please see 

https://americorps.gov/members-volunteers/segal-americorps-education-award. 

9 YouthBuild. (2020, October 27). AmeriCorps VISTA. Retrieved from https://youthbuild.org/ourapproach/youthbuild-usa/americorps-vista/ 
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Return on Investment Study: 

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Due to data availability, the focus of this ROI analysis is on the benefits derived from 

and the program costs associated with AmeriCorps State and National members who 

are also YouthBuild program participants. These individuals (hereafter YouthBuild 

AmeriCorps participants) are YouthBuild AmeriCorps members themselves and they 

also receive YouthBuild program services and supports directly. Any AmeriCorps 

members, costs, and benefits associated with the VISTA program are not included in this 

analysis. 

Population Served 

Regarding the population served, the YouthBuild AmeriCorps program serves individuals 

who are program participants as well as low-income communities nationwide. For the 

September 2019 to August 2020 program year, there were 1,614 YouthBuild AmeriCorps 

participants who received YouthBuild program services. The demographic and 

socioeconomic characteristics of this population are listed in Table 1. Specifically, these 

YouthBuild AmeriCorps participants were all between the ages of 16 and 24, 44 percent 

identified as Black or African American and 31 percent identified as Hispanic, 

61 percent were male, and 86 percent indicated they were economically 

disadvantaged. With regards to their level of education prior to program entry, 85 

percent had less than a high school education while 15 percent completed their high 

school education. 

Table 1. Demographic and Socioeconomic Characteristics of YouthBuild AmeriCorps 

Participants for Most Recent Program Year 

Demographic / Socioeconomic Characteristic 

Number of YouthBuild AmeriCorps Participants 

Count 

1,614 

Percent (%)* 

100% 

Age 

16-20 1,272 79% 

21-24 320 20% 

Unknown 22 1% 

Gender 

Female 626 39% 

Male 977 61% 

Other 11 1% 

Race/Ethnicity** 

American Indian or Native Alaskan 36 2% 

Asian or South Asian 91 6% 

Black or African American 712 44% 

Hispanic, Latinx, or Spanish origin 504 31% 

Native Hawaiian or Other Pacific Islander 5 0% 

Other race or origin 32 2% 
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Return on Investment Study: 

YouthBuild AmeriCorps 

Demographic / Socioeconomic Characteristic Count Percent (%)* 

White 386 24% 

Education Level Pre-Program 

Less than High School 1,372 85% 

High School 242 15% 

Economically Disadvantaged 

Yes 1,393 86% 

No 221 14% 

Parent or Primary Caregiver 

Parent 193 12% 

Primary Caregiver 17 1% 

Both 36 2% 

Neither 1,367 85% 

Unknown 1 0% 

Homeless 

Currently 68 4% 

In the Past Year 104 6% 

Neither 1,279 79% 

Unknown 163 10% 

Foster Care 

Currently 46 3% 

Aged Out or No Longer in Foster Care 76 5% 

Never in Foster Care 1,215 75% 

Unknown 277 17% 

Source: YouthBuild 

*Numbers may not sum due to rounding. 

**The percentages for “Race/Ethnicity” sum up to over 100 percent because participants could have 

selected multiple response options. 

YouthBuild AmeriCorps members also serve low-income urban and rural communities 

nationwide. These are economically-distressed areas with high rates of poverty and 

median annual household incomes significantly below that at the national-level. 

Specifically, in 2018, the YouthBuild AmeriCorps program served 47 urban and 23 rural 

communities. The average poverty rate of sites by zip-code was 27.1 percent, almost 

double the national average (i.e., 14.6 percent). The average median annual 

household income of these communities served for this year was $40,186 which is 

35 percent lower than the national median of $61,372. These areas predominantly have 

increasing rates of homelessness, lower high school graduation rates, and lack 
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Return on Investment Study: 

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affordable housing options. Thus, YouthBuild AmeriCorps members serve neighborhoods 

with heightened housing instability and homelessness to help these populations emerge 

from poverty and experience improved well-being. 

YouthBuild AmeriCorps Evaluation History 

An evaluation by the Center for Youth and Communities at Brandeis University (The 

Center for Youth and Communities, 2019) explored how the experience and outcomes 

of YouthBuild AmeriCorps participants differed across three types of YouthBuild 

AmeriCorps programs through a comparative assessment. The three YouthBuild 

AmeriCorps service delivery models examined were: 

• Those providing HSE programs 

• Those providing a high school diploma 

• Those providing a combination of a high school diploma and HSE credentials 

The outcomes evaluated included core program measures, such as high school 

diploma/HSE credential attainment and post-service job placement. In addition to 

looking at outcomes for each program type separately, the evaluation also analyzed 

outcomes across program types to provide results that are representative of YouthBuild 

AmeriCorps programs generally. 

This study selected a representative sample of 40 YouthBuild AmeriCorps programs 

using a stratified random sampling process and data from the Data YouthBuild (DYB) 

reporting system. The sampling process considered several criteria: the type of 

credential offered by the program (HSE or diploma), the experience level of the 

program (newer/less experienced and older/more experienced programs), and the 

program size (larger and smaller programs based on the number of AmeriCorps slots). 

From these 40 programs, a subset of 20 sites was selected for a more intensive study. This 

study leveraged data from the DYB reporting system, participant surveys, telephone 

interviews, and site visits. The participant outcomes analysis included DYB reporting 

system data on 950 YouthBuild AmeriCorps participants from the 20 sample sites. 

Table 2. Core Program Measures by Program Type and Overall* shows participant outcomes 

across the core program measures by program type and overall. Results indicate that 

of the YouthBuild AmeriCorps participants who completed the YouthBuild AmeriCorps 

program, overall: 

• 72.5 percent of program completers were placed in a job post-service 

• 12.8 percent of program completers enrolled in post-secondary education 

post-service 

• 59.9 percent completed the program and earned an education award 

post-service 

Additionally, 67.8 percent of YouthBuild AmeriCorps participants who completed the 

YouthBuild AmeriCorps program—regardless of service delivery model—and who did 
6 

 

 

 

 

 

 

- -

Core Program Measures 

Program Type 

HSE only Diploma only 

Combined 

HSE/Diploma Overall 

N % N % N % N % 

Program Completion** 304 89.5% 241 84.2% 265 80.4% 810 84.9% 

Secondary Credential 

Attainment 

(Diploma/HSE)*** 

245 56.3% 179 82.1% 182 69.2% 606 67.8% 

Job Placement*** 271 81.2% 203 60.1% 213 73.2% 687 72.5% 

Post-Secondary Education 

Enrollment*** 272 11.4% 203 19.7% 213 8.0% 688 12.8% 

Earned Education Award 

Receipt*** 272 57.4% 203 73.4% 213 50.2% 688 59.9% 

 

 

Return on Investment Study: 

YouthBuild AmeriCorps 

not have a high school diploma or equivalency pre-service—obtained one upon 

program completion. 

Table 2. Core Program Measures by Program Type and Overall* 

Source: The Center for Youth and Communities (2019) 

*Asterisks (*) indicates statistically significant differences between program types: *p≤0.05, **p≤0.01, 

***p≤0.001.

Selection of YouthBuild AmeriCorps for the AmeriCorps ROI Project 

ICF recommended making YouthBuild AmeriCorps the subject of an ROI study due to 

the availability of data on costs and benefits and to learn more about the impact of 

the program’s design in which AmeriCorps members are also program participants. 

Additionally, the YouthBuild AmeriCorps program targets and recruits opportunity youth, 

an at-risk population that AmeriCorps is actively engaging in national service projects. 

This is a population with significant need and for whom a change in trajectory—in terms 

of educational and career development assistance—could result in a pathway out of 

poverty into productive and responsible adulthood. 

Comparable ROI Estimates 

ROI studies of YouthBuild and other programs that offer similar services provide context 

for the resulting ROI estimates of the YouthBuild AmeriCorps program. 

Researchers have previously estimated the return on investment for YouthBuild 

programs. For instance, in 2011, the Minnesota YouthBuild Coalition commissioned an 

ROI analysis of the state’s YouthBuild program, measuring the ROI to the state of 

Minnesota based on direct benefits and costs over a two-year period.10 It calculated 

10 Waisanen, N. (2011). The Minnesota YouthBuild Program: Costs and Benefits to the State of Minnesota 

(Rep.). Retrieved from https://mn.gov/deed/programs-services/office-youth-development/youthprograms/youthbuild.jsp 
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Return on Investment Study: 

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an ROI to the state government using outcomes data from a cohort of 398 YouthBuild 

participants up to four years after program enrollment. The benefits measured for this 

ROI analysis included the increase in state tax revenue from income, sales, and excise 

taxes associated with the estimated increase in wages for YouthBuild participants 

post-program. The analysis also estimated savings to the state government due to 

decreased incarceration. The costs used in the analysis included state funding for only 

the 398 YouthBuild participants. Results indicated that the ROI for YouthBuild in 

Minnesota is $3.20 for every dollar of cost over a two-year period. 

Miller et al. (2018) studied YouthBuild using an ROI study and a randomized controlled 

trial evaluation that assessed program impacts on YouthBuild members’ education, 

employment, and earnings outcomes.11 The ROI study included outcomes from 

YouthBuild AmeriCorps and other YouthBuild members combined. Thus, results are 

representative of all YouthBuild participants, not just YouthBuild AmeriCorps 

participants. Benefits included the value of community construction work completed by 

YouthBuild participants, participants’ education and employment gains, reduced 

public assistance use, increased tax revenue, and decreased criminal activity for the 

years following program exit. The ROI analysis also estimated program costs per 

participant. Given the lack of long-term outcomes data, results for this limited ROI 

analysis were deemed largely inconclusive by the study’s authors. Yet, short-term results 

indicate that during program participation, the ROI was $0.46 for every dollar invested. 

A few other studies have analyzed benefits and costs for programs comparable to 

YouthBuild. For example, Schochet et al. (2006)12 estimated the benefits derived from 

Job Corps. Jobs Corps is a voluntary U.S. Department of Labor program that offers 

education, counseling, and vocational training services to disadvantaged youth aged 

16 to 24 years old. Schochet et al. (2006) included benefits such as those related to 

earnings and fringe benefits, reduced childcare costs, increased taxes, decreased use 

of other programs and services, and reductions in crime. Results indicated that for older 

program participants (aged 20 to 24), earnings gains persisted for five to ten years 

which led to net benefits to society of roughly $17,000 per participant. This resulted in an 

ROI of $2.11 for every dollar spent on the program. However, the estimated impacts in 

years 5 to 10 for the full sample of Job Corps participants (all age groups) are all near 

zero and none were statistically significant. This led to the costs to society exceeding the 

program’s benefits to society by about $10,300 per participant, resulting in an ROI of 

$0.26 for every dollar spent on the program. 

11 Miller C., Cummings D., Millenky M., Wiegand A., & Long D. (2018). Laying the Foundation: Four-Year 

Results from the National YouthBuild Evaluation. (Rep.). MDRC. Retrieved from 

https://www.mdrc.org/sites/default/files/YouthBuild_Final_508%20compliant.pdf 

12 Schochet, P. Z., Burghardt, J., & McConnell, S. (2006). National Job Corps Study and Longer-Term FollowUp Study: Impact and Benefit-Cost Findings Using Survey and Summary Earnings Records Data. (Rep.). 

Mathematica Policy Research, Inc. Retrieved from 

https://wdr.doleta.gov/research/FullText_Documents/National%20Job%20Corps%20Study%20and%20Longe 

r%20Term%20Follow-Up%20Study%20-%20Final%20Report.pdf 
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Return on Investment Study: 

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Another comparable program is the National Guard Youth ChalleNGe program. This 

program serves recent high school dropouts and focuses on high school completion, 

occupational skill development, leadership, and community service. The program is set 

in a quasi-military environment. In 2012, RAND Corporation conducted an ROI analysis 

on this program.13 It estimated that for every dollar expended on the program, the 

benefits (such as those derived from increased education and employment of program 

participants) generated $2.66 in return, over the estimated working life of 

program participants. 

ROI Methodology 

The methodology for the YouthBuild AmeriCorps ROI study consists of the following 

components: 

1. Measuring and monetizing program benefits. This includes using data from a 

previous evaluation and other third-party sources to determine the benefits to 

YouthBuild AmeriCorps participants and government. The benefits realized 

across these two stakeholder groups include: 

• YouthBuild AmeriCorps participants. YouthBuild AmeriCorps participants 

benefit from: 

a) Increased earnings due to increased employment 

b) Increased lifetime earnings due to increased post-secondary education 

derived from the use of education awards 

• Government. Government benefits from income, Social Security, and 

Medicare tax revenue from YouthBuild AmeriCorps participants’ increased 

earnings, and sales tax revenue from the increased economic activity that 

results from those increased earnings. Government also benefits from tax 

revenue from YouthBuild AmeriCorps participants’ education awards. Finally, 

government benefits from reduced spending on corrections, public 

assistance, and social insurance and increased tax revenue associated with 

the increased educational attainment of YouthBuild AmeriCorps participants 

that is derived from the program as well as their use of education awards 

post-service. 

This ROI analysis monetized YouthBuild AmeriCorps program benefits in 

2020 dollars. 

2. Estimating forgone benefits (opportunity costs). This ROI analysis estimated two 

types of forgone benefits. The first was the professional opportunity cost to 

YouthBuild AmeriCorps members for their period of national service, during which 

they could have earned more pay by doing other work. This included both the 

13 Perez-Arce, F., Louay, C., Loughran, D.S., & Karoly, L. A. (2012). Meeting the Challenge: The Economic 

Return on Investment in the National Guard Youth ChalleNGe Program. Santa Monica, CA: RAND 

Corporation. Retrieved from https://www.rand.org/pubs/research_briefs/RB9641.html. 
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Return on Investment Study: 

YouthBuild AmeriCorps 

forgone earnings of YouthBuild AmeriCorps members and the associated tax 

revenue for government. The second was the investment opportunity cost for 

YouthBuild AmeriCorps program funding that could have been used for other 

purposes. The analysis estimated the investment opportunity cost for both 

government and private funders based on the forgone return of investing 

program funds into U.S. Treasury bonds. The rates of return for U.S. Treasury bonds 

provide a market-based estimate of return for low-risk investments. For the ROI 

estimates, the analysis subtracted forgone benefits from program benefits to 

calculate net benefits. The net benefits were then compared to program costs. 

3. Assessing program costs. YouthBuild provided YouthBuild AmeriCorps program 

costs for the September 2019 to August 2020 program year. Only the program 

costs that support YouthBuild AmeriCorps State and National members who 

directly participate in the YouthBuild AmeriCorps program are included in this 

ROI analysis. They exclude funds for YouthBuild AmeriCorps VISTA members who 

assist with capacity building and YouthBuild AmeriCorps State and National 

members who do not participate in the YouthBuild program since benefits for 

those members are not included in the ROI. Thus, the program costs included in 

this ROI are comprised of: 

• The expected education award amount YouthBuild AmeriCorps participants 

will collectively use post-service 

• The AmeriCorps State and National grant supplied by AmeriCorps 

• The match funds received from private as well as local, state, and other 

federal government stakeholders associated with the AmeriCorps State and 

National grant 

4. Calculating the ROI. The ROI analysis includes three ROI calculations, each 

assessed under three scenarios representing different assumptions about the 

persistence of program outcomes: 

• Total benefits per federal dollar 

• Total benefits per funder dollar14 

• Federal government benefits per federal dollar 

This analytical framework includes only those benefits that could be reasonably 

monetized given the available data, and that likely would not have occurred without 

the YouthBuild AmeriCorps program. 

Figure 1 shows how YouthBuild AmeriCorps program activities can result in YouthBuild 

AmeriCorps participant and government benefits. 

14 The funder groups whose investment is included in this calculation are the federal government (i.e., 

AmeriCorps and other federal sources), state and local governments, and other non-government entities. 
YouthBuild 

AmeriCorps 

Program Activities 

Government Benefits 

YouthBuild AmeriCorps Participant Benefits 

YouthBuild 

AmeriCorps 

Participant 

Impacts 

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Return on Investment Study: 

YouthBuild AmeriCorps 

Figure 1. Benefits among YouthBuild AmeriCorps Participants and Government Derived 

from YouthBuild AmeriCorps 

Available data established that YouthBuild AmeriCorps participants enjoy earnings 

impacts as a result of serving with and participating in the YouthBuild AmeriCorps 

program. However, the data do not establish the duration of those benefits. To address 

a range of possible durations for those benefits as well as lifetime benefits, the analysis 

includes three scenarios:15 

• Short-term. This scenario assumes short-term earnings impacts. The assumption is 

that earnings impacts are limited to a single year after program exit. This scenario 

also assumes no lifetime benefits are realized. 

• Medium-term. This scenario assumes a longer duration of earnings impacts. The 

assumption is that earnings impacts last 15 years. A 3 percent discount rate is 

applied each year to represent net present value in 2020 dollars.16 This scenario 

also assumes only half of the net present value of lifetime benefits is realized. 

• Long-term. This scenario assumes sustained earnings impacts throughout 

YouthBuild AmeriCorps participants’ working years. The assumption is that 

earnings impacts last 30 years. A 3 percent discount rate is applied each year to 

represent net present value in 2020 dollars. This scenario also assumes the entire 

net present value of lifetime benefits is realized. 

The long-term scenario (i.e., 30 years of sustained employment and earnings benefits) 

represents roughly a lifetime of working years for a given person while the short-term 

scenario assumes benefits for only the year after program participation or service is 

completed. The medium-term scenario (i.e., 15 years of sustained employment and 

earnings benefits) represents the midpoint between these two scenarios. 

15 These three scenarios consider varying durations of how long increased employment and earnings 

benefits last for YouthBuild AmeriCorps participants. They also consider varying durations for lifetime benefits 

that stem from the YouthBuild AmeriCorps program. For example, lifetime benefits in terms of decreased 

public assistance, social insurance, and corrections costs result from YouthBuild AmeriCorps participants’ 

higher educational attainment post-service. The analysis estimates lifetime benefits differently in the three 

scenarios. Specifically, the net present value of the entire lifetime benefit is realized for the long-term 

scenario, half of the net present value of the lifetime benefit is realized for the medium-term scenario, and 

no lifetime benefit amount is realized for the short-term scenario. 

16 The Office of Management and Budget (1992) defines a discount rate as, “The interest rate used in 

calculating the present value of expected yearly benefits and costs” (p. 18). Regarding the 3 percent 

discount rate, see Office of Management and Budget (2003). 
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Return on Investment Study: 

YouthBuild AmeriCorps 

Monetizing Program Benefits, Forgone Benefits (Opportunity Cost), and 

Program Costs 

This analysis monetized an array of benefits and included YouthBuild AmeriCorps 

program costs and expected opportunity costs, all in 2020 dollars, to assess the ROI of 

the YouthBuild AmeriCorps program. Additional details on the methodology employed 

and the calculations used for this analysis are in Appendix B. 

Program Benefits 

Outcomes of the YouthBuild AmeriCorps program results in monetizable benefits to 

YouthBuild AmeriCorps participants and government. Table 3 summarizes these benefits 

and data sources by stakeholder group. 

Table 3. Benefits Realized from the YouthBuild AmeriCorps Program by Stakeholder 

Group 

Stakeholder Group Benefits Data Sources* 

YouthBuild 

AmeriCorps 

Participants 

• Additional earnings from 

increased employment 

• Additional lifetime earnings 

from increased educational 

attainment as a result of 

education awards 

• The Center for Youth and 

Communities (2019) 

d17 • YouthBuil

• Current Population Survey Annual 

Social and Economic Supplement 

(ASEC; U.S. Census Bureau, n.d.) 

• Consumer Price Index (CPI; U.S. 

Bureau of Labor Statistics, n.d.) 

• Trostel (2015) 

• AmeriCorps (n.d.) 

• Pell Institute (2011) 

• Pell Institute (2020) 

• Cataldi et al. (2018) 

• Hinz et al. (2017) 

• U.S. Bureau of Labor Statistics 

(2021) 

• National Center for Education 

Statistics (NCES) (2019) 

• NCES (2020) 

17 Unless otherwise cited, all information provided directly by YouthBuild for this report was received through 

ICF’s personal communication with YouthBuild in 2021. 
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Return on Investment Study: 

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Stakeholder Group Benefits Data Sources* 

Government • Tax revenue from increased 

earnings by YouthBuild 

AmeriCorps participants 

post-program and sales tax 

revenue from the induced 

increased economic activity 

• Tax revenue from education 

awards 

• Reduced lifetime spending 

on corrections, public 

assistance, and social 

insurance from increased 

educational attainment as a 

result of education awards 

• Consumer Expenditure Survey 

(U.S. Bureau of Labor Statistics, 

2021) 

• Federal and state income tax 

rates (El-Sibaie, 2019; Loughead, 

2020) 

• Social Security tax rate (Social 

Security Administration (SSA), 

2020) 

• Medicare tax rate (SSA, 2020) 

• Combined state and average 

local sales tax rates (Cammenga, 

2020) 

• Lifetime tax revenue from 

increased educational 

attainment as a result of 

education awards 

• Trostel (2015) 

• CPI (U.S. Bureau of Labor 

Statistics, n.d.) 

• AmeriCorps (n.d.) 

• American Community Survey 

(2019) (ACS; U.S. Census Bureau, 

n.d.) 

* Usage of these data sources is discussed in more detail in subsequent sections. Tax rates used on 

YouthBuild AmeriCorps participants’ increased earnings, their forgone earnings, and their education 

awards are national averages. See Appendix B for a detailed discussion. 

Additional Earnings from Increased Employment (Benefit to YouthBuild 

AmeriCorps Participants) 

YouthBuild AmeriCorps participants benefit from skills gained during their service term 

which position them for improved employability, particularly in the housing construction 

sector. YouthBuild AmeriCorps participants also benefit from the completion of a high 

school diploma or equivalency, as part of their national service, which also leads to 

improved employment outcomes. Specifically, the Center for Youth and Communities 

(2019) found that of YouthBuild AmeriCorps program completers that did not have a 

high school diploma or equivalency pre-service, 67.8 percent obtained one of these 

credentials by the end of their service term. According to the U.S. Bureau of Labor 

Statistics (2020), these gains in educational attainment translate to decreased 

unemployment. Thus, the completion of secondary education credentials through the 

YouthBuild AmeriCorps program can in part drive the employment gains of YouthBuild 

AmeriCorps participants. 
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The Center for Youth and Communities (2019) also reported that of YouthBuild 

AmeriCorps program completers, 72.5 percent obtained a job post-service.18 Moreover, 

the study authors provided data that indicated that of program completers, 

26.7 percent reported they were employed at some point during the six months prior to 

starting the YouthBuild AmeriCorps program. The latter metric does not represent the 

employment rate of YouthBuild AmeriCorps participants immediately before program 

enrollment. However, it serves as a conservative proxy for this population’s employment 

prior to participating in the program. Using the 26.7 percent as this populations’ 

pre-service employment rate in this ROI analysis assumes that if YouthBuild AmeriCorps 

participants were employed at any time during the six months before the program, they 

would likely be able to secure a job without participating or serving in the YouthBuild 

AmeriCorps program. The difference between these two percentages (i.e., 

45.8 percent) approximates the gain in employment attributable to participating in the 

YouthBuild AmeriCorps program. 

To estimate employment impacts, the analysis applied the 45.8 percent to the number 

of YouthBuild AmeriCorps participants who completed the YouthBuild AmeriCorps 

program during the September 2019 to August 2020 program year. The product 

estimated the number of YouthBuild AmeriCorps participants who became employed 

due to participation in the YouthBuild AmeriCorps program. 

To calculate the additional earnings realized due to this employment gain, the analysis 

followed these steps: 

1. Calculated YouthBuild AmeriCorps participants’ per-person post-service annual 

earnings using average hourly wage data provided by YouthBuild 

2. Multiplied the post-service annual earnings by the estimated number of 

additional YouthBuild AmeriCorps participants employed due to program 

participation 

Following these steps conservatively estimates the aggregate pre-tax earnings of 

YouthBuild AmeriCorps participants who became employed due to program 

participation after program exit. The pre-tax earnings were reduced by estimated taxes 

and discounted based on the short-term, medium-term, and long-term scenarios in net 

present 2020 dollars. These cumulative post-tax earnings estimate the disposable 

income earned by YouthBuild AmeriCorps participants after participating in the 

YouthBuild AmeriCorps program. 

18 It is important to note that The Center for Youth and Communities (2019) did not indicate when job 

placement data was collected from study participants (e.g., upon program completion, one year postservice, etc.). In speaking with the study authors, ICF verified that time was not a variable considered in this 

evaluation’s methodology. In other words, this employment outcome was not tracked in terms of either 

time from program entry or time from program exit. The authors noted that time from program completion 

to final data collection could have ranged from one to 2.25 years. Given this, the analysis made a 

conservative assumption that the number of additionally-employed YouthBuild AmeriCorps participants 

would be spread equally across the 27-month post-program period. See Appendix B for further details. 
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Additional Lifetime Earnings from Increased Educational Attainment as a Result 

of Education Awards (Benefit to YouthBuild AmeriCorps Participants) 

YouthBuild AmeriCorps participants serve in part time positions and do not receive living 

allowances during their service term. In addition to not getting a living allowance— 

which is not required for less than full time members —YouthBuild AmeriCorps 

participants are not paid for their work done in the community (e.g., construction, etc.). 

However, all YouthBuild AmeriCorps participants that complete the program receive 

education awards after program exit. Results from The Center for Youth and 

Communities (2019) indicate that 59.9 percent of YouthBuild AmeriCorps program 

participants complete the program and earned an education award. This amount is 

taxable, so the post-tax amount was used to calculate benefits to YouthBuild 

AmeriCorps participants. 

AmeriCorps members in general—as documented in Friedman et al. (2016)—can use 

their education awards to a) pay for additional educational attainment or b) repay 

student loans. However, all YouthBuild AmeriCorps participants during the most recent 

program year had either a high school education or less prior to program entry. Thus, 

upon completing the YouthBuild AmeriCorps program, these individuals would not have 

had any outstanding student loans because they have not yet completed collegelevel courses nor received a post-secondary degree. Given this, this ROI analysis 

assumes all 59.9 percent of YouthBuild AmeriCorps program completers used their 

education award to pursue post-secondary education. 

With this assumption, this ROI analysis estimated the expected increased lifetime 

earnings of YouthBuild AmeriCorps participants attributable to the use of education 

awards to pay for additional post-secondary schooling. The analysis used the 

education award amount for the 2020 to 2021 program year—discounted to net 

present 2020 dollars and provided by AmeriCorps—to estimate the post-tax education 

award amount that YouthBuild AmeriCorps participants used to pay for post-secondary 

education. The analysis then estimated the value of the post-secondary educational 

attainment attributable to the education awards in terms of lifetime earnings (Trostel, 

2015). These estimated additional post-tax lifetime earnings are included as a benefit to 

YouthBuild AmeriCorps participants. 

Tax Revenue Generation and Reduced Spending (Benefits to Government) 

The benefits of YouthBuild AmeriCorps participants result in benefits to the various levels 

of government. 

Benefits to Government from Increased Earnings by YouthBuild AmeriCorps Participants 

Government benefits from increased earnings by YouthBuild AmeriCorps participants. 

Those benefits include: 
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• Income tax revenue from increased YouthBuild AmeriCorps participant earnings 

post-service. Federal income taxes, state income taxes, Medicare taxes, and 

Social Security taxes were estimated for the additional pre-tax earnings of 

YouthBuild AmeriCorps participants based on 2020 rates. For both federal and 

state income taxes, the analysis estimated proportional tax rates representing 

the share of earnings paid in taxes. 

To estimate proportional tax rates that reflect federal- and state-level progressive 

tax brackets and standard deductions, the amount of total taxes paid was 

divided by the pre-tax earnings per YouthBuild AmeriCorps participant. For the 

state income tax rate, the analysis weighted individual state-level rates by their 

respective state populations to estimate a weighted national tax rate to apply 

program-wide. A weighted national tax rate was used because the YouthBuild 

AmeriCorps program operates nationwide. Also, YouthBuild AmeriCorps 

participants may disperse to various locations following their service terms and 

continue to migrate over the course of their working years. 

• Sales tax revenue from increased economic activity that results from increased 

YouthBuild AmeriCorps participant earnings post-service. To estimate the 

additional sales tax revenue generated due to the additional post-tax earnings 

of YouthBuild AmeriCorps participants, the combined state and average local 

sales tax rate for the U.S.—weighted by states’ populations—was calculated. The 

analysis applied that rate to the estimated taxable expenditures of YouthBuild 

AmeriCorps participants based on their post-service pre-tax earnings using 

Consumer Expenditure Survey data (U.S. Bureau of Labor Statistics, 2021).19 The 

resulting product was then applied to the share of post-tax earnings attributable 

to program participation to estimate state and local government sales tax 

revenue. 

19 To calculate the estimated taxable expenditures, Consumer Expenditure Survey (CES) Table 1203 was 

used from U.S. Bureau of Labor Statistics (2021). This table lists the annual expenditure means by pre-tax 

income tax brackets. Thus, the pre-tax earnings of YouthBuild AmeriCorps participants were used instead of 

their post-tax earnings to calculate this metric. Please visit this site for more details: 

https://www.bls.gov/cex/tables/calendar-year/mean-item-share-average-standard-error.htm#cu-income. 
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Benefits to Government from Increased Educational Attainment by YouthBuild 

AmeriCorps Participants 

Government benefits from increased secondary and post-secondary educational 

attainment by YouthBuild AmeriCorps participants. Those benefits include: 

• Tax revenue from education awards. Education awards provided to YouthBuild 

AmeriCorps participants upon program completion are subject to taxes, resulting 

in additional government revenue. 20 This ROI analysis applied federal income, 

state income, Social Security, and Medicare tax rates to the expected total 

amount of education awards to be given to YouthBuild AmeriCorps participants 

to estimate these additional taxes. Both estimated proportional federal and state 

income tax rates were used. Sales taxes were not estimated for education 

awards because they cannot be used for consumer purchases. 

• Reduced lifetime spending on corrections, public assistance, and social 

insurance from increased educational attainment as a result of education 

awards. The Center for Youth and Communities (2019) found that 67.8 percent of 

YouthBuild AmeriCorps program completers that did not have a high school 

diploma or equivalency pre-service obtained one of these secondary 

credentials post-service. The study also indicated that of YouthBuild AmeriCorps 

program completers, 12.8 percent enrolled in post-secondary education after 

program exit. The additional number of YouthBuild AmeriCorps participants who 

completed secondary and post-secondary schooling translates into reduced 

lifetime spending on public assistance, social insurance, and corrections (Trostel, 

2015). This is because higher educational attainment is associated with less 

dependence on government assistance programs and lower incarceration rates 

(Blagg & Blom, 2018; Harlow, 2003). Because YouthBuild AmeriCorps participation 

increases educational attainment, government spends less. 

The analysis used the expected increase in secondary and post-secondary 

educational attainment for YouthBuild AmeriCorps participants to estimate the 

lifetime government cost savings from Medicaid, SNAP, unemployment 

insurance, worker’s compensation, and corrections. 

• Lifetime tax revenue from increased educational attainment as a result of 

education awards. The last benefit related to YouthBuild AmeriCorps participants 

captured in this ROI study is the lifetime tax revenue generated from 

participants’ post-secondary educational attainment due to use of the 

education award. Here, the estimated increase in YouthBuild AmeriCorps 

participants’ post-secondary educational attainment was paired with the 

expected difference in per-person lifetime taxes for individuals with different 

levels of education as provided by Trostel (2015). This lifetime tax revenue 

20 The tax implications of the AmeriCorps member education award are stated here: AmeriCorps. (n.d.). 

Segal AmeriCorps Education Award. Retrieved from https://americorps.gov/members-volunteers/segalamericorps-education-award 
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includes federal income, state income, property, Social Security, Medicare, and 

sales taxes derived from use of the education award. 

The analysis did not calculate similar lifetime tax benefits related to YouthBuild 

AmeriCorps participants’ gains in secondary education. As noted earlier, a 

substantial portion of YouthBuild AmeriCorps participants complete a high school 

diploma or equivalency during their program participation. The analysis 

considered gains in secondary education to be drivers of the employment gains 

(and the associated increase in earnings) as described in the previous 

“Additional Earnings from Increased Employment” section, although the 

in-service training and skill development may also be a driver of employment 

gains. The tax revenue from these increased earnings was calculated using the 

methods delineated in the Benefits to Government from Increased Earnings by 

YouthBuild AmeriCorps Participants section. Benefits to Government from 

Increased Earnings by YouthBuild AmeriCorps ParticipantsThus, to avoid doublecounting, the analysis only estimated increased lifetime tax revenue based on 

gains in 

post-secondary education. 

Forgone Benefits (Opportunity Costs) 

The analysis estimated forgone benefits of both members and funders because of their 

participation and investment in the YouthBuild AmeriCorps program. These forgone 

benefits were subtracted from the program benefits (shown above) to calculate the 

net benefits of the program. Those net benefits were then compared to program cost 

to calculate the ROI. These forgone benefits are referred to as the professional and 

investment opportunity costs, described below. 

Professional Opportunity Cost to YouthBuild AmeriCorps Participants 

The first opportunity cost was the professional opportunity cost to YouthBuild AmeriCorps 

participants for their period of national service, during which they could otherwise be 

working and earning higher pay. To calculate this, this analysis estimated what 

YouthBuild AmeriCorps participants would have earned if they did not participate in the 

YouthBuild AmeriCorps program. Specifically, this analysis estimated the weighted 

average annual earnings of this group as well as their weighted unemployment rate 

using the demographic distribution of YouthBuild AmeriCorps participants for the most 

recent program year and data from the Current Population Survey’s Annual Social and 

Economic (ASEC) Supplement for March 2019. The YouthBuild demographics included 

were gender, age, race/ethnicity, economically disadvantaged status, and pre-service 

highest level of education. The weighted average annual earnings represent the 

expected earnings of YouthBuild AmeriCorps participants if they were employed, not 

participating in the YouthBuild AmeriCorps program. The weighted unemployment rate 

represents how many of the YouthBuild AmeriCorps participants would have been 

unemployed if they did not participate or serve in the YouthBuild AmeriCorps program. 

These weighted metrics were first used to estimate the portion of YouthBuild AmeriCorps 

program completers who would have been employed and then to calculate the 

aggregate earnings those employed individuals would have earned. 
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Return on Investment Study: 

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Some of the forgone earnings would have been paid in the form of taxes. To 

appropriately allocate opportunity costs between YouthBuild AmeriCorps participants 

and government, the analysis estimated the reduced tax revenue for federal income, 

state income, Social Security, and Medicare taxes. The analysis also estimated the 

reduction in sales tax from reduced consumption. These taxes combined represent 

what the various levels of government are forgoing in tax revenue when these 

individuals decide to serve and participate in the YouthBuild AmeriCorps program 

instead of work. The sum of all forgone taxes and the forgone post-tax earnings of 

YouthBuild AmeriCorps participants is called the total professional opportunity cost. 

It is important to note that in the federal government benefits per federal dollar ROI 

calculation, only federal government (not total) benefits are included. Given this, only 

federal components of the professional opportunity cost (forgone federal income, 

Social Security, and Medicare taxes) are subtracted from all federal government 

benefits for that ROI calculation. 

Investment Opportunity Cost to Funders 

The second opportunity cost used in this ROI analysis was an investment opportunity 

cost. It estimates forgone return if all funds used to support YouthBuild AmeriCorps 

during the most recent program year were invested in U.S. Treasury bonds instead. To 

calculate this, the analysis matched 2019 real interest rates provided by Office of 

Management and Budget (2020) to each of the scenarios in the ROI analysis: shortterm, medium-term, and long-term.21 The rates of return for U.S. Treasury bonds provide 

a market-based estimate of return for low-risk investments. 

The real interest rate for the 3-year maturity was used for the short-term scenario, the 

average between the 10-year and 20-year maturity rates was used as the rate for the 

medium-term scenario, and the 30-year maturity rate was used for the long-term 

scenario. These real interest rates were 1.3, 1.45, and 1.5 percent, respectively. Also, the 

number of time periods elapsed on these bonds equaled the length of the short-term, 

medium-term, and long-term scenarios (1 year, 15 years, and 30 years, respectively). 

These bonds compound bi-annually according to Department of Treasury (n.d.). 

Note that for 1) the federal government benefits per federal dollar and 2) the total 

benefits per federal dollar ROI calculations, the investment opportunity cost subtracted 

from the benefits in these calculations is the forgone accrued interest from investing 

only the federal funds into these U.S. Treasury bonds. This is called the federal investment 

opportunity cost. This is done because these ROI calculations only include federal 

government (not total) program costs. For the other ROI calculation estimated in this 

analysis, the investment opportunity cost subtracted from the benefits realized is the 

forgone accrued interest from investing all YouthBuild AmeriCorps funds (both federal 

and non-federal) into these U.S. Treasury bonds. This is called the total investment 

opportunity cost. See Appendix B for details. 

21 The analysis used 2019 real interest rates for U.S. Treasury bonds because the YouthBuild AmeriCorps 

program year analyzed began in 2019. 
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Program Costs 

The costs for the YouthBuild AmeriCorps program, used for this ROI analysis, include 

federal and required match funding and any other funding used to support program 

operations. The program costs are specific to the YouthBuild AmeriCorps program 

participant cohort whose outcomes are measured in this analysis. Namely, program 

costs included are only those that were used to fund the positions and activities of 

YouthBuild AmeriCorps State and National members who participated in YouthBuild 

AmeriCorps during the September 2019 to August 2020 program year. They are not 

inclusive of program costs associated with YouthBuild AmeriCorps VISTA members who 

served during this same period nor those associated with YouthBuild AmeriCorps State 

and National members who did not participate in YouthBuild AmeriCorps since benefits 

related to these member groups are not included in the ROI analysis. 

Table 4 shows the segmentation of YouthBuild AmeriCorps program costs by funder.22 

The federal funds included the AmeriCorps State and National grant distributed to 

YouthBuild AmeriCorps program sites nationwide. Federal dollars also helped pay for 

the expected education award amounts granted to YouthBuild AmeriCorps 

participants once they completed their service term. Funds provided by state/local 

governments, private entities, as well as from non-AmeriCorps federal agencies 

represent the match funding YouthBuild AmeriCorps received for the program year. 

AmeriCorps (providing both the grant and the expected education award amounts) is 

the leading funder for the YouthBuild AmeriCorps program, sponsoring more than half 

of program costs.23 Moreover, YouthBuild AmeriCorps’s match funding was an amount 

equal to almost 84 percent of AmeriCorps federal funds. This match provides the 

YouthBuild AmeriCorps program with the resources to serve more YouthBuild 

AmeriCorps participants and provide more services than would be otherwise available 

only under the AmeriCorps federal funds. That translates into increased aggregate 

benefits realized across stakeholder groups. 

22 Program cost data were provided by the senior director of impact and learning at YouthBuild. 

23 The education award comes from the National Service Trust. This is a line-item in AmeriCorps’s annual 

budget approved by Congress every year. Thus, the expected education award amounts to be realized 

by YouthBuild AmeriCorps participants post-service is grouped with the AmeriCorps State and National 

grant as both being supplied by AmeriCorps in this analysis. For more information, see 

https://americorps.gov/sites/default/files/documents/CNCS%20FY%202021%20Congressional%20Budget%20 

Justification%20w%20IG%20Message%20%28Final%29_508.pdf. 
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Table 4. YouthBuild AmeriCorps Program Costs by Funder Type 

Funder 

Funding Provided 

for the Program Year ($) 

Percent 

of Total (%) 

AmeriCorps $10,645,325 54.4% 

State/Local Governments 

(i.e., Match Funding) $4,661,442 23.8% 

Private (i.e., Match Funding) $4,198,874 21.5% 

Non-AmeriCorps Federal (i.e., 

Match Funding) $66,839 0.3% 

Total $19,572,480 100.0% 

ROI Study Limitations 

Study limitations include those related to the available data sources and to the ability 

to capture all benefits that stem from the YouthBuild AmeriCorps program. 

Limitations to the Third-Party Evaluation Used 

The Center for Youth and Communities (2019)—which describes program impacts for 

YouthBuild AmeriCorps participants—did not provide data on the pre-service 

employment rate and post-service earnings of YouthBuild AmeriCorps participants. 

However, YouthBuild was able to provide the average earnings for their most recent 

program cohort one year post-program. This data was used to estimate additional 

earnings realized by YouthBuild AmeriCorps participants due to their increased 

employment. Moreover, the study authors were able to provide other supplemental 

data collected during the evaluation that could be used as a proxy for YouthBuild 

AmeriCorps participants’ pre-service employment rate. This data indicated the 

percentage of YouthBuild AmeriCorps program completers who were employed at 

some point during the six months prior to starting the YouthBuild AmeriCorps program. 

Even though this measure does not represent participants’ employment status upon 

program entry, it implies their pre-service employability. 

Additionally, as mentioned in an earlier footnote, The Center for Youth and 

Communities (2019) collected job placement data at a time that varied by participant 

instead of at set intervals (e.g., one year post-program). After speaking with the study 

authors, the analysis assumed the employment gains realized by YouthBuild AmeriCorps 

participants would be gradual based on the study’s data collection timeline. This 

conservative assumption may not be representative of the actual timing of 

participants’ employment benefits after program exit. 

While The Center for Youth and Communities (2019) also indicated the portion of 

YouthBuild AmeriCorps participants that enrolled in post-secondary education postservice, the evaluation did not track post-secondary education completion. Such data 

is also not collected through YouthBuild. Given this, the analysis used graduation rates 

for populations comparable to YouthBuild AmeriCorps participants—in terms of 
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financial need, socioeconomic status, and first-generation status—from third-party 

sources to approximate completion rates across post-secondary degree types. 

This evaluation also did not have a pre-post study design, nor did it use a comparison 

group of non-YouthBuild AmeriCorps participants to measure the impact of national 

service on outcomes of interest. To compensate, this analysis used supplemental data 

provided by the evaluation authors and third-party sources to capture benefits of the 

YouthBuild AmeriCorps program. 

Limitations to the Array of Benefits Captured 

The Center for Youth and Communities (2019) does not report on outcomes that stem 

from YouthBuild AmeriCorps participants’ service work. Namely, benefits to stakeholder 

groups besides YouthBuild AmeriCorps participants and the associated benefits to 

government are not captured in this ROI analysis. For instance, savings in construction 

costs due to YouthBuild AmeriCorps participants predominantly building affordable 

housing in low-income communities could not be estimated based on available data. 

While YouthBuild gathers information on the number of new housing units completed or 

rehabbed by YouthBuild AmeriCorps participants, they do not collect data related to 

the costs or value of such service work. In addition, due to a lack of data, this analysis 

did not include benefits from other newly-added services YouthBuild AmeriCorps 

participants provide such as those related to healthcare, computer technology, 

hospitality, and environmental services. If the data were available, including these and 

other benefits to society would increase the resulting ROI and provide a more complete 

picture of the varied impacts of the YouthBuild AmeriCorps program. 

Program Benefits, Forgone Benefits (opportunity cost), Program 

Costs, and ROI Results 

The ROI for the YouthBuild AmeriCorps program measures the benefits of the program 

compared to its costs to determine the return to different stakeholders. This section 

provides ICF’s estimates of program benefits, forgone benefits (opportunity cost), 

program costs, and resulting ROI. 

Program Benefits 

Table 5 shows the estimates of monetized benefits of the YouthBuild AmeriCorps 

program by stakeholder group for each of the three scenarios. The proportion of 

benefits going to YouthBuild AmeriCorps participants, the federal government, and 

state/local governments were relatively stable across scenarios. In all three scenarios, 

YouthBuild AmeriCorps participants realized two-thirds or more of program benefits. 
22 

 

 

 

 

 

 

 

 

 

 

Forgone Category 

Professional Opportunity 

Cost Amount Across All Scenarios (2020$) 

Post-Tax Earnings $9,742,868 

Federal Income Taxes $451,390 

State Income Taxes $255,221 

Social Security and Medicare Taxes $865,604 

Sales Taxes $442,907 

Total $11,757,989 

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Return on Investment Study: 

YouthBuild AmeriCorps 

Table 5. Program Benefits by Recipient 

Recipient 

Benefits by Scenario (2020$) 

Short Term Medium Term Long Term 

YouthBuild AmeriCorps Participants 

(percent of total) 

$3,114,306 

(75%) 

$82,912,429 

(68%) 

$138,597,854 

(66%) 

Federal Government 

(percent of total) 

$782,437 

(19%) 

$23,992,231 

(20%) 

$43,466,256 

(21%) 

State/Local Governments 

(percent of total) 

$263,148 

(6%) 

$15,062,301 

(12%) 

$28,274,057 

(13%) 

Total 

(Total percent) 

$4,159,891 $121,966,961 $210,338,167 

(100%) (100%) (100%) 

Forgone Benefits (Opportunity Costs) 

Table 6 shows the breakdown of the forgone benefits from the professional opportunity 

cost to YouthBuild AmeriCorps participants and government in net present 2020 dollars. 

It lists the amount of post-tax earnings participants forgo—and the associated taxes 

forgone—to participate in the YouthBuild AmeriCorps program. This is called the total 

professional opportunity cost. For the federal government benefits per federal dollar 

ROI calculation, only the forgone federal income, Social Security, and Medicare taxes 

were subtracted from the total federal benefits. The sum of these forgone federal taxes 

is called the federal professional opportunity cost. 

Table 6. Forgone Benefits from Professional Opportunity Cost 

*Numbers may not sum due to rounding. 
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Return on Investment Study: 

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Table 7 lists the forgone benefits from the investment opportunity costs incurred by 

scenario and for when: 

a) Total YouthBuild AmeriCorps funds for the program year are invested in 

U.S. Treasury bonds and 

b) Only federal YouthBuild AmeriCorps funds (both program and education award 

funding) are invested in these bonds. 

Table 7 also lists the 2019 real interest rates and the number of years elapsed (with two 

payments a year) that were used as inputs to calculate the forgone accrued interest 

value for each scenario. The analysis used 2019 real interest rates for U.S. Treasury bonds 

because the YouthBuild AmeriCorps program year analyzed began in 2019. 

Table 7. Forgone Benefits from Investment Opportunity Cost by Scenario and Funding 

Stream 

Funding Stream 

Forgone Accrued Interest by Scenario (2020$) 

Short Term Medium Term Long Term 

(1.30% interest rate (1.45% interest rate and (1.50% interest rate and 

and 1 year elapsed) 15 years elapsed) 30 years elapsed) 

Total YouthBuild 

AmeriCorps Funding $255,269 $4,736,355 $11,071,781 

Federal YouthBuild 

AmeriCorps Funding 

Only 

$139,711 $2,592,242 $6,059,668 

Program Costs 

Table 8 shows the cost of the YouthBuild AmeriCorps program for the September 2019 

to August 2020 program year by funding source. The table underscores what portion of 

YouthBuild AmeriCorps funds were provided by AmeriCorps compared to stakeholder 

groups (i.e., match funding). The table also highlights a further breakdown for these 

two funding streams. Overall, the total cost of the YouthBuild AmeriCorps program for 

this program year was $19.6 million. Fifty-four percent of YouthBuild AmeriCorps 

program costs (around $10.6 million) was funded by AmeriCorps. This amount included 

the AmeriCorps grant and the expected education awards. The remaining 46 percent 

(or $8.9 million) consisted of match funding from private stakeholders, non-AmeriCorps 

federal government entities, as well as state and local governments. 
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Return on Investment Study: 

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Table 8. Program Cost by Funding Source for YouthBuild AmeriCorps 

Funding Source Amount ($) Percent of Total (%) 

Total AmeriCorps Federal Funding $10,645,325 54.4% 

AmeriCorps State & National Grant $8,068,367 41.2% 

Expected Education Awards $2,576,958 13.2% 

Total Match Funding $8,927,155 45.6% 

Match Federal Funding $66,839 0.3% 

Match State & Local Government 

Funding $4,661,442 23.8% 

Match Private Funding $4,198,874 21.5% 

Grand Total $19,572,480 100.0% 

ROI Results 

Table 9 shows the benefits, forgone benefits (opportunity costs), and costs that are 

included in each of the three types of ROI calculations. 
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Benefits and Costs - - -

ROI Scenario (2020$) 

Short term Medium term Long term 

Total Gross Program Benefits $4,159,891 $121,966,961 $210,338,167 

Member Benefits $3,114,306 $82,912,429 $138,597,854 

Federal Government Benefits $782,437 $23,992,231 $43,466,256 

State/Local Government/other funder Benefits $263,148 $15,062,301 $28,274,057 

Return on Investment Study: 

YouthBuild AmeriCorps 

Table 9. Program Benefits, Forgone Benefits, and Costs Included in the ROI Calculations 

ROI Calculation Program Benefits Forgone Benefits Costs 

Total Benefits per 

Federal Dollar 

• All YouthBuild 

AmeriCorps 

participant and 

government benefits 

derived from the 

program 

• Forgone benefits 

from total 

professional 

opportunity cost 

• Forgone benefits 

from Federal 

investment 

opportunity cost 

• AmeriCorps 

federal 

funding 

• Match federal 

funding 

Total Benefits per 

Funder Dollar 

• All YouthBuild 

AmeriCorps 

participant and 

government benefits 

derived from the 

program 

• Forgone benefits 

from total 

professional 

opportunity cost 

• Forgone benefits 

from total 

investment 

opportunity cost 

• AmeriCorps 

federal 

funding 

• All match 

funding 

Federal 

Government 

Benefits per 

Federal Dollar 

• Additional federal 

government tax 

revenue generation 

and reduced 

spending 

attributable to the 

program 

• Forgone Benefits 

from Federal 

professional 

opportunity cost 

• Forgone benefits 

from Federal 

investment 

opportunity cost 

• AmeriCorps 

federal 

funding 

• Match federal 

funding 

This analysis developed ROI estimates using the three scenarios (short-term, mediumterm, and long-term). As noted above, the ROI calculations compared the net benefits 

of the YouthBuild AmeriCorps program with program costs to calculate the ROI. 

Table 10 shows the gross program benefits, forgone benefits, net benefits, and program 

costs of the YouthBuild AmeriCorps program, along with the results of the three ROI 

calculations. 

Table 10. Benefits and Costs by ROI Scenario
26 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Return on Investment Study: 

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Benefits and Costs 

ROI Scenario (2020$) 

Short term Medium term Long term 

Total Forgone Benefits (Opportunity Costs) $12,013,258 $16,494,344 $22,829,770 

Forgone Benefits to Members (Forgone 

Earnings Post-Taxes) $9,742,868 $9,742,868 $9,742,868 

Forgone Tax Revenue from Member Earnings $2,015,121 $2,015,121 $2,015,121 

Forgone Tax Revenue to Federal Government $1,316,994 $1,316,994 $1,316,994 

Forgone Tax Revenue to State/Local 

Government $698,128 $698,128 $698,128 

Forgone Benefits from Funding Provided (All 

Funders) $255,269 $4,736,355 $11,071,781 

Forgone Investment Benefits to Federal 

Government from Funding Provided $139,711 $2,592,242 $6,059,668 

Forgone Investment Benefits to State/Local 

Government and Other Funders from Funding 

Provided 

$115,558 $2,144,113 $5,012,113 

Total Program Net Benefits (Total Program 

Gross Benefits – Total Forgone Benefits) -$7,853,367 $105,472,617 $187,508,397 

Net Benefits to Members (Member Benefits – 

Forgone Benefits to Members) -$6,628,562 $73,169,561 $128,854,986 

Net Benefits to Federal Government (Federal 

Government Benefits – Forgone Tax Revenue 

to Federal Government – Forgone Investment 

Benefits to Federal Government from Funding 

Provided) 

-$674,268 $20,082,995 $36,089,594 

Net Benefits State/Local Government and 

other funders (State/Local Government 

Benefits – Forgone Tax Revenue to State/Local 

Government – Forgone Investment Benefits to 

State/Local Government and Other Funders 

from Funding Provided) 

-$550,538 $12,220,060 $22,563,816 

Total Program Costs $19,572,480 $19,572,480 $19,572,480 

Federal Government Cost $10,712,164 $10,712,164 $10,712,164 

Non-Federal Government Costs $8,860,316 $8,860,316 $8,860,316 

ROI for Total Benefits per Federal Dollar (Total 

Program Net Benefits / Federal Government 

Costs) 

-$0.72 $10.05 $17.97 

ROI for Total Benefits per Funder Dollar (Total 

Program Net Benefits / Total Program Costs) -$0.40 $5.39 $9.58 

Federal Government Benefits per Federal 

Dollar (Net Benefits Federal Government / 

Federal Government Costs) 

-$0.06 $1.87 $3.37 
27 

 

 

 

 

 

 

 

 

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Return on Investment Study: 

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Table 11 summarizes the ROI results for the YouthBuild AmeriCorps program across the 

short-term, medium-term, and long-term scenarios. Three different ROI results are 

calculated for each scenario. Since two of the calculations include benefits to society 

(e.g., YouthBuild AmeriCorps participants), the results are expressed as cost–benefit 

ratios, while maintaining the ROI terminology. Specifically, these ratios take the form of 

the sum of monetized benefits over the sum of applicable program costs. The ROIs 

expressed as cost–benefit ratios in this study can be interpreted as the amount of dollars 

returned for every $1.00 of investment (or program cost).24 See Appendix B for the 

formulas used to calculate each ROI calculation. 

Table 11. ROI Results for YouthBuild AmeriCorps 

ROI Calculation Short term 

ROI Scenario 

Medium term Long term 

Total Benefits per Federal Dollar -$0.72 $10.05 $17.97 

Total Benefits per Funder Dollar -$0.40 $5.39 $9.58 

Federal Government Benefits per Federal Dollar -$0.06 $1.87 $3.37 

The YouthBuild AmeriCorps program produces strong returns for the medium- and longterm scenarios, particularly when benefits to YouthBuild AmeriCorps participants and 

state/local governments are included. This is indicated by the results of the total 

benefits per federal dollar and the total benefits per funder dollar ROI calculations for 

these two scenarios. 

In the short-term scenario—where benefits for only one year post-program are 

included—the ROI results are negative, indicating that costs outweigh the benefits in 

the first year after the program. A negative ROI in the first year post-program is common 

in programs where there is an initial investment made and benefits accrue in the 

following years. This is because it often requires several years of benefits to recoup the 

initial investment and generate positive returns. Part of the reason why the ROI 

calculations are negative in the short-term is because this analysis assumed that 

YouthBuild AmeriCorps participants gradually gained employment over a 2.25-year 

period, based on information provided by the authors of The Center for Youth and 

Communities (2019). The one-year timeframe of the short-term scenario only captures a 

fraction of the employment benefits that YouthBuild AmeriCorps participants 

experience over the 2.25-year period. Additionally, as noted in the ROI methodology, 

lifetime benefits that stem from the YouthBuild AmeriCorps program are not realized in 

the short-term scenario. Given this and considering the forgone benefits in the first year 

(i.e., professional and investment opportunity costs) the ROI calculations for the 

24 ROIs can be expressed in percentages or as ratios, such as in this study. Although not shown as a ratio in 

the results, the ROIs in this study show the amount of return for every $1 invested. 
28 

 

 

 

 

 

 

 

Return on Investment Study: 

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short-term scenario are all negative. Specifically, for every $1 invested by the federal 

government, the initial $1 investment plus an additional $0.72 are lost. When considering 

the program costs of all funders, for every $1 invested, the initial $1 investment plus an 

additional $0.40 are lost. Moreover, for every $1 the federal government invests, the 

federal government alone loses that initial $1 investment as well as an additional $0.06. 

In the medium-term scenario, YouthBuild AmeriCorps participants and government 

realize a combined return of $10.05 for every $1 invested by the federal government in 

the YouthBuild AmeriCorps program. Moreover, for every $1 invested in the YouthBuild 

AmeriCorps program from all funders, $5.39 is returned to both society and government 

combined.25 Even the most conservative ROI calculation under this scenario yields a 

positive return. Specifically, for every $1 that the federal government invests in the 

YouthBuild AmeriCorps program, the federal government receives $1.87. 

For the long-term scenario, the ROI for total benefits per federal dollar, total benefits per 

funder dollar, and federal government benefits per federal dollar are $17.97, $9.58, and 

$3.37, respectively. Namely, for both the medium- and long-term scenarios, all the ROI 

calculations are positive where all funders realize a return on their investment in the 

YouthBuild AmeriCorps program. 

The magnitude and direction of the ROI calculations are driven by several factors: 

• YouthBuild AmeriCorps participants’ strong secondary education and 

employment outcomes. For the most recent program year, YouthBuild data 

indicated that 85 percent of YouthBuild AmeriCorps participants had less than a 

high school education prior to program entry. With regard to education 

outcomes, The Center for Youth and Communities (2019) reported that of 

YouthBuild AmeriCorps program completers that did not have a high school 

diploma or equivalency pre-service, 67.8 percent obtained one of these 

secondary credentials post-service due to participating in the YouthBuild 

AmeriCorps program. This ROI analysis estimated that due to participating and 

serving in the YouthBuild AmeriCorps program, an additional 441 YouthBuild 

AmeriCorps participants completed their secondary education. According to 

the U.S. Bureau of Labor Statistics (2020), gains in educational attainment— 

especially obtaining a high school diploma or equivalent—translate to 

decreased unemployment and higher earnings. Findings from The Center for 

Youth and Communities (2019) and its authors also indicate that an additional 

45.8 percent of YouthBuild AmeriCorps program completers obtained a job 

post-service. Based on this finding, this ROI analysis estimated that an additional 

320 YouthBuild AmeriCorps program completers became employed due to 

participating and serving in the YouthBuild AmeriCorps program. Therefore, the 

completion of secondary credentials through the YouthBuild AmeriCorps 

program plays a crucial part in driving YouthBuild AmeriCorps participants’ 

employment gains. The completion of a high school diploma or equivalent not 

25 The funder groups whose investment is included in this calculation are the federal government (i.e., 

AmeriCorps and other federal sources), state and local governments, and other non-government entities. 
29 

 

 

 

 

 

 

 

Return on Investment Study: 

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only leads to increased employment but also additional earnings. This analysis 

calculated that YouthBuild AmeriCorps participants who were unemployed 

pre-service but employed post-service experienced a $26,000 increase in perperson pre-tax annual earnings, which stemmed from their improved 

employment. 

• Medium- and long-term accumulation of benefits. In the short-term, the three 

ROI calculations are negative because only one year of post-program 

employment and earnings gains are factored in while the entire program cost is 

considered. Additionally, the short-term scenario does not include any lifetime 

benefits in terms of reduced spending on corrections, public assistance, and 

social insurance or increased tax revenue. As these benefits accumulate over 

time, the analysis shows positive returns. This is indicated by the ROI results in the 

medium- and long-term scenarios (15 and 30 years post-program, respectively). 

Government funding serves as a catalyst for private funding of evidence-based social 

services programs. For the ROI calculations of 1) total benefits per federal dollar and 

2) total benefits per funder dollar, AmeriCorps’s requirement of match funding also 

contributed to the magnitude of outcomes. Federal government funding of the 

YouthBuild AmeriCorps program, specifically, serves as a catalyst for private and other 

government funding. This additional combined private and non-AmeriCorps federal 

government funding—amounting to $8.9 million for YouthBuild AmeriCorps for the most 

recent program year—allowed the YouthBuild AmeriCorps program to enroll and serve 

more participants than otherwise would have been served under the federal funding 

alone. Though it may not impact the ROI, because it is a per unit metric, match funding 

leads to greater investment in the YouthBuild AmeriCorps program and thus to a 

greater impact as more individuals are served. 

Recommendations for Further Research 

Future ROI studies for national and community service programs, such as YouthBuild 

AmeriCorps, can be strengthened in several ways. 

Recommendation 1: Determine the persistence of short- and long-term impacts for 

program participants. The persistence of impacts, such as earnings, is often not 

measured in evaluations because they require long-term tracking. Although a scenariobased approach that accounts for variations in the persistence of impacts can be 

used, as was completed in this ROI analysis, rigorous research on the long-term impact 

of programming will enable AmeriCorps to determine a single value for ROI calculations 

and avoid relying on the scenario-based approach. For example, The Center for Youth 

and Communities (2019) did not measure whether YouthBuild AmeriCorps participants’ 

employment was sustained over time. Data was instead collected anywhere from one 

to 2.25 years after program participation. Thus, instead of collecting outcome measures 

at a time that varies by program participant, grantees should track outcomes of interest 

at the same intervals, multiple times after program completion, to provide greater 

insight into the duration and consistency of benefits. 
30 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Investment Study: 

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Recommendation 2: Document outcomes using third-party data sources. 

Using third-party data, along with or in place of self-reported data, can also improve 

the accuracy of program outcome measurements. While self-reported data are easier 

to obtain—especially via the use of survey instruments—it has several disadvantages. 

Some answers may be exaggerated, respondents may not answer honestly, and 

response biases could affect results. AmeriCorps programs should—where possible— 

leverage data from third-party sources either to provide data for their program 

evaluation or to corroborate findings from self-reported data. For example, if degree 

completion data are of interest, such as in the case of this ROI analysis, data from the 

National Student Clearinghouse (NSC) could be used to verify which degrees 

YouthBuild AmeriCorps participants completed post-program. The Center for Youth and 

Communities (2019) included post-secondary education enrollment data specific to 

YouthBuild AmeriCorps participants. However, degree completion data was excluded. 

Thus, to estimate increases in post-secondary educational attainment, the analysis used 

third-party proxies. Were degree outcomes data from third-party data sources (like 

NSC) available, those data may make more precise ROI estimates possible. 

Recommendation 3: Quantify ripple effects. Earnings impacts on program participants 

and AmeriCorps members likely have positive benefits for those individuals’ families and 

surrounding communities. Rigorous research on those potential ripple effects would 

enable AmeriCorps to capture a broader array of benefits of this and other programs, 

which would be expected to result in an increased ROI. Specifically, the longitudinal 

impacts on program participants could be collected alongside the ripple effects their 

outcomes have on their families and communities to determine how long these indirect 

impacts are sustained after program participation or completion. 

Recommendation 4: Quantify Community Benefits Associated with Improved Housing. 

YouthBuild AmeriCorps participants’ service work in home construction likely leads to 

savings in housing expenditures for households and results in other benefits. Data on 

those impacts would result in a more comprehensive ROI. 

Conclusion 

Based upon these findings, investment in the YouthBuild AmeriCorps program results in 

favorable impacts across a variety of stakeholder groups under the long- and mediumterm scenarios. Specifically, impacts are realized by YouthBuild AmeriCorps participants 

and the various levels of government. 

The ROI results indicate that the medium- and long-term benefits realized by YouthBuild 

AmeriCorps participants and government outweigh the investment made by funders 

(e.g., private funders as well as federal, state, and local governments). Specifically, 

the combined return to YouthBuild AmeriCorps participants and government per 

federal dollar is $10.05 under the medium-term scenario and $17.97 under the 

long-term scenario. 

When all funding (from the various levels of government and other funders) is 

considered, every $1 in funding results in a return of $5.39 under the medium-term 

scenario and $9.58 under the long-term scenario. 
31 

 

 

 

 

 

 

 

Return on Investment Study: 

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Lastly, when considering the ROI to the federal government alone, the medium- and 

long-term scenario results are $1.87 and $3.37, respectively. This indicates that in the 

medium-term scenario, the federal government realizes a return of $1.87 for every dollar 

invested and in the long-term scenario, the federal government realizes a return of 

$3.37 for every dollar invested. 

In the short-term scenario—where benefits for only one year post-program are 

included—the ROI results are all negative, indicating that costs outweigh the benefits in 

the first year after the program. A negative ROI in the first year post-program is common 

in programs where there is an initial one-time investment made and benefits accrue in 

the following years. This is because it often requires several years of benefits to recoup 

the initial investment and generate positive returns, as indicated in the results for the 

medium- and long-term scenarios. During the program, AmeriCorps members gain the 

experience, skills, and knowledge that result in future benefits, such as improved 

employment and wages, which can be sustained throughout their working years. 
32 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Investment Study: 

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Appendix A: Program Benefits, Forgone Benefits, and Program Costs Included in Return 

on Investment Calculations 

In Table 12, the three columns on the right indicate by an “X” if the Program benefits, forgone benefits (opportunity cost), 

or program cost is included in the numerator or denominator of a return on investment (ROI) calculation. 

Table 12. Program Benefits, Forgone Benefits, and Program Costs Included in ROI Calculations 

Program Benefits, Forgone Benefits, and Program Cost 

Total Total Federal 

Benefits per Benefits per Government 

Federal Funder Benefits per 

Dollar Dollar Federal Dollar 

Program Benefits Stakeholder Group Data Sources X indicates inclusion in the ROI numerator 

Increased earnings of 

YouthBuild AmeriCorps 

participants due to 

increased employment 

YouthBuild 

AmeriCorps 

participant 

• The Center for Youth and 

Communities (2019) 

• YouthBuild 

• Consumer Price Index (CPI) 

(U.S. Bureau of Labor Statistics, 

n.d.) 

X X — 

Increased income tax 

revenue due to 

increased earnings of 

YouthBuild AmeriCorps 

participants 

Federal and state 

governments 

• The Center for Youth and 

Communities (2019) 

• YouthBuild 

• CPI (U.S. Bureau of Labor 

Statistics, n.d.) 

• Tax rate data on 

Taxfoundation.org (2019 & 

2020) 

X X X 

Increased Social 

Security and Medicare 

tax revenue due to 

increased earnings of 

YouthBuild AmeriCorps 

participants 

Federal 

government 

• The Center for Youth and 

Communities (2019) 

• YouthBuild 

• CPI (U.S. Bureau of Labor 

Statistics, n.d.) 

• Social Security Administration 

(SSA) (2020) 

X X X 
33 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Investment Study: 

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Program Benefits, Forgone Benefits, and Program Cost 

Total 

Benefits per 

Federal 

Dollar 

Total 

Benefits per 

Funder 

Dollar 

Federal 

Government 

Benefits per 

Federal Dollar 

Increased sales tax 

revenue due to 

increased earnings of 

YouthBuild AmeriCorps 

participants 

State and local 

governments 

• The Center for Youth and 

Communities (2019) 

• YouthBuild 

• CPI (U.S. Bureau of Labor 

Statistics, n.d.) 

• Consumer Expenditure Survey 

(CEX) (U.S. Bureau of Labor 

Statistics, 2021) 

• Tax rate data on 

Taxfoundation.org (2020) 

X X — 

Increased lifetime 

earnings due to 

increased educational 

attainment of 

YouthBuild AmeriCorps 

participants as a result 

of education awards 

YouthBuild 

AmeriCorps 

participant 

• The Center for Youth and 

Communities (2019) 

• YouthBuild 

• AmeriCorps (n.d.) 

• Pell Institute (2011) 

• Pell Institute (2020) 

• Cataldi et al. (2018) 

• Hinz et al. (2017) 

• U.S. Bureau of Labor Statistics 

(2021) 

• NCES (2019) 

• NCES (2020) 

• Trostel (2015) 

• CPI (U.S. Bureau of Labor 

Statistics, n.d.) 

X X — 
34 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Investment Study: 

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Program Benefits, Forgone Benefits, and Program Cost 

Total 

Benefits per 

Federal 

Dollar 

Total 

Benefits per 

Funder 

Dollar 

Federal 

Government 

Benefits per 

Federal Dollar 

Increased lifetime tax 

revenue due to 

increased educational 

attainment of 

YouthBuild AmeriCorps 

Federal, state, and 

local governments 

• The Center for Youth and 

Communities (2019) 

• YouthBuild 

• AmeriCorps (n.d.) 

• Pell Institute (2011) 

• Pell Institute (2020) 

• Cataldi et al. (2018) 

• Hinz et al. (2017) 

• U.S. Bureau of Labor Statistics 

X X X 

participants as a result 

of education awards 

(2021) 

• NCES (2019) 

• NCES (2020) 

• Trostel (2015) 

• CPI (U.S. Bureau of Labor 

Statistics, n.d.) 

Reduced spending on 

lifetime public 

assistance, corrections, 

and social insurance 

due to increased 

educational 

Federal, state, and 

local governments 

• The Center for Youth and 

Communities (2019) 

• YouthBuild 

• AmeriCorps (n.d.) 

• Pell Institute (2011) 

• Pell Institute (2020) 

• Cataldi et al. (2018) 

• Hinz et al. (2017) 

• U.S. Bureau of Labor Statistics 

X X X 

attainment of 

YouthBuild AmeriCorps 

participants 

(2021) 

• NCES (2019) 

• NCES (2020) 

• Trostel (2015) 

• CPI (U.S. Bureau of Labor 

Statistics, n.d.) 
35 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Investment Study: 

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Program Benefits, Forgone Benefits, and Program Cost 

Total Total Federal 

Benefits per Benefits per Government 

Federal Funder Benefits per 

Dollar Dollar Federal Dollar 

Increased tax revenue 

from education awards 

Federal, state, and 

local governments 

• The Center for Youth and 

Communities (2019) 

• AmeriCorps (n.d.) 

• YouthBuild 

• Tax rate data on 

Taxfoundation.org (2019 & 

2020) 

• SSA (2020) 

X X X 

Forgone Benefits 

(Opportunity Costs)* Stakeholder Group Data Sources X indicates inclusion in the ROI numerator 

Professional 

opportunity cost of 

forgone market wages 

for YouthBuild 

AmeriCorps 

participants 

YouthBuild 

AmeriCorps 

participant 

• YouthBuild 

• Current Population Survey 

Annual Social and Economic 

(ASEC) Supplement (U.S. 

Census Bureau, n.d.) 

• CPI (U.S. Bureau of Labor 

Statistics, n.d.) 

X X — 

Professional 

opportunity cost of 

federal income, Social 

Security, and Medicare 

taxes on forgone 

market wages for 

YouthBuild AmeriCorps 

participants 

Federal 

government 

• YouthBuild 

• ASEC (U.S. Census Bureau, 

n.d.) 

• CPI (U.S. Bureau of Labor 

Statistics, n.d.) 

• Tax rate data on 

Taxfoundation.org (2019) 

• Social Security Administration 

(2020) 

X X X 
36 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Investment Study: 

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Program Benefits, Forgone Benefits, and Program Cost 

Total Total Federal 

Benefits per Benefits per Government 

Federal Funder Benefits per 

Dollar Dollar Federal Dollar 

Professional 

opportunity cost of 

state income and sales 

taxes on forgone 

market wages for 

YouthBuild AmeriCorps 

participants 

State and local 

governments 

• YouthBuild 

• ASEC (U.S. Census Bureau, 

n.d.) 

• CPI (U.S. Bureau of Labor 

Statistics, n.d.) 

• CEX (U.S. Bureau of Labor 

Statistics, 2021) 

• Tax rate data on 

Taxfoundation.org (2020) 

X X — 

Investment opportunity • YouthBuild 

cost of investing total • Office of Management and 

YouthBuild AmeriCorps All funders Budget (OMB) (2020) X X — 

funding in U.S. Treasury • U.S. Department of Treasury 

bonds 

Investment opportunity 

cost of investing only 

federal YouthBuild 

AmeriCorps funding in 

U.S. Treasury bonds 

Federal 

government 

• YouthBuild 

• OMB (2020) 

• U.S. Department of Treasury X 

Program Cost Payer Data Sources X indicates inclusion in the ROI denominator 

AmeriCorps grant costs 

(excluding education 

awards provided to 

YouthBuild AmeriCorps 

participants) 

Federal 

government 

(AmeriCorps) 

YouthBuild X X X 

YouthBuild AmeriCorps 

participant expected 

education awards 

Federal 

government 

(AmeriCorps) 

• AmeriCorps (n.d.) 

• YouthBuild 

• Friedman et al. (2016) 

X X X 
37 

 

 

 

 

 

 

 

 

 

Return on Investment Study: 

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Program Benefits, Forgone Benefits, and Program Cost 

Total 

Benefits per 

Federal 

Dollar 

Total 

Benefits per 

Funder 

Dollar 

Federal 

Government 

Benefits per 

Federal Dollar 

Other federal 

government funding 

(not provided by 

AmeriCorps) 

Federal 

government YouthBuild X* X* X* 

State and local 

government funding 

State and local 

governments 

YouthBuild — X — 

Private funding Non-government 

funders YouthBuild — X — 

* Opportunity costs are amounts that are reduced from total benefits realized across ROI calculations. Thus, they represent a negative value in the 

numerator. Please see the Calculating ROI section of Appendix B for further details. 
38 

 

 

 

 

 

 

Return on Investment Study: 

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Appendix B: Additional Information on the Methodology 

This appendix provides additional details on the methodology used for this study, as a 

supplement to the methodology section in the main report. It describes the steps used 

to calculate the return on investment (ROI), the results of interim calculations that 

contribute to the ROI calculations, and assumptions that underlie the analysis. 

Methodology Overview 

Calculating the ROI for the YouthBuild AmeriCorps program included the 

following steps: 

• Measuring and monetizing program benefits to YouthBuild AmeriCorps 

participants and the different levels of government 

• Estimating Forgone Benefits (opportunity costs) 

• Assessing program costs 

• Calculating the ROI 

This ROI analysis included only those benefits that could be reasonably monetized given 

the available data, and that likely would not have occurred without the YouthBuild 

AmeriCorps program. 

Although YouthBuild AmeriCorps participants experience positive benefits from the 

YouthBuild AmeriCorps program in terms of increased employment and earnings 

(described below), available data do not establish how long these specific impacts are 

sustained over time. To address a range of possible durations for those benefits, three 

scenarios were developed for this ROI study: 

• Short-term. This scenario assumes short-term earnings impacts. The assumption is 

that earnings impacts are limited to a single year after program exit. This scenario 

also assumes no lifetime benefits are realized. 

• Medium-term. This scenario assumes a longer duration of earnings impacts. The 

assumption is that earnings impacts last 15 years. A 3 percent discount rate is 

applied each year to represent net present value in 2020 dollars.26 This scenario 

also assumes only half of the net present value of lifetime benefits is realized. 

• Long-term. This scenario assumes sustained earnings impacts throughout 

YouthBuild AmeriCorps participants’ working years. The assumption is that 

earnings impacts last 30 years. A 3 percent discount rate is applied each year to 

represent net present value in 2020 dollars. This scenario also assumes the entire 

net present value of lifetime benefits is realized. 

26 The Office of Management and Budget (1992) defines a discount rate as, “The interest rate used in 

calculating the present value of expected yearly benefits and costs” (p. 18). Regarding the 3 percent 

discount rate, see Office of Management and Budget (2003). 
39 

 

 

 

 

 

 

 

 

 

 

Return on Investment Study: 

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There are some differences between the three scenarios. One is the length of time that 

increased employment—and earnings associated with that employment—are 

sustained. The other is what portion of lifetime benefits, when applicable, are realized.27 

For each ROI calculation, three estimates using the three scenarios were developed, 

which is shown in greater detail in the Calculating ROI section. 

Measuring Program Benefits 

The first step in calculating the ROI for the YouthBuild AmeriCorps program is to measure 

and monetize the program benefits. As a result of the YouthBuild AmeriCorps program, 

YouthBuild AmeriCorps participants and various levels of government benefit. These 

benefits were identified through an extensive literature review and data collection 

process. The methods used to measure benefits for each of these stakeholder groups 

are described below. 

Benefits to YouthBuild AmeriCorps Participants 

The YouthBuild AmeriCorps participants who provide services to and participate in the 

YouthBuild AmeriCorps program experience benefits due to their service and program 

participation. This analysis estimated the following benefits: 

• Additional earnings from increased employment 

• Additional lifetime earnings from increased educational attainment as a result of 

education awards 

Additional Earnings from Increased Employment 

The findings from The Center for Youth and Communities (2019), which include 

YouthBuild AmeriCorps participants’ employment and education outcomes 

post-program, were used to measure the impact of the program on YouthBuild 

AmeriCorps participants. The study found that of YouthBuild AmeriCorps program 

completers, 72.5 percent were placed in a job post-service. Moreover, the study 

authors provided supplemental data that indicated that of YouthBuild AmeriCorps 

program completers, 26.7 percent reported they were employed at some point during 

the six months prior to starting the program. The latter metric does not represent the 

employment rate of YouthBuild AmeriCorps participants immediately before program 

enrollment. However, it serves as a conservative proxy for this population’s employment 

prior to participating in the program. Using the 26.7 percent as this populations’ 

pre-service employment rate in this ROI analysis assumes that if YouthBuild AmeriCorps 

participants were employed at a time during the six months before the program, they 

27 These three scenarios consider varying durations of how long increased employment and earnings 

benefits last for YouthBuild AmeriCorps participants. They also consider varying durations for lifetime benefits 

that stem from the YouthBuild AmeriCorps program. For example, lifetime benefits in terms of decreased 

public assistance, social insurance, and corrections costs result from YouthBuild AmeriCorps participants’ 

higher educational attainment post-service. The analysis estimates lifetime benefits differently in the three 

scenarios. Specifically, the net present value of the entire lifetime benefit is realized for the long-term 

scenario, half of the net present value of the lifetime benefit is realized for the medium-term scenario, and 

no lifetime benefit amount is realized for the short-term scenario. 
40 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Return on Investment Study: 

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would likely be able to secure a job without participating in the YouthBuild AmeriCorps 

program. 

This ROI analysis used these outcomes to estimate the number of additional YouthBuild 

AmeriCorps participants employed as a result of the YouthBuild AmeriCorps program. 

Specifically, there were 699 YouthBuild AmeriCorps program completers during the 

September 2019 to August 2020 program year. To calculate the benefits of the 

YouthBuild AmeriCorps participants in terms of employment gains, the difference 

between the two aforementioned percentages (i.e., 45.8 percent) was applied to the 

number of YouthBuild AmeriCorps participants that completed the YouthBuild 

AmeriCorps program during the most recent program year. This calculation estimated 

the number of individuals employed after participating in the YouthBuild AmeriCorps 

program (i.e., 320 individuals who would not have been employed otherwise). 

To monetize the benefits associated with YouthBuild AmeriCorps participants gaining 

employment, the analysis first calculated their average pre-tax annual earnings. 

YouthBuild provided ICF with the average hourly wage for YouthBuild AmeriCorps 

participants who were placed in a job 12 months after program completion 

(i.e., $12.34/hour). This was representative of the most recent YouthBuild data available. 

Annualizing this metric represents YouthBuild AmeriCorps participants’ average pre-tax 

annual earnings as shown in Table 13.28 

Table 13. Per-Person Annual Average Pre-tax and Post-tax Earnings for YouthBuild 

AmeriCorps Participants 

Number of 

YouthBuild 

AmeriCorps 

Program 

Completers 

Number 

Employed Post 

Program Due to 

Participation 

Average Pre 

tax Annual 

Earnings 

Average Post 

tax Annual 

Earnings 

YouthBuild 

AmeriCorps 

Participants 

699 320 $25,667 $21,674 

Sources: The Center for Youth and Communities (2019) and YouthBuild 

*Post-tax annual earnings metrics exclude payroll taxes paid on earnings (i.e., federal and state income, 

Social Security, and Medicare taxes). 

The analysis next calculated the aggregate post-tax additional earnings from the 

increased employment. The analysis applied the average post-tax annual earnings of 

$21,674 to the 320 YouthBuild AmeriCorps participants employed as a result of the 

program. This increase in additional post-tax earnings was then spread over time 

depending on the scenario (e.g., short-, medium-, or long-term) to create a cumulative 

sum of post-tax earnings for these additional YouthBuild AmeriCorps participants who 

are employed as a result of the YouthBuild AmeriCorps program. 

28 This ROI analysis assumes the jobs obtained by YouthBuild AmeriCorps participants were full-time. 
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To avoid double counting, the per-person average post-tax annual earnings is used to 

calculate the direct benefit to YouthBuild AmeriCorps participants, rather than the 

average pre-tax annual earnings. The average post-tax annual earnings in Table 13 

excludes payroll taxes (federal and state income, Social Security, and Medicare). These 

payroll taxes are counted as benefits to government and the specific rates used are 

described in more detail in the Benefits to Government section. 

Based on these calculations, the cumulative additional post-tax earnings for the 

YouthBuild AmeriCorps participants for the three different scenarios—discounted in 

2020 dollars using data from Office of Management and Budget (2003)—are shown in 

Table 14. 

Table 14. Cumulative Additional Post-tax Earnings due to Participation in the YouthBuild 

AmeriCorps Program by Scenario 

Scenario 

Cumulative Additional Post tax Earnings 

due to Participation in YouthBuild AmeriCorps (2020$) 

Short-term $3,114,306 

Medium-term $82,597,193 

Long-term $137,967,382 

Sources: The Center for Youth and Communities (2019), YouthBuild, and OMB (2003) 

The Center for Youth and Communities (2019) did not track the timing of job placement 

of study participants. The authors noted to ICF that the interval between program 

completion to final data collection could have ranged from one to 2.25 years 

depending on the YouthBuild AmeriCorps participant. This analysis conservatively 

assumed that the YouthBuild AmeriCorps participants gained employment gradually 

over a 27-month (2.25 year) period. Specifically, of the 320 YouthBuild AmeriCorps 

participants who gained employed post-service, the analysis estimated that 142 found 

a job one year post-service, an additional 142 found a job two years post-service, and 

an additional 36 found a job after two years post-service. Namely, 142 YouthBuild 

AmeriCorps participants were employed one year post-service, 285 were employed 

two years post-service, and all 320 were employed at three years post-service. Because 

of this, additional earnings for the initial 142, the subsequent 142, and the remaining 36 

YouthBuild AmeriCorps participants who became employed were not realized until one 

year, two years, and three years post-service, respectively. Since the short-term 

scenario only includes benefits realized one year post-service, additional earnings for 

only the initial 142 YouthBuild AmeriCorps participants for one year post-service—and 

the associated taxes from those earnings gains—are realized as noted in Table 14. 
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Additional Lifetime Earnings from Increased Educational Attainment as a Result 

of Education Awards 

The Center for Youth and Communities 

For additional earnings derived (2019) reports that 59.9 percent of from YouthBuild AmeriCorps YouthBuild AmeriCorps program participants’ increased participants completed the program and employment, they were calculated earned an education award. Because all annually and then discounted 

YouthBuild AmeriCorps participants during based on the short-term, medium- the most recent program year either had a term, and long-term scenarios in 

high school education or less prior to net present 2020 dollars. program entry, the analysis assumed 

For additional earnings derived participants that received an education from YouthBuild AmeriCorps award would only use it to pursue post- participants’ increased post- secondary education. Given this, the secondary educational education award pays for some portion of attainment—due to using YouthBuild AmeriCorps participants’ education awards—Trostel (2015) increased post-secondary educational did not provide data on how attainment, and the future earnings earnings accrue over time. derived from that educational attainment is Therefore, this analysis treated the 

treated as a direct benefit to YouthBuild increases in earnings as lifetime 

AmeriCorps participants. To calculate the values expressed in 2020 dollars. 

portion of YouthBuild AmeriCorps The analysis assumed 100 percent 

participants’ increased post-secondary of those lifetime earnings accrued 

educational attainment that is attributable by year 30 (i.e., in the long-term 

to the YouthBuild AmeriCorps program, this scenario), 50 percent accrued by 

analysis used cost data from the National year 15 (i.e., in the medium-term 

Center for Education Statistics (NCES). Table scenario), and nothing accrued 

15 details the average total cost for each one year post-program (i.e., in the 

degree type short-term scenario). , and the portion of the cost 

that the post-tax education award amount 

(i.e., $5,299) represents ($6,15529 before taxes). The analysis used these percentages to 

estimate the lifetime benefits of post-secondary educational attainment that can be 

attributed to the education award. For instance, according to NCES (2020), the 

average annual cost of a public, in-state, four-year academic institution during the 

2019 to 2020 academic year was $20,532. This amounts to almost $83,000 for four years if 

expressed in 2020 dollars. The $5,299 post-tax education award only represents 

6.4 percent of the cost of that degree, so the YouthBuild AmeriCorps program could 

only be credited with 6.4 percent of the completion of YouthBuild AmeriCorps 

participants’ bachelor’s degree post-service. 

29 This analysis used the 2020 to 2021 AmeriCorps education award amount ($6,345) but discounts it to net 

present 2020 dollars using the Consumer Price Index. For more information about this education award, 

please see https://americorps.gov/members-volunteers/segal-americorps-education-award/find-out-more. 
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Table 15. Average Total Cost of Education and Portion Attributable to Education Award 

by Degree Type 

Degree Type30 Average Cost (2020$)* 

Percent of Degree Total Cost 

Covered by Post tax 

Education Award (%) 

Technical Certificate $10,230 51.8% 

Associate Degree $11,979 44.2% 

Bachelor’s Degree $82,949 6.4% 

Graduate Degree $39,401 13.5% 

Sources: AmeriCorps (n.d.), CPI, NCES (2019), NCES (2020) 

*Costs were provided for the 2019 to 2020 academic year by NCES (2020) for technical certificate, 

associate degree, and bachelor’s degree types. Graduate degree type data for the 2018 to 2019 

academic year was provided by NCES (2019). These costs are expressed in 2020 dollars since the post-tax 

education award amounts are in 2020 dollars. 

To determine the future lifetime earnings (and later, the associated lifetime taxes, which 

are described in the Benefits to Government section) realized due to the use of the 

education award post-service, the analysis first determined the number of additional 

post-secondary degrees estimated to be completed by degree type. The Center for 

Youth and Communities (2019) reported that 12.8 percent of YouthBuild AmeriCorps 

participants who completed the YouthBuild AmeriCorps program enrolled in postsecondary education post-service. Thus, of the 699 program completers for the most 

recent year, about 89 are estimated to have enrolled in post-secondary education. 

Unfortunately, the evaluation did not parse out the degree programs these YouthBuild 

AmeriCorps program completers enrolled into. To approximate this, the analysis used 

survey results included in The Center for Youth and Communities (2019). In a survey, 

YouthBuild AmeriCorps participants were asked pre- and post-program how important 

going to different post-secondary education institutions was to them. The authors noted 

that answers of 3 or 4 on a 4-point scale were considered “important.” The results found 

in the survey are enumerated in the second to fourth columns in Table 16. The 

difference between responses pre- versus post-program were used as proxies for 

increases in post-secondary education enrollment that were solely attributed to the 

YouthBuild AmeriCorps program. 

30 Costs for a technical certificate include tuition, required fees, books, and supplies for a public, in-state, 

less-than-2-year program; costs for an associate degree include tuition, required fees, books, and supplies 

for a public, in-state, 2-year program; costs for a bachelor’s degree include tuition, required fees, books, 

supplies, and on-campus housing for a public, in-state, 4-year program; costs for a graduate degree 

includes tuition and required fees for a public, in-state, 2-year graduate program. 
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Table 16. Importance of Going to the Following Post-secondary Education Institutions 

Pre- versus Post-Program as Reported by YouthBuild AmeriCorps Participants 

Education Institution 

(Degree Received) 

Pre Program 

(%) 

Post Program 

(%) 

Difference 

(%) 

Redistribution 

(%)* 

Technical School 

(Technical Certificate) 52.2% 70.6% 18.4% 26.7% 

2-Year College 

(Associate Degree) 57.4% 76.4% 19.0% 27.6% 

4-Year College 

(Bachelor’s Degree) 50.9% 68.3% 17.4% 25.3% 

Graduate School 

(Graduate Degree) 50.6% 64.7% 14.1% 20.5% 

Total 68.9% 100.0% 

Source: The Center for Youth and Communities (2019) and ICF 

*Numbers may not sum due to rounding. 

The last column in Table 16 redistributes the results in the fourth column so the 

percentages sum to 100 percent. In other words, of the 89 YouthBuild AmeriCorps 

participants who enrolled in post-secondary education post-service, about 27 percent 

were estimated to enroll in a technical school, 28 percent were estimated to enroll in a 

2-year college, 25 percent were estimated to enroll in a 4-year college, and 21 percent 

were estimated to enroll in a graduate degree program. Again, these percentage 

estimates are based on findings in The Center for Youth and Communities (2019). 

While this estimates post-secondary education enrollment, post-secondary degree 

completion was not provided in the evaluation. Thus, the analysis leveraged graduation 

rate data from third-party sources for a population comparable to YouthBuild 

AmeriCorps participants—in terms of financial need, socioeconomic status, and 

first-generation status. Specifically, Hinz et al. (2017) found that the completion rate for 

a career technical education (CTE) credential for those that received a Pell grant was 

26.3 percent. Pell Institute (2011) reported that attainment of an associate degree for 

low-income and first-generation students was 26.1 percent. Pell Institute (2020) found 

that the completion rate for a bachelor’s degree for low-income and first-generation 

students was 21 percent. Lastly, Cataldi et al. (2018) reported that 43 percent of 

first-generation students who already had a bachelor’s degree obtained a graduate 

degree. 

These graduation rates coupled with other data points mentioned earlier are used to 

estimate the number of additional post-secondary degrees obtained that is 

attributable to the use of education awards received after participating and serving in 

the YouthBuild AmeriCorps program. Specifically, the data points listed in Table 17 are 

multiplied across to determine these additional degrees by degree type. 
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Table 17. Estimates of the Number of Post-secondary Degrees Obtained With Using the 

Education Award by Degree Type 

Degree 

Type 

YouthBuild 

AmeriCorps 

Program 

Completers 

Who 

Enrolled in 

Post 

secondary 

Education 

Post 

secondary 

Degree 

Distribution 

from Error! 

Reference 

source not 

found. (%) 

Percent of 

YouthBuild 

AmeriCorps 

Participants 

that 

Completed 

the Program 

and Earned 

an Education 

Award (%) 

Graduation 

Rates from 

Third Party 

Sources 

(%) 

Percent of 

Degree 

Total Cost 

Covered 

by Post 

tax 

Education 

Award (%) 

Number of 

Degrees 

Obtained 

with Using 

the 

Education 

Award 

Technical 

Certificate 89 26.7% 59.9% 26.3% 51.8% 1.95 

Associate 

Degree 89 27.6% 59.9% 26.1% 44.2% 1.71 

Bachelor’s 

Degree 89 25.3% 59.9% 21.0% 6.4% 0.18 

Graduate 

Degree 89 20.5% 59.9% 9.0%31 13.5% 0.13 

Sources: The Center for Youth and Communities (2019), YouthBuild, AmeriCorps, Hinz et al. (2017), Pell 

Institute (2011), Pell Institute (2020), NCES (2018), NCES (2019), NCES (2020), CPI 

Next, the difference in the additional lifetime pre-tax earnings from one degree type to 

the subsequent degree type was estimated using data provided by both Trostel (2015) 

and U.S. Bureau of Labor Statistics (2021), which is shown in the third column of 

Table 18 and expressed in 2020 dollars.32 For instance, using Trostel (2015) data, the 

lifetime earnings in 2020 dollars of someone with an associate degree is about $875,000, 

while that of someone with a bachelor’s degree is almost $1.3 million. The difference 

between these two metrics (roughly $417,000 as show in Table 18) represents the 

additional lifetime earnings realized as a result of gaining a bachelor’s degree if an 

associate degree was already completed. This process was completed for all 

post-secondary degree types to conservatively estimate the additional lifetime earnings 

realized by YouthBuild AmeriCorps participants due to an increase in post-secondary 

educational attainment. Trostel (2015) also included data on lifetime taxes paid which 

31 Since NCES (2018) reported that 43 percent of those that already had a bachelor’s degree obtained a 

graduate degree, this analysis multiplied the 21 percent provided by Pell Institute (2020)—which 

represented the bachelor’s degree completion rate for a population comparable to YouthBuild 

AmeriCorps participants—to the 43 percent to estimate the overall graduate degree completion rate. 

32 For a technical certificate, comparisons were made between metrics for a high school diploma and 

those of a technical certificate. For an associate degree, comparisons were made between metrics for a 

high school diploma and those for an associate degree. For a bachelor’s degree, comparisons made were 

between metrics for an associate degree and those of a bachelor’s degree. For a graduate degree, 

comparisons made were between metrics for a bachelor’s degree and those of a master’s degree. 
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was converted to 2020 dollars and then used to estimate the post-tax lifetime earnings 

that would be realized per additional degree received. Specifically, the lifetime taxes 

paid amounts were subtracted from the pre-tax additional lifetime earnings amounts to 

estimate the additional post-tax lifetime earnings, a direct benefit to YouthBuild 

AmeriCorps participants. These values are shown in the fifth column of Table 18. 

To isolate the increase in additional lifetime earnings specific to participants using the 

education award, the number of YouthBuild AmeriCorps participants estimated to earn 

a post-secondary degree (due to using the education award) was multiplied by the 

additional post-tax lifetime earnings for each degree type. Thus, the additional post-tax 

lifetime earnings amounts are multiplied by the number of degrees attained due to 

YouthBuild AmeriCorps participants using the education award post-service to 

complete their post-secondary education. As noted in Table 18, the total additional 

post-tax lifetime earnings amount was roughly $630,000 across all YouthBuild 

AmeriCorps participants who served and participated in the YouthBuild AmeriCorps 

program during the most recent program year. Of note, these post-tax lifetime earnings 

are in addition to the earnings derived from YouthBuild AmeriCorps participants’ 

employment gains as described in the previous section. To reiterate, the earnings from 

YouthBuild AmeriCorps participants’ increased employment differs depending on the 

scenario (i.e., short-term, medium-term, and long-term) since it’s uncertain how long 

these earnings will persist. For the post-tax lifetime earnings—and all lifetime benefits in 

this ROI analysis—the entire amount is realized in the long-term, half of it is realized in the 

medium-term, and no amount is realized in the short-term. 
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Table 18. Additional Earnings from YouthBuild AmeriCorps Participants’ Use of the 

Education Award* 

Degree 

Type 

Number of 

Degrees 

Obtained 

with Using 

the 

Education 

Award 

Additional Pre 

tax Lifetime 

Earnings 

Per Degree 

Type (2020$) 

Additional 

Lifetime 

Taxes Paid 

Per Degree 

Type (2020$) 

Additional 

Post tax 

Lifetime 

Earnings Per 

Degree Type 

(2020$) 

Total Post tax 

Lifetime 

Earnings with 

Using the 

Education 

Award 

Technical 

Certificate33 

1.95 $259,216 $107,304 $151,912 $296,222 

Associate 

Degree 

1.71 $271,036 $120,490 $150,546 $256,912 

Bachelor’s 

Degree 

0.18 $416,996 $201,594 $215,402 $39,114 

Graduate 

Degree 

0.13 $461,413 $174,460 $286,953 $38,224 

Total $630,472 

Sources: Trostel (2015) and U.S. Bureau of Labor Statistics (2021) 

*Numbers may not total due to rounding. 

Benefits to Government 

State and Local Government 

State and local government benefits from: 

• Additional state income tax revenue from YouthBuild AmeriCorps participants’ 

increased earnings due to increased employment 

• Additional lifetime state and local taxes due to YouthBuild AmeriCorps 

participants’ increased post-secondary educational attainment34 

33 Trostel (2015) did not provide lifetime earnings, taxes paid, or cost data for the technical certificate 

degree type. Thus, the analysis imputed these values using the ‘some college’ estimates in Trostel (2015) 

and metrics from U.S. Bureau of Labor Statistics (2021). Specifically, the analysis took the percent difference 

between the median weekly earnings for someone who had an education level of ‘some college’ and 

1) did have a technical certificate and 2) did not have a technical certificate. This percent difference was 

applied to the Trostel (2015) ‘some college’ estimates to approximate values for this degree type 

throughout the analysis. 

34 This benefit was calculated using lifetime tax revenue data from Trostel (2015). These values summed 

lifetime state income taxes, lifetime property taxes, and lifetime sales taxes by education level. 
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• Additional state income taxes from 

the education award received by 

these participants 

• Additional state and local sales tax 

revenue from YouthBuild AmeriCorps 

participants’ increased consumption 

due to increased employment 

• Reduced lifetime spending on social 

insurance and corrections35 due to 

the YouthBuild AmeriCorps 

participants’ increased secondary 

and post-secondary educational 

attainment 

State income tax revenue. To measure 

income tax revenue generation from 

increased employment for state 

governments (any local income taxes are 

not included), the additional pre-tax 

earnings of YouthBuild AmeriCorps 

participants that are solely attributed to the 

YouthBuild AmeriCorps program are taxed 

by a weighted, estimated proportional state 

income tax rate. This tax rate considers statespecific progressive tax brackets and 

standard deduction amounts. Based on the taxable income, the analysis estimated the 

proportional state income tax for each state as the amount of state income taxes paid 

per YouthBuild AmeriCorps participant divided by their pre-tax earnings. This analysis 

then calculated the weighted average of these state-specific tax rates—using these 

states’ population from the 5-year estimates of the 2019 American Community Survey 

(U.S. Census Bureau, n.d.)—to estimate a weighted national tax rate (i.e., 2.5 percent). 

A weighted national tax rate was leveraged because YouthBuild AmeriCorps programs 

operate nationwide. Also, YouthBuild AmeriCorps participants may disperse to various 

locations following their service terms and continue to migrate over the course of their 

working years. 

Additional tax revenue derived from 

YouthBuild AmeriCorps participants’ 

increased employment and 

education awards was estimated 

using tax rates specific to each perperson monetary amount. 

For additional tax revenue derived 

from YouthBuild AmeriCorps 

participants’ increased postsecondary educational 

attainment—due to using education 

awards—Trostel (2015) did not 

provide specific tax rates. Therefore, 

this analysis treated the increases in 

tax revenue as lifetime values 

expressed in 2020 dollars. The 

analysis assumed 100 percent of 

those lifetime tax revenues accrued 

by year 30 (i.e., in the long-term 

scenario), 50 percent accrued by 

year 15 (i.e., in the medium-term 

scenario), and nothing accrued one 

year post-program (i.e., in the shortterm scenario). 

35 Reduced spending on public assistance due to YouthBuild AmeriCorps participants’ increased 

secondary and post-secondary educational attainment is included as a federal government benefit, not a 

state and local government benefit. This is because public assistance includes programs funded at the 

federal-level (e.g., SNAP, TANF, etc.). 
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Lifetime state income tax revenue values are also provided by Trostel (2015) by 

education level. Based on the number of post-secondary degrees estimated to be 

obtained due to the use of the education award received after participating and 

serving in the YouthBuild AmeriCorps program, additional lifetime state income taxes 

are realized. Thus, the additional lifetime state income taxes paid values—informed by 

data from Trostel (2015)—were converted to 2020 dollars and then multiplied by the 

inferred number of post-secondary degrees obtained with using the education award, 

which are listed in the second column of Table 18 above. 

State governments also receive state income taxes from the education awards 

YouthBuild AmeriCorps participants receive post-service. To calculate this, the analysis 

first estimated the pre-tax per-person education award amount in 2020 dollars 

(i.e., $6,155)36 and multiplied it by the number of YouthBuild AmeriCorps program 

participants that completed the program and earned an education award. The 

resulting product represents the pre-tax cumulative education award amount 

expected to be received by YouthBuild AmeriCorps participants. The portion of this 

value taxed by state income taxes was estimated using a weighted state income tax 

rate specific to the per-person education award amount (i.e., 2.3 percent). 

State and local sales tax revenue. To measure sales tax revenue generation for state 

and local governments that stems from increased employment, a weighted state and 

local sales tax rate was applied to the amount of YouthBuild AmeriCorps participants’ 

cumulative additional post-tax earnings that are available to be spent on taxable 

goods. To establish a weighted state and local sales tax rate, this analysis first summed 

the state sales tax rate and the average local sales tax rate for each state using data 

from Cammenga (2020). Then using 2019 data from the American Community Survey 

(U.S. Census Bureau, n.d.), these state-level combined state and local sales tax rates 

were weighted based on the population of each state. The resulting weighted average 

sales tax rate used in this analysis was 7.43 percent. 

To estimate the amount of YouthBuild AmeriCorps participants’ additional post-tax 

earnings as a result of improved employment that was spent on taxable goods, data 

from the Consumer Expenditure Survey (U.S. Bureau of Labor Statistics, 2021) were used. 

These data show the amount of spending on a number of different goods and services 

by national consumers across several different pre-tax income brackets.37 The 

proportion of earnings that is spent on taxable goods (such as alcoholic beverages, 

housekeeping supplies, apparel, etc.) was then calculated for consumers with incomes 

that matched the per-person average pre-tax earnings of YouthBuild AmeriCorps 

36 This analysis used the 2020 to 2021 AmeriCorps education award amount ($6,345) but discounts it to net 

present 2020 dollars using the Consumer Price Index. For more information about this education award, 

please see https://americorps.gov/members-volunteers/segal-americorps-education-award/find-out-more. 

37 To calculate the estimated taxable expenditures, Consumer Expenditure Survey (CES) Table 1203 was 

used from U.S. Bureau of Labor Statistics (2021). This table lists the annual expenditure means by pre-tax 

income tax brackets. Thus, the pre-tax earnings of YouthBuild AmeriCorps participants were used instead of 

their post-tax earnings to calculate this metric. Please visit this site for more details: 

https://www.bls.gov/cex/tables/calendar-year/mean-item-share-average-standard-error.htm#cu-income. 
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participants. This value was 49.1 percent. This proportion was then applied to YouthBuild 

AmeriCorps participants’ cumulative additional post-tax earnings to calculate the 

post-tax monetary amount they spend on taxable goods. Then the sales tax rate 

(i.e., 7.43 percent) was applied to estimate the resulting sales tax revenues that go to 

state and local governments due to participants’ increased employment post-service. 

Trostel (2015) also provides additional lifetime state and local sales tax values by 

education level. Using these values, the analysis calculated the additional sales tax 

revenue realized by state and local governments as a result of YouthBuild AmeriCorps 

participants using their education award to achieve higher post-secondary 

educational attainment post-service. These values represent a direct benefit to state 

and local governments in the form of increased tax revenue. 

State and local government cost savings. State and local governments also benefit 

from the YouthBuild AmeriCorps program through lifetime savings in social insurance 

and corrections—as reported in Trostel (2015)—due to the increase in their secondary 

and post-secondary educational attainment after program exit. Of note, social 

insurance includes unemployment insurance and workers’ compensation. To calculate 

these lifetime non-federal government savings, the analysis first determined the number 

of additional high school diplomas or equivalencies (i.e., secondary education 

credentials) obtained upon completion of the YouthBuild AmeriCorps program. The 

Center for Youth and Communities (2019) found that of YouthBuild AmeriCorps program 

completers that did not have a high school diploma or equivalency pre-service, 

67.8 percent obtained one of these secondary credentials post-service. YouthBuild 

indicated that for the most recent program year, 651 YouthBuild AmeriCorps 

participants completed the program and did not have a secondary education 

credential prior to program entry. Thus, multiplying 651 by 67.8 percent estimated the 

number of additional individuals who completed their secondary education due to the 

YouthBuild AmeriCorps program (i.e., 441). Additionally, this analysis calculated the 

number of post-secondary degrees earned due to the use of the education award 

received post-service (see the second column in Table 17). The analysis then estimated 

the decrease in social insurance and corrections costs (and thus savings) from one 

education level to the subsequent education level using data from Trostel (2015) and 

then multiplied these monetary amounts by the number of additional secondary 

credentials or post-secondary degrees estimated to be obtained.38 

To determine what portion of this differential represents lifetime cost savings to state or 

local governments versus the federal government, a different method was employed 

for each of these cost savings areas. For social insurance, 50 percent of lifetime 

unemployment insurance cost savings and all the lifetime cost savings for workers’ 

compensation are apportioned to state and local governments (Oswald, 2018). 

Regarding reductions in lifetime corrections spending, the portion between the federal 

and state or local governments was determined based on data from Hyland (2015). 

38 For a high school diploma, comparisons were made between metrics for less than a high school diploma 

and those of a high school diploma. The other education level comparisons used are listed in footnote 30. 
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Specifically, this report found that 8.4 percent of U.S. correction costs is paid by the 

federal government and the remaining 91.6 percent is paid by state and local 

governments. Therefore, almost 92 percent of the lifetime cost savings in corrections 

due to YouthBuild AmeriCorps participants’ secondary and post-secondary education 

gains post-service are allocated to state and local governments. 

Federal Government 

The federal government benefits from: 

• Additional federal income, Social Security, and Medicare tax revenue from 

YouthBuild AmeriCorps participants’ increased earnings due to increased 

employment 

• Additional federal income, Social Security, and Medicare taxes from the 

education award received by these participants 

• Additional lifetime federal taxes due to YouthBuild AmeriCorps participants’ 

increased post-secondary educational attainment 

• Reduced lifetime spending on public assistance, social insurance, and 

corrections due to the YouthBuild AmeriCorps participants’ increased secondary 

and post-secondary educational attainment 

Federal income tax revenue: To measure federal income tax revenue from 

employment, the additional pre-tax earnings of YouthBuild AmeriCorps participants that 

are solely attributed to the YouthBuild AmeriCorps program—as well as the pre-tax 

cumulative education awards expected to be received by participants—are taxed by 

a federal income tax rate. The rates used are estimated proportional tax rates that 

consider the standard deductions and progressive tax brackets specific to federal 

income taxes as provided by El-Sibaie (2019). To reiterate, an estimated proportional 

tax rate equals the total amount of taxes estimated to be paid divided by the pre-tax 

amount of the value to be taxed (e.g., per-person average pre-tax earnings). In this 

analysis, the tax rate used for YouthBuild AmeriCorps participants’ additional pre-tax 

earnings was 5.4 percent while that for the pre-tax cumulative education award 

amount was 4.0 percent. Different tax rates used were because they were specific to 

the per-person pre-tax earnings and education award amounts, respectively. 

For the additional lifetime earnings of YouthBuild AmeriCorps participants that is based 

on their increase in post-secondary educational attainment—fueled by the use of the 

education award—Trostel (2015) provides additional lifetime federal income tax values. 

These values are used to calculate the additional income tax revenue realized by the 

federal government due to participants’ post-secondary education gains. 

Social Security and Medicare tax revenue: Social Security and Medicare tax revenue 

are measured as fiscal gains as a result of the additional pre-tax earnings of YouthBuild 

AmeriCorps participants from their increased employment and due to the pre-tax 

cumulative amount in education awards expected to be received by YouthBuild 

AmeriCorps participants. However, tax rates specific to each revenue source are used. 

Social Security and Medicare use flat tax rates, 6.2 percent and 1.45 percent, 

respectively; thus, these rates are applied to the additional pre-tax earnings of 
52 

 

 

 

 

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YouthBuild AmeriCorps participants to calculate the additional amount of revenue the 

federal government receives. These same rates are also applied to the pre-tax 

cumulative education award amount expected to be received by YouthBuild 

AmeriCorps participants to calculate additional tax revenue. 

Moreover, lifetime Social Security tax values are provided by Trostel (2015) by education 

level. The analysis used these values to estimate the additional lifetime Social Security 

tax revenue realized by the federal government as a result of YouthBuild AmeriCorps 

participants using their education award to complete different post-secondary 

education degree types post-service. 

Federal government cost savings: The federal government realizes cost savings in public 

assistance, social insurance, and corrections due to the increased secondary and 

post-secondary educational attainment of YouthBuild AmeriCorps participants after 

program exit. Specifically, the number of additional secondary education credentials 

and post-secondary degrees estimated to be earned by YouthBuild AmeriCorps 

participants post-service as well as data from Trostel (2015) were used to calculate the 

federal government portion of lifetime cost savings on social insurance (which is 

comprised of worker’s compensation and unemployment insurance, as noted earlier), 

public assistance (e.g., SNAP, Medicaid, TANF, etc.), and corrections. 

Table 19 shows the lifetime costs to the federal versus the state and local governments 

for each of these areas—where applicable—by education level. The differences in 

these lifetime costs from one education level to the next represent cost savings per 

degree obtained. 

Table 19. Government Lifetime Costs from Increased Educational Attainment Level per 

Individual’s Lifetime* 

Source of 

Government 

Saving 

Less than 

High 

School 

Diploma 

(2012$) 

High 

School 

Diploma 

(2012$) 

Technical 

Certificate 

(2012$)** 

Associate 

Degree 

(2012$) 

Bachelor’s 

Degree 

(2012$) 

Graduate 

Degree 

(2012$) 

Public 

Assistance $95,454 $54,155 $34,066 $31,803 $14,480 $9,394 

Social 

Insurance $6,773 $9,584 $8,466 $8,209 $5,863 $4,732 

Federal $2,902 $3,964 $3,221 $3,570 $2,660 $2,090 

State/Local $3,871 $5,620 $5,245 $4,639 $3,204 $2,643 

Corrections $53,079 $8,488 $4,014 $4,055 $1,190 $725 

Federal $4,459 $713 $300 $341 $100 $61 

State/Local $48,620 $7,775 $3,713 $3,714 $1,090 $664 

Sources: Trostel (2015) and U.S. Bureau of Labor Statistics (2021) 

*Numbers may not sum due to rounding. 

**The technical certificate degree type values were imputed using Trostel (2015) and U.S. Bureau of Labor 

Statistics (2021) data. 
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As mentioned earlier, the analysis estimated an additional 441 YouthBuild AmeriCorps 

participants completed a secondary credential as a result of the YouthBuild 

AmeriCorps program. Moreover, the analysis estimated YouthBuild AmeriCorps 

participants obtained an additional 1.95 technical certificates, 1.71 associate degrees, 

0.18 bachelor’s degrees, and 0.13 graduate degrees post-service. To conservatively 

calculate the federal government’s lifetime savings associated with these education 

gains, the analysis calculated differences between the public assistance, federal social 

insurance, and federal corrections lifetime costs for these education levels and those 

that precede them expressed in 2020 dollars. These values are then multiplied by the 

number of additional secondary credentials and post-secondary degrees obtained— 

where appropriate—to represent the total cost savings realized by the federal 

government due to the YouthBuild AmeriCorps program. As previously mentioned when 

discussing the state and local governments’ allocation of the reduction in lifetime social 

insurance and corrections expenditures, the federal government receives 50 percent of 

the lifetime cost savings in unemployment insurance (part of social insurance; Oswald, 

2018), and over 8 percent of the lifetime cost savings in corrections (Hyland, 2015). 

These federal government savings are shown in Table 21. 

Table 20 shows the tax rates that were applied to YouthBuild AmeriCorps participants’ 

additional pre-tax and post-tax earnings (which were derived from increased 

employment), depending on the type of revenue being calculated. It also shows the 

tax rates used for the pre-tax cumulative education award amount expected to be 

received by YouthBuild AmeriCorps participants upon program completion. 

Table 20. 2020 Tax Rates and Ratio of Taxable Expenditures for YouthBuild AmeriCorps 

Participants’ Earnings and Education Awards 

Metric 

Rate for 

Additional 

Earnings 

(%) 

Rate for 

Education 

Award (%) Notes 

Estimated 

Proportional 

Federal 

Income Tax 

5.43% 3.99% • Tax rates are used which consider the 

progressive tax brackets and standard 

deductions specific to federal income taxes. 

• These rates are dependent on and applied 

to the pre-tax value of each metric being 

taxed. 

Estimated 

Proportional 

State Income 

Tax 

2.47% 2.26% • Tax rates are used which consider the 

progressive tax brackets and standard 

deductions specific to each state’s income 

taxes. Each state’s tax rate is weighted based 

on the state’s population and summed to 

estimate a weighted national average. 

• These rates are dependent on and applied 

to the pre-tax value of each metric being 

taxed. 
54 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit Type - - -

Benefit (2020$)* 

Short term Medium term Long term 

State/Local Government Benefits $263,148 $15,062,301 $28,274,057 

State Income Tax Revenue from Education 

Awards* 

(Tax rate: 2.3%) 

$58,125 $58,125 $58,125 

State Income Tax Revenue from 

Employment 

(Tax rate: 2.5%) 

$91,233 $2,419,658 $4,041,710 

Return on Investment Study: 

YouthBuild AmeriCorps 

Metric 

Rate for 

Additional 

Earnings 

(%) 

Rate for 

Education 

Award (%) Notes 

Social 

Security Tax 

6.20% 6.20% • Social Security tax rate for employees and 

employers. 

• These rates are applied to the pre-tax value 

of each metric being taxed. 

Medicare Tax 1.45% 1.45% • Medicare tax rate for employees and 

employers. 

• These rates are applied to the pre-tax value 

of each metric being taxed. 

Sales Tax 7.43% N/A • The combined state and average local tax 

rate for each state was summed and 

weighted based on states’ population to 

calculate a national weighted average sales 

tax rate. 

• The rate is applied to the additional post-tax 

earnings of participants. 

Ratio of 

Taxable 

Expenditures 

per National 

Consumer 

49.15% N/A • Percent of post-tax earnings spent on taxable 

goods and services that is used to calculate 

sales tax from post-tax earnings. 

• Ratio is dependent on the pre-tax value of 

the additional earnings of participants. 

Sources: Cammenga (2020), Social Security Administration (2020), Consumer Expenditures Survey 

(U.S. Bureau of Labor Statistics, 2021), and El-Sibaie (2019) 

Summary of Benefits to Government 

Table 21 shows the amount of tax revenue generated and savings in expenditures for 

state and local versus the federal government that are solely credited to the YouthBuild 

AmeriCorps program and calculated using the methods described above. These 

government revenue and savings amounts are benefits that are included in the three 

ROI calculations and they are derived from YouthBuild AmeriCorps participant impacts. 

Table 21. State/Local and Federal Government Benefits by Stakeholder Group and by 

Scenario 
55 

 

Benefit (2020$)* 

Benefit Type Short -term Medium -term Long -term 

State and Local Sal es Tax Revenue from 

Employment 

(Tax rate: 7.43%) 

$113,790 $3,017,917 $5,041,020 

State Income, Sal es, and Property Taxes 

from Post-secondary Educational 

Attainment (Lifetime) 

$- $65,683 $131,366 

Savings in Reduced Social Insurance and 

Corrections Spending from Secondary and 

Post-secondary Educational Attainment 

(Lifetime) 

$- $9,500,918 $19,001,835 

Federal Government Benefits $782,437 $23,992,231 $43,466,256 

Federal Income Tax Revenue from 

Education Awards** 

(Tax rate: 4.0%) 

$102,802 $102,802 $102,802 

Social Security and Medicare Tax Revenue 

from Education Awards* 

(Tax rate: 7.65%) 

$197,137 $197,137 $197,137 

Federal Income Tax Revenue from 

Employment 

(Federal income tax rate: 5.4%) 

$200,363 $5,314,003 $8,876,320 

Social Security and Medi care Tax Revenue 

from Employment 

(Tax rate: 7.65%) 

$282,135 $7,482,740 $12,498,900 

Federal Income Tax Revenue from Postsecondary Educational Attainment 

(Lifetime) 

$- $93,134 $186,268 

Social Security Tax Revenue from Postsecondary Educational Attainment 

(Lifetime) 

$- $78,535 $157,070 

Savings in Reduced Soci al Insurance, 

Corrections, and Publi c Assistance 

Spending from Secondary and Postsecondary Educational Attainment 

(Lifetime) 

$- $10,723,880 $21,447,759 

Total $1,045,585 $39,054,532 $71,740,313 

Return on Investment Study: 

YouthBuild AmeriCorps 

*Numbers may not sum due to rounding. 

**Education awards are one-time taxable payments. The resulting tax revenue does not vary by scenario. 

Of note, minimal tax revenue is generated from YouthBuild AmeriCorps participants’ 

additional earnings—that stem from increased employment—in the short-term scenario. 

This is because employment gains are not fully realized for all YouthBuild AmeriCorps 

participants who gain employment until three years after program exit. For additional
56 

 

 

 

 

 

 

 

Return on Investment Study: 

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information on this, please reference the Additional Earnings from Increased 

Employment section in this appendix. 

Measuring Forgone Benefits (Opportunity Costs) 

The analysis included two types of forgone benefits, referred to as opportunity costs, in 

the three ROI calculations to conservatively estimate the return of the YouthBuild 

AmeriCorps program: a professional opportunity cost to YouthBuild AmeriCorps 

participants and an investment opportunity cost to funders. Each of these forgone 

benefits is subtracted from the total program benefits (shown above) in each of the ROI 

calculations. The methodologies used to calculate these two forgone benefits 

(opportunity costs) are described below. 

Forgone Benefits from Professional Opportunity Cost to YouthBuild AmeriCorps 

Participants 

There is a forgone benefit (professional opportunity cost) to YouthBuild AmeriCorps 

participants for their period of national service, during which they could have otherwise 

been working and earning higher pay. This includes both the forgone post-tax earnings 

of YouthBuild AmeriCorps participants for their service term and the forgone taxes 

associated with those lost earnings. To estimate this forgone benefit, the analysis first 

used the demographic distribution of YouthBuild AmeriCorps participants for the most 

recent program year—in terms of gender, race/ethnicity, economically disadvantaged 

status, and pre-service highest level of education—and data from the Current 

Population Survey’s Annual Social and Economic (ASEC) Supplement for March 2019 to 

estimate the weighted unemployment rate for this population (i.e., 

22.3 percent). This represents how many YouthBuild AmeriCorps participants would 

have been unemployed if they did not participate in the YouthBuild AmeriCorps 

program. This analysis then used this group’s weighted unemployment rate to 

determine its weighted employment rate (i.e., 77.7 percent). Then the 77.7 percent was 

multiplied by the number of YouthBuild AmeriCorps program completers for the most 

recent program year (i.e., 699). The product indicates that, based on their 

demographic and socioeconomic characteristics, 543 YouthBuild AmeriCorps program 

completers would have been employed without the YouthBuild AmeriCorps program. 

These values are shown in Table 22. 
57 

 

 

 

 

 

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-

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Table 22. Forgone Earnings of YouthBuild AmeriCorps Participants for a Service Term 

Stakeholder 

YouthBuild 

AmeriCorps 

Program 

Completers 

Weighted 

Employment 

Rate (%) 

Number of 

YouthBuild 

AmeriCorps 

Participants 

Employed 

Without 

Program 

Per 

Person 

Average 

Pre tax 

Earnings 

($) 

Per 

Person 

Average 

Post tax 

Earnings 

($) 

Total 

Post tax 

Earnings 

Forgone 

YouthBuild 

AmeriCorps 

Participants 

699 77.7% 543 $20,360 $17,763 $9,742,868 

Sources: YouthBuild and ASEC (U.S. Census Bureau, n.d.) 

The analysis then estimated what each YouthBuild AmeriCorps participant would have 

earned (both pre- and post-tax) if they had not participated in the YouthBuild 

AmeriCorps program. The analysis began by weighting average hourly wage data from 

ASEC based on YouthBuild AmeriCorps participants’ demographic composition. The 

resulting weighted pre-service average hourly wage for this population was $9.92. 

Annualizing this metric estimates what the average YouthBuild AmeriCorps participant’s 

pre-tax earnings would have been, absent the YouthBuild AmeriCorps program (shown 

in the fifth column of Table 22). Applying the appropriate federal income, state income, 

Social Security, and Medicare tax rates—which were based on participants’ per-person 

pre-tax earnings amount—yields the per-person average post-tax earnings. Multiplying 

this average post-tax earnings estimate by the estimated number of YouthBuild 

AmeriCorps participants who would have been employed regardless of participation in 

YouthBuild AmeriCorps (i.e., 543) resulted in the aggregate post-tax earnings this 

population would forgo due to serving in YouthBuild AmeriCorps for one year. This value 

is shown in the last column of Table 22. 

The second portion of this professional opportunity cost was the forgone taxes 

associated with the earnings of YouthBuild AmeriCorps participants lost for this year of 

service. Federal income, state income, Social Security, and Medicare taxes specific to 

the per-person average pre-tax earnings amount were calculated. Specifically, the 

federal and state income tax rates used were 4.0 and 2.3 percent, respectively. The 

analysis also estimated the sales taxes lost based on the per-person post-tax earnings 

forgone by the YouthBuild AmeriCorps participants. Using data from the Consumer 

Expenditure Survey (U.S. Bureau of Labor Statistics, 2021), the analysis estimated that 

based on the per-person average pre-tax earnings of YouthBuild AmeriCorps 

participants prior to program entry (i.e., $20,360), 61.1 percent of their income would 

have been spent on taxable goods. This percentage was first applied to the total posttax earnings forgone by YouthBuild AmeriCorps participants. Then the weighted 

combined state and local sales tax rate (i.e., 7.43 percent)—used earlier in this analysis 

to calculate government benefits—was applied to represent the resulting sales tax 

revenue lost due to participants serving in the YouthBuild AmeriCorps program instead 

of working. The totals for these taxes and the tax rates used are listed in Table 23. 
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Return on Investment Study: 

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Table 23. Forgone Taxes Associated with the Forgone Earnings of YouthBuild AmeriCorps 

Participants for a Service Term 

Forgone Taxes Taxes Forgone (2020$)* 

Federal Forgone Taxes (i.e., Federal Professional Opportunity Cost) $1,316,993 

Federal Income Taxes 

(Tax rate: 4.0%) $451,390 

Social Security and Medicare Taxes 

(Tax rate: 7.65%) $865,604 

Non-Federal Forgone Taxes $698,128 

State Income Taxes 

(Tax rate: 2.3%) $255,221 

Sales Taxes 

(Tax rate: 7.43%) $442,907 

*Numbers may not sum due to rounding. 

In the federal government benefits per federal dollar ROI calculation, only federal 

government (not total) benefits are included. Because of this only federal components 

of the professional opportunity cost are subtracted from all federal government 

benefits—realized due to the YouthBuild AmeriCorps program—in this ROI calculation. 

The parts of the professional opportunity cost subtracted from these total federal 

government benefits include the forgone federal income taxes (i.e., $451,390) and the 

forgone Social Security and Medicare taxes (i.e., $865,604). The sum of these two values 

is called the federal professional opportunity cost. The sum of all the values listed in 

Table 23 and the forgone post-tax earnings of YouthBuild AmeriCorps participants is 

called the total professional opportunity cost. These naming conventions are 

referenced in the Calculating ROI section. 

Forgone Benefit from the Investment Opportunity Cost to Funders 

The forgone benefits from the investment opportunity cost estimates the expected 

forgone return if funds used to support the activities and positions of YouthBuild 

AmeriCorps participants during the most recent program year were invested in 

U.S. Treasury bonds instead. The rates of return for U.S. Treasury bonds provide a 

market-based estimate of return for low-risk investments. An investment opportunity cost 

for the YouthBuild AmeriCorps program is calculated for two different funding streams: 

1) all funding (used in calculating the total benefits per funder dollar ROI calculation) 

and 2) only federal funding (used in calculating the total benefits per federal dollar and 

federal government benefits per federal dollar ROI calculations). 

To calculate these forgone accrued interest values, the analysis first matched 2019 real 

interest rates provided by Office of Management and Budget (2020) to each of the 

scenarios included in this ROI analysis. The analysis used 2019 real interest rates for 

U.S. Treasury bonds because the YouthBuild AmeriCorps program year analyzed began 

in 2019. The real interest rate for the 3-year maturity was used for the short-term 

scenario, the average between the 10-year and 20-year maturity rates was used as the 
59 

 

 

 

 

 

- - -

Metric 

Short Term Medium Term Long Term 

All Funding 

Federal 

Funding 

Only All Funding 

Federal 

Funding 

Only All Funding 

Federal 

Funding 

Only 

Real 

Interest 

Rate 

1.30% 1.45% 1.50% 

Years 

Elapsed 1 15 30 

Funding 

Amount $19,572,480 $10,712,164 $19,572,480 $10,712,164 $19,572,480 $10,712,164 

Forgone 

Accrued 

Interest 

$255,269 $139,711 $4,736,355 $2,592,242 $11,071,781 $6,059,668 

Return on Investment Study: 

YouthBuild AmeriCorps 

rate for the medium-term scenario, and the 30-year maturity rate was used for the 

long-term scenario. These real interest rates were 1.3, 1.45, and 1.5 percent, 

respectively. Also, the number of years elapsed on these U.S. Treasury bonds was set 

equal to the number of years the different scenarios assumed YouthBuild AmeriCorps 

participants’ employment and earnings gains were sustained. These values are 1 year, 

15 years, and 30 years for the short-, medium-, and long-term scenarios, respectively. 

Given that U.S. Treasury bonds compound bi-annually (Department of Treasury, n.d.), 

the formula used to calculate the forgone accrued interest for each of the three 

scenarios for the two funding streams is listed in Figure 2, where A equals the forgone 

accrued interest (i.e., the investment opportunity cost), P equals the amount of one of 

the funding streams, r equals the 2019 real interest rate, and t equals the number of 

years elapsed. 

Figure 2. Compound Interest Formula Used to Calculate Investment Opportunity Cost 

tt∗22

22

rr

AA = PP�11 + � − PP

Based on this formula, the forgone benefit from the investment opportunity cost 

calculated by scenario and funding stream are listed in Table 24, along with their 

associated inputs. The forgone accrued interest amounts for all funding are called the 

total investment opportunity costs while that for federal funding only are called the 

federal investment opportunity costs. These naming conventions are referenced in the 

Calculating ROI section. 

Table 24. Forgone Benefits from the Investment Opportunity Cost Calculation by 

Scenario and Funding Stream 
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Return on Investment Study: 

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Measuring Program Costs 

Table 25 shows the costs of the YouthBuild AmeriCorps program—including only those 

that support the activities and positions of YouthBuild AmeriCorps participants—by 

funding source. AmeriCorps is the leading funder for the YouthBuild AmeriCorps 

program, covering more than half of the program’s annual operating costs given that it 

supplies the AmeriCorps State and National grant and the expected education 

awards.39 Other non-AmeriCorps funders matched 84 percent of AmeriCorps’s 

contribution for the most recently completed program year. That matched amount 

represented 46 percent of total YouthBuild AmeriCorps program funding for the year. 

Table 25. Funding Sources and Amounts for YouthBuild AmeriCorps 

(September 2019–August 2020) 

Funding Source Amount ($) Percent of Total (%) 

AmeriCorps State & National Grant $8,068,367 41.2% 

Expected Education Awards $2,576,958 13.2% 

Match Federal Funding $66,839 0.3% 

Total Federal Government Funding $10,712,164 54.7% 

Match State & Local Government 

Funding $4,661,442 23.8% 

Match Private Funding $4,198,874 21.5% 

Total Non Federal Government Funding $8,860,316 45.3% 

Grand Total $19,572,480 100.0% 

Source: YouthBuild 

Calculating ROI 

To complete the three ROI calculations for the YouthBuild AmeriCorps program, the sum 

of applicable program benefits is reduced by the forgone benefits from the professional 

and investment opportunity costs (where appropriate) and then compared to the cost 

of the program. As described previously, these three ROI calculations are calculated for 

each of the three scenarios: short-term, medium-term, and long-term. 

39 The education award comes from the National Service Trust. This is a line-item in AmeriCorps’s annual 

budget approved by Congress every year. Thus, the expected education award amounts to be realized 

by YouthBuild AmeriCorps participants post-service is grouped with the AmeriCorps State and National 

grant as both being supplied by AmeriCorps. For more information please reference this link: 

https://americorps.gov/sites/default/files/documents/CNCS%20FY%202021%20Congressional%20Budget%20 

Justification%20w%20IG%20Message%20%28Final%29_508.pdf. 
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Since two of the calculations include benefits to society (e.g., YouthBuild AmeriCorps 

participants), the results are expressed as cost–benefit ratios, while maintaining the ROI 

terminology. Specifically, these ratios take the form of the sum of monetized benefits 

over the sum of applicable program costs. The ROIs expressed as cost–benefit ratios in 

this study can be interpreted as the amount of dollars returned for every $1.00 of 

investment (or program cost).40 

The formulas used to calculate each of the three ROIs are shown below: 

(Benefits to YouthBuild AmeriCorps Participants + Benefits to Government) – 

(Forgone Benefits from the Total Professional Opportunity Cost + Forgone Benefits 

from the Federal Investment Opportunity Cost) = 

(AmeriCorps Federal Funding + Match Federal Funding) 

(Benefits to YouthBuild AmeriCorps Participants + Benefits to Government) – 

(Forgone Benefits from the Total Professional Opportunity Cost + Forgone Benefits 

from the Total Investment Opportunity Cost) = 

(AmeriCorps Federal Funding + Match Federal Funding + Non-federal Match 

Funding) 

(Benefits to the Federal Government) – (Forgone benefits from the Federal 

Professional Opportunity Cost + Forgone benefits from the Federal Investment 

Opportunity Cost) = 

(AmeriCorps Federal Funding + Match Federal Funding) 

Tables 26, 27, and 28 show the total benefits, opportunity costs, program costs, and ROI 

results for each scenario. 

Total 

Benefits per 

Federal 

Dollar 

Total 

Benefits per 

Funder 

Dollar 

Federal 

Government 

Benefits per 

Federal Dollar 

40 ROIs can be expressed in percentages or as ratios, such as in this study. Although not shown as a ratio in 

the results, the ROIs in this study show the amount of return for every $1 invested. 
62 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Return on Investment Study: 

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Table 26. ROI Calculations for Short-Term Scenario 

Components 

Total Benefits per 

Federal Dollar 

(2020$) 

Total Benefits per 

Funder Dollar 

(2020$) 

Federal Government 

Benefits per Federal 

Dollar (2020$) 

Total Program 

Benefits $4,159,891 $4,159,891 $782,437 

Total Forgone 

Benefits (Opportunity 

Costs) 

$11,897,700 $12,013,258 $1,456,704 

Total Program Costs $10,712,164 $19,572,480 $10,712,164 

Result $0.72 $0.40 $0.06 

Table 27. ROI Calculations for Medium-Term Scenario 

Components 

Total Benefits per 

Federal Dollar 

(2020$) 

Total Benefits per 

Funder Dollar 

(2020$) 

Federal Government 

Benefits per Federal 

Dollar (2020$) 

Total Program 

Benefits $121,966,961 $121,966,961 $23,992,231 

Total Forgone 

Benefits (Opportunity 

Costs) 

$14,350,231 $16,494,344 $3,909,236 

Total Program Costs $10,712,164 $19,572,480 $10,712,164 

Result $10.05 $5.39 $1.87 

Table 28. ROI Calculations for Long-Term Scenario 

Components 

Total Benefits per 

Federal Dollar 

(2020$) 

Total Benefits per 

Funder Dollar 

(2020$) 

Federal Government 

Benefits per Federal 

Dollar (2020$) 

Total Program 

Benefits $210,338,167 $210,338,167 $43,466,256 

Total Forgone 

Benefits (Opportunity 

Costs) 

$17,817,657 $22,829,770 $7,376,661 

Total Program Costs $10,712,164 $19,572,480 $10,712,164 

Result $17.97 $9.58 $3.37 
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AmeriCorps. (n.d.). Education Award find out more. AmeriCorps. 

https://americorps.gov/members-volunteers/segal-americorps-education-award 

Blagg, K., & Blom, E. (2018, September). Evaluating the return on investment in higher 

education: An assessment of individual- and state-level returns. Urban Institute. 

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on_investment_in_higher_education.pdf 

Cammenga, J. (2020, January 15). State and Local Sales Tax Rates, 2020. Tax 

Foundation. https://files.taxfoundation.org/20200115132659/State-and-Local-SalesTax-Rates-2020.pdf 

Cataldi, E. F., Bennett, C. T., & Chen, X. (2018, February). First-Generation Students: 

College Access, Persistence, and Postbachelor's Outcomes. Stats in Brief. 

https://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2018421 

Department of Treasury. (n.d.) Interest Rates - Frequently Asked Questions. 

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El-Sibaie, A. (2019, November 14). 2020 Tax Brackets. Tax Foundation. 

https://taxfoundation.org/2020-tax-brackets/ 

Friedman, E., Freeman, B., Phillips, B., Rosenthal, L., Robinson, D., Miller, H., & Porowski, A. 

(2016). AmeriCorps alumni outcomes: Final survey technical report. Corporation for 

National and Community Service (now AmeriCorps). 

https://americorps.gov/sites/default/files/evidenceexchange/FR_AmeriCorpsAlumni 

OutcomesFinalTechReport_1.pdf 

Harlow, C. (2003, April 15). Bureau of Justice Statistics special report: Education and 

correctional populations. U.S. Department of Justice, Office of Justice Programs. 

https://www.bjs.gov/content/pub/pdf/ecp.pdf 

Hinz, S. E., Warkentien, S., & Hong, Y. (2017, August). Postsecondary Career and 

Technical Education: Demographic Differences in Enrollment, Departure, and 

Completion. https://files.eric.ed.gov/fulltext/ED583036.pdf 

Hyland, S. S. (2015). Justice Expenditure And Employment Extracts, 2015 - Final. 

https://bjs.ojp.gov/library/publications/justice-expenditure-and-employmentextracts-2015-final 

Loughead, K. (2020, February 4). State Individual Income Tax Rates and Brackets for 

2020. Tax Foundation. https://taxfoundation.org/state-individual-income-tax-ratesand-brackets-for-2020/ 

National Center for Education Statistics. (2019). Digest of education statistics. Table 

330.50. Average and percentiles of graduate tuition and required fees in degreegranting postsecondary institutions, by control of institution: 1989-90 through 2018-19. 

https://nces.ed.gov/programs/digest/d19/tables/dt19_330.50.asp 
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YouthBuild AmeriCorps 

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