BASIC Fund application season has begun, and demand for scholarships continues to increase—our application total is up 12% from 2025, which saw a 9% increase from 2024. As more parents seek out new educational opportunities for their children, our team is working harder than ever to meet their needs.

This growing demand made me think back to our 2025 Transforming Lives Luncheon in October, where Capital Group CIO and BASIC Fund Director Martin Romo told the room about the power of compounding and $20 that changed the course of his life. What may seem like small investments at the time, he said—one donation, one scholarship, one student—can make all the difference.

Last year, two students undertook a summer project researching the BASIC Fund’s return on investment. The results were staggering. Over a lifetime, our alumni:

-          Jump from the lowest quartile of household earnings to the upper middle class;

-          Earn 37% more than their low-income peers, the equivalent of 15 years of work;

-          And earn almost 15% more than the average California resident.

Even more astounding: our research shows that for every $1 invested in the BASIC Fund, the state of California sees a $14 return. That’s over $180,000 per student invested in the state over a lifetime—funds that go to infrastructure, social services, Medicare, and public schools, all without raising taxes. That’s the power of compounding. That’s the BASIC Fund.

As more families explore their educational options and our application rate rises (and as nearly 60% of CA parents support the federal tax credit for scholarships), we need to remember that our work goes far beyond scholarships. Investing in early education is a catalyst for students, families, communities, and California as a whole. The BASIC Fund is only the beginning.

What investment has changed your life?