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Many centers are financed by other sources of funding in addition to
parent fees. These sources may include public funding to subsidize low-income
families, reimbursement from state-sponsored food programs, private
fundraising efforts, or grants.
The types of funding for which your center is eligible will depend in part
upon its legal structure (nonprofit or for-profit corporation, sole
proprietorship, etc.). Grantmaking foundations and corporations
often fund only nonprofit organizations. Public funding is usually available for
all types of programs offering services to eligible families.
GRANTS
The State
of Montana offers grant opportunities to increase the quality of child care
program that qualify. To see what is available, please visit
http://www.montanachildcare.com/grants.htm.
Public Funding
 | Public funding may be available from federal, state, and local
governments. |
| Public funding can be chancy, and often depends on the political and
economic climate of both the state and the country. However, public funding
can help programs deliver nutritious food programs, subsidized child care,
and other valuable services to the children in their care. |
| Some types of public funding include vouchers, contracted slots, TAFDC,
Community Partnerships, subsidized slots for children of teen parents and
children with special needs, federal and state tax subsidies, municipal
programs, food and nutrition programs, and local family child care systems. |
Private Funding
Private funding refers to any non-governmental source of funds, such as
fundraising events, raffles, private or corporate grants, or funding from
nonprofit foundations. Private funding is often less reliable and should not
be counted on for more than occasional sources of income for special projects.
Many grantmaking agencies restrict their grants to no more than three years
for a particular recipient.
Fundraising Events
Fundraising Events include concerts, charity auctions, fashion shows,
carwashes, etc. Before embarking upon a fundraising event, be sure you have
the “people power” lined up to organize and staff the event. If it will
take money to stage the event, be sure you will be able to recover all costs.
Check to be sure you have adequate liability insurance, and that your event is
in compliance with state and local laws. Also, events should be in alignment
with your center's philosophy and be appropriate for a program caring for
children.
Once committed, be sure to start publicity efforts well in advance, and
tap your parents to help spread the word. Finally, remember that profits may
need to be reported as taxable income.
Corporate Donations are usually directed at non-profit programs that
offer child care to their employees (perhaps giving that company's employees
priority for enrollment, or serving a certain number of employee families).
Talk to the parents in your program; they may be able to find out about such
grant programs from their corporate workplace. For more information, contact
us.
Additional sources of information include the public library and local
alliances of child care professionals or programs.
Foundations and Grants from community agencies usually require the
receipt of applications by certain deadlines; contact the foundation or agency
to find out their specific guidelines. We may be able to help you locate
promising foundations and community agencies.
Raffles
and Sales help many programs raise extra funds. Successful sales usually have
a specific purpose, such as "Help the Center Buy a Climbing
Structure!" Be creative in soliciting donations for prizes -- trips for
two, haircuts, auto tune-ups, etc. -- from local businesses. Parents can
donate children’s clothing, household goods, or “white elephant” items
from the attic to stock a yard sale. Written thank-yous and mentions of your
sponsors in any written publicity are the most likely way to ensure future
donations. Bake sales, candy sales, wrapping paper sales, etc., are limited
only by your imagination and your center volunteers' time and energy.
Loans
from a bank or private investor are another source of private funding. The
Small Business Administration, a federal agency, can provide valuable advice
on obtaining business loans. The SBA can be
reached at (800) 827-5722.
Montana Child Care Loan Fund
The Montana Child Care Loan Fund offers loans to licensed centers and
registered family and group daycare homes who might not otherwise have
access to commercial loans.
The Montana Child Care Loan Fund is a project of the Montana Child Care
Resource & Referral Network, in collaboration with the Call MCDC at (406)
728-9234 to get the loan forms, or download forms from:
www.mtcdc.org/forms.
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