ECE 221 Week 5 revised

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Funding Your Program : 

1 Funding Your Program

Funding Your Center : 

2 Funding Your Center Start-up Capital Money needed before the program begins and money needed to support initial program operation until tuition and other funds are sufficient to support the ongoing program operation Should cover 3 months before operation and first 6 months of operation minimally

Where to get Start-Up Funds : 

3 Where to get Start-Up Funds Profit sector Self Friends and relatives A private investor Small Business Administration loan (SBA loan) Banks

Where to get Start-Up Funds : 

4 Where to get Start-Up Funds The non-profit sector SBA loan - banks Corporate foundations Private foundations Community development block grants Child care block grants to states Other federal or state grants Donations

Where to get Start-Up Funds : 

5 Where to get Start-Up Funds Philanthropic groups Kiwanis Lions United way Community chest Local arms of corporations

Sources of Operating Funds : 

6 Sources of Operating Funds Operating funds Money needed to operate an on-going program

Sources of Operating Funds : 

7 Sources of Operating Funds Profit sector Tuition Ancillary income Venture capital - for expansion Private stock offering Public stock offering Banks Insurance companies

Sources of Operating Funds : 

8 Sources of Operating Funds Non-profit sector Tuition United way Private foundations Corporate foundations State and federal government programs

How to Find Out About Funding : 

9 How to Find Out About Funding Bankers SBA Accountants Lawyers Library Going to conferences Professional organizations Chambers of commerce R&R

Other Important Points : 

10 Other Important Points Rely on tuition-it is your bread and butter All else should be icing on the cake Non-profits should have everything in place that will help obtain funding: Incorporation 501 C (3) status License Representative board not compensated

Other Important Points (cont.) : 

11 Other Important Points (cont.) Non-discrimination policy Track record Willing to cooperate in fundraising campaign of local community resource Business plan Good financial records Personal sales ability and writing skills

Other Important Points (cont.) : 

12 Other Important Points (cont.) Profit sector Business plan Good reputation Track record Personal sales ability and writing skills

Operating Funds : 

13 Operating Funds Tuition Set rates that are competitive High enough to attract good staff Reasonable for the type of program Affordable for community Sufficient to make money-profit or surplus Use a break-even analysis (will be discussed later)

Operating Funds-Tuition : 

14 Operating Funds-Tuition Decide on discount policies Decide on vacation policies Sliding fee scale? When to raise tuition Remember to consider vacancy rates Remember to consider bad debts Set Policies for payment up front Set collection procedures and policies Know what to do if parents don’t pay

Operating Funds (cont.) : 

15 Operating Funds (cont.) Community resources Will give in-kind Will give cash Will cover special operational needs

Operating Funds (cont.) : 

16 Operating Funds (cont.) Foundations-a fund administered by trustees and operated under a state or federal charter Know the purpose of the foundation Corporate and private foundations exist Get to know local foundations first Know exactly what you want Everyone wants to fund successful not faltering organizations

Operating Funds (cont.) : 

17 Operating Funds (cont.) Government funding Available to programs serving low income families or children with special needs Stay up with state and federal funding legislation Know legislators Know decision makers Write grants according to instructions

Operating Funds (cont.) : 

18 Operating Funds (cont.) Donations Not a huge source Tactics employed Membership Naming wings or libraries etc. for donors Use of phone book Buy lists

Reporting to Funders : 

19 Reporting to Funders People or organizations giving money want and need to know where the money is going Accountability is essential Follow reporting procedures Go above and beyond

Types of Reports : 

20 Types of Reports Center enrollment report Budget comparison report Balance sheet Income statement Annual reports Monthly programmatic reports Follow reporting requirements exactly Use technology to prepare reports more easily and more professionally

Grant Writing : 

21 Grant Writing Review samples of grant applications and their instructions The key is following the directions exactly Know exactly what you want and what you propose to do when you get the funding you are requesting