Entrepreneurship in Child Care Services

Entrepreneurship in Childcare Services 4 (2+2)

Lesson 22 : Funding the programme

Sources of Funding

A wide range of sources or funding exists.

• Tuition: when the center is largely dependent on tuition for operating funds it is necessary to balance
  1. The number of children to be enrolled.
  2. The amount of tuition parents are expected to pay.
  3. The amount of money needed for the programme.


• Community Resources:
  Many child care centres are subsidized by local charities and church groups who provide internal contributions such as free rent, coverage of utility bills, volunteer help.


• Foundations:
  A foundation is a fund administered by trustees and operated under state. Funds of foundation are made available to child care centers for major equipment purchases or for a special project.


• Government Funding:
  Government at central, state and local levels have a commitment to the care of children of working mothers. However, the emphasis or priority is given to disadvantaged and special children.


• Loans:
  The director may take a loan to improve child care center facilities. The loan giving organization may require information like
  1. Reason for asking loan,
  2. Business plan
  3. Document that explains the center to the funder,
  4. The document includes – an overview of the center, its purpose and basic operation procedures. It also includes staff, procedures, inventory of major equipment etc.
  5. A good business plan will allow the funder to assess whether funds granted will be used wisely.