6.2: Getting Started with Program Funding

Before opening or expanding an early childhood program, administrators must have a clear understanding of how the program will be funded. Program funding is not just about having enough money to open the doors—it is about creating a sustainable financial plan that supports children, families, and staff over time. Without thoughtful planning, programs may struggle with staffing, maintaining quality materials, or even staying open.

Getting started begins with identifying the program’s mission, goals, and target population. For example, a program serving working families needing full-day care will have different funding needs than a part-day preschool program. Similarly, programs serving low-income families may rely more on subsidies and grants, while private programs may depend heavily on tuition. These early decisions shape the entire financial structure of the program.

Administrators should also begin developing a preliminary budget that includes both start-up and ongoing costs. This includes estimating expenses such as rent or mortgage, utilities, staffing, classroom materials, licensing fees, and insurance. At the same time, projected income sources should be identified, even if they are not yet secured. This process helps administrators see the “big picture” and identify any potential gaps in funding early on.

Another important step is creating a financial timeline. Not all funds are needed at once, and not all income will come in immediately. Understanding when money is needed versus when it will be received helps prevent cash flow problems. Starting with a strong financial foundation increases the likelihood that the program will be stable, responsive, and able to grow.

An important, and often overlooked, part of program funding is recognizing that fundraising is not the responsibility of just one person. In early childhood programs, everyone involved in the center plays a role in supporting funding efforts, either directly or indirectly. This includes administrators, educators, support staff, families, and even community members connected to the program.

For example, volunteers may assist with fundraising events or community outreach. Staff members might give tours to prospective families, helping them see the value of the program and ultimately supporting enrollment. An enthusiastic family member might share positive experiences with others, helping to build the program’s reputation and attract new families. Some individuals may have specific skills, such as writing grant proposals or organizing events, which can directly contribute to funding efforts.

In larger programs or organizations with multiple sites, there may be the ability to hire a full-time or part-time fundraising specialist. However, many early childhood programs do not have this capacity. Fundraising can require specific knowledge, time, and resources, and it can become expensive if outsourced. Because of this, programs often rely on a shared approach, where responsibilities are distributed across the team.

As an administrator, it is important to create a culture where everyone understands their role in supporting the program’s sustainability. This does not mean that every person is formally “fundraising,” but rather that they are contributing to the program’s success, whether through building relationships, maintaining quality, supporting enrollment, or sharing the program’s strengths with others.

Keeping staff and families informed about the program’s goals, needs, and successes helps build this shared responsibility. When everyone feels connected and invested, they are more likely to support efforts to sustain and grow the program. In this way, funding becomes a collective effort rather than an individual task.