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Nonprofit daycare centers are run similarly to daycare centers that operate for profit. The major difference is that nonprofit daycares are eligible for grants and other funding, and they are exempt from state and federal taxes. Nonprofit daycares are also required to be governed by a board of directors made up mostly of parents. All of the money collected from parents and other sources must be invested in the organization and the service it provides to children and families. Start a nonprofit daycare by obtaining funding and making sure you comply with all of the guidelines set forth by the Internal Revenue Service (IRS).
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QuestionHow many members should the board have and can they be the same people who run the daycare?Community AnswerNo, it cannot be all of the same people who run the daycare. Some can be involved, but the entire board cannot be made up of them. There isn't a set number for a board, but consider having an odd number of people, so in the event of a vote, there isn't a chance of a tie.
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QuestionHow can I start a daycare out of my house?Community AnswerCheck with your local department of family and child services, or look up child care licensing and you should be directed to the appropriate website for your area. You will need to take a course and pass an examination, and become CPR certified.. Usually you will need at least one fire extinguisher, a carbon monoxide detector and a fire alarm in EACH room of the house, fire escape exits in every room, and appropriate child-proofing. You'll want to make sure your house has sufficient space to meet local requirements as well.
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QuestionCan I limit the number of kids in a nonprofit childcare to only 1-2?Community AnswerMany times you will need to have more children than that in order to be classified as a non-profit childcare center, but you will need to check about your individual state's requirements.
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Tips
- Work closely with an attorney and an accountant. These may be Board members or people you hire professionally. You will need to be transparent about all of the money your daycare earns, and how you spend it. There are reporting requirements and legal issues that will need your attention.Thanks
- Consider writing and posting a mission statement. Most nonprofit organizations use a mission statement to explain why they exist. Yours might focus on providing affordable childcare to all members of your community.Thanks
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Things You'll Need
- Articles of Incorporation
References
- ↑ https://bizfluent.com/how-4812417-start-nonprofit-child-care-center.html
- ↑ https://www.irs.gov/forms-pubs/about-form-1023
- ↑ https://www.councilofnonprofits.org/tools-resources/compensation-nonprofit-employees
- ↑ https://bizfluent.com/grants-nonprofit-daycares-5783.html
- https://www.childcareaware.org/
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Reader Success Stories
- "A very helpful step-by-step approach. It helped explain nonprofit centers and what they entail. It spoke in plain, simple language. I never heard of a nonprofit daycare center before this week. The idea of opening my own was always greeted with an emphatic "no," but this idea intrigued me. The easy-to-understand steps were quickly presented and then expounded upon. It made the idea of opening a nonprofit daycare center doable and eased some of my apprehension." ..." more
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"A very helpful step-by-step approach. It helped explain nonprofit centers and what they entail. It spoke in plain, simple language. I never heard of a nonprofit daycare center before this week. The idea of opening my own was always greeted with an emphatic "no," but this idea intrigued me. The easy-to-understand steps were quickly presented and then expounded upon. It made the idea of opening a nonprofit daycare center doable and eased some of my apprehension."
..."
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"Very helpful for beginners. This is a good start. There is other state-specific information that could or should be added. Also, it might be good to add what profit margin to shoot for, like an average 26% yearly profit or whatever."
..."
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"The article helped clarify some questions in regards to IRS filing status and grant opportunities."
"It answered many questions, and told me exactly what steps to follow. This article is great!"
"This gave me a clearer understanding of what to do and what to expect running a daycare."
