Collecting Fees On Time

Early childhood programs often experience cash flow crises when parents start falling behind in paying their fees. In the Exchange best seller, The Art of Leadership: Managing Early Childhood Organizations, I have contributed an article, "Nine Steps for Effective Fee Collection," based on the ideas submitted by Exchange Panel of 300 members. This article from which I excerpt below, now can be read in its entirety on our web site at http://mail.ccie.com/go/eed/840

"Parents in two situations are most likely to fall behind in paying fees. First, there are parents who are unhappy with the program and therefore feel little motivation to pay their fees on time. Second, families who are experiencing financial difficulties may be too embarrassed to ask for special consideration and, as a result, start falling behind.

"One of the most effective steps you can take to avoid fee delinquencies is to maintain good relationships with parents. As director, you need to detect signs of disgruntlement early and deal with them before they get out of hand.

"Likewise, if a director is on good terms with parents, they will feel more comfortable approaching him when they are in difficult straits. Directors have found that when they show understanding and work out a formal schedule of deferred fee payments at the outset of a problem, they are far more likely to experience success in collecting fees than when they only find out about a problem after parents start falling behind. In addition, working with parents in advance builds loyalty, whereas confronting parents in arrears often leads to resentment." Contributed by Roger Neugebauer

The Art of Leadership is on sale this week. This comprehensive management text includes over 90 of the most popular Exchange articles on 18 topics such as leadership, staff appraisal, managing money, working with parents, advocacy, curriculum development, and marketing. To learn more about, and purchase this valuable resource, go to http://mail.ccie.com/go/eed/841

For more information about Exchange's magazine, books, and other products pertaining to ECE, go to www.ccie.com.

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