Coping with the Fiscal Cliff: Diversifying Revenue Funds

05/25/2023

Coping with the Fiscal Cliff: Diversifying Revenue Funds

It is not light that we need, but fire; it is not the gentle shower, but thunder. We need the storm, the whirlwind, and the earthquake.
Frederick Douglass, 1818-1895, Abolitionist and Statesman

In response to our May 19 message about the fiscal cliff as American Rescue Plan Act (ARPA) funds come to an end, Jason Nitschke, of Zero to Five Montana, wrote:

In Montana, we have been working to support the agenda of increased public support of families and providers. However, it is critical for providers and childcare support organizations nationwide to start talking about how providers themselves can diversify revenue by modeling how K-12 public schools generate revenue to support operations. Revenue diversification strategies (aka: selling other stuff) is the fastest way for providers to offramp from stimulus funds. Raising rates is one thing. Diversifying to make money other ways is another. Our role as support organizations must include messaging that bringing non-public, non-grant, non-foundation-based revenue into programs is critical to their own viability. While we support increased public subsidy, that message is conditioning providers to believe that public funds are the solution and are imminent. They aren't until they become more than talk. Empowering childcare providers to be fully self-sufficient through achieving scale and/or generating revenue beyond tuition is a message our organizations must start to send. I look forward to the discussion!

We would love to continue hearing from you about your strategies and perspectives regarding current funding challenges. Please share your thoughts in the comments.

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