By Sarah Farquhar
copyright ChildForum.com

Hi, can you please help me and my kohanga. I don’t know how or where to get funding for an outside playground!!!! This is my first time trying to get a grant.......I'm really on the fundraising committee but I just found out there is no funding committee so I'm giving it a go         

When ChildForum received this request from a kohanga for information on raising funds we realised there isn’t a single up-to-date early childhood resource available that brings together all the information needed. So we’ve sourced this for you and added helpful ideas along with some thinking points specific to funding and promotion. 

Why Fundraise

There are two main funding streams for all licensed early childhood services:

1. Family contributions including fees and donations, and
2. Government contributions including subsidies and grants.

But what if you have a special project, such as playground development or putting in sun shade for the summer and you don’t have the financial reserves to cover it? You may not think it fair to increase parents’ fees and government subsidies are fixed.

Generating a third funding stream then becomes a priority. The third funding stream is fundraising.  

In a tight economy you might choose to seek to increase the percentage of funds you receive through fundraising if you will lose parents who can not afford a fee increase or if you experience a drop in government funding (as some services will when the 100% registered teacher rate of funding is dropped).

The Ministry of Education Governance and Management Support Tool (2009) for ECE Services states that services should:

• Identify fundraising targets and plan fundraising events.
• Obtain information about available grants and apply for those which are relevant.

Note: your service's constitutional status will affect your eligibility.

Not-for-profit early childhood services are in a strong position to grow this third funding stream. Not-for-profits can apply for community grants and donations. People and organisations making a donation to a recognised charity can receive a tax rebate. The Ministry of Education offers some grants only to community-based ECE services, and many community-based ECE services operate from crown or council land.

The Link between Fundraising and Promotion

Private and commercial early childhood services can not register as charities or apply for Incorporated Society status. However they can engage in activities for promotion that in turn will boost the number of enrolments and therefore revenue, for example through letter box drops, and providing a float in a community Christmas parade. Private and community services can organise events for parents, children and community members, and keep any profit made (less tax) e.g. from a kid’s disco, a skip-a-thon or a fun-run.

Some private early childhood services also operate an early childhood centre that is operated separately as a charitable trust. They do this because it is good for image-building and gives access to information and grants (e.g. via the Ministry of Education) that are only available to community-based early childhood services.

Fundraising can be approached through

1. cake stalls, raffle tickets and the like,
2. approaching local churches, service clubs, and businesses, or
3. applying for grants from funding agencies.

These approaches to fundraising will be covered in this article alongside some ‘outside of the square’ ideas for boosting funds and helping with promotion. The need to think ethically is also raised here for the reason that who you apply to for support, what conditions are placed on the financial support, and whose funds you accept may destroy or be good for the reputation of your service.  

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