EDEC 264 U2 CH6
After the start-up period of a child care center, it is not necessary to conduct fund drives. (T/F)
False
Costs for infants and toddlers are less than costs for preschoolers because they don't need as many toys. (T/F)
False
Foundation money is often available to proprietary centers. (T/F)
False
Foundations provide a major amount of the funds used by child care centers. (T/F)
False
Some ways in which centers could experience unexpected diminishing of funds are ___.
Lawsuit, poor collections, embezzlement, and fraud
Block Grants, such as the Child Care and Development Grant Fund (CCDF), have been used to
Start up new centers, Improve the affordability and quality of existing centers, Improve the quality rating in the state's QRIS
A foundation is a fund administered by trustees and operated under state or federal charter. (T/F)
True
A staff member who records more hours than actually worked is guilty of fraud and could be prosecuted. (T/F)
True
Directors should determine the priorities of a foundation before seeking funds. (T/F)
True
Documenting training of staff is an effective way to reduce the likelihood of being sued. (T/F)
True
Tuition is the major source of income for many centers... (T/F)
True
in a child care center, accounts receivables consists primarily of ____.
Tuition owed by families
When reviewing a budget comparison report, what can the reader determine?
Cash flow problems and possible ways to adjust budget if necessary, Expenditures relative to projected expenses, Income relative to projected expenses
To minimize lawsuits, ____.
it is important to train staff on children's safety and security and appropriately document that training occurred, follow a regular schedule of checking equipment, Develop and strictly follow policies regarding access to the center and who may take children from the center
Before beginning a major fund-raising campaign, the director or board chairperson must ensure that ___.
resources are available to notify donors that their contribution has been received, resources are available to keep accurate records, the center has an IRS exemption
When the center is largely dependent on tuition for operating funds, the budget should have at least a _____ vacancy rate built in.
3%-8%
A good way to make money for major projects such as renovating a building is to ___.
Apply for a bank loan
Centers that begin operation without a sufficient funding base ___.
Are in fiscal trouble from the outset
In preparing reports for funders, directors should use highly technical terms so that the funders will recognize the seriousness with which the reports are written. (T/F)
False
Long-range fiscal planning should not be done in child care programs because it is impossible to predict what will happen in the future. (T/F)
False
Operating funds include start-up expenses and the funds necessary to run the center. (T/F)
False
Sufficient funds to provide quality child care for all children enrolled in child care programs are available from government funds, United Way, tuition, or a combination of these. (T/F)
False
The SBA (Small Business Administration) provides start-up income for new centers. (T/F)
False
When a center is sponsored by the United Way and serves children from low-income families, the United Way will usually pay whatever expenses the center cannot meet. (T/F)
False
Grants, Small Business Administration websites and The Foundation Center's website are all excellent sources of
Funding
Which of the following is NOT one of the recommended questions the SBA recommends that any prospective center developer should ask?
How much profit can I expect in my first year?
All board members should understand that they are expected to ____.
NOT. allocate to the child care center a major portion of the dollars they give to charitable organizations, NOT attend meetings, but not contribute dollars since they contribute time NOT contribute more than other citizens or groups since they are expected to demonstrate their support for the center
Funds are most likely to be available from foundations for ___.
One time purchases
Examples of fixed cost expenses include ___.
Rent and utilities, salaries and benefits, and insurance
What does RFP stand for?
Request for Proposal
Some companies offer a flex plan that ____.
Sets aside before-tax income for child care
When you start up a for-profit child care center, you___.
Should open up a business checking account
The director should prepare or receive an accounts receivable report ____.
Weekly
One realistic way to assist families who enroll two children at a center is to offer ____.
a second child discount
In determining the amount of funds needed to run a program, a (n) ___ is useful.
break-even analysis
A budget comparison report shows budgeted spending for the year as well as actual spending for the year-to-date; this report is also called a __.
budget variance report
Early Head Start programs service
children from low income families prenatal to three, pregnant women, families of pregnant women
The primary expense difference between an infant classroom and a toddler classroom stems from
diaper and formula costs
One cost-effective way to eliminate fraud is ____.
establish a policy that cash will not be accepted for tuition payments
In a center serving infants, toddlers, and preschoolers, the enrollment report clarifies for board members ____.
how many infants and toddlers will be moving to the next age group during the coming months, how many children in each age group are on the waiting list, how likely it is that the center will maintain full enrollment based on the current waiting list
The greatest difficulty in obtaining outside funding is ___.
locating the appropriate funding sources and writing a persuasive proposal
When a center has an IRS exemption as a charitable or educational nonprofit organization, contributions given to the center ____.
may usually be deducted by the contributor as an income tax deduction
The director should prepare or receive a budget comparison report ____
monthly
When a center responds to an RFP, the deadline listed in the RFP ____.
must be followed
Directors who are successful with fund-raisers____.
promote the benefit to be derived from the contributor's dollars
Some centers help parents who are unable to afford tuition by establishing a scholarship fund
soliciting contributions from the communmunity, asking foundations or agencies to support full or partial scholarships, adding a little more into parents tuituions
One critical issue facing the preschool system is
whether public schools should take over education of the Pre-K program or leave that to the centers that already exist.
