Preschool running at a loss

[Ilovehotchoc]

I work for a preschool and last financial year we ended in a significant deficit. Looking at the profit and loss forecast the same thing will happen again year on year - income isn't covering expenditure. Is there anyone here who can offer any advice? We are run by a Committee of parents. TIA.

Not sure if this will help, some years back our rural pre-school applied to Children in Need and they were given 3yrs rent and staff wages. It might be worth a try.

Our preschool charges a discretionary top up for 3 and 4 year holds that most parents pay - could you do this? It is very oversubscribed though.

Thanks, will try Children in Need although we are wary of publicising too much.

Are you allowed to charge a discretionary top up for 3 and 4 year olds? Our local council is hot on this at the moment....

I don't currently have any children in pre-school, but things that have helped our local one in the past include:

• Setting the fees for 3+ at the same level that you would get from funding. This helps stop the situation where parents use their 15hrs funding wholly or partly at another pre-school, knowing that you will only charge a lower rate for extra hours instead of the full rate charged by the other pre-school.

• Asking around to see if anyone you/the staff/other parents work for a company who have a matched fundraising scheme. Some of the bigger companies used to have a policy where if an employee raised money for a good cause, the company would match that amount. So raising £50 meant you actually got £100.

-If you are registered as a charity, you will have access to more grants from the community. Many of the places offering money will stipulate that you must be a charity in order to benefit.

• Ask for donations of food for pre-school snacks. If you have to buy fresh fruit every day, the costs can spiral. Parents may be willing to bring in a small bag of fruit to share out.

You are not allowed to charge any top up to those children receiving their 15 hours of funded sessions. It has to be free.

We ask for a voluntary contribution of £1 per week to go towards cooking ingredients and daily snacks, but it is very much a voluntary contribution, so some pay and some don't.