The Growth Fund combines the funding with the expertise early care and education programs need to not only identify their most critical business challenges but to actually tackle them.

Who can participate?
First Children's Finance selects early care and education centers to participate in the Growth Fund through a competitive process. Both center directors and their board chairs are involved in the process. Applicants are evaluated on their service to children from lower income families, stable operations, a commitment to quality care and fulltime programming.

Who are the Growth Fund advisors?
First Children’s Finance Growth Fund advisors are volunteers from business and early care and education. They are bankers, early childhood education professionals, and other business representatives.  Growth Fund advisors review applications and determine the level of grants for each participant. Advisors also share their knowledge and expertise throughout the three-year program cycle.

Business planning and implementation
During the first year, Growth Fund participants receive grants to develop their business plans to help them identify critical business challenges in financial systems, marketing, human resources, strategic planning, leadership, and facilities development. Each participant’s leadership team (center director and board chair) presents the center’s business plan to the Growth Fund advisors and makes regular progress reports.

Participants who successfully complete plans receive funding over two years to implement their plans. Past participants have used the additional funding to

1. purchase new computer equipment and software for more effective financial management
2. retain a consultant to develop new marketing materials and a comprehensive marketing plan
3. develop a new web page
4. deliver business related staff training and development
5. improve facilities to enhance the market appeal of the program
6. recruit and develop board members; and much more.   

Resources and connections
Growth Fund participants will discover new management resources. Center directors will be able to network and exchange ideas with their peers through training and gatherings that focus on critical business capacity topics.  Resource experts through our consulting pool will be available to work directly with the center to help build the center’s capacity.  In addition, Growth Fund staff serves as coach and facilitator for each program.

Leadership development, too
In addition to the business planning and implementation, the Growth Fund works to enhance the leadership skills of center directors and their board chairs. The engagement of each center’s board in business planning helps board members appreciate and support the work of management staff.  Furthermore, board members begin to think of themselves as leaders who -- in partnership with center directors  -- can advance their organizations.

Expanding the Growth Fund
The impact of the Growth Fund has been so positive in Minnesota, it is being expanded to North Dakota, South Dakota and Michigan with the help of child care resource and referral organizations and key funders in those states.

Local quality initiatives
In 2005, the Minnesota Early Learning Foundation (MELF) was created as a public-private partnership to identify and support the best ways to deliver quality early education to children in Minnesota who are not prepared with the skills they need for kindergarten. Through a combination of demonstration grants, research, evaluation, and family scholarships, MELF hopes to learn how to create a cost effective early childhood system.  Specifically, MELF, along with many public and private partners, is piloting a Quality Rating System in four targeted areas of Minnesota to empower parents with information about the quality of existing early care programs. 

How does the Growth Fund fit?
The Growth Fund complements MELF, which is focused broadly on ensuring children’s readiness for school.  The Growth Fund, on the other hand, is focused specifically on supporting early education providers in developing management practices that will help them achieve that goal.  Research shows that early education businesses with sound fiscal management help children and families achieve better outcomes.  A Growth Fund investment may help a center in a pilot area prepare for a higher quality rating by helping it address financial and management gaps.

Contributors
Growth Fund contributors share our commitment to bringing viability, quality, and access to early care and education for all children:

• The McKnight Foundation
• Jay and Rose Phillips Family Foundation
• Bush Foundation
• State Farm Insurance Companies