Team 1

Assignment: Design the Organization

• What does it do?
• How is it funded?
• How does it play an advocacy role?
• How do child care providers engaged so that they want to join?

Report Out

We talked about creating a trade organization.
There would be a statewide and local affiliates.

Our mission:  to create opportunities … (reads)
For all licensed providers.

Statewide Organization
The statewide organization would be developed in phase 1.
Contract management; a contract with the PFA initiative.  Negotiate group rates for insurance.
There is a need for a tool to do a cost benefit analysis for providers to see how this would save them money.
Technology is done at the state level, and a potential hook to get providers in early.

Advocacy
Promoting issues relating to the child care business.
Not just for providers serving low income kids, but also issues that would appeal to other providers.

Products that the organization could get for its members
Instructional material, diapers, energy efficient appliance playground equipment.

Training at a state wide level.
Referrals to local organizations.

Local Organizations
We want to make sure not to duplicate what’s already out there.
Local organizations could bubble up.
Our staff would build capacity in communities where these services don’t exist.

Business skills - marketing, materials develop, bookkeeping, fee collection

There could be pools of consultants.

HR staffing pool is a local activity
Bulk purchasing at the local level.
OD is another area of business technical assistance, limited hours or on a fee for service basis.

Subsidy and grant administration is a function we were hoping to get outside support with to help providers.

Funding
Membership fees at one or both level (state or local)
Fee for service for people might want
Grant funding from foundations is required to start this off.
We need to capture corporate dollars.
We could have a branded credit card that could capture money for the organization.
We want sustainable funding.

Engaging providers
Creating a cost benefit tool
To communicate:
Good will by being affiliated with each, and seeing themselves as supported professionals
A big bang for buck product - technology, cell phones, or cheap long distance.

This would be the first professional organization that crosses all types of care.

You would have to find a way to test the market before you start.

Some providers might not see the benefit to their organization.  It would take time for them to see the value.

Team 2

There are a lot of similarities.
We have a 2 tier structure as well, with a regional chapters that are part of a statewide organization that is an umbrella.

The regional could be a non-profit or a partnership between existing organizations.  There an R&D and a Y that together manage a state contract.  They can guarantee that payment will be on time whether or not the state pays on time.

We saw the regional organization providing contract management for big initiatives, or it could be state contractors coming together and agreeing.  Or it could apply to be a Head Start grantee when there are openings.

It would provide training and cross training for members, fiscal, admin, HR.

Facilities development and management.  There could be shared resource staff for special expertise.

An provide some marketing and branding, like the Unified Western Grocers model.

The people who are members agree to adhere to certain standards.  By saying you’re part of this group people know you are committed to a certain level of quality.

The statewide org would do the things in red, where the size of the sate would be really advantageous.

Data management and design of data systems.  Developing stand protocols for data, so we don’t have many different ways of capturing our data.
Purchasing, we could get really good deals if we do it on a statewide level.  But sometimes there are local things.

Developing a self-assessment tool on the business side.
Marketing and branding, and support for advocacy.  There are a lot of sensitivities here.  The advocacy role would develop organically.  We don’t want to give the impression hat we’re taking over the advocacy.
We talked about filling gaps and encroaching on others.

Funding for the regional organization - percentage of fees from managed contracts.  These orgs would pay a membership fee to the state.  We would also use foundation and government money.  A percentage of purchasing, you hold some of the discount back to fund the organization.

Fees could be charged to outsider who wanted to participate in the purchasing pool. 

It is important to start partnerships with all of our friends to make sure they see what the gap is that we’re trying to fill.  Maybe this entity could perform some admin functions for some of the organizations listed here (purple).  We would pick something that would have a big bang and start there.

Governance
We don’t know if it would be a new non-profit.  But when you’re managing money for others you need good oversight.

The statewide org would start and set up the systems.  This was the same in both groups.

Discussion
Marie:  Where does this go?  It’s safe to say that LIIF is interested in supporting this effort further.  We need to think about fund development for that, so we can do some more gathering to do some more thinking. 
What are the next steps?
What would it take to enter the pre-development phase?
We’re happy to

Another way to do it is to show how it works at the local level.
It might be a dual thing - have the state start at the same time.

When I take out the services that others do, I’m left with administration.  We have to do some cost benefit analysis, pilot projects, to learn.