Costs and Expenses

The center's annual expenses will include:

• Staff salaries and benefits
• Payroll taxes (federal, state, and sometimes local or city)
• Rent or mortgage
• Utility costs, including heating and cooling, electricity, telephone, and hot water
• Building repairs and maintenance
• Educational supplies and equipment
• Food and kitchen supplies
• Staff training and development
• Advertising and marketing costs
• Insurance
• Cleaning
• Office supplies
• Other: legal fees, transportation, organizational memberships (e.g., NAEYC)

Buying materials and supplies in bulk can greatly reduce costs. Some centers may form "buying co-ops" to order supplies together. Many centers control costs by requesting materials through donations, and by purchasing items second-hand (making sure they are in good, safe condition, and are not unsafe products that have been recalled).