For the year 2003, Sunshine had income of $396,000 from daycare/preschool payments and from government reimbursements for food and daycare provided. In addition to this income, Sunshine received grants of $45,000 and fundraising & donation income of $9,000. These grants and donations have covered costs for supplies, equipment, books, special enrichment programs and some of the school’s administration expenses. Grant funding, in general, does not cover labor costs or debt service costs.

The following example will give you an idea of how every dollar received for daycare/preschool services is spent. The amount spent in excess of the $1.00 in this example is left to be covered through fundraising efforts.

$0.90 payroll and educational materials for staff
$0.08 debt service on 2 loans
$0.04 utilities
$0.06 food
$0.06 snow removal, lawn mowing, and building maintenance
$0.03 insurance
$0.03 recordkeeping, financial statement audits, postage, advertising
$0.01 transportation
$1.21 total costs

As you would imagine, Sunshine’s largest expenditure is for labor. Consistently, about 70% of income from all sources has been used to cover labor costs for the past several years. Like all other licensed educational facilities, Sunshine is required to adhere to specific teacher/child ratios. Sunshine also separates children into separate rooms by age and developmental level which aids in the delivery of a program that includes age appropriate toys and learning opportunities to each room and limits the spread of illness within the center. However, at the same time this does not allow Sunshine to economize much on staffing levels.

The second largest expenditure Sunshine has is for debt service. Sunshine has 2 loans totaling just over $414,000 that resulted from the original purchase of the property from the Cressey’s in 1989 and the subsequent improvements made to the property both in 1989 and again in 1998 with the expansion project. An extensive fundraising effort and CDBG matching grant funding received in 1998 paid for a majority of the project, but a loan was taken out to cover the remaining balance. Sunshine cash flow is impacted every year as it struggles to make principal and interest payments of just over $31,000 per year on these loans. This is a major reason that Sunshine is so dependent upon donations from the community. Sunshine needs these donations to maintain a positive cash flow. Unless large donations are received, Sunshine will be struggling to make loan payments for the next 35 years.

Many people in reading this article may state that Sunshine should just increase its rates to improve its cash flow. This approach has been explored in depth by the Board of Directors, but an increase in rates is not the solution. Sunshine must maintain competitive childcare rates in order to maintain enrollment. The Board is sensitive to the needs of parents and feels that it must continue to provide quality care at an affordable price.

As announced, 25% of the proceeds from the KMAQ Radio-telethon will be set aside to establish scholarships for area youth that are unable to afford daycare/preschool. These funds will be used to assist parents that are having a hard time making ends meet. This will also help Sunshine keep enrollment numbers from dropping. The staff at Sunshine often encounter parents who are torn as they are forced to take children out of care at Sunshine due to a reduction in government subsidies or ongoing financial constraints. All children who enroll in daycare at Sunshine automatically receive preschool as a part of their daycare. Many children who are thriving at Sunshine are taken out of the program due to limited financial means. A local school administrator (Suzanne Batey) has been quoted recently with a startling statistic that several children are still coming to Kindergarten without receiving any preschool education. Sunshine hopes to set aside enough money to help lower that statistic.

The rest of the proceeds from the radio-telethon will be used to help Sunshine meet its other operational expenses. This will make up the difference that was seen above ($1.21 spent with every $1.00 received.)

Sunshine was started in 1973 by a group of Maquoketa leaders who felt that there was a need for a quality daycare in Maquoketa. The history of Sunshine can be found on its website www.sunshinechildren.org At the time it was founded, a Board of Directors made up of individuals from the community was selected. The Board decided to establish the entity as a non-profit corporation under the name Child Development, Inc. It was approved by the IRS as a 501c3 at that time which allows for all donations to be tax deductible to the donor. Child Development, Inc. was the formal legal name, but the Board decided to run itself under the name Sunshine Preschool and Daycare Center. Several community leaders have served on the Board through the years. The list is extensive, but includes community leaders such as Suzanne Batey, Pam Rosenberg, Gary Drew, Alice Hager, Dean Tilton, Brad Koranda, Clay Romer, Leslie Lawson, Sheri Melvold, Phil Tabor, Mona Reichling, and Charlie Dietz. Each Board member serves a 3 year term and is responsible for overseeing operations, including the hiring of a Director to oversee day-to-day operations of the facility. The Directors are actively involved and perform all of their duties voluntarily without pay. For 29 years, Nancy Moore reported to the Board as the Director of Sunshine. It was a common misconception that Nancy had an ownership interest in the facility, when in fact she did not. However, that speaks to the personal commitment that Nancy had to Sunshine. She took care of the children and facility as if she owned it. Sunshine is, in fact, not owned by anyone. It is owned by the community and is run by representatives of the community selected by their peers. Since Nancy’s retirement in 2002, two Directors have served in that capacity. The current Director at Sunshine is Jennifer Connolly – a Maquoketa native.