Operating Finances

501(c)(3) Nonprofit Organization

Northland Early Education Center is a 501(c)(3) nonprofit organization. A non-profit corporation is a special type of corporation that has been organized to meet specific tax-exempt purposes. To qualify for Non-profit status, a corporation must be formed to benefit: (1) the public, (2) a specific group of individuals, or (3) the membership of the Non-profit.

Can a Non-profit make money? Yes; what we do with the money we make separates us from a for-profit business. Any profit we make CANNOT be returned to investors in the form of profits or dividends. Instead, the money is used to grow Northland Early Education Center and further support its mission.

Expenses

Northland Early Education Center operates with an approximately $2.2 million operating budget. An overwhelming majority of the expenses incurred come in the form of the salaries and benefits for the faculty and staff. In a typical year, salaries and benefits account for approximately 80% of all operating expenses. Because Northland Early Education Center staffs classrooms above state requirements, this percentage is higher than found at typical early childhood centers. Classrooms supplies and staff training typically account for 8% of the budget. Facility maintenance, repairs and utilities account for 7% of the typical budget, and food services account for the final 5% of the annual budget.

Income

Approximately half of the operating income needed to keep Northland Early Education Center operational comes from tuition payments paid by the parents/guardians of the children we serve. Fees for services such as therapy and early education from Missouri First Steps, Missouri Department of Social Services, Clay County Developmental Disabilities Resource Board, Platte County Board of Services make up 35% percent of our income.The remaining 10% of funds needed to operate Northland Early Education Center come from foundations, charities, businesses, organizations and individual donors. In other words, we must raise nearly a quarter million dollars every year so we can continue to provide crucial services to children in the community.