ChildcareCost
Programs & Policy

Family Child Care Network

A shared-services organization that supports independent family child care providers with training, business services, and substitute teachers.

A family child care network (also called a shared-services alliance, staffed family child care network, or hub-and-spoke network) is an organization that supports multiple independent family child care providers by centralizing back-office services, training, and quality supports. Family child care is economically fragile: providers typically operate as sole proprietors out of their homes, caring for 6 to 12 children, and the small scale makes it difficult to afford bookkeeping, payroll services, marketing, substitute coverage, and curriculum resources. Networks address this by offering shared services at a central hub that serves dozens of affiliated providers. Typical network services include: centralized enrollment and waitlist management; billing and subsidy payment processing including CCDF paperwork; professional development and coaching to pursue CDA credentials or higher degrees; substitute caregivers who can cover when a provider is sick or needs a vacation; business coaching including pricing, tax preparation, and CACFP food program enrollment; curriculum materials and learning assessments; and access to benefits like health insurance pools. Networks operate in several states including All Our Kin in Connecticut and New York, Early Learning Ventures in Colorado, and BUILD-supported networks in multiple states. Research from the Erikson Institute and the Opportunities Exchange shows that providers participating in networks have higher retention, higher quality ratings, and higher enrollment than unaffiliated providers. Networks are also a tool for addressing childcare deserts because they can recruit, train, and license new family child care providers in underserved communities more efficiently than individual providers can enter the market alone. Federal CCDF quality funds can be used to support networks, and several states have used American Rescue Plan Act childcare stabilization dollars to seed new networks. Networks that include Head Start family child care partners also blend federal Head Start Performance Standards with home-based flexibility.

Related Terms

Childcare Desert- An area with insufficient licensed childcare supply relative to the number of ch...Child Care and Development Fund (CCDF)- The primary federal funding source for childcare subsidies for low-income workin...Dependent Care FSA- A tax-advantaged account allowing employees to set aside up to $5,000 pre-tax pe...Child and Dependent Care Tax Credit- A federal tax credit offsetting a percentage of childcare expenses for working p...