Competing for tots: operating objectives and characteristics of for-profit and not-for-profit child care centres in the Pacific Northwest

Abstract

Child care services are provided by profit-oriented businesses, not-forprofit agencies and governmental units. This paper compares goal priorities and operating characteristics of not-for-profit and for-profit child care centres in parts of Canada and the United States. Directors of 292 Pacific Northwest centres responded to a survey about their financial and non-financial operating objectives.

The relative rankings of objectives were similar for not-for-profit and for-profit centres, and for centres in both countries. Non-financial objectives were rated higher than financial objectives. Satisfying the developmental and educational needs of children was the single most important operating objective. Providing access to eligible children was the next most important objective, particularly for not-for-profit centres and for those with government-subsidised children. The remaining objectives, in order of importance, were minimising costs, maximising utilisation, maximising revenues and maximising profits. Profit maximisation was ranked low by both not-for-profit and for-profit respondents. Not-for-profit and for-profit centres exhibited differences on a number of operating characteristics, services provided and employee benefits. Such characteristics were found to be associated with auspices (not-for-profit or for-profit) and location (US or Canada).

Results suggest that centres operating under both auspices are capable of altruistic behaviour. Differences in motivation between organisational forms were very small. However, variations in operating characteristics and services suggest that the objectives are achieved in dissimilar ways.