Wait… but why do I need to know about it? Easy-peasy, this may influence your search for the workplacement and a workplace. Be informed about conditions and how these models are different. There are private centres, owned by private owners and there are community-based centres, centre that belong to large businesses and centres that belong to the local government (Councils).
They are all different in ways they run their programs, yet they are all have to follow the National Regulations and National Law and National Quality Standards.
Some make profit, while others are called non-for-profit. Let me explain what it means in practical terms.
The primary difference between for-profit and not-for-profit early childhood education centres lies in their financial structure, mission, and how they use their revenues. In other words, how each type of centre handles its financials and what drives its operations—profit for shareholders versus reinvestment in educational quality and community service.
For-Profit Centres
- The primary goal of for-profit centres is to generate profits Imoney, money, moeny) for their owners or shareholders. They operate as businesses, focusing on providing early childhood education while ensuring that the centre is financially successful.
- In a for-profit centre, revenue generated from fees, government subsidies, and other income sources is used to cover operational costs, and any surplus (profit) is distributed to the owners or shareholders.
- Business decisions, including staffing, resource allocation, and service offerings, are often influenced by the need to maintain profitability. This could mean that they might focus on cost-efficiency to maximise profits, which can sometimes lead to differences in the quality or scope of services provided.
- For-profit centres are often focused on expanding their business by opening more centres or acquiring existing ones, which helps increase their market share and profitability. Yes, they are there for business and for making money, but also for providing a service, of course.
Not-for-Profit Centres
- Not-for-profit centres are mission-driven, often community or charity based, focusing primarily on providing quality early childhood education and care. Their goal is to reinvest any surplus revenue back into the centre to improve services, facilities, or staff development, rather than distributing it to owners or shareholders.
- All income generated by not-for-profit centres, including fees and government subsidies, is reinvested into the centre. This can include improving educational resources, enhancing staff training, upgrading facilities, or subsidising fees for families.
- Decisions in not-for-profit centres are typically guided by the centre’s mission and values, with an emphasis on providing high-quality care and education. Financial decisions are often made with the community’s best interest in mind, rather than prioritising profit margins.
- Many not-for-profit centres are operated by community organisations, charities, or government bodies. They often have a strong focus on serving the needs of the local community, including offering support to families in need or providing accessible and inclusive services.
Key Differences
- For-profit centres distribute profits to owners/shareholders, while not-for-profit centres reinvest surplus revenue into the centre.
- Not-for-profit centres are often more focused on their educational mission and community service, whereas for-profit centres balance this with the need to generate profit.
- Business decisions in for-profit centres may prioritise financial efficiency, whereas in not-for-profit centres, decisions are typically made with the goal of enhancing educational outcomes and community service.
- Centres that are for profit may pay you the award or above the award (Children’s services award) salary. They may offer you good conditions, e.g. longer leave or monthly booked RDO (rostered day off). Non – for-profit centres usually pay according to the award or VECTEA (if we are talking about kindergartens and preschools), which for early childhood educators may be lower. There are other perks in working for non-for-profit centre, such as Salary Sacrifice, paid Christmas break or even school holidays.
- I had placement and worked in community – based non-for-profit centres and private companies and the conditions are different. I prefer non-for-profit centres, due to the focus on children and families, yet, they often are poorly managed. At the end of the day, it all comes back to governmence and leadership, as QA7 defines it.
Here are some providers that are non-for profit
| Non-for-profit provider | Number of Centres | Notes |
|---|---|---|
| Goodstart Early Learning | 661 | The largest not-for-profit early childhood provider in Australia, formed by a consortium of charities. |
| KU Children’s Services | 130+ | Established in 1895, KU is one of the oldest not-for-profit providers, with a strong focus on inclusion and quality. |
| Bestchance Child Family Care | 50+ | Provides a wide range of services including early childhood education, focusing on supporting disadvantaged families. |
| Mission Australia Early Learning | 30+ | Operates early learning centres across Australia, often integrated with other community services. |
| Windermere Child & Family Services | 20+ | Provides early childhood education along with a range of family and community support services. |
| Uniting Early Learning | 60+ | Operates numerous centres across Victoria, NSW, and Tasmania, focusing on inclusive and accessible early childhood education. |
| YMCA Early Learning | 60+ | Operates centres across Australia, reinvesting profits into services and community programs. |
| ECMS (Early Childhood Management Services) | 60+ | Manages over 60 centres across Victoria, focusing on delivering high-quality early childhood education and care services. |
| Provider | Number of Centres | Notes |
|---|---|---|
| G8 Education | 400+ | One of the largest, operating centres across Australia. |
| Affinity Education Group | 180+ | A significant player in the sector with centres nationwide. |
| Guardian Childcare & Education | 110+ | Operates a wide network of centres across major cities and regional areas. |
| Explorers Early Learning | 50+ | Focuses on providing quality care with a strong emphasis on sustainability and innovation. |
| Nido Early School | 50+ | Focuses on Reggio Emilia-inspired early childhood education. |
| Mayfield Childcare | 39 | Operates long day care centres primarily in Victoria, Queensland, and South Australia. |
| Embrace Education | 24 | Provides a range of early learning services with a focus on community and quality care. |
Have you worked in any of these centres? What can you say about the conditions?
Kate
