Welcome to the final installment of our open enrollment blog series! If you’ve been following along, you know we’ve covered so far what Open Enrollment is, if it’s time to reconsider your Sponsor, & how to choose the right CACFP Sponsor. So, let’s explore an exciting topic that could change the way you approach your CACFP program: let’s talk about CACFP Sponsorship alternatives.
Open enrollment is a great time to consider a sponsor alternative, as it provides an opportunity to evaluate your situation and look at new options that will better suit your daycare’s needs.
Why stick to the usual route when other options might work even better? Let’s explore these alternatives and see how they measure up!
Types of Contracts: Sponsored Centers VS Independent Centers
In the traditional sponsor model, a site participates on the CACFP contract of their Sponsor. So, sponsored centers are subcontractors working under the Sponsors.
Downsides to CACFP Sponsorship
- Dependency on the Sponsor: centers face risks like program and payment disruptions or losing CACFP funding due to sponsor issues beyond their control, such as sponsor contract termination, sponsor policy changes, or staffing problems with the sponsor.
- Limited Control: Sponsors control operations and processes including: record keeping procedures/deadlines, compliance determinations, and reimbursement schedules. Operating independently allows child care centers to tailor program management and operations to their needs.
- Power imbalance: the power dynamic is shifted heavily toward the Sponsor. Frequently this causes centers to feel helpless and frustrated, and some centers even feel like they are being taken advantage of.
- Quick access but long term challenges: While partnering with a sponsor offers quick CACFP access, the potential drawbacks often outweigh the initial benefits. Establishing a direct contract with the TDA takes slightly longer, but it provides greater control and independence in the long run.
The Best Alternative to CACFP Sponsorship: Establish Your Own CACFP Contract
Does getting your own contract sound overwhelming? Don’t worry—we’re here to guide you through obtaining and maintaining your independent contract.
Choosing to operate independently from a sponsor offers many benefits. Let’s discuss them.
- Greater Control and Flexibility Direct CACFP participation offers program autonomy. You can customize your program to streamline operations to meet your needs and according to your specific situation.
- Cost Savings A sponsor service typically charges 15% of the monthly reimbursement. Sponsor alternatives charge lower fees than the traditional Sponsor, allowing for significant cost savings.
- Quick Claims Processing You’ll receive your CACFP reimbursement payment quickly, usually within the first 7 business days of the month.
- All-Inclusive Solution Our best-in-class CACFP software, along with comprehensive program support and administrative services, makes participation easy and stress-free.
Our Specialized CACFP Services
At CACFP Solutions, we recognize the difficulties in overseeing the CACFP and the need for increased independence and effectiveness for daycares. We provide a variety of specialized services meant to help daycares like yours become independent of sponsors. From comprehensive software to expert consulting and tailored training, we have the tools & professionalism to help you thrive.
Our CACFP Support Team: ‘Sponsor Services’ without the downsides
Our dedicated CACFP support team is the core of our specialized services. With extensive knowledge of CACFP regulations and best practices, our team is here to provide you with customized assistance and professional guidance. Here’s what our support team offers:
- Professional Consulting: Our consultants are former state agency employees with over 30 years of experience in CACFP accounting & administrative services. They are ready to help you create & implement efficient processes tailored to your needs.
- Innovative Software: Our innovative CACFP software simplifies the administration of your program, so it’s easier to manage claims, track your compliance, and generate CACFP reports. Our support team is available to assist with any software-related questions or issues, so you will have a smooth and efficient operation.
- Ongoing Support & Resources: We offer continuous support through various channels, including phone, email, and online resources. Our team is committed to providing quick and helpful assistance whenever you need it.
Take the Next Step Today!
Get in touch with us to find out more about how our services may help your company handle CACFP on its own while also providing more control, financial savings, and specialized support.