Access to quality, affordable childcare is a growing challenge for working families across the United States. The U.S. Department of Health and Human Services recommends that families spend no more than 7% of their household income on childcare. In Wisconsin, however, families with two incomes spend about 14% of their income on childcare, and single-income households spend about 44%.
Cost is only part of the challenge. Even when families can afford childcare, it can be hard to find an available spot. More than half of the children in Wisconsin who need care do not have access to a licensed childcare provider.
Many childcare providers struggle financially. Most families cannot afford to pay the full cost of high-quality care, so providers often operate with very small budgets. As a result, childcare workers and administrators are often paid low wages and receive limited benefits. These conditions make it difficult to attract and retain workers, leading to staffing shortages across the state.
Cooperatives cannot solve the larger problems caused by lack of public investment in childcare. However, they can offer community-based solutions that improve wages and working conditions for childcare workers, support the long-term success of childcare providers, and help communities meet local childcare needs.
Types & Examples of Childcare Cooperatives
Cooperatives in the childcare sector take shape in a variety of ways depending on ownership. Here are some examples of how childcare cooperatives can be structured:
Childcare Worker Cooperatives
Childcare Worker Cooperatives are childcare businesses that are owned and democratically governed by the workers themselves. By sharing ownership and decision-making power, worker cooperatives can help childcare providers improve job quality and gain greater control over their working conditions and business operations.
Beyond Care Childcare Cooperative was launched in Sunset Park, Brooklyn in June 2008. With the support of the Center for Family Life, 17 immigrant women came together as founding members to conceptualize, plan and launch a membership cooperative business. The business plan was based on models of immigrant-owned cooperatives that have been successful in helping immigrant men and women increase income, build internal leadership and provide mutual support.
Employer Led Cooperatives
In communities where there are not enough childcare providers, employers can work together to create a childcare cooperative. This type of cooperative helps increase access to childcare for employees and their families. Member businesses typically provide start-up funding, financial support, or other resources such as space, equipment, or services. Childcare professionals and administrators are responsible for running the center and managing the day-to-day operations.
Energy Capital Cooperative Child Care
Founded in 2016 by a coalition of eight employers, Energy Capital Cooperative Child Care was created to address the critical need for quality childcare for local families and workers. Today, the non-profit provides childcare through a unique community partnership that brings together businesses, families, and local organizations to support children and strengthen the region.
Multi-stakeholder Childcare Cooperatives
Multi-stakeholder Childcare Cooperatives bring together different groups who have a stake in the childcare program, such as parents, childcare workers, employers, and community members. Instead of being owned by just one group, decision-making and ownership are shared among these members.
This model combines some of the benefits of worker cooperatives, such as giving caregivers a voice in how the business is run, with the benefits of parent involvement and support from the broader community.
Multi-stakeholder cooperatives can often access a wider range of funding and resources. Depending on how they are structured, they may be able to operate as nonprofit organizations, making them eligible for grants, donations, and certain tax advantages that are not typically available to for-profit businesses. This can help support affordable, high-quality childcare while creating more stable and sustainable programs.
Viroqua Childcare Cooperative
The owners of the Viroqua Children’s House sold the business to staff, families, and community members to start Viroqua Childcare Cooperative and preserve childcare services in Vernon County. The co-op will maintain the Montessori-inspired approach for preschoolers with an emphasis on outdoor play and nourishing food.
Parent-led Childcare Cooperatives
Parent-led Childcare Cooperatives are historically the most common type of childcare cooperative. In these cooperatives, parents work together to create and run a childcare program for their children.
Parents are usually involved in more than just enrolling their child. They may help in the classroom, serve on committees, make decisions about the program, or help with other tasks needed to keep the cooperative running.
Parent-led childcare cooperatives can take several forms:
- Parent Participation Cooperatives: Parents regularly volunteer in classrooms and help with daily operations.
- Parent-Owned, Professionally Staffed Cooperatives: Professional teachers and caregivers provide the childcare, while parents oversee the cooperative and make major decisions.
- Cooperative Preschools: Parents play an active role in both the educational program and the operation of the preschool.
- Shared Care or Babysitting Cooperatives: Families take turns caring for one another’s children, often using a system that tracks exchanged hours of care.
Because these cooperatives rely on parent involvement, they can build strong community connections and give families a greater voice in how childcare is provided. However, the time commitment may be challenging for some families.
Tenney Nursery & Parent Center
Founded in 1979, Tenney Preschool & Childcare is a community-centered, parent-cooperative preschool in Madison’s Tenney-Lapham neighborhood. We offer 5-star accredited programs for children ages 2+, with small mixed-age classrooms that nurture curiosity, learning, and growth through play.
Resources for Cooperatives in the Childcare Sector
Childcare Cooperatives Podcast. Indiana Cooperative Development Center, 2024
Solving the childcare crisis with cooperatives: The who, what, when, where and why of childcare co-ops webinar: Guest: Kim Coontz, California Center for Cooperative Development; Indiana Cooperative Development Center, 2024.
Solving the childcare crisis: story telling – lessons learned and best practices webinar: Guests: Erin Laverdure, Energy Capital Cooperative Childcare and Leah Barrett, Norfolk Area Childcare Co-op webinar, Indiana Cooperative Development Center. 2024.
Childcare Cooperatives Quick Guide. UW Center for Cooperatives, 2021.
Cooperative Solutions for Community Care Needs (Webinar Recording). UW Center for Cooperatives, 2018.
Cooperative Solutions for Community Care Needs (Powerpoint). UW Center for Cooperatives, 2018.
Preschool Cooperatives 101 (Powerpoint). Parent Cooperative Preschools International, 2009.
Organizations Supporting Childcare Cooperatives
Parent Cooperative Preschools International
