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First Childrens Finance

EIN 41-1694837 · Minneapolis, MN

Public records show a registered, tax-exempt organization in good standing.

LegitimacyPassesRegistration and standingFinancial healthWeak34 out of 100GovernanceStrong93 out of 100Impact evidenceDescribes programsHow well its results are evidenced

What it says it does

FIRST CHILDREN'S FINANCE (FCF) GROWS THE SUPPLY AND SUSTAINABILITY OF HIGH-QUALITY CHILD CARE BY STRENGTHENING THE BUSINESS AND FINANCIAL FOUNDATIONS OF THE SECTOR. FOUNDED IN 1991, FCF IS A NATIONAL NONPROFIT HEADQUARTERED IN MINNEAPOLIS, MINNESOTA, WITH STATE OFFICES IN MICHIGAN, MINNESOTA, IOWA, OREGON, AND VERMONT. FCF PROVIDES FINANCING, BUSINESS TRAINING, AND CONSULTING TO CHILD CARE ENTREPRENEURS, WHILE PARTNERING WITH PUBLIC, PRIVATE, AND TRIBAL STAKEHOLDERS TO ADVANCE POLICIES AND FUNDING STRATEGIES THAT CREATE SUSTAINABLE CHILD CARE SYSTEMS.

Income
$9.3 million
Spending
$10.0 million
Spent on programs
76%
Reserves
2.7 months of spending
Largest source of income
government grants, 57%
Employees
99
Volunteers
18
Highest pay
$288,495, president & ceo (former)

Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Financial health

Weak: 34 out of 100. Higher than 4% of charities in its peer group (human services, $1m to $10m).

  • Reserves

    10 of 35

    Spendable reserves would cover 2.7 months of spending.

  • Debt

    5 of 20

    It owes 62% of what it owns.

  • Living within its means

    4 of 15

    Spending exceeded income by 8% of income.

  • Income trend

    0 of 15

    Income fell 69% on the year before.

  • Spending floor

    15 of 15

    76% of spending went to programs and raising each dollar of donations cost 6 cents.

Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Governance

Strong: 93 out of 100. Higher than 55% of charities in its peer group (human services, $1m to $10m).

  • Independent board

    18 of 25

    4 of 4 voting board members are independent.

  • Conflict of interest policy

    15 of 15

    Has a written conflict of interest policy.

  • Whistleblower policy

    8 of 8

    Has a written whistleblower policy.

  • Record keeping policy

    7 of 7

    Has a written policy on keeping and destroying records.

  • Board minutes

    5 of 5

    Keeps minutes of board meetings.

  • Board sees the tax return

    10 of 10

    Gave the board a copy of this return before filing it.

  • Pay set independently

    5 of 5

    Sets its chief executive's pay through independent review and comparison.

  • Independent check of accounts

    15 of 15

    Its accounts were audited by an independent accountant.

  • No reported misuse

    10 of 10

    Reports no diversion of assets, excess benefits or loans to insiders.

Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Impact evidence

Describes programs. Its tax return describes what it does but we have found no measurable results in it.

Programs described in its return (2)
  1. $890,149 spent. FINANCIAL ASSISTANCE COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION (CDFI) LOAN FUNDAS A CERTIFIED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION (CDFI), FIRST CHILDREN'S FINANCE (FCF) PROVIDES FLEXIBLE, MISSION-DRIVEN CAPITAL TO CHILD CARE BUSINESSES THAT OFTEN FACE BARRIERS TO TRADITIONAL FINANCING. OUR LENDING PROGRAM STRENGTHENS THE BUSINESS FOUNDATION OF CHILD CARE PROVIDERS SERVING LOW- AND MODERATE-INCOME FAMILIES, HELPING THEM GROW, STABILIZE, AND SUSTAIN HIGH-QUALITY EARLY CARE AND EDUCATION.FCF IS THE ONLY CDFI IN THE NATION EXCLUSIVELY FOCUSED ON CHILD CARE, COMBINING FINANCIAL EXPERTISE WITH DEEP, SECTOR-SPECIFIC KNOWLEDGE. EVERY LOAN IS PAIRED WITH TAILORED TECHNICAL ASSISTANCE THAT BUILDS THE BORROWER'S CAPACITY IN BUSINESS PLANNING, CASH FLOW MANAGEMENT, AND LONG-TERM SUSTAINABILITY. THIS INTEGRATED APPROACH ENSURES THAT EACH INVESTMENT STRENGTHENS BOTH THE INDIVIDUAL BUSINESS AND THE BROADER CHILD CARE ECOSYSTEM.THE FCF LOAN FUND OPERATES ACROSS TEN STATESIOWA, MICHIGAN, MINNESOTA, MISSOURI, NORTH DAKOTA, SOUTH DAKOTA, OREGON, TEXAS, VERMONT, AND WISCONSINSUPPORTING FAMILY CHILD CARE HOMES AND CENTERS IN BOTH RURAL AND URBAN COMMUNITIES. IN FY2025, THE LOAN FUND ORIGINATED 41 LOANS TOTALING $1.6 MILLION, DIRECTLY SUPPORTING 14 FAMILY CHILD CARE PROVIDERS AND 27 CENTERS. THESE INVESTMENTS HELPED CREATE OR PRESERVE 1,830 CHILD CARE SPACES AND 406 JOBS, EXPANDING ACCESS TO QUALITY CARE WHERE IT IS MOST NEEDED.SINCE ITS INCEPTION, THE LOAN FUND HAS ORIGINATED 795 LOANS TOTALING MORE THAN $20 MILLION, RESULTING IN THE CREATION OR RETENTION OF 26,226 CHILD CARE SLOTS AND 4,296 JOBS NATIONWIDE. BEYOND FINANCING, EACH BORROWER BENEFITS FROM INDIVIDUALIZED COACHING AND ACCESS TO BUSINESS SUPPORT SERVICES, ENSURING THAT THE IMPACT OF EVERY DOLLAR EXTENDS WELL BEYOND A SINGLE LOANBUILDING LASTING STABILITY AND GROWTH IN THE CHILD CARE SECTOR.
  2. $6.7 million spent. 1. BUSINESS SUPPORT FOR CHILD CARE ENTREPRENEURSFCF PROVIDES TAILORED BUSINESS DEVELOPMENT SERVICES TO CHILD CARE ENTREPRENEURS AT EVERY STAGESTART-UP, STABILIZATION, GROWTH, AND SUCCESSION. OUR STAFF DELIVER ONE-ON-ONE CONSULTING, GROUP TRAINING, AND ACCESS TO FINANCING AND BUSINESS TOOLS THAT IMPROVE SUSTAINABILITY AND QUALITY. IN FY2025, FCF SUPPORTED 3,367 CHILD CARE BUSINESSES, OFFERING 254 TRAININGS AND 53 COHORT-BASED PROGRAMS ACROSS MULTIPLE STATES. IN IOWA, 77 BUSINESS OWNERS COMPLETED OUR BUSINESS & FINANCIAL FUNDAMENTALS SERIES, WITH 84% REPORTING MEASURABLE IMPROVEMENT IN FINANCIAL AND MANAGEMENT PRACTICES. THESE EFFORTS STRENGTHEN SMALL BUSINESSES SERVING LOW- AND MODERATE-INCOME FAMILIES.2. BUILDING LOCAL CHILD CARE CAPACITYFCF PARTNERS WITH COMMUNITIES TO INCREASE THE SUPPLY AND STABILITY OF CHILD CARE THAT MEETS LOCAL WORKFORCE AND FAMILY NEEDS. THROUGH DATA-DRIVEN CONSULTATION, FINANCIAL MODELING, AND STRATEGIC PLANNING, FCF SUPPORTED 122 COMMUNITIES NATIONWIDE IN FY2025. OUR RURAL CHILD CARE INNOVATION PROGRAM AND RELATED INITIATIVES HELPED MORE THAN 45 COMMUNITIES CONDUCT SUPPLY-AND-DEMAND ANALYSES, IDENTIFY BARRIERS, AND IMPLEMENT LOCAL SOLUTIONSTURNING CHILD CARE DESERTS INTO SUSTAINABLE SYSTEMS. THIS WORK DIRECTLY CONTRIBUTED TO THE CREATION OR PRESERVATION OF 5,743 CHILD CARE SLOTS ACROSS INFANT, TODDLER, PRESCHOOL, AND SCHOOL-AGE PROGRAMS.3. STRENGTHENING THE CHILD CARE INFRASTRUCTUREFCF COLLABORATES WITH STATE, TRIBAL, AND FEDERAL PARTNERS TO DESIGN AND IMPLEMENT POLICIES AND FUNDING STRATEGIES THAT IMPROVE THE LONG-TERM VIABILITY OF CHILD CARE BUSINESSES. IN FY2025, WE WORKED WITH 11 STATE OR SYSTEM PARTNERS AND MORE THAN A DOZEN TRIBAL NATIONS TO CONDUCT COST-OF-CARE STUDIES, ADVISE ON ARPA FUNDING, AND DEVELOP ACTIONABLE BUSINESS AND SUSTAINABILITY PLANS. FCF CONVENED THE FIRST TRIBAL NATIONS EARLY CHILDHOOD BUSINESS COLLABORATORY, BRINGING TOGETHER 10 TRIBAL NATIONS TO MAP CHILD CARE ECOSYSTEMS AND SET PRIORITIES FOR INVESTMENT.

Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate

Legitimacy checks

  1. Is it registered with the IRS? Passed.

    Listed in the IRS master file of tax-exempt organizations as a 501(c)(3) charitable organization.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  2. Has the IRS revoked its tax-exempt status? Passed.

    Not on the IRS automatic revocation list.

    Source: Automatic revocation of exemption list, Internal Revenue Service, file dated November 6, 2026.

  3. Are donations tax-deductible? Passed.

    On the IRS list of organizations eligible to receive tax-deductible contributions.

    Source: Publication 78 data: organizations eligible for tax-deductible contributions, Internal Revenue Service, file dated October 13, 2026.

  4. Is it keeping up with its IRS filings? Passed.

    Most recent return on file covers the year ending June 2025.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  5. How long has it been tax-exempt? Passed.

    Recognized by the IRS since October 1991.

    Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.

  6. Is it in good standing with state regulators? Passed.

    Not on California's list of charities barred from soliciting. Other states are not yet checked.

    Source: May Not Operate or Solicit for Charitable Purposes list, California Attorney General, Registry of Charities and Fundraisers, file dated November 4, 2026.

Ratings and checks are our reading of public records, using the published method. They are not a statement about anyone's honesty. If you work for this organization, you can send corrections or results, confirm you want gifts through Veridonate, or ask to be removed from giving.