Thriving Providers’ Guaranteed Income Pilot for Childcare Providers

Challenges

Worker Issues

Location

Pennsylvania

Stakeholders

Businesses, Nonprofits

Beneficiaries

Job Seekers, Children, Parents

Overview

The Thriving Providers Project provides a $500 per month stipend to participating home-based childcare providers in Philadelphia to stabilize their income.

Key Impact Metrics

45
childcare providers enrolled
100%
target success rate
$500
per month stipend provided

Problem

Independent home-based providers are the most common in the US, but operators of these programs face high income volatility—such as irregular tuition payments and subsidy delays. Many of these home-based providers, therefore, often need another source of income to stay afloat.

Solution

In 2022, Home Grown, a national funder collaborative centered on home-based care, partnered with Public Health Management Corporation, Spring Point Partners, and the Center for Guaranteed Income Research (CGIR) at the University of Pennsylvania to launch a philanthropic pilot initiative to deposit $500 each month directly into the bank accounts of 45 family childcare providers in Philadelphia. Importantly, unlike traditional subsidies tied to specific expenses, the cash is unconditional, allowing providers to use it for rent, utilities, food, debt repayment, or business investments. The pilot was part of a randomized controlled trial evaluated by CGIR, comparing outcomes (e.g., financial stability, mental health, retention) for the 45 recipients against a control group, to build evidence for scaling guaranteed income programs.

Results

Beneficiary Impact45 childcare providers and ~230-450 children served
Employee Impact30% increase in income
Financial Results$270,000 awarded in pilot

Replication Tips

Forge a multi-funder coalition: Home Grown partnered with Public Health Management Corporation, Spring Point Partners, and the Center for Guaranteed Income Research (CGIR) at the University of Pennsylvania, ensuring at least three complementary funders.
Collect rigorous mixed-method data: Combine quarterly surveys (stress, retention intent) with administrative data (subsidy participation, enrollment counts) and include a control group of similar providers; publish interim briefs every six months to keep funders engaged and pave the way for public appropriation.