KP Preschool’s Temporary Fiscal Crisis Eased by Community

Without options like these, working parents are left to rely on family, friends, and sometimes neighbors.”

Word of an $18,000 financial shortfall shocked the 40 local families currently enrolled in one of three programs operating under the nonprofit Key Peninsula Preschool, including KP Co-op Preschool, Forest Friends Nature Preschool, and KP Seedlings Infant and Toddler Care.

Families were alerted March 20 via the preschool communications system, which resulted in a well-attended emergency board meeting March 25.

A fundraising effort developed quickly, as the board of directors, parents, and interested community members strategized how to make up a shortfall that threatened the young nonprofit business with an inability to meet its May payroll obligations. 

The problem was spotted by incoming board treasurer Calvin Rabinoff, who recognized that the “every other week” payroll structure, rather than twice monthly, would result in an extra pay period in the month of May. “Payroll is the organization’s number one expense,” he said.

Former executive director Kim Shaw had battled county permitting and regulations to reopen a shuttered cooperative preschool following pandemic-caused closures. With the combination of new state legislation championed by Sen. Deborah Krishnadasan (D-26th), a pivot to an outdoor nature-based learning model, and an enthusiastic new landlord, Key Peninsula Preschool eventually opened “Forest Friends,” a year-round all-day outdoor preschool on the grounds of the KP Lutheran Church in October 2024.

By September 2025, Shaw experienced health challenges that led to swapping roles with then co-op preschool teacher Jessica Schock, who became the KP Preschool executive director while Shaw resumed teaching at the half-day Co-op Preschool housed at the KP Civic Center.

Like many nonprofits, the young organization had yet to accumulate sufficient cash reserves following startup and program-building expenses to meet unforeseen expenses that naturally arise.

A challenging transition between outgoing and incoming board members, further complicated by a transition to a new bookkeeper, required some reorganization.

These struggles are very familiar to Executive Director Susan Paganelli of the Key Peninsula Partnership for a Healthy Community, who said they’ve seen this kind of problem repeatedly, not only on the KP but everywhere.

People start something because they have a passion and a skillset built around that passion, whether feeding people, helping the homeless, or being a teacher. “But that doesn’t equate to running a business, and a nonprofit is a business that comes with extra rules to ensure funders’ money is spent wisely, so the board of directors is critical,” she said.

“We need people on boards who can read balance sheets and know how to do proper oversight, so that the people with the passion can get on with doing what they love, in this case running a preschool which is vitally essential to a community without good options,” Paganelli said. “It’s a hard, hard lift to get one started in our rural area.”

Each of the three programs serves specific needs. The Co-op Preschool housed at the KP Civic Center is half-days — ideal for parents able to volunteer in the classroom regularly throughout the school year. For others, the Forest Friends Preschool runs from 8:30 am to 3:30 pm year-round outdoors for students aged 2 and a half years old and above, with after-hours childcare available until 5:30 pm. The recent addition of the year-round infant and toddler care program for ages 2 months up to 2 and a half years old is full, with a sizable waiting list.

“Without options like these, working parents are left to rely on family, friends, and sometimes neighbors,” Paganelli said. “Sometimes that works great, but not always.”

Rabinoff said the economics of childcare are universally bad, and he thinks the nonprofit is feeling that acutely while building up from a co-op preschool to adding Forest Friends and infant and toddler care.

“We’ve just in the last few months been profitable, for the first time as far as I can tell,” he said. “Coming out of the building phase, we’re seeing signs of long-term financial stability where each program covers its costs.”

The board voted unanimously April 14 to transition payroll periods from every other week to twice a month, working on implementation with their bookkeeper to minimize impact on current staff.

Fundraising efforts generated over $11,000 by mid-April, with more in the works, including a community rummage sale May 2-3 at the Key Peninsula Lutheran Church, with proceeds benefiting all programs offered by the Key Peninsula Preschool.

“I’m still optimistic that the long-term picture is sustainable,” Rabinoff said. “We’ve gotten a ton of help and buy-in from the community, and that’s really our emergency life raft now.”

The KP Partnership and the KP Preschool are co-hosting a dinner and tour of the Forest Friends outdoor classroom and the Seedlings Infant and Toddler Care May 16 at 5 p.m. at the Key Peninsula Lutheran Church. Tickets are $50 and available for purchase at www.kphealthycommunity.org.