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In 1990, the nonprofit Child Care Services Association in North Carolina began an education and compensation scholarship program for 21 child care workers in three counties. As of August 2003, the program, now known as the T.E.A.C.H. (Teacher Education and Compensation Helps) Early Childhood Project, had spread to 23 states and is annually providing more than 15,000 scholarships. This report analyzes how a program started by a nonprofit in one state gets transferred to a nonprofit in another state. Specifically, it examines factors that supported, promoted, and challenged the transfer of the T.E.A.C.H. model to four states. In contrast to other literature on the diffusion of public policy innovation, this research shows that effective policy diffusion from nonprofit to nonprofit consists of multiple stages and often involves more than one policy advocate.