Sally Fitchett, who owns Lighthouse Nursery School in Newington, Oxfordshire, has co-founded the branch of the PVI Providers Association with Morag Wagstaff, whose two-year-old attends her Montessori nursery.
Ms Wagstaff said, 'After finding a place for my daughter I was really worried that the nursery school might be forced to pull out of the funding or that the quality of care might change.'
Nurseries in Oxfordshire have been given a deadline of 4 May to sign up to 14 conditions to qualify for nursery education grant funding.
The list includes an agreement to comply with the Government's code of practice on nursery education for three-and-four-year-olds.
Last week more than 60 people attended the association's second meeting of private and voluntary providers with Oxfordshire County Council representatives for early years at Lighthouse Nursery School.
Ms Fitchett said the meeting had gone well and was attended by a range of people from pre-schools, day nurseries and nursery schools, as well as parents.
She said, 'Oxfordshire County Council has agreed to write to all providers to say that they acknowledge their concerns and to provide reassurance to those reluctant to sign the document.'
However, providers are still expected to sign up to and return the declaration to the council by the end of this week, she said.