I agree with Reggio's first comment. I would refund the money IN THIS SITUATION. It's totally annoying that she would do that, but she is right. You do have plenty more time to fill the spot. The reason for my deposit (that I tell the parents) is to hold their spot. It IS non-refundable, but it's rare that I have someone make a deposit for a start date so far away. I use the deposit for things I need to buy for the child - potty, playpen.... so usually, the money is spent before the child comes into care. I don't know. Part of me says DO NOT REFUND, but it's more as principle. As consideration and KARMA goes, I would refund the money