One of our strongest and most popular programs over the years has been always offering free kids bikes. For age 10 and under we require no class nor service time (older than 10 and we have various earn-a-bike programs).
We do not charge, the bike is theirs to keep, and the family will come back year after year and swap to a larger size. We always have a large stock to choose from. We have more ready to go kid bikes in 'kid alley' and over flow kid bikes in 'kid corner'.
Many yet not all families donate into our shop jar. While we strive to have some kid bikes close to 'ride out the door' we want the kid (and parent) to finish off the bike with air, oil and some adjustments. We work together to make that happen.
We have found that this type of program brings in financial donations in many other ways, from general appeals to events to small local grants.
Other tidbits: we tend to remove hand brakes (unless in stellar condition) if the bike (most) has a coaster brake. we esp. look for anything sharp or broken to get off the bike, like remnants of a bell, reflector, chain guard. we help more with families that are struggling with the mechanical aspects, and remain more hands-off if it is say a parent/child wanting the building/bonding experience. if a parent ends up working on the bike without the child, we try to entice the child to help sort nuts and bolts, or draw a bike for the shop wall. we discourage training wheels yet help get them on if a parent insists. we make our own striders, looking for kid bikes that have low step thru frame and already have a drivetrain failure. it's honestly one of the most rewarding aspects of the community bicycle shop, here in Missoula.