What is the reason for the price increase?
Child sponsorship costs have been increasing every year. At a monthly amount of $20, we find it increasingly difficult to support our children adequately as per our mission. By increasing the amount to $30, we can
a) Extend our offering till 12th grade (it was 10th grade before)
b) Would be providing much needed services such as health checkups, computer training and personality development.
How were you able to manage this situation until now?
While most donors select specific children to sponsor, we also have some donors who contribute to our general fund. This fund also get contributions from Sewa chapter fundraising events and matching donations from employers of our donors.
The buffer in our general fund allows the program management team some freedom in addressing funding gaps. However, as the gap widens, we need to look ahead and plan for the future. In the long run, we wish to use the general fund for helping more children instead of addressing the funding gap for partially sponsored children.
How did you come up with $30 / child / month?
We calculated the new amount based on the cost factors of the average tuition fee, additional services we are going to provide, administration costs, and the current deficit. In reality, costs increase gradually every year however, we cannot realistically change the monthly donation amount every year. We believe that increasing the amount to $30 per month will enable us to stay at this level for the next 5 years.
Why does this increase come at this particular point in time?
The plan to roll out this increase has been in the works for more than a year. This decision was taken before the coronavirus pandemic began, but due to the following reasons we could not roll it out until now.
a) In 2020, we did not want to further burden our donors whose lives were already disrupted by the pandemic.
b) Like the rest of the world, Sewa personnel have been focused on responding to the COVID-19 pandemic since the first quarter of 2020. As it is becoming too difficult to continue the SAC program with a huge fund deficit, we have decided to implement the cost increase as soon as possible.
c) As you are aware, we upgraded our technology platform during Q4 2020. The new (Web 3.0) SaaS platform (REACH App) fortunately makes it easy for us to enable the change.
When did the price increase come into effect?
The new price of $30/child/month came into effect from September 1, 2021 for all new donations.
What happens to the existing recurring donations of $20/child/month?
The existing recurring donations will continue at the old amount ($20 / month) because we understand that not everyone is able to afford the increase. Sewa will continue to address the shortfall using the general fund.
However, for those who can afford to increase your monthly contribution from $20 to $30, please write to us at email@example.com indicating your approval for increase.
Are you going to provide any additional services with this price increase?
Yes. Currently we are mostly supporting the tuition/school fee, books and education-related material but we found a need for many additional services. So, we plan to provide the following on an as-needed basis:
- Extend support up to 12th grade
- Health checkups
- Computer training
- Competitive exam preparations/ personality development courses
Who should I contact if I have additional questions?
How does SAC function?
The under privileged children could be from anywhere in India. They could be orphans, semi orphans, children whose parents are not able to pay the academic fees and thus need financial assistance so that their children can continue their education. Here Sewa International's Sponsor A Child Program will work directly with the child and the school the child attends.The children supported are from Grade 1 till Grade 12 only. Children do not need to go to Sewa Supported SAC schools. The children's profiles without photos will be uploaded on the site and the donor will be able to look at the details provided permissible by the Juvenile Law in India. No personal interactions,no visits to the schools when donor visits India is permissible, no video calls or phone calls would be done. The progress reports of the child would be uploaded periodically online.