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) Fully provide much needed services such as health checkups, teacher training, computer training etc.
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 is the price increase going to come into effect?
The new price of $30/child/month is going to come into effect starting 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
- Teacher training
- Computer training
- Competitive exam preparations
What is the difference between regular SaC and SaC-CAF?
The regular Sponsor A Child (SAC) program is the (B2B) model where we work with the school to support the education of a group of children or the entire school. We do not directly deal with the child. But we do allow donors to select a particular child, we provide the progress report, we allow video conferencing with the child facilitated by Sewa, and we also encourage donors to visit the school and meet the children supervised by school staff.
The SAC-CAF (Children from COVID Affected Families) model includes children whose families are significantly impacted due to COVID-19 but does not qualify for governments assistance based on required conditions. The loss of the breadwinner or income is a major crisis and spurs financial difficulties impacting the child education. Here Sewa will work directly with the child (B2C) and the school the child attends. Children do not need to go to Sewa supported SAC schools. These children can be anywhere in Bharat. Thus, donors will not be able to select a particular child, details about the child will not be provided, and the donor and child will not be able to communicate. However, progress reports can be provided.
In both the cases child/donor contacts are not provided to each other and child/donor direct communication is prohibited.
Who should I contact if I have additional questions?