Dear Sponsors & Students,
Once in a while we receive emails or messages telling us that the 8% fee Skolafund charges is unnecessary and the sponsor would rather sponsor the student directly into the student’s bank account.
In this post I will answer the following questions:
- Why does Skolafund charge the 8% fee (5%+3%)?
- Why it is better to sponsor via Skolafund vs directly transferring to the student?
Answering question (1), we will first explain what the charges are for.
5% Skolafund Service Fee– We will only be getting this 5% if a student’s scholarship is fully-funded. Means Skolafund will only get the 5% service fee when a student in-need gets a scholarship on Skolafund.com. How big is 5%? If you sponsor a student RM 100, only RM 5 goes to Skolafund while the rest goes to the student (if the scholarship is 100% funded, if not, we get nothing). The money that we get will be collected and used to develop and scale Skolafund. This 5% fee will be used by Skolafund to cover its operational costs. We have 3 tech guys and 2 operations guys working on Skolafund full-time and part-time. These people who work for Skolafund ensure that the platform is working, checks and verifies every student campaign application received and also works on the payouts to universities and students for every successful campaign. These are only some of the work put in by the team to make Skolafund work. We also need to pay salaries. Also, it is important for us to spend on things such as hosting servers , domain names and other administrative costs.
3% Payment Fees – This will be used to pay bank and payment gateway (MOL Pay and Paypal) charges for each transaction made. To make sponsorships using Maybank2U, CIMB Clicks, RHB Now and other methods on Skolafund, there are charges that our team needs to pay to the payment gateway providers. Sadly, we’re still students with very little money so we cannot afford to pay for them any further if we want to keep Skolafund alive. This 3% will be used to pay for this transaction and technical costs (not for Skolafund).
Answering question (2) Why it’s better to sponsor via Skolafund vs directly transferring the money to the students?
a. Direct bank transfer to the student means that there’s minimal transparency. The other sponsors won’t know how much the student has raised and how much more funds is needed. When they do it via a crowdfunding platform, they know these info and the sponsors can make a better decision as to how much funds to give the student.
b. The funds raised on Skolafund that is meant for fees will be transferred directly to university. Only the portion meant for daily expenses will be given to students. This was requested by sponsors as well. The reason is to avoid any potential abuse of funds. As a platform, we help sponsors ensure the fund goes to its rightful destination and this is part of maintaining transparency between the students and sponsors. We also have a publicly available transparency sheet where you can see the students funded on Skolafund and the receipts which shows our payouts made to universities (for the fees) and to the students (for stipends). You can access it here.