In a recent move to raise funds for schools in rural India, the EKAL USA Board has decided to increase the per-school sponsorship fee. Over the past five years, EKAL USA has faced a decline in donor contributions, from $9.18 million in 2019 to $8.35 million in 2023. While there was an uptick in 2022 to $10.44 million, the general trend indicates a financial challenge. 

Per the email from EKAL USA, beginning in 2025, the annual per-school donation is increased to $500 from the current $365, an increase of 26%. As stated in the email, the reason behind the increase is that $365 sponsorship remained unchanged for 24 years, while the inflation in India has averaged about 7% per year over the past three decades. Further, better honorarium helps to recruit and retain good teachers and the costs of training and supervision of teachers have increased significantly and are expected to continue to increase.

For many long-time or smaller-scale donors, this could be seen as an unsustainable increase, especially if they already feel the financial pressure due to the current local inflationary economic situation. Existing donors may be more inclined to reduce their contributions per school. Instead, they may donate the amount they donated previously, irrespective of the number of sponsored schools, or even stop sponsorship altogether.  Some may even shift to other non-profits competing for their limited donation dollars. An increase in per-school contribution may also discourage recruiting new donors.

In times of falling donations, EKAL should have lowered the per-school contribution to make it easier for existing and new donors to participate. By reducing the donation per school, EKAL might increase the number of people willing to contribute, especially those with more modest budgets. This could offset the drop in individual donations and help increase the number of schools sponsored, leading to higher total contributions over time. “Instead of a sharp 26% increase in one go, a more gradual approach to raising the per-school sponsorship fee could help avoid alienating donors,” said a regular Las Vegas donor.” 

Although there’s an increase in per-school contribution, many supporters are deeply committed to the mission of EKAL. “I am still committed to supporting five schools and hope other donors consider their involvement at the same level. Please note that India has experienced significant inflation, and we must cover the cost to continue the programs,” said a long-time EKAL contributor.

“I fully support the increase due to the inflation in India,” said Girija Vijai, a long-time dedicated volunteer to raise funds for EKAL in Las Vegas. A friend of Ms. Vijai mentioned, “I will continue to support EKAL as long as Girija Vijai remains with it.”

While the need for more funds might drive the decision to increase per-school donations, the recent decline in overall donations suggests that the organization should be cautious. EKAL Las Vegas management may face an uphill battle in 2025 to raise funds to continue funding rural schools in India.