Recent statistics state that 32 million children up to the age of 13 have never attended any school in India, and 47 million secondary and higher secondary students drop out because of domestic and financial reasons.
Education can open new doors of opportunities so that children can leave their life of poverty behind and step into a better and enriched life.
Bright children seek education, and one of the best ways to fulfill their dreams is through sponsorship. To know how to sponsor a child’s education, then you must go through this blog.
What is a sponsorship?
Sponsorship in the context of a child’s education refers to a program that allows an individual, a group, or a business entity to offer monetary contributions so that the money donated can help in educating the child.
How much does a sponsorship cost?
The cost of sponsoring a child’s education fluctuates from INR 1,000 per month to INR 3,000 per month. The amount varies from donor to donor and organization to organization.
If the sponsor wants to pay only for the tuition fees, then they can do so, but if they want to pay for related expenses, there is also a provision for that.
Payments can be made every month or as a lump sum amount for a year.
What does the beneficiary get?
Financial aid and associated benefits of most sponsorship programs concerning a child’s education cover-
- School expenses like tuition fees, lab fees, uniforms, textbooks, and stationery (pen, pencil, rubber, geometry box and sharpener, etc.).
- Nutritious and balanced meals.
- Medical screenings and health care to ensure physical and mental well-being.
- Learning vocational skills.
- Facilitating extra-curricular activities.
- Connect children with teachers and mentors.
- An opportunity to learn and practice literacy skills.
- Teaching activities that will help in sharpening income-generating skills.
Additional read: Best sip plan for child’s future
Sponsoring a child’s education
1. Select a verified organization
You can sponsor a child’s education in India by selecting a verified and genuine organization. These organizations are often constrained by a lack of monetary resources as the number of needy children far exceeds the support options.
Numerous non-profit organizations in India have set up the required infrastructure to help children in getting the education they deserve.
Some of them have the backing of government agencies, and some are dependent upon business entities for funds.
2. Get the required information
You can call the NGOs directly on the phone, email them or conduct an in-person meeting to gather the related information.
Ask about the program, how many children they support, what amenities they provide and how you can make a difference.
Ask about the sponsorship amount and what it will entail. Will the organization provide only the tuition fees, or will the amount include related expenses? You can also speak about your budget and what benefits it can offer to the child.
3. Select a child
Some people believe in creating a personal bond with a child and if you are one of them, then ask the NGO about the children that need education.
Select a child and form a connection by speaking with them and making sure both emotional needs and financial needs are met.
When the sponsor becomes personally involved with a child, then they can ask the organization to send periodic reports of the sponsored child to know how the child is faring.
They can also visit or write to the child periodically to maintain the bond.
4. Sponsor a child online
If you are not interested in creating a one-on-one bond and just want to donate the money as a charitable contribution for income tax purposes, then you can donate online on the NGO site.
The government encourages its well-off citizens to contribute to the education of children who do not have the necessary funds to get admitted to schools and colleges. Donations related to the sponsorship program are eligible for a 50% tax exemption under Section 80 G (5) of the Income Tax Act 1961.
Thus, sponsorship acts as a two-fold beneficial tool. It will provide education to needy children and help the sponsor to claim exemption during the income tax filing.
5. No refund or cancellation
Charitable organizations generally do not allow refunds or cancellations of donations by any donor. Hence be sure before making a payment.
Sponsoring a child’s education is a noble endeavor that requires careful financial planning. With rising educational costs, it’s essential for parents and sponsors to explore various funding options to ensure that children receive the quality education they deserve. EduFund offers valuable resources and tools to help navigate these financial avenues effectively.
a. Mutual Funds
Investing in mutual funds can be an effective way to grow savings for a child’s education. EduFund provides access to over 4000 mutual funds from leading AMCs, allowing parents to choose investment plans tailored to their risk appetite and financial goals. By starting early, parents can benefit from compound interest, making mutual funds a viable long-term investment strategy.
b. Fixed Deposits (FDs)
Fixed deposits remain a popular choice for conservative investors looking to secure their savings. While FDs offer lower returns compared to mutual funds, they provide stability and guaranteed returns. EduFund can guide parents on how to incorporate FDs into their overall investment strategy for education funding, ensuring that part of their savings is safe and accessible when needed.
c. Digital Gold
Digital gold is an innovative investment option that allows parents to invest in gold without the hassle of physical storage. EduFund has partnered with Augmont Goldtech, enabling parents to safely buy and sell digital gold starting at just ₹10. This option not only diversifies investment portfolios but also serves as a hedge against inflation, ensuring that savings maintain their value over time.
d. Education Loans
For many families, education loans are essential for covering the costs associated with high-quality schooling. EduFund simplifies the process of applying for education loans by offering a seamless application experience with competitive interest rates starting from 9%. Parents can explore various loan providers through the EduFund platform, ensuring they find the best fit for their financial situation.
FAQs
What is sponsorship?
Sponsorship in the context of a child’s education refers to a program that allows an individual, a group, or a business entity to offer monetary contributions so that the money donated can help in educating the child.
What are the benefits of sponsorship?
The benefit of sponsorship is to give someone an opportunity to grow and develop their skills. Education sponsorship is meant for students who lack the financial means to support their education and can benefit from sponsorships to build a career for themselves.
Conclusion
By now, you must have come to know how to sponsor a child’s education effectively.
The sponsorship program can create a positive impact on the life of a student who just needs an opportunity to break the cycle of poverty and improve their living conditions.
