Disbursement Policy
Effective Date: [EFFECTIVE DATE] Last Updated: [LAST UPDATED] Version: 2.0
KidStarter disburses Campaign funds to verified schools or approved vendors only — never directly to students, parents, guardians, or individual persons. This Policy forms part of the Agreement (see Terms of Service).
1. Disbursement Methods
Funds may be disbursed through one or more of the following methods:
| Method | Description |
|---|---|
| Direct Payment to School | Payment to a verified school for tuition, fees, or school-managed purchases |
| Direct Payment to Vendor | Payment to an approved vendor for goods/services specified in the Campaign |
| Purchase Order Fulfillment | KidStarter or the school issues a purchase order to a vendor on behalf of the Campaign |
| Organizational Reimbursement | Reimbursement to a verified organization supported by invoices/receipts and approved internal controls |
2. Disbursement Conditions
Before any disbursement, all of the following must be satisfied:
2.1. Creator and Campaign verification are complete and current.
2.2. Organization/vendor verification is complete (see Verification Policy).
2.3. Required documentation has been provided and approved, including:
- invoices, quotes, or purchase orders;
- confirmation of student enrollment or eligibility;
- school or guardian authorization;
- delivery or fulfillment confirmation (where applicable).
2.4. Compliance screening (sanctions, AML, fraud checks) has been completed.
2.5. No active holds, disputes, or chargebacks are pending on the Campaign.
3. Disbursement Timeframes
3.1. KidStarter aims to process disbursements within 14 business days of all conditions being met.
3.2. Actual timing may vary due to: documentation review, compliance checks, payment processor settlement periods, banking holidays, and recipient bank processing.
3.3. KidStarter does not guarantee specific disbursement timelines and is not liable for delays caused by third parties, documentation gaps, or compliance requirements.
4. Currency and Foreign Exchange
4.1. Disbursements are made in the currency agreed with the recipient school or vendor. If a currency conversion is required, KidStarter or its payment processor will apply the prevailing exchange rate at the time of conversion.
4.2. KidStarter is not responsible for exchange rate fluctuations, conversion fees charged by intermediary banks, or discrepancies between the donation currency and the disbursement currency.
4.3. Any shortfall resulting from exchange rate changes does not create an obligation for KidStarter to supplement the disbursement.
5. Holds and Delays
KidStarter may hold or delay disbursements for any of the following reasons:
- Incomplete or expired verification;
- Pending documentation requests (unanswered for more than 14 days);
- Active fraud investigation or safety review;
- Pending disputes or chargebacks;
- Sanctions or compliance screening flags;
- Legal hold or court order;
- Force majeure event.
Creators and Organizations will be notified of holds with as much detail as is appropriate and legally permitted.
6. Surplus Funds
6.1. If a Campaign raises more than the stated goal, surplus funds will be handled as follows (in order of priority):
- Applied to additional eligible educational expenses for the same Student (with Creator confirmation);
- Reallocated to another Campaign for the same Student (with Creator and guardian consent);
- Held for the Student's future educational needs (within a reasonable timeframe, subject to policy limits);
- Refunded to Donors on a pro-rata basis (where feasible and where the surplus is significant);
- Donated to a general KidStarter educational fund (if no other option is available, with notice to Donors).
6.2. KidStarter will communicate with the Creator before reallocating surplus funds.
7. Shortfall Handling
7.1. If a Campaign does not reach its goal, KidStarter may, at its discretion:
- Disburse the available funds for a partial fulfillment of the educational need;
- Hold funds pending further fundraising within a reasonable timeframe;
- Offer Donors a refund (where feasible and if funds remain undisbursed).
7.2. The decision to disburse partial funds is made in consultation with the Creator and the school/vendor.
8. Reallocation if Disbursement Cannot Occur
If disbursement cannot be completed (e.g., vendor unavailable, school declines, student no longer enrolled, documentation cannot be provided), KidStarter may:
- Request an alternative vendor or school option from the Creator;
- Hold funds pending resolution for up to 90 days;
- Offer Donors a refund where feasible;
- Reallocate funds to a comparable Campaign or educational fund (with notice).
9. Recordkeeping
9.1. KidStarter maintains records of all disbursements, including recipient, amount, date, documentation, and purpose.
9.2. Organizations receiving disbursements are required to retain records of how funds were used for a minimum of 7 years and provide them on request (see Organization Terms).
10. Contact
Disbursement Inquiries: [SUPPORT EMAIL] General Support: [SUPPORT EMAIL] Fraud Reports: [REPORT LINK OR EMAIL]