The 7% fee goes to the Alaska Community Foundation who manages the program and works with the participating nonprofits.  

The costs to run the program include a 4 month statewide marketing campaign, training seminars for the participating nonprofits, maintenance and upgrades for two websites, application processing, check and donor list processing and mailing for the 640 nonprofits involved, 1 staff person, etc. 

The 7% fee was agreed upon by nonprofits before it was implemented. It's kept as low as possible so nonprofits recieve the highest amount of funds. 

The 7% fee is shown on multiple occasions when you are donating through the PFD website. It even shows you the total amount that goes to the nonprofits after the 7% fee is taken out of your donation. 

FYI - 100% of your donation is tax deductible.