What does the 7% fee cover? Is it annual / monthly / etc?

HCB's 7% fiscal sponsorship fee covers your 501(c)(3) status and the use of HCB’s software, a point of contact with a 24 hour turnaround time on weekdays and 48 hour turnaround time on weekends, a full time bookkeeper to handle all taxes for you, and all processing fees to accept donations.

The fee automatically comes out of all incoming funds.