It’s a great week to be a GlobalGiving nonprofit partner (and donor!). We’re excited to share the news that we’ve launched a new system of payment disbursements that will save most of our international partners a significant amount of money. Hooray!
GlobalGiving is now implementing a new donation disbursement method for our international partners called FXecute. When compared to a traditional bank wire transfer, FXecute promises to save our international partners collectively hundreds of thousands of dollars a year in wire transfer fees and currency exchange premiums, getting more of our donors’ dollars to the ground.
FXecute delivers local currency to our partners’ international accounts via their country’s domestic ACH system (similar to a direct deposit) rather than using the typical international bank wire transfer system. Avoiding the intermediary bank and the beneficiary’s wire department, we are able avoid typical wire fees of $55, and in some cases as much as $95, per transfer.
In addition to saving on wire fees, GlobalGiving will be able to reduce the currency conversion premium on international disbursements from 3-11% (typical international wire transfer currency conversion rate) to 0.3-1% (FXecute’s conversion rate).
What does all of this mean? It means that a $1,000 disbursement to a partner in Kenya would have cost that organization $105 in bank fees and currency conversions before now, causing the organization to lose 10.5% of the donations on top of our 15% fee. Today, that same $1,000 will be disbursed as $995, costing the Kenyan partner $5 in currency conversion fees – making the total cost of the transfer less than one percent.
We’re doing the best to continually add benefits that make the GlobalGiving system more efficient and more valuable to our nonprofit partners every day. We’re pleased to roll out this new disbursement program this week, just in time for the holiday giving season!