FX for Good
Project Host
Sitawi
Revenue
1.5M
Charity Number
nonprofit in Brazil CNPJ 09607915/0001-34
Project aims
Make international donations for nonprofits in Brazil more efficient.
Today ~USD500M/year are donated to nonprofits in Brazil by international funders. Banks charge ~5% in fees, so USD25M/year of impact that goes missing. We can change that.
Project description
Complementing finance-related initiatives you support (e.g. Finance Innovation Lab), Foreign Exchange for Good – or FX for Good – is a hands-on initiative with broad potential impact in Brazil.
Most nonprofits ask international funders to send donations directly into their operating bank account. This keeps them hostage to whatever spread (cost) banks decide, typically ~5% (a mid-sized company would pay 1-2%).
Foreign Exchange Banks – regulated financial institutions as any bank, just specialized in FX operations – could save nonprofits money available for impact. And the money goes into their same acount, nothing changes operationally.
Being finance-savvy, we negotiated a good FX deal with such a bank (0,9%). We have now convinced them to extend it to other nonprofits vetted by us. Such vetting consumes staff time, but generates significant savings to the sector. We estimate that a GBP10k/year cost for us enables GBP2M in FX and GBP80k in additional resources for impact at other nonprofits.
Although not going away anytime soon, we had an operating loss of ~GBP200k last year. We would like to request support for this program, so we can continue to benefit other organizations in Brazil, in addition to focusing on our own financial sustainability.
Contact name
Leonardo Letelier
Phone
+44 (0) 7708 767758 until sep 30th/2024, +55 21 987419889 after that
Email
lletelier@sitawi.net
Website
www.sitawi.net
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