More efficient overseas bank transfers equals more money for widows and orphans.
Redeem International was founded with a specific mission: to protect Ugandan widows and orphans from violent abuse and exploitation. Along with many emerging nations, Uganda lacks many of the social safety nets that help its most vulnerable citizens. Many Ugandans rely on subsistence farming to survive, so land ownership is critical to their well-being. Redeem discovered that many widows and orphans were being forced off their land by individuals who faced no consequences from law enforcement.
Since its inception in 2020, Redeem has been able to fund and implement intervention teams that work with local authorities to help displaced people return to their land. In its relatively short history, Redeem has directly impacted the lives of thousands of Ugandans.
In 2022, Redeem doubled the number of Redeem Intervention Teams across Uganda and expanded their staff from 20 to 50. Total revenue increased from $1,196,405 in 2021 to $2,416,880 in 2022. This allowed Redeem to change the lives of over three hundred widows and orphans, where they can not only survive, but flourish as well.
Redeem is supported by dollar-denominated donations from individuals and foundations. To put that money to work in Uganda, the dollars must be converted to the local currency, the Ugandan shilling. Until recently, Redeem relied on banks to handle the requisite currency conversion. However, the high fees paid to banks reduced the amount of money available for funding the mission.
Historically, only Fortune 500 companies have been able to efficiently manage FX to their advantage. Redeem, along with many nonprofits, simply assumed that high transfer fees were the normal cost of doing business abroad when it comes to overseas bank transfers. This changed, however, when they met Pangea and realized there was a simple way to put more of those donated dollars to work on the ground in Uganda.
Pangea has reduced Redeem’s cost of transferring money by nearly 5%
Redeem has been utilizing Pangea Prime™, Pangea’s flagship product, to handle its frequent transfers of funds from the US to Uganda. That translates into savings of $3500 on each $100,000 they send. This means that:
- Over the course of a year, Redeem can expect to have $75,000 to $100,000 more to spend on its core mission.
- The savings will scale with growth at Redeem, so the impact will multiply over time.
- Based on current projections, Redeem will be able to help at least twenty extra families return to their land this year as more money is saved in currency transfers.
Nonprofit organizations around the world face the ongoing challenges inherent in sending money through international banks in places where it’s needed the most. Most emerging countries have currencies that are illiquid and volatile, resulting in significant costs when transferring funds from one country to another. Reducing the costs and risks of sending money via overseas bank transfers will greatly increase the amount of money available for a nonprofit’s mission and initiatives.
Moreover, donors to nonprofits want to know that their money will have the highest possible impact. Saving money on currency transfers means more of the donated dollars go directly to those in need.
In addition to high overseas bank transfer fees, nonprofits are hindered by the uncertainty of the exchange rates for currencies they buy with their dollar donations. Forex markets, particularly in emerging market currencies, are volatile by nature.
Many nonprofits have explored traditional avenues for hedging currency risk, only to be frustrated by the complexity and costs associated with effective hedging. Pangea Prime™ was developed to enable any company—small, medium, or large—reduce or eliminate the price swings associated with FX exposure. Using Ai, the simple and intuitive platform helps businesses hedge FX, send international payments, store and receive foreign currencies with FX Smart Wallets, and more, all from our simple and intuitive platform. Now, nonprofits such as Redeem International can manage their foreign exchange currency in ways just as sophisticated as Fortune 500 Companies.
All nonprofits want to maximize the impact of their spending and all donors want to know that their money is being used as efficiently as possible. Now there is no reason to pay exorbitant fees that diminish the number of dollars available to fund the goal. Managing forex risk and keeping fees low is an integral part of being a good steward of a nonprofit’s mission. Having more money means helping more people. It’s as simple as that.
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Pangea Prime: Predictable, simplified FX management.
NOTE: Pangea cannot guarantee the same savings as mentioned in this article for other companies.
