Foreign Cash Flow Management for Charities and Non-Profit Organizations
More than ever, charitable organizations must do more with less, making every dollar
stretch further while at the same time maintaining the utmost accountability and
transparency to partners and donors.
For today’s charities and non-profits, better management of international
cash flows, payments, and risk means increased accountability and transparency,
fewer exchange rate-related losses, reduced transaction costs, and ultimately more
funds for those who need them most.
Based on our long history of supporting and working with philanthropic bodies around
the world, our new White Paper, Making a Difference through Foreign Exchange,
illustrates how improved management of foreign exchange payments and processes can
help your organization:
The financial collapse of 2008 directly impacted those on all sides of philanthropic
relationships, driving a sharp drop in donations while plunging millions of people
around the world further into poverty. Even as the global economy recovers, non-profit
organizations continue to face serious challenges.
More must be done with less.
With fewer dollars to work with, and greater demands placed upon them, non-profit,
non-governmental organizations (NGOs) that work or source supplies across international
borders must manage their finances more efficiently, precisely, and transparently
than ever.
Many of the world’s poorest and most disadvantaged people – and most
fragile ecosystems – are in countries where fragmented payment systems and
limited financial infrastructure can make moving money incredibly costly and difficult.
As a result, financial managers at a growing number of NGOs have begun to seek new
ways to effectively handle foreign exchange flows.
Three core strategies have proven to have the greatest impact. Firstly, simplifying
the processes used to move money across the global financial system can cut costs
and increase efficiency. Then, technology may be used to track, monitor and control
the remittance and receipt of cash, building accountability and greatly improving
payment reliability. Finally, protecting future-dated payments against currency
volatility can reduce exchange rate losses and drive cash flow predictability.
For non-profits, foreign exchange flows represent a great opportunity. If an NGO
can effectively manage international payments, it can move more money to those who
need it, when and where they need it most. This can be an incredible differentiator,
helping to attract donors and ultimately enhancing the organization’s power
to change the world for the better.
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