Getting More Money to Your Organization with FXecute!

Posted by Alexis Nadin on October 27th, 2011

GlobalGiving is very excited to announce that we are rolling out a new disbursement method called FXecute for our international partners!  When compared to traditional bank wire transfers, FXecute will save your organization a substantial amount of money in wire fees and currency exchange premiums, ensuring that more of your donors’ dollars reach you overseas.

FXecute delivers donations in your local currency to your international bank account via your country’s domestic ACH system (similar to a direct deposit) rather than the typical international wire.  Using this system we are able to avoid typical wire fees of $55-$95 every time we disburse funds to your organization. In addition to saving on wire fees, GlobalGiving will be able to get you a conversion rate that is approximately 10 times better than a regular bank transfer.  A typical organization now pays an average of around $105 to receive a $1,000 donation through an international wire.  With FXecute, this charge is lowered to about $5.

So, for each disbursement that GlobalGiving sends your organization, you could save up to $95 in fees and reduce currency conversion by as much as 90%!

Have questions?  See below:

So how does FXecute work?

FXecute has bank accounts in over a hundred countries throughout the world. By working with FXecute, GlobalGiving is able to send domestic ACH transfers (similar to direct deposit) from an FXecute account in your organization’s country in the local currency.  This direct, domestic transfer is typically free.

Why does this save my organization money?

FXecute is a far more efficient and economical way of transferring funds than traditional international wires.  Many traditional international wires must go through an intermediary bank, which frequently charge a processing fee of about $20 for each wire they receive. Local banks also usually charge between $10 and $75 to receive the wire. In addition, local banks usually charge 3-11% to convert U.S. dollars into the local currency.  FXecute does not charge these bank wire fees and charges a much lower currency conversion rate.

To compare, below is a chart of a typical organization in, say, Kenya:

 

 

 

 

 

 

*FXecute saved you $100!

Does FXecute cost money?

Yes,  FXecute does charge a fee for currency conversion ranging from 0.3% to 1%. There is no fee for the actual transfer of funds.   This is in contrast to typical bank transfers, which charge between 3-11%.

Is my organization eligible to receive disbursements through FXecute?

Unfortunately, not all organizations will be able to participate in the FXecute system.  Here are the conditions that must be met:

  1. 1)      Your bank account is in your country’s local currency. If your account is in U.S. dollars, you will NOT be able to participate.  Also, if your account is in Euros but your country’s currency is something else, you will NOT be able to participate.  Some of our international partners maintain multiple accounts which hold the local currency as well as U.S. dollars and for them it may be beneficial to route funds from GlobalGiving to the local currency account versus the US dollar account.
  2. 2)      Your bank account is in a FXecute-activated country. FXecute currently supports 141 countries.  Chances are very good yours is one of them.   Some of the countries where FXecute does not cover include Zimbabwe, Argentina, and Ukraine.  The project entry disbursement page when you log into your GlobalGiving account will automatically detect whether you’re eligible.
  3. 3)      You’ve recently updated your disbursement instruction on PE. We will NOT automatically convert you to the FXecute method.  You will need to long onto PE and update your disbursement instructions.  For some countries we will require additional information like your IFSC code for India, CNPJ number for Brazil, or Clave number for Mexico.  

How do I update my disbursement information?

All changes to disbursement instructions should be made through the project entry system.  Login here. Click on the “organization manager” at the top of the page. Click on the name of your organization. Scroll down to the bottom of the organization editor to “Disbursement Options.” Enter your disbursement details below. Don’t forget to “save and submit” at the bottom of the screen once you’ve made your changes.

We will review your information and approve the changes in 1-2 business days. We’ll let you know if we have any additional questions.

Starting Monday, October 31st, all organizations will be required to update their disbursement information before performing other tasks—submitting project reports, editing projects, sending thanks you’s—in the project entry (pe) system.

What is a SWIFT code?

A SWIFT code is a bank identification code (BIC).  SWIFT stands for Society for Worldwide Interbank Financial Telecommunication, which is the institution that manages the SWIFT network and communications between banks.  Think of it as an electronic address for your bank and your bank branch.  The SWIFT code is either 8 or 11 characters in length that follows this pattern:

  • 4 letters for the institution code
  • 2 letters for the country code
  • 2 letters or digits for the location code
  • 3 optional letters or digits for the branch code (XXX stands for the primary office)

Check with your bank branch for the correct SWIFT code and try to use the branch specific code whenever possible.  Alternatively, you can you look up your bank’s SWIFT code by performing a BIC search at www.swift.com.

Can I use my IBAN number instead of a SWIFT (BIC) code?

No. The United States does not participate in the IBAN network and therefore we require a SWIFT code to transfer funds.  We strongly recommend however that you include your IBAN number in the bank-to-bank instructions as it is often helpful in expediting the settlement of funds with your bank.  In some cases we have been required to provide the entire IBAN number or components of it, such as the sort code, to execute a wire transfer.

What is an IBAN number?

The IBAN number (International Bank Accounting Number) is used primarily by European countries, though is also commonly used in the Middle East.  Each participating country has a slightly different format though all include a country code, bank code, branch code, and account number.  Your account’s IBAN number can be found on your bank statement.  For transfers between two IBAN participating counties, only the IBAN number is required.  If one of the countries is outside the IBAN network, as is the United States, the beneficiary bank’s SWIFT code is required.

Can I still choose to receive wire transfers?

If your organization has a bank account outside of the U.S., you are still eligible to receive wire transfers if you choose.  Please keep in mind that wire transfers can cost your organization a significant amount of additional of money for each disbursement.  Selecting FXecute will save your organization money in both bank fees and conversion rates.

Will this change affect U.S. based organizations?

No, GlobalGiving will continue to disburse to U.S. registered organizations using ACH (similar to direct deposit) and paper checks. We strongly encourage you to sign up for ACH disbursements. ACH is an electronic transfer from our bank account to yours. It saves you time and money, and you don’t have to worry about checks getting lost in the mail.

What is my bank routing number?

Your bank routing code, also known as routing transit number (RTN) is a 9-digit number used in the United States, which serves as a financial address for processing financial transactions within the United States.  Typically your bank maintains at least two codes, one for processing ACH transaction both electronic (direct deposit) and paper (checks), and another for processing domestic wire transfers (fedwire number).  These numbers are not interchangeable.  See the images below to find out how to find your routing number.  This number may also be referred to as an ABA number.

How do I find the routing number for my account?

The routing number for your account is located at the bottom of your checks.  There are three sets of numbers.  The first set for business accounts is the check number.  The second set is a 9 digit routing number.  The third set is your account number.  For personal checks, the routing number comes first, followed by the account number, and then the check number.

BUSINESS CHECK:

PERSONAL CHECK:

Why am I getting an invalid routing number message?

The routing number entered is validated against a comprehensive list provided by the Federal Reserve.  This list is updated regularly and we believe it to be complete and accurate.  If your check contains a routing number not on this list, please confirm with your bank and email us a scanned copy of a voided check to disbursements@globalgiving.org so that we can resolve the discrepancy.

The most common errors are using a 9 digit account number or your account’s fedwire number instead of your routing number.  The fedwire number is used for receiving domestic wire transfers and is not a substitute for your ACH routing number.

I have a Canadian account, can I receive an ACH?

No. At present we are not able to support ACH transfers to Canadian based accounts.  There are no current plans to add this functionality, but if this is something you would like us to consider, please email disbursements@globalgiving.org.

Does changing my organization’s address in the GlobalGiving project entry system update my check delivery address?

No.  The two addresses are maintained separately.  To update your check delivery address, click on the “organization manager” at the top of the page. Click on the name of your organization. Scroll down to the bottom of the organization editor to “Disbursement.” Make sure that your disbursement status is “active.” Don’t forget to “save and submit” at the bottom of the screen once you’ve made your changes.

I’m a visual learner.  What does this change really look like?

Here it is:

4 Responses to “Getting More Money to Your Organization with FXecute!”

  1. I am very grateful for all these value for money innovations at GlobalGiving. I thank the GlobalGiving team for the tireless effort day in day out. Well Done once again for this wonderful Fxcute.

  2. Pamela Lee says:

    The email I received was very clear about what information will need to be input for international organizations, less so for US organizations. What do I need for a US organization? I’m expecting routing number and bank account number. Anything else?

  3. tanya weaver says:

    Can you tell me what information I need to update if everything is correct? I am a US organization. And, thanks for all you guys do!

  4. Liz Odera says:

    This is great! I am looking forward to a faster and less expensive. Will keep you posted how it goes.