Sector News

Sector News

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News from sector

  • Minimising Financial Wastage

    06 Sep, 2022

    Quality Principle 8.2.2 of ACFID’s Code of Conduct mentions that members should be effective in their use of resources and minimise financial wastage. Unfortunately, adherence for industry participants can be a challenge when dealing with the hidden costs of international payments. Consequently, wastage is prevalent and at times unknown when sending funds across borders. This can include wastage from:

    1.      Transfer fees

    2.      FX margin on currency conversions by sending financial institution

    3.      Intermediary bank fees

    4.      Beneficiary bank fees

    5.      FX margin on currency conversion by the receiving financial institution

    6.      Investigation fees for when funds do not arrive as intended

    StoneX Global Payments Michael Stachowiak, Head of Business Development, Australia and New Zealand, tells ACFID “The FX margin by the receiving financial institution, in particular, is the most significant and opaque of these costs as you have no control over the conversion process when done locally.”

    This is most commonly seen when sending hard currency (AUD, USD) to project/partner markets. There is a common misconception by partners that they can receive a better rate converting the funds locally with their bank, however being a captive client, this is not always the case.

    “Using local currency (or, as some call it, the functional currency) provides greater control, transparency and ultimately savings over how much money is received by partners in country, helping to minimise financial wastage for charities sending funds overseas”

    Furthermore, the Code goes on to mention the measurement, analysis and review of financial performance in Compliance Indicator 8.2.3., One interpretation for charities working overseas can be to periodically benchmark one's provider to demonstrate best practice adherence. The best provider today may not be the best provider tomorrow - so always review and monitor.

    Join StoneX Global Payments at the ACFID National Conference as we unpack these hidden costs and help members better review their financial performance and minimise financial wastage for their overseas transfers and help maximise their donor funds.

    ACFID formed a Corporate Partnership with StoneX Global Payments, one of the world's leading Global Payment Exchange providers, in 2020, after their years of longstanding support and sponsorship of the ACFID National Conference.

    2022 ©StoneX Financial Ltd (Company). All rights reserved. The Company is registered in England and Wales with company number 5616586 and is authorised and regulated by the Financial Conduct Authority FRN446717. This document and the information herein is provided confidentially for information purposes only to the recipient and shall not be deemed to be an offer for the sale or purchase of any financial services product transaction or advice.  This information is provided on an ‘as-is’ basis and may contain statements and opinions of the Company as well as excerpts and/or information from public sources and third parties to which no warranty, whether express or implied, is given as to its accuracy. The Company (on its behalf and on behalf of its group, directors, employees and agents) disclaims any and all liability as well as any third party claim that may arise from the accuracy and completeness of the information detailed herein, as well as the use of or reliance on this information by the recipient, any member of its group or any third party.

     

    Key definitions:

    Captive client: a client who is reluctant to change their product or vendor with another, due to its high cost (in terms of money, effort, discomfort etc)

    Hard currency: a stable and reliable currency that is not likely to fluctuate or depreciate suddenly.

    Intermediary: a person or agency that acts as the middleman between two parties in a financial transaction. For example, a bank or stockbroker. 

  • Further calls for aid program review | Pacific policies this election | PSEA Design Lab

    ACFID | 17 May, 2019

    ACFID responded to the opposition’s aid costings, reiterated the call for a review of Australia’s aid program, and CEO Marc Purcell spoke at a United Nations Association of Australia event.  

  • Labor release aid budget costings | ACFID's Policy Platform released | Calls for aid sector review

    ACFID | 10 May, 2019

    This week, Labor released their election policy costings, detailing an extra $1.6 billion for the sector over the next four years. 

  • Address by Senator Penny Wong | Choose Humane Day | Upcoming ACFID Webinar

    ACFID | 03 May, 2019

    This week, Shadow Foreign Affairs Minister, Penny Wong, delivered a speech to the Lowy Institute on foreign policy under a Shorten Labor Government. 

  • Bipartisan support for aid | OECD Aid Report 2018 | ACFID recruitment

    ACFID | 12 Apr, 2019

    This week ACFID welcomed a bipartisan parliamentary report by the Joint Standing Committee on Foreign Affairs recommended increasing Australia’s aid funding to at least 0.5 per cent of gross national income in 5 years, and reaching 0.7 per cent by 2030.

  • ACFID Federal Budget Analysis

    ACFID | 05 Apr, 2019

    The Federal Budget 2019-20 was handed down this week. ACFID responded in the media and provided an overnight analysis of budget. 

  • Senate Committee Report on Efic | Cholera in Mozambique and Yemen

    ACFID | 29 Mar, 2019

    ACFID this week expressed its disappointment in the Foreign Affairs, Defence and Trade Legislation Committee’s decision to pass the Export Finance and Insurance Corporation Amendment (Support for Infrastructure Financing) Bill 2019 [Provisions] without amendment.

  • Plight of the Yazidi | Ethical communications | Cyclone Idai

    ACFID | 22 Mar, 2019

    ACFID this week met a members of the Yazidi community of Australia as part of their campaign for safe release of Yazidis from ISIS as part of the ongoing battle for Baghouz. 

  • Opposition sets positive vision for development | Pacific infrastructure financing

    ACFID | 15 Mar, 2019

    Following a wide-ranging speech by Shadow Minister for Foreign Affairs, Penny Wong this week, ACFID CEO, Marc Purcell, praised the design of an international development program as part of Labor’s vision for Australian foreign policy. Purcell said: “If elected, Labor’s vision would trigger a wide-ranging recalibration of Australia’s international development program.

  • Theme announcement - ACFID Conference 2019 | Accusations against WWF | Women in Afghanistan

    ACFID | 08 Mar, 2019

    ACFID is proud to announce the details of its 2019 National Conference! Please save the dates of 23 - 24 October 2019 and join us as we examine the dynamics at play in “Championing Sustainable Development” and the prospects and opportunities for continued adaptation, resilience and relevance in the decades ahead.

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