{"id":29968,"date":"2026-09-11T14:10:44","date_gmt":"2026-09-11T17:10:44","guid":{"rendered":"https:\/\/sitawi.net\/?p=29968"},"modified":"2026-09-11T14:37:21","modified_gmt":"2026-09-11T17:37:21","slug":"como-reduzir-o-custo-de-cambio-e-aumentar-suas-doacoes-internacionais","status":"publish","type":"post","link":"https:\/\/sitawi.net\/en\/como-reduzir-o-custo-de-cambio-e-aumentar-suas-doacoes-internacionais\/","title":{"rendered":"How to reduce exchange rate costs and increase your international donations."},"content":{"rendered":"
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Receiving an international donation is a significant achievement for any social organization. But have you ever stopped to think about how much of that funding might be lost along the way before it reaches the project?<\/strong><\/p>\n

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When an organization receives funds from abroad, there is a step that often goes unnoticed: the conversion of foreign currency to Brazilian reais. Depending on the chosen institution and the terms of the transaction, the exchange rate cost can consume a significant portion of the donation.<\/p>\n

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In practice, this means that an organization can raise more funds without necessarily receiving more donations, simply by reducing what it loses in fees and currency spreads.<\/p>\n

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In this article, you will understand How does exchange rate cost work in international donations, what is currency spread, and what strategies can help your organization do more with the resources it receives from abroad?.<\/strong><\/p>\n

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What happens when an organization receives an international donation?<\/strong><\/h3>\n

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Imagine that a Brazilian organization receives a donation of US$ 100 thousand<\/strong> from a foreign foundation or company. The money arrives in Brazil in foreign currency and needs to be converted to reais before being used by the organization. This operation is carried out by an institution authorized to operate in the foreign exchange market.<\/p>\n

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This is when some of the main operational costs come into play, such as spread, IOF tax and any applicable fees.<\/strong>.\u00a0<\/p>\n

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The Central Bank explains that the Total Effective Value (VET)<\/strong> It takes into account the exchange rate, the IOF (tax on financial transactions), and any fees charged by the institution. Therefore, looking only at the advertised exchange rate is not enough to understand how much a transaction actually costs.<\/p>\n

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And there's an important detail: Small percentage differences can represent thousands of reais when the donation amount is high.<\/strong><\/p>\n

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What is currency spread?<\/strong><\/h3>\n

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The exchange rate spread, in simplified terms, is the difference between the market reference rate and the rate actually used in the foreign exchange transaction. It is one of the main variables that can increase the cost of an international transfer.<\/p>\n

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For example: if an organization receives US$$ 100,000 and pays a spread of 5%, the financial impact can be very significant. Now imagine that the same transaction is carried out with a spread of 0.7%.<\/p>\n

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The difference isn't just in the financial spreadsheet. It's in the resources that remain available to fund a project, expand an initiative, or benefit more people.<\/p>\n

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Therefore, for organizations that frequently receive international donations, negotiating or seeking more efficient exchange rates can be an important financial management strategy.<\/p>\n

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How much could your organization lose due to exchange rate fluctuations?<\/strong><\/h3>\n

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Let's use a simplified example:\u00a0<\/p>\n

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Suppose an organization receives US$100,000 in international donations, equivalent to approximately R$509,000. If the transaction has a cost of 0.5% related to the spread, the money lost in fees could reach approximately R$25,500. In a transaction with a spread of 0.7%, this cost would be significantly lower: about R$3,600.*<\/p>\n

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Of course, the final cost of a transaction depends on factors such as currency, the exchange rate of the day, IOF (tax on financial transactions), and other applicable conditions.Therefore, the numbers above serve only to illustrate the impact that the spread can have.<\/strong><\/p>\n

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But the logic is simple: The lower the cost of the operation, the higher the percentage of the donation that actually reaches the project.<\/strong> And for Third Sector organizations, every resource saved can translate into greater impact.<\/p>\n

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Confirms ways to reduce the exchange rate cost in international donations.<\/strong><\/h3>\n

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1. Don't choose an institution based solely on its rating.<\/strong><\/h4>\n

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It's common to compare institutions by looking only at their quoted rating. But the rating doesn't tell the whole story.<\/p>\n

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Before closing a deal, try to understand:<\/p>\n

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