our transfer costs
GiveDirectly currently allows donors to transfer money to poor households in Kenya and Uganda. Based on performance to date we expect to put 90% of your donation into the hands of a recipient in Kenya and 87% in Uganda. Note that this definition of efficiency is different from the "program services" metric many nonprofits use. Because we commit to using your donation only for direct transfers, we spend 100% of your donation on program services.
Our transfer costs include two components: enrollment/follow-up costs and wire transfer costs. As of FY 2013 we enrolled and followed up with 1,560 households in Kenya at an average cost of $74, or 6.6% of total costs. We paid foreign exchange fees of 1.8% on average for Kenyan shillings and pay standard M-Pesa tariffs of 1.6% of the amount transferred. In Uganda, we enrolled and began to follow up our first 960 households at a cost of $121, paid foreign exchange fees of 0.9% for Ugandan shillings, and pay MTN and EzeeMoney tariffs of 1.7%. The figures above describe how we spend the money we receive. Depending on how you donate you may pay an additional service fee. For example, our credit card processor charges a fee of approximately 3%. We encourage donors who wish to avoid these fees to donate via check or wire transfer.
our marketing and set-up costs
As of FY 2013, GiveDirectly has spent a total of $63,690 on marketing our services to donors. In FY 2013, this included staff time ($25,601), domestic office expenses ($4,896) and other expenses like regulatory filings and IT ($3,193). We have also spent $91,134 on set-up for our domestic ($38,821) and field operations ($7,905 in Kenya and $44,408 in Uganda). Set-up costs include things like staff time, regulatory filings and legal fees, and equipment. We do not currently accept donations from the public in support of these activities.