Case Study: Under the Reading Tree
Custom House Helps Under the Reading Tree to Establish Roots and Reach New Heights
Small operations, especially in the non-profit field, are often under-resourced and over-worked. The last thing they need is to have to spend precious resources on time-consuming operational details, such as managing currency exchange.
Under the Reading Tree faced just this problem. The Canadian non-profit organization was established in 2003 to raise funds that were desperately needed to build, maintain, and stock community libraries in Africa.
Literacy in Africa ranges from as high as 80% to as low as 30%. The United Nations has expressed a need for literacy programs to promote broader social and economic development.
During a trip to Africa, Under the Reading Tree’s founder, Peter Hodson, recognized the pressing need for books; books that are needed to educate a country’s students and help to lift that country out of poverty. “Despite the movement in many African countries towards free education” he explained, “students still struggle to afford the textbooks they need for that education.”
Five years ago, Hodson founded Under the Reading Tree to answer this need. Since then the organization has established three libraries in Uganda and one in Tanzania, is in the process of building its first library from the ground up and has created literary programs to facilitate learning. It’s a small organization that is making a big difference.
Putting Down Roots
Under the Reading Tree raises funds in Canada that are then sent to Africa to purchase building supplies and books and to acquire staff locally. The concept has worked well and is gathering momentum.
In its beginnings, however, Under the Learning Tree was hampered by the nagging details associated with this type of non-profit work. Specifically, its success was hindered by the process of sending money from North America to Africa.
Only $1200 can support three libraries in Uganda for a month. Books provided by Under the Reading Tree are helping students get an education that was previously impossible.
“We were getting hammered by transaction fees,” Hodson explains. “In some cases we couldn’t transfer the funds at all, let alone transfer them in Tanzanian or Ugandan Shillings. And, often, when the funds arrived in Africa, there was a difference between the amount we sent and the amount they received because the value of the dollar had shifted. As a small organization with local staff to pay and rent to meet, every dollar is important so this became a serious problem.”
At the same time, inefficiencies in wire transfers meant that Hodson was making too many trips to the bank and spending too much time dealing with inconsistencies and inadequacies. For a small non-profit that relies on a handful of dedicated volunteers, time is a precious commodity. Hodson started to look for other solutions.
Nurturing Growth
After discussing his problem with Custom House, Hobson agreed he needed a simpler system that would save Under the Learning Tree both time and money. “Right away it was evident that Custom House understood our goals,” says Hodson.
Custom House recognized that Under the Reading Tree needed an efficient and stable wire transfer option and the ability to make multiple transactions. The organization was set up with a customized online system that catered to their specific needs; more importantly, the process offered stability in a fluctuating market and the ability to personally transfer funds in global markets anywhere, anytime.
“Now, I can personally transfer funds anytime and anywhere,” Hodson says. “I do all my wire transfers from my home office computer and can transfer money 24 hours a day, 7 days a week.”
“Our attempts with other currency exchange methods were draining our savings account, but Custom House offered us competitive rates! They understand that for a small non-profit organization every dollar counts.”
Further, Hodson added, the system allows him to convert Canadian funds into Tanzanian or Ugandan Shillings before he sends the money, so he always knows exactly how much is going to arrive in Africa. This helps considerably with his budgeting.
Now that his frustrating operational problems are solved, Hodson can look forward to the future. He plans on growing the organization across the continent, building one library in each African country before he dies.
“Everywhere we want to go, Custom House operates,” says Hodson. They understood my goals and motivations - that we want to bring literacy to Africa, and that I’m in this for life. Building in other African countries now seems like a real and attainable goal.”
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