AIESEC US Business Operation Model

Hello!We are the Organizational Health Task ForceWe’re here to teach you about how AIESEC operates not only as an organization, but as a corporation

1.AIESEC US Inc.This is the all encompassing body

AIESEC This is the non profit organization consisting of the MC and all the LCs

(You are here)

The Two Sides of AIESEC US Inc.

Global Current (GC)This is the body that supports and funds all of AIESEC’s operations not covered by exchange

What does AIESEC US Inc. do?

⊸ Honestly, not much, but what they provide is important

⊸ This is the entity that is an approved sponsor of the US State Department and is allotted ~600 J-1 Visas per year▫ This allows us to do exchange

(specifically iGIP)

So what does GC do?I’m so glad you asked...

2.Global Current (GC)What is this thing supporting us?

Operations

⊸ Global Current sells J-1 Visas to companies in the US

⊸ They receive the AIESEC US Inc. visas not used by AIESEC

⊸ Global Current has a higher gross profit margin per J-1 visa sold

⊸ Current revenues of ~$1.5M⊸ Works in the same office as our

Member Committee

Note: This is what a healthy business looks like

So where does that profit go?

⊸ That’s the support GC provides to AIESEC▫ This the main source of funds

for AIESEC operations

This leads us to...

3.AIESECYay, I know this one!

How do we operate compared to GC?

⊸ While GC is a streamlined organization with very low expenses, AIESEC is not

⊸ Let’s take a look at all of AIESEC’s expenses...

So all together

The Balance

That looks better, but even factoring in GC Revenues, AIESEC US Inc. is operating at a loss

So in a lot of ways, we need to make sure that we address the bigger picture.