Content 1) Financial Sustainability in AIESEC 2) The Process 3) The Golden Rules 4) Mindsets 5) How YOU Contribute to Financial Success ? 6) Successful management of Finance and ER team
What is Financial Management? FINANCIAL MANAGEMENT is the job of managing the entity's resources so that it can meet its goals and objectives.
Financial Sustainability in AIESEC Partnerships
AIESEC International Cost/service Eg. Myaiesec.net, int. conferences,
AI to MC
MC to AI
MC to LC
LC to MC
Eg. Myaiesec.net, coaching, travel, etc
Local Committee Cost/service
Revenues/Cash Stakeholders to LC
AIESE C XP
Members to Stakeholders Marketing materials, matching
On Local Level Cost Structure
Cost Structur e
Pricing Model Revenue Stream
• Cost for providing AIESEC Experiences • Administration cost for managing the entity • Fixed cost vs. avoidable cost
• • • • •
EP FEE TN FEE Partnership /sponsoring Grants/Fund Bank interests/ dividends
Is it possible to be excellent in financial management, if you are good in budgeting but bad in reporting and reviewing?
The Processes • 1.Budget and Cash Flow: • 2.Internal Financial Policies: • 3.Investments: • 4.Fundraising at local level: • 5.Bookkeeping, Tracking and Review: • 6. Legal management at local level: • 7. Auditing and financial disclosing:
Budget and Cash flow A proper budget and cash flow need to be in place! These are the basic financial management tools. This helps you to make sustainable decision making in the short and long term.
Internal Financial Policies The policies facilitate the implementation of proper financial management in your LC and support financial decision-making.
Investments In case you want and are allowed by your laws to invest, then here is another process that you need to take in consideration and structure in your LC if itÂ´s needed.
Fundraising at Local Level
Here you include the fundraising in government, private entities, universities, etc, that FL people could run. That means, funds or grants in this entities in which we can apply to get money for your LC Activities.
Bookkeeping, Tracking, and Review Enter it, track it and review it! It is very important to be always updated on the past, current and future financial performance of your LC. There is no other way to do; enter it! Track it! Review it!
Legal Management at Local Level In our area, you donÂ´t need only to manage the financial side of our organization, but also the legal side. The legal relationships and contracts we have with our partners, trainees and EPs, will be one of the most important processes to ensure and track.
Auditing and Financial Disclosing From the above, you must be able to prepare correct financial data and statements. As an audit could be required as a possible membership criteria, it is important that an internal auditor and your Board are checking your finances as well.
Golden Rules Be Pessimistic
Give often but less, take rarely but more
Base Expenses on Incomes
Revenues > Costs
Mindsets Shall AIESEC be Sustainable?
Is profit our Goal?
Shall we save?
Because AIESEC of the AIESEC Way and our Values!
• Partnerships, selling marketing products, Attendee Fee…
• Media Partnerships
Projects Im& Com TM
• Collect Membership fees
• Invest your Money, Find Lowest Cost Products, Proposals, write grants…
• Collect EP Fees, Raise more EPs
• Sell TNs, encourage re-signs, partnerships, donations
How can YOU contribute to financial success?
Successful Management of Finance & ER Teams Top 5 reasons VP ERs are misunderstood 1. I bring all the money, and all of you just spend it 2. It is always my fault if we do not have money or cash flow 3. I am always out of the office running around 4. I am not appreciated enough for my hard efforts, and you donâ€™t understand how hard my job really is 5. I have to report to REAL people, not just AIESECers
Successful Management of Finance & ER Teams Top 3 Reasons VP Finances are misunderstood 1. I manage the resources but I am not connected with the operations and decision making processes 2. I am always the pessimistic one since I always see the risks in everything and I always say NO 3. I have a very lonely job and the majority of the time I am in the office