AIESEC INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS

AS AT MAY 31, 2020

3. Significant accounting policies (cont'd.)

(e) Deferred contributions - restricted funds

All revenues specifically allocated to the restricted funds are only expendable for the purpose of the project specifically carrying the name of the fund, in accordance with the financial regulations of the Organization and any guidelines specified by the donors.

Global Funds are investments by member committees for the purpose of supporting the Global Network in various areas. Fund contributions can also come from alumni donations, individual entities, member committees and sponsors. Global funds do not pay for any services provided by the Organization.

As per regulation of the Global Compendium, which serves as Constitution for the Organization, the Global funds are as follows:

Global Travel Cost Sharing Fund

The Travel Cost Sharing Fund aims to ensure that travel costs to International Congress and International Presidents Meeting are shared across the Organization, regardless of the location and financial reality, in order to provide fair opportunities for every member committee to send at least one representative to the two International Legislative Meetings of the Organization per annum. Contributions to the fund are made by, and are redistributed to, the various member committees. The upper limit of the fund is set at €60,000.

Global Meetings Travel Fund

The Global Meetings Travel Fund aims to subsidize the travel costs of participants to international meetings with needed representation. These meetings are to be conducted for issues related to the global direction of the Organization or for resolving issues which concern the organization on an international level.

Global Roadmap Fund

The Global Roadmap fund aims to support global initiatives that connect to the Global Roadmap and to contribute to the long-term goal of the Organization.

Global Legal Management Fund

The Global Legal Management Fund is set up to support and enforce trademark registration in the countries that the Organization is currently operating in and will be expanding to in the coming years. lt provides financial support for countries registering the trademark that do not have the financial capacity to do so. The scope of the fund was widened to include providing financial assistance for legal fees related to the protection of the Organization's brand and legality globally.

Global Information Management Systems Fund

The Global Information Management Systems Fund is set up with the objective to carry out needed investments in the Global Information Management Systems and cover eventual emergencies. lnvestments will be made for the strategy of the Organization in order to ensure the system design satisfies all aspects as described in the Application Development and User Experience section of the lM Principles. The minimum contribution to the Fund is set at $50,000 whereas the upper limit is fixed at $200,000.