CREATING VALUE
Atlas Corps creates value by leveraging the experienced efforts of skilled nonprofit professionals in volunteer placements overseas. By recruiting and placing these Fellows at Host organizations, Atlas Corps seizes the opportunity created by a market failure - the inability for individuals from overseas to volunteer in the United States due to visa restrictions and limited resources. Simply put, there are thousands of experienced, talented international leaders who would be happy to volunteer a year of their life in the U.S., but they don't have the money or the opportunity to give of their time and talent.
LEVERAGING VALUE
Rather than just place these Fellows at U.S. nonprofit organizations as an expensive international exchange program, Atlas Corps charges a cost-share to U.S. nonprofit "Host" organizations based on the AmeriCorps VISTA model. With AmeriCorps VISTA, it is common for Host organizations to pay a cost share to the U.S. Government for each volunteer. These VISTA Members are full-time, yearlong volunteers usually right out of college. Our cost share is less than the cost of an entry level employee (about $29,500 depending on the city), but our Fellows are easily worth well above $50,000 based on what the market would pay for the typical profile of our Fellows (29 years old, with five years of experience, a masters degree, bilingual with international perspectives).
OPPORTUNITY COST
What are the alternatives? U.S. nonprofit organizations who address anti-poverty issues have the option to apply to take AmeriCorps VISTA Volunteers, but there is a waiting list for AmeriCorps VISTA Volunteers all across the United States. Host organizations could try to find another volunteer placement organization, such as Jesuit Volunteer Corps or Teach for America, but these organizations are either limited in scope and/or limited in size. Many Host organizations seek out graduate school interns, often paying them $10 an hour or approximately $20,000 a year to be full-time volunteers and often only for one semester, after which they are replaced by another student. Host organizations could decide to expand their capacity by hiring additional staff, however an entry level employee costs organizations well over $30,000 a year when you add up salary, benefits (health care), and recruiting costs. Of course, none of these options are true comparisons, because the Atlas Corps Fellow arrives with over three years of experience and is selected among thousands who apply. The true value of these Fellows is difficult to estimate, just as it would be difficult for a university to assign a monetary value to having a Rhodes or Fulbright Scholar.
POSSIBLE UNIVERSE
On the Fellow side of the equation, Atlas Corps started with leaders from India, Colombia and the U.S. but has expanded to recruit candidates from all over the world. With regard to Host organizations, we began with organizations in DC, Baltimore, New York and Bogota, Colombia, however we plan to expand to Seattle, New Delhi and other cities around the world. While we are known for placing leaders at famous, international organizations such as Ashoka, the Grameen Foundation, Oxfam and the U.S. Peace Corps, we also regularly place Fellows at smaller, community based organizations as well.
INCOME VS. EXPENSES
With economies of scale, the per-Fellow expense has dropped every year from approximately $44,000 in the first year to eventually below $34,000. The cost share has increased over time as well, starting as low as $17,000 and eventually rising above $30,000. Soon Atlas Corps will 90% sustainable based on cost share alone and eventually Atlas Corps could be 100% sustainable based on income from Host organizations.
ADDITIONAL FUNDING SOURCES
In addition to the income-generating cost share, Atlas Corps has achieved a diverse funding base. Corporations, foundations, governments, online contests and over 2,500 individuals have contributed to Atlas Corps. These additional funding sources provide Atlas Corps the growth capital necessary to expand to new cities and strengthen our model, while the cost share income covers the vast majority of the operating expenses.
SUSTAINABILITY AND SCALE
As the cost share approaches the per-fellow expenses, Atlas Corps will quickly scale to involve thousands of Fellows from countries around the world volunteering in cities all around the world. Eventually we will achieve our systems changing impact when the "developing world" is no longer seen as a recipient for aide, but rather a partner in development. Eventually the global nonprofit sector will leverage the skills, talent and time from inspiring individuals around the world, no matter where they were born. Eventually, we will see how only through global partnerships and cooperation and can we tackle global challenges. As we change our perspective on how to solve intractable challenges, we will begin to change the world.
