BBB Wise Giving Report for
Children International

BBB Wise Giving Report issued June 2010
BBB Wise Giving Report expires June 2012


This BBB Accredited charity meets all 20 Standards for Charity Accountability and is a Seal Holder. Find out more...


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Charity Contact Information

Name: Children International
Address: 2000 East Red Bridge Road
  Kansas City, MO 64131
Phone: 816-942-2000
800-888-3089
Web Address: www.children.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1951, Missouri
Affiliates: None
Stated Purpose: "to bring real and lasting change to children living in poverty."

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Evaluation Conclusions

              

Children International (CI) meets the 20 Standards for Charity Accountability.
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Programs

              

CI provides financial and material aid to poverty-stricken children and their families in 18 locations in 12 countries, including Chile, Colombia, the Dominican Republic, Ecuador, Guatemala, Honduras, India, Mexico, the Philippines, Uganda, the United States and Zambia. According to CI, more than 335,000 sponsored children and their families are currently benefiting from one or more of the following: annual health exams, access to medical care, nutrition education and counseling, school supplies and fees, clothing, and items for the home.

For the fiscal year ended September 30, 2009, CI's program expenses were:

  
Worldwide program services 114,949,143
Total Program Expenses: $114,949,143
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Child Sponsorship

              

According to CI, once a child is assigned to a sponsor, a current photo and a family record is mailed to the sponsor. CI's field projects collect, verify and maintain information on sponsored children in Family Records. These records, updated annually, are submitted to the Kansas City Headquarters and contain vital statistics about the child being sponsored, the child's family members and the construction of the child's home. Additionally, CI Field Projects file quarterly reports that summarize benefits the children receive using documents such as health records, nutritional status reports and signed benefit registers.

CI reports that the funds collected are used to provide goods and services for sponsored children and their families.  The need for these goods and services are jointly evaluated by the Kansas City headquarters staff and field staff. Every year each Field Project develops a work plan that outlines program activities and services and material benefits that will be provided to the children over the course of the year.

To ensure efficiency and accountability, regional program staff and program officers from CI conduct annual on-site evaluations to verify that work plans are followed and that benefit programs are administered and delivered effectively. These evaluations include interviews with sponsored families, community represenatives and field staff.


Sponsor's contributions help pay for the benefits that each child receives, and are used to support programs and provide benefits primarily in the areas of health and education. Benefits, which can vary from child to child, include: annual health exams, access to medical care when ill, nutrition education and counseling, school supplies and fees, clothing, and items for the home.

Each Field Project prepares an annual budget and regular financial reports are prepared quarterly and sent to CI's headquarters for analysis and follow-up. Independent CPA firms in-country perform semi-annual financial audits on each Field Project. CI internal auditors conduct financial audits annually in each field office to ensure that the office is following all accounting procedures as established in the CI Field Project Financial Manual.

In addition to the monthly sponsorship donation CI solicits for special gifts for sponsored children. Specifically, CI requests a voluntary donation for birthdays, Christmas, Easter and Special Hug Day. Policies regarding additional gifts and correspondence between sponsors and children are outlined in CI's "Sponsorship Guidebook."

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Governance

              

Chief Executive : James R. Cook, President and CEO
Compensation*:
$453,998

Chair of the Board: Dean Oskvig
Chair's Profession / Business Affiliation:

Board Size: 7

Paid Staff Size: 217

*October 1, 2008 - September 30, 2009 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising

              

Method(s) Used:

Direct mail, telemarketing, special events, television, radio, grant proposals, Internet appeals, door to door solicitations, planned giving arrangements, and face to face solicitations.
Fund raising costs were 12% of related contributions. (Related contributions, which totaled $145,353,067, are donations received as a result of fund raising activities.)
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Tax Status

              

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
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Financial

              

The following information is based on CI's audited financial statements for the fiscal year ended September 30, 2009.

Source of Funds  
Sponsorships and contributions 91,843,779
Corporate gifts and commodities 52,846,856
Legacies and bequests 963,834
Grants and other income 662,432
Total Income $146,316,901


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Uses of Funds as a % of Total Expenses

Programs: 80%  Fund Raising: 13%  Administrative: 7% 

Total income   $146,316,901
  Program expenses $114,949,143
  Fund raising expenses 18,058,888
  Administrative expenses 9,687,948
 
Total expenses   $142,695,979
Income in Excess of Expenses   3,620,922
Beginning net assets   37,771,103
Other Changes in Net Assets (401,688)
Ending net assets   40,990,337
Total liabilities   5,151,381
Total assets   $46,141,718

Note 1: In the above financial section, other changes in net assets (-$401,688) represents the sum of net realized endowment losses, increase in unrealized gain on investment, increase in actuarial liability for gift annuities, and increase in value of deliverable and non-deliverable forward contracts.

Note 2: For the year ended September 30, 2009, CI had in-kind income in the amount of $52,846,856 which includes educational supplies ($46,994,477), clothing and other ($4,825,271), and medical supplies ($1,027,108).

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An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the BBB Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

This report is not to be used for fund raising or promotional purposes.

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