BBB Wise Giving Report for
Children International

BBB Wise Giving Report issued May 2008
BBB Wise Giving Report expires May 2010


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 help children living in dire poverty."

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Evaluation Conclusions

               

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

               

With 18 field project locations in 11 countries around the world (Chile, Colombia, the Dominican Republic, Ecuador, Guatemala, Honduras, India, Mexico, the Philippines, the United States and Zambia), through its sponsorship program, CI provides financial and material aid to poverty-stricken children and their families. According to CI, more than 300,000 sponsored children and their families are currently benefiting from one or more of the following: annual health exams, access to medical care when ill, nutrition education and counseling, school supplies and fees, clothing, and items for the home.

For the fiscal year ended September 30, 2007, CI's program expenses were:

  
Worldwide program services 103,532,079
Total Program Expenses: $103,532,079
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Child Sponsorship Program

               

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.

CI reports that at least every 18 months, consultants, who are field experts in international health and human services, conduct personal on-site program evaluations to verify that the work plans are followed and that benefit programs are effectively delivered. These evaluations include interviews with sponsored families, community representatives and project 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 quarterly 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*:
 $376,695

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

Board Size: 7

Paid Staff Size: 223

*October 1, 2005 - September 30, 2006 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, planned giving, and face to face
Fund raising costs were 11% of related contributions. (Related contributions, which totaled $128,703,029, 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, 2007.

Source of Funds  
Sponsorships ans contributions 86,226,474
Corporate gifts andcommodities 40,094,152
Net endowment earnings 1,766,470
Legacies and bequests 1,420,967
Increase in unrealized gain on investments 1,238,827
Grants and other income 961,436
Increase in value of non-deliverable forward 62,348
Decrease in actuarial liability for gift annuities -26,023
Total Income $131,744,651


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Uses of Funds as a % of Total Expenses

Programs: 82%  Fund Raising: 11%  Administrative: 7% 

Total income   $131,744,651
  Program expenses $103,532,079
  Fund raising expenses 14,543,683
  Administrative expenses 8,960,253
 
Total expenses   $127,036,015
Income in Excess of Expenses   4,708,636
Beginning net assets   32,837,535
Ending net assets   37,546,171
Total liabilities   8,383,658
Total assets   $45,929,829

Note: According to CI's audited financial statements for the fiscal year ended September 30, 2007, the organization received $40,094,152 in in-kind donations including educational supplies ($32,719,091), clothing and related items ($5,227,930), and medical supplies ($2,147,131).

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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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