BBB Wise Giving Report for
Compassion International

BBB Wise Giving Report issued February 2009
BBB Wise Giving Report expires February 2011


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: Compassion International
Address: 12290 Voyager Parkway
  Colorado Springs, CO 80921
Phone: 800-336-7676
719-487-7000
Web Address: www.compassion.com
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1956, Illinois
Affiliates: Compassion Canada, Compassion Australia, Compassion Suisse, Compassion Deutschland, Service d' Entraide et de Liason (SEL-France), Compassion Italia, Compassion Korea, Compassion Nederland, TEAR Fund New Zealand, Compassion United Kingdom
Stated Purpose: "to advocate for children, to release them from their spiritual, economic, social, and physical poverty and enable them to become responsible and fulfilled Christian adults."

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Evaluation Conclusions

              

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

              

CI provides food, clothing, health monitoring, formal education, and spiritual training for children in 25 countries. Through CI’s Leadership Development initiative the organization helps high achievers from among the sponsored children to attend college with educational expenses for tuition, books, and room and board. In addition to sending periodic progress reports and newsletters, CI also arranges site visits for donors to meet with the individual child being sponsored and translation of correspondence between child and sponsor.

For the fiscal year ended June 30, 2008, CI's program expenses were:

  
Child development program 277,360,616
Sponsor/donor ministries 25,375,107
Total Program Expenses: $302,735,723
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Child Sponsorship

              

CI seeks $32 a month to sponsor a child from one of the 25 countries in which it currently operates. CI reports that sponsors receive the story and photo of a child that is available for sponsorship, and later will communicate with their child through personal letters and receive regular updates on the sponsored child's progress.  

CI works exclusively with local evangelical church partners in each country in which it is active. These churches interview the children and their families, identify the needs of the children, and provide educational opportunities, supplemental nutrition, health screening and monitoring, social skills development and Christian training.   

According to CI, approximately every two years, project workers and/or field staff gather the following on the sponsored child: family/guardian information, schooling, church, household duties, favorite sports and hobbies, and medical data.  

CI reports that at least 80% of expenditures are used for child development programs.   As well, CI states that all gifts (birthday, Christmas, family, etc.) have no fund administrative or fund raising costs deducted from the total amount received.  

In addition to annual external financial audits, which include overseas visits to children and projects, CI reports that it regularly conducts internal audits to ensure that funds are properly used, tracked, and managed in every project for every child.  

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Governance

              

Chief Executive : Wesley K. Stafford, President/CEO
Compensation*:
$227,194

Chair of the Board: Robert Hawkins
Chair's Profession / Business Affiliation: VP and General Manager, Claimant Management Systems, LLC

Board Size: 10

Paid Staff Size: 684

*July 1, 2007 - June 30, 2008 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, print advertisements, television, radio, grant proposals, Internet appeals, planned giving, and cause-related marketing.
Fund raising costs were 9% of related contributions. (Related contributions, which totaled $368,223,553, 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 June 30, 2008.

Source of Funds  
Contributions 267,931,344
Contributions from affiliated organizations 98,123,576
Bequests and other income 1,840,395
Interest and dividends 1,276,893
Gifts in kind 328,238
Changes in value of split-interest agreements -239,924
Net realized and unrealized gains (losses) on investments and disposition of assets -887,683
Total Income $368,372,839


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Uses of Funds as a % of Total Expenses

Programs: 83%  Fund Raising: 9%  Administrative: 8% 

Total income   $368,372,839
  Program expenses $302,735,723
  Fund raising expenses 32,292,461
  Administrative expenses 29,249,353
 
Total expenses   $364,277,537
Income in Excess of Expenses   4,095,302
Beginning net assets   94,458,413
Ending net assets   98,553,715
Total liabilities   43,623,984
Total assets   $142,177,699


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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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