BBB Wise Giving Report for
Compassion International

BBB Wise Giving Report issued August 2011
BBB Wise Giving Report expires August 2013


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 Franc), 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 to 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

              

According to CI, the organization provides food, clothing, health monitoring, formal education, and spiritual training, as well as developmental opportunities such as skills training, for over 1.2 million children in 26 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 the translation of correspondence between child and sponsor.

For the fiscal year ended June 30, 2010, CI's program expenses were:

  
Child development programs 364,842,037
Sponsor/donor ministries 25,166,424
Total Program Expenses: $390,008,461
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Child Sponsorship

              

CI seeks $38 a month to sponsor a child from one of the 26 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 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 and CEO
Compensation*:
$306,244

Chair of the Board: Robert Hawkins
Chair's Profession / Business Affiliation: Hawkins Enterprises Group LLC, Owner, Attorney at Law

Board Size: 10

Paid Staff Size: 919

*July 1, 2009 - June 30, 2010 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, telephone, special events, print advertisements, radio, grant proposals, Internet appeals, planned giving, cause-related marketing, and volunteer mobilization.
Fund raising costs were 13% of related contributions. (Related contributions, which totaled $359,344,737, 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, 2010.

Source of Funds  
Contributions 359,124,346
Contributions from affiliated organizations 146,697,921
Interest, dividends and other income 945,961
Gifts in-kind 220,391
Net realized and unrealized gains on investments and depostis of assets 212,018
Changes in value of split interest agreements -9,491
Total Income $507,191,146


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Uses of Funds as a % of Total Expenses

Programs: 82%  Fund Raising: 10%  Administrative: 8% 

Total income   $507,191,146
  Program expenses $390,008,461
  Fund raising expenses 45,932,098
  Administrative expenses 35,826,758
 
Total expenses   $471,767,317
Income in Excess of Expenses   35,423,829
Beginning net assets   105,082,777
Ending net assets   140,506,606
Total liabilities   57,491,389
Total assets   $197,997,995

Note: For the year ended June 30, 2010, CI had in-kind income in the amount of $220,391 including software (208,291) and equipment ($12,100).

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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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