Leadership Development Financial Integrity

Leadership Development Financial Integrity
How does Compassion ensure that my support actually benefits the child I sponsor?

Compassion conducts audits regularly to make sure funds are properly received, tracked and managed. Every financial process — from local field child development centers to the Global Ministry Center in Colorado Springs — is regularly audited both internally and externally.

But it's not enough to ensure that funds are reaching your child's local child development center and being spent on planned activities. Like you, we want to be sure that real development is taking place in the life of every sponsored child. Compassion works hard to monitor and evaluate each local center in terms of program effectiveness and long-term impact — right down to the individual student. Any time we see an irregularity, we take immediate and appropriate action.

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Can I see a copy of Compassion's most recent audited financial statement?

Yes. Compassion is audited each year by an independent accounting firm. We publish this report in its entirety and make it available to anyone at any time. Accountability is a commitment and a value that drives our whole organization. We are totally committed to earning and keeping your trust.

If you have any questions about financial issues, please call us toll free at (800) 336-7676. Our Sponsor Relations representatives will gladly respond to any questions you might have.

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Are my contributions to Compassion, including my sponsorship support and gifts, tax-deductible?

Yes. All contributions to Compassion are tax-deductible in the United States. As a requirement of the 1993 Revenue Reconciliation Act, we verify that no goods or services of value are given to you for your contribution.

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What percentage of expenditures are spent on program activities?

Throughout the years, Compassion has consistently averaged more than 80 percent of total expenditures being used for program activities, with less than 20 percent being used for fundraising and administration. During the past five years, the actual program percentage has averaged nearly 82 percent.

We use conservative accounting methods that do not inflate our effectiveness in this regard. That's why Compassion earns the very highest ratings from independent agencies that look into the financial management of nonprofit organizations, including:

  • Forbes "Giving Smartly" Charities 2001 Listing
  • The NonProfit Times' "Top 100 Revenues"
  • The Chronicle of Philanthropy's "Philanthropy 400"
  • The American Institute of Philanthropy's "Top Rated Charities"

In addition, Compassion is a member of several accrediting agencies, including:

  • Evangelical Council for Financial Accountability (founding member)
  • Better Business Bureau Wise Giving Alliance

Learn more about Compassion's commitment to stewardship.

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