We could answer the question for you, but you’d take what we say with a grain of salt, right?

How about what Ryan Langford has to say about us?

Ryan joined his wife, Stephanie, on our recent blog trip to the Philippines. He wasn’t there as a blogger, but he felt compelled to tell you what he discovered.

I’ve been praying a lot lately about the money [God has] entrusted to Stephanie and me to steward, and I can’t shake the feeling that He’s calling us to greater levels of both stewardship and generosity.

Generosity is being willing to part with the resources under your control for the good of others. Stewardship gives generosity focus. Its purpose is to maximize the impact of our generosity.

So with this sense of calling in my heart, I tagged along with the Compassion Bloggers as they visited the Philippines to see the work that Compassion International is doing among the children there. We had the opportunity to visit the head office, four development centers, and six homes — and to meet dozens of inspiring volunteers and hundreds of Filipino children.

As we visited all these places and met all these beautiful people, one question burned in my heart as the backdrop for the entire trip:

Does the money that is invested with Compassion International produce a good return on investment?

This is the question I ask myself when I’m making business decisions, so why shouldn’t I look for a good return when I’m investing in God’s business? So I spent the entire week asking hard questions, poring through accounting books, reviewing auditing practices, and evaluating first-hand the kind of impact and scale of impact of Compassion’s work in the lives of those we are called to love and serve for the glory of God.

I crossed the line of professional courtesy before I could shake the first hand, and that line quickly disappeared behind me as I invited myself into every area that I felt mattered in my quest to answer the question. To be fair to the folks at Compassion, though, they never seemed to mind my intrusions and every question was met with complete transparency and invitations to explore further.

Now that we’ve set the stage, read the entire post at Keeper of the Home.

My Account l Sponsor a Child l Help Babies and Moms l Crisis Updates

You’ve heard it mentioned before. In fact, if you’ve been with Compassion long enough, you’ve heard it eight other times already. We have once again received Charity Navigator’s highest rating – four stars – for responsible financial management.

It would be easy to hear this news and say, “Yeah, yeah, they did it again. They and umpteen other charities, right?”

Well, not exactly.

According to the largest independent evaluator of charities in the nation, receiving the four-star rating nine times is “exceptional.” Only 1 percent of charities has received Charity Navigator’s highest rating as many times as we have.

“We take stewardship very seriously – for the sake of the children we serve and the donors who entrust their giving to us. We are deeply honored to again receive this significant recognition.” – Compassion President Dr. Wess Stafford.

My Account l Sponsor a Child l Help Babies and Moms l Crisis Updates

With programs in 26 countries, many people wonder how we maintain the excellence and good stewardship of our operations around the world. In addition to annual external audits, we ensure the highest integrity in our programs through internal auditing.

Internal auditing, both in the development centers and country offices, is designed to determine how well our operations are running and to identify weaknesses that are causing goals and objectives to go unmet.

The first type of audit is known as a Center/Partnership Audit. Its primary purpose is to ensure that development centers are complying with our standards.

“These are conducted by a Partnership Auditor who resides in the country office,” says Walt Hintz, Compassion’s Field Audit Manager. There are about 50 Partnership Auditors worldwide. Partnership Auditors look at both financial and operational issues.

The center audits cover areas such as management, structure, budget, Christian development, finances and program communications. The focus is to make sure that the kids are communicating with their sponsors, that they are attending the centers, that funds are being used for their intended purposes, and that the program is being implemented the way it should be.

The first step of the auditing process is planning. The Partnership Auditors coordinate the auditing schedule with the Partnership Facilitators (who are the link between the country offices and the child development centers) and the directors of each center.

Before any audit takes place, the Partnership Auditors review past information from each center. This includes previous auditing results, Monthly Financial Reports, and Complementary Intervention (CIV) Fund proposals and reports. The Partnership Auditors assess this information before arriving at the center so that they can have a clear understanding of the potential risks and issues.

Finally, the Partnership Auditors may interview country office staff, such as the accountant, the CIV administrator, and the communications staff who have experience working with the center, prior to visiting the center. Then it’s time to visit the centers.

On average, a Partnership Auditor spends eight to ten hours in each center. While there, the auditor conducts interviews with the teachers and students and goes through financial records, child attendance records, child files and organizational documents.

A typical risk auditors look to assess involves proper documentation of expenses. Many of the countries we work with are cash societies, and receipts are not typically given. Center workers often have to ask the vendor to hand write a receipt, and it is up to the auditor to emphasize the importance of proper financial documentation to the center leaders.

After the audit takes place, the auditor communicates the findings with the center leadership, the Partnership Facilitator and the Country Management Team. Communicating the risk areas will ultimately lead to improving the partnership between Compassion and the local church.

Post audit, the auditor conducts an exit meeting to discuss the findings from the audit with the church partner and the Partnership Facilitator who is responsible for the relationship between the center and the country office.

During this meeting, the Partnership Facilitator and Partnership Auditor will document “Action Items,” — the important issues that need to be dealt with — and rate the items according to the level of risk. The Partnership Facilitator will work with the Implementing Church Partner to develop a plan to address the risk areas.

Afterward, a the completed audit report will be sent to the Country Director, the Partnership Facilitator, and Program Implementation Manager.

Our corporate standard is that 60 percent of centers must be audited each year with no more than 30 months between audits. This audit frequency prevents centers from going unaudited for more than two-and-a-half years. Also, it ensures that higher risk centers will be visited more frequently.

In between audits, the centers are frequently communicated with and visited by the Partnership Facilitators to ensure all is well.

Similar to the Partnership Audits, the second category of internal audits is the Country Office Audit.

Country Office Audits are holistic reviews of the operations and administration of our country offices. In order to improve business processes, these audits cover areas such as organizational management, human resources, payroll, financial reporting and program communications.

Typically, this includes four to eight center visits, and unlike center audits, these visits look for larger trends that reveal management, country or process issues.

Country Office Audits are conducted by four Senior Field Auditors, who are responsible for performing audits within a geographic area.

Like the Partnership Audits, the Country Office Audits are primarily risk based. Country offices are audited approximately every 24 months.

Once in the field, the auditor has an initial meeting with the Country Management Team (CMT) of that country office. This is followed by a series of individual interviews and center visits. For a period of about two weeks, the auditor conducts interviews and reviews documentation in both the country office and the centers.

Based on what the Field Auditor finds, certain issues will become “Action Items.” At the conclusion of the audit, the Auditor provides a list of these action items to the country office and the CMT during the exit meeting. The office staff determine how to address and resolve those items. The plan is then approved and it comes back to our Global Ministry Center in Colorado for filing. Internal Audit staff receive updates as the plans are completed.

Most issues are resolved within 90 days. Sometimes, action items are dealt with immediately, and sometimes complex issues may take years. Even though the issues range in severity, the vast majority of issues are considered low risk. Very few are considered high risk.

In the end, our goal in internally auditing both our centers and country offices is to uphold our core values and provide accountability for the goals and objectives we have set out to achieve.

My Account l Sponsor a Child l Help Babies and Moms l Crisis Updates

How many times have you heard about the misuse of funds hindering an organization’s effectiveness, or greed compromising decision-making and values? Regrettably, I think we all have heard it too many times.

Working in the contact center, sponsors and donors call me and want to know if we — if Compassion — is trustworthy or if it’s a scam. These conversations are difficult because I cannot convince that person — through one phone call — to trust us, to trust Compassion.

If someone has been “burned” before, they look for faults in everything — the letters from their sponsored child, the pictures we send them, the way we use the funds we receive.

I have heard questions like “Is my child even real,” and “How do I know that the funds are actually getting to the child?”

I really don’t blame anyone for asking these questions. Were I on the other end of the phone, I’d be asking the same things.

For those of you wondering, here are my thoughts:

We, as Christians, are called to be good stewards of the resources God has given us. Here at Compassion, we are very passionate about ensuring we are.

Internal and independent audits are regularly conducted for our offices in the field and here in Colorado Springs. Every financial process undergoes intensive and continual scrutiny to ensure that funds are properly received, tracked, and managed. We want our program to be effective, so we monitor the child development centers to make sure they are making a difference in the lives of the children we serve.

Our goal is that the children in our program follow Jesus Christ in faith and deed, support themselves and share with others in need, are responsible members of their families, churches, communities and nations; and maintain their own physical well-being by the time they complete our Child Sponsorship Program. We have put measures in place to make sure that these goals are being accomplished.

Is Compassion a trustworthy organization?

Yes, I think so — but don’t just take my word for it. If you are a sponsor with Compassion and have thought about this before, I encourage you to check out Charity Navigator’s review of Compassion.

Not only did we receive the highest rating of four stars last year, but we received it for the previous seven years as well. Chris mentioned that in a blog post last week, “How is My Money Used Each Month?”

The question of trustworthiness goes beyond financial accountability. Regrettably, there aren’t any independent rating agencies that I’m aware of that grade organizations on how trustworthy they are. But here are some other resources for you to review if you want more information:

• What does it mean for an organization to “live with integrity”?
• Compassion International’s profile at the Evangelical Council for Financial Accountability
• Compassion International meets the Better Business Bureau Wise Giving Alliance’s Standards for Charity Accountability

My Account l Sponsor a Child l Help Babies and Moms l Crisis Updates

Thirty-eight dollars a month. That’s how much it costs to sponsor a child through Compassion, which is more than the price of sponsorship at other organizations. The difference sometimes leads to questions like these.

“When I first starting sponsoring it [the sponsorship rate] was $22 a month; that was 1989, or 1990 I forget, I’m getting old. During college I stopped sponsoring for a few years and then it was I think $26 or $28 a month . . . Other organizations have stayed about $22-24 a month . . . what extra services does Compassion offer for the extra money . . . what does Compassion provide that other organizations do not supply at $22-24 month?” — Dwight“

“I am getting a bit concerned with the cost to sponsor a child. Where is the money going that isn’t going to the children? I would hate to think it is for a glossier overedited over advertising or staff bloat to make sponsors feel better.” — Nancy White

Although these two questions may seem to be asking the same thing, they’re actually not. Dwight is asking, “What does my child get each month for $38?” (i.e., how are our programs run and what do we deliver?). Nancy is asking, “Where is the money going that isn’t going to the children?” (i.e., how do we spend your money?). They’re both important questions.

I’m not an expert on how other sponsorship programs are run, but what I do know is that some organizations don’t have Christ at the center of what they do. And some allow children to have multiple sponsors.

So two things that Compassion delivers is the Gospel and a one-to-one relationship with your child.

Some child sponsorship programs just focus on one or two areas of a child’s development, rather than being all-encompassing, and others organizations administer their programs on behalf of the community a child lives in, rather than focusing directly on a specific child.

Compassion delivers holistic child development that is child focused. These two posts help show what that means.

• What does holistic child development look like?
• What does my sponsored child learn at the child development center?

Additionally, some organizations receive government funding. We do not. We’re 100 percent sponsor and donor supported.

And finally, some programs are more localized and less global than our program is. We’re a global holistic child development ministry and we use a one-on-one sponsorship model that encourages you and your child to share your faith with each other. We’re Christ centered, child focused, church based and committed to integrity.

Some programs may have similarities to ours, but none are exactly the same. That’s what we deliver.

As for how we spend your money, no more than 20 percent pays for administration and fundraising. That’s our commitment to you. And for the past several years, we’ve been significantly below that 20 percent, usually two to four percentage points below.

In fiscal year 2009, approximately $31 of your $38 monthly payment paid for development center grants, program services and child advocacy (i.e., educating the Body of Christ about the biblical mandate to care for children and the poor), while a nickel shy of $7 was used for administration ($3.23) and fundraising ($3.72).

Because of how we manage your money we have received eight consecutive four-star ratings from Charity Navigator, an independent charity evaluator. Only 1 percent of charities rated by Charity Navigator have been recognized in this way.

So, what does the $31 buy your sponsored child?

The money categorized as development center grants is delivered directly to our church partners to cover the costs of implementing our sponsorship program. The basic elements of these activities include:

• regular Christian training
• learning opportunities (e.g., funding school attendance and/or regular participation in extracurricular educational activities)
• health treatment and training (e.g., regular physical exams, dental care, vaccinations, referral for advance medical care, instruction in physical and dental hygiene, exercise, nutrition and preventive health care)
• socio-emotional development (e.g., learning basic social skills, teamwork, art, drama, dance, etc.)
• materials and supplies including hygiene supplies (e.g., soap, toothbrushes, toothpaste), center supplies (e.g., paper, writing utensils, games, toys), fees or costs associated with field trips, camps, drama, art and dance activities, and snacks, food and supplemental nutrition each child may need
• individualized care and attention (e.g., school progress reports, center attendance records, health records, home visits by social workers and adult supervision while at the development center)

Program services include activities undertaken by our staff to select, train, equip and oversee the church partners implementing our program, as well as programmatic research and evaluation. They also cover the costs of staff who direct and maintain the daily activities at the child development center.

More personally, this is where the money comes from for letter translation, postage, taking photos of your child, and updating you on your child’s well-being.

You can consider program services as the funding source for maintaining our program’s integrity and all the things that connect you and your child.

That about sums it up. I hope this explanation is useful to you. If you want additional information about our financial stewardship you can visit compassion.com and charitynavigator.com, as well as call us at (800) 336-7676.

My Account l Sponsor a Child l Help Babies and Moms l Crisis Updates

When it comes to achievement, repeats are impressive. Three-peats are utterly amazing. Any ideas on what we call an eight-peat?

In the world of charities, this translates to “exceptional.” For eight consecutive years, we have been awarded Charity Navigator’s highest rating – four stars – for responsible financial management.

But who is Charity Navigator?

Evaluating more than 5,400 charities each year, Charity Navigator is the largest independent evaluator of charities in the nation. Ken Berger, president and CEO of Charity Navigator, describes our achievement:

“Only 1 percent of the charities we rate have received at least eight consecutive four-star evaluations, indicating that Compassion International consistently executes its mission in a fiscally responsible way and outperforms most other charities in America. This ‘exceptional’ designation from Charity Navigator differentiates Compassion International from its peers and demonstrates to the public it is worthy of their trust.”

This coveted designation is particularly important today as charitable giving is down across the nation. In these tough economic times, everyone is looking for ways to stretch the dollar, and that includes charitable dollars.

For Compassion, though, fiscal responsibility is only part of the charitable equation.

As you know, we work tirelessly to bring hope to one needy child, where once only hopelessness existed. We do this more than 1 million times each day, but in unique and personal ways.

This is our calling and our passion: to release children from poverty in Jesus’ name. We do this while staying committed to our cornerstone practice of financial stewardship.

My Account l Sponsor a Child l Help Babies and Moms l Crisis Updates

Charity Navigator announced it September 1.

We wrote a press release about it on September 25.

And I JUST got the point . . . because I got a little perspective.

Compassion received its seventh consecutive four-star rating from Charity Navigator.

I had heard that, and I knew we were one of only 45 charities to have done that. But what I found interesting is:

• 387 charities have received two consecutive 4-star ratings
• 199 did the triple
• 168 are rollin’ on four
• 59 pulled down five
• and 67 earned six in a row

That’s cool y’all. But repeatin’ the feat seven times is severely suh-WEET!

Check out what kind of company we keep.

My Account l Sponsor a Child l Help Babies and Moms l Crisis Updates