CharityWatch REPORT
Issued December 2018

CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.

Any time an Analysts' Note refers to a charity's Audited Financial Statements or IRS tax form, CharityWatch encourages interested donors to obtain a copy of the referenced documents so that they may view the information in context. Please contact the charity directly to request a copy of any referenced document. Charity tax forms and audits may also be obtained from a number of online databases. For a list of sources, please visit our LINKS page.

CharityWatch's rating of ChildFund International includes the financial activities of the ChildFund international office, national offices, and fundraising offices, which are consolidated in the ChildFund International audited financial statements for the fiscal year ended June 30, 2017, according to audit Note 2(b).

According to the ChildFund fiscal 2017 consolidated audit (Note 1, Organization):

"Most of the [child] sponsorships...are supported by U.S. donors; the remainder are supported by in-country fundraising offices and international donors who sponsor children through autonomous organizations in Australia, Canada, Denmark, France, Germany, Ireland, Japan, Korea, New Zealand, Sweden, and Taiwan. ChildFund is a member of ChildFund Alliance, a global network of 11 child development organizations."

[Note: The financial activities of the "autonomous organizations" noted above are not included in CharityWatch's rating of ChildFund International. "ChildFund does not control these organizations, their related assets, liabilities, net assets, revenues and expenses are not reflected in the accompanying [audited] consolidated financial statements," according to Note 11(a) of the ChildFund fiscal 2017 consolidated audit.]

According to the ChildFund fiscal 2017 consolidated audit (Note 2(b), Principles of Consolidation):

"ChildFund established the India Society (the Society) in 1984. The Society is registered...and exists under the laws of India. In December 2015, the Society's governing body took action which gave ChildFund majority voting power of the governing body and therefore, ChildFund began consolidating [in the audited financial statements] the Society..."

According to the ChildFund fiscal 2017 consolidated audit (Note 14, Related Party Transactions):

"In April 2002, ChildFund Alliance was established for charitable purposes to promote the well-being of children and their families. The Board of Directors of ChildFund Alliance consists of a significant percentage of ChildFund Board and staff; however, ChildFund does not have an economic or controlling interest in ChildFund Alliance; accordingly, ChildFund Alliance is not consolidated in ChildFund's [audited] consolidated financial statements..."
ChildFund International received contributions of gifts-in-kind on which it placed a total value of approximately $44.0 million in fiscal 2017, according to its audited Consolidated Statement of Activities for the fiscal year-ended June 30, 2017. Included in the $44.0 million is approximately $12.3 million in donated TOM shoes and approximately $30.4 million in donated public service announcements (PSAs), according to Note 2(h) of the ChildFund fiscal 2017 consolidated audit.

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found by clicking on "About CharityWatch" from the navigation bar and then clicking on "Criteria & Methodology".]

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