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 Compassion International also includes the financial activities of its international affiliates, which are consolidated in the Compassion International audited financial statements for the fiscal year ended June 30, 2018.

According to the Compassion International consolidated audit of June 30, 2018 (Note 1, Affiliates):

"Compassion's international affiliates are consolidated based on the level of control exercised by Compassion International, Inc. and the presence of an economic interest. Compassion's consolidated international affiliates at June 30, 2018 and 2017 include:

* Compassion (Darunatorn) Foundation (Thailand)
* Compassion de Mexico Asociacion Civil
* Compassion do Brasil
* Compassion International de Peru
* Compassion International (East Asia) Limited
* Compassion International en Bolivia
* Compassion International Ghana
* Compassion International Lanka (Sri Lanka)
* Compassion International (Singapore) Limited
* Compassion International Togo
* Corporacion Compassion International Filial Ecuador
* Fundacion Compassion International Ecuador
* Yayasan Bantuan Kasih (Indonesia)
* Yayasan Kasih Karunia Indonesia Timur (East Indonesia)"

"During fiscal year 2017, Compassion made the difficult decision to exit operations in India after 48 years in [the] country, due to funding restrictions placed on Compassion by the Indian government. The final day of operations in India was March 15, 2017..."

"Compassion has certain other international affiliates which are immaterial and consolidated based on the level of control exercised and the presence of economic interest."

Whenever practicable, CharityWatch obtains consolidated audited financial statements that include all of the entities of a charity. Such an audit eliminates transactions among related entities, and allows us to determine how efficiently an organization is operating on the whole.

For more information on this topic, please see "Criteria & Methodology," which can be found under the "About Us" navigation header, and read the section entitled "Treatment of Related Organizations."
According to the Compassion International consolidated audit of June 30, 2018 (Note 9, Global Partner Alliance):

For the year ended June 30, 2018, Compassion International reports receiving $223,212,000 in contributions from the following "unaffiliated international organizations": (1) Compassion Korea (South Korea); (2) Compassion Australia; (3) Compassion Canada; (4) Compassion United Kingdom; (5) Compassion Netherlands; (6) Compassion Deutschland (Germany); (7) Compassion Italia Onlus (Italy); (8) Tear Fund New Zealand; (9) Compassion Schweiz (Switzerland); (10) Service d'Entraide et Liaison (France); (11) Compassion Norden (Nordic Countries).
According to the Compassion International consolidated audit of June 30, 2018 (Note 2, Severance Benefits):

"Compassion provides certain severance benefits to eligible former or inactive employees during the period subsequent to employment but prior to retirement through plans individualized for each national office in accordance with local laws and regulations or common market practices. ... Accrued severance for years ended June 30, 2018 and 2017, was $2.05 million and $1.53 million, respectively... Compassion's severance expense was $2.75 million and $2.47 million for the years ended June 30, 2018 and 2017, respectively..."

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