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Compassion International

CharityWatch report issued
July 2023

Top-Rated Charity
A
CharityWatch Grade
Our independent grade based
on a number of factors.
 
82%
Program Percentage
Amount spent on programs
relative to overhead.
 
$14
Cost to Raise $100
Amount spent to raise
$100 of contributions.

Contact Information

Compassion International
12290 Voyager Parkway
Colorado Springs, CO 80921-3668

Other Names

None

Tax Status

501(c)3

Stated Mission

A child-development ministry dedicated to releasing children from poverty in Jesus' name. Empowers local churches to provide individual and holistic care to children in poverty so they are free to learn, grow, play and dream.

View similar charities
Data based on Fiscal Year Ended 06/30/2022

Program Percentage: 82%

The percentage of Compassion International's cash budget it spends on programs relative to overhead (fundraising, management, and general expenses).

$1,100,000,000

Calculated Total Expenses

(rounded)

 

Cost to Raise $100: $14

How many dollars Compassion International spends on fundraising to raise each $100 of contributions.

$858,000,000

Calculated Total Contributions

(rounded)

Government Funding

0% to 24%

Percentage of cash revenue
coming from government sources

 

Financial Documents

Entity Document Type Tax ID
Compassion International & Affiliates Audited Consolidated Financial Statements multiple
Entity: Compassion International & Affiliates
Document Type: Audited Consolidated Financial Statements
Tax ID: multiple

Governance & Transparency

CharityWatch evaluates certain criteria related to a charity's Governance and Transparency. Donors may want to consider a charity's willingness to be open and transparent with CharityWatch to be a good litmus test for determining its commitment to public accountability.
This charity is Top-Rated
What does it mean to be Top-Rated?
 
Compassion International
meets governance benchmarks.
 
Compassion International
meets transparency benchmarks.
Transparency
Provides Financial Information
Audit Accessibility
Governance: Policies
Reports regularly & consistently monitoring & enforcing compliance with a written Conflict of Interest Policy
Reports required, annual disclosure by officers, directors, and key staff of interests that could give rise to conflicts
Reports having a written Whistleblower Policy
Reports having a written Document Retention and Destruction Policy
Governance: Financials
Reports providing copy of tax form to all board members prior to filing it with IRS N/A*
Reports that financial statements were audited by an independent accountant
*Religious organizations are not required to file with the IRS
Governance: Board of Directors
Reports at least 5 voting board members
51% or more of voting board members reported as independent
Reports documenting minutes of board and board committee meetings
Privacy Policy
Privacy Policy Opt-In Policy  

Unable to Provide Salaries

See Analysts' Notes for explanation.

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.

Compassion International is not required to file an annual return (Form 990) with the IRS or state regulators because it is a religious organization. CharityWatch is therefore unable to provide salary information for this group.

CharityWatch's letter grade rating of Compassion International is based on the Compassion International and Affiliates audited consolidated financial statements for the fiscal year ended June 30, 2022.

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, 2022. "All material inter-affiliate accounts and transactions have been eliminated in the consolidated financial statements," according to audit Note 1.

According to the Compassion International and Affiliates consolidated audit of June 30, 2022 (Note 1 re: 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, 2022 and 2021 include:

  • Compassion (Darunatorn) Foundation (Thailand)
  • Compassion de Mexico Asociacion Civil
  • Compassion do Brasil
  • Compassion International del Peru
  • Compassion International Ghana
  • Compassion International, Incorporated (Kenya)
  • Compassion International Lanka (Sri Lanka)
  • Compassion International Tanzania
  • Compassion International Togo
  • Compassion International (Uganda)
  • Fundacion Compassion International Ecuador
  • Ong Compassion International en Bolivia 
  • Yayasan Bantuan Kasih Indonesia
  • Yayasan Kasih Karunia Indonesia Timur (East Indonesia)"


CharityWatch's rating of Compassion International does not include the financial activities of the "11 unaffiliated international organizations" that, along with Compassion International, are part of the "Global Partner Alliance." "Compassion does not exercise the level of control to consolidate unaffiliated international organizations and therefore their operations are not reflected in the accompanying consolidated financial statements," according to audit Note 1.

The "11 unaffiliated international organizations" in the Global Partner Alliance (GPA) with Compassion include organizations located in South Korea, Australia, the United Kingdom, Canada, the Netherlands, Germany, Switzerland, Italy, France, and New Zealand, as well as "Compassion Norden (Nordic countries)," according to audit Note 9 (GPA Contributions), which also reports that Compassion received $280,876,000 in total contributions from those 11 GPA organizations in fiscal 2022.

[Note: The above-noted $280,876,000 in Global Partner Alliance contributions Compassion received in fiscal 2022 are excluded from CharityWatch's calculation of Compassion International's Cost to Raise $100 ratio.]

According to the Compassion International and Affiliates consolidated audit of June 30, 2022 (Note 1 re: Child Development Programs):

"Last fiscal year, the significant impact of the COVID-19 pandemic on the world required Compassion and our global partners to adapt in how we reach new and existing donors. Compassion and our local church partners also needed to change how we minister to children during this crisis. Throughout fiscal year 2021, in compliance with local government regulations, Compassion temporarily halted large group activities, which included much of our regular child program activities. We focused instead on meeting emergency needs in response to COVID-19... In fiscal year 2022 we began adapting to a post-pandemic environment with a renewed focus on the contextualization needed to support the people and communities we work in."

According to the Compassion International and Affiliates consolidated audit of June 30, 2022 (Note 2 re: 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 geography in accordance with local laws and regulations or common market practices. ... Accrued severance for years ended June 30, 2022 and 2021, was $3.2 million and $4.2 million, respectively... Compassion's severance expense was $4.6 million and $8.4 million for the years ended June 30, 2022 and 2021, respectively..."