Charity Review

  • Issued: January 2013
  • Expires: January 2015

ChildFund International

Accredited Charity

Meets Standards

804-756-2700

2821 Emerywood Parkway
Richmond, VA 23294

http://www.childfund.org
Accredited Charity

804-756-2700

2821 Emerywood Parkway
Richmond, VA 23294

http://www.childfund.org
Accredited Charity

Accredited Charity

Meets Standards

Standards For Charity Accountability

Governance

  1. Board Oversight

    Oversight of Operations and Staff: Standard 1

    Description
    Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

    The organization meets this standard.

  2. Board Size

    Number of Board Members: Standard 2

    Description
    Soliciting organizations shall have a board of directors with a minimum of five voting members.

    The organization meets this standard.

  3. Board Meetings

    Frequency and Attendance of Board Meetings: Standard 3

    Description
    An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

    The organization meets this standard.

  4. Board Compensation

    Compensated Board Members: Standard 4

    Description
    Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

    The organization meets this standard.

  5. Conflict of Interest

    Conflict of Interest: Standard 5

    Description
    No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.

    The organization meets this standard.

Measuring Effectiveness

  1. Effectiveness Policy

    Board Policy on Effectiveness: Standard 6

    Description
    Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

    The organization meets this standard.

  2. Effectiveness Report

    Board Approval of Written Report on Effectiveness: Standard 7

    Description
    Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

    The organization meets this standard.

Finances

  1. Program Expenses

    Program Service Expense Ratio: Standard 8

    Description
    Spend at least 65% of its total expenses on program activities.

    The organization meets this standard.

  2. Fund Raising Expenses

    Fund Raising Expense Ratio: Standard 9

    Description
    Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

    The organization meets this standard.

  3. Accumulating Funds

    Ending Net Assets: Standard 10

    Description
    Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.

    The organization meets this standard.

  4. Audit Report

    Financial Statements: Standard 11

    Description
    Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.

    The organization meets this standard.

  5. Detailed Expense Breakdown

    Detailed Functional Breakdown of Expenses: Standard 12

    Description
    Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

    The organization meets this standard.

  6. Accurate Expense Reporting

    Accuracy of Expenses in Financial Statements: Standard 13

    Description
    Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

    The organization meets this standard.

  7. Budget Plan

    Budget: Standard 14

    Description
    Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

    The organization meets this standard.

Fund Raising & Info

  1. Truthful Materials

    Misleading Appeals: Standard 15

    Description
    Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.

    The organization meets this standard.

  2. Annual Report

    Annual Report: Standard 16

    Description
    Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

    The organization meets this standard.

  3. Website Disclosures

    Web Site Disclosures: Standard 17

    Description
    Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

    The organization meets this standard.

  4. Donor Privacy

    Privacy for Written Appeals & Internet Privacy: Standard 18

    Description
    Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

    The organization meets this standard.

  5. Cause Marketing Disclosures

    Cause Related Marketing: Standard 19

    Description
    Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).

    The organization meets this standard.

  6. Complaints

    Complaints: Standard 20

    Description
    Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fund raising practices, privacy policy violations and/or other issues.

    The organization meets this standard.

Conclusion

ChildFund International meets the 20 Standards for Charity Accountability.

Child Sponsorship

ChildFund sponsors can choose to sponsor a boy or girl from any of the 31 countries where the organization works. The $28 per month sponsorship contribution provides the sponsored child with what he or she needs in the way of educational and nutritional assistance, clean water, medical care and opportunities to develop and learn. ChildFund retains 20% of the monthly sponsorship for administrative handling.

Monthly contributions are combined with those of other sponsors whose children are enrolled in the same area. This enables ChildFund to serve all enrolled girls and boys, even if a sponsor has not been found for all of the children.

ChildFund states that sponsorship funds provide assistance to the child, and services often benefit siblings and community members as well. In addition to the monthly sponsorship donation, ChildFund alerts donors to their sponsored child's birthday. ChildFund explains that special monetary gift disbursements are distributed on a monthly basis and birthday and/or holiday gifts are sent to the sponsored children two months prior to the occasion. Also, gifts for children are distributed according to the donor's wishes and for the purpose designated by the donor.

According to ChildFund, when a child is enrolled for sponsorship, the project (local office) fills out an enrollment form and a family card, kept at the project level, containing basic and statistical information such as: age, health status, literacy, access to safe water, and services rendered. The enrollment form itself details the particular child's likes, hobbies, habits and personality.

ChildFund reports that the family cards are updated at least once a year to determine the community's status, identify needs, determine if goals are being met, and monitor progress from year to year. This data is collected by project staff, community workers, and parent beneficiaries, with the support of ChildFund headquarters staff.

ChildFund reports that the enrollment materials are updated every 18 months for children under the age of five and every 24 months for older children. This update includes a new photo and an updated narrative about the child. On an annual basis, a Child Progress Report is sent to each sponsor, which includes a photo of the child along with information about the child as well as his or her family and community. All sponsors also receive a donor magazine, Childworld, and can sign up for an electronic newsletter, both of which contain information about various ChildFund affiliated program work.

Sponsors can correspond with their sponsored child through letters, and receive annual updates about the child. ChildFund staff can also arrange visits to meet with sponsored children, conducted primarily through their study tour program.

ChildFund uses monitoring and evaluation tools such as The Annual Impact Monitoring and Evaluation System (AIMES) to measure the impact of the donor’s assistance of each child, his or her family and the community as a whole.

 

Complaints

Number of complaints processed by the BBB in the last 36 months: 4

 

Child Sponsorship

The organization addressed the complaint issues brought to its attention:                                                                                             2

The organization did not address the complaint issues brought to its attention: 0

Solicitation

The organization addressed the complaint issues brought to its attention: 2

The organization did not address the complaint issues brought to its attention: 0

 

 

 

 

 

 

 

 

 

 

Purpose

  • Year, State Incorporated

    1938, Virginia

  • Affiliates

    Barnfonden (Sweden)
    Bornefonden (Denmark)
    ChildFund Australia
    ChildFund Deutschland
    ChildFund Ireland
    ChildFund Japan
    ChildFund Korea
    ChildFund New Zealand
    Christian Children's Fund of Canada
    Taiwan Fund for Children and Families
    Un Enfant Par la Main

  • Stated Purpose

    "to help deprived, excluded and vulnerable children have the capacity to improve their lives and the opportunity to become young adults, parents and leaders who bring lasting and positive change in their communities; to promote societies whose individuals and institutions participate in valuing, protecting and advancing the worth and rights of children."

Programs

ChildFund focuses on child development through the establishment of sustainable programs in communities. The organization address deprivation, vulnerability and exclusion. It reports that its work centers around early childhood development. ChildFund also address nutrition, health, education, and livelihood skills as well as emergencies when they affect children in its program areas. The organization provides child sponsorship with the goal of developing confidence and leadership skills. Other programs seek to improve access to clean water or improved educational infrastructure.

Education 70,343,244
Health 51,066,278
Nutrition 15,478,001
Early childhood development 22,476,886
Micro-enterprise 16,851,103
Emergencies 10,951,020
Total Program Expenses: $187,166,532

Governance & Staff

  • Chief Executive

    Anne Lynam Goddard, President and CEO

  • Compensation*

    $317,908

  • Chair of the Board

    Maureen Denlea-Massey

  • Chair's Profession / Business Affiliation

    Retired

  • Board Size

    21

  • Paid Staff Size

    1183

*2010 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.

Fund Raising

Method(s) Used:

Direct mail, telemarketing, print advertisements, television, radio, grant proposals, Internet appeals, door to door appeals, and planned giving.
Fund raising costs were 10% of related contributions. (Related contributions, which totaled $233,592,182, are donations received as a result of fund raising activities.)

Tax Status

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.

Financial

The following information is based on ChildFund's conswolidated audited financial statements for the fiscal year ended June 30, 2011.

Source of Funds
Gifts from sponsors 165,741,558
Contributions 37,702,558
Grants and contracts 30,148,066
Other revenue 4,054,907
Total Income $237,647,089
  • Programs: 83%
  • Fundraising: 10%
  • Administrative: 7%
Total Income $237,647,089
Program expenses 187,166,532
Fundraising expenses $23,250,389
Administrative expenses $16,318,955
Other expenses $0
Total expenses: $226,735,876
Income in Excess of Expenses 10,911,213
Beginning Net Assets 61,022,981
Other Changes In Net Assets 8,930,335
Ending Net Assets 80,864,529
Total Liabilities 20,537,051
Total Assets 101,401,580

Note 1: In the above financial section, "other changes in net assets" represents $8,930,335 for unrealized gains on investments ($3,881,773), change in accrued benefit liability other than net periodic costs ($2,917,317), change in value of of trusts ($1,131,548), and realized gain on investments ($999,697). Note 2: For the year ended June 30, 2011 ChildFund reported in-kind income of $10,594,609 for public service announcements ($10,233,256), clothing/bedding ($286,602), and legal services ($74,751).

An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

This report is not to be used for fund raising or promotional purposes.