Charity Review

  • Issued: February 2013
  • Expires: March 2015

Children, Incorporated

Accredited Charity

Meets Standards


4205 Dover Road
Richmond, VA 23221
Accredited Charity


4205 Dover Road
Richmond, VA 23221
Accredited Charity

Accredited Charity

Meets Standards

Standards For Charity Accountability


  1. Board Oversight

    Oversight of Operations and Staff: Standard 1

    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

    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

    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

    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

    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

    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

    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.


  1. Program Expenses

    Program Service Expense Ratio: Standard 8

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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

    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.


Children, Incorporated meets the 20 Standards for Charity Accountability.

Child Sponsorship

According to CI, a child enrolls at a CI project (an orphanage, school, or welfare center receiving funds from CI) and a sponsor for that child is then sought. Sponsors pledge $28 per month to projects helping children with food, clothes, health care, and school needs. The projects, located in 24 countries (including the United States), are managed by project coordinators. These coordinators enroll children in the project, maintain case histories to send to sponsors, monitor all monies received and disbursed, and administer the program.

CI's project coordinators collect, verify, and maintain information on sponsored children using Project Information Forms. These forms help describe to the sponsor the project where the child is located and the community in which the child resides. Projects are requested to review these forms annually and to submit any updated information to CI headquarters.

Additionally, CI projects maintain Child Information Forms, which are filled out by someone familiar with the circumstances and personality of the child. These forms contain statistical information about the child such as: full name, date of birth, photograph, grade in school, assessment of child's health, personal characteristics, personal history, and names of siblings enrolled with CI. According to CI, new pictures and progress reports are requested every two years.

CI reports that monthly subsidies collected are used to provide material goods and services for sponsored children and their families and are not pooled for community development projects. However, CI reports that when disasters occur, extra funds are requested to help with the repairs and reconstruction of CI affiliated projects and/or homes of the children and their families.

In addition to the monthly sponsorship donation, CI states that gifts for birthdays and/or holidays are voluntary and that such amounts, less a 10% processing fee, are considered to be Additional Gifts. Additional Gifts are sent to the project for a particular child with specific purpose indicated by the sponsor, in accordance with categories established by Children Incorporated. However, CI does request that any gifts be sent two months in advance to ensure timely distribution.


  • Year, State Incorporated

    1964, Virginia

  • Stated Purpose

    "to assist children of all races and creeds, administering to their physical, emotional, and educational needs."


CI reports that it has 317 projects in 23 countries around the world. These projects are run through already established schools, orphanages and community centers and a volunteer coordinator at each location identifies those children most in need of assistance. Children are then matched with a sponsor. Child sponsorship allows a donor to support an individual child by means of monthly subsidy payments. The current monthly rate is $28. Sponsorship pays for basic necessities that a child might not otherwise receive. It typically helps cover such expenses as school supplies and fees, food, clothing and access to medical care.

Child care program 4,369,613
Total Program Expenses: $4,369,613

Governance & Staff

  • Chief Executive

    Marianne Vermeer, Chief Executive Officer

  • Compensation*

  • Chair of the Board

    DanaD. McDaniel

  • Chair's Profession / Business Affiliation


  • Board Size


  • Paid Staff Size


*2010 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances. Marian Cummins was the CEO from July 1, 2010 - December 31, 2010 and recieved compensation of $101,925. The Alliance does not have salary information for the current CEO at this time.

Fund Raising

Method(s) Used:

Direct mail, telemarketing, special events, grant proposals, Internet appeals, and planned giving.
Fund raising costs were 10% of related contributions. (Related contributions, which totaled $6,234,871, 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.


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

Source of Funds
Other contributions 2,920,368
Sponsorship contributions 2,636,221
Bequests 664,561
Investment income 127,819
Commodity gifts 13,721
Total Income $6,362,690
  • Programs: 78%
  • Fundraising: 12%
  • Administrative: 10%
Total Income $6,362,690
Program expenses 4,369,613
Fundraising expenses $650,711
Administrative expenses $567,973
Other expenses $0
Total expenses: $5,588,297
Income in Excess of Expenses 774,393
Beginning Net Assets 3,447,443
Ending Net Assets 4,221,836
Total Liabilities 438,363
Total Assets 4,660,199

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.