Compassion's Commitment to Financial Stewardship

Wise financial stewardship is critical to effective development practices. When you give to Compassion Australia, you can be sure that your donation is used wisely and strategically, and always for the benefit of the children we serve.

18 Nov, 2021

Compassion Australia is part of Compassion International, a global network of more than 40 countries. For over 70 years Compassion has served vulnerable children living in poverty with a community-first approach.

Together with millions of our neighbours—supporters, local church partners, families and staff—around the world, we are a Christian child development charity that seeks to put love into action and release children from poverty in Jesus’ name. This is only possible because of your generous support.

How your money is used

For every dollar you donate to Compassion, around 80 cents is directed to program development and delivery to benefit the children we serve. This benchmark has been in place since Compassion Australia opened in 1977.

This means approximately 80 per cent of all donations to Compassion are used to carry out our holistic child development model. This model seeks to address each child’s unique physical, social, emotional, cognitive and spiritual needs. Your donation empowers over 8,500 local churches around the world to serve their communities through the following programs:

- Mums and Babies - Child Sponsorship - Critical Needs

The other 20 per cent is used for administration and fundraising costs in Australia. Using a small portion of donations for fundraising allows Compassion to provide even greater support to the children in our programs. Every dollar spent on fundraising and administration is done so strategically to ensure a greater return that allows us to support even more children and families.

What your sponsored child receives

Compassion’s holistic Child Sponsorship Program provides more than basic relief like food, clean water and education. We surround each child with support from a local church and love from a caring sponsor so he or she can realise their God-given potential.

Through a child development centre run by a local church, children in our program are given the opportunity to hear the gospel, pursue education, learn new skills, receive healthcare and good nutrition, develop healthy relationships and play in safe places.

You can also choose to give a birthday, Christmas or family gift where 100 per cent of the donation is received by your sponsored child or their family. With the support of our local church partners, children and caregivers are empowered to purchase goods that are appropriate and meet their specific needs.

Accountability and transparency

Compassion Australia is committed to earning and keeping your trust and confidence through transparency, accountability and Godly stewardship. Integrity is valued by God and is therefore a value that drives the whole organisation in Australia and across the world. We want to see more children released from poverty in Jesus' name and we believe good financial prudence will allow us to be "trusted with much" in the future (Luke 16:10).

We are a registered charity, accredited by the CMA Standards Council and a member of the Fundraising Institute of Australia and Missions Interlink. Our financial reports are independently audited annually by Bentleys Brisbane (Audit) Pty Ltd.

Compassion Australia is registered on the Australian Charities and Not-for-Profits Commission (ACNC) charity register and has the green tick of approval.

In addition, we have a global internal audit function that routinely monitors financial and operational integrity at child development centres and field offices across the globe. Through these internal audits of project partners, we endeavour to ensure that all programs are meeting minimum standards of financial accountability and programmatic integrity.

We also have a voluntary, independent Board of Directors who work to ensure all activities of our organisation are in accordance with our Constitution and to whom the executive leadership team of Compassion Australia are accountable. Compassion Australia is a company limited by guarantee, with a Constitution that defines the organisation’s purpose, objectives and powers, and how income is to be applied. It is the role of the Board of Directors to ensure we operate in accordance with the principles and commitments stated in our Constitution.

Is this model sustainable?

Compassion Australia funds approximately 85 per cent of activities through recurring monthly support. By using this recurring model of fundraising, Compassion’s program funding is sustainable. Compassion Australia receives no government funding—we are 100 per cent funded through supporter donations. This means we are not reliant on applying for government grants or funding each year but also means every dollar you give truly makes a difference.

Your generosity truly makes an impact

You play a very special role in this mission to see children released from poverty in Jesus’ name. Your prayers, letters and generosity help children around the world feel loved and valued. Thank you for giving children in poverty a glimpse of God’s unstoppable love for them.

For more detailed information on our revenue, including our annual reports, please visit our Financials page.

Words by Abigail Hogarth