Joining God - Sponsor A Child - Compassion International

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Joining God2019 ANNUAL REPORT

Releasingchildren frompoverty in

A Letter from CompassionInternational’s President and CEO,Santiago “Jimmy” MelladoThis year, we’ve leaned more heavily than ever beforeinto a phrase that changes the way we think, act andwork — “joining God.” This has transformed how weoperate, how we interact with our global Compassionfamily and how we champion other organizations,partnerships and the people around us.“Releasing children from poverty iswhy we exist, but Compassion didn’trelease a single child in 2019. God did.”These words, “joining God in releasing children frompoverty in Jesus’ name,” are written on our executiveconference room wall as a daily reminder that thiswork belongs to him. We are merely co-laborers,partnering with so many all over the world that haveaccepted his invitation.God is working through individuals, families, churches,nonprofit organizations, for-profit companies and somany others to accomplish his work. Compassion hasbeen called to a strategic role in that story — we getthe privilege of empowering others to embrace theircalling and to make a life-changing difference forchildren living in poverty.Releasing children from poverty is why we exist, butCompassion didn’t release a single child in 2019. Goddid. It was God working through the frontline church.It was God working through the committed supporter.It was God working through the strategic partnership.It was God working through our team members.We had the incredible honor of connecting peopletogether and now we get to tell those stories.In the pages that follow, I’m excited to share storieswith you from 2019, of dreams that are coming to life,talents that are being used for good, and passions andpurposes that are being amplified. Let’s celebrate thattogether.2COMPASSI ON I NTER NATI ONAL2 01 9 A NNUA L R E P O RT3

PA R TN ER S HI PSOur GlobalFamily2018S U RVIVA LA N D E A R LYCHI L D H O O DPatriciaBurkino FasoPartnership Facilitator2019S PI R I TUA LDEV ELOPM EN TIn 2019, we’ve been inspired by passionate peopleall over the world. Every person’s role looks a littledifferent, but it’s what we are being invited intothat connects us together. Here’s a snapshot ofwhat our global family looks like.MicrosoftUnited StatesCorporate PartnerVeranikaIndonesiaProject CoordinatorMaryKenyaCompassion ChildSiennaAustraliaSponsorEDU CATI ON42,100,8987,565CH ILDR E NF R ON T L I N E C HUR C HE S104,6763,636VOLUNTE E R ST E A M ME M BE R S1,625,71817,147S UPPORTE R SS UP P OR T I N G C HUR C HE S2514PRO GRAM CO U N T RIE SF UN D RA I S I N G COUN T R I E SVOLU N TEER SC H IL DS P O N S O R S H IPBethelhemEthiopiaCivil EngineerF R ON TL I N ECHU R CHESPastor DarioPeruPastorVOCATI ON A LTR A I N I N GCR I TI CA LN EEDS5

We are on a mission.Releasing children frompoverty in Jesus’ name.Our holistic child development model isunique because of three distinctives:WE WORK TRANSNATI ONA LLY.2 million children were reached through 7,5652018church partners all over the world in 2019.C HRIST-C E NTE RE D Because Jesus is our core,everything we do for children is meant to reflectGod’s heart.C HURC H-B ASE D Our programs are run exclusivelyby thousands of local churches as catalysts forchange in 25 countries around the world.C HILD-FOC USE D Holistic child developmentprovides physical, social, economic and spiritualcare to each child in a personal, individualized, and2019relational way.Naw-EhmuekAge 10, Thailand62 01 9 A NNUA L R E P O RT7

The Story ofGlobal PovertyOver the last 30 years, therehas been tremendous progressmade in poverty alleviation.36%Program Impact20%We know that our approach is impactful.Independent research shows thatCompassion’s child development model9%9%0%1990% OF PEOPLE LIVING IN EXTREME POVERTY (UNDER 1.90/DAY)12017Our RoleCompassion’s strategicrole in the story of globalpoverty is holistic childdevelopment in partnershipwith the local church.2Children enrolled in our program are:327-40%M OR E LI KELY TO CO MPL ETESECON DARY S CHO O LM OR E LI KELY TO L EA D IN THEIRCOM M U N I T Y A ND CHURCHES20%B U T W E’ R E N OT D O N E Y E T.Over 440 million children are stillliving in extreme poverty today.results in long-term transformative effects.We do this by serving frontline churches,H I GH ER I N CO ME AS A N A D ULTsupporting churches, strategic partners,individual supporters and team members —connecting them together and celebratingM OR E LI KELY TO HAV E EL ECTRICITYI N WELL-CO NSTRUCTED HO MEStransformed lives.138Gates Foundation Goalkeepers 2018; 2 World Bank 2015Wydick, B. (2019) Shrewd Samaritan9

I M PAC T STORI E S : CO M PASS I O N ALUM NIAs a civil engineer, Bethelhem designsfoundations and buildings for a majorinternational beverage brand.She’sBuilding forTomorrowBethelhem was born to create, to imagine and todream of better solutions for tomorrow.“God is everything to me. He made me who I amtoday,” says Bethelhem. “He cares more about me thanBethelhem enrolled in theCompassion program at age seven.For the first time, she was given theopportunity to attend school.She works as a civil engineer at a large bottling“Compassion is where I gained thevision to become an engineer.”I care about myself.”and manufacturing plant in Addis Ababa,Ethiopia, and is pursuing her master’s degreein geotechnical engineering.“It’s exciting to see something that I designedBethelhem reflects on her sponsor’s consistent lettersbeing built,” says Bethelhem. “Most engineersBethelhem grew up in poverty in rural Ethiopia. Heras a stable voice of encouragement while she was indon’t have the opportunity to both designmother was just 16 years old when she gave birth.school. They always seemed to arrive when she mostsomething and see it built after only four yearsEarly on, there was no money to attend school, buy aneeded support.of working, so that’s exciting.”God surrounded Bethelhem with an encouragingHer passion is to use her profession for goodAt the age of 7, she registered in a Compassionnetwork throughout her journey — her mom, herand build schools where dreams can beprogram and started attending school. Theteachers, her sponsor, her church and Compassionfulfilled and other children can be encouragedCompassion staff noticed her giftings and naturalvolunteers and staff.to discover where God is leading them.through a program called, “My Plan for Tomorrow,”And now, she is serving the Lord in a profession she“I have a vision to build schools for young,which is a workbook that helps youth identify theirloves with unlimited potential. For Bethelhem, this ispoor people, to give them a chance to be whatdreams, set goals for their future and determine stepswhat “released from poverty in Jesus’ name” looks like.they want to be,” says Bethelhem.bed, sheets, soap and often even food.01talent in math and spoke into her life. They walked herto reach those goals.10COMPASSI ON I NTER NATI ONAL2 01 9 A NNUA L R E P O RT11

I M PAC T STORI E S : FRO NTLI NE CH URC H E SWhen he visited for the first time three years ago,there was no local church and no place to create astable environment where children can experienceGod’s love in tangible ways.“What struck me the most was seeing several childrenConstructingHope in PeruPpractically living in abandonment. My heart ached forthose little ones I couldn’t help but to pour out mytears, each one of their faces was in my mind.”He knew he had to do something. And for a few years,he worked tirelessly toward his goal of caring forthese children.“I was sure God had put that desire in my heart andhe was going to provide. I didn’t know what to do, buthe wanted us to serve those children. So, I continuedworking without ceasing.”Compassion came alongside Pastor Darío andastor Darío felt a calling to build a church to love,provided funds to construct a building. They alsoserve and protect the children in a communityconnected Pastor Darío with Samual, a Compassionoutside of Chiclayo, Peru. But building a church in aalumnus and architecture student, to provide thecommunity without resources is no small feat.building design. “I was very excited to serve God withmy talent and profession. I was thrilled to designa special place for children in that community.”Today, the community and church members celebratePastor Darío’s fulfilled dream. They operate the onlyChristian church in the community, caring for morethan 150 children every week.Elizabeth, a project volunteer, greets children everyday. “I have lived in this community for more than 70years, and it is the first time I have seen the childrenrunning around with smiles. I welcome them with ahappy face and I know them all by name. This is myway of showing them they are loved by God, theToday, the only Christian churchin the community loves andprotects more than 150 children.Pastor Dario took a step of faithwhen he encountered hopelessnessin a small community in Peru.Lorem ipsum dolor sit amet,consectetur adipiscing elit, sed doeiusmod tempor incididunt ut laboreet dolore magna aliqua.church and us.” Pastor Darío is using his gifts andtalents to make a difference.He took a step of faith and God faithfully equippedhis dreams to offer hope to that community.“I live to see this community blossom far behindare the times when our children lived withouthope. We are preparing a bright future for them.”12COMPASSI ON I NTER NATI ONAL“I live to see this community blossom far behindare the times when our children lived without hope.We are preparing a bright future for them.”2 01 9 A NNUA L R E P O RT0213

I M PAC T STORI E S : STRATEGI C PARTNE RSMicrosoft and Compassion created an app thatis estimated to save around 300,000 hours ofpaperwork a year, allowing staff members to spendthat time with children instead of doing paperwork.Microsoft:Leadingby ExampleThis year, Microsoft traveled toGuatemala with Compassion to testthe app and experience Compassion’sprograms firsthand. Watch a recap of thetrip at annualreport.compassion.com.Compassion and Microsoft have long partnered towardthe effectiveness of technology,” says Justin Spelhaug,impact of the app in the field. Meeting the children anda common goal, but we’ve recently deepend ourGlobal Lead for Microsoft Tech for Social Impact.families face-to-face refueled their passion and drive forrelationship by creating innovative tools together.equipping nonprofits with technological solutions.Microsoft provided the infrastructure to build an appThrough partnership, Microsoft is showing us that theirthat helps frontline churches gather information vital toFurther, Microsoft is working with Compassion on aexpertise — no matter how different it is from childrunning the ministry with efficiency and integrity.project initiated in partnership with Accenture to createdevelopment — can impact a child’s life.a platform that will leverage artificial intelligence tosecurely and intelligently connect people who have aMicrosoft’s heart, expressed through MicrosoftPhilanthropies, is to partner with nonprofits all overthe world, offer their technology to help transformorganizations and accelerate impact.“Nonprofits, especially those on the front linesThis tool is estimated to save around 300,000hours of paperwork a year, exponentiallymultiplying the amount of time that Compassionemployees and volunteers have to do what theylove: empower children to leave poverty behind.of impoverished children and communities, needwill enable people to more efficiently provide aid andempower Compassion to radically change the face ofpoverty reduction.Seeing exponentially more children released frompoverty is possible with healthy partnerships, innovativeorganizations and passionate people by our side. If youaffordable access to the most modern technology.14need, to those who can fulfill that need. This platformWe’re solving this problem by creating purpose-builtThis year, Microsoft joined Compassion inwant to make an impact in a child’s life, lean into yourtechnology that both lowers the cost and increasesHuehuetenango, Guatemala to see firsthand theexpertise and skillset and watch how God can use it.COMPASSI ON I NTER NATI ONAL2 01 9 A NNUA L R E P O RT0315

“God looks at me withlove and care.”— Ratthaphrum, Age 10, ThailandMarisolAge 9, encouyppahosit makes megnimocsgnihtdoogeesNow, I ure.”in my fut— Salama, Age 14, Kenya16

01Targeting thegreatest needCompassion’s programs are most effective in areas ofgreatest need. While poverty is declining in many countriesat a global level, we’re becoming more sophisticated inour approach to target communities where deep pocketsof poverty remain. We are implementing an internationallyNOWTO S E E MO R E C H IL DR EN R EAC H EDThe Futurerecognized and country-specific measurement tool calledthe Poverty Probability Index (PPI). The PPI provides anestimate of the likelihood of poverty for households andwill help us select the neediest children within our reach forCompassion’s program.Investing inmonitoring andevaluationNEXTWe’re using six measures that are based on the highestquality research available, with plans to develop additionalmeasures in 2020. Those measures are based on growingresearch that shows that reaching the neediest, startinginterventions early and providing care and support throughmentorship — while also enabling receiving higher levelsof education — give children and youth a better chance tobreak the cycle of poverty.we’re always working to improve. As we look towards the future, our desire is simple:0102To see morechildren reached.To improve how weserve children, churches,supporters, volunteers,strategic partners, andour workforce.02Harnessing thepower of dataIn 2019, we increased our data science capabilities.This will allow us to create personalized solutions forsupporters and make data-driven decisions across allareas of Compassion, from product, to service design,TO I MP R OVE HOW WE SE RVEWe’ve learned a lot over the last 67 years working in holistic child development, butto marketing and program development.Listeningand insightsIn order to serve our global family, we must first listen.This year, Compassion continued to build a robustlistening and learning foundation that will allow us todeeply understand those we serve. The global insightsteam designed, participated in and analyzed over 535hours of in-person interviews.1819

You are uniquely gifted.You are perfectly placed.Together, let’s join God inreleasing children frompoverty in Jesus’ name.annualreport.compassion.com

Consolidated Statement of Activities20192018TOTALTOTAL 709,648,000 Total supporting activities168,419,000158,521,000Total Net assets, beginning of year242,032,000213,525,000Net assets, end of year268,706,000242,032,000Fiscal years ended June 30*Revenue, gains, and other supportContributionsContributions from All Funding PartnersGifts in-kindInterest, dividends, and other incomeNet unrealized gain/loss on foreign exchange contractsChanges in value of split-interest agreementsTotal revenue, gains and other supportExpensesProgram servicesChild development programTotal program servicesSupporting activitiesManagement & GeneralFundraisingChange in net assetsGLOBAL EXEC U T I VE T EAMBOAR D OF DI R EC TORSSantiago “Jimmy” MelladoPresident and ChiefExecutive OfficerJudy GolzChairBlake CanterburyGeneral DirectorRonald MathieuVice ChairMichael JeffsGeneral DirectorFrancisco BatresGeneral DirectorChristopher KnepperGeneral DirectorRalph BordeGeneral DirectorKenneth MorganGeneral DirectorJean-Francois BussyGeneral DirectorKaren WesolowskiGeneral DirectorKristin Colber-BakerGeneral DirectorSantiago “Jimmy” MelladoPresident/CEOPaul AckermanSenior Vice President andChief Financial Officer*Amounts were rounded to the thousands. To see Compassion’s 2019 and 2018 audited financial statementsand Form 990, please go to compassion.com/about/financial or call (800) 336-7676.Tom BeckSenior Vice President ofHuman ResourcesKen CalwellSenior Vice President andChief Marketing OfficerCOMPASSI ON I NTER NATI ONALMark HanlonSenior Vice Presidentof Global StrategicRelationshipsRobert HawkinsGeneral Counsel and SeniorVice President of theGeneral Counsel OfficeSidney MuisyoSenior Vice President ofGlobal ProgramElizabeth UriyoSenior Vice President of theGlobal Leadership Office

CO M PASS I ON I N TE R N ATI ON A L12290 Voyager ParkwayColorado Springs, CO 80921(800) 336-7676compassion.comChrist-centered Child-focused Church-based

3 Wydick, B. (2019) Shrewd Samaritan Over the last 30 years, there has been tremendous progress made in poverty alleviation. % OF PEOPLE LIVING IN EXTREME POVERTY (UNDER 1.90/DAY)1 The Story of Global Poverty Children enrolled in our program are: 3 Compassion’s strategic role in the story of global poverty is holistic child development in .

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