the president’s annual report - compassion...

Annual ReportThe President’s

C O M P A S S I O N C A N A D A

2 0 1 62 0 1 5

O P E R A T I O N S & C U LT U R E

0 4 Executive summary

0 7 Board of directors

0 8 A five-verse prayer devotional

1 0 Building a better Compassion

F E A T U R E

1 2 Celebrating Compassion graduates

2 0 1 5 – 2 0 1 6 I N R E V I E W

Child Survival Program

1 6 From poverty to prosperity

1 9 Global snapshot

Child Sponsorship Program

2 0 Doing for others what God has done for him

2 3 Global snapshot

Leadership Development Program

2 4 Bringing hope to the abused

2 7 Global snapshot

Complementary Interventions

2 8 Making soap, bringing hope

3 1 Global snapshot

T H E G L O B A L I M P A C T

3 2 Beneficiaries around the world

3 3 Where does our support come from?

F I N A N C I A L S

3 4 Financial integrity

3 5 2015–2016 by the numbers

3 6 A financial snapshot

A P P E N D I X

3 8 Historical sponsorship growth

3 8 Sponsor retention rate

3 9 Key results indicators

3 9 Cancellation rate

3 9 Correspondence rate

4 1 Financial statements

ContentsP R E S I D E N T & C E O Barry Slauenwhite

V P O F M A R K E T I N G & S T R AT E G Y Jim Bartholomew

V P O F B U S I N E S S S E R V I C E S & C F O Tim DeWeerd

V P O F E N G A G E M E N T Deb Wilkins

M A N A G I N G E D I T O R Amber Van Schooneveld

C O N T R I B U T I N G E D I T O R Aveleen Schinkel

D E S I G N E R Eric Siemens

C O N T R I B U T O R S Edwin Estioko, John Gatete Bayingana,

Cesiah Magaña, Juana Ordoñez Martinez, Isi Salazar,

Jehojakim Sangare, Aveleen Schinkel, Jonathan L. Suwaratana,

Doreen Umutesi, Amber Van Schooneveld and Cecilia Yépez

P H O T O G R A P H Y Ben Adams, John Gatete Bayingana,

Edwin Estioko, Cesiah Magaña, Helen Manson,

Juana Ordoñez Martinez, Isi Salazar, Jehojakim Sangare,

Jonathan L. Suwaratana, Ryan Johnson, Doreen Umutesi,

Alexander Whittle and Cecilia Yépez

C O M P A S S I O N C A N A D A H E A D O F F I C E

985 Adelaide St. S, London, ON N6E 4A3

C O N TA C T U S

www.compassion.ca | [email protected]

1.800.563.5437 | 519.668.0224

M E M B E R

Canadian Council of Christian Charities

CCRDA

Evangelical Fellowship of Canada

Viva Network

Compassion is a registered trademark of Compassion International. Content copyright

Compassion Canada and respective holders. All rights reserved. Material within this

publication may not be reproduced without the expressed written consent of

Compassion Canada.

All scripture quotations, unless otherwise indicated, are taken from the Holy Bible, New

International Version®, NIV®. Copyright © 1973, 1978, 1984, 2011 by Biblica, Inc. TM Used

by permission of Zondervan. All rights reserved worldwide. www.zondervan.com.

2 0 1 5 – 2 0 1 6 Y E A R I N R E V I E W

Looking back over the past fiscal year, I

can’t help but feel two things: thankfulness

for the great successes we’re seeing in

the lives of our beneficiaries and hope

for things that are still to come. This year,

we’ve heard so many stories of how

God is working to transform lives and

communities, and in the following pages

we’ll share many of these stories with you.

It has been a busy year, and here are just a

few of the highlights.

New staff and opportunities God continues to bless us with talented

and dedicated staff. This year, we were

able to assemble a full team of ministry

representatives across every region of

the country, allowing us to build deeper

relationships with churches. We also

hired a full-time representative for our

Ambassador program, who will lead our

musician and speaker program.

We continued to make Compassion

Canada an even better place to work by

implementing action plans based on our Best

Christian Workplace Institute survey. This

has yielded good results with our employees

based on survey feedback. We also worked

to enhance our employee chapels and

prayer times so that our staff can continue to

flourish as followers of Christ.

Board updateThere have also been a few changes to

our Board of Directors. After 16 years

of service, including nine as vice-chair,

Gerry Mills is retiring from the board. We’re

thankful for all the value he’s brought to the

Board of Directors over the past decade

and a half!

We also have two new faces on our board:

Jennifer Adkins and Shannon Williams.

Adkins was an ombudsperson for the

National Energy Board and an instructor

at Trinity Western University, before going

back to school full time to pursue a PhD

in Sociology. She has specialized and

consulted in Race and Ethnic Relations for

over 25 years in the public, private and

non-profit sectors, and brings her passion

for justice and equity to the board.

Williams is the Director of Children’s

Ministry at New Life Community Baptist

Church in Duncan, British Columbia. Her

love for children and her desire to see

them develop holistically attracted her to

Compassion’s child development ministry.

Her insight as a Children’s Ministry Director

coupled with her Bachelor’s of Education

from Trinity Western University brings

valuable perspective to the board.

God’s grace in continued growth Although many sponsorship organizations

are struggling with growth, Compassion

Canada has been blessed to experience

modest growth in the past fiscal year.

Support for the Child Sponsorship Program

increased by 3.9 per cent. Support of the

Child Survival Program decreased 21.8

per cent. That’s because in 2015 there was

a spike in Child Survival Program support

because we moved some of our prior

reserves into income. Adjusting to exclude

this amount, donations actually increased

12.5 per cent over 2015.

Funds raised for our Complementary

Interventions initiatives increased by

9.9 per cent. The Gifts of Compassion

gift guide—one of our key fundraising

campaigns for these initiatives—raised

more than $730,000 to meet the needs of

children around the world.

As we transition toward more broad

vocational and educational opportunities

for youth, support for the Leadership

Development Program intentionally

decreased 35.8 per cent.

Monthly sponsorships increased to

108,144 as of June 30, 2016. Our sponsor

retention rate—the number of people

choosing to take on another child when

theirs departs—is at a healthy 72.4 per

cent. Canadian supporters are engaged

in building a relationship with their

Compassion children, with 76.47 per cent

having written in the last year.

The accepted financial ratio for non-profits

is that 80 per cent of expenses go to

program and 20 per cent to operations.

As usual, we exceeded this ratio. Program

and ministry activities accounted for 85.3

per cent of our expenses, with fundraising

at 8.8 per cent and administrative costs at

5.9 per cent.

Building a better Compassion We spent considerable time and

energy this past year improving our

technical systems. This has been a huge

undertaking for all of our 26 field countries

and nearly 7,000 implementing church

partners around the world. We’re still

in the midst of this process, and will be

dedicating much of this next fiscal year

to continue to implement these new

systems—which you’ll read more about in

the following pages.

We ask for your prayer support for wisdom

as we make these system improvements.

We continue to give all the praise to God for

choosing to use our ministry for His purposes.

Now, please enjoy reading the following

pages. We hope you are inspired as you

experience some of the amazing ways in

which God is using this ministry to change

lives for Him!

Barry Slauenwhite

President /CEO

E X E C U T I V E S U M M A R Y

Reflections on God’s faithfulness over fiscal year 2016

Y E A R I N R E V I E W2 0 1 5 – 2 0 1 6

4 5W W W . C O M P A S S I O N . C A | 2 0 1 5 – 2 0 1 6 P R E S I D E N T ’ S A N N U A L R E P O R T2 0 1 5 – 2 0 1 6 P R E S I D E N T ’ S A N N U A L R E P O R T | C O M P A S S I O N C A N A D A

C H A I R :

Ian LawsonLethbridge, Alberta

Lead Pastor, Evangelical Free

Church of Lethbridge

V I C E - C H A I R :

Mark FletcherHalifax, Nova Scotia

Vice President of Construction, Teng Inc.

Jennifer AdkinsLangley, British Columbia

Race and Ethnic Relations Specialist

PhD Student, University of British

Columbia

David BurtonDartmouth, Nova Scotia

Public Service Executive

Government of Canada

(Canadian Heritage)

Dr. Marie GeschwandtnerOttawa, Ontario

Chiropractor, Hunt Club

Chiropractic Clinic

Len Hummel Scarborough, Ontario

Credit Administrator, Bank of Nova Scotia

Andrew JohnsonCalgary, Alberta

Clinical Professor, University of Calgary

Hank UnrauVineland, Ontario

Regional Bank Manager (retired), CIBC

Shannon WilliamsDuncan, British Columbia

Director of Children’s Ministry,

New Life Community Baptist Church

Business meetingsOctober 29-30, 2015

January 28-29, 2016

May 26-27, 2016

Committees

Nominating and governance:

September 29, 2015

January 20, 2016

May 5, 2016

Audit and finance:

September 10, 2015

May 12, 2016

Board of directors

Y E A R I N R E V I E W2 0 1 5 – 2 0 1 6

7W W W . C O M P A S S I O N . C A | 2 0 1 5 – 2 0 1 6 P R E S I D E N T ’ S A N N U A L R E P O R T

P R A Y E R D E V O T I O N A L Y E A R I N R E V I E W2 0 1 5 – 2 0 1 6

1 John 4:19 “We love because he first loved us.”Our compassion starts with God—He is the source of all love

and compassion. When we try to love others disconnected from

God, our finite love will eventually dry up. But we are able to love

because He first fills us with His love.

Pray: Dear Lord, thank you for your love that is

undeserved and immeasurable. Please fill me with your

Holy Spirit so that I can know and experience your love

today. Allow your love to overflow from me to all those

you bring into my life.

Ephesians 2:10 “For we are God’s handiwork, created in Christ Jesus to do good works, which God prepared in advance for us to do.”God crafted each one of us uniquely to serve Him—so that we

could do good for Him. What’s more, He already has prepared

these opportunities for us!

Pray: Dear Lord, thank you for creating me just as I am

so that I can serve you. With all the distractions in life,

please help me stay focused on the things that truly

matter and the things you have prepared in advance for

me to do.

Hebrews 13:16 “And do not forget to do good and to share with others, for with such sacrifices God is pleased.”So many times in the Bible, we are exhorted to be kind to the

poor and to share what we have. In Proverbs 14:31, it says that we

honour God when we are kind to the needy, and in Hebrews 13:16,

it says God is pleased with these sacrifices.

Pray: Dear Lord, thank you that I can please you and

bring you honour by being kind to those in need.

Please draw me ever closer to your heart as I seek to

help others.

Galatians 6:9 “Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up.”Sometimes as we help others, we can become weary and

discouraged—especially when we don’t see results. But Paul

encourages us not to give up. God is in charge of the harvest; we

simply need to obey what He has called us to.

Pray: Dear Lord, sometimes I feel weary or jaded with

helping others. I wonder if what I do really matters or

makes a difference. Please reignite my passion to serve

you and refresh my soul so that I don’t become weary.

John 15:5 “I am the vine; you are the branches. If you remain in me and I in you, you will bear much fruit; apart from me you can do nothing.”Sometimes, we get so busy doing things for God that we forget to

spend time with God. But our lives and our ministry will only truly be

fruitful when we are rooted in Christ. Let’s approach God and give

ourselves to Him once more.

Pray: Dear Lord, I confess that sometimes I become

busy doing things for you and neglect my relationship

with you. Please be the centre of my life. Allow my life

to grow out of you so that I can be a branch that bears

much fruit.

A five-verse prayer devotionalB Y A M B E R V A N S C H O O N E V E L D

As a supporter of Compassion, we know you have a heart to reach

out with God’s love to those in need. Every now and then, it’s good

to retune our compassion to God’s heart.

Please use this short devotional to guide you closer to the

Lord as you seek to serve Him. Read through the verses and take

some time to meditate and pray through them.


Y E A R I N R E V I E W2 0 1 5 – 2 0 1 6

As you’ve heard, we’ve been busy as can be updating our systems so

that we can build a better Compassion—one that is more efficient as we

seek to release children from poverty in Jesus’ name! Here are some

highlights of the changes that have happened and that are still to come.

Letters are now scanned and sent digitally, dramatically reducing the time it takes to receive your letter!

Building a better Compassion

S T R A T E G I C I N I T I A T I V E S

New systems implemented in

26 field countries

Nearly 7,000 churches updated

with the new system

Allowing more than 1.8 million children

to connect with loving sponsors

We’re still ironing out our letter process.

Thank you for your patience. It’s going to

be great!

Letters

More child information coming soon!

“This new system reduces process time—freeing us up for more contact time with the kids!” Caleb Munyoki, Compassion Kenya

“This additional information will give supporters a deeper look into the realities

of their Compassion child’s life.”Sheena Morrison, Compassion Canada

Child writes

letter

Progress reports

on your child’s

development

Everyone who

lives in your child’s

household

What your

Compassion child’s

community is like

Any interventions

that have helped

your child

What resources and activities

are available at your child’s

Compassion centre

Letter gets

scanned

Letter sent digitally

to Canada

Letter read by

sponsor

Old letter process: 2 to 3 monthsNew letter process: 4 to 6 weeks

Thanks to our new system, you will have access to more information about your Compassion child’s context at MyCompassion.ca, such as:

Please continue to pray for Compassion as

we make these changes in order to serve

you and all the precious children around

the world better!

11W W W . C O M P A S S I O N . C A | 2 0 1 5 – 2 0 1 6 P R E S I D E N T ’ S A N N U A L R E P O R T

2 0 1 5 – 2 0 1 6 Y E A R I N R E V I E W

Celebrating Compassion

graduates

As sponsors, we all wonder what difference our support is

making. The answer is: a big difference! Sponsorship gives

children the chance to pave a path out of the cycle of poverty—

and to offer that chance to others as well. Here’s what just a few

Compassion graduates are up to today.

The communicator Viviana’s parents were farmers in the

highlands of Ecuador. But prolonged

drought made it impossible to provide

for their children. During those times,

Compassion filled the gap for Viviana.

“Compassion was the buttress of

our family, providing hope and a way

out,” she says.

At her Compassion centre, Viviana

discovered that she had a talent and

passion for communicating God’s truths.

She was often the master of ceremonies

at church and Compassion centre events.

Today, Viviana is a TV producer

and evangelist and has produced more

than 50 programs! She’s currently

producing a program called Taripana

that will encourage locals to participate

in initiatives to improve the social,

educational and economic development

of her province.

The teacher Mark graduated cum laude from one of

the leading universities in the Philippines

with a degree in education. He could have

chosen to teach at any number of schools,

but he’s settled down in the remote village

of Colambo.

When he arrived, the school was just

two makeshift bamboo rooms, and there

was only him and one other new teacher.

He could find a more prestigious and

better paying job elsewhere, but Mark has

stayed put.

“I have found my calling,” he says,

“and that is to educate these children and

see them grow, and if given the chance, to

lead them to the Lord.”

Thanks in part to Mark’s leadership,

two new school buildings have been

constructed and the school has

established a partnership with a local

organization that conducts a regular

feeding program for the students.

“To me, this is my way of giving

back for the kindness I received from

Compassion and my sponsor,” Mark says.

The firefighter Jonathan lives in a small community in

Honduras where most people work as

farmers and only earn a couple of dollars a

day. But when he was a boy, Jonathan was

registered in Compassion’s program. At the

Compassion centre, he had the chance to

be part of a firefighter training program for

kids. It set the course for his future.

“As a child, I was living in the midst

of a hopeless environment until I enrolled

in the children’s firefighter program at the

Compassion centre,” he says. “I trusted

the Lord and never gave up my dream of

becoming a firefighter. Today, I proudly

wear the firefighter’s uniform and serve my

community.”

Becoming a firefighter in his

community is very competitive, but

Jonathan says Compassion gave him

the edge he needed: “I met Jesus while I

was in the program. I also learned about

respect for myself and for others. Also,

my sponsors’ letters encouraged me to

continue. Those qualities enabled me to be

selected as a permanent firefighter.”

Now Jonathan’s mission is to keep

his community safe, and he’s giving back

by training new junior firefighters at the

Compassion centre.

L O C A T I O N :G L O B A L

F E A T U R E : C O M P A S S I O N G R A D S


Y E A R I N R E V I E W2 0 1 5 – 2 0 1 6

“Mentorship is biblical and volunteering to mentor a child is one way of nurturing responsible citizens with a heart for God.”

The accountant Gai is from such a remote village in

Thailand that children had to be sent

to another village to go to school when

she was growing up. Although it went

against the cultural norms to educate

girls, Compassion paid Gai’s school fees

and she was able to receive an education

in a neighbouring village. She went on

to complete her university degree in

accounting and got a good job with the

Thai government as an accountant.

But her village needed help. A

Compassion centre opened in her village,

allowing children to have opportunities to

thrive without having to leave their parents.

But in this remote village, the Compassion

centre couldn’t find qualified staff to handle

the centre’s accounting.

Gai decided to leave her well-paying

job in the city to move home and become

the centre’s accountant. She says, “I can

never repay or thank the people who

sponsored me and helped me enough. But

I can sacrifice so that the next generation

can have the chance that I got.”

The program directorBeing part of Compassion’s program

convinced Gaby in Honduras to pursue

her dream of going to university—despite

coming from a poor and broken family.

“My parents’ separation made me

grow up restless on the inside when

I was a child,” says Gaby. “However,

church pastors, Compassion tutors and

my sponsors taught me to love myself, to

experience healing from the inside out and

to go beyond my circumstances.”

Now Gaby is pursuing a degree in

business administration, but she’s also

giving back. After having served at a

Compassion centre as a tutor for two years,

she’s now the director! Gaby is providing

the same encouragement and love to

children in difficult circumstances that she

herself received as a child.

The industrial engineer Josué from Mexico had to start working

as a bricklayer with his father when he

was just 12, carrying heavy buckets and

mixing cement under the unbearable

sun. But through Compassion, he got

a chance for a different future.

Josué graduated from high school

and is now working in the office of an

oil company while he studies industrial

engineering at the university.

Josué is also giving back by working as

the program coordinator at his Compassion

centre. Although he’s a busy student

and employee, he continues to work at

the centre to ensure that more children

have the chance to hear about God!

The mentor When Bienvenue in Rwanda graduated

from university, he wanted to do something

to give back to his community. He

realized that having a mentor made a

huge difference in his path to success. So

Bienvenue, along with other Compassion

graduates in Rwanda, started a program

to train mentors for children enrolled in

Compassion.

“Mentorship is biblical and

volunteering to mentor a child is one way

of nurturing responsible citizens with a

heart for God,” says Bienvenue.

The alumni are training parents to

mentor children and youth, and each

parent mentors four children. The mentors

encourage the children and help them to

make good decisions about their futures.

The alumni’s goal is for every child in

Compassion Rwanda to have a mentor!

The youth director Juniper was known as the naughtiest

little boy at his Compassion centre in the

Philippines. If there was trouble, his tutors

knew he would usually be at the heart of it.

But Juniper’s tutors continued to

faithfully guide and care for him. And today

Juniper is the youth director of his church!

When asked how the change happened,

his centre director, Violy says, “We didn’t

do anything special. We just implemented

the sponsorship program, shared the

gospel and encouraged the children to

go to church. But we were very patient. I

always believe prayer had a lot to do with

it, too.”

Now Juniper is leading a group of 40

to 60 youth, guiding them to choose God’s

path in their lives.

about 35%more likely to have

white-collar employment

as adults

27–40%more likely to finish

secondary education

According to independent research,

Compassion kids are:

L O C A T I O N :G L O B A L

F E A T U R E : C O M P A S S I O N G R A D S


From poverty to prosperity

B Y J O H N G A T E T E B A Y I N G A N A ,

C O M P A S S I O N R W A N D A ,

A N D A M B E R V A N S C H O O N E V E L D ,


The hills of northern Rwanda, where the village of Bukane

sits, feel like paradise. The hills are carpeted in green, and

numerous waterfalls cascade down rocky cliffs. Through

the mist, the double peaks of Volcans National Park stand

as grand sentinels over the village. Foreigners flock to the

mountains to watch gorillas in one of the few places they

still have refuge, while native children splash and play in the

many watering holes where they draw their sustenance.

But in these hills, despite tourism and the verdant

surroundings, poverty reigns. Working as subsistence

farmers, most people earn the equivalent of a quarter a day.

It’s no way to live.

A family in northern

Rwanda has gone from

extreme privation to

abundance thanks to

God’s work through the

Child Survival Program.

O V E R V I E W :

2 0 1 5 – 2 0 1 6 Y E A R I N R E V I E WL O C A T I O N :R W A N D A

C H I L D S U R V I V A L P R O G R A M


“We used to have a single meal per day and sometimes we

would go to sleep on empty stomachs—not because we were

fasting, but because we had nothing to eat,” says Mukeshimana, a

mom from Bukane.

Mukeshimana’s family was one of the many in Bukane who

could barely scratch out a living. Mukeshimana didn’t have a job,

and her husband worked at a restaurant and earned about 75 cents

a day. Their house rent took more than half of this. So each month,

they would move from place to place, unable to pay their rent.

One day was particularly bad. Mukeshimana had no food,

and she had recently found out she was pregnant. She had lost

all hope that her situation would change. But that very day, social

workers and church leaders from the Child Survival Program came

to her neighbourhood to register new mothers. And, at five-months

pregnant, Mukeshimana was enrolled in the program.

Up until that point, Mukeshimana hadn’t been able to afford

prenatal care—many of the women in her village can’t. In fact,

eleven times as many children die before their fifth birthday in

Rwanda compared to Canada. Twenty-eight times more women

die as a result of pregnancy-related causes. So the Child Survival

Program took Mukeshimana to the doctor where she found out

that she was in a high-risk pregnancy with the likelihood of a

miscarriage.

But with the regular checkups she received, Mukeshimana

gave birth to a healthy girl named Devine. Not only did

Mukeshimana receive the health care she needed, but she was

also equipped to turn her family’s life around. She learned how to

care for her child and how to keep her free from disease with good

nutrition and good hygiene. Through the program, she learned small

business skills and how to earn an income through tailoring.

Mukeshimana also learned about the importance of saving,

and joined the program’s savings group. Caregivers in the program

regularly contribute a small amount to the group’s savings, and each

take turns receiving a distribution of the funds. Mukeshimana started

contributing to the group’s savings daily, and after three months, it

was her turn to take a contribution.

With the money, she bought a small plot of land to farm and a

bicycle for her husband to use to transport people. With the bike,

her husband started earning twice what he used to earn working

in the restaurant. Mukeshimana started her own business selling

charcoal, vegetables and other food products at her home. She also

received a sewing machine from the program and began to earn

extra money tailoring.

All these changes added up to make an enormous difference

in the family’s life. Devine is now five years old and she has a

younger sister who is two. The family no longer moves from house

to house at the end of each month. In fact, through diligent daily

saving, this family was able to build their own three-room home.

“Very few people have a house like this one in this community,”

says Mukeshimana. “We are considered rich people now because

of Compassion, while before we were among the poorest of the

poor in this area.”

The family no longer goes hungry, but can afford to eat

breakfast, lunch and dinner—a huge luxury in their neighbourhood.

Mukeshimana is able to pay for Devine’s schooling and she can take

her younger daughter to a private nursery. The family has still more

plans for their future. They plan to continue to save and eventually

buy a larger plot of land to raise animals on and use modern farming

techniques.

But the physical differences in their lives are only the

beginning.

“Spiritually, we have strong relationships with God now.

My husband used to take alcohol, but he accepted Jesus as his

personal Saviour,” says Mukeshimana. “Every time I remember

where God found me, I just bow down and praise Him for His

wonderful work upon me and my family.”

Praise God that so many families around the world, like

Mukeshimana’s, are finding a chance for a new and hopeful future in

Him thanks to the Child Survival Program!

“We are considered rich people now because of Compassion, while before we were among the poorest of the poor in this area.”

CHILD SURVIVAL PROGR AM: In their earliest years, children are

at their most vulnerable to disease, malnutrition and neglect. The

Child Survival Program rescues moms and babies from desperate

poverty, providing food for malnourished infants, teaching moms

how to care for their children and preparing moms and children

to take their first steps toward a life of promise and purpose—all

through the local church.

Global snapshot

791churches offer Compassion’s

Child Survival program.

3,944caregivers accepted Christ

as their Saviour in the

last 12 months.

29,399moms (or other caregivers)

and babies are cared for

through this program.

Y E A R I N R E V I E WL O C A T I O N :R W A N D A

C H I L D S U R V I V A L P R O G R A M

2 0 1 5 – 2 0 1 6


Doing for others what God has done for him

B Y E D W I N E S T I O K O ,

C O M P A S S I O N P H I L I P P I N E S

At only 24 years old, Jeric Ryan Belargo of the Philippines

has helped over 1,000 Filipino families learn job skills and

gain employment. And he’s just getting started.

Jeric is a project development officer in the

department of social welfare and development in the

province of Negros Occidental. His job is to implement

sustainable livelihood programs for the poor—taking them

from survival to self-sufficiency. Since 2013, Jeric has

received a number of grants from the local government,

totalling over 8 million Philippine Pesos (CAD $224,843).

“My role is to facilitate, oversee and delegate tasks,

and manage people, resources, conflicts and projects,”

says Jeric. He does all this while managing more than

20 government employees, many of whom are twice

his age. It’s a tough job, one with many demands and

responsibilities.

This Compassion graduate

is serving the government

of the Philippines to

empower impoverished

communities. His goal is

to do for others what God

and Compassion have

done for him.

O V E R V I E W :

2 0 1 5 – 2 0 1 6 Y E A R I N R E V I E WL O C A T I O N :P H I L I P P I N E S

C H I L D S P O N S O R S H I P P R O G R A M


“It’s a lot of work, but I am motivated to help the poor,” he

says. “I want to replicate what Compassion has done for me.”

Jeric was born in the small village of Barangay Rizal,

Philippines. Most people in his hometown earn less than $1 a day

doing odd jobs. His dad is a carpenter, and his mom used to cook

snacks at home to sell around the neighbourhood. There were

seven children in the family, so they were chosen as one of the

poorest in the area, and Jeric was registered in Compassion when

he was six years old.

Through Compassion, Jeric was able to focus on his studies

and even graduate from a leading university in the Philippines.

After he graduated, he worked as an operations manager for a

popular food chain in the Philippines. However, he didn’t feel right

working for a corporation, so he resigned from his position. Instead,

he began volunteering as a youth worker for his Compassion

centre. He helped the youth learn how to be citizens who try to

improve their communities.

After a year of volunteering at his former Compassion

centre, Jeric was hired by the department of social welfare and

development. Jeric was the youngest among 12 candidates, but his

boss saw the attitude of service he had learned from Compassion

and knew he was the one for the job.

“I can only thank Compassion and my sponsor for all the

successes that I now have,” Jeric says.

Jeric has a long-term vision for his life. In five years, he wants

to be a civic representative. And after 10 years, he hopes to run for

public office to continue to help his community develop.

Today, while Jeric’s father continues to work in construction,

Jeric has asked his mother to stop working. The young alumnus now

rents a house for their family, has sent his older brother to vocational

school and is paying for his younger sister’s college education.

“I told my mother, ‘It’s time for me to take care of you,’” says

Jeric. “I may not be rich, but I can say I have been released from

economic poverty since I can face the world and help other

people.”

Today, this promising young man is doing for others what

Compassion and the Lord did in his life—even when it means

receiving emergency calls and text messages at midnight or

travelling to remote tribal villages.

“This is what Compassion instilled in me—to desire to see

people being released from poverty,” says Jeric. “Could you allow

yourself not to help others after you yourself have been released

from poverty? I couldn’t.”

CHILD SPONSORSHIP PROGR AM: The Child Sponsorship

Program connects sponsors and the local church to end poverty

in the life of a child. The program gives opportunities to go to

school to those who can’t, provides regular health check-ups and

supplemental food when needed, and teaches children life skills

like proper hygiene and how to form healthy friendships. Most

importantly, children get to hear the gospel as volunteers from their

community teach them about God’s love for them in Jesus Christ.

Global snapshot

1.8 milMore than 1.8 million children have

had the opportunity to hear the

gospel and be discipled in Christ by

caring members of their community!

6,952local churches in 26 countries

partner with Compassion to

bring practical and spiritual

care to children.

2.61%

2015 2016

increase in the number

of children sponsored

by Canadians, totaling

107,679 in 2016—which

means more kids have

the chance to develop

healthy minds, bodies

and relationships, and

discover God’s love for

them in Jesus Christ.

1,841,794children were registered with Compassion’s Child

Sponsorship Program as of June 30, 2016. Of these,

1,637,497 had already been sponsored.

Y E A R I N R E V I E WL O C A T I O N :P H I L I P P I N E S

C H I L D S P O N S O R S H I P P R O G R A M

2 0 1 5 – 2 0 1 6

“This is what Compassion instilled in me—to desire to see people being released from poverty,”

“I can only thank Compassion and my sponsor for all the successes that I now have.”


Bringing hope to the abused

B Y I S I S A L A Z A R , C O M P A S S I O N G U A T E M A L A

Standing in the doorway to her office, Leticia Ochoa

Contreras greets you with confidence and a beaming smile.

This successful woman is a lawyer, defending the cases

of abused women and children in Guatemala. Seeing her

today, it is hard to believe that she was once quiet and

withdrawn—a girl with no dreams and little hope of an

education.

Leticia’s family worked in agriculture on the outskirts of

Guatemala City. Her parents thought school wasn’t relevant

to real life. Instead, they urged their children to start working

at an early age. Their family isn’t an anomaly—one quarter

of children in Guatemala between the ages of 5 and 14 are

engaged in child labour.

“Getting an academic degree was not important to my

family,” says Lety, as her friends and family call her. Lety’s

father only completed middle school, and her mother only

reached the fourth grade. “But despite our limitations and

mindset, my parents decided that I should at least try to go

to elementary school.”

This graduate of

Compassion’s Leadership

Development Program was

barely even able to attend

school as a girl. But now she

is working as a prosecutor

to defend abused women

and children.

O V E R V I E W :

2 0 1 5 – 2 0 1 6 Y E A R I N R E V I E WL O C A T I O N :G U A T E M A L A

L E A D E R S H I P D E V E L O P M E N T P R O G R A M


Lety was seven when she started going to school. She felt

excluded from the rest of the children because she couldn’t afford

school supplies or nice clothing, so instead of going to recess, Lety

would stay in the classroom to study. She had no friends.

Lety’s mom started to worry. So when she heard that a church

near their home had started a new program for children, she

thought it could be the perfect opportunity for Lety to make friends.

Lety still remembers the first few times she went to the

Compassion centre.

“I realized that we all had the same background,” she says. “I

did not feel inferior to anyone, and it was the first time I was able to

make friends.”

Soon, Lety got a sponsor.

“After a couple of months of going to the centre, I heard my

tutor yell, ‘Lety, you’ve got mail!’ Thinking that someone took the

time to write me a letter made me feel like the most important girl in

the whole world,” says Lety.

She was sponsored by a woman named Denise, and over the

years they got to know each other through letters. Lety would read

the letters over and over, and her sense of purpose began to grow.

“My sponsor and her family always wrote how much they

loved me and that they were praying for me. I felt a great sense of

responsibility towards them,” says Lety. “They were investing time

and money in me and I wanted them to feel like they were doing

the right thing.”

Around that same time, Lety began working on her “My Plan

for Tomorrow.” This is a booklet used worldwide with Compassion

youth age 12 and older to help them plan for their future. Youth

write down their goals for one, five and 10 years. At the end of

every year, they evaluate their goals and decide how to move

forward.

“As a child, it was a challenge for me to think what my goals in

life were when I did not have the money to pursue those dreams,”

Lety says. “Nonetheless, my tutor insisted that I fill out the booklet,

and since I was always drawn into helping women and children, that

is exactly what I wrote in My Plan for Tomorrow.”

As the years passed, Lety honed her vision. And when she

learned that there were people called prosecutors who helped

victims of abuse, she knew it was exactly what she wanted to do.

With Compassion’s help through the Leadership Development

Program, Lety began to study law at university. She knew a

prosecutor could not be shy but had to speak with conviction, so

with the guidance of the program, Lety learned how to come out of

her shell and be a confident leader of others.

After more than five years of hard work, Lety graduated. She

then got her dream job in Guatemala’s Office for Abused Women

and Children, where she is in charge of investigating and collecting

evidence for cases of physical, sexual and psychological abuse,

and bringing the perpetrators to justice.

Lety has now been a prosecutor for more than seven

years, and there is no trace of that shy girl who used to hide in a

classroom. Instead, Lety has become an influential woman, at work

and in her community. At her church, she serves as a youth leader,

teaching teens to plan for their goals.

“I try to motivate them and challenge them to fight for their

dreams,” she says proudly.

Compassion’s mission is to release children from poverty in

Jesus’ name. That includes being released from thoughts of defeat

and replacing them with dreams for a better future—something Lety

is now passing on to the next generation.

“I try to motivate them and challenge them to fight for their dreams.”

LEADERSHIP DEVELOPMENT PROGRAM: The nations are crying

out for good leaders—men and women equipped to lead their

countries out of the despair of poverty and into a future of promise

and purpose. But the world doesn’t just need “good” leaders—it

needs godly leaders devoted to serving Jesus Christ. Compassion

works with the local church to develop young men and women with

exceptional academic ability and leadership potential into Christian

leaders through the Leadership Development Program.

Global snapshot

1,606young leaders are

currently being developed

through this program.

781students successfully

completed the Leadership

Development Program in

our last fiscal year.

Y E A R I N R E V I E WL O C A T I O N :G U A T E M A L A

L E A D E R S H I P D E V E L O P M E N T P R O G R A M

2 0 1 5 – 2 0 1 6

Shift to youth development

We continue to shift from the Leadership Development Program

to youth development activities, such as vocational training and

post-secondary education, giving more youth the skills and

opportunities to escape poverty for good!


Making soap, bringing hope

B Y J E H O J A K I M S A N G A R E ,

C O M P A S S I O N B U R K I N A F A S O ,

A N D A V E L E E N S C H I N K E L ,


It’s still morning, but the blazing west African sun is

already baking the church’s adobe walls and causing heat

waves to shimmer like water above the dusty ground. In

the shade of an old tree beside the church, Julienne sits

with several other mothers in Burkina Faso’s Child Survival

Program. They measure ingredients into several large tubs,

then gently stir the bubbly liquid until it’s a smooth, cream-

coloured paste. The sweet smell of shea butter and coconut

oil wafts from the tub, and Julienne smiles. It’s the smell of

hard work, stability and a better life.

Julienne Nikiema and her family live in Tanghin

Dassouri, about 20 kilometres from the country’s bustling

capital, Ouagadougou. Julienne’s husband, Alain, works as a

bicycle mechanic. His occupation is in demand, as bicycles

are a primary form of transportation in Burkina Faso. But on

average, Alain brings home less than $1.30 a day—barely

enough to pay for the family’s one daily meal, much less cover

additional expenses.

“My children couldn’t have breakfast because I cooked

one meal per day,” says Julienne. “When a child fell sick, my

husband and I either borrowed money from relatives to send

that child to the local medical centre, or we just relied on

traditional medication.”

A Complementary

Intervention gives moms

in Burkina Faso the tools

they need to support their

families.

O V E R V I E W :

2 0 1 5 – 2 0 1 6 Y E A R I N R E V I E WL O C A T I O N :B U R K I N A F A S O

C O M P L E M E N T A R Y I N T E R V E N T I O N S


For Julienne, this was simply the way things were. Many women

in Burkina Faso lack the education and skills to help support their

families. According to UNICEF, two out of three women over the

age of 15 are illiterate. Only 50 per cent of girls attend primary

school, and less than one in five make it to high school. Many marry

young and begin having children in their late teens. There are few

opportunities to complete their education, learn skills or help provide

for their families.

But things are changing in Tanghin Dassouri. When the local

church first opened the Child Survival Program here in 2012, Julienne,

then expecting her son, Basile, was among 45 new and pregnant

mothers to be registered. Julienne received medical care and

nutritional support. She learned how to care for herself and how to

love and support her children’s development. Best of all, she learned

about God’s love and the hope He offers through His Son.

The program is also helping the mothers learn skills to

help provide for their families. In 2015, through the help of a

Complementary Intervention, the mothers learned how to make soap

and began a business selling the soap together.

First, they extract the butter from the pit of a shea fruit, a

small, green fruit found in abundance in Burkina Faso. Second, they

combine the shea butter with coconut oil, water and lye, and then

pour the mixture into a large mould. Once dried, they cut the soap

into patterned cubes. Last, the mothers print their brand, Super Moss,

on each bar of soap, so it can be easily identified in the marketplace.

The mothers currently produce hundreds of bars of soap every week.

The women are divided into three teams and rotate duties,

relying on and providing support to one another. Learning to run a

small business together has provided them the unique opportunity to

be entrepreneurs without the pressure of managing a business alone.

They recently opened a soap shop at the Child Survival Program.

Elise Ouedraogo, the Child Survival Program Implementer, is

proud of the mothers’ determination and success. “These women are

really motivated and are gradually mastering the production of soap,”

she says.

The business has brought hope for the future to these

mothers and their families.

“Now my life is no longer the same,” says Julienne. “I earned

$2.60 after selling soap and the day after, I realized that Alain couldn’t

provide for our daily meal. So I used my profit to buy vegetables and

cook rice and fish for the family, plus some cookies and sweets for

Basile and his two siblings.”

These women, who once felt helpless to change their situation,

are discovering their ingenuity and business acumen. They are

finding new ways to diversify their business by making different sizes

of bars, having various price points for their products, and expanding

into new markets. The women have learned that they have the skills

and resources to change their circumstances.

“Thanks to Super Moss,” smiles Julienne, “I can now feel the joy

of motherhood and be useful in my community.”

COMPLEMENTARY INTERVENTIONS: Sponsorship brings a host

of benefits to children living in poverty: educational opportunities,

a connection to a caring sponsor, medical checkups and more.

But children have needs that go beyond what sponsorship covers.

Complementary Interventions address the unique one-time needs

of children and the broader needs in their communities. These

activities help ensure families have access to the basic necessities

of life, such as safe water, job training, secure housing and dozens

of other practical, community-wide needs.

Global snapshot

$1,006,542was donated by Canadians

to bring lifesaving water and

sanitation to communities

across Africa.

$750,000Canadians donated nearly $750,000 to

education initiatives such as vocational

training and university prep courses

that will help families escape poverty

for good!

$5,037,056Canadians donated more than $5,037,056 to

support 62 different initiatives in 24 countries,

including safe water, classrooms, home

reconstruction, university education and

major surgery.

Y E A R I N R E V I E WL O C A T I O N :B U R K I N A F A S O

C O M P L E M E N T A R Y I N T E R V E N T I O N S

2 0 1 5 – 2 0 1 6

“I can now feel the joy of motherhood and be useful in my community.”


87,628 total supporters

Individuals and families 97.3%

85,246

Other 2.7%

2,382

2,382 (other 2.7%)

Businesses 1,093 (45.9%)

Churches 948 (39.8%)

Other groups 173 (7.3%)

Schools 115 (4.8%)

Foundations 29 (1.2%)

Service/community 24 (1.0%)

Number of people we served in 2016 by region:

*Total beneficiaries include all children registered in the Child Sponsorship Program, caregivers in the

Child Survival Program and students in the Leadership Development Program.

Where does Compassion’s support come from?In our last fiscal year, Compassion’s support came from 87,628 individuals, families and organizations.

Their generosity allowed us to continue our mission of releasing children from poverty, seeing them

develop healthy minds, bodies, relationships and a lasting faith in Jesus Christ.

1,872,799beneficiaries* were being assisted through Compassion’s ministry as of June 30, 2016.

424,287 Haiti 103,094

Dom. Republic 60,881

El Salvador 56,893

Guatemala 53,723

Honduras 53,351

Nicaragua 52,118

Mexico 44,227

353,803 Ecuador 84,978

Bolivia 78,601

Peru 73,326

Colombia 72,886

Brazil 44,012

645,768 Kenya 107,502

Ethiopia 105,217

Uganda 96,690

Rwanda 80,926

Tanzania 79,299

Burkina Faso 68,661

Ghana 66,718

Togo 40,755

448,941 India 148,690

Indonesia 125,331

Philippines 81,854

Thailand 41,597

Bangladesh 38,419

Sri Lanka 13,050

CENTRALAMERICA AND

THE CARIBBEAN23%

SOUTHAMERICA

19%

AFRICA34%

ASIA24%

Individuals and families make up 97.3 per cent of our total supporters.

The other three per cent comes from churches, Sunday schools and

youth groups, businesses/organizations, schools, service/community

organizations and other groups.

Total supporters in 2016

Other 2.7% of supporters

T H E G L O B A L I M P A C T 2 0 1 5 – 2 0 1 6 Y E A R I N R E V I E W


Financial integrityAs certified members of the Canadian Council of Christian

Charities, Compassion Canada is committed to handling the

finances entrusted to us with the utmost integrity. This year, 85.3

per cent of funds were used for program activities benefiting the

children we serve, and 14.7 per cent for support services.

Ministry activities (85.3%) International program 78.3%

Supporter services and advocacy in Canada 7.0%

Support services (14.7%) Fundraising 8.8%

General and administration 5.9%

The cost of fundraisingWe spend just 8.8¢ of every dollar we receive on fundraising efforts.*

This pays for all of our fundraising staff, print and radio advertising,

printing and distribution costs for our mailings, fundraising events

and online activities. Compassion does not, directly or indirectly,

pay finder’s fees, commissions or percentage compensation

based on contributions.

*Excluding any gift where 100 per cent of the funds are designated to program use (such as child, family and centre gifts).

Compassion Canada: By the numbers

F I N A N C I A L S

Financialintegrity

Revenues 2016 2015

Child Development 56,955,406 54,826,104

Complementary Interventions 5,037,056 4,582,366

Child Survival 1,580,588 2,021,849

Leadership Development 651,139 1,013,799

Investment Income 323,816 334,795

Other Revenue ** 66,748 12,305

Total Revenues $ 64,614,753 $ 62,791,218

Expenditures 2016 2015

MINISTRY ACTIVITIES

Child Development 48,296,643 46,375,578

Complementary Interventions 3,853,800 3,724,217

Child Survival 1,270,340 1,740,785

Leadership Development 742,065 992,257

Total Ministry Activities $ 54,162,848 $ 52,832,837

SUPPORT SERVICES

Fundraising 5,584,822 5,372,889

Administration 3,717,167 3,589,803

Total Support Services $ 9,301,989 $ 8,962,692

Total Expenditures $ 63,464,837 $ 61,795,529

Funds for Future Ministries $ 1,149,916 $ 995,689

Financials by Percentage 2016 2015

Ministry Activities 85.3% 85.5%

Fundraising 8.8% 8.7%

Administration 5.9% 5.8%

** includes donations restricted

for building replacement

50,000 —

Y E A R I N R E V I E W2 0 1 5 – 2 0 1 6

Compassion Canada proudly accepts the Seal of Organizational Integrity and Accountability.


Compassion Canada saw encouraging

financial growth in fiscal year 2016, with

$64,614,753 in total revenue as of June

30, 2016—up from $62,791,218 the prior

year. Program revenue fell short of budget

by 1.2 per cent, but we still enjoyed a 2.9

per cent increase in revenue compared to

fiscal year 2015.

Operating Fund— Ministry revenueChild Sponsorship program revenues

consist of monthly sponsorship donations,

child and centre gifts and Christmas gifts.

Overall, these revenues increased 3.9 per

cent to $56,955,406, thanks to growth in

sponsorships. This number came 1.4 per

cent short of budget. Eighty per cent went

toward child development activities.

Monthly sponsorships, which make

up the largest portion of Child Sponsorship

Program revenues, increased 3.9 per cent.

Donations toward child and centre gifts

increased 4.2 per cent, while income from

Christmas gifts increased 3.2 per cent.

Revenue from Complementary

Interventions increased 9.9 per cent to

$5,037,056.

Child Survival program revenue

decreased 21.8 per cent to $1,580,588. This

amount fell short of budget by 1.2 per cent.

In 2015, there was a spike in Child Survival

Program support because we moved some

of our prior reserves into income. Adjusting

to exclude this amount, donations actually

increased 12.5 per cent over 2015.

Leadership Development program

revenue decreased 35.8 per cent to

$651,139. This figure was under target by

31.7 per cent. The decrease was expected,

due to a change in Compassion’s global

strategy.1 To fulfil Compassion Canada’s

financial commitment to the ministry,

$221,154 of restricted funds—a reserve

set aside for needs like this as they

arise—were released to the Leadership

Development program.

Operating Fund— Ministry expenses2

Total ministry activity and program

expenditures increased 2.5 per cent

in fiscal year 2016 to $54,162,848,

comprising 85.3 per cent of the total

expenses for the year. Fundraising costs

were 8.8 per cent of total expenses and

Administration costs accounted for the

remaining 5.9 per cent of total expenses.

Total operating expenditures

increased by 5.3 per cent in fiscal year

2016, less than budget by 4.0 per cent.

Marketing and Strategy expenses

totaled $4,675,434, below budget by

8.5 per cent. Expenditures for Business

Services totaled $3,543,196, 6.2 per

cent greater than budget. Engagement

expenses were $3,034,608, less than

budget by 8.1 per cent.3

Other fundsThe Capital Fund earned $89,005 in

investment revenue and received a

$360,000 transfer from the Operating

Fund for use of the building and all capital

assets. Also, donations amounting to

$50,000 were received toward the building

fund. Total capital purchases for the year

were $1,035,345. As of June 30, 2016,

the Capital Fund has capital assets with a

net book value of $5,210,973 and current

assets of $2,839,081. During the fiscal

year, we transferred $510,404 from the

Operating Fund to the Capital Fund for a

future building.

Previously restricted funds in the

Planned Giving Fund equaling $5,000

were transferred to the Operating Fund to

be used for ministry purposes only. As of

June 30, 2016, there is $133,777 remaining

in the Planned Giving Fund.

SummaryIn fiscal year 2016, Compassion

experienced moderate total revenue

growth of 2.9 per cent. We are grateful

for the ongoing generosity of Canadian

supporters, especially in a challenging

context. Their commitment makes it

possible for us to continue coming

alongside churches around the world

to help release children from poverty in

Jesus’ name.

F I S C A L Y E A R 2 0 1 6 I N R E V I E W

A financial snapshot

1 The Leadership Development program is

transitioning into new youth development

strategies that will benefit all youth in

Compassion’s program, whether they plan to

attend university or pursue a trade.

2 In fiscal year 2015, Compassion Canada began

to budget and monitor operating expenses by

department instead of support service areas

(program, fundraising and administration). This

approach gives us greater insight into ways

to control expenses. To allow for comparison

with prior years and other charities in Canada,

expenditures are now allocated to program,

fundraising or administration based on the

nature of the expenses and the benefit received

by each of the three areas.

3 A significant portion of expenses for

Engagement is considered program

expenditures in Compassion Canada’s external

financial reports and reporting to the Canada

Revenue Agency. This is comparable to the

practice of other charities in Canada and to

Compassion International’s practice.

F I N A N C I A L S Y E A R I N R E V I E W2 0 1 5 – 2 0 1 6


2015

Historical sponsorship growth

Sponsor retention rate

Key results indicators

Cancellation rate Correspondence rate

A P P E N D I X

What do these numbers mean?

Cancellation rate: The number of supporters choosing to cancel

their sponsorship. Compassion Canada has one of the lowest

cancellation rates in the entire Compassion Global Partner Alliance.

Sponsor retention rate: The number of supporters choosing to

take on another child when their current Compassion child leaves

Compassion’s program.

Delinquency rate: The number of supporters behind in their

sponsorship donations. This can happen for any number of reasons,

but is typically related to financial difficulties beyond their control.

Correspondence rate: The number of supporters writing a letter to

their sponsored child in the last 12 months.

10,000

0

198

0

1981

198

2

198

3

198

4

198

5

198

6

1987

198

8

198

9

199

0

1991

1992

1993

199

4

199

5

199

6

1997

199

8

199

9

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

201

0

201

1

201

2

201

3

201

4

201

5

201

6

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000End of FY

20151st Q FY16

2nd Q FY16

3rd Q FY16

4th Q FY16

Global

Cancellation rate 6.46% 6.38% 6.17% 6.5% 6.77% 10.02%

Sponsor retention rate 73.73% 73.41% 73.89% 73.78% 72.43% 66.65%

Delinquency rate 3.26% 3.39% 3.21% 3.32% 3.26% 2.35%

Correspondence rate 71.24% 70.36% 69.35% 69.41% 76.47% 69.80%

0

2

4

6

8

10

12

2010 20102011 20112012 20122013 20132015 20152014 2014

Canada Global Canada Global

62

64

66

68

70

72

74

76

78

70

.82

71.2

4

7.4

5

7.6

6

7.13

6.5

3

6.2

9

6.4

6

71.6

7

69

.91 71

.75

72

.32

67

652010 2011 2012 2013 2014 2016

69

71

73

75

77

79

81

83

85

Canada GlobalThe percentage of sponsors who sponsor a new child when their child departs the program.

75.27

79.12

77.22

75.29

75.77

73.7372.43

Y E A R I N R E V I E W2 0 1 5 – 2 0 1 6

2016

6.7

7

2016

76

.47


Financial Statements of COMPASSION CANADA Year ended June 30, 2016

Contents

Independent Auditors’ Report 2

Financial Statements

Statement of Financial Position 3

Statement of Operations and Changes in Fund Balances 4

Statement of Cash Flows 5

Notes to Financial Statements 6 – 9

Financial Statements of

Year ended June 30, 2016

II

III

IV

V

VI–IX

Chartered Professional Accountants & Business Advisors

Tel: 519-235-01011-888-786-7864

Fax: 519-235-3211

PTMG LLP71 Main St. N. Exeter, ON N0M 1S3 www.ptmg.on.ca

Ken Pinder, CPA, CA Brian Taylor, CPA, CA Ron Godkin Professional Corporation Ken Boersma Professional Corporation Dave Vantyghem Professional Corporation

INDEPENDENT AUDITORSʼ REPORT To the Members of Compassion Canada

We have audited the accompanying financial statements of Compassion Canada, which comprise the statement of financial position as at June 30, 2016, the statements of operations and changes in fund balances and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditorsʼ responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorsʼ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Compassion Canada as at June 30, 2016, and results of operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Exeter, Ontario Chartered Professional Accountants September 9, 2016 Licensed Public Accountants

CO

MPA

SSIO

N C

ANAD

A

As a

t Jun

e 30

, 201

6, w

ith c

ompa

rativ

e fig

ures

for J

une

30, 2

015

Ope

ratin

gC

apita

lPl

anne

d G

ivin

g20

1620

15Fu

ndFu

ndFu

nds

Tota

lTo

tal

Asse

tsC

urre

nt a

sset

s:

Cas

h$

2,60

0,07

5

$-

$6,

318

$2,

606,

393

$

2,89

2,53

3

Inve

stm

ents

(not

e 2)

6,18

1,46

9

2,39

5,77

3

139,

123

8,71

6,36

5

8,65

9,38

3

Prep

aid

expe

nses

and

taxe

s re

cove

rabl

e58

7,70

5

-

- 58

7,70

5

49

3,46

7

In

terfu

nd b

alan

ces

(433

,607

)

44

3,30

8

(9

,701

)

- -

8,93

5,64

2

2,83

9,08

1

135,

740

11,9

10,4

63

12,0

45,3

83

Prop

erty

, bui

ldin

g an

d eq

uipm

ent (

note

3)

- 5,

210,

973

-

5,21

0,97

3

4,47

1,05

3

$8,

935,

642

$8,

050,

054

$13

5,74

0

$17

,121

,436

$

16,5

16,4

36

Liab

ilitie

s an

d Fu

nd B

alan

ces

Cur

rent

liab

ilitie

s:Ac

coun

ts p

ayab

le a

nd a

ccru

ed li

abilit

ies

$72

6,35

2

$

- $

1,96

3

$

728,

315

$68

8,25

8

C

hild

sup

port

and

gifts

pay

able

4,38

5,34

9

- -

4,38

5,34

9

4,44

9,17

5

5,11

1,70

1

- 1,

963

5,11

3,66

4

5,13

7,43

3

Def

erre

d co

ntrib

utio

ns (n

ote

4)2,

171,

795

-

- 2,

171,

795

2,

692,

942

7,

283,

496

-

1,96

3

7,

285,

459

7,

830,

375

Fund

bal

ance

s:Eq

uity

in p

rope

rty, b

uild

ing

& eq

uipm

ent

- 4,

960,

182

-

4,96

0,18

2

4,89

0,99

2

Exte

rnal

ly re

stric

ted

- 1,

900,

000

70

,000

1,

970,

000

1,

925,

000

In

tern

ally

rest

ricte

d20

8,11

9

1,

189,

872

63

,777

1,

461,

768

90

1,35

8

Ac

cum

ulat

ed o

pera

ting

surp

lus

1,44

4,02

7

- -

1,44

4,02

7

968,

711

1,65

2,14

6

8,05

0,05

4

133,

777

9,83

5,97

7

8,68

6,06

1

$8,

935,

642

$8,

050,

054

$13

5,74

0

$17

,121

,436

$

16,5

16,4

36

The

acco

mpa

nyin

g no

tes

are

an in

tegr

al p

art o

f the

se fi

nanc

ial s

tate

men

ts.

, Dire

ctor

, Dire

ctor

Stat

emen

t of F

inan

cial

Pos

ition

On be

half of th

e Bo

ard

3III

II

CO

MPA

SSIO

N C

AN

AD

A

For t

he y

ear e

nded

Jun

e 30

, 201

6, w

ith c

ompa

rativ

e fig

ures

for 2

015 Ope

ratin

gC

apita

lPl

anne

d G

ivin

g20

1620

15Fu

ndFu

ndFu

nds

Tota

lTo

tal

Rev

enue

:C

hild

dev

elop

men

t pro

gram

$56

,955

,406

$

- $

- $

56,9

55,4

06

$54

,826

,104

C

ompl

emen

tary

inte

rven

tions

5,03

7,05

6

- -

5,03

7,05

6

4,58

2,36

6

Chi

ld s

urvi

val p

rogr

am1,

580,

588

-

- 1,

580,

588

2,

021,

849

Le

ader

ship

dev

elop

men

t pro

gram

651,

139

- -

651,

139

1,01

3,79

9

Inve

stm

ent i

ncom

e (n

ote

2)23

3,18

1

89

,005

1,

630

323,

816

334,

795

Oth

er re

venu

e16

,748

50

,000

-

66,7

48

12,3

05

64,4

74,1

18

139,

005

1,63

0

64

,614

,753

62

,791

,218

Expe

nditu

res:

Min

istry

act

iviti

es:

Chi

ld d

evel

opm

ent p

rogr

am48

,296

,643

-

- 48

,296

,643

46

,375

,578

C

ompl

emen

tary

inte

rven

tions

3,85

3,80

0

- -

3,85

3,80

0

3,72

4,21

7

Chi

ld s

urvi

val p

rogr

am1,

270,

340

-

- 1,

270,

340

1,

740,

785

Le

ader

ship

dev

elop

men

t pro

gram

742,

065

- -

742,

065

992,

257

54,1

62,8

48

- -

54,1

62,8

48

52,8

32,8

37

Supp

ort s

ervi

ces:

Fund

rais

ing

5,58

4,82

2

- -

5,58

4,82

2

5,37

2,88

9

Adm

inis

tratio

n3,

781,

742

(6

4,57

5)

- 3,

717,

167

3,

589,

803

9,

366,

564

(6

4,57

5)

- 9,

301,

989

8,

962,

692

63

,529

,412

(6

4,57

5)

- 63

,464

,837

61

,795

,529

Exce

ss o

f rev

enue

ove

r exp

endi

ture

s$

944,

706

$

203,

580

$

1,63

0

$

1,14

9,91

6

$

995,

689

Fund

bal

ance

s, b

egin

ning

of y

ear

1,21

2,84

4

7,33

6,07

0

137,

147

8,68

6,06

1

7,69

0,37

2

Inte

rfund

tran

sfer

s(5

05,4

04)

510,

404

(5,0

00)

-

-

Fund

bal

ance

s, e

nd o

f yea

r$

1,65

2,14

6

$

8,05

0,05

4

$

133,

777

$

9,83

5,97

7

$

8,68

6,06

1

The

acco

mpa

nyin

g no

tes

are

an in

tegr

al p

art o

f the

se fi

nanc

ial s

tate

men

ts.

Stat

emen

t of O

pera

tions

and

Cha

nges

in F

und

Bala

nces

4

CO

MPA

SSIO

N C

AN

AD

A

For t

he y

ear e

nded

Jun

e 30

, 201

6, w

ith c

ompa

rativ

e fig

ures

for 2

015 Ope

ratin

gC

apita

lPl

anne

d G

ivin

g20

1620

15Fu

ndFu

ndFu

nds

Tota

lTo

tal

Cas

h pr

ovid

ed b

y (u

sed

in):

Ope

ratin

g ac

tiviti

es:

Exce

ss o

f rev

enue

ove

r exp

endi

ture

s$

944,

706

$

203,

580

$

1,63

0

$

1,14

9,91

6

$

995,

689

Ad

just

men

ts fo

r:Tr

ansf

ers

amon

g fu

nds

(505

,404

)

510,

404

(5

,000

)

-

- Am

ortiz

atio

n of

pro

perty

, bui

ldin

g an

d eq

uipm

ent

- 29

5,42

5

- 29

5,42

5

319,

931

N

et c

hang

e in

non

-cas

h op

erat

ing

wor

king

cap

ital (

Not

e 5)

(730

,520

)

81,8

00

9,

566

(639

,154

)

(1,1

36,5

22)

(291

,218

)

1,09

1,20

9

6,

196

806,

187

17

9,09

8

Inve

stin

g ac

tiviti

es:

Purc

hase

of p

rope

rty, b

uild

ing

and

equi

pmen

t-

(1,0

35,3

45)

- (1

,035

,345

)

(7

65,8

67)

D

ecre

ase

(incr

ease

) in

inve

stm

ents

4,09

1

(5

5,86

4)

(5,2

09)

(56,

982)

42

9,59

4

4,09

1

(1

,091

,209

)

(5

,209

)

(1

,092

,327

)

(3

36,2

73)

Net

incr

ease

(dec

reas

e) in

cas

h(2

87,1

27)

-

987

(2

86,1

40)

(1

57,1

75)

Cas

h, b

egin

ning

of y

ear

2,88

7,20

2

-

5,33

1

2,

892,

533

3,04

9,70

8

Cas

h, e

nd o

f yea

r$

2,60

0,07

5

$

- $

6,31

8

$

2,60

6,39

3

$

2,89

2,53

3

The

acco

mpa

nyin

g no

tes

are

an in

tegr

al p

art o

f the

se fi

nanc

ial s

tate

men

ts.

Stat

emen

t of C

ash

Flow

s

5IV V

COMPASSION CANADA Notes to Financial Statements Year ended June 30, 2016

6

Compassion Canada (the “Organization”) is an international Christian child and community development agency which responds to the physical and spiritual needs of children in the developing world and their communities by encouraging vision, providing resources and developing skills.

Compassion Canada is incorporated, without share capital, under the Canada Not-for-profit Corporations Act. The Organization is a registered charity under the Income Tax Act (Canada) and, accordingly, is exempt from income taxes, provided certain requirements of the Income Tax Act (Canada) are met.

1. Significant accounting policies: The financial statements have been prepared by management in accordance with Canadian accounting standards for not-for-profit organizations.

(a) Restricted fund accounting:

The financial statements of the Organization are maintained in accordance with the restricted fund method of accounting. All financial statement transactions have been recorded in three funds: Operating, Capital and Planned Giving.

(i) Operating Fund:

Operating Fund is composed of four main programs: Child Development through Sponsorship, Complementary Interventions, Child Survival and Leadership Development.

(ii) Capital Fund:

Capital Fund reports the assets, liabilities, revenues and expenses related to the Organization’s property, building, vehicle and equipment.

(iii) Planned Giving:

The Planned Giving Fund consists of the Annuity Fund, which is closed and contains seven annuities totalling $70,000. The organization receives any excess funds remaining upon the death of the annuitant.

(b) Revenue recognition:

Restricted contributions related to general operations are recognized as revenue of the Operating Fund in the year in which the related expenses are incurred. Contributions toward capital assets are recognized as revenue to the Capital Fund.

Unrestricted contributions are recognized as revenue of the Operating Fund in the year received.

Investment income is recognized as revenue as earned.

(c) Contributed services:

A substantial number of volunteers contribute a significant amount of their time each year. Because of the difficulty of determining the fair value, contributed services are not recognized in the financial statements.

(d) Financial instruments:

(i) Measurement

All financial instruments are reported at cost or amortized cost less impairment, if applicable. Financial assets are tested for impairment when changes in circumstances indicate the asset could be impaired. Transaction costs on the acquisition, sale or issue of financial instruments are charged to the financial instrument.


7

1. Significant accounting policies (continued): (d) Financial instruments (continued):

(ii) Financial Risk

Interest Rate Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Organization is exposed to interest rate risk arising from the possibility that changes in interest rates will affect the value of fixed income denominated investments.

Credit Risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Organization has a concentration of credit risk related to all cash being held by one financial institution.

Liquidity Risk is the risk that the Organization encounters difficulty in meeting its obligations associated with financial liabilities.

It is management’s opinion that the Organization is not exposed to significant interest, credit or liquidity risks arising from their financial instruments.

(e) Property, building and equipment:

Purchased property, building and equipment are recorded at cost. Contributed property, building and equipment are recorded at fair value at the date of contribution. Amortization expense is reported in the Capital Fund net of an annual asset use fee charged to the Operating Fund. Amortization is provided on a straight-line basis over the estimated useful lives of capital assets. Amortization rates are as follows:

Asset Rate

Building Retire in 2043 Building equipment & improvements 10 years Office and computer equipment, software 3 – 10 years Vehicle 5 years

(f) Use of estimates:

The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates.

(g) Allocation of expenditures:

Expenditures are recorded and reported by program and support services. Certain officers and employees perform a combination of program, fundraising and administrative activities; as a result, compensation expenditures are allocated based on time dedicated to the activity. Other operating and general expenditures, including professional and consulting fees, human resource support, technology support, occupancy expenditures and asset use fees, have been allocated based on the level of benefit received by each program and support service.

The costs of the Organization’s property, building, vehicle and equipment are reported in the Capital Fund which in turn charges the operating fund an asset use fee for the use of those assets. The asset use fee charged has been disclosed in Note 3 to the financial statements.

VI VII


8

2. Investments:

2016 2015 Fair Fair Cost value Cost value

Government and Corporate Bonds $ 7,739,503 $ 8,176,118 $ 7,609,545 $ 8,095,277 Guaranteed Investment Certificate 826,162 826,162 852,637 852,637 Mutual Funds 150,700 150,700 197,201 197,201 $ 8,716,365 $ 9,152,980 $ 8,659,383 $ 9,145,115

The fair value of investments was determined by reference to published price quotations in an active market. Investment income includes interest, dividends and realized gains and losses.

Government and Corporate Bonds have an effective interest rate of 1.50% to 8.64% (2015 – 2.38% to 8.64%) and mature between 2016 and 2028.

Guaranteed Investment Certificates have an effective interest rate of 2.35% to 2.60% (2015 – 2.35% to 2.60%) and mature later in 2016.

Mutual Funds have an effective interest rate of about .80% (2015 – 1.00%) with no fixed maturity date.

3. Property, building and equipment:

2016 2015 Accumulated Net book Net book Cost amortization value value

Land $ 1,433,934 $ - $ 1,433,934 $ 1,433,934 Building 2,800,949 826,377 1,974,572 2,012,637 Office and computer equipment, software 2,546,698 744,231 1,802,467 1,023,181 Vehicle 13,002 13,002 - 1,301 $ 6,794,583 $ 1,583,610 $ 5,210,973 $ 4,471,053

Amortization charges for the year are $295,425 (2015 - $319,931). Included in Office and computer equipment, software are costs of $1,491,090 for software under development that is not being amortized until it is in use starting in 2017. The asset use fees, net of other general capital expenses, for the year are $360,000 (2015 - $360,000).

4. Deferred contributions: Deferred contributions related to expenses of future periods represent unspent donor restricted donations for the Child Development program and Complementary Interventions.

Contributions received from child and sponsorship plus supporters, in excess of the current month’s program support, are deferred until subsequent periods when the funds are used for the specific program.

Contributions received for Complementary Interventions are deferred until the related expense is incurred in future periods.

2016 2015

Child and sponsorship plus deferred contributions $ 1,865,661 $ 2,692,942 Complementary Interventions deferred contributions 306,134 -

$ 2,171,795 $ 2,692,942


9

5. Net Change in Non-Cash Operating Working Capital

2016 2015

Prepaid expenses and taxes recoverable $ (94,238) $ 132,245 Accounts payable and accrued liabilities 40,057 (181,271) Child support and gifts payable (63,826) (979,293) Deferred contributions (521,147) (108,203)

$ (639,154) $ (1,136,522)

6. International Ministry Agreements: The Organization conducts its childcare ministry overseas under a Master Agency Agreement with Compassion International of Colorado Springs, Colorado.

During the year, the Organization participated in the following transactions with Compassion International: Computer service costs were incurred totalling $145,978 (2015 - $173,932). These transactions are measured at the exchange values agreed upon with Compassion International.

The Community Development portion of the Response Program is not covered by this agreement. Separate agreements are entered into with Christian NGO’s for each community development or relief project. Currently, Compassion Canada has development projects in East Africa.

7. Group Pension Plan: In 2007, the Organization replaced a Group RSP with a defined contribution registered pension plan (RPP). Employer contributions during the year were $352,096 (2015 - $320,198) for current, and $9,052 (2015 - $8,752) for past service contributions. In addition, $8,453 (2015 - $17,505) of past service contributions will be paid out over the next year based on continued employment of eligible staff.

8. Capital Disclosures: The Organization’s objective when managing capital is to safeguard the entity's ability to continue as a going concern, so that it can continue to respond to the physical and spiritual needs of children in the developing world and their communities by encouraging vision, providing resources and developing skills. As the Organization is a not-for-profit organization, this objective is dependent on the support of individual donors throughout Canada.

The Organization defines its capital as its Fund balances. The Organization manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to facilitate the management of its capital requirements, the Organization prepares annual revenue and expenditure budgets which are based on established and projected funding needs for the year. These budgets are updated as necessary, depending on changes in circumstances, and are approved by the Board of Directors.

There have been no changes in what the Organization defines as capital, or the objectives, policies and procedures for managing capital in the year.

VIII IX

COMPASSION CANADABox 5591, London, ON N6A 5G8

TEL: (519) 668-0224 TOLL FREE: 1-800-563-5437 FAX: (519) 685-1107www.compassion.ca

WHAT IS COMPASSION?

As one of the world’s leading child development organizations,

Compassion partners with the local church in 26 countries to end

poverty in the lives of children and their families. Today, more than

1.8 million children and their families are discovering lives full of

promise and purpose as they develop in all aspects of their lives—

minds, bodies and relationships—while discovering God’s love for

them in the gospel of Jesus Christ.

the president’s annual report - compassion...

Documents