Financial

Yes. All child sponsorship contributions above $5 are tax-deductible in New Zealand. These will be included in the tax receipt you receive from Tearfund at the end of the financial year and are eligible for a 33.3% return (as per any charitable donations in New Zealand) if you are eligible to make the claim. Further details can be found on the current IR526 tax credit claim form at ird.govt.nz.

Compassion International-assisted children and their families rarely receive cash. Benefits are almost always in the form of goods and services, carefully considered, delivered and purchased according to the children's individual needs.

Child sponsorship money is pooled to provide the services each sponsored child in our child development centres receives. This support system means that no child is disadvantaged if a sponsor can't make that month’s financial contribution. However, child and family gifts are allocated exclusively to your sponsored child and their family. Programme staff will involve the family in purchasing gifts that are appropriate and meet their specific needs.

We are committed to earning, and keeping, the trust and confidence of our donors and sponsors through complete transparency. Integrity is not only a commitment; it is a value that drives our whole organisation.

Tearfund regularly audits its projects and partners, and we in turn are audited by external auditors and in some cases by the Ministry of Foreign Affairs and Trade. We not only audit that the money gets to the intended partner and project but we also audit how effective the money given is being used and how it is impacting the communities and individuals involved.

Compassion International, our chosen partner for child sponsorship, is also audited, and has a global internal audit function that routinely monitors financial and operational integrity at child development centres and field offices across the globe. Through these internal audits of project partners, we endeavour to ensure that all programs are meeting minimum standards of financial accountability and programmatic integrity. Any concerns are documented and brought to the attention of staff and management for consideration, action and follow up.

If you have any questions about how funds are used at Tearfund or Compassion International, please don’t hesitate to contact us. You can find out more about Tearfund’s financial information or view our annual reports by clicking here, emailing us at info@tearfund.org.nz or calling 0800 800 777.

Children and families who are assisted through our partner’s child sponsorship programme rarely receive cash. Benefits are almost always in the form of goods and services, carefully considered, delivered or purchased according to their needs and best practice.

The majority of donations to Compassion International (around 80%) are used for:

• Developing, delivering and supervising child development programmes
• Purchasing goods and services for the direct benefit of the children in our programmes
• Informing and updating sponsors and facilitating their personal relationship with their sponsored child

The rest (around 20%) is used for administration and fundraising costs. Here at Tearfund we also have administration costs that are included in your sponsorship donation. This sits around the 30% mark.

We do not use child sponsorship funds for community development activities; these are funded through other initiatives.

Gifts: One hundred percent of family, child development centre, graduation, and special child gifts (including birthday gifts) are sent through Compassion International to the child development centre, where staff members assist the children and/or families to purchase goods that are appropriate and meet their specific needs.

Christmas: Because of the scale of the gift distribution process at Christmas, 90% of funds donated for Christmas gifts are pooled to purchase a gift for each Compassion International assisted child. The other 10% of this money is used for administration and fundraising costs.

How much does it cost to sponsor a child? Sponsorship costs $56 (NZD) per month per sponsored child. This money helps supply resources to local field churches partnering with us, and provide a range of benefits to the children who are registered in the program, including:

• The opportunity to hear the gospel in a culturally relevant and age sensitive way.
• Learning opportunities, school supplies and assistance with school fees as needed.
• Health care such as medical check-ups, dental care, vaccinations and hygiene training
• Nutritious meals or snacks as required
• Key life skills and vocational training programs
• Individual care and attention from programme staff