$39 a Month to ChildFund International: How Much Goes to the Child (2023)?

Way back in 1938, the China Children’s Fund was established by a Presbyterian minister to provide assistance to children in China  after the war (Sino-Japanese War) by starting a child sponsorship program where sponsors (typically in the US) would pay a monthly fee to sponsor a child so that the child would have basic needs (food, health, etc) provided.

In 1951, the name was changed to the Christian Childrens Fund when the program expanded to other countries.  In 2002, the Christian Childrens Fund along with 11 other child sponsorship organizations founded a worldwide network – the ChildFund Alliance, a group of 12 organizations that partner with local organizations in other countries.  In 2009, the Christian Childrens Fund changed its name to ChildFund International.

ChildFund International USA (ChildFund) is one of those 12 organizations that partners with local organizations in 24 countries to provide children with basic needs. Advertisements to sponsor a child for $39 a month (or “about $1 a day”) or $468 a year are used to raise funds for the organization.  If you’ve ever wondered how much of that $39 per month goes to a child, the answer is less than $23 (or less than 59%).

In 2023, ChildFund reported total revenue of $194 million (compared to $200 million in 2022) most of which came from contributions, gifts and grants.  Expenses totaled $186 million (not including $4 million in depreciation) categorized as follows;

• $115 million (59% of revenue):  Grants (primarily overseas)
• $ 34 million (17% of revenue):  Compensation
• $ 23 million (12% of revenue):  Fees for Services (primarily fundraising)
• $  6 million (3% of revenue):  Office-Related Expenses
• $  3 million (2% of revenue):  Other Expenses (i.e.payments to affiliates, etc)
• $  3 million (2% of revenue):  Advertising and Promotion
• $  2 million (1% of revenue):  Travel and Conferences

As illustrated above, grants is the largest expense.  These funds are provided to local organizations in other countries, who develop programs in local communities that include food, healthcare, and development.

The second largest expense is compensation for the 254 employees of ChildFund who received $34 million, or an average of $134,000 each in 2023.  However only 53 employees received more than $100,000 in compensation.

Fees for Services is primarily fundraising fees which includes professional fundraising fees.  Fundraisers were credited with bringing in $19 million in revenue but retained $15 million netting ChildFund $4 million.

So, if you donated $39 per month to ChildFund in 2023, your donation was spent as follows:

 $39:  Revenue

-$23:  Grants (to partner organizations)

$ 16:  Revenue Remaining

-$  7:  Compensation

-$  5:  Fees for Services

-$  1:  Office-Related Expenses

-$  1:  Other Expenses

-$  1  Advertising and Promotion, Travel and Conferences 

-$ 15:  Subtotal: Compensation, Fees for Services, Office, Other, Advertising, Travel

$  1:  Revenue Remaining (4%):  To General Fund

As illustrated above, $23 of the $39 monthly donation was given to partner organizations in other countries.  These organizations must cover their costs and then use the proceeds to help the children so less than $23 of goes directly to help the children.  $15 of the $39 was used to pay for administrative, general, and fundraising costs of ChildFund.  $1 out of $39 was not spent and allocated to the general fund (think savings account).

To read the IRS Form 990 (2022 for the year ending June 30, 2023), click here.