2013 /14 Compassion Australia Standard of Reporting Compassion Australia ABN 67 001 692 566 is a public company limited by Compassion Australia was pleased to be recognised as one of 10 finalists guarantee incorporated under the Corporations Act. Its registered office is in the revenue greater than $30m category in the 2013 PwC Transparency located at 30 Warabrook Boulevard, Warabrook NSW 2304. Awards for the quality and transparency of our reporting.

Compassion’s annual report is a publication of Compassion Australia. All Compassion Australia’s Annual Report 2013 also won a Silver Award in the photos are © of Compassion Australia unless otherwise stated and may be Australasian Reporting Awards, run by Australasian Reporting Awards Limited. reproduced with permission from Compassion Australia.

All scripture quotations are taken from the New International Version.

ESTABLISHED 1950 Fundraising Compassion Australia is an active member of Fundraising Institute Australia (FIA). As an FIA Organisational Member, Compassion Australia is a signatory to the FIA’s Principles and Standards of Fundraising Practice, and therefore upholds the highest ethical and professional standards for fundraising. Contents

Chairman of the Board Message 1

Chief Executive Officer Message 2

2014 Highlights 3

Introducing Compassion 4 About Us 5

Why We Exist 8

How We Work 10

Who We Work With 11

Where We Work 13

Child Survival Program 15

Child Sponsorship Program 17

Leadership Development Program 19

Critical Interventions 21

Church Engagement 24

Indigenous Initiative 25

Compassion Partnerships 27

Where We Are Now 30 Current Environment 31

Sustainability 33

Child Sponsorship Trends 35

Our People 37 The Board and Governance 38

Leadership 43

Organisation Structure 44 Our Workplace 46

Strategy, Performance and Financial Position 49 Ministry Goals 50

How Our Ministry Initiatives Performed in 2014 53

Compassion’s Scorecard 63

From the Finance Director 65

Board Declaration 66

Source of Funds 67

Sponsorships and Beneficiaries 69

Program Performance 71

Income Statement 75

Key Performance 77

Balance Sheet and Fund Movements 79

Independent Auditor’s Report 82

Glossary of Terms 83 Compassion Australia 1 Message oftheBoardChairman processes are fit for purposeandthatweare stewarding our resources well. Core Processes withTechnology initiative (TCPT), wewillensure our and refining ourprocesses through the Global Compassion Transforming Revolutionise systems andprocesses: By embracing newtechnologies processes, wewillconsolidate ourcurrent supporter base. current supporters andcementingourrelationship servicing peopleand Delight andretain existing supporters: By deepeningengagement with our digital presence, wewillbroaden oursupporter base. Christian youth andparticular church denominations,andby enhancing supporter groups whohave notyet partnered withCompassion, suchas Acquire andengagenewsupporters: By andreaching identifying outto information aboutthese foundational goals (called bigrocks), seepage 61. systems andprocesses; anddevelop peopleandculture. For more and engage newsupporters; delightandretain supporters; revolutionise identified four ‘big rocks’ uponwhich we willbuildgood results: acquire in buildingtheministry’s capacity beginto produce goodfruit.We have to beanexciting timefor Compassion as weseemuchofourhard work Phase 2:Transition to Growth willbegininfinancial year 2015.Itpromises Forward toNextLooking Year reach andengage potential supporters andsponsors. our momentumby refining systems andcreating more opportunities to move into Phase 2:Transition to Growth, it’s important thatwemaintain initiatives for the2014 financial year can be found on page 53. As we foundation for growth inthecoming years. Theresults ofourministry our systems andprocesses, recruit andbuildasturdy andequipstaff our strategy. TheaimofPhase 1:BuildingCapacity was to strengthen It was also avery important one,as wecompleted thefirst phase of families from benefitting ourprograms grow by 1.43percent. revenue rise by almost$4millionandthenumberofchildren and Financial year 2014 was anotherencouraging year: wesaw overall and accepted responsibility to ourchild-focused, serve local church-based, Christ-centred ministry. Child Sponsorship Developmentour Child Survival, and Leadership programs. It isthe Board’s immenseprivilege now able to 103,751 babiesand their serve caregivers, children, students and young adultsaround the world through contributions this financial year. With their faithful andextraordinarily generous support, Compassion Australia is Compassion Advocate, supporter, donor, church partner, business, volunteer andstaff memberfor their effortsand Once againit’s my great privilege to, onbehalf ofthe Compassion Australia Board ofDirectors, thank every Chairman oftheBoard John Bond bright—for Compassion andthe1.6millionchildren weserve. I can declare thattheBoard believes wholeheartedly, thefuture is 75,000 supporters ofCompassion Australia andthegrace ofGod.Happily, We continue to begreatly blessed by thestrong supportofmore than as wegrow. are endeavouring to bewellplacedto change even more children’s lives and willalways beto release children from poverty inJesus’ nameso we Phase 2:Transition to Growth infinancial year 2015.Ourgoalhas been our momentumas aministry willcontinue to pickupas wemove into By buildinguponthese four foundations (bigrocks), we are confident that volunteers, wewillseeaministry-wide impact. culture, andtransforming thehearts ofoursupporters, and staff Develop peopleandculture: By creating alearning andreflective Message Chief Executive Officer In suchamomentous year, highlights have beeneasy to find. continue to serve even more children livinginpoverty. details—the BuildingCapacity phase sees us wellplacedto grow and improve systems inPhase 2:Transition to Growth—see page 59for more Technology initiative (TCPT) remains themainvehicle by whichwewill While ourGlobalCompassion Transforming Core Processes with you can read abouttheresults ofthese initiatives onpage 53. order to move smoothly, weknewourministry initiatives were crucial, and developing peopleinpreparation for thenext phase ofourstrategy. In as wefocussed onbuildingandimproving processes, systems and privilege to lead anddedicated suchagifted team andvolunteers ofstaff 2020 Vision. ‘SimplicityandPassion’ was ourcatch-cry, anditwas a Financial year 2014 was thelast intheBuildingCapacity phase ofour true bedrock onwhichourorganisation is built. steadfast commitment andGod’s grace form agreat partnership andthe inevitable challenges andchanges, weknow thatoursupporters’ In themany successes wehave seenthis year, andinthemidst of world’s mostvulnerable: children living inpoverty. generous and selfless ways that Compassion supporters across Australia have madea difference in the lives of the What anamazingand humbling year this onehasbeen. Again seenandheard and again,I’ve ofthe incredibly • • • • cause to celebrate. than 40,000sponsorships—and counting. This year again was truly Hillsong Church; internationally, thatpartnership has realised more This year marked 15years ofpartnership between Compassion and supporters, saw more than$8million processed. sponsorship contributions andthegenerous givingofsponsors and critical infrastructure for children inneed,additionto regular Year Appeal thatfocussed onbuildingclassrooms, homes andother Australia’s history, interms ofrevenue. Asuccessful EndofFinancial In addition,June2014 was thebiggest monthinCompassion to generosity thewonderful oftheCompassion Australia family. exceed $70millionfor thefirst time,which is another testament You willread later inthis report thatthis past year saw our revenue for them.More aboutPhase 2:Transition to Growth onpage 52. us inthenewfinancial year—we wanted to planandprepare well Transition to Growth. Anewadventure andnewopportunities await In March ourManagement Team took timeto prepare for Phase 2: partnerships andengaging current supporters atadeeperlevel. have beencritical to thesuccessful establishment ofmany newchurch local churches across thecountry. Passionate, well-resourced staff joiningouroffices inorderstaff to strengthen our partnerships with Our regional staffing model continued to develop, with some new Chief Executive Officer Tim Hanna love to each ofus—particularly vulnerable children livingin poverty. Most ofall,Iamthankfulto God,whocontinues to show His grace and and Advocates, whotirelessly andselflessly speak up for children inneed. whoconsistentlyour staff bring theirbest to efforts work;by ourvolunteers humbled by oursupporters, whocontinue to give even indifficulttimes; by As Ilookbackonourbiggest revenue year yet, Ican only bethankful.I’m contributions to Compassion Australia. moved onto anewchapter oflife. We for allhis valuable thankJeff almost 10years offaithful serviceandinsightful inputinto theministry, We also saidafond farewell to ourCOO Nagle this year, Jeff who, after and withthechildren they are sponsoring. potential supporters onto adeeperlevel ofengagement withCompassion relationships withchurches across thenation,andencourage current and year; afact whichemphasises theneedto continue to explore new Our sponsorship growth rate was below ourdesired range this financial poverty. You can read more aboutthechangedsponsorship rate onpage 56. everyday Australians who, above all,want to seechildren released from overlook ortake for granted. We really are blessed by the commitment of positively; many give sacrificially, andthis is not something we can ever In trueCompassion style,oursponsors andsupporters responded countries where weworkto continue to provide qualitycare for children. toour efforts meetrising costs bothinAustralia andespecially inthe month from to $44 $48from 2014. January This wouldprove critical to we asked oursponsors to theircontribution consider amounteach lifting After five years withnochanges to oursponsorship rate, this past year • families andcommunities. firsthand thedifference it is makinginthelives ofthechildren, their again Iwas ableto seetheprogram ontheground andexperience This past year Itravelled to Ethiopia, Rwanda andGuatemala where

Annual Report 2 Compassion Australia 3 2014 Highlights from financial year 2014. foundational improvements that build capacity to enable future growth. Here are justafew ofthe highlights initiatives thatBy implementing ministry alignwith ourstrategic goals, Compassion Australia hasdeveloped this phase, financial year 2015 will see Compassion Australia move into Phase2: Transition to Growth. bearing much fruitforthe ofGod.(Compassion’s glory full strategy can be found from page50.) After finishing Compassion Australia’s strategy to achieve Compassion International’s 2020 Vision ofbearinggood fruitand Financial year 2014 was Compassion Australia’s final year in the Building Capacity phase. This phase ispartof Development studentssponsored child sponsorships grewchild by 1644, almost $2.2milliontohelpgive e Christmas Appeal raised e Christmas every Compassion sponsored every e numberofLeadership from 99,352to100,996. e total number of new e totalnumberofnew by Australians was177. child a Christmas gift. aChristmas child through Compassion International, 1.6 million*children are supported more than100,000by Australians. e program now inall operates raised $1.1milliontoprovideraised opened in ve new countries.opened in ve new 26 eld countries worldwide. 26 eldcountries e Child Survival Program e ChildSurvival e Compassion Appeal buildings for kids. buildings for from Australian sponsors tosponsored a 5.69percentincrease from lastyear. hitting the Philippines inNovember hitting thePhilippines $72 millioninrevenue andsupport, A totalof162,825letterswere sent 2013, Compassion Australia raised $679,000 indisasterrelief funds. In response to Typhoon Haiyan * Number of children registered in Compassion’s programs Compassion’s in registered children of Number * Compassion atotalof achieved children around theworld.

* Number of children registered in Compassion’s programs Compassion’s in registered children of Number *

Annual Report 4 Compassion Australia 5 About Us ** Number of children registered in Compassion’s programs Compassion’s in registered children of Number ** * Pareto Fundraising, 2014 Fundraising, Pareto * through Compassion Australia. beneficiaries are supported by more than75,000 Australian sponsors in poverty around theglobe.As ofJune2014, more than103,751 supporting 100,000children, caregivers, babies andstudents living On 21August 2012,Compassion Australia achieved a10-year goal: more than12international partner countries. caregivers, babies andstudents in26developing countries through Today, Compassion is transforming thelives of1.6 million children, children by 1998, 500,000in2003andeventually onemillionin2009. The ministry ofCompassion International grew to 250,000sponsored home withthesponsorship ofasinglechild. Compassion Australia started inLaurie andOlive McCowan’s Newcastle countries withmore than25,000sponsored children. Two years later, By 1975, Compassion International hadexpanded to 17otherdeveloping at thetime,Swanson SouthKorea left promising to helpthechildren. Korean War dyinginthestreets. Although hewas ministering to troops Everett Swanson’s heart was broken atseeingchildren orphanedby the Compassion International started in1952 whenAmerican evangelist History Prayer, Relationships, Advocacy, Integrity, Stewardship andExcellence. Values and inspire theChurch to release children from poverty inJesus’ name. Compassion exists as anadvocate for children—to partner with,equip Mission children from poverty inJesus’ name. Transformation oflives, communities andnationsthrough releasing Vision physical development of1.6**million children living inpoverty worldwide. committed to working inpartnership with local churches to foster the spiritual, economic, socio-emotionaland countries, Compassion Australia isaChristian holistic child development andchild advocacy ministry. We are As partofCompassion International, aglobal network ofmore than 12funding countries and26developing fundraising charity in Australia*. Compassion isoneof Australia’s biggest international child development organisations and the fourth largest

these are fundedfrom othersources like Sponsorship PLUS and We donotuse childsponsorship funds for otherdevelopment activities; allocated for administration andfundraising costs. for eacha gift Compassion assisted childatChristmas; 10percentis per centoffunds donated to theChristmas Appeal are pooledto purchase the children and/orfamilies inthepurchase ofappropriate goods. Ninety Compassion to thechilddevelopment centre, where members assist staff One hundred percentofchild,family andcentre are gifts sentthrough fundraising costs inAustralia. Approximately 20percentis allocated to cover alladministration and Approximately 80percentofdonationsto Compassion is used: since wewere established in1977. The 80/20financial splithas been Compassion Australia’s benchmark ofDonationsAllocation 2010 2014 Critical Interventions. • • • • PER CENTOFFUNDS USEDFOR ADMINISTRATION ANDFUNDRAISING 2011 2012 2013 For community education inAustralia sponsored children To facilitate sponsors’ personal relationships withtheir of thechildren inourprograms For thepurchase ofgoods andservices for thedirect benefit For thedevelopment, delivery andsupervision ofprograms

20.33% 20.50% 20.27% 20.07% 19.51%

by more than12partner countries, including Australia, known as the Compassion’s GlobalDevelopment Model corporate services, includingtheoversight ofallchilddevelopment standards ofstewardship anduse oftheCompassion brand. Shared but adheres to a globalcovenant agreement onastatement offaith, Each memberoftheGlobalPartner Alliance operates as aseparate entity and Ireland. (For more onwhere wework,seepage 13.) and TEARFund NewZealand. Satellite offices are also operating inSpain Compassion UK,Compassion USA, Compassion Scandinavia, SELFrance Netherlands, Compassion SouthKorea, Compassion Switzerland, Canada, Compassion Germany, Compassion Italy, Compassion Alliance, whichis comprised ofCompassion Australia, Compassion comes from over 12partner countries, known as theGlobalPartner to serve 1.6millionchildren livinginpoverty. Thefundingfor this work Compassion International worksinmore than26developing nations consecutive year, placinginthetop onepercentofnon-profits*. received a4-out-of-4star rating for UScharities for the13th In 2014, ouroverarching organisation, Compassion International, Compassion Internationally Compassion’s ministry is funded Global Partner Alliance. Partner Countries programs are managed by Compassion Ministry Centre inColorado Springs, International, located atourGlobal Compassion’s childdevelopment Global Ministry Centre Global Ministry Colorado, USA. each developing country where

Compassion workscultivates The mainofficelocated in

local relationships. Country Office Country for providing information thatis used for reporting to supporters. also accountable for thefunds thatCompassion provides andis responsible contextualise theinterventions they provide as needed.Thelocal church is church committee. They receive curriculum supportfrom Compassion but church’s ministry andare overseen by thepastor, centre director and a community’s change.Childdevelopment centres become part ofthelocal congregations indeveloping countries are thecatalyst for theirown with local churches inthedeveloping world.This ensures thatlocal to implementCompassion’s childdevelopment modelinpartnership Staff attheGlobalMinistry Centre liaise inpartner country offices with staff Ministry Centre inColorado Springs, Colorado, USA. programs, are managed by Compassion International atourGlobal * According to Charity Navigator—the largest charity evaluator in the US. the in evaluator charity largest Navigator—the Charity to According * model is implemented inpartnership with over 6500local churches in26 Compassion’s childdevelopment

developing countries. Local Churches Local Child Survival, ChildSponsorship, approach through four programs: Compassion sees holistic child Leadership Development and development as along-term Critical Interventions. Programs

Annual Report 6 Compassion Australia 7 This is an international program snapshot at 30 June 2014. June 30 at snapshot program international an is This to jointly implementourholistic childdevelopment programs. We believe thelocal church is thebest vehicle for humanandsocietal development, so Compassion partners withlocal churches around theworld International Program Results Each church partner is responsible for a child development centre that delivers Compassion’s Child Sponsorship Program. Sponsorship Child Compassion’s delivers that centre development child a for responsible is partner church Each Registered children also includes those who are not yet sponsored but are already receiving the benefits of the program. the of benefits the receiving already are but sponsored yet not are who those includes also children Registered Leadership students are graduates of Compassion’s Child Sponsorship Program who are now completing university and leadership training. leadership and university completing now are who Program Sponsorship Child Compassion’s of graduates are students Leadership The average number of mothers registered in each Child Survival Centre is 35. These centres operate in partnership with local churches. local with partnership in operate centres These 35. is Centre Survival Child each in registered mothers of number average The TOTAL Peru (est. 1980) Nicaragua (est. 2002) Mexico (est. 1980) Honduras (est. 1974) Haiti (est. 1968) Guatemala (est. 1980) El Salvador (est. 1977) Ecuador (est. 1974) Dominican Republic (est. 1970) Colombia (est. 1974) Brazil (est. 1975) Bolivia (est. 1975) TOTAL Thailand (est. 1970) Sri Lanka (est. 2009) Philippines (est. 1972) Indonesia (est. 1968) India (est. 1968) East Indonesia (est. 2005) East India (est. 2002) Bangladesh (est. 2003) TOTAL Uganda (est. 1980) Togo (est. 2007) Tanzania (est. 1999) Rwanda (est. 1979) Kenya (est. 1980) Ghana (est. 2004) Ethiopia (est. 1993) Burkina Faso (est. 2004) CENTRAL/SOUTH AMERICA ASIA AFRICA 165 CHURCH PARTNERS CHURCH PARTNERS CHURCH PARTNERS 1896 2160 2458 640,151 242 151 187 202 275 200 224 240 178 204 216 340 335 316 222 254 153 324 100 304 273 359 215 390 190 195 60 REGISTERED CHILDREN REGISTERED CHILDREN REGISTERED CHILDREN 535,203 389,814 60,017 43,090 32,966 65,187 36,570 66,653 35,308 70,068 62,691 60,615 83,092 22,672 71,804 95,312 52,226 50,698 50,036 79,882 46,337 49,656 62,019 43,755 35,419 69,525 74,384 89,874 47,738 7,574 LEADERSHIP STUDENTS LEADERSHIP STUDENTS LEADERSHIP STUDENTS 1034 1351 157 129 104 155 104 102 169 154 318 307 118 232 141 143 752 199 138 195 85 49 20 79 39 ------CHILD SURVIVAL CENTRES CHILD SURVIVAL CENTRES CHILD SURVIVAL CENTRES 203 215 296 66 42 27 41 20 20 40 21 20 50 50 60 48 28 30 26 17 36 19 6 6 6 6 5 6 6 6 6 Why WeWhy Exist access to clean water andtoilets. development andtheirabilityto reach theirfullpotential, including aim to remove any obstacles thatstand intheway ofachild’s healthy of sanitation and poor hygiene.CriticalpageInterventions Our 21) (see diseases due to unsafe drinking water,diarrhoeal from lack day every this with more than1400 children underfive years olddyingonaverage lacking improved sanitation facilities. Children are greatly by affected countries used improved sanitation in2011—2.5billionpeoplestill sources. Just 36percentofpeopleintheworld’s least developed babies withnutritional support. good health for young children andhelpsprovide mothers, caregivers and combat achildintheirfirst theproblems affect few thatoften years oflife. caregivers andpregnant mothers withpre-natal andpost-natal care to help complications. OurChildSurvival Program (seepage 15)provides mothers, made, thestatistics stillhighlightthestaggering problems. opportunities andhopefor future, abetter andthoughprogress is being and exposes themto abuse andexploitation. Poverty denies children basic health care andeducation, weakens achild’s protective environment and impaired physical andmental development. Itdenies children access to For children, poverty can becrippling. Itcan cause illness, chronic malnutrition (For more onhow wework,seepage 10.) addresses spiritual, socio-emotional, economic andphysical poverty. possible. We believe addressing poverty requires aholistic response that chance for future abetter future ornotbelievingthatabetter is even $2 perday so thatyou can’t afford food orsafe water; beingdeniedthe God-given potential. To putitsimply, poverty means livingonless than deficiency ofinternal assets thatprevent aperson from realising their deprivation ofbasic humanneeds, thedenial of opportunities andthe Compassion defines poverty as a condition characterised by the families who are living inpoverty—regardless oftheir beliefs, genderorbackground. Compassion isaChristian child development that ismotivated ministry by ourfaith to assist children andtheir meaning 768millionpeoplestillused unsafe drinking water developed countries used improved drinking water sources, In 2011,65percentofthepopulationinworld’s least repeated infections. OurChildSurvival Program worksto secure were estimated to bestunted, mostly dueto poornutrition and Globally in2012,162millionchildren underfive years old or treatable causes suchas pneumonia, diarrhoea andbirth five. More thanhalfofthese deaths were due to preventable In 2012,6.6millionchildren diedbefore reaching theage of

and nations. steady employmentandpromote changewithintheirown communities university andbeequippedwithleadership skills thatmay helpthemgain Development Program (seepage 19) assists young adults to complete is approximately halfofthe$1.25perday poverty line.OurLeadership development. nutritional meals whennecessary, as part ofa holistic approach to child Program (seepage 17)provides children withphysical support,including prevention activities, like mosquito nets, to combat malaria. for children to continue beingreleased from poverty, includingusing Development Program (seepage 19). and leadershipLeadership skills, to continue to university through our of theChildSponsorship Program, whodemonstrate distinct academic ability uniforms whenrequired. Inaddition,Compassion encourages graduates school,helpingparentsattending to purchase schoolbooks,pensand school. OurChildSponsorship Program (seepage 17)assists children in with just 36percentofboys and30percentofgirls enrolled insecondary worldwide. Thestatistics are even lower intheleast developed countries where theaverage income ofthoselivinginextreme poverty population livinginextreme poverty is insub-Saharan Africa, In 2013, TheWorld Bank reported thatone-third oftheworld’s developing world’s population.OurChildSponsorship countries were undernourished—14.9 percentofthe Between 2010and2012,852millionpeopleindeveloping Our Critical Interventions (seepage 21)provide support approximately 627,000 deaths, mostly amongAfrican children. In 2012,there were about207millionmalaria cases leading to girls ofsecondary schoolage are enrolled insecondary school school.Onlyattend 64percentofboys and61percentof In 2011,57millionprimary school-aged children didn’t

Annual Report 8 Compassion Australia 9 international development organisations suchas Compassion. Great progress has beenmadeinthelast few decades withthehelpof Making progress • • • • • decreased by 49percent. even more so inAfrica amongstchildren where deaths have Malaria mortality rates have decreased by 42percentsince2000, Nearly 1.9billionpeoplehave gainedaccess to improved sanitation. in 1990 to 81percentin2011. rate intheleast developed countries improving from 53percent Primary schoolenrolment has increased withtheschooladmission in nutrition. Stunting has decreased by 37 percentdueto improvements 17,000 fewer children diedeach day in2012than1990. The globalunder-five mortality rate has almosthalved, meaning

(See Compassion’s vision andmission onpage 5.) and seeingmore andmore children released from poverty worldwide. In response to God’s call, Compassion is dedicated to caring for thepoor and there were still1.2billionpeoplelivinginextreme poverty in2013. years oldstilldieevery day, many dueto preventable ortreatable causes poverty, there is stillmore to bedone.About 18,000children underfive While weare seeingincreasing numbers from ofpeoplebeinglifted How We Work Program, andCritical Interventions—work together to ensure each child’s holistic needs are met. Compassion’s fourprograms—Child Program, Survival Child Sponsorship Program, Development Leadership is along-term approach that starts even before achild isbornandcontinues through school ageandbeyond. life: spiritually, economically, socio-emotionally and physically. Compassion believes holistic child development Holistic child development takes achild through aprocess ofgrowth andfulfilment inall dimensions of their Compassion’s development modelhasthree holisticchild distinctives: key Every childhas anopportunity life-changing gospelmessage in aculturally relevant way. to hear andrespond to the Christ-centred Womb Program Survival Child Critical Interventions -3 years

socio-emotional andphysical poverty. as acomplete individual,releasing Our ministry engages each child them from spiritual, economic, 3 Program Sponsorship Child -22 years Child-focused As neededacross Compassion’s programs

18 Program Development Leadership Our programs are runexclusively + years + by ourChurch Partners inthe children’s communities. Church-based

Annual Report 10 Compassion Australia 11 Who WeWho Work With Compassion’s mission. of the world. Compassion Australia strongly values itsstakeholders, who are integral to the outworking of strategic, sustainable and effective way to make asignificant and lastingimpactin poverty-affected regions year 2014 this included businesses, corporations, community groups, ambassadors, and fundraisers to offer a Compassion works with individuals and groups inavariety ofways to release children from poverty. In financial Ambassadors and Community Children and Children and Page 27 Corporate Sponsored Caregivers Partners Page 15, 17 Page 29

Fundraisers Suppliers Page 29 Compassion Field Staff Field Staff Churches Page 24

COMPASSION STAKEHOLDERS of Directors Advocates Page 38 Page 27 Board Board

International Compassion Supporters Individual Individual Page 31 Page 6 Compassion Australia Staff in Staff in Page 43 Media Page 29

Program Students

Development Development Leadership Volunteers Page 19 Government Government Page 47 Agencies Page 32 Dami Im, winner of the X Factor in 2013 and a a and 2013 in Factor X the of winner Im, Dami Compassion Ambassador, poses with children she met met she children with poses Ambassador, Compassion at a Compassion child development centre in India. India. in centre development child Compassion a at

Annual Report 12 Compassion Australia 13 IRELAND Where WeWhere Work under thepoverty lineofUS$1.25perday*. Percentage ofthecountry’s populationliving * The World Factbook World The * population percentage living below the poverty line. the presence ofCompassion programs ineach country, butalsothe relative needofthe people, basedonthe programs minister to the needsofindividual children in26developing countries. This mapshows notonly In partnership with over 12funding countries around the world, Compassion Australia’s child development SPAIN FRANCE BURKINA FASO UK 41% andabove 26% to 40% GHANA 7% to 25% NORWAY TOGO ITALY DENMARK RWANDA SWITZERLAND NETHERLANDS GERMANY UGANDA SWEDEN Compassion Australia is oneofover 12 partner countries around theworld. TANZANIA Partner Countries KENYA ETHIOPIA INDIA SRI LANKA

BANGLADESH in 26developing countries around theworld. Compassion’s childdevelopment programs operate Critical Interventions Leadership Development Program ChildSponsorship Program ChildSurvival Program AUSTRALIA THAILAND INDONESIA SOUTH KOREA PHILIPPINES NEW ZEALAND CANADA USA MEXICO GUATEMALA EL SALVADOR NICARAGUA ECUADOR COLOMBIA PERU BOLIVIA

HONDURAS HAITI DOMINICAN REPUBLIC BRAZIL IRELAND SPAIN FRANCE BURKINA FASO UK GHANA NORWAY TOGO ITALY DENMARK RWANDA SWITZERLAND NETHERLANDS GERMANY UGANDA SWEDEN TANZANIA KENYA ETHIOPIA INDIA SRI LANKA BANGLADESH AUSTRALIA THAILAND INDONESIA SOUTH KOREA PHILIPPINES NEW ZEALAND country inwhichitworks. country officeandqualified trainable personnel available in every Administration: Withfew exceptions, Compassion intends to have a Compassion’s workanddemandnofinancial contributions. Government: Thegovernment ofthecountry must beamenableto capita income is $1500p.a.orless orwhere there is definite need. Evidence Compassion ofneed: worksincountries where theper decision-making. God’s direction: We seekGod’s direction inall relationships and a setcriteria: To determine thecountries inwhichwewillwork,Compassion follows CANADA USA MEXICO

GUATEMALA EL SALVADOR special appeals orgrants to meet theneeds ofthechildren. Funding: Compassion must beableto attract fundingthrough sponsorship, positive results inthelives ofchildren can bemeasured andevaluated. Program: Compassion’s programs shouldbeofsufficient duration so that cost-effective programs. assistance, andthecountry’s economic conditions should beconducive to Cost There effective: shouldbelong-term needfor Compassion’s NICARAGUA ECUADOR COLOMBIA PERU BOLIVIA

HONDURAS HAITI DOMINICAN REPUBLIC BRAZIL

Annual Report 14 Compassion Australia 15 Rescuing, anddisciplingbabiestheirmothers nurturing Program Child Survival operates across all 26developing countries Compassion works program in,at714 centres. pregnant mothers, at-risk babies, infants and their mothers orcaregivers. ProgramThe Child Survival now help provide nutritional support,income-generation training, health interventions and HIV/AIDS testing for development duringachild’s first few years oflife. Supporters passionate about arechild survival able to ProgramThe Child Survival works to prevent premature death, promote good health and enable positive Supporting child survival child Supporting They also aimfor acaregiver to be: Program withacurriculum thataimsfor achildto be: In partnership withCompassion, local churches deliver theChildSurvival • • • • • • • • • • information aboutthemothers, caregivers andbabies they support. receive tworeports peryear withspecific, comprehensive Support of$3000permonthfunds anentire centre. Supporters updates peryear abouttheimpact of theirsupport. newsletters peryear, supporters ofaspecificcentre receive two more supporters to fundtheprogram activities. Inadditionto two activities andmuchmore; $29permonthsimply means weneed checkups, education, nutrition, supportgroups, income generation month assists amother/caregiver andtheirbaby withhealth Support of$58or$29permonthhelpsaspecificcentre. $58per program is assisting mothers, caregivers andbabies. two newsletters peryear, whichcontain information abouthow the world. Ongoingsupporters oftheChildSurvival Program receive donationsassistOne-off ChildSurvival Program centres around the Given theopportunityto hear thegospelmessage Motivated withskills to beeconomically self-supporting healthy relationships Self-confident, able to care for thechild’s basic needs, andin Sufficiently healthy to provide for thechild’s wellbeing Eager to experience theirworldandcommunicate theirexperiences Confident andinteracting wellwithothers Physically healthy Number of mothers and babies supported byNumber Australians: ofmothersandbabiessupported Planning for thefuture for Planning • • • YEAR 2012 2013 2014 2011 12 centres over thenext three financial years. need. InSouthEast Asia, Thailandwillprepare to dothesamewith improved, moving theirresources to newcentres inareas ofgreater Child Survival Program centres inareas where poverty levels have In SouthAmerica, Peru andEcuador strategically closed18oftheir financial year 2015,otherfield countries willdothesame. Child Survival Program centres over to this newmodel.From Bolivia was thefirst country to finish transitioning their existing model, where sponsorship ofchildren beginsatage one. opened theirChildSurvival Programs using Compassion’s new In linewithCompassion’s future strategy, each ofthese countries Nicaragua andTogo beingthefinal countries to opentheprogram. Compassion’s field countries, withBrazil, Guatemala, Honduras, As 2014, ofJanuary theChildSurvival Program operates inallof CAREGIVERS

2610 2757 2578 2423 CHILDREN 2521 2691 2511 2268 TOTAL 5448 5089 4691 5131 Somiya, outside her home in East India. India. East in home her son, outside two-year-old Somiya, her bathes Gauri his illness. Sadly, hedidn’tsurvive. her husband took himto doctor doctor, after butno-onecould diagnose strong andGauri’s fears lessened. Then he,too, fell sick.Frantic, Gauri and year later. Shegave birthto anotherboy. As themonthswentby, hegrew Grief-stricken, Gauri was afraid whenshelearnt shewas pregnant one month ofage, Gauri’s son passed away inhospital, right before hereyes. a highfever. Doctors diagnosed himwithneonatal tetanus. At just one was born was atimeofjoyandcelebration. Thenherbaby developed childcare, butwas excited to become amother. boy Themonthherlittle years later, Gauri fell pregnant. aboutpregnancy Sheknewlittle and could nolongersupportherandarranged for Gauri to bemarried. Two struggled to provide for theirchildren. WhenGauri was 14, herparents Gauri grew upinaslum inEast India. Herparents’ low income meant they Hope after heartache Hope after

in hercommunity, givinghopeto others. painful past. Sheshares whatshelearns intheprogram withthemothers old. Withcounselling from theprogram staff, Gauri is recovering from her developmental milestones. Today, heis ahappy andhealthy twoyear He receives regular checkupsattheprogram centre andis reaching his throughout herpregnancy, Gauri gave birthto ahealthy boy, Somiya. Supported practically andemotionally by theChildSurvival Program conceived again, shecontacted theprogram. program gave thewomanandherchildlife-saving support.WhenGauri a motherenrolled intheChildSurvival Program. Sheheard how the consumed her. Untiloneevening when,whilefetching water, shemet After losinghertwosons, Gauri withdrew from society as depression

Annual Report 16 Compassion Australia 17 ProgramChild Sponsorship Sponsorship Program. at least onecritical intervention during theirtimeinCompassion’s Child Critical Interventions, see page 21.All registered children willbenefitfrom per monthis used for Critical Interventions. For more information about month, or$60permonthfor Sponsorship PLUS, where theadditional$12 As aresult, from October 2013 therate for anewsponsorship is $48per for children. and thecountries where weworkwhilecontinuing to provide qualitycare 2014. Themove was critical for us to meetrising costs bothinAustralia theirmonthly contributionconsider lifting from to $44 $48from January For thefirst timeinfive years, Compassion Australia asked oursponsors to circumstances. from theprogram ordepart theprogram early dueto changes inpersonal sponsored child’s circumstances change—suchas ifthey graduate child every twoyears. They willalso receive notification whentheir centre. Sponsors receive anupdated profile andphoto oftheirsponsored per year, plus from aletter someone involved inthechild’s Compassion A sponsor willreceive atleast twoletters from theirsponsored child why Compassion encourages sponsors to write to theirsponsored child. their faith, develop self-confidence anddream big for theirfuture. That’s they are loved andsupported by theirsponsor, itwillhelpthemgrow in A sponsor’s role inthelife oftheirsponsored childis vital. Ifachildknows achild Sponsoring child to be: deliver theChildSponsorship Program withacurriculum thataimsfor a In partnership withCompassion, local churches indeveloping countries their nation. equipping children to transform theirlife, community, andmaybe even By beinganactive part ofachild’s life through sponsorship, sponsors are from the gripsofpoverty. them. All ofthis and more equates to abright future sothat they, and eventually their own children, can live free chance to seeadoctor when they’re sick, access to education and the chance to discover Jesus’ incredible love for in poverty. For achild, Compassion child sponsorship works by providing safe places to play and laugh, the Compassion’s Child Sponsorship Program gives people the opportunityto connect with anindividual child living Developing, disciplingandequippingchildren life for • • • • sensitive andrelevant way Given theopportunityto hear thegospelmessage inaculturally Able to interact withothers inahealthy andcompassionate manner Motivated withskills to beeconomically self-supporting their health Physically healthy andequippedto make gooddecisions about

2014 ProgramSponsorship attheendoffinancial year: Number ofchildren sponsored by Australians intheChild Planning for thefuture for Planning 2011 • • • YEAR 2013 2012 children to besponsored. centres willlower theage ofchildregistration, allowing younger In thecoming years, anincreasing numberofchilddevelopment sponsored childandtheirdevelopment centre. to provide supporters with timely, specificinformation abouttheir countries Compassion worksin,wewillcontinue to lookfor ways As technology changes andimproves, bothinAustralia andthe meet thegreater need. resources from urbancentres to smaller, rural communities to countries inSouthAmerica suchas Brazil beganmoving their opened inareas ofgreater need.Infinancial year 2014, field poverty levels have improved. This allows newcentres to be be strategically phased outandeventually closedinareas where needs, childdevelopment centres insome field countries will In order to continue to supportchildren withthegreatest

100,996 TOTAL 93,099 96,405 99,352

school, Julius loves to read. read. to loves Julius to start school, late his Despite particularly whenthedrought theirharvest. affected nine people.Theboys were wellloved butthefamily struggledfinancially, know whatto do. Anuncleadopted thetwoboys, whichgrew his family to his best shepassed efforts, away. Grief-stricken andalone,Julius didn’t nearby, Julius cared for Josephandhis grandma as best hecould. Despite His grandma fell illandwas soon bedridden. Withnocloserelatives hotel rubbish bins. through garbage heaps for leftover scraps andscavenging food from Hunger pains were Julius’s constant companion. Hebeganrummaging struggled to putfood onthetable for hertwogrowing grandsons. Kenyan community as afarm labourer, buthersmallwage meant she his younger brother, Joseph,in.Theirgrandma worked hard intheir When theirmotherdied,Julius’s grandma took theseven-year-old and Giving children hopeandlove

excited to enrol inschoolattheage ofninefor thevery first time. much-needed medical treatment his after years ofhard living.Hewas immediately sentthefamily food parcels andwater filters. Julius received Help came just intime.Julius was sponsored through Compassion, who of himandIcan’t wait to seeitcome to pass.” is proud ofhow far theyoung boyhas come. “Hehas agreat future ahead Compassion centre. Petronila, Julius’s teacher attheCompassion centre, confident. Heloves participating inthechoiranddancegroups atthe program. Onceshy andsmallfor his age, Julius is now healthy and has brought outthebest inJulius, whois thriving inCompassion’s Their uncletreats Julius andJosephas his own sons. His love andsupport shoes anduniformwhich Ireceived from the program.” “I was happy to joinschool,” Julius says. “Iwore my new

Annual Report 18 Compassion Australia 19 Educating, leaders anddisciplingservant training Development ProgramLeadership Supporting leadership development Supporting them. TheLeadership Development Program aimsfor astudentto be: graduates are already making significant, positive change in theworldaround alongside theiruniversity studies. Thanksto this training, Leadership sponsor—a studentreceives Christian leadership training andmentoring Through theprogram—and supportandencouragement from their leadership skills and awillingness to serve. selected according to strict criteria that includes academic achievement, Christian commitment, demonstrated the Development Leadership Program opensthe door forfurther formal education atuniversity. Students are to their families andcommunities. Butforthose with exceptional academic andChristian leadership potential, All children who have graduated from the Child Sponsorship Program are empowered with life skills to give back • • • • • • • sponsored student’s progress andaphoto. do thesameinreturn. Sponsors receive anannualupdate oftheir letters each year to theirsponsor, anditis ourhopethesponsor will training andmentoring. ALeadership studentwrites atleast two and resources, room andboard ifnecessary, Christian leadership Sponsors contribute $400permonth,covering university fees, books who are awaiting sponsorship. to gifts theLeadershipOne-off Development Program assist those tax deductible. be Christian to enter theprogram, so to gifts this program are not orregular gifts givingthroughone-off sponsorship. Students must Support oftheLeadership Development Program can bethrough An example ofChristian servant leadership Displaying positive self-worthand healthy relationships self-supporting Equipped withpersonal andprofessional skills to beeconomically Physically healthy andmakinggooddecisions abouttheirhealth 2014 Development Program attheendoffinancial year. Number ofstudentssponsored by Australians intheLeadership Planning for thefuture for Planning 2011 • • • • • • 2012 2013 YEAR career oftheirchoosing. dreams andapply theirindividualinterests andpassions to a should give sponsored children the opportunityto explore their whattheyNo matter pursue, ouryouth development strategies ministry training. choose to university, attend whileothers may receive vocational or development plansfor each childinourprogram—some may The youth development strategies willprovide customised communities andrealise theirGod-given potential. their individualcareer goals, become productive members oftheir equip allchildren withtheskills andeducation they needto pursue incorporate youth development strategies. The strategies will seek to The newmodelwillseeourChildSponsorship Program transition to continue to besupported through to thecompletion oftheirdegrees.) currently enrolled intheLeadership Development Program will the Leadership Development Program from June2014. (Students gradually bephased out,withnonewstudentregistrations into The current modeloftheLeadership Development Program will development model. leadership development is animportant part ofourholistic child similar opportunities to allsponsored children, as webelieve that In financial year 2015andbeyond, Compassion hopes to extend of ChildSponsorship Program graduates. successfully provided life-changing opportunities to aselectnumber For thelast 16years, theLeadership Development Program has TOTAL 177 152 180 110

his past to help others in the future. the in others of help to tragedy the past his using is Jonathan answers, soIwas going to become adoctor.” family inthe samesituation.Iwas goingto beable to give dayIpromised myself“That that there would never bea doctors thatpassed by andnoneofthemhadananswerfor us,” hesays. On theday ofhis father’s death, Jonathanmadeadecision. “Isaw the tea andbread to eat each day. survived onhis singlemother’s income, even ifitmeant havingonly weak father passed away suddenly whenJonathanwas 13 years old.Thefamily children, themedical studentlearnt responsibility atayoung age. His a doctor so hecan helpothers. Growing upinBolivia as theeldest offour After losinghis father to cancer, Jonathanis passionate aboutbecoming Equipping tomorrow’s leaders

and mumalways taught meto helpothers.” always told meit’s to better give thanto receive,” says Jonathan.“Mydad their families healthy. “At the[Compassion] centre andchurch, they Survival Program aboutpreventable childillnesses, helpingthemto keep The aspiring doctor also teaches themothers inCompassion’s Child at thebloodbank,Jonathanrallied over 60peopletogether to donate. hospital, teaching thepatients craft andgames. Whenthere was ashortage others. Heorganises agroup ofstudents to visit thepsychiatric unitata In themeantime, Jonathanis already using whathe’s learnt to serve achieving his dream. The23year oldwillgraduate as adoctor in2016. the helpofLeadership Development Program, heis wellonhis way to became apossibility. Adetermined Jonathanstudiedhard atschool.With When Jonathanwas sponsored withCompassion, dream this far-off

Annual Report 20 Compassion Australia 21 tohealthy development child obstacles Overcoming Interventions Critical Supporting Critical Interventions Critical Supporting include: can Interventions Critical forachildnecessary to continue beingreleased from poverty. capacity ofthese programs. When children face such obstacles, Critical Interventions provides the support in all dimensions ofachild’s life. Butinsomecircumstances, the needsofchildren living inpoverty exceed the Compassion’s Child Sponsorship, Development andLeadership Child Survival programs are holistic; they work • • • • • • • • • • • • interventions around theworld.These donationscan include: donationshelpsupportavarietyRegular ofcritical andone-off finished, explaining how their contribution has been used. Once funded,donors receive acompletion report theproject after is relevant details. wish to fundacritical intervention, they receive aproposal withthe location, local costs, transport, resources andlabour. Ifsupporters The fundingfor each critical intervention varies dueto factors like Vocational training andnon-formal education Education andincome generation for parents Support for registered children not yet sponsored Disaster relief andimprovements to childdevelopment centres Immunisations andmalaria-prevention activities HIV/AIDS initiatives Extra nutritional support Emergency medical care and/orsurgery Clean water andtoilets - - - - Donations to theendoffinancial year Compassion Appeal General donationsto theCritical Interventions Fund Commitment to Sponsorship PLUS Purchases from ofCompassion theGifts catalogue 2011 2014 worldwide: Amount sentfrom Interventions Australia Critical for Planning for thefuture for Planning financial year include: 79. page see Some ofthecritical interventions Compassion Australia fundedthis levels, funding about information more For * YEAR • • 2012 2013 • • • • • • safe buildingsto live, play andlearn in. will bemetin2015,helpingchildren allover theworldto access Appeal, ‘Buildingsfor Kids’, means thatmany infrastructure needs The contributions to our2014 endoffinancial year Compassion implement arange ofCritical Interventions activities worldwide. Over thenext financial year, Compassion Australia will continue to Nutrition education inTanzania Building kitchensinBangladesh Water filters inthePhilippines Solar powered lights inIndia Mosquito nets inKenya breedingCattle inHaiti $5,867,828* $6,438,584 $5,310,530 $6,909,712 TOTAL Children from five communities in East East in communities five from Children Indonesia now enjoy clean, safe water. water. safe clean, enjoy now Indonesia frequent diarrhoea. river. Because ofthis, many children suffered from scabies, ulcers, and and wouldrisk drinking themuddy, stagnant water inthewellor The longdistance meant many families avoided bathingto save water, caused children to belate often to school—ifthey were ableto goatall. walked five kilometres to thenearest spring. The10kilometre round trip If thewells were atthePanorama dry ChildDevelopment Centre, children struggled to putinto practice whatthey were taught. in five communities inEast Indonesia, water was so scarce thatchildren importance ofwashing theirhands anddrinking safe water. However, key part ofCompassion’s curriculum. Children worldwidelearn the this, teaching children aboutlivingahealthy, hygienic lifestyle is a Every 20seconds, achilddies from poorsanitation*. Because of Keeping children healthy

Already, theillness rate has beendramatically reduced amongstthechildren. families wholive around theboreholes now have access to clean, safe water. Over 1000children inCompassion’s program andalmost150additional five communities. Critical Interventions, Compassion installed aborehole wellineach ofthe short-term solution. Imagine thechildren’s excitement when,through Staff purchased water bottled for thechildren, butthis was anexpensive home doesn’t have clean water facilities like thecentre has.” would batheEster’s young sister before wewentbackhome,because our attends Compassion’s program. waiting for “While Ester to learn inclass, I by thepresence oftheboreholes,” says Kristina, whosedaughter Ester Entire families benefitfrom theborehole wells. “I was greatly helped staff memberSarce. their hands andclothes, andto cook with clean water,” says children are“The always reminding their parents to wash * United Nations, Access to Sanitation, 2013 Sanitation, to Access Nations, United *

Annual Report 22 Compassion Australia 23 Church Engagement support Compassion’s holistic childdevelopment program. alongside ourlocal church partners indeveloping communities to that aimsto meettheneeds ofAustralian churches whileworking engagement wentinto theredevelopment. Theendresult is amodel Several years ofresearch, testing, pilotprograms andstakeholder and servicing. delivery ofanupdated modelwithnewmessaging, resources, videos long-term andmutually beneficial. The redevelopment project saw the order to partner withchurches inaway thatis sustainable, In financial year 2014, we redeveloped ourChurch Engagement modelin praying andworkingtogether towards acommon focus. respond to theinjustice ofpoverty onapersonal andcommunal level, churches grow anddeepentheircommitment to thoseinneedas they to theircommunities withincreased capacity andresources. InAustralia, of theworld.Indeveloping world,churches are equippedto reach out Church engagement aimsto mutually transform churches onbothsides in impact. Church’s interests andcapacity, andallows Compassion’s ministry to grow a collaborative andmutually beneficial way that respects the Australian and share thegospelto thenations.We seekto engage withchurches in with Compassion to answerGod’s call for His Church—to serve thepoor Our church engagement modelfacilitates Australian churches partnering 646 to 690nationwide. Compassion Australia has increased by nearly seven percent—from Over thelast 12months,thenumberofchurches connected with mission ofreleasing children from poverty inJesus’ name. Compassion engageswith Australian churches ofavariety ofdenominations to work together to achieve our

is thedirection ithas given his church’s mission activities. For Pastor Hayman, oneofthekey benefits of partnering with Compassion children across thePhilippines andvisits regularly. the lives of79children livinginpoverty. TheGippslandchurch sponsors Church’s decision to engage withCompassion has madeanimpact on together as achurch,” says Pastor Hayman. Seven years later, SaleBaptist that wewanted to dosomething more, something thatwouldbring us wevisited“When thefieldandmetoursponsored children, wejust knew changing experience whenthepastor saw Compassion’s workfirsthand. Robert Hayman’s family holiday to SouthEast Asia turned into alife- greater impact Equipping churches tohave aneven focus onlife.” our church, andthepeoplewithinourchurch, to actually getabigger that partnering withCompassion is oneofthethingsthathave helped and given peopleapractical way to helpthoseinneed.“Ireally think Hayman. Engaging withCompassion has brought thechurch together that it’s notjust oneage butthewholegenerational thing,” says Pastor ages—from 13 to 70—have visited thePhilippines. “It’s exciting to see had aprofound impact. Over theyears, congregation members ofall Seeing inperson thedifference theirchurch is makingoverseas has also and the way we do ministry.” to focusandhave areal intent inthe way we domission “Rather than broad havingavery approach, we’ve beenable our relationship with Compassion,” saysPastor Hayman. way we’ve“The done missions haschanged because of

Annual Report 24 Compassion Australia 25 Indigenous Initiative These are some ofthehighlights from theyear: theirfamiliesin attendance, andthebroader community. been encouraged to seevery positive impacts inthelives ofthechildren participate inprogram activities. Sincetheinitiative started, wehave Currently, upto 35children plus theirparents andcaregivers regularly good foundation for theirfuture learning andeducation. This gives children thebest possible start to a theirschoollife, setting helps children andparents become familiar withtheschoolenvironment. playgroup is heldinaclassroom atthelocal primary school,whichfurther learn schoolbehaviours, like following still.The instructionsandsitting motor skills andbasic literacy andnumeracy skills. Importantly, they also By theplaygroup, attending children develop theirsocial skills, fine children. Itaimsto successfully transition children to primary school. early childhooddevelopment inbothIndigenous andnon-Indigenous a week,theplaygroup, whichis to attached aprimary school,promotes Walker andalocal church to establish aplaygroup. Meetingthree times With this inmind,Compassion partnered withIndigenous teacher Janice presence ofIndigenous teachers andsupport,Indigenous culture*. school, children needapositive initial experience withlearning, the In order for Indigenous Australians to make asuccessful transition to peers right from the start. playgroups, children often struggle when they attend school forthe first time—potentially falling behind their education programs that cater specifically for Indigenous children’s needs. Without such preschools or in June 2009.Like many Indigenous communities throughout Australia, the area haslimited access to early Compassion Australia beganpartneringwith alocal church inanIndigenous community inNorth Queensland • prep onday oneandthey’re ready to learn,” says MsSparkes. Walker to implementtheplaygroup, agreed. “Ourkids are arriving at with others. Former principal Vicki Sparkes, whoworked withJanice academically,better were more engaged, andinteracted better that children theCompassion whoattended program performed increased. Outstanding reports from teachers andprincipals state The numberofchildren successfully transitioning into schoolhas * Dockett S, Mason T & Perry B, 2006 B, Perry & T Mason S, Dockett * • • • • • In March 2014, theIndigenous Initiative was openedto thepublic this topic—broadening theimpact oftheplaygroup. has beeninvited to speak atvarious regional education groups on implementing similarstrategies based on themodel.JaniceWalker the QueenslandDepartment ofEducation, withotherschools The playgroup has beenidentified as asuccessful case study by gotanythey’ve concerns orthey needany help,” says MsSparkes. really comfortable to approach the teachers andtalk to themif lead-up to kindergarten is changingthis. “[Parents are] feeling reluctant to engage withaschool.Attending theplaygroup inthe parents have hadnegative experiences withschoolingandare with theschoolenvironment. MsSparkes says many Indigenous Families andchildren have become more familiar andcomfortable know each otherandmeetingnewfriends each year.” can jointogether,” says parent Allan Sands. “Everyone’s to getting formal opportunities inthecommunity for interaction. “Everyone Indigenous people,withtheplaygroup providing oneoftheonly helping to bridge thesocial gapbetweenIndigenous andnon- theprogramattending has increased. This positive interaction is The numbers ofnon-Indigenous children andtheircaregivers those standardised testings,” says MsSparkes. “We’re seeinghugeimprovement inourNAPLANdata andallof for funding. Children are innationwide assessments. performingbetter

Walker reads to her class. class. her to reads Janice Walker founder Playgroup from theplaygroup andtaking ithome,” says Allan. they’re teaching theyounger ones athomeas well.They’re bringing it whole family benefits from theplaygroup.“When thebiggeronelearns, when they were somewhere,” young, says Allan. Theproud dadsays their higher schoolclasses thantheirpeers. “You can tell thatthey gottaught siblings, bothofwhomgraduated from theplaygroup andare now in far-reaching results. This impact is already clearly seeninBrody’s older before him.For Brody, playgroup is afunoutingwhichhappensto have Brody attends JaniceWalker’s playgroup like his twooldersiblings quickly herson learnt his numbers. Along withhis younger sister, Taylah, count to 20.“Hegave meafright, too,” says Symelia, surprised by how Allan andSymelia’s son Brody is only three years oldbuthecan already Setting the foundation for future thefoundation for success Setting

The playgroup’s success is notlimited to Allan andSymelia’s family. “They want“They [to learn] more andmore.” “As soon as they start learning, thenyou can’t stop them,” says Symelia. the playgroup, shestrongly advocates for early childhoodeducation. this well.Withtwochildren inprimary schoolandtwocurrently attending “playing catch-up thewholetimethrough theirschooling”. Symelia knows Without suchearly childhoodeducation, sheexplains, children can be they’re ready to learn.” Sparkes. “Our kidsare arrivingatprep ondayoneand “I think we’re kicking goals,” saysformerprincipal Vicki

Annual Report 26 Compassion Australia 27 Compassion Partnerships groups ofall shapesand sizes, andare tailored to their unique circumstances, resources and passions. poverty-affected regions of the world. Partnerships are designed forindividuals, organisations and community and foundations to offer astrategic, sustainable andeffective way tomake asignificant and lastingimpactin financial year 2014 this included businesses, corporations, community groups, ambassadors, private family trusts Compassion partners with individuals andgroups inavariety ofways to release children from poverty. In training sessions, educational resources and networkevents. to members through state-based Relationship Managers, face-to-face In financial year 2014, Compassion provided ongoing personal support and speaking withtheirlocal politicians. children, volunteering atevents, learning more abouthow to fightpoverty are talking to theirfriends, family andchurch, findingsponsors for living inpoverty intheirown time,onavolunteer basis. ChildAdvocates movement ofpeopletaking actionto seekjustice andlife for children The ChildAdvocate Network(CAN)beganin 2004andis agrassroots Child Advocate Network they to wouldlike beused. thegift process is straightforward and,ifdesired, supporters can nominate how support andassistance for peoplereviewing theirWillorEstate Plans.The if it’s they this long after world.Compassion have left is ableto provide currently supportare fully fundeduntilgraduation orcompletion, even to come. Others want to ensure thechildren, students orinitiatives they Many supporters want to assist children livinginpoverty for generations Bequests talents andvoices to helprelease children from poverty. Compassion is grateful to allofour Ambassadors for sharing theirtime, and herhusband Noahvisited theirsponsored children inIndia. to theplightofchildren livinginpoverty worldwide.InMarch 2014, Dami a Compassion Ambassador. Dami uses hervoice to draw Australia’s attention In December 2013, wewere excited to welcome XFactor winnerDami Imas injustice across theglobe. Ambassadors are inspiring others to stand upagainst poverty and firsthand. Reaching uniqueanddiverse audiences, Compassion overseas to seethelife-changing ofCompassion effects childsponsorship of Compassion assisted children andinmany cases, have travelled vision ofreleasing children from poverty. Eachare personal supporters communicators, athletes, performers andorganisations whoshare our Compassion is honoured to partner witharange ofChristian musicians, Ambassadors to beavailable for allsupporters ofCompassion. activities suchas volunteer andprogram promoter training willcontinue supporters inadvocating for children livinginpoverty. Core advocate Going forward, Compassion willbeexploring newways to engage more June 2012and302014. The following table shows thegrowth inregistered members between30 filter can provide awhole family withclean, safe water for alifetime. to provide water filters to around 200 families every year. Just one water Initially raising $40or$50aweek,theirstall now brings inenoughmoney become enormous.” sort offarm that we thought we were goingto retire onhas now—so it’s justgonefrom strength to strength. The little roses forchurch andplanted fruittrees—about 150 ofthem says Christine. “We’ve builtarose garden sowe can get veggie garden three timesnow, justto cope with demand!” “Our stall isbecoming sopopular …we’ve extended the produce to theirfriends andneighbours. church, they share aboutCompassion’s workas they selltheirorganic drive to theirlocal church. From theirnow regular spotatthebackoftheir colourful fruitandvegetables before they make theone-and-a-halfhour Each week,BobandChristine stock uptheircar withahealthy variety of help give clean water to children andtheirfamilies livinginpoverty. raised $30,000inthree years by sellingtheirfresh, organic produce to As members oftheCANsince2011,BobandChristine Kilpatrick have From theground up CAN GROWTH Total CANmembers JUNE 2014 2757 JUNE 2013 2609 JUNE 2012 1970 Against Poverty’ event to raise money for for money raise to ‘Paddle a event hosted Poverty’ Australia Against Surfers Christian Compassion’s Unsponsored Children’s Fund. Fund. Children’s Unsponsored Compassion’s

Annual Report 28 Compassion Australia 29 Christian Surfers Australia memberDaniel Hatton. community to help usgive back to the world,” says “Christian Surfers Australia wanted to engagethe surfing five children thegroup has sponsored for 13 years. children whoare registered withCompassion butnotyet sponsored and three to four hours. As aresult, the group raised over $14,000 to support 100 surfers paddled from Stanwell Park inNorth Wollongong to Thirroul in event to raise money for Compassion’s Unsponsored Children’s Fund. Almost In May 2014, Christian Surfers Australia hosted a‘Paddle Against Poverty’ raised perperson was $593.90. more than$174,600 innetrevenue for Compassion; theaverage amount specific Compassion program orinitiative. In total, fundraisers raised fundraised, 79percentdidso onlineand53percentfundraised for a friends to donate incelebration oftheirbirthday. Ofthepeoplewho Australia, wearing aCompassion t-shirtfor ayear andencouraging their to fundraise for Compassion inavariety ofways, includingcyclingacross own fundraising webpage. This year, more than290individuals chose Everyday Hero andGoFundraise, whichallow fundraisers to create their Compassion currently partners withtwoonlinefundraising companies, Fundraisers products orservices, norclaimany proprietary rights. Compassion does notendorse organisations wepartner withortheir —Davinia Hart, Vos Foundation gave usaneven higher regard forthe work ofCompassion”. staff and the local pastors and leaders inhelping the poor the love“Witnessing andcommitment ofboth Compassion our endoffinancial year Compassion Appeal. supporting unsponsored children, Bibledistribution, Christmas and gifts and Critical Interventions—as wellas specialty initiatives suchas programs—Child Sponsorship, ChildSurvival, Leadership Development support arange ofdifferent poverty-fighting initiatives includingour core groups contribute significantly to theworkof Compassion. These partners Across thecountry, anumberofbusinesses, corporations andcommunity andCommunity Partners Corporate

since 2008. month’ has beenaregular feature ontheAustralian Christian Channel Channel inamonth-longpromotion ofCompassion’s work.‘Compassion In October 2013, Compassion was featured ontheAustralian Christian a similarway to fundraise for Water for Life inJune2014. kits for victimsofTyphoon Haiyan. Ultra FMpartnered withCompassion in November 2013, Hope103.2fundraised withCompassion to provide crisis run fundraising appeals. During theirown appeal for theirstation in In additionto this, tworadio stations partnered withCompassion to Hobart, RhemaFMinNewcastle andUCBVision Radio Network. in Melbourne, Life FMinAdelaide, JuiceFMontheGoldCoast, Ultra FMin 103.2 inSydney, Family 96.5inBrisbane, SonshineFMinPerth, LightFM Compassion was featured onanumberofradio stations includingHope Magazine, SightMagazine andMICIMagazine. Renegade Collective, Christianity Today, Eternity Newspaper, Bella Some print andonlinepublications wefeatured inincludedThe purposefully withmainstream media. outlets inprevious years, infinancial year 2014 wealso engaged more While Compassion has focussed onpartnerships withChristian media Australia andsponsored theirannualconference heldinMay 2014. arranging interviews. Compassion is amemberofChristian Media of media outlets, providing editorial content, sponsoring events and In financial year 2014, Compassion Australia engaged witha range Media and to helpreduce poverty as anintegral part ofourChristian faith. and individuals thataimsto deepenpeople’s engagement withthepoor Challenge, aglobalmovement ofChristian agencies, churches, groups the ease andeffectiveness inyour ofleaving Will,as wellas Micah agift involved inIncludeaCharity, amovement designed to raise awareness of for children around theworld. This year, Compassion Australia was actively organisations thatshare ourvalues andunderstand ourmission ofadvocating Compassion Australia purposefully engages withexternal advocacy Network Partnerships Annual Report 30 Compassion Australia 31 Current Environment major givers are committed long-term to Compassion’s work. Compassion spanning more than20years, showing thatCompassion’s the last five years, more thanonein10has hada relationship with major givers stated thattheirrelationship withCompassion beganwithin supported as asole trader. Interestingly, while17percentofCompassion’s they supported Compassion through atrust orfoundation; twopercent from oneemployee to 100+employees); three percentindicated that individual; onein10supported Compassion as abusiness (varying major givers are connected to theChristian faith anddonated as an According to a2012corporate givingsurvey, themajority ofCompassion’s Australia supporters to theorganisation’s cause. giving. These figures reflect extraordinary loyalty amongst Compassion Compassion receives thevast majority orasignificant portionof their child sponsorship. Two-thirds ofCompassion supporters stated that years or more and98percentare engaged withCompassion through Over three infive supporters have beensupporting Compassion for five and Victoria. Halfofthesurvey respondents are married withchildren. and are strongly represented inNewSouthWales, followed by Queensland time. Furthermore, almost50percentofsupporters reside inacapital city 50-68 years oldandmore thanone-third ofsupporters are employed full- Compassion supporters are female, thelargest age group ofsupporters is close alignmentwithCompassion’s core values. More thantwo-thirds of per centofsupporters considered themselves Christian, indicating a The responses to Compassion’s 2014 supporter survey found that98 Demographic Supporter Overall, there is stillgreat potential for growth. range ofdenominations. financial year, Compassion focussed onengaging withabroader The Australian Christian landscape is extremely diverse. During the churchattending atleast oncepermonth. identifies withChristianity, with15percentofthepopulation Currently approximately 61percentoftheAustralian population Compassion’s audienceis theChristian populationinAustralia. Compassion’s Audience engage with Australian Christianswho share ourvisionofreleasing children from poverty inJesus’ name. World Givingindex,dropping from first place in the previous year. Compassion Australia chooses to specifically significantly to helping those livinginpoverty around the world. Australia was ranked seventh in the 2013 Compassion Australia operates within alarge and diverse not-for-profit sector in Australia that contributes

established trust andrapport thatwehave builtwithchurch leaders. to generate awareness aboutCompassion’s workoverseas, as wellas the the effectiveness ofCompassion’s workinpartnering withlocal churches a recommendation from theirpastor orchurch leader. These results show event andtwoinfive also madeadecision to support Compassion after two infive were influenced bya presentation ataChristian conference or church whenfirst considering to support Compassion’s work.Afurther Compassion supporters were influenced by apresentation attheirlocal The results from the2014 supporter survey show thatmore thanhalfof PsychographicsSupporter 2. Whatdoourkey stakeholders desire from us? 1. Whatdowedesire from ourkey stakeholders? being met.There are twodifferent parts to thescorecard: fundamental measurement system to assess ifourstrategic objectives are mission based only onmeasures thatrelate to strategic success. Itis a reviews key stakeholder relationships andwhere they sitto deliver onour (see page 11)through arelational scorecard. TheStrategic Factor System Compassion Australia assesses its engagement withkey stakeholders Stakeholders • • • • • • Measures Definition Strategic Factors Measures Objectives Behavioural Outcomes

Government legislativeGovernment regulatory bodies: Compassion Australia currently reports to thefollowing legislative and progress oftheproposed repeal willbemonitored into financial year 2015. Australian Taxation Office.Thefullimpact ofthis is notfully known and establishing theACNC andreturn fullregulatory power backto the The present government has stated its intention to repeal thelegislation administrating tax concessions for thenot-for-profit sector. however, theCommissioner for Taxation continues to beresponsible for the Australian Taxation Office’s role ofdetermining charitable status; and Not-For-Profits Commission (ACNC). The Commission has taken over new regulatory bodyfor not-for-profits known as the Australian Charities In May 2011,theFederal Government announcedtheformation ofa Political Environment andLegal • • • • • • Australia has aHealth andSafety Committee (HSC)whichmeets byaffected ouractivities, as reasonably practicable. Compassion (including volunteers andcontractors) andfor others whomay be to ensuring asafe andhealthy workenvironment for its workers Work Health andSafety (WHS):Compassion Australia is committed Brendan Lowe. can befound onourwebsite. Compassion’s Privacy Officer is (Enhancing Privacy Protection) Act 2012.Ourprivacy statement Australian Privacy Principles contained inthePrivacy Amendment Privacy Legislation: Compassion Australia is governed by the the following fundraising licences andpermits inAustralia: Regulation ofCharitable Fundraising: Compassion Australia holds its overseas aidworkby theOverseas Deduction Scheme. AidGift Department ofForeign Affairs andTrade: Compassion is governed in the Corporations Act 2001. Australia is incorporated as aCompany Limited by Guarantee under Australian Securities &Investments Commission: Compassion Compassion Australia holds thefollowing tax concessions: Australian Taxation Office: As a Public Benevolent Institution, - Note: nofundraising legislation exists inNT - ACT number19000083 - WA number20740 - TAS numberF1A-208 - SA numberCCP1161 - QLDincorporation numberCH1569 - VICnumber10734 - NSW number10658 - FBT exemption - GST concession - Income tax exemption

Non-government regulatory bodies Non-government regulatory and supporter retention. environment, whichincludes focussing onnewgrowth opportunities and maximise theopportunities inthepostGlobalFinancial Crisis Compassion is continually lookingfor ways to minimise thethreats continued to bemoderately volatile, trading between96cand87c. is amarginal increase. TheAustralian dollar, compared to theUSdollar, and withinRBA targets. Theunemploymentrate endedatsixpercent,which The cash rate decreased by 25bpsto 2.5percent.Theinflation rate is steady is low, Australian economic fundamentals are stillcomparatively sound. Although various sectors are cooling andtheoverall growth environment the miningsector boom. been experiencing acooling for thepast few years as wetransition from the Australian dollar. TheAustralian economy has hadlow growth andhas news. At times, theglobal volatility has Australia affected andparticularly markets stillcontinue to beirrational andquickto respond to negative The globaleconomy experienced low growth this financial year and Economic Compassion Australia seeksprofessional advicefrom thefollowing advisers: Professional advisers • • • • • • • is committed to safeguarding thechildren in ourprograms from Child Protection: As achilddevelopment organisation, Compassion Regulation 2011. Work Health andSafety Act 2011andtheWork Health andSafety ensuring compliance withlegislative requirements, includingthe which provides aplanned,systematic andcoordinated approach to conjunction withtheWork Health andSafety Management System a healthy andsafe workenvironment. TheHSCoperates in on aquarterly basis andis key to ensuring Compassion provides centres overseas. are subjectto periodic policechecks,as are visitors to ourprogram that helpreduce potential risks. As part andvolunteers ofthis, staff is by enforcing childprotection policies, strategies andprocedures all forms ofabuse andexploitation. Oneoftheways this is achieved Missions Interlink FIA (Fundraising Institute ofAustralia) increasing compliance withthePCIData Security Standard (PCIDSS). ensure thesecurity ofsupporters’ credit card information through PCI Security Standards Council: Compassion Australia strives to Banking: Westpac Banking Corporation Financial Auditing: Martin Power ofBentleys Brisbane (Audit)Ltd Pty Gordon; Peel HRConsulting andMediation Legal: NeumannandTurnour; McCullough Robertson; Slater and

Annual Report 32 Compassion Australia 33 Sustainability For more information onCompassion’s auditprocess please refer to page 42. operate effectively. contributions are used for thestated purpose andCompassion’s programs the developing countries where wework.This is to ensure supporters’ Regular audits are conducted for each ofCompassion’s programs in Compassion Australia contributes 8.28percentofthis total funding. of more than12partner countries, includingCompassion Australia. Compassion International’s programs are fully fundedthrough thework sustainability Financial members. This ensures thatsupporters’ contributions are used sustainably. delivered orpurchased according to theirneeds by ourtrained staff supported through theprovision ofgoods andservices, carefully designed, Children andfamilies whoare assisted by Compassion are almostalways in theircommunities. as they are equippedto become leaders andimplementpositive changes has asustainable impact onindividualchildren, butalso oncommunities Compassion’s program. Compassion’s ChildSponsorship Program notonly communities andchurches than theirpeers whodidnotparticipate in have salaried employmentandwere more likely to beleaders intheir Child Sponsorship Program stayed inschoollonger, were more likely to study show thatchildren whoparticipated inCompassion’s holistic term solution to helprelease children from poverty. Theresults ofthe Compassion’s ChildSponsorship Program is as highly along- effective As referred to onpage 35,independentresearch confirms that earlier intheannualreport. This is outlinedfully intheindividualpages onthese programs found and communities withwhomweworkby providing suchthingsas: is to produce sustainable outcomes for thechildren, mothers, students, developing countries where Compassion works.Theaimofthese activities Our program activities are administered through local churches inthe sustainability Social Program RelatedActivities the developing countries where we work andin Australia with ourfundraising and administration activities. Sustainability isvitally important forthe work ofCompassion Australia, both inourprogram related activites in • • • • • Vocational training Parent education initiatives Formal andnon-formal education Health interventions Nutritional support appropriate policies andprocedures (seepage 46). relevant Workplace Health andSafety (WHS)legislation andimplement future for employees andour organisation. To dothis, wecomply with a safe, healthy andrespectful workplaceto ensure asustainable our mission andvalues (seepage 5).We are committed to maintaining releasing children from poverty inJesus’ nameas wellas alignwith Compassion Australia seeksto employpeoplewhoshare ourvision for Employees sustainability Social Administration Activities Fundraising and *Wall Street Journal, “Hard-Wired for Giving”, August 2013 August Giving”, for “Hard-Wired Journal, Street *Wall reward accounts*. that became active whenthesubjects addedmoney to theirpersonal worthy organisation, parts oftheirmidbrain litup—thesameregion donor, andthatwhenpeople decidedto donate to whatthey felt was a Journal, scientific research shows thatgiving is extremely beneficial fora to live outGod’s mission for thoseinpoverty. According to theWall Street alike as itenriches theirvision for mission, givingthemanopportunity found to have apositive impact onthelives ofsupporters andchurches Having theopportunityto contribute to ameaningful cause has been Senior Pastor Ryan Croxford. of implementing change,” says C3 Church Newcastle City Compassion, you can help make animpactandbeapart but by connecting yourself to anorganisation like “Tackling anissue like poverty can beoverwhelming supporter andthelong-term development ofthesupportingchurch. not only beneficial for thechildren weserve, butalso for theindividual relationships withourindividualsupporters andchurch partners are relationships withoursupporters. Itis important that Compassion’s individuals andchurches withtheaimofbuildinglong-term, sustainable financial year wehave continued to focus ongrowing partnerships with been supportingCompassion’s workfor more thanfive years. Inthis Our mostrecent survey found thatthree infive supporters have Supporters

local power station peryear. equates to anestimated savingof20.5tonnes ofcarbon dioxide atthe has saved approximately 29,000 kilowatt hours ofenergy perannum.This management inorder to reduce energy usage. Itis estimated thatthis For thelast three years, Compassion has implemented targeted power estimated savingof75.86tonnes ofcarbon dioxide emissions. energy perannum.According to Australian standards, this equates to an It is estimated thatthis has saved approximately 81,000kilowatt hours of June 2012,whilethesecond andfinalstage was installed inJune2013. system inourhead officeatNewcastle. Thefirst stage was installed in In recent years Compassion has installed anewenergy efficientlighting Electricity new environmentally sustainable activities. These include: Over thepast few years, Compassion Australia has gradually implemented Environmental sustainability Compassion’s income, please refer to page 75. supporters andengaging newsupporters. For more information on enables Compassion to focus fundraising onretaining efforts existing Compassion’s current level ofprogram fundingcan besustainable. This recurring monthly support.By using this recurring modeloffundraising, Compassion Australia fundedapproximately 85percentofactivities through sustainability Financial a portionofourprinted material onrecycled paper. 14001 andPEFC chainofcustody certification. Compassion also produces Free (ECF)pulpandproduced inamillaccredited withISO9001, from sustainably managed forests. Itis madefrom elemental Chlorine material. This paper is PEFC certifiedwith raw materials being sourced Compassion uses ethically sourced paper intheproduction ofourprinted Printed materials currently investigating recycling used batteries. per annum.Compassion also recycles allused printer cartridges andis per annum,alongwithafurther4000kilograms ofcomingled recycling waste. Compassion recycles approximately 29,000 kilograms ofpaper This year Compassion has continued to recycle allappropriate recyclable waste ofrecyclable Recycling saving ofeightgrams ofcarbon dioxide emissions perkilometre driven. Changing over unleaded Hyundai i30wagons to diesel vehicles has anestimated The majority ofvehicles inCompassion’s fleetare Hyundai i30 wagons. with vehicles using diesel alternative untilabetter becomes available. emissions. As unleaded vehicles are retired, where possible, they are replaced are considered to bemore efficientonfuel consumption and carbon dioxide the fleet to consist mostly of vehicles using diesel rather thanpetrol, as these Throughout theyear, Compassion has continued theprocess ofchangingover Vehicles fleet to promote sustainability withintheorganisationto during financial year 2015. Compassion Australia willcontinue to lookfor newandinnovative ways initiatives Other

Annual Report 34 Compassion Australia 35 Child Sponsorship TrendsSponsorship Child team ofresearchers from theUniversity of San Francisco, University of drew onindependent research conducted by DrBruceWydick anda In 2013, Compassion Australia launchedtheITWORKS campaign which Wydick Research Sponsorship newaudiencesidentify for future growth. this shows exciting supporter engagement, italso indicates theneed to commitments persponsor is increasing atamuchfaster rate. While sponsorships are continuing to increase, thenumber ofsponsored child In financial year 2014, weidentifiedthatwhile Compassion child per cent,withachildsponsorship retention rate of93.16percent. of 1.43percent.Thecancellation rate remained relatively steady at6.84 across Compassion Australia’s three programs was 103,751—a netgrowth At thecloseoffinancial year 2014, the combined numberofbeneficiaries increase of2947children sponsored. (detailed below) positively influencedsponsorship growth, withanet beneficiaries across Compassion’s three programs. TheIT WORKS campaign In financial year 2013, Compassion Australia hadgrown to 102,289 Child Survival programs. beneficiaries across theChildSponsorship, Leadership Development and the celebration ofa10-year goalto grow Compassion Australia to 100,000 was thelowest ever recorded: 6.66percent.Theyear 2012also marked net sponsorship cancellation rate result attheendoffinancial year 2012 this data saw significantly improved results infinancial year 2012;the A strong focus onsupporter engagement andretention inresponse to through Compassion inthefuture, according to a2010supporter survey. cancelled theirsponsorship indicated they wouldconsider sponsoring again from Compassion’s program. More than63percentofsponsors who because ofdifficultfinancial situations orbecause theirchildhaddeparted because they were dissatisfied with Compassion Australia, but rather cancellations. Research in2011revealed sponsors didnotprimarily leave During this timewealso started seeinganincrease insponsorship growth beganto slow in2009andlagged furtherin2010and2011. highest acquisition rate in2008with15,151newsponsorships. Sponsorship doubling inthefive years between2001and2006alone. We reached our acquisitions from theyear 2000through to 2009, withtotal beneficiaries Compassion Australia enjoyed strong growth inchildsponsorship Compassion ChildSponsorship highlights ofrecent research into Compassion child sponsorship. organisations. The following isanoverview ofCompassion child sponsorship trends since 2000,aswell asthe developing countries. An estimated 9.14 million children worldwide are currently supported through sponsorship Internationally, child sponsorship isoneofthe leading formsofassistance to children inneedwho live in The Child Sponsorship Program isthe foundationofCompassion’s approach to child development.

who didnotparticipate intheprogram. likely to beleaders intheircommunities andchurches thantheirpeers more likely to have salaried andwhite-collar employment,andwere more Compassion’s ChildSponsorship Program stayed inschoollonger, were 1992. Theresults, detailed below, show thatchildren whoparticipated in enrolled inCompassion’s ChildSponsorship Program between1980 and over 10,000people,including1860formerly sponsored children whowere The Wydick research focussed onsixcountries. Itinvolved interviewing Sponsorship Program andhighlights how sponsorship impacted theirlives. who are currently in,orhave graduated from, Compassion’s Child financial year 2014. The campaign features the testimonies ofchildren Compassion Australia continued to promote theITWORKS campaign in children from poverty. Program is as highly along-term effective solution to helprelease Political Economy, theresults confirm that Compassion’s ChildSponsorship Minnesota andUniversity ofWashington. Published intheJournal of Leadership Leadership Employment Education • • • • 70 percentmore likely to beinvolved inchurch leadership as adults. to 75 percentmore likely to become community leaders and40to Adults whowere Compassion sponsored children are onaverage 30 collar employment. Sponsorship Program and35percentmore likely to secure white employment as anadultthanthosewhowere notpart oftheChild Children were 14 to 18percentmore likely to have salaried complete auniversity education thannon-sponsored children. secondary education, andwere 50to 80percentmore likely to Sponsored children were 27to 40percentmore likely to finish of secondary schoolby 15to 25percent. boosts agirl’s eventual wages by 10to 20percentandanextra year peers. Research shows every additional year ofprimary school one to 1.46years (2.4inUganda) longerthantheirnon-sponsored Compassion sponsored children stayed inschoolfor anaverage of

Sameson was given hope for a better future. better a for hope given sponsorship, was child Sameson Compassion Through day inawoodworkshop,Sameson failed his 10thgrade examination. Education was notapriority inhis family. Forced to workhalfofeach Unfortunately, Sameson struggledwhenheentered highschool. build his self-confidence andbeliefinhimself. school during theday. Compassion counselled Sameson, staff helpingto ease thefinancial burden onhis family, so he was able to start attending people wholoved andcared for him.Sameson’s sponsorship helped Through theChildSponsorship Program, Sameson was surrounded by thought noonecared, GodsentCompassion to brighten myfuture.” my life seemedto beatastandstill, whenallhopewas lostandwhenI “Joining Compassion was thehighlightofmylife,” says Sameson. “When that his life became oneofhope,rather thanjust survival. with his daily chores. Itwasn’t untilhewas registered withCompassion Sameson started school,hehadto take nightclasses so hecould keep up to work.Hespenthis days inafield tending andsheep.When to cattle by his aunt.As anothermouthto feed inherfamily, Sameson was put Sameson was just four years himto oldwhenhis beraised motherleft sponsored inEthiopia child Meet Sameson, Compassion aformer

talent inhim,arranged for Sameson to studywoodworking. members encouraged himto explore otheroptionsand,recognising a children inhis village, Compassion restored hopefor Sameson. Staff While failing schoolcan mean theendofeducation ortraining for many examination to pursue his dream ofstudyingliterature atuniversity. As for thefuture, Sameson plansto retake the10thgrade national to his family. the workshop,enablinghimto rent ahouse andprovide financial support children woodworkskills. Sameson receives aportionoftheprofits from taking orders, producing furniture andalso teaching Compassion assisted course. Today, hemanages acarpentry workshopowned by thechurch, It has now beenover four years sinceSameson finished his woodworking through Compassion.” says Sameson.“God gave measecond chance of the road forme,Ipraised God and Iwas thankful,” very Iheard that“When failing my exam was notthe end own carpentry workshop. His goalis to develop his talent for andwriting—and poetry also openhis

Annual Report 36 Compassion Australia 37 The Board andGovernance In June 2014, Jeremy Horn stepped down asBoard member. stated inourConstitution. It isthe role ofthe Board ofDirectors to ensure we operate inaccordance with the principles and commitments purpose, objectives andpowers, andhow income isto beapplied. Compassion Australia isacompany limited by guarantee, with aConstitution that defines the organisation’s each with unique skills andexperience, united forthe purposeofreleasing children from poverty inJesus’ name. Compassion Australia isgoverned by avoluntary Board ofDirectors. The board comprises seven members, Governance Committee Member oftheExecutive and Chairman oftheBoard ofDirectors Dr JohnBond Board member since 2008 since member Board 2005 since member Board 1995 since member Board 2002 since member Board of Compassion International Member oftheBoard ofDirectors Services Committee Chairman oftheMinistry Vice ChairmanoftheBoard Mike Jeffs Relations Committee Member oftheMinistry Isaac Moody Relations Committee Member oftheMinistry Secretary oftheBoard of theBoard inJune2014. Jeremy stepped down as amember Jeremy Horn NAME ANDPOSITION International andis theFounding Director ofSonlife Ministries Inc. as SouthAsia Pacific World Zone leader ofDynamicChurch Planting Lausanne Committee ofWorld Evangelisation. Heis currently serving International, Sports andLeisure Ministries andtheNational John is aMinister ofReligion andhas worked withYouth for Christ Gateway West Ltd,andSt Pty Andrew’s Toowoomba hospital. including Prethink Ltd,Mercantile Ltd,Jindovic Pty Pty Capital Ltd, Pty Isaac is theDirector ofanumberorganisations andcompanies, shareholder andCompany Director ofClarety Ltd. Pty experience inwebservices andbusiness systems. Heis also a Ltd andhas broad experience inAustralian media andextensive Jeremy is theowner andCompany Director ofNetstrategies Pty LtdandAustralianPty Christian Ltd. Channel Pty Mike is theFounder andDirector ofNetworkCommunications BIO

Annual Report 38 Compassion Australia 39 Governance Committee Member oftheExecutive and Amanda Jackson Board member since 2010 since member Board 2012 since member Board 2008 since member Board Services Committee Member oftheMinistry Kent Medwin Services Committee Member oftheMinistry Mabel Chua NAME ANDPOSITION Christian community. various leadership capacities inherlocal church andinthe a multi-disciplinary boutiquelegalpractice. Mabel has served in Managing Director ofM6:8Legal inPerth, Mabel was apartner at property, commercial andestates matters. Prior to becoming the extensive experience inthearea ofdispute resolution incorporate, of Commerce majoring inaccounting andfinance. Mabel has Mabel holds aMasters ofLaws, Bachelor ofLaws andaBachelor and JubileeAustralia. International andaformer coordinator ofMicah ChallengeAustralia Amanda is theHead ofCampaigns andAdvocacy for Micah Challenge Pathways Victoria. Ground Tasmania, community radio station Ultra 106.5,and Michael’s Collegiate School. Heis theformer Director ofCommon Kent is Managing Director ofRock Property, andaDirector ofSt BIO Annual Report 40 Compassion Australia 41 Board’s processes. Thereview showed thatefficientprocesses are inplace. In 2014, anindependentconsultant was enlisted to conduct areview ofthe education andthecontinued development ofaBoard manual. review procedures for Board members andtheCEO, ongoingBoard on theBoard, improving inductionpractices, developing performance areas to improve on.These include developing ahealthy genderbalance We believe ourBoard functionseffectively, butare always lookingfor Training andDevelopment decision, andifsuccessful theapplicant is invited to jointheBoard. are invited to aBoard meetingas observers. TheBoard thenmakes a and livingalife consistent withtheChristian faith. Potential members Each Director is required to beaChristian, committed to alocal church and chosenfor theircontribution to thedecision-making process. Potential Board members are recommended by current Board members Recruitment Board committees: Throughout 2014, ourBoard has beensupported by thefollowing provides averbal report to theBoard, whothendiscuss any issues. the operational aspects ofmanagement atCompassion. Eachcommittee These are notdecision-making bodies butrather provide insightinto Relations Committee—which meets withtherelevant executive staff. and Governance Committee, Ministry Services Committee, andtheMinistry Each Board memberserves onatleast oneBoard committee—the Executive Board Committees or InsightTrips to Compassion field countries. in otherCompassion activities suchas promotional events, conferences annual general meeting.Members are also encouraged to beinvolved The Board meets face to face atleast four times peryear, includingan Structure • • • Church, Advocacy andDonor. Ministry Relations: Responsible for ourfrontline members, staff Human Resources, andInformation Technology. Compassion Australia’s officebuildingmaintenance andlogistics, Ministry Committee: Services Responsible for Finance, Board development andinnovation. Executive Team, structure, Board membership nominations, Executive andGovernance Committee: Responsible for the

the period oftimefor whichtheChairmanofBoard can holdoffice. and Secretary—are elected every 12months.TheBoard may determine re-elected for a further term. Officers oftheBoard—Chairman, Vice Chairman end oftheirterm. They can stand again and,subjectto Board approval, be on theBoard. Members are appointed for three years andmust retire atthe The Board’s Constitution sets outthelengthoftimeamembermay serve ofService Length annual statutory returns. agree to sucharrangements, andthese payments are disclosed in generally atarate far below market rates. TheBoard andCEOmust a Director may actas aconsultant to Compassion andbepaid afee, travel andaccommodation. Occasionally, where they have theexpertise, Compassion does reimburse related reasonable expenses, suchas Directors are notpaid any remuneration for theirservices, but Reimbursement championed several initiatives designed to address risk areas including: To helpmitigate risk infinancial year 2014, ourExecutive Team then includedinaquarterly submission to theBoard ofDirectors. agenda item for theExecutive Team’s meetings.Theresulting assessment is This involves regular risk reviews andincludes risk management as aregular financial year 2012,whichhas continued through financial year 2014. Compassion Australia installed aformal risk management process in Managing Risk Risk Management • • • • 2015. For more information about TCPT, seepage 59. space. Theproject is intheplanningphase andwillcontinue in and willcapitalise onopportunities thatexist inthetechnology designed to mitigate multiplerisks relating to technology solutions The Transforming Core Processes withTechnology project (TCPT) is IT Disaster Recovery systems. This willcontinue into financial year 2015. Reviewing andupdatingourBusiness Continuity plan,inparticular our sponsored childdeparts Compassion’s program earlier thananticipated. child’s graduation from Compassion’s program, orintheevent thattheir Compassion’s communication withsupporters abouttheirsponsored The completion oftheDepartures Project, which aimsto improve trip experience. policy, andaimsto andsupporters give staff thebest possible The development ofaTrip Project, whichincludes adetailed trip

www.compassion.com.au/annualreports Full financial reports datingback to 2003are available for viewingat accounting andauditfirm;thelead auditor is Mr Martin Power FCA. a thorough auditonourfinancial reports each year. Bentleys is an Compassion Australia engages Bentleys Brisbane (Audit) to perform AuditingExternal Card Industry Data Security Standard. primary location. Compassion Australia also complies withthePayment located remotely incase ofcatastrophic damage ordata loss atour importance. OurNewcastle office is also protected by abackup system, consistent information handlingaccording to its sensitivityandlevel of for protecting sensitive information, withprocedures inplaceto ensure and hardware tools. Compassion volunteers are andstaff responsible policies, processes, procedures, organisational structures, and software management strategy is achieved through aseries ofcontrols, including critical to Compassion Australia’s operation andreputation. Ourrisk Protecting ourintellectual property andsupporters’ information is Technology Risk For more information aboutCompassion’s investments, seepage 68. short maturing term deposits—or incommercial property holdings. available funds ineitherlow-risk, interest-bearing accounts—including Services Committee oftheBoard. Compassion Australia invests all Investment decisions andguidelines are approved by theMinistry Investment Risk main approaches are used to purchase foreign currency: in financial markets and reviewing economic indicators. Presently, two foreign exchange risk. This is based onregular prudentanalysis oftrends Committee oftheBoard determines ourapproach to mitigatingour global headquarters located intheUnited States. TheMinistry Services with foreign currency exchanges. This process is overseen by Compassion’s in each oftheapplicable field countries, whichmeans weneed to deal Compassion Australia sends funds to theCompassion International offices Foreign Exchange Risk • • exchange contracts to mitigate therisk ofthedollardropping. bout ofvolatility, foreign currency is purchased via forward When theAustralian dollarappears to beheading for asustained currency is purchased as neededatspotrates. When theAustralian dollarappears to beless volatile, foreign

an auditofonethe26international fieldoffices. year Compassion International’s external auditors, KPMGLLP, also conduct actionplanningandsubsequentfollowdecision making, up.Every second brought andmanagement to for ofstaff theattention consideration, and actionitems from bothproject andfieldoffices are documented and to widertrends identify inoperations andadministration. Observations integrity. Field offices are audited every three to five years, on average, minimum standards offinancial accountability andprogrammatic can ensure, as far as is reasonably practical, thatprograms are meeting months oftheirprevious auditvisit, regardless ofrisk rating. This way we based onanannualrisk assessment. Every centre is audited within30 Over 50percentofCompassion’s field partners are audited each year, took partstaff intheaudits oftheTogo andSri Lanka fieldoffices. departments some attend oftheaudits. This year Compassion Australia globe. Staff from Compassion Australia’s Finance andRisk Management integrity atchilddevelopment centres andfieldoffices across the management functionthatroutinely monitors financial andoperational Compassion International has aglobalinternal auditandrisk AuditingInternal CEO andtheBoard ofDirectors. business with theorganisation withoutfulldisclosure andapproval ofthe either directly orindirectly, from any individualorgroup thatconducts No Board Member, officer oremployee oftheorganisation shallbenefit, Conflicts ofInterest event ofacrisis. and prioritising timely andaccurate communication to supporters inthe and thoughtfully addressing publicconcerns aboutCompassion’s activities equips us to proactively protect ourpositive reputation by immediately ensure this reputation continues. Compassion’s Crisis Communication Plan public as atrusted voice inthedevelopment conversation, and wewant to Compassion currently has awell-established reputation amongstthe CommunicationCrisis feel Compassion demonstrates overt Christian values. in financial year 2014 showed that98percentof Compassion supporters associations, beneficiaries, andthegeneral public.McCrindle’s research transparent relationships withgovernments, churches, othernot-for-profit are expected to demonstrate integrity andethical behaviourthrough ethical standards, inspired by ourdedication to theHoly Bible.Employees At Compassion we endeavour to conduct ourministry withthehighest Standard Ethical

Annual Report 42 Compassion Australia 43 Leadership will bereplaced by the newly created Executive Director ofSupporter Engagement role. In February offinancial year 2014, we farewelled ourChiefOperating Officer. Infinancial year 2015, theposition Executive Team isresponsible forthe ongoinghealth and growth ofCompassion Australia. Directors isimplemented inourministry. In additionto overseeing specificareas of Compassion’s ministry, the The Executive Team atCompassion Australia operates to ensure that the strategy developed by the Board of Chief Executive Officer Dr Tim Hanna Since 2012 Since 2011 Since 2014 to 2007 2010 Since Chief Operating Officer Nagle Jeff Ministry Relationships Executive Director of Adam Holland Ministry Services Executive Director of Deb Adams NAME ANDPOSITION he served for twoyears before returning to Compassion as CEO. Australia before becoming theCEOofWillow Creek Australia where role ofNationalDirector ofChurch andMission withCompassion lecturer attheAustralian College ofMinistries. In2008hetook the Tim was aseniorpastor for more than30years andaformer senior Tactics section. section, whichis comprised ofsixArea Teams andtheStrategy and Relationships. Inhis role, hemanages theMinistry Relationships Adam joinedCompassion in2012as Executive Director ofMinistry context, havingalso worked inchurches andhighereducation. Adam’s management experience has beeninalocal government Risk Management, andCompliance andProgram. Following Nagle’s Jeff departure inFebruary 2014, Deb also oversaw Finance, andPrayer. Information Technology, Ministry Projects, BuildingandLogistics, Director in2011.Inhercurrent role, Deb oversees HumanResources, Human Resources Director inearly 2007andwas promoted to Executive working inthesamerole atHunter Water Corporation. Shewas made Deb joinedCompassion in2006as HumanResources Specialist after Compliance andProgram, andtheStrategy andReporting Office. overseeing Marketing, Supporter Ministries, Risk Management, position ofChiefOperating Officer. His responsibilities included Manager, arole heserved infor three years before moving into the before joiningCompassion in2004as Marketing andCommunications heldanumberofmanagement andstrategyJeff roles atSensis BIO Organisation Structure Organisation Executive Director ofMinistry Services, Deb Adams Executive Director ofMinistry Relationships, Adam Holland Chief Operating Officer, Nagle Jeff Chief Executive Officer, Tim Hanna Executive Team Administration Engagement Information Information Technology Supporter Supporter Ministry Ministry Project Centre Centre Office

Travel Directors Ministry ImprovementMinistry Supporter MinistriesSupporter David Zammit Board Deryk Ward & Technology of Director Director

Strategy & Reporting Prayer Dr Tim Hanna Executiv C Ministry ServicesMinistry hief Executive Chief Operating Deb Adams Jeff Nagle Jeff Officer Officer was absorbed by Tim Hanna while Risk Management, Compliance and Program was absorbed by Deb Adams. Adams. Deb by absorbed was Program and Compliance Management, Risk while Hanna Tim by absorbed was As our Chief Operating Officer stepped down in February 2014, his responsibility for Strategy and Reporting Reporting and Strategy for responsibility his 2014, February in down stepped Officer Operating Chief our As e Director of e Director of Compliance and Compliance and Management, Management, Resources Program Human Human Risk Risk

Digital Andrew Streat Marketing Director Northeast Conomos & Tactics Mergard Strategy Arthur Arthur Finance Director Paul Area Area Adam Holland Ben Dodd Executive Director Relationships

of Ministry of Ministry Product Area West

Hawkins Melissa Melissa French South Scott Scott Area Area

Communications & Logistics Building Building Creative Finance Area Sydney Southeast Cannings Janine Janine Brett Brett

Daly Area Area

Annual Report 44 Compassion Australia 45 Our WorkplaceOur During thefinancial year there were three injuries requiring of acriminal background check(inaccordance withrelevant state laws). children, all paid andvoluntary appointments are subjectto theoutcome To ensure theprotection ofCompassion supporters andsponsored skills ofrecruitment specialists to assist withsourcing suitable talent. management andspecialist roles, Compassion sometimes utilises the interviewing to thoroughly assess competence. Inthecase ofsenior process incorporates practical, simulationscenarios alongsidestandard rounds ofinterviews to selectthebest candidate. Therecruitment teams ofrelevant employees assess applications andrunseveral Most positionsare advertised onarange ofonlineplatforms. Small employment legislation. Recruitment decisions are based onmerit andinaccordance withcurrent Compassion Australia is committed to fillingall vacancies withintegrity. Attraction andEngagement up to andincludingtermination ofemployment. with these standards may result ininvestigation anddisciplinary action established, maintained, communicated andenforced. Failure to comply that protect employees from discrimination, harassment andbullying are Compassion remains committed to ensuring practices andprocedures and outofkeeping withCompassion’s core values. harassment, bullying anddiscrimination to beunacceptable behaviours ensure this remains thecase. Compassion Australia considers workplace environment andCompassion is committed to taking proactive steps to Compassion Australia employees enjoyasafe andrespectful work Respectful Workplace medical treatment. endeavours to: In order to achieve asafe andhealthy workenvironment, Compassion Workplace (WHS) HealthandSafety • • • • • • a priority Ensure therehabilitation ofinjured andvolunteers staff is volunteers onWHSissues Create opportunities for two-way discussion and withstaff Compassion’s WHSManagement System Provide resources necessary to successfully develop andimplement equipment necessary to ensure health andsafety atwork Provide information, instruction,training, supervision and work spaces are safe andwithoutrisks to health Adopt risk management precautions to ensure allsystems and Comply withallrelevant WHSlegislation

HR for organisational development andaportionfor studyassistance. allocated to sectionsfor use onshortcourses andseminars, aportionto represent twopercentofgross wages andsalaries. Aportionofthis is are setaside for thepurposeoftraining anddevelopment. These funds learning intheworkplaceandconducting on-the-jobtraining. Funds competency-based program aimedatequippingthemwithskills for Since November 2009, paid employees have engaged inanongoing, and seeksto andvolunteers. andabilities develop thegifts ofstaff Compassion is committed to beingaproactive learning organisation Training andDevelopment • • • • • • • • communication andrelationship skills for Ministry Relationships staff. Behavioural based tools have beenintroduced to furtherdevelop focussed onengagement, communication andrelationship skills. Ministry completed Relationships staff atailored training workshop TAFE oruniversity. Eight employees received studyassistance to subsidise studyat employees completing aCertificate IVinBusiness Administration. Compassion’s partnership withTAFE NSW continues withabout11 Work Health andSafety (WHS)refresher training was conducted. Performance andDevelopment training. Managers, team leaders were andstaff engaged inManaging trained inAttraction andEngagement processes. All managers involved andstaff intherecruitment process are values, alongwithessential workplaceandITskills. introduces themto thestory ofCompassion andCompassion’s core New employees spendthree to four days ininduction,which

Annual Report 46 Compassion Australia 47 planning andevaluation, andvibrant andpurposefulcommunication. Some oftheareas weintend to furtherimprove uponincluderobust For more onorganisational development, seepage 58. children worldwidewithutmostintegrity andtransparency. us to continue to andefficiently effectively serve oursupporters and and efficiency for Compassion Australia inthe years to come, and to allow resources willbeneeded.These newroles are intended to ensure strength new roles intheareas where weanticipate themostsignificant additional an organisational development process, part ofwhichincludes creating As part ofpreparing for such growth, Compassion is currently undergoing blessing, andthehelpofourfaithful supporters. a hugeincrease, butonethatwebelieve can beachieved withGod’s number ofchildren supported through theministry almostdouble.That’s analyse andplanfor theministry’s future. By 2020,wehopeto seethe Over thepast financial year, Compassion has continued to strategically Development Organisational Highlights have included: and general employee satisfaction. A monthly survey tracks progress against Compassion’s desired culture Culture andEmployee Satisfaction out-of-pocket work-related expenses. employees, Compassion willapprove thereimbursement ofreasonable and compensating employees. Inadditionto remuneration for paid We are committed to ensuring fairness andintegrity salaries insetting Remuneration equipped to successfully supportanddevelop staff. training andsupportis provided to managers to ensure they remain and track goals onperformance, development andwellbeing.Ongoing and supportive framework for employees andtheirsupervisors to set Compassion’s performancemanagement system provides aneffective and Development Managing Performance • • Compassion’s cause andfuture direction. place to workandmore than80percentfeel connected with members agree67 percentofstaff thatCompassion is afun strong valuing ofpeopleandrelationships. More agree than85percentofstaff thatCompassion has a

July 2014 compared to thoseinJuly 2013. The following chartshows Compassion Australia’s demographics staff in data for organisations ofourtype andsize. and otherregulatory requirements, as wellas relevant current market wagesIn setting andsalaries, Compassion considers Modern Awards qualified people to theministry inorder to enable excellent performance. balances goodstewardship withtheabilityto attract andretain suitably Compassion seeksto analyse andremunerate roles inafair way that Paid Staff Church Partnerships andHumanResources: including BuildingandLogistics, Supporter Administration Centre, Volunteers assisted withthefollowing tasks invarious sections of comparable staff). representing $68,774 value to theorganisation (based onthehourly rate contributed 3311hours oftheirtimeto theworkatourNewcastle office, Over thefinancial year 2014, 33dedicated andenergetic volunteers Non-paid Staff • • • • • Percentage ofmen Percentage ofwomen Average age ofstaff Number ofregional staff Number ofhead officestaff Staff turnover for prior financial year Average lengthofservice STAFF DEMOGRAPHIC Helping sort mail Operating letter-folding machines Entering data for childletters, sponsor mailandstudent profiles project suspension Fulfilling letters for childdepartures, project termination and letters, Prayer Partners letters andsubstitute sponsorship packs Fulfilling newsponsorship packs, updated studentprofiles, child

JULY 2014 4.76 years 19.6% 44% 56% 115 39 34

JULY 2013 4.67 years

11.2% 33.54

44% 56% 128

19 faithful volunteering stars. volunteering faithful Compassion’s of one is Joey volunteers onanindividualbasis. Additionally, to thankthemfor their Compassion willreimburse reasonable out-of-pocket expenses for reviews are heldperiodically as needed. an opportunityto discuss any issues andagree onaresolution. Further part inathree-monthly review oftheirrole withtheirsupervisor; this is them withtheinformation andskills to performtheirtasks. They also take understanding ofCompassion’s ministry, andon-the-jobtraining provides Volunteers gothrough aninductionsession to ensure they have agood criteria, including: Volunteers atCompassion Australia are also required to meetcertain undergoing aCriminal History CheckorWorking withChildren Check. a Volunteer Application Form, participating inaninterview and The recruitment andselectionprocess for volunteers involves completing • • • • Commit to following written andverbal instructionsaccurately Have skills inlinewithourneeds Agree withourStatement ofFaith Be between15and80years ofage for insurance purposes

their confidence. state thatbeingatCompassion helpstheirself-esteem andincreases basis. These volunteers love coming to theCompassion officeandoften has anumberofindividuals withspecial needs volunteering onaregular Compassion always welcomes volunteers withspecial needs andcurrently awards andotherregular informal recognition. of each calendar year, inadditionto monthly ‘volunteer ofthemonth’ commitment, volunteers are awarded ‘thankyou’ vouchers attheend it’s like afamily, Compassion islike asecond family to me.” says Joey. “Ilove it.Ilove the partiesandhavingfun.Ithink “I like to come inhere because it’s afriendly environment,” member—andhefell inlovea staff withit. eight years. Hestarted volunteering withCompassion whilehis Mumwas WardJoshua ’Joey’ has beenafaithful volunteer atCompassion for over A Compassion star volunteering

Annual Report 48 Compassion Australia 49 Ministry Goals Ministry essential globalmoves, orlarge strategic decisions orinvestments: To helplead us towards the2020Vision, Compassion identifiedfive The global2020Vision aimsto: four programs to fully realise ourmission. and processes neededfor future growth, anddeveloping Compassion’s bearing muchfruitfor ofGod.Itis theglory aboutdeveloping thesystems Compassion International’s 2020Vision is aboutbearing goodfruitand Global 2020 Vision: Capacity. In financial year 2015, Compassion Australia enters the first yearofPhase2: Transition to Growth. distinct phases. Financial year 2014marked Compassion Australia’s second andfinal year ofPhase1:Building countries. To help usachieve the global 2020 Vision, Compassion Australia divided our strategy into three In 2009,Compassion International established aglobal 2020 Vision that was adopted by all Compassion partner 5. 4. 3. 2. 1. • • • • opportunities for growth to increase globalfunding. forSeize GlobalOpportunities Expansion:We willseize potential supporters, inorder to maximise engagement. Compassion; supporters withoneanother; andsupporters and connections between:sponsors andbeneficiaries; supporters and Strengthen Supporter Engagement:We willtransform our children livinginpoverty. tools to mobilise theChurch to respond effectively to theneeds of Mobilise theChurch: We willleverage ourexpertise, reputation and For more onTCPT, seepage 59. while replacing systems ineffective to enablethe2020Vision. innovate our globalcore processes technology andapply effective Transform Core Processes withTechnology (TCPT): We will builds Compassion’s brand. programming, engages supporters more deeply, andcontinuously delivermost effectively age-appropriate holistic childdevelopment world-class ministry modelthatempowers ImplementingPartners to Maximise theMinistries: By 2016,wewillredesign anintegrated the issues ofchildren livinginpoverty Challenge theChurch to mobilise inunforeseen ways to respond to children livinginpoverty to thepoor, as sponsors anddonors become authenticadvocates for Challenge Christians to heedthebiblical mandate ofreaching out alleviation ofchildhoodpoverty in holistic childdevelopment, inchildsponsorship andinthe Build Compassion’s brand andreputation as theglobalstandard sponsors, andourchurch partners outcomes inthelives ofbabies andcaregivers, children, students, Produce definitive andmeasurable program results based on

to staff acrossto staff alldepartments: which was rolled outwithacomprehensive internal communications plan Compassion Australia dividedthis strategy across three distinct phases, help achieve the2020Vision. As part ofaglobalnetwork,each partner country has its own strategy to Australia2020 Vision: TOTAL BENEFICIARIES following foundations: To accomplish these essential moves, Compassion willrely onthe • • • as weserve anincreasing numberofsupporters andbeneficiaries. Day-to-day Work: We willbefully engaged inourday-to-day work vision andouressential moves for thefuture. understands theirconnections withourmission, ourcore values, our focus. We willprovide accessible andrelevant ways so each person Live Compassion: We willcreate aculture ofshared priorities and room for Godto surprise us. Depend onGod:We willdependonGodinnewways andleave Building Capacity PHASE 1 FY12-14 Transition to Growth PHASE 2 FY15-17 PHASE 3 FY18-20 Growth

Annual Report 50 Compassion Australia 51 supporters andchildren, as shown inthestrategy mapbelow. focus areas for theBuildingCapacity phase: God,ourstaff, His Church, our International’s globalmoves, Compassion Australia identifiedfive strategic processes, systems andorganisational development. Based onCompassion final year ofa capacity buildingphase that focussed on reviewing our In financial year 2014, Compassion Australia completed thesecond and 1:Phase BuildingCapacity OUR SUPPORTERS with supporters andjourney Build strong relationships with theminministry Whatever you do, in word ordeed,doeverything inthenameofLord Jesus (Colossians 3:17, HCSB) 1. At least 25%ofchildren successfully complete Compassion programs

2. Less than6.5%ofsponsors cancel theirsponsorship Positive outcomes inthelives ofchildren, including: 5. Every childbenefits from atleast $40per year of 3. Every childreceives atleast twoletters peryear 4. Children wait less than4monthsfor asponsor 7. At least 80percentofdonationsdirectly 6. Support107,500 children by June2014 benefit Compassion assisted children Critical Interventions funding our mission so thatboth children inpoverty and Vigorously take holdof HIS CHURCH churches flourish CHILDREN GOD which measures ourprogress against strategy, seepage 63. between Compassion’s five focus areas. To see Compassion’s scorecard, of children. Thefollowing strategy mapillustrates therelationship achieving ourobjectives for each area, willseebenefits inthelives the Church andsupporters. Focussing onthese areas successfully, and Compassion’s foundation is Christ. By equippingstaff, wewillimpact both Map Strategy

equipped peopleworking Inspired, capable and effectively togethereffectively OUR STAFF

Ministry Initiatives onpage 53. For more information abouttheindividualcore projects, seeCompassion’s Each priority project was successfully completed infinancial year 2014. delivered withinfinancial year 2014 were initiated in response to: and processes to enableus to sustain increased growth. Thecore projects The aimoftheBuildingCapacity phase was to improve ourcore systems Building Capacity 1:Completion ofPhase • • • • relationship building Enhance frontline configurations, withscalability, to improve Improve risk andcompliance Transform Core Processes withTechnology readiness Improve supporter engagement and tasks thattogether facilitate thecore Phase 2:Transition to Growth goals. Small rocks anddeliverables break these goals down into smallerprojects during Phase 2,ouroverarching goals, andinclude: ‘deliverables’. Thebigrocks are Compassion Australia’s mainpriority usingto theterminology staff of‘bigrocks’, ‘smallrocks’ and The core emphasis oftheTransition to Growth phase was communicated build uponthedevelopments ofPhase 1:BuildingCapacity. (strengths, weaknesses, opportunities, threats) analysis, andthedesire to surveys inmind,as wellas theCompassion supporter life cycle,aSWOT They discussed thestrategy withthefeedback from ourrecent supporter the feedback from members, theCEO, staff andtheBoard ofDirectors. discussed Compassion’s global 2020Vision, taking into consideration ministry’s strategy andgoals. During this time,theteam reviewed and a retreat to develop thestrategy for this phase inalignmentwithour Transition to Growth. Compassion Australia’s management team attended Financial year 2015sees Compassion Australia move into Phase 2: Transition toGrowth 2: intoPhase Moving • • • • Developing peopleandculture Revolutionising systems andprocesses Delighting andretaining existing supporters Acquiring andengaging newsupporters

Annual Report 52 Compassion Australia 53 Performed in2014 Initiatives Ministry How Our focus areas. The icons show the correlation between initiative the outcomes ministry and Compassion Australia’s strategic Finally, ‘future initiatives’ will introduce the initiatives that will outwork Phase2: Transition to Growth. initiatives’ contribute to achieving each ofthe five specificstrategic focus areas forPhase1:Building Capacity. an important role inCompassion’s standard operating functionsandare ongoingorannual projects. ‘Ministry The following projects are divided into three sections. projects’ ‘Ongoing ministry have beenidentifiedas playing needed forfuture growth andto achieve ourfive focusareas: God,ourstaff, His Church, oursupporters and children. As partofPhase1:Building Capacity, Compassion Australia prioritised the development ofsystems andprocesses Children Our Supporters Our His Church Our Staff Our God Compassion Sunday Gifts ofCompassion Gifts Compassion Magazineande-newsletter projects Ongoing ministry ministry project. Compassion Sunday is anannual the entire church serviceto theissue. a shortpresentation ordedicating children livinginpoverty by sharing church andspeak outonbehalfof encouraged to stand upintheirlocal poverty. People allover Australia are to theneeds ofchildren livingin To draw theChurch’s attention ministry project. ofCompassionGifts is anannual Critical Interventions worldwide. raised are used for Compassion’s friend’s special occasion. Funds filter, inhonouroftheir family or present, suchas agoatorwater supporters thechance to donate a cardA charity gift thatoffers ise-newsletter sentmonthly. to supporters every sixmonths;the The Compassion Magazine is sent the children inourprograms. contributions are directly benefitting them by showing how their development programs, engaging about Compassion’s holistic child To educate current supporters PURPOSE PURPOSE PURPOSE and September. that traditionally occurinAugust low numbers ofnewsponsorships of May to August, inorder to counter Compassion Sunday from themonth Move theofficial date for Interventions worldwide. ofCompassionGifts for Critical To raise $725,000through supporter retention. Compassion’s workandimprove To engage supporters with mediums by sponsoring achild. to stories andinformation inthese or current supporters to respond To provide anopportunityfor new GOALS GOALS GOALS OUTCOMES OUTCOMES OUTCOMES sponsorship program’s performance. acquisitions. Seepage 72for more information aboutour year 2014. This may have ourtotal affected sponsorship sponsorships could notbetaken into account for financial Due to thechangeofdate, Compassion Sunday Compassion Sunday inAugust 2014. Over 120churches have registered to participate in cent below ourtarget. $661,305 for Critical Interventions, whichwas 8.8per In financial year 2014, of Gifts Compassion raised Indigenous children can face. Initiative, andtheearly childhoodchallenges that role ineducating supporters aboutourIndigenous our ITWORKS campaign, andalso played animportant In financial year 2014, themagazine helpedlaunched year 2014. combined total of69children sponsored infinancial Compassion Magazine resulted ande-newsletter ina

Annual Report 54 Compassion Australia 55 Prayer Partners Network Child Advocate Network End of Financial YearEnd ofFinancial Compassion Appeal Appeal Christmas Compassion’s ministry. to regularlystaff pray for To encourage supporters and presentations andmore. fundraising, volunteering, event through advocating for sponsorship, up for children livinginpoverty ministry to take actionandspeak groups whobelieve inCompassion’s To equipandempower individuals and classrooms, halls andhouses. access to safe infrastructure like Kids’—providing children with and, specifically, to ‘Buildings for to Compassion’s Critical Interventions To encourage supporters to donate Program withaChristmas gift. Compassion’s ChildSponsorship towards providing every childin child, andto donate $30ormore Christmas card to theirsponsored To encourage sponsors to write a PURPOSE PURPOSE PURPOSE PURPOSE us inprayer. inspire supporters for partnering with To produce avideoto thankand Partners via sign-uponourwebsite. Enable supporters to jointhe Prayer Prayer Partners. supporter base ofCompassion To increase awareness withinour sponsored through Compassion. to take actionto seemore children To equipandencourage Advocates children inCompassion’s programs. infrastructure-related needs for Interventions worldwide, including To raise $950,000towards Critical their sponsored children. relationship betweensponsors and To foster theletter-writing Christmas suchas booksorshoes. gift, not yet sponsored, withapersonalised including thosewhoare registered but every Compassion assisted child, To raise $2.1milliontowards providing GOALS GOALS GOALS GOALS OUTCOMES OUTCOMES OUTCOMES OUTCOMES Compassion magazine. Prayer points are each included after story inthe 863 supporters. During financial year 2014, thePrayer Partners had on social media. A shortpromotional videowas produced andshared were sponsored. As aresult ofAdvocates’ actions,970children of 5.7 percent. Advocates grew from 2609to 2757people,anincrease From July 2013 to June2014, thenumberofCompassion our target by more than17percent. Compassion Appeal raised $1,113,849, exceeding Between 30June2013 and30June2014, the supporters to sendto theirsponsored children. Compassion received 51,126Christmas cards from donated to provide every childwithaChristmas gift. In financial year 2014, 60percentofoursupporters raised $2,199,000, exceeding ourtarget. From July 2013 to June2014, theChristmas Appeal Church Product Redevelopment FormChild Sponsorship (CSF)Upgrade ProgramChild Sponsorship Rise Rate Initiatives 1:Phase Ministry BuildingCapacity see page 24. For more onChurch Engagement, long-term andmutually beneficial. churches inaway thatis sustainable, model inorder to partner with Redevelop ourChurch Engagement child profiles each year. and prints upto 50,000updated years, Compassion Australia creates of theirsponsored childevery two receive anUpdated Student Profile Welcome Pack photos. As sponsors Forms, Updated Student Profiles and design across ChildSponsorship To ensure there is aconsistent assets thatuse childdata. adjust processes ofprinting digital by allowing Compassion Australia to Enhance thesupporter experience in whichCompassion works. both inAustralia andthecountries month inorder to meetrising costs from permonthto $44 $48per Increase therate ofchildsponsorship PURPOSE PURPOSE PURPOSE Compassion’s programs. church partners inthefield to support while workingalongsideourlocal meets theneeds ofAustralian churches Produce asustainable modelthat with theAustralian Church. Review andevaluate how weengage Child Sponsorship Forms. Packs, Updated Student Profiles and producing childphotos for Welcome Evaluate themostefficientprocess for supporter experience. child images for animproved efficiency oftheprocess for using Conduct research to enhancethe sponsorship ministry. around thecost ofCompassion’s child Educate andencourage oursupporters allocation ofdonations,seepage 5). information aboutCompassion’s the 80/20financial split(for more Help Compassion Australia maintain 2014and January for existing sponsors. than October 2013 for newsupporters, To roll outthenewrate by nolater GOALS GOALS GOALS OUTCOMES OUTCOMES OUTCOMES team, withnewprocesses for different Church offerings. Establishment ofadesignated allocations andinventory seat drops, andchurch product proposals. including servicingguidelines, videos,posters, booklets, A newsuite ofpromotional andeducational resources, tailored to theindividualchurch. Church through whichcan anumberof offerings be Delivered amodel thatengages withtheAustralian Welcome Packs willalso bedeveloped in2015. A software package enablingthecustom creation of year 2015. the profiles is scheduled for development infinancial Profiles. Aninternal process for printing and packing the mostefficientmethod for printing Updated Student Research indicated thatexternal printing wouldnotbe standard processes infinancial year 2015. and willbeincorporated into Compassion Australia’s custom ChildSponsorship Forms printing for use atevents, A variable data printing tool was developed to enable helping to meetrising costs. sponsored childeach monthto Compassion’s ministry, Over 74,800 supporters now contribute anextra $4per support rate. almost 98percentofsupporters optinginfor thenew Supporters overwhelmingly accepted therate rise, with $48 permonth. From 2014, 1January thenew rate for sponsorship is

Annual Report 56 Compassion Australia 57 Departures ProcessDepartures Digital Experience Child Sponsorship Program. when sponsored children leave the supporters andsponsored children, Compassion andsupporters, and communication between This project willimprove for work. families moving away from thearea range ofreasons, from graduation to Child Sponsorship Program for a Children depart from theCompassion foundational technology inorder to: To develop adigital strategy and PURPOSE PURPOSE • • • about Compassion’s ministry connections withsupporters Create meaningful, everyday across digital channels Optimise thesupporter experience donations online Grow sponsorships and

our website. enhancing theuser experience of Increase onlinedonationsby ministry’s future needs. foundational technology to meetthe our Digital Team andredeveloping Build internal capacity by expanding online advertising. website, social media, emails, and including Compassion Australia’s that encompasses allchannels, Develop andexecute adigital strategy Vision andprovides labourcost savings. solution thatis scalable to the2020 manual processes andprovide a Develop technology to automate child’s departure from theprogram. information abouttheirsponsored supporters withtimely, quality departure process to provide To automate thecurrent manual cancellation rates. supporter experience andreduce a process thatwillenhancethe July 2013 supporter survey, create Using supporter feedback from a GOALS GOALS OUTCOMES OUTCOMES performance, with2165transactions. giving infinancial year 2014 remained on par with2013’s 2169 in2013—an increase ofalmost60percent.Online were 1356 transactions. This increased significantly to to theCompassion Appeal. Infinancial year 2012there There has beenasignificant increase ingivingonline Australia’s Facebook page—from 14,948 likes to 21,654. percentincreaseincluding a44 ofsupportfor Compassion The integrated digital strategy saw growth across all channels, financial year 2015. to sponsored children. Thewebsite is dueto launchin supporter’s personal account), writing andonlineletter a newlookanduser experience for ‘MyAccount’ (each Compassion Australia’s website was redeveloped, including child haddeparted Compassion’s program. immediately orwithinweeks ofbeingnotifiedthattheir supporters indicated they wanted to sponsor anotherchild An improved substitute childprocess was developed after two days perweek,has beenreduced to onehourperweek. from members state staff thattheprocess, whichused to take faster processing ofnewsponsorships. Preliminary reports capacity whichcan beused for otheractivities, including processing departures. Staff members now have increased The streamlined process means areduced workload for for supporters. risk ofhumanerror, facilitating animproved experience involved inchilddepartures means there is adecreased The reduced numberofsystems and manual processes and reprinting. Departure letters are more easily available for enquiry personalised, warm andinformative letters. us to selectfrom aseries oftext paragraphs to build customisable templates letter were created thatallow from 1128to less than300.Usingnewtechnology, departure reasons andchildprofiles was reduced The numberofletters required to cover thedifferent for thesupporter. the child’s sponsor has created animproved experience child’s departure andCompassion Australia notifying The reduced wait timebetweennotification ofa Organisational Development ProjectOrganisational Experience Compassion Field the Church. of advancing ourmission within 2020 Vision, particularly ourstrategy in order to achieve ouroverarching with theneeds ofourstakeholders resources, processes andstructures Align Compassion’s human travel to thefield. software systems used to organise To improve business processes and advocates andstaff. individuals, churches, donors, organises 290trips peryear for Compassion. Currently, Compassion supporters travelling to thefieldwith light ofincreasing numbers of trip planningandexecution, in and risk mitigatingprocess for To implementarobust, efficient PURPOSE PURPOSE supporters’ needs. and become more responsive to our stakeholders’ various demographics teams inorder to relate better to our Redesign thestructure ofourfrontline build Compassion’s capacity. people are intheright roles to help inorderstaff to ensure theright ongoing training for newandcurrent revise existing roles andprovide Strategically develop newpositions, with stakeholders. for interacting internally andexternally andefficientprocessesBuild effective and $12,000pertrip. cost to Compassion is between$8,000 trips inparticular, thetotal estimated hours organising each trip. For group members spendbetween50and100 $400,000 peryear. Currently, staff Reduce costs for Compassion by processes andtechnologies. Improve andautomate existing child development. to participate inourmission ofholistic encouraging andenablingsupporters facilitate Compassion ineducating, model andresource materials thatwill Develop Field aneffective Experience GOALS GOALS OUTCOMES OUTCOMES building andmanaging local relationships. with ageographical jurisdiction andresponsibility for Established, recruited andresourced sixArea teams, each Operational PlansandGeo-mapping. performance, includingArea Activity andOutcome reports, improve our understanding ofsuccess andmeasure our Adopted anewsuite ofreports for frontline teams thatwill and establish best practice protocols. continue developing alearning culture, share knowledge Established communities ofpractice to intentionally and expenditure. Improved budgeting processes for income and outcomes. support relationshipbetter management practices Customer Relationship Management system and Streamlined internal processes to utilise better our consistent, practical training to alltravellers andtrip leaders. New training material allows Compassion to provide trip leaders during theField Experience. incident assessment andmanagement process used by terms andconditions for non-employee travellers, andan through thecreation oftravel policies for alltravellers, Risk mitigationandlegalcompliance have beenimproved outcomes ofeach Field Experience. quotes for Field Experiences, andreport onthefinancial allow Compassion to provide accurate estimates and New financial technology, functionalityandprocesses trips for Compassion Australia. members. Inturn, this willreduce thecost oforganising processes has significantly reduced theworkload for staff The consistency andease ofuse ofthenewsystem and the CRMsystem. to alltravellers, theresults ofwhichare also recorded in software automatically sends apost-trip feedback survey Customer Relationship Management (CRM)system. The completion, includinglinkingtheField Experience to our systematically track aField Experience from inceptionto A system was developed members allowing to staff

Annual Report 58 Compassion Australia 59 Review ProductReview Offering Lifecycle Supporter The projects below were part ofTCPT’s Initiation Phase. InJuly 2014, Compassion Australia commenced Project Planningactivities around TCPT. The TCPT project involves globalcollaboration andcoordination. Itis expected to take three years to complete, withphased deployments during thattime. Transform Core Processes with Technology (TCPT) Workforce Planning future plans. requiredhas thestaff to achieve its helps Compassion Australia ensure it To develop aworkforce planthat Compassion’s brand. supporters, andcontinuously builds programming, deeply engages holistic childdevelopment delivereffectively age-appropriate empowers ourfield partners to world-class ministry modelthat the viewto redesign anintegrated Review ourproduct with offerings supporter experience. efficiency andimprove the of technology to enablegreater core processes using thepower To redesign Compassion Australia’s to feed into atechnology solution. Design oursupporter experience PURPOSE PURPOSE PURPOSE

supporter experience. understandBetter theideal between children andsponsors. process inorder to reduce wait time Revolutionise thecorrespondence engagement andacquisition. Improve supporter experience, and theChildSurvival Program. the Leadership Development Program upcoming programmatic changes to Complete internal analysis on redeveloped products. testing onpotential newand Conduct external research and and highperforming workforce. Enable andsupportanengaged, agile is alignedwithits strategic direction. Ensure Compassion Australia’s workforce GOALS GOALS GOALS OUTCOMES OUTCOMES OUTCOMES expected to finish infinancial year 2015. The project was delayed, withtheoutsourced work the project deliverables. The Executive Team worked withaconsultant to manage future TCPT projects infinancial year 2015. implementing therecommendations willform part of been provided to theExecutive Team. Further work The product review offering recommendations have achieved andsustained. to ensure thedesired workforce characteristics are An actionplanhas beendeveloped, outliningstrategies identified anddocumented. Compassion Australia’s strategic direction have been The workforce characteristics required to achieve Annual Report 60 Compassion Australia 61 BIG BIG BIG Looking forward, Compassion willfocus onthefollowing strategic projects to fulfilthePhase 2: Transition to Growth strategy over thenext three years. 2:Phase Transition to Growth Future Initiatives BIG SMALL SMALL SMALL DELIVERABLES DELIVERABLES DELIVERABLES Enhance digital presence opportunities Development ofdenominational Youth Product Development partnered with Compassion. Thefollowing smallrocks aimto outworkthis goal. In financial year 2015, Compassion Australia will focus and onidentifying reaching out to supporter groups whohave not yet Acquire supporters andengage new SMALL DELIVERABLES BIG Compassion’s key strategic goals The projects thatwillfacilitate The detailed tasks whichwill DELIVERABLES for thenext three years SMALL ROCKS outwork thesmallrocks Compassion’s bigrocks website, to engage better withsupporters andimprove theirexperience as sponsors. We willenhance ourdigital presence, includingsocial media channels andour engaging withnewchurch denominations. and develop newopportunitiesidentify for growth inthechurch sector, including Compassion Australia worksprimarily through local churches. This project will people to supportCompassion’s workinanengaging andaffordable way. Aimed atChristian teenagers, theproject willprovide anopportunityfor young BIG ROCKS BIG SMALL DELIVERABLES SMALL

DELIVERABLES BIG BIG BIG BIG BIG BIG BIG BIG BIG BIG BIG SMALL SMALL SMALL SMALL SMALL SMALL SMALL SMALL DELIVERABLES DELIVERABLES DELIVERABLES DELIVERABLES DELIVERABLES DELIVERABLES DELIVERABLES DELIVERABLES Ministry impact Transforming hearts Learning andreflective culture Resource stewardship Processes fit for purpose TCPT Deepen engagement to secure retention Cementing relationship servicing ministry-wide impact. By creating alearning andreflective culture, and transforming thehearts ofoursupporters, and volunteers, staff wewillseea peopleandcultureDevelop (TCPT), wewillensure ourprocesses are fit for purposeandthatweare stewarding our resources well. By embracing newtechnologies andrefining ourprocesses through theGlobal Transform Core Processes with Technology initiative andprocessesRevolutionise systems consolidate ourcurrent supporter base. By deepeningengagement withcurrent supporters andcementingourrelationship servicingpeople andprocesses, wewill Delight andretain existingsupporters SMALL SMALL SMALL DELIVERABLES DELIVERABLES DELIVERABLES engagement ofPrayer Partners, andexpanding ourIndigenous Initiative. Enable Compassion’s ministry to have greater impact by increasing thenumberand values and cultural behaviours. Field Experience trips, andstrengthening theoutworkingofCompassion’s core heart for children livinginpoverty, through ourorganisation’s prayer culture, staff Promote adeeper connection withCompassion’s ministry, particularly God’s communities ofpractice, andformal training opportunities. Promote aculture oflearning withinourorganisation, includingthrough practices are providing adequate return oninvestment. Human Resource departments to facilitate cost-saving projects andensure existing Further improve uponourfinancial stewardship by engaging our Finance and internal communication framework, andworkingarrangements. internal departmental servicingrequests, compliance management processes, Review andrefine Compassion Australia’s standard functionaloperations, including The project aimsto revolutionise ourcore processes using technology. new techniques andtraining for ourSupporter members. Engagement staff This project involves redeveloping aspects ofoursponsorship collateral, as wellas Management system for animproved supporter experience. Servicing guidelines andprocesses willbebuiltinto theCustomer Relationship

Annual Report 62 Compassion Australia 63 Compassion’s Scorecard metrics forourfifth focusarea, God. feedbacksurvey to assist with ongoingsupporter and staff development. Compassion has chosen not to develop level agreements and statistical measures from ourreporting systems, while the qualitative metricsare based on five focusareas: children, supporters, staff and church. The quantitative metrics serviceare based ondifferent Compassion Australia’s customised scorecard measures ourprogress againstourstrategic goals forfourofour Correlating globalmove/s: live Compassion; transform core processes withtechnology Inspired, capable together andequippedpeopleworkingeffectively Staff: Our Correlating globalmove/s: mobilise theChurch; transform core processes withtechnology Vigorously take holdofourmission so thatbothchildren inpoverty andchurches flourish His Church: Correlating globalmove/s: strengthen sponsor engagement; transform core processes withtechnology Build strong relationships withsupporters andjourney withtheminministry Supporters: Our Correlating globalmove/s: maximise ministries Positive outcomes inthelives ofchildren Children: MEASURE MEASURE MEASURE MEASURE Percentage whobelieve they ofstaff can achieve theirworkload withinthehours they are compensated to work Percentage whobelieve Compassion ofstaff is afunplaceto work Percentage whobelieve they ofstaff experience healthy workingrelationships Percentage whobelieve workingfor ofstaff Compassion gives them thechanceto live outtheirChristian faith Percentage whowouldrecommend ofstaff Compassion as aworkplaceto family andfriends Number ofactive functionalchurch relationships Percentage ofsupporters whofeel valued by Compassion Percentage ofsupporters whobelieve Compassion demonstrates Christian values Percentage ofsupporters whobelieve Compassion demonstrates goodstewardship withtheirdonations Percentage ofsupporters whowouldrecommend Compassion to theirfriends orfamily members Percentage ofsupporters writing to theirsponsored children inthelast 12months Percentage ofcurrent supporters withatenure ofthree years ormore At least 80percentofdonationsdirectly benefit Compassion assisted children Number ofchildren sponsored by Australians Amount ofCritical Interventions fundingsentfrom Australia perAustralian supported childeach year Average timeachildwaits to receive asponsor Percentage ofchildren receiving atleast twosponsor letters peryear Percentage ofsponsor cancellations Percentage ofchildren sponsored by Australians whosuccessfully complete theChildSponsorship Program $58.97 ACTUAL ACTUAL ACTUAL ACTUAL (JUNE 2014) (JUNE 2014) (JUNE 2014) (JUNE 2014) 3.3 months 100,996 75.64% 94.87% 93.59% 71.41% 28.43% 69.23% 79.93% 41.13% 67.01% 6.84% 63% 67% 88% 79% 83% 799 TARGET TARGET TARGET TARGET less than4months (JUNE 2014) (JUNE 2014) (JUNE 2014) (JUNE 2014) 95-100% 95-100% 103,941 45-50% 55-60% 75-80% 80-85% 80-85% 80-85% 80-85% 35-40% 75-80% 55-60% 6.50% 80% 25% $40 700

Annual Report 64 Compassion Australia 65 From Director theFinance Please note: Full statutory financial accounts are available at www.compassion.com.au/annualreports at available are accounts financial statutory Full note: Please advocacy initiatives accounted for theremaining 1.57percent. used for program thechildren activities benefitting weminister to, while expenditure to an actualof20.07percent.78.36centfunds were fundraising activities decrease from ananticipated 21percentoftotal A focus onfinancial stewardship saw expenditure onadministration and previous year. grew to 103,751, representing a1.43percentincrease compared to the children, caregivers andstudents supported by Australian sponsors experienced growth throughout financial year 2014. Thenumberof In lightofthese economic realities, Compassion’s core programs still growth atbest. Consequently, thecharitable sector to was expect left low to moderate continued to bedebtreduction ahead andsaving, ofcharitable giving. average Australian household’s priority throughout financial year 2014 wealth ofAustralians economic is data building, indicates thatthe markets have recovered from theGlobalFinancial Crisis andtheoverall environments for thecharitable sector throughout theyear. Whileasset Domestic andglobaleconomies continued to provide challenging bysupport thosemostaffected Typhoon Haiyan. Philippines inNovember 2013. Theappeal raised more than$679,000 to Income growth also came through anappeal for Typhoon Haiyan inthe in over five years, reflecting theincreasing costs of program delivery. Child Sponsorship Program rate increase. This was ourfirst rate increase an income growth of5.69percent.Primarily, this growth came from our Financial year 2014 saw ourtotal income rise to $72million,representing in the charitable sector andthe challenging economic environment, Compassion experienced moderate growth. Compassion Australia’s financial position remained strong throughout financial year2014. Despite low growth Finance Director Ben Dodd projected future ofsteady, positive growth. Overall, Compassion remains inastrong financial position,witha platform for growth despite thechallengingeconomic environment. and commitment ofstaff, advocates and volunteers, provide asolid plans (as outlinedonpage 52)coupled withthefaithfulness ofsupporters ever monthly income for Compassion. OurTransition to Growth phase Capacity phase endedwellwiththemonthofJuneseeing thehighest Compassion wellfor this next Transition to Growth phase. TheBuilding resources into thestrategic phase ofBuildingCapacity has positioned Looking ahead, ourjourney towards 2020looksstrong. Investing our as planned(refer to theFund Movement table onpage 81). net surplus of$1.76 million,has seenthis fundreserve initiative progress including theplannedOperating Fund surplus of$722,000andoverall financial stability. Compassion’s 2014 endoffinancial year position, mission andthefundingofoperational initiatives, whileensuring ongoing to ensure theright fundstructures are inplaceto supportCompassion’s year initiative to restructure reserve funds. Theaimofthis initiative is In ourfinancial management, work continued on Compassion’s multi- Board Declaration Chairman oftheBoard John Bond This declaration is madeinaccordance witharesolution ofthedirectors. (b) Inthedirectors’ opinion,there are reasonable grounds to believe thattheorganisation willbeableto pay its debts as andwhenthey become (a) Thefinancial statements andnotes as setouton page 67 to 81are inaccordance withtheCorporations Act 2001and: The Board ofDirectors ofCompassion Australia declares that: due andpayable. ii. Give atrueandfair viewofthefinancial position as at30June2014 andoftheperformance for the year endedonthatdate ofthe company. i. Comply withAustralian Accounting Standards, and Vice ChairmanoftheBoard Mike Jeffs

Annual Report 66 Compassion Australia 67 Source ofFundsSource into our programs. religious background does notprevent himorherfrom beingaccepted Sponsorship Program represent awidevariety ofreligious beliefs. Achild’s programs. Children registered inourChildSurvival Program andChild for communities orindividuals participating inrelief anddevelopment or membership ofaparticular religious group must not beacondition According to theguidelines, theacceptance ofspecific religious beliefs Taxation Officeandthe Department of Foreign and Affairs Trade (DFAT). activities must comply withtheguidelines setoutby boththeAustralian Development Program, Compassion’s overseas aidanddevelopment To tax beableto deductibilityondonationsto offer theLeadership Leadership Development Program) are nottax deductible. donations receipted into theCompassion Eternity Fund (BibleFund and Disaster Relief Fund, Critical Interventions andSponsorship.All PLUS Sponsorship Program, ChildSurvival Program, Christmas Fund, gifts, Fund is tax deductible to thedonor, includingdonationsto theChild All income receipted into theCompassion Overseas AidandDevelopment Tax Deductibility program has beendesigned andapproved. do notmake anappeal for contributions from oursupporter base untila utilised for thepurposes for whichthey were raised ordonated, andwe department clearly understand thedesignation offunds. All funds willbe carefully worded andprepared so thatboththedonorandfinance Internally, Compassion Australia ensures allcollateral soliciting funds is person was $593.90. in netrevenue for Compassion; theaverage gross amountraised per program orinitiative. Intotal, fundraisers generated more than$174,600 cent didso onlineand53percentfundraised for aspecific Compassion for Compassion inavariety ofways. Ofthepeoplewhofundraised, 79per Fundraise as well.This year, more than290individuals choseto fundraise everyone involved. We acceptfunds raised outside Everyday Hero andGo Hero andGoFundraise to make theprocess as efficient as possible for our behalf, wehave teamed upwiththeonlinefundraisers Everyday of external supporters. For supporters whowouldlike to fundraise on internal initiatives, suchas direct mailappeals, andthrough theefforts Compassion Australia conducts fundraising through twomainchannels: relevant government regulations inthestate inwhichitis performed. All ofCompassion Australia’s fundraising is doneinaccordance withthe Fundraising to seeCompassion continue to grow and to seemore children released from poverty inJesus’ name. —Australian churches, businesses andindividuals—as well asstrategic investments andasset management, Compassion doesnotreceive any government funding; instead, we rely onthe generosity ofoursupporters tax-deductibility guidelines. Christians to beeligible,andtherefore theprogram falls outside ofthe as wellas one-on-oneChristian mentoring. This means students must be develop Christian leaders through intensive Christian leadership training, However, theLeadership Development Program is specifically designed to

worth more to thefield countries. dollar atthestart oftheyear has meant Compassion Australia’s income is movements inexchange rates. Thecontinued highvalue oftheAustralian markets withfinancial instruments thatprovide certainty against adverse Compassion Australia partially managed thevolatility inglobalcurrency Compassion’s globalheadquarters located intheUnited States. in each oftheappropriate field countries. This process is overseen by All funds are dispersed directly to theCompassion International offices interest oncash reserves, whichwas reinvested backinto theministry. During financial year 2014, Compassion Australia earned $312,229in accounts, suchas at-call accounts andshortmaturing term deposits. Compassion Australia invests cash reserves inlow-risk, interest-bearing Cash Management rule, thefollowing table sets outthestandard depreciation periods used: purchases. All capital purchases are pre-approved by theCEO. As ageneral Compassion uses thestraight-line methodofdepreciation for capital Capital Assets CATEGORY Buildings Office equipment Motor vehicles Fundraising equipment Computer equipment 4.44 years4.44 3.3 years

PERIOD 50 years 10 years 3 years 3

Board ofDirectors. are interest-bearing deposits andotherinvestments as determined by the to make moderate investment returns. investment Thepermitted vehicles The goalofCompassion’s investments is to preserve existing capital and guidelines andapproved investment vehicles. would undertake. They are reflective of Compassion’s investment goals, decisions are madewithintheboundaries ofwhatareasonable investor made withcare, skill,prudence,diligence andanalysis. All investment All reasonable are efforts made to ensure investment decisions are of theBoard ofDirectors. decisions andguidelines are approved by theMinistry Services Committee the flexibility to send money to thefieldwhenneeded. Allinvestment aimed atprotecting andbuildingonourreserves, whileallowing for Compassion Australia employs aconservative investment approach Investments with theDepartment ofForeign Affairs andTrade. to ascertain how these ourcurrent changes willaffect andfuture dealings through AusAID, Compassion is keeping acloseeye onthese developments While Compassion doesn’t currently receive fundingfrom thegovernment (AusAid) became apart oftheDepartment ofForeign Affairs andTrade. During financial year 2014, the Australian agency for aidanddevelopment Compassion Australia does notcurrently receive government funding. FundingGovernment Our current investments include: Commercial property holdings Commercial property accounts Interest-bearing cash Performance ofinvestments Valuation ofinvestments • • • • • • • Cash reserves invested inarange ofinterest-bearing Interest earned from interest-bearing cash accounts totalled $312,229. (2013: 4.1percent). The weighted average interest rate was 3.07percent for theholdingsare realised. are leased andprovide anincome stream untilfuture plans Commercial property holdingsfor future expansion, which deposit accounts. preparing asecond property for future use. Compassion Australia $148,974 ofrental income. We have been One property has beenleased andduring theyear has earned Compassion Australia currently has twoinvestment properties. Investment accounts are subjectto floatinginterest rates. Commercial property holdingsare valued atcost. investment, plus any interest earned butnotreceived, as at30June. Interest-bearing cash accounts are taken atface value ofthe

Annual Report 68 Compassion Australia 69 Sponsorships andBeneficiaries Sponsorships work onpage 10).Theterm beneficiaries refers to children registeredthe in and continues through schoolage andbeyond. (Find outmore abouthow we implemented through four programs thatstarts even before achildis born Compassion’s holistic childdevelopment modelis along-term approach and families weserve inthedeveloping world. more engaged sponsors andconsistency ofrelationship for thechildren existing sponsors to fundourprograms, buttheeven greater benefits of we have observed inrecent times. These returns are notonly inretaining sponsor retention andeducation programs following thesustained returns Additionally, wehave continued to addto ourinvestment infocussing on (see Compassion’s Scorecard onpage 64). sponsorships. We are starting to seepromising results from this change effectiveness andefficiency. Withthis came an expectation ofincreased 2013, this process saw allocation asignificant changeinstaff to improve Network to churches to majordonors. Towards theendoffinancial year our partnership andsponsorship activities, from theChildAdvocate 58). As part ofthis process, Compassion took athorough lookatallof saw theroll-out ofaprocess oforganisational development (seepage which forms part ofour2020Vision (seepage 50).During Phase 1,we Financial year 2014 saw theconclusion ofPhase 1:BuildingCapacity, past three financial years would have beenmuch lower than was actually realised. and 7.11percent forthe past24months. Without this improvement, ouroverall sponsorship growth during the cent in April 2011 to 6.84 percent in June 2014.Ourcancellation rate was successfully kept between 6.55 percent our improved rate ofsponsorretention, asshown by ourimproved sponsorship cancellation rate—from 8.05 per slow decline inthe pastfouryears (2011: 10,420;2012:9866;2013: 9622; 2014: 8990). We have, however, maintained sponsorship acquisitions (seethe Finance Director’s letter). Ournumberofnewbeneficiarieshasexperienceda This year, coupled with the previous three years, has continued to be a challenging economic environment for new around 108,900beneficiaries across ourthree programs, representing financial year 2015,weare forecasting anincrease from 103,751 to 103,751, representing a1.43percentincrease. As welookforward to Our total beneficiaries for financial year 2014 grew from 102,289 to sponsored withCompassion’s ChildSponsorship Program worldwide. year 2015weanticipate there to bemore than1.5millionchildren surpassing 100,000children inMarch 2014. By theconclusion offinancial core program, ChildSponsorship Program, increased to atotal of100,996, 177, dueto alarge numberofstudents graduating from theprogram. Our of students inourLeadership Development Program decreased from 180to enrolled ineach ofthecentres Compassion Australia supports. Thenumber As aresult, this figure reflects the total numberofmothers and children as awhole,rather thansponsoring individualmothers andtheirbabies. however, thatCompassion Australia funds ChildSurvival Program centres Australians decreased slightly from 2757to 2578.Itshouldbenoted, During theyear, thenumberofmothers andchildren supported by Survival Program andstudents intheLeadership Development Program. Child Sponsorship Program, as wellas mothers andbabies intheChild a significant growth of4.96percent.

The term beneficiaries refers to children registered in the Child Sponsorship Program as well as mothers and babies in the Child Survival Program and students in the Leadership Development Program. Development Leadership the in students and Program Survival Child the in babies and mothers as well as Program Sponsorship Child the in registered children to refers beneficiaries term The * Approximate number of mothers and babies supported (mother and child together count as one) as count together child and (mother supported babies and mothers of number Approximate * ** Number of Leadership Development Program students sponsored students Program Development Leadership of Number ** *** Number of supporters with monthly commitments to this fund, including Sponsorship PLUS commitments commitments PLUS Sponsorship including fund, this to commitments monthly with supporters of Number *** Critical OTHER COMMITMENTS Interventions*** Total Beneficiaries Leadership Development Program** Child Survival Program* Child Sponsorship Program BENEFICIARY BREAKDOWN Total Net Growth % Beneficiaries Net Growth Cancelled Beneficiaries New Beneficiaries BENEFICIARIES Worldwide ChildSponsorships Australian-supported Child Sponsorships SPONSORSHIPS SPONSORSHIPS ANDBENEFICIARIES

1,428,955 100,996 100,996 103,751 103,751 27,332 27,893 27,833 27,461 27,425 1.43% 2014 2,578 8,990 7,528 1462 177 1,350,590 3,122 102,289 102,289 99,352 99,352 3.15% 2013 6,500 2,757 9,622 180 1,244,910 1,244,910 96,405 96,405 99,167 3,535 2,610 6,331 9,866 152 99,167 95,63292,451 3.70% 2012 1,150,500 95,632 10,420 93,099 93,099 3.44% 2011 2010 3,181 2,423 7,239 110 1,080,919 92,451 11,751 90,769 90,769 6.27% 5,453 1,589 6,298 93

Annual Report 70 Compassion Australia 71 Program Performance $100,000.00 $150,000.00 $200,000.00 $250,000.00 $300,000.00 Total Program: theChildSurvival givingfor Program Performance Child Survival Interventions—increased significantly after the devastating Philippines Typhoon in November 2013. DevelopmentLeadership Program remained steady. OurDisaster Relief Fund—which helps facilitate Critical Program. As aresult, supportforthe Program Child Survival declined slightly while contributions to the In financial year 2014, Compassion focussed onmarketing and promoting ourflagship Child Sponsorship • • $50,000 The reported decrease can bemainly attributed to astrategic decision to focus onchildsponsorship acquisitions throughout financial year 2014. This was a14.9 percentdecrease onlast financial year. Compared to gross income of$2,200,000for theChildSurvival Program infinancial year 2013, financial year 2014 brought in$1,870,000. $0.00 July August Child Survival Program September Giving October November Child Survival Program December Total giving includes regular commitments, non-recurring payments and giving by church partnerships church by giving and payments non-recurring commitments, regular includes giving Total January GivingTarget February March Linear ( April Child Survival Program May Giving)

June 1000 1200 1400 -600 -400 -200 Child Sponsorship ProgramChild Sponsorship Performance Total sponsorships, new totalnetlostchildren andnetgrowth perfinancial year: Total sponsorships financial for new year 2014,children totalnetlost andnetgrowth permonth: Commitment count BAR trends 200 400 600 800 0 • • • • Net lost children to acquisition ratio Year-end sponsorships Net growth Net lostsponsorship commitments New sponsorship acquisitions CHILD SPONSORSHIPS 10,000 12,000 traditional drop inacquisitions during August andSeptember. This thenumberofsponsorship affected acquisitions for financial year 2014. In financial year 2014, Compassion Australia moved Compassion Sunday—one ofour key ministry initiatives—from May to August to counter the Compassion experienced adrop inacquisitions during January. This is aseasonal trend, andis partly driven by Compassion’s end-of-year processes. sponsorship cancellations. Child sponsorship income grew by more thansixpercentonlast year, whilethecancellation rate remained relatively steady with6792 Financial year 2014 total acquisitions were targeted throughout theyear at9182andfinalised at8436sponsorships. 2,000 4,000 6,000 8,000 0 July August 2009/10 September 2014 No. 100,996 October 1,644 1,644 8,436 6,792 2010/11 -

2014 % November 80.51 -44.21 -10.46 1.65 4.90 Year EndSponsorships

2013 No. 99,952 6,475 2,947 9,422 December 2011/12 - 2013 % New Acquisitions -10.86 68.68 -0.84 3.06 4.44 January 96,405 3,306 6,196 9,502 2012 No. NewAcquisitions February - 2012/13 2012 % -13.04 65.21 41.89 3.55 0.50 93,099 2,330 9,455 7,125 Net Lost Commitments March 2011 No. NetLost Commitments - April 2013/14 2011 % -54.61 -16.62 75.36 14.79 2.57 90,769 11,340 6,207 5,133 2010 No. May -

NetGrowth 84,000 86,000 88,000 90,000 92,000 94,000 96,000 98,000 100,000 102,000 Net Growth 2010 % -23.60 -44.12 -44.12 June 54.74 5.99 9.74

Commitment count LINE trends

Annual Report 72 Compassion Australia 73 155 160 165 170 175 185 185 -10 Number of Leadership students worldwide supported by Compassion supported Australia studentsworldwide over thepastfinancial Numberyear: ofLeadership lost commitments andnetgrowth: Total Development Program Leadership recurring commitments financial for year 2014permonth, assignments, detailingnew net Development ProgramLeadership Performance 10 15 -5 0 5 • • • • completing theprogram, rather thansponsors cancelling theirsupport. For thepurposes ofthegraph below, itshouldbenoted thatthemajority ofnetlostcommitments are theresult ofstudents graduating and seek sponsors for unsponsored students untilallstudents have asponsor. Australia, madepossible by supporters whogive generously to theLeadership Development Program Fund. Compassion Australia willcontinue to In additionto students the177 sponsored by Australians, anadditional10students awaiting sponsorship were fully supported by Compassion Leadership Development Program income grew by $10,829, or1.30percent,onthelast financial year. The numberofstudents inourLeadership Development Program dropped slightly from 180to 177. July July August August September September October October November November December December New Acquisitions January January February February Current Sponsored Leadership Development Students March March Net Lost Commitments April April May May Net Growth June June $1,000,000.00 $1,200,000.00 $1,400,000.00 $1,600,000.00 $1,800,000.00 $2,000,000.00 Critical Interventions givingover thepastfinancial year: Interventions Critical Interventions Critical $200,000.00 $400,000.00 $600,000.00 $800,000.00 • • • • • Gifts ofCompassion,Gifts catalogue children ourgift benefitting inneed, raised $661,305of revenue for Critical Interventions. the destruction caused by Typhoon Haiyan. The Disaster Relief Fund increased inincome from $119,407 to $800,084,largely as aresult ofcontributions towards assisting thePhilippines after The result as at30June2014 was $1,113,900 against atarget setfor $950,000. The Compassion Appeal wentoutinmid-May andfocussed onproviding children withaccess to safe buildings,includinghomes andclassrooms. disaster relief. The Critical Interventions Fund income grew 7.97 percent,or$702,366,largely as aresult ofasuccessful Compassion Appeal anddonationstowards Giving to Critical Interventions anddisaster relief infinancial year 2014 totalled $9,419,877. $0 July (Inc Gifts ofCompassion)(Inc Gifts Critical Interventions Giving August September

October (Inc Gifts ofCompassion)(Inc Gifts Critical Interventions GivingTarget November December January

February (Inc Gifts ofCompassion)(Inc Gifts Linear Critical Interventions GivingTarget March April May June

Annual Report 74 Compassion Australia 75 Income Statement to page 32. more information onthechallengingeconomic environment, please refer future growth inthemidst ofachallengingeconomic environment. For phase was forecast to below to moderate as wefocussed onpreparing for to enablegrowth. Ourexpected growth during ourBuildingCapacity number ofobjectives to ensure thenecessary foundations were inplace strategic phase: BuildingCapacity. During this phase wecompleted a direction. Financial year 2014 represented thelast year ofatwo-year Overall, ourincome growth for theyear reflects ourstrategic and tactical appeals.and developing andcontinuing one-off keeping ourcurrent supporters engaged, partnering withnewsupporters that ourcurrent income level is sustainable, enablingus to focus on Christmas, appeals. childandfamily as wellas one-off gifts, This means of ourremaining income comes through semi-recurrent sources suchas recurrent dueto ourpartnership withourcurrent supporters. Themajority source. Approximately 85percentofourtotal income is considered is through ourChildSponsorship Program whichis arecurrent income by any changes to government funding.Ourmainsource ofincome not currently receive government weare funding, directly notaffected Compassion Australia’s income is sustainable year onyear. As wedo Typhoon Haiyan. our supporters ingivingto relief inthePhilippines efforts inthewake of cent compared to last year. This was dueto thegenerous response from cent. Income from disaster relief also increased by $681,000or670per 2014January coupled withacontinued low cancellation rate of6.84per grew by $3.28million or6.51percent,primarily dueto arate increase in Child Sponsorship Program anddisaster relief appeals. Childsponsorship cameand gifts through anumberofareas, mostnotably through our forecast; however, itis stillapleasing result. Ourgrowth indonations year by $3.87millionor5.69percent.This was not as highas originally Our income for theyear was $72million,whichwas anincrease onlast deliberate objective to build reserves forfuture operations (refer to Fund Movements onpage79). Compassion Australia ended financial year 2014with an overall surplus of$1,760,481. Ending the year insurplus a was Capacity phase. This was result abetter compared to last year in which includedfundingthestrategic initiatives through theBuilding spent 20.07percentor$14.1 milliononadministration andfundraising With regards to expenditure for thefinancial year, Compassion Australia $60 milliononprogram related services. million inrevenue for theyear whichwillallow us to spendapproximately phase: Transition to Growth. This willprovide us withapproximately $75.4 initiatives andactivities andreflects thatweare inournext strategic income growth target of4.72 percent.This target is based onplanned same as theprior year. For financial year 2015wehave setamodest The forecast globalanddomestic economic climate remains muchthe programs. This expenditure was used: In financial year 2014, 79.93 percentofour expenditure was used on process efficiency. project, aimedatimplementingnewtechnology solutions to increase as weembarkontheTransforming Core Processes withTechnology on administration andfundraising infinancial year 2015 to increase which expenditure endedat20.27percent.We expect expenditure • • • • To purchase goods andservices for thedirect benefitofthe development programs For community education sponsored children To facilitate sponsors’ personal relationships withtheir children inourprograms For thedevelopment, delivery andsupervision ofchild

Balance at30June(year endbalance) Other amounts transferred (to) orfrom reserves Excess /(shortfall) ofrevenue over expenses Adjustments orchanges inequity Balance at1July (commencing balance) STATEMENT FOR THEYEARENDED30JUNE2014 OFCHANGESINEQUITY EXCESS /(SHORTFALL) OFREVENUEOVER EXPENDITURE(TOTAL COMPREHENSIVEINCOME) TOTAL EXPENDITURE Domestic programs expenditure Expenditure for international political orreligious proselytisation programs Total international aidanddevelopment programs expenditure Non-monetary expenditure Accountability andadministration Fundraising costs Community education International programs International aidanddevelopment programs expenditure EXPENDITURE TOTAL REVENUE Revenue for international political orreligious proselytisation programs Other income Investment income Grants Bequests andlegacies Donations andgifts REVENUE INCOME &EXPENDITURE STATEMENT FOR THEYEARENDED30JUNE2014 - Government, multilateral andprivate - Public - Program supportcosts - Funds to international programs - Otheroverseas - OtherAustralian - Department ofForeign Affairs andTrade - Non-monetary - Monetary

70,244,245 71,267,145 70,197,752 72,004,726 46,426,548 4,832,261 1,760,481 8,571,182 1,103,145 9,264,616 12,961,353 14,721,834 1,760,481 173,672 308,440 255,469 46,493 2014 $ 2014 $ ------68,130,117 12,961,353 44,038,319 67,066,006 11,897,242 67,020,373 67,250,474 1,064,111 1,064,111 8,330,859 1,056,493 5,867,671 7,727,031 2013 $ 2013 $ 360,853 429,135 45,633 89,655 ------

Annual Report 76 Compassion Australia 77 Key PerformanceKey various funds. The following tables show asnapshotofCompassion’s financial performance over the pastfive years across our TOTAL Other Indigenous Income Bible Fund Leadership Development Program Fund Endowment Operating Operations Unsponsored Children’s Fund Fund Fund Disaster Relief Fund Critical Interventions Fund Gift Christmas Fund Fund Child Survival Program Child Sponsorship Program INCOME BY SOURCE Return onfundraising investment perdollarspent($) Revenue Children Sponsorship retention rates (%) Child cancellation rate (%) Income generated memberpermonth($) perstaff KEY PERFORMANCE INDICATORS per growth

sponsor

(%)

72,004,726 100 53,711,971

2,636,427 3.66 1,870,901 2,199,686 8,619,793 111,866 0.16 556,548 800,084 483,958 0.67 2014 $ 847,023 1.18 0.06 44,411 63,242 0.09 58,816 0.08 2014 % 11.97 74.60 1.11 3.05 2.60 0.77

INCOME BY SOURCE FOR 2014 68,130,117 100 50,428,629 Unsponsored Children Relief Critical Interventions Fund Life Assurance Gifts Christmas Fund ChildSurvival Program ChildSponsorship Program 2,112,439 8,598,104 2,425,535 3.56 2,203,740 2013 $ 101,158 0.15 836,194 1.22 693,754 1.02 119,407 447,388 65,550 0.10 85,291 12,928 0.02 2013 % 12.62 74.02

0.66 0.17 3.10 3.23 0.13 43,952

2014 93.16 5.69 4.863.330.03 1.35 1.341.33 6.84 7.71 64,973,986 100 48,752,349 1,970,545 1,924,662 7,640,553 2,227,591 3.43 444,862 700,656 1.08 115,188 0.18 540,470 0.83 104,147 0.16 451,130 2012 $ 41,841 0.07 59,992 0.09 11.97% 74.60% 1.11% 3.66% 3.05% 2.60% 0.77% 43,735 2013 93.28 6.72 8.73 2012 % 0% 75.04 11.76 0.68 0.69 3.03 2.96 62,880,239 100 47,373,263 1,862,212 1,640,086 1,924,560 3.06 8,068,739 402,065 115,502 0.18 120,011 548,071 0.87 2011 $ 576,742 0.92 157500 0.25 44,381 TOTAL 16,878 0.03 74,610 0.12 2012 20112010 93.34 OtherIncome Indigenous Initiative Bibles Leadership Development Program Endowment Operations Operating Fund 6.66 9.00 2011 % 12.83 75.34 0.64 2.96 2.61 0.19 38,126 92.10 8.87 7.90 45,475,911 62,862,701 1,612,103 2,001,926 1,805,454 8,022,414 1,790,057 116,167 616,917 253,432 466,727 2010 $ 599,319 68,362 33,912 2010 % 37,961 15.00 92.80 0.16% 0.06% 0.09% 1.18% 0.08% 0.67% 100% 72.34 12.76 1.32 7.20 7.11 0.95 0.18 0.11 3.18 2.85 2.57 0.98 0.41 0.06 2.87 0.74 100 52,000,000 54,000,000 56,000,000 58,000,000 60,000,000 62,000,000 64,000,000 66,000,000 68,000,000 70,000,000 72,000,000 INCOME ANDEXPENDITUREFOR THE LAST FIVEYEARS TOTAL Administration Fundraising Community education Program EXPENDITURE 2010 70,244,245 55,044,223 4,832,261 1,103,145 9,264,616 2014 $ 2014 % 2011 78.36 13.19 1.57 6.88 100 TOTAL EXPENDITURE FOR 2014 52,414,811 67,066,006 Administration Fundraising Community Education Program 1,056,493 5,867,671 7,727,031 2013 $ 2013 % 11.52 78.15 1.58 8.75 100 64,264,636 49,997,006 2012 5,933,084 1,177,033 7,157,513 2012 $ 100% 78.36% 13.19% 6.88% 1.57% 2012 % 11.14 77.80 1.83 9.23 100 62,565,093 48,138,495 5,691,240 1,710,400 7,024,958 2011 $ 2013 2011 % Income 11.23 76.94 9.10 2.73 100 60,879,058 47,397,726 3,120,629 8,753,111 1,607,592 2010 $ Expenditure 2010 % 14.38 77.86 2.64 5.13 100 2014

Annual Report 78 Compassion Australia 79 Fund Movements and Balance Sheet sustainability ofourincome. the positionfurther. Please refer to page 33for more information onthe continuing to address this ratio withappropriate measures to strengthen is considered to bealow risk as ourincome is reliable andregular. We are current liabilities. This is animprovement onlast year’s ratio of1.05and balance sheet—itstillshows thatwehave sufficient assets to cover our largely dueto significant fixed assets in property and the structure ofour Our current ratio is 1.25;whilethis is noted as beingbelow average— redevelopment ofoneourinvestment properties. This provision was used during thefinancial year as intended onthe rate rise. This by was thefulluse offset oftheprovision for demolition. in program cost liability whichcame aboutbecause ofthesponsorship Our total liabilities increased by $586,116.This was aresult ofanincrease on buildingsandsellingourfleetof vehicles. property, plantandequipment,mainly through accumulated depreciation strategy please refer to page 68.This increase by was adecrease offset in short term investments. For more information onCompassion’s investment equivalents from positive netcash flows, whichhas resulted inincreased by $2,346,597. This is primarily aresult ofanincrease incash andcash to last year’s figure. Total assets increased through thefinancial year equity of$1,760,481. This is anincrease inequityof$696,370 compared healthy. Infinancial year 2014 ourbalancesheetshows anincrease in Overall, ourbalancesheetandfinancial position remain strong and Balance Sheet of financial reserves. financial position. Thisisa reflection of Compassion increasing net assets in order tohold anappropriate level Compassion Australia’s balance sheetand fund movements tables show ahealthy growth inCompassion’s bringing thebalanceto $1,713,781. This was anintentional objective The Operating Fund endedthefinancial year withasurplus of$722,355, necessary by theBoard. applied for its purposeover thecoming financial years, as is deemed a fundbalanceof$1,945,730 three after years. This fundwillnow be financial year 2014, the Future Fund balanceincreased by $709,413 to one percentofourincome to besetaside over aperiod oftime.During was to buildareserve for future operations andexpansion by reserving At thebeginningoffinancial year 2012wecreated the Future Fund. This building reserves for thefuture andreplenishing operating reserves. for future use. Theresultant overall positionreflects two key strategies: of ourrestricted, temporarily restricted andunrestricted reserves, held through oneofthese funds. Thebalances inthese funds represent all expense inevery fund.Every dollarthatis donated to Compassion passes Our statement offundmovements represents allofourincome and Fund Movements used for theintended purposes. during thefinancial year. The remaining reserves inthese twofunds were The Special Overseas Projects andSpecial Grants funds were bothclosed the case withtheDisaster Relief, andChristmas Gift funds. 2013 butwere used during thefinancial year 2014. In particular, this was primarily related to timingas some funds were received infinancial year There were afew funds thatwere runinto deficitthis year. This was purpose inthenext financial year. donations given inJune.This surplus willbeused for theintended This surplus was dueto higherthanexpected Compassion appeal The Critical Interventions Fund also finished withasurplus of$406,530. will beused inthecoming monthsfor theintended purpose. restricted reserve is madeupofamounts whichare paid inadvance and surplus, whichleaves this fundwitha$3,139,693 reserve balance.This The ChildSponsorship Program endedthefinancial year witha$233,125 future operations. to ensure theOperating Fund has asustainable level ofreserves for

TOTAL EQUITY Retained earnings Reserves EQUITY NET ASSETS TOTAL LIABILITIES TOTAL NONCURRENTLIABILITIES Other Provisions Other financial liabilities Borrowings NON CURRENTLIABILITIES TOTAL CURRENTLIABILITIES Other Provisions Other financial liabilities Current tax liabilities Borrowings Trade andotherpayables CURRENT LIABILITIES LIABILITIES TOTAL ASSETS TOTAL NONCURRENTASSETS Other noncurrent assets Other financial assets Intangibles Investment property Property, plantandequipment Other financial assets Trade andotherreceivables NON CURRENTASSETS TOTAL CURRENTASSETS Assets heldfor sale Inventories Trade andotherreceivables Cash andcash equivalents CURRENT ASSETS ASSETS BALANCE SHEETAS AT 30JUNE2014

10,048,491 14,721,834 24,770,325 12,678,033 14,721,834 14,721,834 12,092,292 9,676,983 11,682,747 10,801,976 1,596,043 9,579,575 371,508 409,545 2014 $ 238,449 371,508 97,408 41,565 ------12,911,241 12,961,353 22,423,728 12,961,353 12,961,353 11,031,820 9,093,415 9,512,487 1,660,687 9,462,375 8,453,597 9,198,327 368,960 639,818 2013 $ 368,960 314,160 218,734 ------

Annual Report 80 Compassion Australia 81 TOTAL Indigenous Fund Bible Fund Leadership Development Program Endowment Operations Fund Operating Future Fund Fund Unsponsored Children’s Fund Special Overseas Project Disaster Relief Fund Critical Interventions Fund Living Sponsorship Fund Life Assurance Fund FundGift Special Grants Christmas Fund Child Survival Program Child Sponsorship Program YEAR ENDED30JUNE2013 FUND MOVEMENTS FOR THE TOTAL Indigenous Fund Bible Fund Leadership Development Program Endowment Operations Fund Operating Future Fund Fund Unsponsored Children’s Fund Special Overseas Project Disaster Relief Fund Critical Interventions Fund Living Sponsorship Fund Life Assurance Fund FundGift Special Grants Christmas Fund Child Survival Program Child Sponsorship Program YEAR ENDED30JUNE2014 FUND MOVEMENTS FOR THE BALANCE BALANCE 12,961,353 72,004,726 11,897,242 68,130,117 OPENING OPENING 1,903,682 2,906,568 2,598,402 2,315,678 1,236,317 1,954,871 2,214,520 (145,905) 1,107,473 (109,659) 776,543 186,050 592,173 693,754 600,000 100,081 688,912 730,841 580,012 185,820 810,260 991,426 483,958 421,639 803,052 428,685 772,723 33,433 46,513 24,593 87,018 5,816 5,460 4,886 356 356 50,428,629 53,711,971 - - - 2,425,535 2,112,439 2,636,427 1,870,901 8,598,104 2,199,686 2,203,740 8,619,793 INCOME INCOME (46,513) 556,548 800,084 101,158 836,194 158,735 119,407 447,388 847,023 44,411 65,550 72,211 63,242 12,928 58,816 13,080 (356)

TRANSFERS TRANSFERS (14,693,144) (13,813,720) (2,331,923) (2,345,435) 16,474,029 17,369,233 (491,440) (122,562) (211,241) (555,127) (152,709) (219,969) (80,852) (10,357) (80,008) (78,589) (17,503) (17,352) 672,797 709,413 (3,541)

------

EXPENSES EXPENSES 35,612,023 38,785,702 70,244,245 67,066,006 16,768,530 399,253 17,130,836 722,355 2,000,000 1,351,400 2,006,514 1,376,096 6,909,712 5,867,828 1,010,948 2,576,862 2,815,405 402,608 760,773 209,504 759,162 376,323 419,447

36,480 46,493 45,633 39,262 1,780 930 ------SURPLUS/ SURPLUS/ (DEFICIT) (DEFICIT) 1,002,886 1,064,111 1,760,481 (161,457) (290,872) (151,327) (178,978) (643,531) (267,273) (46,513) 233,125 (94,621) (98,802) (36,246) (26,797) 636,317 101,158 406,530 158,735 709,413 297,213 (1,780) (3,820) (2,082) 13,080 72,211 58,816 (356) (930) 6,628 1,231 3,365 7,661 - 12,961,353 14,721,834 BALANCE BALANCE 2,906,568 3,139,693 CLOSING CLOSING 1,954,871 1,110,838 2,315,678 1,236,317 (145,905) 2,361,401 1,945,730 1,713,781 2,374,494 1,107,473 (147,987) 803,052 961,787 428,685 991,426 780,384 772,723 421,639 130,767 249,707 31,221 60,221 24,593 46,513 87,018 3,106 4,886 5,460 6,691 356 - -

Independent Auditor’s Report

Annual Report 82 Compassion Australia 83 Glossary of Terms Glossary Ministry Relationships andSupporter Ministries teams. and engagement for current supporters and thecost oftheMarketing, Expenses thatrelate directly to income generation, suchas support Fundraising costs development programs. The 26developing countries where Compassion implements child Countries Field Springs, Colorado, USA. development programs from theGlobalMinistry Centre inColorado The overarching organisation thatoversees theGPA andallchild Compassion International deliver childdevelopment andministry outcomes. The local churches infield countries withwhom Compassion works to Church partners development centres inpartnership withourchurch partners. Compassion’s childdevelopment programs are implemented atchild Child Development Centre/Compassion centre from spiritual, economic, socio-emotional andphysical poverty. A humandevelopment modeldesigned to release individualchildren Child development A memberofCompassion’s ChildAdvocate Network. Child Advocate years, andforms part ofour2020Vision. Refers to Compassion Australia’s key strategic goals for thenext three Big rocks Leadership Development Program. as mothers andbabies intheChildSurvival Program andstudents inthe Sponsorship Program, includingthosestillwaiting for sponsors, as well The term beneficiaries refers to children registered withtheChild Beneficiary of theCEO, Finance, HRandIT. Expenses thatare notdirectly related to ourincome, includingthecost Administration costs

My Account into Compassion’s work. developing countries inwhichwework,to give supporters greater insight A Compassion facilitated supporter orchurch trip to oneofthe26 Insight Trips needs through Compassion’s four programs. Addressing each child’s economic, social, physical, emotionalandspiritual development Holistic child offices inIreland andSpain. Scandinavia, SELFrance andTEARFund NewZealand, as wellas satellite Compassion Switzerland, Compassion UK,Compassion USA, Compassion Compassion Italy, Compassion Netherlands, Compassion SouthKorea, Compassion Australia, Compassion Canada, Compassion Germany, The group ofmore than12fundraising countries, whichincludes GPA: GlobalPartner Alliance The globalBodyofChrist. The Church ministry ofCompassion. An individualorgroup thatgives theirfinances, prayer ortime to the Supporter our Leadership Development Program. child through ourChildSponsorship Program orwithastudent through An individualorgroup thatis linked inaone-to-one relationship witha Sponsor (our bigrocks). The projects thatwillfacilitate Compassion Australia’s key strategic goals rocks Small obligations to individualchurches withinthepartnership relationship. local church partners, managing Compassion’s requirements as wellas memberemployed attheCompassionA staff country office whoserves Partnership Facilitator sponsored child. including managing theircontribution details andwriting to their An onlinetool thatsupporters can use to engage withCompassion, Annual Report 84 COMPASSION AUSTRALIA PO Box 1, Hunter Region MC NSW 2310 Phone 1300 22 44 53 Fax 02 4935 5099 Email [email protected] ABN 67 001 692 566

This annual report is also available online at www.compassion.com.au/annualreports PKAR.14.01