FAQ

Our mission and purpose as a public charity is to support underprivileged children succeed in education and achieve safe, healthy, and fulfilling lives. Child Foundation supports children and their respective households to overcome the burdens of poverty and other challenges.

Child Foundation is supervised by a Board of Directors,  who are all serving as volunteers. Their names and information can be found  here, after our staff listing.

The Child Foundation has a comprehensive process, but in summary, the individual first submits their resume to the Development Committee. After an initial evaluation, an interview is conducted, and once approved, they participate as an observer or a non-voting member in all Board of Directors meetings for a period of one year. Post one year period, the Board of Directors may approve the individual to join as Director of the board. Within its board, the Child Foundation has financial, legal, development, and executive committees, in which members participate based on their experience and knowledge. All board members are volunteers.

 Yes, CF always strives to increase the revenue while optimizing operation efficiency to reduce expenses. One example is an implementation of a powerful CRM system. This system allows sponsors to have access to payment information, child profiles, progress reports on students, etc. This can contribute to reducing overhead costs for Child Foundation as well.

Our partners in other countries are completely separate organizations from Child Foundation, registered in their own countries. Child Foundation has an arm’s length relationship with them, we do not have the same staff or individuals on Board or Trustee bodies governing the organizations. All of Child Foundation's partners are nonprofit agencies.

Yes. Child Foundation programs are in full compliance with U.S. Government sanctions law. In Iran and Afghanistan, for example, there are general licenses that entities can use for humanitarian purpose that do not need specific permission. However, for some support, a specific license is required. 

Child Foundation has a specific license from the Office of Foreign Asset Control (OFAC) of the U.S. Department of Treasury to provide humanitarian support to underprivileged children in its child sponsorship program. The latest such license is valid through January 31, 2025. 

Child Foundation utilizes OFAC General Licenses E and G allowing us to raise and send funds for humanitarian efforts, including support to relieve suffering from earthquakes, floods, COVID and other crises; and to increase access to education for nonprofit purposes. Examples of support for increasing educational access to disadvantaged Iranian students includes laptops, tablets, internet access, backpacks, and other school supplies to increase access to education of disadvantaged Iranian students. 

Imported food to Iran for humanitarian purposes is not subject to sanctions, and we apply for this support in our Iranian cosponsorship program (see below). The food is combined with cash stipends for students from sponsors within Iran, and with cash stipends from the U.S. for most students through our OFAC specific license. With the combined support from within Iran, we call this our "cosponsorship program." 

In accordance with the Office of Foreign Assets Control (OFAC) regulations, all amounts are transferred to the bank accounts of our partner organizations in Iran through exchange offices. These organizations are responsible for distributing the funds to the designated bank accounts of the students or their mothers or for purchasing and delivering food supplies as per the received list. Every three months, activity reports are submitted to the U.S. Department of the Treasury and the United States Department of State. The report includes the amount of funds transferred, the name of banks and exchanges, and the recipient of the fund. Financial documents for the past ten years are available on our website, which have been approved by the IRS (Internal Revenue Service) and our certified accountants.

Currently, we use the website BonBast.com to obtain the exchange rates, which have no relation to the Iranian government’s official exchange rate, and it is based on the market rate. All documents related to market rates exchange are kept for internal tracking. 

Child Foundation has an experienced accounting staff and a credentialled controller to ensure funds are spent in accordance with regulations, our donors’ intentions and nonprofit best practices. We voluntarily perform an annual independent audit  that complies with Internal Revenue Service’s regulations. Full financial statements are available on our website. Child Foundation has tracking processes tracing resources directly to children and households and has an annual on-the-ground program assessment/audit to confirm humanitarian support gets to the intended beneficiaries. 

Our Sponsorship Program across all countries provides ongoing economic stability and counseling for children in need, enabling them to remain in school. Sponsorship creates a unique relationship between an individual donor and a sponsored child. By pairing up a child with a sponsor, this child is able to obtain the necessary relief that they need. Generally, children sponsored through Child Foundation's programs are often supported for their entire academic careers. For some children, this is until high school, for others, it may include college.  Sponsor a child now!

Yes, the IRS has conducted two full audits. In 2012 the audit committee of the Internal Revenue Service (IRS) examined all of Child Foundation's accounts for the previous five years and concluded that all income, expenses, and credits had been reported accurately. The IRS letter verified Child Foundation can continue to qualify for exemption from Federal Income Tax and hold its nonprofit 501(c)(3) status. 

Additionally, a thirteen-month IRS audit came to a close on May 1, 2020. The IRS examined two years' worth of documentation, including all governing instruments, contracts, licenses, board and committee meeting minutes, and accounting and financial statements. Specifically, the IRS auditor examined:

• Every wire transfer sent by Child Foundation over the prior two years, including those sent to Afghanistan and Iran. 
• Each memorandum of understanding (MOU) sets out how Child Foundation works with partners.
• Each key employee has transparent reasonable wages. 
• All donations are being applied to the intended campaign or child with only reasonable and reported overhead cost reductions.
• The criteria for selecting children eligible for programs and how needs are assessed. The internal auditing process were reviewed, verifying children receive resources and use them to support their education.
• Our independent audits and related records. 

Child Foundation received a flawless finding from IRS with no changes to our status as a non-profit, tax-exempt organization. The successful audit was no surprise to Child Foundation. We are proud to be a top-rated and transparent organization that puts the welfare of children at the center of all we do.

Working internationally requires careful financial safeguards. Be assured, Child Foundation has never taken or distributed donor resources for personal gain, is in compliance with regulations pertaining to foreign corrupt practices and OFAC sanctions regulations, and has never laundered money to foreign governments, religious or political entities. 

Approximately 90% depends on the allocation/purpose of donations.

Overhead is generally defined as a combination of “management & general,” plus “fundraising” expenses. Based on the Form 990, a nonprofit has three categories of costs: Program, Management and General, and Fundraising. Management and General plus Fundraising make up overhead costs.

Depending on Fund categories defined in FAQ #12 and #17, the amount received by children varies from 75% to 90%. 

All children selected for sponsorship support are from poor families, often living in a female headed household, where the primary breadwinner, such as a father is absent. All students must demonstrate motivation and success in their studies to keep receiving sponsorship support. All the students and households receive counselling support from a social worker, para-social worker or educational counsellor.

Child Foundation facilitates connections between sponsors and children when requested, and also visitations if and when a sponsor visits the country where the child resides. This is a supervised procedure by social service worker to protect both children and families. It is considered the best practice in global child welfare programs.

Afghanistan, Indonesia and Nepal Sponsorship Programs  
Your donation is sent to the child or children you are sponsoring in the form of a financial stipend. The stipend supports the child's education by helping with their school-related costs and other basic needs expenses so they can focus on learning.

Cambodia and Tajikistan Sponsorship Program  
Your donated dollars are sent to the sponsored child's education program as tuition so that the child receives lessons or extra-curricular and tutoring support to excel in school.

Iran Cosponsorship Program 
Your donated dollars purchase and distribute food packages and cash through the OFAC, specific lincense for students and their family. The food is imported into Iran, adhering to US sanctions that do not require a license to send food. We prioritize non-perishable and culturally typical foods like rice, lentils, beans, chickpeas and soy. Sponsors in Iran provide cash stipends. 

The Child Foundation includes age, gender, city, and school grade on website, which sponsors can choose from based on their preference CF provides equal opportunities for all children regardless of age, gender, location, grade. 

Yes. In addition, sponsors receive progress reports during the year, which provide detailed information on the child's education, progress, and living conditions. Direct letters from the child to the sponsor and reports from the social worker regarding the student's situation and family are also provided. For Iran Program, each child may have up to two sponsors, one in Iran and one outside Iran. The co-sponsorship is described in the annual report and provided to all donors/sponsors.

Yes. All financial contributions made to Child Foundation are deductible from taxable income in the US. Every January, Child Foundation sends an official statement to its donors that reflects all of their donations from the previous year. Our tax ID number is 93-1148608.

Many sponsors participate in their company's Matching Gift Program. Matching Gift Programs enable employers to double, triple, and sometimes quadruple their employee's charitable contributions. Simply contact your human resources department and ask if your company has a Matching Gift Program for public charities. For further information on Company Matching click in here. 

Although Child Foundation's main goal is to help children stay in school, we provide humanitarian aid to help children and their families when there is an urgent need. Child Foundation has been very active when deadly earthquakes hit Iran, Afghanistan, Haiti, Japan, Pakistan, and Turkey and collected in-kind and cash donations to help rebuild the countries. We also respond with aid during the COVID crisis. Our Afghanistan office regularly organizes blood drives to help children with thalassemia and provides free blood transfusions.