Yes. Compassion is committed to providing consistent service to registered children in our programs. Compassion's method of keeping program benefits consistent for sponsored children happens through pooling sponsorship funds to produce a level support system.
Every month we put all the current sponsorship funds we receive into one central fund. Your monthly sponsorship payments are combined with the payments from other sponsors. The overhead and field support costs are deducted and then we divide the balance over the total number of sponsored children. The resulting figure is what will help each child for that month. With the help of our pooling system, every child in our program can count on consistent support.
Without a pooling system, sponsored children whose sponsors were late with their support or simply did not send support would have their sponsorship benefits interrupted. If some sponsors do not send their support in a given month, the project would not have enough funds to provide the benefits for all of the children at their project.
In the United States the IRS has prohibited organizations from receiving donations and passing those funds directly to individuals. By pooling the benefits between all children, Compassion can qualify to issue tax-deductible donation receipts to our sponsors.
This approach also allows us to be better financial stewards of the resources God has blessed us with. For example, if we were to pass on to sponsored children the exact support amount sponsors have sent, we would have to manage the many different rates of sponsorship funds coming in. Project directors in our thousands of centers around the world would have to assign differing benefit amounts to each of our children in our centers. To accomplish this task, administrative costs would rise dramatically and we would have fewer resources to maintain the quality of our program. Pooling is a financially responsible option that ensures Compassion-assisted children receive consistent benefits.