Beauty From Ashes

Beauty From Ashes“To bestow on them a crown of beauty instead of ashes, the oil of gladness instead ofmourning, and a garment of praise instead of a spirit of despair.”— Isaiah 61:3, n i v

Dear Partners in Christ,As I was reflecting on this scripture recently, I was overwhelmed byhow this ancient prophecy is being fulfilled today through the ministryof Compassion:“To bestow on them a crown of beauty instead of ashes,the oil of gladness instead of mourning,and a garment of praise instead of a spirit of despair.”— Isaiah 61:3, n i vGod is offering crowns of beauty to children who have known onlyashes. He is restoring lives and offering new beginnings. Through Hispeople, He is telling children with so very little that they are so veryspecial. Together, we are pointing children in need to the only One whocan bring true hope and joy. What a miracle that you and I can be partof this!With your help, we have seen more lives transformed over the 2007-08fiscal year than ever before. I want to share a few praises with you. Ihope they encourage your heart as much as they do mine:• According to our church partners, 154,122 children from ourChild Sponsorship Program made commitments to JesusChrist in this last year alone! And nearly 130,000 Bibles were putinto the hands of children to have as their own.• Child sponsorships reached 902,172 globally, a 13 percentincrease.• Compassion’s Child Survival Program is in 12 countries now,with 224 programs. This vital ministry is now providing lifesavingassistance to 12,073 caregivers and babies. Praise God that 1,401caregivers invited Jesus into their lives.• This year, nearly 200 students graduated from Compassion’sLeadership Development Program. There are now 1,628students in the program in 16 countries.• We are aggressively fighting HIV/AIDS and malaria in areaswhere these diseases impact children in our programs. In thelast year, more than 195,000 HIV tests were given to children inour programs and their families. We are providing antiretroviraltherapy for 1,201 children with AIDS. And during the last fiscalyear, we distributed 125,257 insecticide-treated mosquito nets tofamilies living in malaria-infected areas.• Thousands of Compassion-assisted families threatened by theglobal food crisis have already received lifesaving food, thanksto generous donations from our sponsors and donors. Pleasekeep these families in your prayers as they continue to cope withthis ongoing crisis.Your faithfulness has made all of this possible. Thank you for allowingGod to use you as He continues to transform ashes into crowns ofbeauty, year after year.Sincerely in Him,Dr. Wess StaffordPresident and CEOStatements of Financial PositionFor the years ended June 30, 2008 and 20072008 2007AssetsCurrent assets:Cash and cash equivalents $46,010,895 38,716,951Investments 8,221,314 8,531,227Receivables from affiliated organizations 6,488,940 4,333,197Accounts receivable 1,296,607 353,932Prepaid expenses and supplies 3,966,713 3,205,345total current assets 65,984,469 55,140,652Noncurrent assets:Property, plant and equipment, net 65,798,108 61,351,016total noncurrent assets 65,798,108 61,351,016Restricted assets:Investments restricted for trust andannuity obligations 4,475,482 5,241,626Investments restricted forlong-term purposes 5,919,640 6,086,200total restricted assets 10,395,122 11,327,826total assets $142,177,699 127,819,494Liabilities and Net AssetsCurrent liabilities:Accounts payable and accrued liabilities $11,865,275 6,073,254Funds committed to sponsorship projects 23,281,487 19,825,237Accrued severance/retirement benefitsfor national employees 555,399 392,227Trust obligation 56,446 60,073Gift annuities payable 13,422 19,765Revocable trust agreements 964,779 1,030,753total current liabilities 36,736,808 27,401,309Long-term liabilities:Accrued severance/retirement benefitsfor national employees, lesscurrent portion 4,847,055 3,534,040Trust obligation, less current portion 1,298,473 1,609,908Gift annuities payable, less current portion 446,913 496,637Custodial funds held 294,735 319,187total long-term liabilities 6,887,176 5,959,772total liabilities 43,623,984 33,361,081Net assets:Unrestricted 49,822,162 46,295,702Temporarily restricted 42,663,043 42,339,951Permanently restricted 6,068,510 5,822,760total net assets 98,553,715 94,458,413total liabilities and net assets $142,177,699 127,819,494To see the complete version of Compassion’s 2008 audited financial statementsincluding Form 990, please go to compassion.com/about/financial/default.htm.2007/2008 Annual Report