Children of the Nations has been awarded a Four Star Rating from Charity Navigator in recognition of the good stewardship we practice with the money given to us by donors like you. Our financial integrity has earned us the endorsement of the Evangelical Council for Financial Accountability. Taking care of the investments with which we are entrusted is a top priority. We believe maintaining integrity through transparency is an important way to communicate that your money is in good hands.
IRS Forms and Independent Audit Reports
2014 IRS Form 990 (2014 Independent Audit Report)
2013 IRS Form 990 (2013 Independent Audit Report)
2012 IRS Form 990 (2012 Independent Audit Report)
2011 IRS Form 990 (2011 Independent Audit Report)
2010 IRS Form 990 (2010 Independent Audit Report)
2009 IRS Form 990
2008 IRS Form 990
2007 IRS Form 990
2006 IRS Form 990
Year-End Financial Reports
2014 Financial Details Report
2013 Annual Report
2012 Financial Details Report
COTN–USA policies in effect to ensure our financial integrity:
Records Retention Policy
COTN is committed to respecting donors' privacy. Once a donor chooses to provide us with personal information, this information will only be used to support the relationship with COTN. We will never give or sell our mailing list or email list to others or interrupt a donor’s privacy with fundraising phone calls.
If donors prefer not to receive mailings or email from COTN, they can notify us by mail, email, or phone and they will be removed from our mailing list.
COTN keeps donor information on file in order to provide gift receipts for tax purposes and to tailor subsequent communications to the donor. Information is used to complete a transaction, communicate to the donor, and update the donor on child sponsorship and special events. All donor information is kept in a password protected database and is never shared with others. For electronic donations by credit card or bank account, all donor information is in a password protected system and stored in a secure location at our Silverdale office. Credit card and bank account information is used only for processing funds donated and is not retained for other purposes.
Donor information can include name, address, phone number, email address, gift details, sponsorship details, mailing preferences, and bank or credit card information if the donor gives electronically. Donors may contact us by mail, email or phone to update or change their donor information.
Description of Operations
Children of the Nations (referenced hereafter as “the Organization”) is incorporated as a non-profit corporation. Its purpose is to provide responsible care to orphaned and destitute children by the equipping of nationals and mobilizing resources from churches, agencies, clubs, organizations, governments, and individuals. The locations of operations include the headquarters in Silverdale, Washington, regional offices in California and Florida, and six aid sites in the Dominican Republic, Haiti, Liberia, Malawi, Sierra Leone, and Uganda.
Basis of Accounting
The Organization has adopted a policy of preparing its financial statements in accordance with generally accepted accounting principles; accordingly the financial statements have been prepared on the accrual basis of accounting.
Basis of Presentation
Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, “Financial Statements of Not-for-Profit Organizations.” Under SFAS No. 117, the Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. The Organization currently does not have any permanently restricted net assets; therefore, only unrestricted and temporarily restricted net assets are shown in the financial statements.
Unrestricted net assets include unrestricted revenue and contributions received without donor-imposed restrictions. These net assets are available for the operations of the Organization and include both internally designated and undesignated resources.
Temporarily restricted net assets include revenue and contributions subject to donor-imposed restrictions that will be met by the actions of the Organization and/or the passage of time. When a restriction is satisfied or expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as “Satisfaction of purpose restrictions.”
Use of Estimates
The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
The Organization accounts for contributions in accordance with the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 116, “Accounting for Contributions Received and Contributions Made.” In accordance with SFAS No. 116, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted depending on the existence and/or nature of any donor restrictions. Restricted net assets are reclassified to unrestricted net assets upon satisfaction of the time or purpose restrictions.
No amounts have been reflected in the financial statements for donated services. Donated services are recognized as contributions in accordance with SFAS No. 116, “Accounting for Contributions Received and Contributions Made,” if the services (a) create or enhance non-financial assets or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. Volunteers provide general office and administrative support throughout the year that are not recognized as contributions in the financial statements since the recognition criteria under SFAS No. 116 are not met.
The Organization also mandates a 10% administrative fee on most monetary donations, to be used for unrestricted purposes of the Organization.
Income Tax Status
The Organization qualifies as a tax-exempt organization under Section 501(c)3 of the Internal Revenue Code and therefore, pays Federal income tax only on trade or business activities unrelated to the Organization’s exempt purpose. During the year ended December 31, 2014 there was no unrelated business income.