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The Ugly Side of Child Sponsorship

The Ugly Side of Child Sponsorship

Author: Binu S. Thomas
Publication: Vijay Times (Bangalore)
Date: June 7, 2003

"So much good grows from sponsorship. For a child - health, hope, friendship and confidence. For a sponsor - joy, satisfaction and pride. Nothing can replace the importance of your role as a sponsor! As you get to know your sponsored child through cards and letters, you'll bring (and receive) such joy." -- Christian Childrens Fund.

"For just 50p a day, you'll make a real impact on the life of a child and their community. Your monthly gifts will help local people plan and complete projects such as wells, health centres, irrigation schemes and schools. And you'll be able to see exactly what your support has achieved through regular updates from overseas." -- ActionAid

As the above quotes from websites of leading international charities show, when it comes to raising resources,  nothing is easier for a charity/NGO than to use children -- poor, deprived of their basic human rights and preferably abused. Hundreds of Western NGOs use children -- their images, stories and statistics -- from developing countries like India to raise billions of dollars. A lot of this is through a mechanism called child sponsorship where a Western sponsor gives an NGO a certain sum of money (usually monthly) for sponsoring a child in a developing country and in return gets photos and letters from the child at regular intervals.

Some of this is money well spent. Institutional care projects such as orphanages, run-away care centres, homes for the mentally challenged, etc do tend to have a good track record in terms of spending money on the child in whose name it is raised.

But the same is not the case with community development projects. With the dawn of the development era in the 1960s, a number of international organisations began using child sponsorship to fund community development projects -- from tangible ones like digging wells, roads, etc to increasingly intangible projects like group organisation, empowerment of women, building rights awareness, etc. In doing so they corrupted what was a wonderful mechanism originally designed to provide direct relief to individual children in special circumstances.

The justification for such corruption is often couched in some fine and eminently believable rhetoric. As the Save the Children promotion for child sponsorship argues: "Almost 70 years of experience has taught us that direct handouts are the least effective way of helping children; your contributions are instead combined with those of other sponsors and caring individuals so that many children and their families in the community can benefit from our programs."

Why do international NGOs raise money in the name of children, if they spend it on the broader community? Why don't they just raise money in the name of the community in the first place? The fact is that several have tried and failed miserably. In the early 1980s, World Vision, one of the major international child sponsorship organisations, launched an appeal called "Life Sharing" where they requested donors to sponsor a community. Ken Waters then public relations director of World Vision recalls (in an article in "Christianity Today") that "people just did not respond. They wanted the one-to-one relationship with a kid. So it was with a bit of reluctance that World Vision went back to child sponsorship and tried to re-tool it to be a bit more up-front in what you would expect and what was really happening."

In India several large international NGOs raise funds through child sponsorship. These include Christian Children's Fund, World Vision, Plan International and ActionAid -- all of which collectively raise over Rs 300 crores every year through using images and stories of Indian children. The main advantage these organisations reap with child sponsorship (as opposed to other forms of funding) is the long-term nature of the relationship between the sponsor and the sponsored child. A sponsor often supports a child for as long as 8-10 years during which period the NGO would get a contribution exceeding one lakh rupees in the name of the individual child. Considering that child sponsorships for most of the big international NGOs operating in India number in the tens of thousands in each case, the money involved is staggering.

Many international NGOs have recognised the difficulties with child sponsorship even if they have not been prepared to say so publicly for obvious reasons. In a memo to ActionAid's Board of Trustees on 23rd June 1999, Salil Shetty, CEO of ActionAid, wrote: "Child sponsorship, in the way that we are currently managing it, poses serious problems. At the community end, it leads to a lack of transparency in terms of the amount of money we raise and the way in which it is raised. At the donor end there are still expectations from the donors of benefits going to the individual child, which is not always the case. In addition it takes up a huge amount of staff time with hidden costs."

Yet despite these brave words, three years on, and with Shetty still at the helm, ActionAid (which has the largest child sponsorship operation among international NGOs in India) continues to have child sponsorship as its primary fund raising mechanism not just in India but internationally. Clearly, the "luxury" afforded by this mechanism, as Shetty puts it (see box: Calling A Spade A Spade), is not easy to give up.

Indeed in late 1999, soon after he took over as country director of ActionAid India, Harsh Mander, a former Indian Administrative Service (the top echelon of the civil service) officer and  recipient of the prestigious Rajiv Gandhi Sadbhavana Award, set ambitious targets for boosting ActionAid's child sponsorship programme in India. In a memo entitled 'ActionAid India: Towards Change', Mr Mander announcing his intention to open five new regional offices of ActionAid India in the country (in addition to seven that already existed) wrote: "If each region accomplishes overtime 10,000 case histories [ActionAid speak for number of sponsored children] each, 12 regions would account for 120,000 case histories, which would be roughly three times our existing work. This would also justify staff growth over time." ActionAid India is well on track to achieving this target having already opened seven new regional offices instead of the additional five it had envisaged three years ago.

This is shocking considering that just a few months before Mander's memo, a Taking Stock Review (TSR) carried out by a team of six international development experts (one American, two Britons, two Africans and one Asian) had been highly critical of the manner in which ActionAid India was pursuing growth at the cost of programme quality. According to the TSR, "India feels it cannot be credible unless it adds an 8th region -- the difficult northeast of the country. And while the evidence of AAI being overstretched is abundant, it is proud it has gone from 30 DAs [Development Areas or long-term projects] to 90 DAs in the last five years. " Today with 14 regional offices, AAI has well and truly ignored the TSR.

The TSR was equally critical of the manner in which AAI was carrying out its child sponsorship programme. According to the report, "The TSR team encountered several instances where AA staff (or AA partner staff were dishonest in their explanations to families about why their children's pictures were being taken. They would explain it by saying the children were being tracked to know if they continued in school, or because their nutritional status was to be followed up. Field staff explained to us that they would not tell the whole truth to the families, otherwise they would demand money from the sponsor."

The TSR report was given a quiet burial in ActionAid, without even a proper internal discussion, as its findings were found too hot for comfort. Even Harsh Mander, one of the leading lights of the right to information campaign in the country, has been quick to propose a quantum jump in AAI's child sponsorships without first looking at the crying need to make AAI's child sponsorship programme more transparent vis-à-vis the families of poor sponsored children.

Apart from transparency, child sponsorship is also plagued by the problem of high costs. Getting a sponsor in a developed country to sponsor a child in a developing country is an expensive proposition. Advertisements in newspapers, telephone teams soliciting sponsorships, the generation and mailing of child photos to potential sponsors are activities that don't come cheap. But the cost for this is also borne by the poor in terms of the lower amount of money that actually trickles down to them. According to an article published in Christianity Today, of the $22 that a sponsor gives monthly to the Arizona-based Food for the Hungry, a major child sponsorship based Christian NGO in the US, only 62% goes to support the child.

In the case of secular child sponsorship-driven NGOs which spend their money on the community at large, the percentage tends to be even lower. This is how the ActionAid website provides the break up of how the NGO spends its revenues.

"How do we spend our funds? In 2001

80% was spent on direct charitable expenditure including:
31% on development and emergency expenditure in developing countries
24% on grants to partner organisations in developing countries
16% on regional support (in Africa, Asia and Latin America) to country offices
8% on influencing education and research
2% on administration

20% was spent on generating funds (fundraising 16% and trading operations 4%) "

It is simply incredible that ActionAid should classify "regional support to country offices" "influencing education and research" and "administration" as "direct charitable expenditure." If these items along with the cost of generating funds is removed, it is clear that at best ActionAid spends only 55% of its total income (68 million pounds sterling or approximately Rs 475 crores in 2001) on the poor directly. Even this figure is debateable as it does not account for the overheads of local NGOs through which ActionAid funds are channeled.

To a large extent child sponsorship NGOs keep their sponsors in the dark about the high cost of fundraising and how little money actually gets to the poor. According to Daniel Borochoff, President of the American Institute of Philanthropy, if donors were fully informed of the money spent on raising child sponsorship funding they would be less inclined to support it. Many NGOs also report their fundraising costs in ways that become difficult for the average sponsor to make sense of.

But perhaps the biggest form of deception that child sponsorship agencies resort to vis-à-vis their sponsors is with the child letters that the sponsored children supposedly write to their sponsors, often twice a year. Very often the letter the sponsor gets is not written by the sponsored child. ActionAid India's sponsorship administration unit in its newsletter "Sauce" recounts one case of a sponsor complaining about the letter she receives supposedly from her sponsored child. Lynne Berry of the UK wrote to ActionAid saying, "I have sponsored Suman for many years..but can't help wondering why Suman has not progressed artistically by the age of 13 years. The last painting I received, supposedly painted by her, was to my mind that of a young child of say 3 or 4 years old. I would have hoped that Suman would have progressed to drawings more fitting for her age group." As a remedy, the newsletter shockingly advises ActionAid India's local NGO partners to "ensure drawings/messages are age appropriate."

Despite these serious problems, many NGOs are reluctant to let go off child sponsorship. According to Ken Waters, formerly with World Vision, if a child sponsorship NGO was to reposition itself in favour of other forms of funding it could "expect as much as 50% loss of income over a two or three year period." Clearly most international NGOs that have been fed on an easy diet of long term child sponsorship funds are reluctant to let the ethics of the issue dictate their fundraising decisions.

[box:]
Calling A Spade A Spade

But before going public on child sponsorship issue, this author did try to raise the issue within AAI with little response.

Excerpt from memo written to Shankar Venkateswaran, Acting Country Director of AAI on 26/8/99.
"I was initially tempted to believe that the drastic recommendations [of the TSR] made with regard to doing away with the sponsorship mechanism was a case of throwing the baby out with the bathwater. But having chewed on the issue for a while, I now feel that on grounds of both dependency and inefficiency this is perhaps one baby that needs to go with the bathwater. The TSR team was generous in suggesting that 63% (and not 70% as we claim) is spent on development work in the DA where the sponsored children are. I wonder what they would have said had they known there is a further 20% chargeout AAI resorts to from the money that goes to DAs. There is a serious ethical isue in what we tell sponsors on how we spend their money and what we do. It is time we recognise a fundamental incompatability inherent in the child sponsorship mechanism between our obligations to our sponsors and to the communities we work with. As TSR says: "Too much is being driven by sponsorship and not enough by strategic considerations of what is right for development." A plan to phase out sponsorship funding should be part of the reform agenda."

Excerpt from an e-mail sent to Salil Shetty, international CEO of ActionAid in the UK on 20/11/99.
" On child sponsorship I think we need to recognise that what is good for ActionAid is not necessarily good for the poor we work with. The 'luxury of planning for long-term interventions' which you see as an advantage is also what breeds dependency and poor programming. Project after project believes there is a guaranteed stream of money for years at end and does little to help communities stand on their own feet..There is also the serious ethical problem inherent in child sponsorship of what we tell, and more correctly what we don't tell, the community. I am not optimistic that your suggestion we develop a disclosure/information policy will work. While I reluctantly agree with you that stopping child sponsorship during the next five years is a non-option, I think getting it down to 25% by 2008, as you suggest, virtually guarantees that little will be done about reducing dependency on it during the lifetime of the current strategy. The targets we set will determine the marketing options we pursue. And comfort levels with child sponsorship are too high, as you well know, to pursue other options when we are working with a 10-year target in mind. Most people currently in positions of authority will not be around then to say why the 25% target was not met."
 


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