Duncans, I apologize for the delay. This post got put on my backburner for a bit.
The IRS has two tests related to determining tax deductible gifts and donations - intended benefit and control. Compassion passes these tests (making donations to specific children acceptable) based on the following criteria:
Gifts are tax deductible because Compassion is the recipient of the donation and maintains full control over the gift process (from receipt to purchase of the gift to communication of the gift and from receipt to programming that benefits the child).
Corporate policies and programs address gift donations and distribution. Budgets are created regarding gift donations.
We purchase gift items for the child and provide programming that benefits the child rather than giving cash to a child. Compassion also communicates to donors that we have full control and discretion of donations and that gifts are used appropriately to benefit the child.