To be able to offer tax deductibility on donations, Compassion's overseas aid and development activities must comply with the guidelines set out by both the Australian Taxation Office and AusAID (the Australian Government's overseas aid and development department).
While the guidelines do recognise that faith-based organisations may combine evangelism and development, tax deductibility may not be given for the promotion of a particular religious cause and programs must be available to all people regardless of religious background.
Children supported by Mums and Babies and Child Sponsorship Program represent a wide variety of religions. A child's religious background does not prevent him or her from being accepted into these holistic child development programs. However, the Leadership Development Program is specifically designed to develop Christian leaders through intensive Christian leadership training as well as one-on-one Christian mentoring. This means students must be Christians to be eligible and therefore the program falls outside of the tax-deductibility guidelines. Likewise, the Bible Fund falls outside these guidelines as it exclusively promotes a particular religious cause.