Child Foundation: Your support

Dear Sponsors, Friends and Supporters of Child Foundation:

Because of your support, over the last fourteen years Child Foundation has grown into a world class charity supporting underprivileged and talented children in Iran, Afghanistan, Indonesia and USA. Child Foundation has in fact supported tens of thousands of Children, has sent over 340 individuals to universities, approximately 50% of whom have graduated with advanced degrees, including 17 medical doctors. Presently CF has about 3500 children under sponsorship.

As you can appreciate, over the past thirty years, and in particular over the last eight years, the political climate between the governments of the US and Iran has been acrimonious. Child Foundation has faced numerous challenges to its charitable activities, including complying with the letter and the spirit of US laws while satisfying the Iranian government that our operations are financed by private individuals for humanitarian purposes. Because of your continuing support, we have enjoyed great success in our humanitarian efforts, and have always strived to remain a truly independent, non-political and non-sectarian, charity. It is you and only you that we depend on. It is children, and only children, whom we support.

Regrettably, we are writing to update you on an investigation of Child Foundation’s financial records and operations by the US government, our ongoing cooperation with this investigation, and to request your continuing moral and financial support. This recently initiated investigation is focused on our compliance with a number of federal statutes and regulations, including tax laws and Treasury regulations governing transactions with Iran.

Child Foundation has always strived to comply with U.S. laws that limit aid to Iran but permit food and medicine to be sent for humanitarian purposes. We believe that all of our current programs are in compliance with U.S. laws and are cooperating fully with the investigation. For your information and as part of our administrative tasks, Child Foundation has voluntarily submitted to yearly independent financial audits of its operations in the US and in Iran. These audit results are available for review, and will be voluntarily disclosed during the investigation if in fact requested.

As it is the norm for every corporation, Child Foundation has retained counsel to represent both the Child Foundation and the members of its Board of Directors. Though we believe that we will ultimately be exonerated by the investigation, nevertheless complying with the investigation will increase our operational expenses. We strongly believe in the transparency of our financial operations and feel obliged to inform you of these additional and unforeseen operational expenses and compliance costs which cannot be accurately quantified at this time.

We strive to direct the vast bulk of our regular fundraising to aiding needy children and request your continuing support. We also respectfully ask that you consider a special donation to Child Foundation to strengthen our financial position. Our ability to keep helping so many children has always depended on you and your generousity, and we are truly grateful for your support.

Child Foundation Board of Directors
August 04, 2008


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