I actually never realized there WAS a difference until I went to the conference!
When you sponsor a child through Compassion, the money goes toward directly benefitting your child - it goes toward funding the child development centre that each sponsored child attends every day after school. Each centre is run by a local church. There they get tutoring, training in skills (like sewing, carpentry...), medical attention, food (if they need it), spiritual training, and above all, a safe place to be! In some other child sponsorship programs (like World Vision), most of your money goes toward community development projects like drilling wells and building schools. That definitely can have a positive impact on the kids, but there's no guarantee that that project will benefit your sponsor child! So it's a great program, but "child sponsorship" is a bit of a misnomer. And just in case you're wondering, Compassion does have community development programs too, they just come out of another fund. Basically, "Compassion's focus is children, so we use child sponsorship funds directly for the growth and development of children and guarantee that every child will hear the Gospel." (I ripped that off the website :) Does that answer your question?
We have sponsor kids through both programs, so I'm not against World Vision, I just think that more of my "child sponsorship" dollars are making it to my child through Compassion.
oh, one more thing. Compassion focuses more on the Christian sector as sponsors because they want each sponsor to be a missionary to their child - to pray for the kid, write letters, and encourage. World Vision has a broader focus, which is cool too because it accomplishes other purposes. I'm just biased :)