Here is a response from WV on a criticism piece done by ABC
http://www.abc.net.au/foreign/World_Vision_Response.htm
My wife and I sponsor through compassion Canada (a different Christian organization), personally I always found World Visions approach too guilt based, compassion just seem's more positive. With compassion I have options to donate over and above my monthly amount for 'gifts' for various purposes. For instance I think we gave $100 for our child's birthday gift...A few months later we get a picture and a letter thanking us for the goat and other supplies, there's our kid holding said goat. Kind of nice to see that direct benefit. Compassion however takes things like Christmas and pools all money together so that each child gets something (and no one feels left out).
I had much the same questions about weather these charities are worth it, then we met some friends from Kenya who had moved here to complete a doctorate degree in science, they saw the pic of our sponsored child on our fridge which spurred some questions...when I told them I wasn't sure if it really does anything, they ademitly refuted that sentiment, saying when they were children the days the Christian aid workers came in with supplies were critical. Seeing this family today, in Canada completing doctorate degrees, can't help but wonder if these little things were the little boost needed to make a big difference.