A redesigned Pudsey bear will also be unveiled at the launch of the 2007 appeal, which takes place next week.
The charity's revised slogan will read: "For every penny you donate, a penny will go towards projects helping disadvantaged children and young people in the UK. We are able to make this promise because the charity uses its investment income to cover all operational costs."
Children In Need has been criticised in the past for suggesting that the money it raised went directly to the cause and did not contribute to administration costs.
The Institute of Fundraising has criticised charities that imply they have no administration costs, and donor information website Intelligent Giving has said the charity's slogan was misleading (Third Sector, 22 November 2006). A statement on the website last November read: "Children In Need does just the same as all the other big charities: it invests your pennies and uses the interest to cover costs."
A spokeswoman for Children In Need said the charity had taken the comments on board. "We are committed to being accountable and transparent to our supporters and took Intelligent Giving's comments very seriously," she said.
"We believe our annual report and the use of a longer statement on our website and in our fundraising pack will help people understand how we meet our operational costs while matching our grant spend to our donation and fundraising income."
Children In Need also joined the Fundraising Standards Board this month (Third Sector Online, 3 September).
Intelligent Giving praised Children In Need for making the changes. "Now it has fleshed out the slogan it isn't misleading any more," said David Pitchford, the site's managing editor.
"They could concentrate more on their unique selling point - that they find great little charities that the rest of us wouldn't find - rather than talking about the money."
The charity hopes that the new, more contemporary Pudsey design, which cost £50,000 and was created by advertising agency Fallon London, will attract an additional £1m through new licence partners over the next three years. Currently, 3 per cent of the charity's revenue comes from sales of Pudsey products.
"Pudsey is a fantastic icon, but needed to be refreshed if it was to work in all media," said Mark Elwood, head of art at Fallon.
The new-look Pudsey will be introduced to the public on the charity's website and its fundraising materials.