Character formation has a crucial role to play in the development of children. Especially, when it comes to the integration of children in need of care and protection with the main stream society, character formation plays a great role. Thus character formation requires a particular set of strategies for developing positive character in these children living in residential care homes. However, only few works have been carried out to investigate adequately the character formation strategies for children in need for care and protection and to assess their contribution in the development of institutionalized children. This work examines the strategies applied by selected organisations to promote positive character among the children and the process of applying it. Further, it looks into the contribution of these strategies for the development of children.