A LETTER FROM THE CHIEF SECRETARY Issued on 17 April
The impact of the coronavirus on The Salvation Army in our territory
G
REETINGS in the name of our Lord Jesus Christ. I am writing to you at a very difficult time. Many people are very unwell or are recovering from sickness. Some of us are grieving for family and friends who have died. We all have concerns as we look forward to uncertain months and years ahead. During these turbulent times we need, more than ever, to have a deep assurance that our risen Saviour is with us and we are not alone. It is with this confidence of knowing God is with us that I write to you as Chief Secretary and chair of the Territorial Operations Board (TOB), which is responsible for the management and day-to-day performance and delivery of operations in the territory, and for ensuring the efficient and prudent use of resources. The Salvation Army in the United Kingdom Territory with the Republic of Ireland is not immune from the storms raging around the world at this time. All the forecasts expect a very difficult few years ahead. There will be many more people turning to The Salvation Army for help at a time when money is scarce. It is the responsibility of the TOB, overseen by the Salvation Army Trustee Company (SATCO) board of trustees, to make decisions that ensure The Salvation Army is able to fulfil its God-given mission in the present age and into the future. Extensive work has been undertaken in recent weeks to revise the financial budgets for every part of the territory. The financial outlook is very concerning so I am writing to you to explain the problems and let you know how we are going to address them. This is a long letter but I ask you to take time to read it carefully as it contains important information.
1
The Salvation Army in the UK and Republic of Ireland is a large and diverse organisation. Most people don’t realise the size and complexity of the territory – even some who have been Salvationists all their lives. Here is a brief, high level sketch of the income 20
Salvationist 25 April 2020
sources including all corps, social centres, programmes and headquarters. We receive income from the general public, corps activities and corps members of more than £100 million per year. In addition we receive £100 million per year from governments in the UK for contracted services. Our network of charity shops contributes just under another £10 million a year. At present, all the charity shops are closed and it is unlikely they will generate any profits this financial year. Government income for our social work should continue but there is uncertainty about donations from the general public. With most corps programmes suspended, and more people to help in our communities with food parcels and other essentials, corps income will fall while requests for help increase. In summary, the current forecast is for income to reduce by more than £40 million in the current financial year.
2
The Salvation Army has some reserves for times like this. The Finance Department has reviewed our reserves and is releasing as much as possible. However, from all we are hearing from governments and scientists, the coronavirus problem is not going to disappear in a few weeks or even months. The effects of this pandemic will be with us for a number of years. Unemployment will rise. Poverty will increase. People will need the gospel of Jesus Christ more, not less. Therefore, we cannot survive by only depleting the reserves. We must urgently reduce expenditure.
3
The Salvation Army’s greatest assets are its people. This is often said but is definitely true. It is also true that our greatest monthly expenses are salaries and allowances with a payroll expenditure of approximately £10 million per month. There are 3,612 employees and 1,010 active officers. During the lockdown, some of our employees are not able to do their work, through no fault of their own. For example, charity
shop workers cannot work because the shops have been closed by the government. There are many other examples across the territory. The TOB initially hoped people could be deployed to different roles. More than 600 employees offered to be deployed but it has only been possible to find suitable matches for 10 per cent of them.
4
The UK government is offering, for a limited time, to fund a coronavirus job retention scheme. The Salvation Army in the United Kingdom is able to participate in this scheme and furlough some of our employees. Given the urgent need to reduce expenditure, The Salvation Army needs to make appropriate use of the scheme so we can retain as many jobs as possible in the future. Therefore, all senior officers and managers across the territory are having to identify employees who can be furloughed. This does not apply in the Republic of Ireland. We recognise this will cause financial hardship for many fine employees but it is necessary to take this action now to ensure the viability of The Salvation Army for the future. We intend for employees to be furloughed for a minimum of three weeks. Employees will not be furloughed if they are working on mission critical tasks that have to be undertaken in the next few weeks.
5
Given the financial position and the furloughing of some employees, no new posts or vacancies can be filled at this time without the approval of the TOB. When an employee resigns, they cannot be automatically replaced. Some positions may have to be filled if the role is assessed by the TOB to be mission critical at this time.
6
Other expenditure is being reduced. For example, the territorial programme of events, conferences and training courses is being severely curtailed. The territorial congress planned for October has been cancelled. Property maintenance budgets have been reduced. The
