The impact of the coronavirus on The Salvation Army in our territory

A LETTER FROM THE CHIEF SECRETARY Issued on 17 April

GREETINGS 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 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 officers’ allowance increase of 2 per cent from 1 April has been deferred for reconsideration in September and SATCO has taken the decision to postpone the annual review of employee pay bands until September at the earliest. In addition, all requests for salary increases related to annual performance reviews will be placed on hold until further notice. The territorial budget and latest financial reports will be reviewed every two weeks by the TOB during these extraordinary times.

I appreciate that many of you will want to know what you can do to help. Here are a few ideas: a) We celebrate the blossoming of online worship across the territory. More than 11,000 people viewed the Easter worship led by our territorial leaders, Commissioners Anthony and Gill Cotterill. Many corps are reporting increased numbers of people worshipping online. However, it is difficult to take up an online offering! Please remember to keep giving your tithes (cartridges) and offerings to support your corps. If you have any questions, please call your corps officer or corps treasurer and they will be able to provide information for you on how to give via a standing order or through a Salvation Army JustGiving web page.

b) Employees who are furloughed will only be receiving 80 per cent of their salary up to £2,500 per month gross. In solidarity with our furloughed colleagues, a number of officers and employees have expressed a desire to voluntarily reduce their pay during this time. The senior leadership team (the four territorial leaders plus the four service heads) have unanimously agreed to take a reduction in their basic allowance of at least 20 per cent. However, this is entirely voluntary and it is understood some people will want to participate but are unable to do so at this time for very good reasons.

The administration required to reduce salary and allowances is complicated and we are still working through the options. More information will be provided to officers and employees soon. Please, no one should feel pressurised into participating.

c) Please pray for everyone who is affected by this pandemic. Perhaps pray for a specific group of people each day. Your prayers and words of encouragement will be eternally valuable in these difficult times.

Finally, always remember this is God’s Army! The Salvation Army was not William and Catherine Booth’s idea. God created The Salvation Army and God will sustain The Salvation Army as long as we are playing our part in God’s mission of love to the world. That does not mean we can sit back and do nothing! We are called to roll up our sleeves and work hard. At times, we have to take difficult, painful decisions but they must always be done in a way that advances God’s mission to a broken and hurting world.

If you have questions or comments, please write to me at chief.secretary@ salvationarmy.org.uk. I will ensure the appropriate person responds to you.

May God bless and guide us in these days.

Yours faithfully

LEE GRAVES COLONEL CHIEF SECRETARY