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1 Source: The Salvation Army, 29 August 2006. 2 Commissioner Israel L. Gaither quoted from Salvation Army Yearbook, 2004, p. 2.

This case was prepared by Alex Murdock of London South Bank University. It is intended as a basis of class discussion and not as an illustration of good or bad practice. © Alex Murdock 2007. Not to to be reproduced or quoted without permissiom. The author gratefully acknowledges the assistance and advice of Major Ray Irving and David Rice of The Salvation Army in the preparation of this case study. However, the case study does not intend to present an official view of The Salvation Army. Any matters of fact, judgement or opinion in the case study are the responsibility of the author.

Case Study Belief in action: The Salvation Army, a global not-for-profit organisation

Alex Murdock

The Salvation Army is a global not-for-profit organisation which has a number of quite distinctive characteristics. It adopted almost from its inception the military form and this has continued to be a distinguishing factor in its work. Its Christian mission and UK origin have not prevented it from working successfully across religious, language, national and ethnic divides. The growth and range of activities of the organisation have been remarkable. The resulting size and complexity posed a challenge to the organisation in respect of both how it acknowledged and incorporated the range of stakeholders and also in terms of how it confronted future choices.

Introduction

In the year since Hurricane Katrina struck the Gulf Coast, The Salvation Army has undertaken the largest disaster response effort in its history, allocating donations of more than US$365 million [≈1292m] to serve more than 1.7 million people in nearly every American state. By way of comparison, the amount donated is more than three times greater than the US$86 million given after the events of September 11th – The Salvation Army’s second largest mobilisation.1

In a world increasingly beset by both natural and humanmade disasters a global organisation like The Salvation Army has faced increasing pressures in terms of both scale and complexity.

The Salvation Army is an international Christian church working on a global basis. It is one of the largest, most diverse providers of social welfare in the world. Also it is a distinctive part of the universal Christian Church. Its message and the lifestyle it advocates are based on the Bible’s teaching. Its work is to make known the good news about Jesus Christ and to persuade people to become his followers. Alongside this primary aim, it shows practical concern and care for the needs of people regardless of race, creed, status, colour, sex or age.

It was founded in 1865 in London. A quasimilitary structure was quickly adopted and subse- quently the organisation has become a worldwide movement which is to be found in 111 countries and operates in 175 different languages. This would be remarkable in any organisation whether in the private or not-for-profit sector. The long history of The Salvation Army and its associated steady growth also marked it out as an organisation which had stood the test of time whilst remaining close to its original mission.

However, the organisation is not static and Israel Gaither, one of the Commissioners, observed ‘The twenty first century ministry requires a mission-centred Salvation Army in continuous renewal’ and averred that it was time for more bold initiatives pushing beyond what he described as the ‘comfortable patterns of missioning behaviour.2 The actual mission statement of The Salvation Army in 2003–2004 read as follows:

The Salvation Army, an international movement, is an evangelical part of the universal Christian Church. Its message is based on the Bible. Its ministry is motivated by love for God. Its mission is to preach the gospel of Jesus Christ and meet human need in his name without discrimination.

The range of activities undertaken by The Salvation Army

The Salvation Army provides a very wide range of programme-based services in the global context. The Salvation Army’s social service function has become very significant. These services can be divided as follows (Appendix 1 gives the precise breakdown of the range of provision offered as of January 2004).

Social programmes

Residential services are widely provided in a range of forms. The single largest category is facilities for homeless people and there are altogether over 600 separate facilities with a total capacity of nearly 32,000. However, The Salvation Army provides residential accommodation for almost every conceivable need group ranging from mother and baby through children to the elderly and dis- abled. It also provides remand and probation facilities. Day care is similarly provided for a wide range of client groups and needs.

Addiction dependency has long been a prime focus for the Army’s work and this is reflected in the significant number of specifically targeted residential and day care resources. However, due to the nature of the client groups it is reasonable to assume that addiction problems are likely to be found extensively through much of the clientele in both the residential and day care provision.

The armed forces provision is very much a tradition from the long-established association of the Army with its ‘armed counterpart’. The Salvation Army is, however, more akin to the Red Cross and has operated on both sides of conflicts. This apolitical approach is key to the ability of the Army to operate in a vast range of different countries.

Associated with this is the increased role the Army has come to play in disaster relief. This has often been undertaken in a similar manner to a range of other such organizations. The Salvation Army was a significant presence after September 11 in providing support and tangible sustenance to those affected and the rescuers.

The community services role has taken The Salvation Army into areas also peopled by probation and counselling services. There could have been potential areas of conflict here but The Salvation Army has traditionally been able to work in partnership with both statutory and voluntary agencies. These partnerships are often associated with the willingness of The Salvation Army to engage with clients whom other agencies are reluctant to assist, such as alcoholics and ‘difficult clients’. The ‘missing persons’ service is very highly regarded and (in the UK) has acquired a well- deserved reputation for successfully tracing a very high proportion of referrals.

Health care and hospital provision

The Salvation Army has developed a significant number of programmes in this area particularly associated with its work in the developing world. The development of mobile clinics and outpatient services has been significant and the Army has been active in responding to HIV/AIDS.

Education

Missionary-based organisations often see educational services as an important part of their role and it is hardly surprising that The Salvation Army has been active here. However, the size of the provision is remarkable. The total number of pupils catered for globally is greater than the number of undergraduates in the whole of the UK.

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The fundamental basis of The Salvation Army

As the name suggests, the basis of The Salvation Army which distinguishes it from other aspects of Christian (and for that matter other) religious organisations is the adoption of a quasi-military form of structure. The original structural concept was probably derived from the Indian Civil Service.3

The military imagery evokes the concept of ‘spiritual warfare’. It is reflected in the use of ranks, uniforms and flags and indeed in the well-established publication The War Cry.

However, the actual work of The Salvation Army is not simply evangelistic but heavily focused upon the relief of poverty and the provision of practical, cost-effective and skilled services. In some ways The Salvation Army anticipated the changing role of the traditional military which has had to adapt to new ‘peace-keeping’ and disaster assistance roles. However, for The Salvation Army the service provision has long been a tradition. Previously the social service aspects were run in tandem with the missionary aspects, but the organisational structure has changed to bring the two together.

The charity is well known for the modest salaries paid to its officers (ministers). When Commissioner Alex Hughes took on the Territorial Commander role in the UK in 2002 the news- papers noted his salary with a degree of astonishment. He was a chief executive managing a £161m budget and 5,600 staff, yet he received a salary including benefits of £10,258. This represented a minute fraction (about 15 per cent) of what chief executives of similarly sized charitable organisa- tions might expect. A person working in the lowest clerical capacity in a charity in the UK would probably have received more.

Growth of The Salvation Army

The Salvation Army draws much of its strength and vision from that of its founder, William Booth. Significantly for the Army, the role of Catherine Booth, his wife, is strongly acknowledged and the Army has had a long-established tradition of involving women in active and significant roles within the organisation.

The military form of the organisation does not mean that non-uniformed members are not important Appendix 2 indicates that there are a range of associations with The Salvation Army. Many non-officer employees hold a number of significant posts and responsibility throughout the organisation. The rank of lieutenant is regarded as appropriate for someone who wishes to become an officer on a temporary basis. It is somewhat akin to a ‘short service commission’ in the regular army.

The discipline associated with both the military mode of operation has been combined with a surprising degree of organisational flexibility. From its outset the organisation has been very practically orientated. The provision of relief services to the poor led naturally to the evolution of a strong social service function. The organisation became able to respond to crisis and disaster and increasingly became involved in international relief work.

The original focus upon poverty and the associated issues linked to alcohol and gambling has remained a strong part of the core of the organisation. The Salvation Army does not accept any donations or grants derived from these sources. Therefore it does not apply for monies from the UK National Lottery. However, in other respects The Salvation Army has been relatively flexible about accepting money from a range of sources. The pragmatic view has been expressed that money can be cleansed by being put to good use.

Nevertheless, there were some concerns expressed following the acceptance by the American Territory of a bequest from Joan Kroc, wife of the founder of McDonald’s restaurants, in 2004. It was the world’s largest single charity donation and had restrictions upon its use. A UK Salvation Army officer wrote in the Guardian in January 2004 referring to the US bequest:

In the UK, where we run a vast array of services for vulnerable people, we rely on the support of the public and we would like to thank everyone who contributes. We don’t need $1.5bn to make a difference to people’s lives; £9 helps provide a homeless person with shelter for the night in a Salvation Army hostel, while £25 pays for one night’s meal run, which can provide up to 60 people with soup and sandwiches.

Belief in action: The Salvation Army, a global not-for-profit organisation

3 Source: Personal communication with David Rice, The Salvation Army, UK Territory.

The internationalisation and growth of The Salvation Army

From its beginnings in the UK, The Salvation Army has become a global organisation. The increase in countries has been matched by an increase in the number of ‘soldiers’ and in 2003 there were over 1,024,000 senior soldiers worldwide. The organisation employed that year nearly 110,000 people. Appendix 2 sets out the make-up of The Salvation Army as of January 2004.

This growth has been especially marked in developing countries and, as Exhibit 1 shows, the number of soldiers is particularly high in Africa.

The Salvation Army (unlike more conventional armies) prefers to work in countries where it is legally recognised by the law of the country. In the UK The Salvation Army enjoys its own specific legislative provision, The Salvation Army Act of 1980. This is somewhat unusual in the charitable context. In part the legislation came about (in 1931) to deal with succession and to set a compulsory retirement age for the general.

The Army has sought to work alongside other faiths. On its website it states:

In many countries The Salvation Army co-exists with non-Christian faiths such as Islam, Hinduism and Buddhism. It respects the sincerely-held beliefs of devout non-Christians, and does not regard conflict or bitter controversy as suitable means to making known the good news of Jesus.

However, the relationships with the governments of the countries in which it operates do not always run smoothly. The press made much of the attempts by the Moscow City Government to ban The Salvation Army in 2001, which led to a ban on The Salvation Army in Russia. The Salvation Army fought this through the Russian courts and was reinstated there as a charity in 2002. The Army has in fact been actively involved in Russia since 1913 and though banned by the communists had re- established itself in 1992 with the fall of communism.

One researcher commented on this aspect of The Salvation Army’s work:

That The Salvation Army relationship with governments varies so widely from country to country is a reflection not only of the internationalisation of The Salvation Army but also of the government frame- works, ideologies and policies within which it must work and it can also be conditioned by the work of The Salvation Army in the lives of government leaders in their childhood.4

The governance and change process

The Salvation Army differs in one important respect from its armed counterpart. There is no global high-command structure which determines local strategy and activities. The International HQ is in London but each territory has a high degree of autonomy. Indeed each territory is typically

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4 Alan Read, 2002, op. cit.

Exhibit 1 Geographical distribution of soldiers

Soldiers % of total

Africa 438,483 43 Americas 127,460 12.5 Europe 71,888 7 South Asia 275,224 27 South Pacific and East Asia 107,082 10.5

100

Source: Derived from Alan Read, ‘The Salvation Army and government: marching in step into the 21st century’, Masters thesis, South Bank University, London, 2002.

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recognised through local legal provision in the country in which it operates. There are, however, several governance structures which affect the operation of The Salvation Army globally:

The High Council is constituted of all the active commissioners and officers in charge of territories (some 63 in all). It is called to deal with succession or when the general is unfit to continue. The High Council can meet at any place in the UK, but normally meets at Sunbury Court (Sunbury on Thames) where there is a specific ‘Conference Chamber’ for the election of a new general.

The Generals’ Consultative Council comprises all the officers qualified to attend the High Council and advises on mission, strategy and policy. It meets more regularly (about four times a year) and operates electronically through the use of Lotus Notes.

The International Management Council focuses on the efficiency and operation of the International HQ in London and meets monthly.

The Salvation Army has had some separation in its religious and social service functions with the latter being mainly run by professionals. There has been a move to integrate the social service provision into the religious part of Salvation Army activities. This has been greeted with a degree of apprehension by some of the professional staff.

The Salvation Army in the global context

The range and diversity of The Salvation Army’s activities means that the global organisation con- fronts a very complex environment. The organisation primarily functions on a geographic basis through the territorial commissioners. However, there is a considerable amount of local autonomy and the commissioners are not to be compared in power and authority with their regular army counterparts.

Just as generals in the regular army have to deal with politicians so The Salvation Army has to deal with the individual governmental bodies which affect its work. This has presented an enormous degree of diversity.

In the UK political leaders of almost all persuasions are strongly supportive of The Salvation Army. In the USA it had been built into the official post-9/11 response to disaster and was praised by Forbes magazine as one of the top 10 US charities.

However, in Russia it encountered major problems and in areas of danger for Western charities (such as Iraq or Afghanistan) The Salvation Army’s values may offer it only limited pro- tection. As an avowedly Christian organisation with a missionary element to its work, the prospect of maintaining its global presence represents a major challenge. The development of disaster relief work places it in a strong position and its particular competence and presence make it one of the relatively few global charitable organisations.

The resourcing needs of The Salvation Army are likely to increase as the demands upon its services increase. The US bequest from the McDonald’s heir raised some questions in the UK and it is possible that future fundraising strategies may test the limits of acceptability.

The apolitical stance of The Salvation Army may also be tested in the post-9/11 context. The Salvation Army’s laudable desire to work in a non-conflictual way with other faiths may not sit easily with its involvement in homeland security in the USA.

The Salvation Army in the UK

The income and expenditure of The Salvation Army in the UK are shown in Exhibit 2. The size of the organisation is demonstrated and sector analysts will note the (relatively) low proportion of man- agement and administrative costs. In part this is a product of the very low salaries paid to uniformed officer staff.

However, the recent years have been financially challenging for The Salvation Army. In October 2004 the Guardian reported that:

Belief in action: The Salvation Army, a global not-for-profit organisation

The organisation has found that its fundraisers were overly optimistic about pledges of financial support, predicting income which did not materialise. To avoid cuts in frontline services for deprived communities, the army is targeting its administrative staff for redundancy and reviewing its property portfolio to establish whether assets can be sold.5

The Salvation Army confronted a hard choice because it felt a strong sense of loyalty towards its staff yet it was clear that the priority had to be to maintain services to its client group. The low pro- portion of management and administrative costs in the 2005 review demonstrates this.

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5 ‘Salvation Army may cut jobs to plug £9.6m hole’, Guardian, 30 October (2004).

Exhibit 2 The Salvation Army in the UK

Source: The Salvation Army Annual Review, 2005.

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In 2002 The Salvation Army in the UK had completed a major strategic review – the first such exercise undertaken by The Salvation Army anywhere. The strategic review identified a number of factors which were regarded as critical for the future of the organisation. The review had com- menced in 1999 and had involved the use of external consultants. The Henley Centre had under- taken a number of studies which examined changes in society which were relevant for The Salvation Army.

The Henley studies identified some major societal changes. They highlighted problems arising from prosperity whereby the gaps between the haves and the have-nots were growing yet the long hours’ working culture put those who had apparently benefited from prosperity under greater stress. This was associated with increased family breakdown and increased alcohol and drug abuse. There were issues associated with what the Henley Centre referred to as a ‘responsibility gap’ whereby there was a lack of both informal and formal care for those who needed it whether they were young or old. The increasing pressures and expectations which society placed upon young people were associated with increased mental health problems and substance abuse as well as, in some cases, significant exclusion from society.

The Salvation Army faced the following problems:

A declining and ageing membership. A growing demand for the services it provided. Difficulties as an intergenerational organisation in relating to youth culture. Whilst there were pockets of local innovation, there was an inherited ‘top-down’ culture that made

it difficult to resource innovation. A move in social policy from the institutional care that its social services had traditionally provided

to more community-based provision.

However, the review identified the following strengths which The Salvation Army was seen to possess:

A commitment to help the most needy. A willingness to undertake practical work as well as proclaim the gospel. Trustworthiness and sincerity, which made it an organisation people are comfortable to work with

and contribute to. A strong caring ethos. An understanding of the needs of people today.6

The strategic framework stressed the need for The Salvation Army to focus upon the needs result- ing from an increasingly fragmented society. The document did not set out the precise operational requirements of the analysis. Rather it exhorted the reader to consider the implications in terms of people, buildings and financial resources and to develop further plans at a local level.

The implication of the review and the Henley report were significant for the focus of The Salvation Army in the UK. As Commissioner Alex Hughes commented:

When The Salvation Army was founded over 130 years ago, it focused on helping the poorer sections of society. Now it is not only the poor who need our help. All sectors of society are at risk of suffering from the modern social condition – loneliness, stress and a deteriorating quality of life.

It can be argued that The Salvation Army in the UK has taken the lead in both taking a strategic view of the future of the organisation and acknowledging that the circumstances that previously guided its work and directed it towards the poorest sectors of society have changed. In this respect the UK Territory may have broken the ground for those territories in other developed countries. If the strategic framework initiated by the UK Territory is rolled out in other territories then The Salvation Army may move away from its original focus upon the poorest parts of society. The long-established practice of paying officers extremely modest salaries has been part of the values of the Salvation Army, but will it be sustainable in the future if the Army extends its mission towards the wealthier sectors of society?

However, the needs of the developing world remain as pressing as ever and are acknowledged and recognised in the annual reports and literature of the UK Territory.

Belief in action: The Salvation Army, a global not-for-profit organisation

6 ‘A strategic framework for the United Kingdom Territory with the Republic of Ireland’, The Salvation Army, 2002.

The Salvation Army has successfully grown over nearly 150 years to become one of the best known and widely respected organisations of its kind. It has been able to evolve and adapt its services whilst holding onto the core beliefs and practices associated with its founding. Peter Drucker, a well-respected authority on leadership, suggested that The Salvation Army has three challenges:

To avoid losing its soul (in this case through being too successful). To concentrate on areas where it can set the standard. To maintain the crucial balance between being a religious organisation and a social organisation.7

However, it confronts an increasingly fragmented and uncertain world and as a global organisation it will need to negotiate its way. The pressure upon its services is likely to increase and it will be chal- lenged to secure adequate resources to meet these demands within the constraints of its belief systems.

The Salvation Army in the UK, like its US counterpart, has responded to the emergency response agenda by engaging formally with the state sector. The most recent annual review observed in a positive vein:

[The Salvation Army] emergency services work [is] to receive explicit inclusion in the Civil Contingencies Bill, which legislates on contingency planning and civil protection in handling emergencies. Major Bill Cochrane thanked parliamentarians, including Ruth Kelly MP then Minister of State for the Cabinet Office, for their support at a celebratory reception.8

The Civil Contingencies Act (2004), which was to a large extent a UK response to 9/11, came into force in November 2004. The Salvation Army played a major role and following the London bomb- ings in a July 2005 press release noted:

The Salvation Army is part of the emergency response plan in London and teams were on hand at King’s Cross and Russell Square over the weekend and into this week, helping the emergency services and supporting survivors. Teams are still in Russell Square to support the emergency services as they work tirelessly to retrieve the remaining bodies.9

After these bombings in London an official government report concluded that securing national preparedness for possible future attacks should be a ‘continuous and essential activity’ involving the public, private and voluntary sectors at all levels across the UK, and the community at large. The report also noted: ‘The voluntary sector played a vital and significant role in the response providing a wide range of support services and assistance.’10

The future?

As the Salvation Army confronts new demands in changing stakeholder environments the com- ments of Peter Drucker remain as appropriate now as they were in 2001. Perhaps the additional need to balance work with governments with core values in order to continue to be a force for good globally is going to figure more prominently as the new general takes office. One of the two con- tenders, if appointed, would have been the first black occupant of the office. His own observation on his possible appointment was very much in keeping with The Salvation Army ethos:

I’m not here because of my color, and I wouldn’t be here if I thought I was, I want to serve all men and women. I am aware I can serve as a model to African-Americans, as well as to whites and Hispanics.11

In the event The Salvation Army chose the other contender, Shaw Clifton. However, perhaps significant in his appointment was considerable experience of service in Africa. His strong academic credentials including a PhD and his numerous publications may suggest a particularly analytical and intellectual approach to the role. On taking office he noted:

I have inherited a strong Army. Today we are larger numerically around the world than at any time in our history.12

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7 Source: Salvationist Magazine, 24 March (2001). 8 Source: The Salvation Army Annual Review, 2005. 9 Source: The Salvation Army News, 5 July (2005).

10 ‘Addressing lessons from the emergency response to the 7 July 2005 London bombings’, UK Home Office, 22 September (2006). 11 Source: The Washington Post, 8 April (2006). 12 Source: Shaw Clifton’s speech, ‘Welcome and Dedication Meeting’, Kensington, London, 8 April 2006.

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Belief in action: The Salvation Army, a global not-for-profit organisation

Refugee programmes – host country 16 Participants 7,523

Refugee rehabilitation programmes 12 Participants 6,470

Other response programmes 185 Participants 54,262

Services to the community Prisoners visited 297,456 Prisoners helped on discharge 127,429 Police courts – people helped 329,727 Missing persons – applications 10,264

number traced 6,745 Night patrol/anti-suicide – number helped 351,064 Community youth programmes 764

Beneficiaries 49,075 Employment bureaux – applications 304,634

Initial referrals 91,262 Counselling – people helped 311,672 Feeding centres 612 General relief – people helped 13,686,003 Emergency relief 2,796,246 Emergency mobile units 1,333 Restaurants and cafés 226 Thrift stores/charity shops (social) 1,430 Apartments for elderly 629

Capacity 8,268 Hostels for students, workers, etc. 57

Capacity 2,977 Land settlements (SA villages) 13

Capacity 402

Health programme General hospitals 20

Capacity 2,203 Maternity hospitals 13

Capacity 247 Other specialist hospitals 16

Capacity 1,906 General clinics 77 Specialist clinics 77

Capacity 387 Mobile clinics 37 Number of inpatients 260,509 Number of outpatients 1,030,748 Number of doctors/medics 920 Invalid/convalescent homes 27

Capacity 11,487 Health education programmes 419

Beneficiaries 450,894 Day care programmes 18

Education programme Kindergarten/sub-primary 700 Primary schools 946 Upper primary and middle schools 201 Secondary and high schools 191 Number of pupils 482,870 Number of teachers 15,834 Vocational training schools 133 Schools for the blind 25 Schools for the disabled 10 Colleges, universities, staff training and

distance learning centres 16

APPENDIX 1 Salvation Army international activities, January 2006

Social programme

Residential Hostels for homeless and transient 606

Capacity 34,681 Emergency lodges 185

Capacity 12,013 Children’s homes 218

Capacity 9,320 Homes for the elderly 149

Capacity 8,655 Homes for the disabled 46

Capacity 1,667 Homes for the blind 8

Capacity 374 Remand and probation homes 61

Capacity 1,221 Homes for street children 37

Capacity 837 Mother and baby homes 48

Capacity 1,325 Training centres for families 19

Capacity 447 Care homes for vulnerable people 59

Capacity 1,071 Women’s and men’s refuge centres 87

Capacity 2,690 Other residential care homes/hostels 88

Capacity 4,748

Day care Community centres 539 Early childhood education centres 114

Capacity 6,028 Day centres for the elderly 154

Capacity 9,100 Play groups 158

Capacity 4,664 Day centres for the hearing impaired 15

Capacity 122 Day centres for street children 11

Capacity 645 Day nurseries 196

Capacity 11,569 Drop-in centres for youth 276 Other day care centres 603

Capacity 14,886

Addiction dependency Non-residential programmes 375

Capacity 29,452 Residential programmes 167

Capacity 9,235 Harbour Light programmes 35

Capacity 65,051 Other services for those with addictions 116

Capacity 6,785

Service to the armed forces

Clubs and canteens 24 Mobile units for service personnel 38 Chaplains 19 Emergency response Disaster rehabilitation schemes (incl. civil unrest) 429

Participants 173,255

Source: The Year Book, The Salvation Army.

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APPENDIX 2 International statistics (as at 1 January 2004)

Countries and other territories where SA serves 111 Languages used in SA work 175 Corps, outposts, societies, new plants and

recovery churches 14,966 Goodwill centres 758 Officers 25,966 Active 17,131 Retired 8,835 Auxiliary captains 134 Lieutenants 582 Envoys/sergeants, full time 1,174 Cadets 912 Employees 106,695 Senior soldiers 1,062,453 Adherents 190,214 Junior soldiers 368,149 Corps cadets 43,488 Senior band musicians 23,273 Senior songsters 97,677

Source: The Year Book, The Salvation Army.

Other senior musical group members 66,257 Senior and young people’s local officers 119,160 Women’s ministry members 505,586 League of mercy members 106,647 SAMF members 7,015 Over-60 clubs’ members 109,295 Men’s fellowship members 58,507 Young people’s band members 17,164 Singing company members 90,562 Other young people’s music group members 61,249 Sunday school members 616,946 Junior youth group members 218,023 Senior youth group members 60,684 Corps-based community development

programmes 22,103 Beneficiaries 1,109,716 Thrift stores/charity shops (corps) 1,583 Recycling centres 23