2023-03-31-accounts

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The Salvation Army United Kingdom and Ireland Territory The Salvation Army Trust Report and Financial Statements for the United Kingdom in the year ended 31 March 2023 Charity Registration No: 214779 Scottish Charity Registration No: SC009359 Principal Office

Territorial Headquarters: 1 Champion Park, London, SE5 8FJ

www.salvationarmy.org.uk

Introduction from the Territorial Commander ....................................................... 3 Our Vision, Mission and Values ......................................................................... 4 Objects of The Salvation Army Trust ................................................................. 7 Explaining Our Strategy, Structure and Operation .................................................. 7 Realigning Resource to Enable a ‘Flourishing’ and Effective Salvation Army .................... 11 Illustrating the Work and Achievements of The Salvation Army Trust 2022/2023 .............. 14 We are The Salvation Army ............................................................................ - Being a Living and Changing Church — Compassion in Action ..................................... - Being a Living and Changing Church — Ministry in Action .......................................... - A Shared Sense of Service .............................................................................. - Essential Support in Hard Times ....................................................................... - Our Visible Subsidiary ................................................................................... - Tackling Root Problems — Influencing Policy ........................................................ - Pulling Together in a Crisis ............................................................................. - Vital Support for Ukraine ............................................................................... - Reaching Out to Vulnerable People ................................................................... - Supporting Young People ............................................................................... - Older People ............................................................................................. - Helping Families in Need ............................................................................... - Looking Forward as a Movement ...................................................................... 33 Modern Slavery and Anti-Human Trafficking Statement ............................................ 34 Our Approach to Fundraising ........................................................................... 35 Reviewing Finances ..................................................................................... 41 Reserves Policy .......................................................................................... 45 Investing for the Future ................................................................................. 46 Structure, Governance and Management ............................................................. 49 Risk Management ........................................................................................ 50 Subsidiary and Associated Companies ................................................................ 52 Recruitment and Appointment of Directors (Trustees) ............................................. 52 Directors .................................................................................................. 55 Advisers ................................................................................................... 56 Independent Auditor’s Report ......................................................................... 57 Financial Statements .................................................................................... 61

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

INTRODUCTION FROM THE TERRITORIAL COMMANDER

Commissioner Anthony Cotterill

Our Vision is bold and audacious: ‘Fullness of life for all with Jesus’. Some might think it is unrealistic. However, as you read this Annual Report you will see multiple examples of people experiencing a fuller life because of the work of The Salvation Army.

This has been another challenging 12 months. Before people and communities across the UK, Ireland, Channel Islands and the Isle of Man had time to recover from the COVID pandemic, the cost-of-living crisis has threatened to overwhelm us. I am pleased this report shows The Salvation Army in the UK stepping up to address multiple challenges with resilience and compassion. Most importantly, you will see evidence that the people we serve have been enabled to experience a fuller life in seemingly endless ways.

This is the uniqueness of The Salvation Army. We are not ‘single-issue’ like many in the UK charity sector. Throughout our 155+ year history we have sought to meet the needs of people just where they are. We focus on people on the margins of society who are struggling with complex problems. We know the solutions are complex and consequently we are a complex organisation.

Essentially, we are a Christian church working in the UK through several charitable trusts. To fully appreciate our work in the UK, this report needs to be read alongside The Salvation Army Social Work Trust (Charity Registration number 215174) report. Operationally we do not function as two distinct charities since the objects of the two trusts are different but complementary. In everything we do, we seek to support people without discrimination and with respect and compassion. We long for everyone to experience fullness of life with Jesus.

I express my sincere thanks to everyone who has financially supported The Salvation Army during the year under review. Despite the challenging economic situation, hundreds of thousands of people across the UK generously gave so that we can help others. We also thank the many branches of Government, trusts, foundations and corporations who partner with The Salvation Army to enable people and communities to flourish.

This is my final Annual Report and Accounts as my wife, Gillian, and I will be entering retirement on 31 December 2023 after almost 40 years of service as Salvation Army officers. I commend our successors, the current Chief Secretary, Colonel Paul Main, and Colonel Jenine Main to you. God has been faithful throughout our lives and we have had the greatest privilege serving as Salvation Army officers. ‘Fullness of life for all with Jesus’ has been our experience and it can be yours too.

Thank you again for your help and support. May God bless you.

Commissioner Anthony Cotterill Territorial Commander of The Salvation Army in the United Kingdom and Ireland

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

OUR VISION, MISSION AND VALUES

Our Vision, Our Values and a set of five Mission Priorities inspire and guide all the work we do as a church and as a charity. We simplified and refreshed our Vision, Mission and Values statements in 2021 to reaffirm our sense of purpose and direction for The Salvation Army in the United Kingdom, Ireland, the Channel Islands and the Isle of Man. Since their creation and adoption and across the year under review, the new statements have been deployed extensively across the territory. Their simplicity and boldness mean that all areas of the diverse work of The Salvation Army can be both anchored and inspired by them.

Vision statement:

This is ‘Our Vision’ for every part of The Salvation Army. It is inspired by the words of Jesus : ‘I have come that they may have life, and have it to the full’ (John 10:10 NIV ).

No words can adequately capture the vision of boundless salvation that God intends for the world and everything in it. However, ‘Fullness of life for all with Jesus’ includes every aspect of Salvation Army life. We believe everyone can enjoy fullness of life with Jesus. It is aspirational — we are not there yet — but this is what we strive towards.

Mission Statement:

Our Mission is built on five priorities which are the drivers for all we do, how we do it and why we do it, across the entire organisation.

These short phrases communicate immense challenge, ambition and direction. When these priorities are present, The Salvation Army is working towards Our Vision of ‘Fullness of life for all with Jesus’.

Each of the five priorities of Our Mission is rich in meaning and helps us explain to 21st-century society why the Christian message and the work of The Salvation Army is relevant and desperately needed in our communities and nations.

They are not arranged hierarchically but overlap and mutually support each other.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

SHARE THE GOOD NEWS

At the heart of The Salvation Army’s mission is a passion to proclaim the good news of Jesus Christ far and wide. This is not an optional extra. The Salvation Army only does what it does because our inspiration and vision come from people’s ongoing relationship with Jesus. We know the difference our relationship with God makes in our lives and we don’t want anyone to miss out.

SERVE OTHERS WITHOUT DISCRIMINATION

The Salvation Army responds to people without discrimination. God calls us to be with the people we serve. In ‘being with’ people — as against ‘doing for’ people — together we find solutions and make progress because we are all made in the image of God. We are called to share love in a too often loveless world. ‘Love God, Love Others’ inspires every aspect of our work.

NURTURE DISCIPLES OF JESUS

The future of The Salvation Army depends on nurturing current and future generations of Christian disciples who, filled with the Holy Spirit, share the good news of Jesus, resulting in more disciples. Like athletes, Christian disciples need to practise staying fit for God’s demanding mission. Habits such as prayer, Bible reading, corporate worship, music, tithing and helping others are vital. The Salvation Army believes being a disciple of Jesus and experiencing the blessing of holiness is the way to experience fullness of life.

CARE FOR CREATION

The Salvation Army is committed to helping change attitudes, resulting in a more responsible use of our planet. We seek to provide practical care and advocacy for people affected by damage to the environment. People will not experience fullness of life unless God’s creation is protected and cared for.

SEEK JUSTICE AND RECONCILIATION

People can experience a fuller life on Earth. God longs for justice for all people. Therefore The Salvation Army has always spoken out against injustice. We fight not simply the effects of injustice but also the systems and structures that enable injustice. Seeking reconciliation is also an essential part of The Salvation Army’s vision of the good life. Peace and fullness of life is possible when justice and reconciliation are priorities in the lives of individuals, communities and nations. The Salvation Army is committed to work in partnership for these ends.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Our Values

Boldness Compassion Passion Respect Integrity Mutual accountability

Our Values are for everyone involved in The Salvation Army and should be reflected in our behaviour and result in good relationships and increased wellbeing, and help us integrate what we do with how we do it.

The basic standard of Christian behaviour, derived from our understanding of the character and action of God, is love; so we need continually to be drawn back to understand how God is asking us to live and work together to help us be faithful to our calling to be God’s people.

Boldness — We will courageously and confidently share the good news, seek justice and reconciliation, nurture disciples of Jesus, serve others without discrimination, and care for creation.

Compassion — We will serve with the unconditional love and grace of God as the pattern for our behaviour.

Passion — We will bring our best selves, our God-given energies and convictions, to our work, service and learning, whether as officers, members, employees or volunteers.

Respect — We will receive each person with the dignity of those created in the image of God, while seeking the transformation God provides.

Integrity — We will be honest and transparent in all our dealings with each other and those we serve, being open about our motives and agendas.

Mutual accountability — We will willingly and freely give full account for our actions to those we interact with and expect the same in return.

Statement of commitment:

We have one simple statement to explain why we are here, which frames all we are and all we do as a church and charity. Four words achieve this:

This is based on Jesus’ greatest commandment in Matthew 22:37–39 to ‘Love the Lord your God’ and to ‘love your neighbour as yourself’. ‘Love God, Love Others’ underpins, inspires and motivates everything we do, in every part of The Salvation Army.

Throughout 2022 and 2023 this statement has been widely used across The Salvation Army in communications, on corporate publications, on our websites and on email footers as a powerfully simple ‘explainer’ of what we are here to do and how we strive to deliver our vision.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

OBJECTS OF THE SALVATION ARMY TRUST

The Salvation Army’s principal objectives are the advancement of the Christian religion and pursuant thereto the advancement of education, the relief of poverty and other charitable objects beneficial to society or the community of mankind as a whole.

The following groups benefit from the work of The Salvation Army Trust:

people who worship or participate in other activities at Salvation Army corps (churches) and community centres.
vulnerable and disadvantaged members of society, including people experiencing homelessness, older and/or lonely people, children, young people and families, people dealing with issues such as substance abuse and other illnesses.
the wider community of society as a whole.

The Salvation Army takes a holistic approach, engaging with people’s physical, emotional and spiritual needs, offering its services without discrimination.

EXPLAINING OUR STRATEGY, STRUCTURE AND OPERATION

The Salvation Army is a broad and diverse organisation. As a Christian denomination it puts its faith into action in so many different ways across the UK, and this section seeks to explain how our foundation as a church is the essential basis of how we work and what we do.

Our two principal charitable registrations:

The Salvation Army operates through two principal charitable trusts: The Salvation Army Trust and The Salvation Army Social Work Trust. This Report and Accounts outlines the work of The Salvation Army Trust (Charity Registration number 214779) , which is the charity registration through which we manage our programmes of engagement and support that are delivered through our local corps (churches) and our community centres. Much of the funding for the work of The Salvation Army Trust derives from public donations, legacies, trading activities and church members.

However, the work of The Salvation Army Trust does not represent the entirety of The Salvation Army’s work in the UK. Alongside the locally driven, locally responsive corps (church)-based operations which are reported here in this Report and Accounts, The Salvation Army operates centrally co-ordinated and centrally managed ‘social services’. Whilst this is still the ‘work’ of The Salvation Army, the finances of these operations are managed and reported on through a separate charity registration, The Salvation Army Social Work Trust (Charity Registration number 215174) which has its own Report and Accounts . The Salvation Army Social Work Trust accounts for residential programmes for homeless

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

people, care homes for older people, residential detox centres, family centres, refuges for victims of domestic violence, safe houses and services for the victims and survivors of modern slavery and human trafficking, and our Employment Plus services. These services are managed in a top-down model due to the vulnerability of the people needing help and because of statutory regulations and contract requirements. Much of the funding for The Salvation Army Social Work Trust derives from government and local authority contracts and additional supplementary funding comes from The Salvation Army Trust.

Summary of the purpose of The Salvation Army Trust

The Salvation Army Trust is the charity registration through which our corps (church)-based community programmes and our congregational life are managed and accounted for. Because each community is different, our community work and expression will be different in each location. This is illustrated later on.

Inspired by our vision and mission statements:

We offer and are energised by Christian worship, teach Christian principles and encourage Christians to live out their faith in every aspect of life. We promote the Christian good news through various media including literature, music, digital media and personal evangelism.
We provide community programmes through corps (local churches) and in communities that are relevant to local needs, to assist people of all ages to enhance their quality of life, self-respect, personal development and relationships with others. We work alongside local communities to ensure that we are partnering with them and other agencies to meet local need. We do that through formal and informal activities.
We seek to influence policymakers, providing information on social issues affecting people on the margins of society. We seek to amplify these voices and help society be fairer, more caring and just.
We train and equip current and future Salvation Army officers, staff and volunteers.
We financially support The Salvation Army Social Work Trust in the full range of services it provides.
We support the international mission work of The Salvation Army, including development work and providing relief to those affected by disasters overseas.
We review and adjust our strategies and programmes to respond to changing needs.
We strive to achieve our vision of ‘fullness of life for all with Jesus’ in everything we do through five Mission Priorities: share the good news; serve others without discrimination; nurture disciples of Jesus; care for creation; seek justice and reconciliation. Operationally we are prioritising transformation, integration and streamlining to increase our effectiveness and impact.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

The scale of the work of The Salvation Army Trust

The Salvation Army Trust works principally through 622 corps (churches) and community centres in the United Kingdom[1] .

England: 500 corps (includes Isle of Man and Channel Islands) Wales: 36 corps Scotland: 69 corps Northern Ireland: 17 corps

A list of centres managed through The Salvation Army Social Work Trust is in the Report and Accounts for that trust.

The work and delivery of The Salvation Army Trust

To ‘make sense’ of The Salvation Army, it is important to remember that The Salvation Army is first and foremost a church, but a church that delivers a colossal and diverse range of charitable services. Everything The Salvation Army does should positively contribute to making the world a better place — as God intends it to be.

As a church, we have a network across the UK of over 600 local corps (churches) and community centres. These are generally run by corps officers, who are trained and commissioned (ordained) Salvation Army ministers of religion. Each corps officer is accountable to his or her community but is operationally accountable to a team of 14 divisional leaders who in turn report to the territorial headquarters based in London.

This strong community presence is the way in which we ensure we respond to local needs in local ways. What we do is generally decided on, agreed upon and delivered locally. The costs and delivery of this network of corps, and the infrastructure and the centralised operations that support it, are the subject of this Annual Report and Accounts for The Salvation Army Trust.

The Salvation Army is a church and charity that doesn’t just help people by providing immediate, practical support to overcome issues such as addiction, homelessness, social isolation or poverty; it also strives to address the reasons behind the suffering, with a view to effecting sustainable change in individuals and society at large.

Therefore, what sets The Salvation Army apart from other organisations is the combined strength of our centrally co-ordinated social work services and the local responsiveness of our corps (churches) and community centres which are all playing their part to bring lasting change at a local and national level.

1 The Salvation Army Yearbook 2023

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Every officer, member of staff and volunteer brings their own unique insight into the lives of the service users and communities they serve, to inform the work that we do and help us prioritise which reforms we will campaign for on behalf of the marginalised and vulnerable.

Explaining our distinctive organisational approach to strategy

Our vision statement is ‘Fullness of life for all with Jesus’ . This is a scripturally inspired goal which now forms the heart of our delivery. The Salvation Army is a diverse, responsive, agile Christian church and charity. Because we live and work in the communities we serve, we fully recognise that each community is different and consequently the needs of each community are different.

Our approach is to encourage effective and flexible activities focused on helping people experience life in all its fullness across all the communities in the UK where we have a local presence.

The UK Salvation Army deliberately does not have a prescriptive approach to directing its delivery at corps or centres or a directive top-down strategy. Instead, we prioritise local responses to local needs as the way we choose to work across the UK. The size, scale and professionalism of The Salvation Army can be underestimated because of this strategic decision.

This report highlights how this approach has enabled us to respond powerfully, quickly and in an agile and flexible — and, above all, locally relevant — way to the latter stages of the pandemic and how we emerged from that time with renewed energy and agility.

Integrated locally

Together, the two Annual Reports and Accounts provide a comprehensive account of the work of The Salvation Army in the United Kingdom. At a local level, The Salvation Army across both trusts is encouraged to work together to bring lasting change at local as well as national level — we call this ‘integrated mission’ .

Integrated internationally

In a wider context, The Salvation Army works in more than 130 countries[2] , on every continent, often in the forgotten corners of society. Our breadth of experience and hierarchical structure enables lessons learnt in one place to benefit people with similar challenges thousands of miles away. The rapid expansion of our work with victims and survivors of modern slavery and human trafficking is a good example of this strategic advantage.

2 133 in The Salvation Army Yearbook 2023

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Resourcing, support and oversight

The local diversity of The Salvation Army’s operations is facilitated through centrally coordinated support services — such as HR, finance, property, IT, PR and fundraising, with some of these support functions also located in divisional (regional) headquarters. This approach enables us to be efficient and effective in the use of resources.

In addition, there are staff whose role is to learn lessons from local programmes and pilot schemes, to share resources and successful outcomes from innovation and experience with other Salvation Army operations to help us achieve our mission across The Salvation Army as effectively as possible. This approach helps to drive up the quality of our services to people who are often poor, marginalised and vulnerable.

REALIGNING RESOURCE TO ENABLE A ‘FLOURISHING’ AND EFFECTIVE SALVATION ARMY

Continuing the delivery of the Structure Co-ordination and Design Project 2022/2023

The Salvation Army has never been a static organisation, and over its 158 years of life and work it has been constantly evolving to match efficiency and effectiveness with changing times and changing needs.

Ensuring appropriate oversight and support and operational freedoms to more than 600 diverse and locally responsive Salvation Army churches and community centres is challenging. Add to that over 100 residential and non-residential social work centres, and the challenge of ensuring the most effective allocation of resources is a critical task.

The challenge of the Vision Statement and the five Mission Priorities adopted in 2021 was the impetus for looking at what organisational structures and ways of working needed to change to enable our ‘local mission delivery units’ (corps and centres) to truly flourish in their individual settings. By ‘flourishing’ we mean that every expression of The Salvation Army should actively be engaging with the five Mission Priorities (our Mission Statement) in order to achieve our vision.

This significant task, termed The Structure Co-ordination and Design Project , has been focused on three desired outcomes:

Transformation : Increase the capacity of locally based Salvation Army work to contribute to the five Mission Priorities (share the good news; serve others without discrimination; nurture disciples of Jesus; care for creation; seek justice and reconciliation).
Integration : Build strong and effective collaboration between all aspects of Salvation Army work in a geographical area.
Streamlining : Design appropriate, effective, efficient and sustainable structures and processes that enable local mission to flourish.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Starting in 2021 and over a two-year period coming to fruition in the year covered by this Annual Report, the Structure Co-ordination and Design Project conducted probably one of the most extensive pieces of internal research we have ever executed in order to answer the simple question:

‘What (change) is needed to enable our local mission to flourish?’

The process was deliberately designed to be ‘bottom-up’. Consultations were carried out within all the then 22 divisions, and at all headquarters, both territorial and divisional.

The principal premise we worked to is this: A combination of effective oversight of the right things, combined with the allocation of adequate resources and support , and the effective release of our local mission delivery expressions from unnecessary control, should result in communities and people flourishing.

The strength of this simple model is that it dovetails into the way The Salvation Army has always worked. We respond locally and meaningfully to local need in local ways. Organisational structures, and administrative and decision-making processes can become burdensome and inefficient. At its best, The Salvation Army is often more local organism than top-down organisation. Therefore, rooting and starting our thinking and planning for change in ‘local’ was the most sensible and potentially the most powerful way forward.

The outcome can be outlined as a series of significant changes to the way we work:

Release: We engaged and continue to engage in extensive rethink of how resources need to be marshalled and how the local delivery points can be released to be as free as possible to decide on and deliver what they perceive is needed in terms of service and services. One outcome is, and will continue to be, a review of effectiveness, and how investment can be directed more freely to where increased investment will deliver significant change for people and communities.

Oversight: Effective oversight is vital for compliance and governance. Oversight ensures we are doing the right things in the right ways. However, the design process also looked at where supervision and some forms of oversight are unnecessary or could be released to be done locally, not centrally. We have a strong spirit of accountability in The Salvation Army and the releasing of some aspects of oversight will mean more local ownership.

Support: We need to continue to ensure that the support that is needed to enable local mission delivery to flourish is available, but in the right ways. This means adequate funding streams, support for raising awareness locally, support for training and innovation and local growth. We are developing more practitioner-based and peer-to-peer support. This is helping to reduce the cost of support and improve the quality by encouraging people to learn from fellow practitioners.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Streamlining was also one of the three goals of this process, and a significant branch of this project looked at our divisional structure and how best can our 600+ corps and community centres be clustered and supported divisionally (regionally). Following extensive consultation, it was decided to systematically reduce the number of divisions from 22 to 14. This entailed a reshaping of the role of the divisional leadership team to ensure the effective application of the principle of support and oversight and release. Critical to this thinking was also to ensure divisional headquarters and staff work with territorial headquarters and staff to form one integrated system of support and oversight. During 2022 and 2023 these changes gradually came into effect and The Salvation Army in the UK settled into working with its new divisional boundaries.

The changes that this project introduced started to be felt in 2022/2023. In the period covered by this review:

The number of divisions (dioceses) in the UK reduced to the target number of 14. The number of corps (churches) in divisions now varies significantly from 17 in North Scotland Division to 67 in the East of England Division.
New divisional roles were created to support the divisional leaders in oversighting and supporting the mission delivery at local settings.
A culture was adopted that offered flexibility in structures within divisions to allow greater freedom — previously all divisions were expected to have the same hierarchical structure and staffing.
A review of safeguarding roles, responsibilities and procedures started.
Our Personnel Service implemented a new recruitment system to reduce administration.
The Property Department continued to implement changes to better serve local corps and improve property maintenance.
The importance of impact measurement and data management was reflected in the implementation of a pilot scheme to look at how we collect, share and interpret data across the territory, in order to drive continual improvement.

The Structure Co-ordination and Design Project is scheduled to conclude its work by the end of 2023, with the ongoing focus on transformation, streamlining and integration being taken forward by headquarters staff as an essential aspect of ‘business as usual’.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

ILLUSTRATING THE WORK AND ACHIEVEMENTS OF THE SALVATION ARMY TRUST 2022/2023

WE ARE THE SALVATION ARMY

We are a church but not in the traditional sense. Our founders, William and Catherine Booth, abandoned the conventional Victorian ways of doing church. Rather, they took God’s good news of salvation directly to the people. They particularly focused on the social and spiritual transformation of society’s most vulnerable and marginalised people.

Today — as a church and a charity — we continue this work through hundreds of Salvation Army corps (church and community centres) — as well as a network of social service centres funded through the Salvation Army Social Work Trust — around the country. We are energised by Christian worship, teach Christian principles and put our faith into action, by reaching out to people in need.

The work of every corps is to seek to follow our Mission Priorities in order to achieve our vision in the communities we serve. Because each community is different, how we serve them also differs. It would be an almost impossible task to list here all the different programmes we run. What this overall section does is to illustrate our life and work during 2022/2023 with examples of our diverse delivery and the challenges we have met in different settings.

This year we have illustrated our life as a church more than we have in the past. It is from our foundation and living presence as a church that our belief is put into action in the communities where we are present.

BEING A LIVING AND CHANGING CHURCH — COMPASSION IN ACTION

‘ Jesus replied: “Love the Lord your God with all your heart and with all your soul and with all your mind… Love your neighbour as yourself.”’ (Matthew 22:37,39 NIV )

We take a whistle-stop tour around some of our churches, to see how they are responding to the social and spiritual needs of people in their communities.

Growing mustard seed in Doncaster

‘ The kingdom of heaven is like a mustard seed, which a man took and planted in his field. Though it is the smallest of all seeds, yet when it grows, it is the largest of garden plants and becomes a tree, so that the birds come and perch in its branches.’ (Matthew 13:31,32 NIV )

Doncaster was a lively corps with so much to offer different age groups. During Covid-19, when the doors were locked and all activities ceased, it felt like their beacon of light had gone out.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

But their mustard seed never died. As restrictions lifted, it grew stronger roots. After the lockdowns they began to reimagine the church — for example, by introducing family worship and Bible groups, giving its parent-and-toddler group a new format and inviting young people to sing and play in the band.

The corps had a place for everyone and those green shoots from the mustard seed became a family tree. The church grew into a vibrant ministry for God.

Sheppey’s supermarket on wheels

Sheerness Corps is part of the Sheppey Community Development Forum. The Isle of Sheppey is an area of social deprivation, with many low-income earners and few employment opportunities. So the Forum came up with the idea for the Sheppey Support Bus, a mobile supermarket.

One day a week it visits four stops, including the two most remote areas. Members of the social supermarket paid a monthly fee. For £28 a month a family receives 20 items that can be stored at room temperature, such as pasta, sauces, beans, tea, coffee and toiletries.

People found more than food on board. There was wider support from Barclays Bank employees offered budgeting support, community wardens, the probation services officer, a fuel and water adviser and volunteers from a domestic abuse support charity.

Caring for creation in Sidmouth

Sidmouth Corps is unusual in that it doesn’t have a building of its own, but its members are still embedded firmly in the local community. They used spaces that would otherwise be empty a lot of the time. It is typical of their approach as an Eco Church, for which they have just won a bronze award. Caring for creation is reflected in everything they do.

For example, people could take items, which would have ended up in landfill, to the monthly repair café. They didn’t just ‘drop and go’ — the item bearer and repairer worked together to fix and maintain an item. The parent-and-toddler group recycled and used natural materials for craft activities, for example old potatoes that were no longer edible.

Community spirit in Merseyside

Starting with just one corps in 1880, there are now eight corps, three Lifehouses and new partnerships spreading community spirit across the county. Here are some highlights.

Champions Court in St Helens comprises 28 apartments across two blocks with 24-hour wraparound support. It helped former rough sleepers get ready to live independently and remains a much-needed service for vulnerable members of the community, as they overcame issues such as mental health problems, addiction and childhood trauma.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Liverpool Walton Salvation Army tackled holiday hunger and financial family worries over the school summer holidays by supporting more than 100 children through a summer holiday club. It took pressure off families as many continued to navigate the cost-of-living crisis.

Liverpool Stoneycroft Salvation Army offered a number of weekly activities for the community, from a craft club and football matches for young adults to Employment Plus — our employability programme aimed at helping people back into work. This provided tailored support to help people become job-ready and overcome obstacles they may face professionally and personally. A grant from the Sequoia Charitable Trust helped fund a real and welcome development in youth work.

Southport Corps is in the process of building and developing a community garden. It is envisaged as a mindfulness space for connection and conversation, as well as a place where fruit, vegetables and flowers can be grown.

Crofting for Christ in Shetland

The Salvation Army corps in Shetland is only two years old. There is no building or an established congregation, yet members were proud to serve the island community in a new and environmentally friendly way — as an Eco Church.

Local crofters offered land and help to build a polytunnel and provide the necessary items to get work started. Now they work in partnership with the corps. The produce grown from donated seeds and plants benefits the whole community, and nothing is priced.

This year they introduced an area of raised beds at schools. The team also made planter boxes to encourage families to sow a few carrots or onions and watch them grow. There was a fridge with home bakes, and woodcraft items are sold locally to raise money for the mission.

A warm welcome in Reading

Outside the large Salvation Army hall in Reading, a sign says ‘A church for all’ and they mean it! The fellowship recognised the importance of making people feel welcome and accepted. They wanted to give people a sense of belonging and value.

What was a traditional corps has expanded and diversified in so many ways. The biggest growth has been with young people, whose enthusiasm is infectious. For example, the number of young brass players has grown from eight to twenty in recent months. Senior players provided excellent ongoing teaching and support and young learners grew in confidence.

The focus was on families and nurturing disciples of Jesus. Eight junior soldiers were enrolled in February and a leader for young people, Rachael, was commissioned.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Faithful community in Coedpoeth

The word that sums up the spirit of the corps in Coedpoeth, near Wrexham, is ‘faithful’. People associated with the corps — its leaders, soldiers, supporters, friends, family and volunteers — gave their time faithfully each week, ensuring a continuing presence of The Salvation Army in the area.

The corps held two meetings on a Sunday and regular Sunday ministry at care homes and in the street. Coffee mornings, Bible studies, band practice and clubs for children and youth were part of a busy programme. On the local high street, a wonderful team of volunteers ran a charity shop.

Partnership was important too. The corps shared a building with the Catholic Church, were active in the Minera and Coedpoeth Churches Together group, and shared band practice with Rhosllanerchrugog Corps just five miles away.

‘ This is a group of Christian disciples actively putting their faith into practice as they raise their children, grandchildren and even great-grandchildren.’ — Captain Darren Hampton

Core Recovery for addiction

The Salvation Army has a 150-year history of journeying alongside people living with addictions. We continued this pledge of helping people in need through a ‘recovery church’, called ‘Core Recovery’, which we have re-energised in the last year.

It was a simple idea. Because The Salvation Army truly believes that everyone deserves fullness of life through Jesus, Salvationists needed to consider seriously how to create spaces for healing and transformation for people living with addictions and other forms of trauma.

Our Core Recovery team helped corps to create these spaces, with advice, expertise, resources and guidance. At its heart were key principles including belonging, no discrimination, lots of encouragement and compassion.

‘ I work side by side with disadvantaged, lonely and isolated people to empower them, upskill them and see them flourish in newfound confidence.’ — Christina Davies, Skills and Employability Co-ordinator at The Haven, Neath

LGBTQ+ love and understanding

In our corps and youth groups, there are young people who identify as LGBTQ+. They may feel that their sexuality or gender identity are at odds with their beliefs, and this can sometimes be exacerbated in faith communities. The Salvation Army wants to change that. We developed a training resource in response to conversations with youth workers and leaders who felt ill-equipped, and even nervous, to have conversations about gender and sexuality with their young people.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

The programme — An Introduction to Pastorally Supporting LGBTQ+ Young People — was designed to equip youth leaders with knowledge and information to enable them to engage with young people around identity and gender. It will offer loving, compassionate and inclusive pastoral support to LGBTQ+ young people in the church community.

Comments about the training are truly rewarding:

‘Really helpful for stimulating conversation and for promoting grace and reflection.’
‘Thought-provoking, helpful, eye-opening.’

‘ Really helpful — a good mix of input, conversation and opportunity to think about specific issues.’

A mission of racial inclusion

ALL of humanity is created equally in God’s image. That is the fundamental starting point for the Racial Inclusion Working Group (RIWG), which has worked hard during 2022/2023. The group aims to identify and find ways to address any form of racial inequality within The Salvation Army in this territory.

The RIWG is made up of a diverse array of people. They have been working together to prayerfully promote and facilitate the inclusion of people from all racial, ethnic and cultural backgrounds at every level and in every context. Here are some of the ways:

Survey — to identify any barriers that might exclude people and potential areas of discrimination, as well as to understand people’s perceptions and experiences of equity, inclusion and belonging.
Inclusion Mission Advocates — these work on a local level to champion equality, raise awareness of inclusion, and promote policy and best practice. They ensure that diverse voices are heard and that marginalised and minority experiences are understood.
Listening spaces — safe environments with trained facilitators where people can share their thoughts, lived experiences and concerns. This can lead to positive transformation and change.

‘ So in Christ Jesus you are all children of God through faith, for all of you who were baptised into Christ have clothed yourselves with Christ. There is neither Jew nor Gentile, neither slave nor free, nor is there male and female, for you are all one in Christ Jesus.’ (Galatians 3:26-29 NIV ).

No faith in fossil fuels

Salvation Army Cadet (ordinand) Elizabeth Kitchenside took part in a walk to Parliament with other Christians in April 2022, to call for the Government to stop new investment in fossil fuels. Elizabeth told us:

‘ Caring for creation is a fundamental value in my Christian faith. The legacy of The Salvation Army is one of radical and revolutionary followers of Jesus who spoke powerfully and prophetically into society, in order to bring about justice and the Kingdom of God.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

‘ Joining the No Faith in Fossil Fuels march is one way of doing just that: standing up for what we believe in and joining with God’s people and prophets in order to see God’s Kingdom realised.

‘ By ignoring the climate crisis, we risk destroying God’s beautiful creation. Our inaction speaks just as loudly as our action. By walking, my hope is that the Government and those in positions of power might listen and put into place the policy and legislation needed to secure a safe future.

‘ I walked for my future, for the planet, for justice and, most importantly, for my God.’ — Cadet Elizabeth Kitchenside

Commissioned and ready to go!

Together22 was a new and exciting territorial event that took place in Birmingham from 15 to 17 July 2022. It brought together three significant Salvation Army events under the same umbrella. During the weekend we celebrated Commissioning (our term for ordination), our annual Congress and Symphony Sounds (a celebration of our music) in a new way.

The commissioning of the Messengers of Reconciliation Session took centre stage on Sunday. Cadets entered the hall to the band playing ‘Spirit of the Living God’. Territorial Secretary for Leader Development Colonel Jenine Main welcomed both those in attendance and those watching the livestream.

Assistant Principal Lieut-Colonel Karen Shakespeare (William Booth College) formally presented the session, and the cadets were received by Territorial Commander Commissioner Anthony Cotterill, who commended the corps, family, supporters and college staff who had encouraged them on their journeys to officership.

The Messengers of Reconciliation then recited the Doctrines of The Salvation Army, the same Doctrines that have been recited by thousands of officers commissioned around the world for more than 140 years.

The dedication song ‘I Will Serve by Love’ was sung by the combined sessions and college staff before Territorial Leader for Leader Development Commissioner Gill Cotterill completed the ordination and commissioning of the 10 cadets — now lieutenants!

BEING A LIVING AND CHANGING CHURCH — MINISTRY IN ACTION

Sharing common ground

Salvationists shared in fellowship with others at the Birmingham 2022 Commonwealth Games, which was attended by more than a million people. It gave our volunteers a once-in-a-lifetime opportunity to ‘love God and love others’ through their willingness to be placed where they were needed. For example:

Birmingham Citadel’s (church) volunteers welcomed athletes and officials, helped spectators refresh and refill, and listened to people who wanted a friendly face.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Salvation Army Major Vic Kennedy, a chaplain with West Midlands police, was responsible for chaplaincy at the police command hub. The police chaplaincy team distributed around 1,500 copies of the New Testament to police officers and staff members involved in the Games.

We prayed that the coming together of people from so many diverse backgrounds would be an incentive for change, improve wellbeing across our society, and help build better communities.

Women’s renewed mission

Riverbank was the new name for our Women and God weekend which took place at Warwick University in June 2022. Taking the theme Just Imagine!, its purpose was to lead Christian women to imagine or re-imagine what God wants to accomplish through them in the 21st century.

Speakers included Director of Anti-Trafficking and Modern Slavery Major Kathy Betteridge, Bekah Legg, the CEO of Christian domestic abuse charity Restored, and Rachel Turner, founder of Parenting for Faith. Highlights of the weekend included a beautiful prayer space, artwork created to reflect the weekend, and a workshop where five women shared their personal stories of God doing more than they could have thought or imagined.

What attendees said:

‘ I am reassured that God places us where he needs us and that his everlasting love is mine. God gave more than I imagined this weekend and now I am excited to see what he can do through me!’ — Victoria Dowse, Boston

‘ With a quiet space and prayer rooms available, it was easy to step away from others and have a ‘me and God’ time for reflection and prayer. The event had sign language interpreters throughout and I am grateful for the opportunity to have met and shared with so many great people.’ — Paska Moore, Disability Engagement Adviser, Territorial Headquarters

Showing true colours

A diverse range of people from across the territory gathered for Exploring Leadership Day, an opportunity for worship, teaching, conversation and exploration of the opportunities and pathways for different forms of ministry leadership in The Salvation Army.

Territorial Secretary for Leader Development Colonel Jenine Main unpacked Matthew 8:23–27, the story of Jesus calming the storm, with two young leaders — Lieutenant Liam Beattie (Leicester West) and Lydia Kim (William Booth College). They challenged delegates to consider where they might be in the narrative. On the shore watching from a distance? In the boat but frightened, like the disciples? Trying to fight the storm? Or trusting Jesus, the peace-bringer? The message was: get on the boat, even though there may be storms ahead, for God will be with us.

The day was packed with seminars, worship and prayer. One of the busiest areas was the café, where people engaged in meaningful discussions aided by the challenge to ‘be open’, which pervaded the day.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

By the end of the day, everyone had seen a glimpse of just how colourful a world it could be when people are open, choose to ‘get on the boat’ and live to shine for Jesus. Attendee Salvation Army Cadet Adam Barber said : ‘ God really spoke to me during the day and confirmed the calling he had placed on my life. I had never experienced the presence of God in such a tangible way!’

Chaplaincy in diverse settings

Salvation Army chaplains continued to offer a friendly, confidential and independent listening ear wherever they were stationed. They were there for anyone, to share in the joys and the sorrows of life, in places including hospitals, airports, care home, prisons and sports clubs.

A sporting chance

For Captain Ian Arthur, playing at Glasgow Rugby League Club provided a natural route into sports chaplaincy . ‘On the rugby field there is a levelling. I am not Captain Ian Arthur of The Salvation Army; I’m Ian and I’m the number 10,’ he said.

Being a sports chaplain is not about telling the players how to perform on the pitch or instructing club officials on how to manage a winning team. Instead, chaplains are a listening ear that hears above the roar of a crowd and clamour of a stadium. They counsel and inspire supporters and players alike.

A patient presence

Major Ann Stewart was corps officer at Horsham and felt the need to broaden her work. She contacted her local hospital chaplain and offered to do the hospital chaplaincy training. Ann is now the lead chaplain and goes to the hospital each week, visiting a small ward with mainly older people who need rehabilitation.

She said: ‘ Most of the time I am welcomed by patients and staff, and they are happy to have a chat. Occasionally people tell me they are “not religious”, but when they see my Salvation Army badge, they are happy to talk. When appropriate I will pray with them.’

Serving those who protect

With ever-increasing strains on police officers and staff, there is more awareness than ever of the importance of holistic wellbeing. Major Peter West is a retired Salvation Army officer and police officer, and he is now chaplain at Kent Police College and a police station.

Sometimes police staff’s problems are job-related, but more often than not they’re personal. They are people too, with their own vulnerable elderly parents, difficult children and marital problems. As they work in such a secure environment, people in the police service can be wary about sharing their thoughts, feelings or problems.

Having a dedicated chaplain provided them with a secure environment. ‘It’s really about getting to know people so that they trust me when they’ve got something to talk about. I think that’s where being an ex-police officer helps,’ Peter said.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

A SHARED SENSE OF SERVICE

Our Territorial Commander, the leader of the Salvation Army in the UK and Ireland Territory, Commissioner Anthony Cotterill, sent a letter of congratulations to Her Majesty the Queen to mark the Platinum Jubilee in June 2022. In his message he said: ‘We are enormously grateful for your service to the country and, in particular, the support you have given to The Salvation Army over the years of your reign.’ All around the UK, The Salvation Army turned out in force to celebrate the Queen’s reign with street parties, the lighting of beacons and music.

But just months later, in September 2022, The Salvation Army shared the sorrow of the nation at the announcement of the death of Her Majesty the Queen. In a statement we recognised the Queen’s steadfast Christian faith throughout the tremendous challenges and enormous changes the country has come through during her reign.

Ahead of the Coronation of King Charles III, The Salvation Army looked back at the many times over the years that King Charles, when he was Prince of Wales, showed his support for the work of the church and charity.

At the age of only 21, the heir to the throne gave his first major public address about the environment, and he has become a well-known and pioneering voice for environmental causes. Like us, he has also been a vocal advocate for young people: in 1976 he founded the Prince’s Trust to help 11 to 30-year-olds with training and work experience.

King Charles’s belief in action can only have been reinforced by the many times he and The Salvation Army crossed paths. Here are just three examples:

In 2007 he witnessed the Army responding to the major floods in Yorkshire — at the time described as the biggest rescue effort undertaken in peacetime Britain.
On 31 December 1999, he visited our reopened Pleasance Lifehouse in Edinburgh, speaking to residents and staff members. He signed a portrait that went on display and was presented with a Salvation Army crest mounted on a background of Salvation Army tartan.
In 1996 he spoke to Salvation Army personnel supporting the emergency services in the Docklands area of London, where a bomb had exploded.

Much like The Salvation Army, King Charles is non-party political in his new role as monarch. In his first address as King in September 2022, he acknowledged: ‘It will no longer be possible for me to give so much of my time and energies to the charities and issues for which I care so deeply. But,’ he added, ‘I know this important work will go on in the trusted hands of others.’ The Salvation Army will continue to deliver its mission as it seeks to achieve the vision it has set itself — fullness of life for all with Jesus.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

ESSENTIAL SUPPORT IN HARD TIMES

In the previous Annual Report we described our diversity of pandemic response across the UK. Last year we reported on how we were re-energising and adapting in post-pandemic communities and the creative ways we had changed.

This year, 2022/2023 was characterised by the deeply felt cost-of-living crisis, and this was a great concern to us. It hit everyone, but for those with low, fixed incomes and high energy requirements it has been devastating, and during the year the impact of poverty crept further into our communities.

The crisis, as all crises do, brought out the best in our ability to adapt and respond. Our officers were on the ground in the country’s most deprived areas and saw first-hand how the cost-of-living crisis pushed more people into a downward poverty spiral. Through our 600 corps and community centres, we prioritised local response to local need.

‘ We have helped find a bed for a pregnant woman forced to sleep on the floor, and supported a mother who had to give her child water instead of expensive milk. We have even seen a man faint from hunger queuing for a food parcel.

‘ These aren’t stories from Dickensian times when The Salvation Army was founded; these are recent examples of how we have stepped in to help people who can no longer afford the essentials of life .’ — Lieut-Colonel Dean Pallant

People banked on us:

People needed the help of churches and charities more than ever before. We packed food parcels, provided hot meals and listened to people struggling to comprehend how they could no longer make ends meet.

Above all, we prayed we could meet a need that was growing day by day. As the apostle Paul wrote: ‘Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up’ (Galatians 6:9 NIV ).

— For warmth and friendship

While The Salvation Army welcomed a freeze in energy prices, we warned that it wasn’t enough to help people already struggling. One of our actions to help people finding it hard to heat their homes or stay warm, was joining other churches in the Warm Welcome Campaign.

This scheme provided more than 1,000 places of warmth. The atmosphere was inclusive and non-judgemental, and people enjoyed the company of others as well as the warmth.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

‘ Our warm space is set up café-style. About 15 to 20 people have come along. In the future, we hope to build on it as a midweek fellowship.’ — CSM Lynne Brill, Merthyr Tydfil

‘ We made a conscious decision to avoid stigma around the space by not operating a headcount or any sign-in procedure. Our intention was for people to feel welcome, loved and valued. If the building is open, the warm space is available!’ — Community Programme and Engagement Manager Kathryn Casserley, Southport

‘ We’re also ensuring that those we support are fully equipped with the advice and guidance they need to heat their homes effectively and manage their incomes.’ — Lieutenant Miriam Smith, Glenrothes

— For food and basics

• Food on the table

In Penrith, the corps appealed for support in stocking the shelves of its food bank as more people struggled. As well as extra people coming to the food bank, there were additional referrals from schools, health visitors and doctors. During April 2022 alone, the food bank supported more than 1,211 people.

‘ Needing help can creep up quickly on anyone, and something has gone wrong if people who are working can’t even afford to put food on the table.’ — Major Carole Donaldson, Penrith

• Discount food shop

People struggling to afford to buy food in and around Sheringham, Norfolk, were invited to sign up to a discount food shop run by The Salvation Army in the town, for just £5 every six months.

The shop sold food at a substantially reduced price, with some free fresh food and vegetables available, to help people during the ongoing cost-of-living crisis. The shop also served as a gathering point, a place where we could spread God’s love.

• Cooking on a budget

If people don’t have the skills to cook, they may rely on takeaways. But this proved prohibitive to many during the cost-of-living crisis. In Oldham Fitton Hill, the Army put on a cooking course called Meet, Cook and Eat, over a period of four weeks.

Recipes fed a family of four with all ingredients totalling just £5 or less. With prepping and cooking in under 20 minutes, there was no need to worry about energy prices. It was also a chance to find friendship and pick up new skills to save money by changing cooking and spending habits.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

— For clothes and compassion

• Every Child Warm

Every Child Warm is based on the idea that coats and shoes are the most expensive items that a parent has to buy for their children. Finding the money can be harder for parents with limited budgets. In Gateshead, where there are huge health inequalities due to poverty, 300 children received coats and shoes in time for the new school term, thanks to The Salvation Army.

• Smart for school

Corps across the country collected new and used school uniforms to give to children whose families were struggling in the cost-of-living crisis, ahead of the new school year. For example, at the Hednesford/Cannock Corps, PLUM (Pre-Loved Uniform Market) continued to be an invaluable service for many families in the district. A total of 106 children received uniforms.

OUR VISIBLE SUBSIDIARY

The Salvation Army Trading Company (SATCoL) is a wholly owned subsidiary of The Salvation Army.

It continued its mission to raise money for The Salvation Army through the Army’s 230 charity shops, clothing collection donation centres and other recycling initiatives. Our charity shops are a very visible presence for The Salvation Army in the UK and their financial contribution helps to fund our work. Last year SATCoL donated more than £4.8 million to the UKI Territory (year end March 2023).

SATCoL reaffirmed its commitment to the values of care and compassion at its annual conference in Birmingham last year. Delegates heard about the good work it had made possible, such as Steps to Work, which provides training and work placements for 18-25 year-olds with learning difficulties at our Strawberry Field Centre in Liverpool.

SATCoL was presented with the Charity Retail Association’s Outstanding Charity Retailer of the Year award. Its positive social and environmental impact played a big part in why it won the top prize.

Find out more — see how SATCoL helps people in need and the planet through innovative reuse and recycling schemes at www.satcol.org

TACKLING ROOT PROBLEMS — INFLUENCING POLICY

We provided people with immediate help in communities all around the UK. But long-term support is essential too. As well as our local services, we spoke out on behalf of vulnerable people by responding to Government measures which were announced in the Mini Budget in September 2022, Autumn Statement in November 2022 and Spring Budget in March 2023.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

We were hugely relieved the Government wanted to help vulnerable households. Yet we feared that proposals would have little effect on the lives of those who needed to turn to us for support. Our recommendations included:

To urgently raise benefits in line with inflation so people can afford to feed their families and pay their bills.
To set up a new cross-Government task force to tackle, with empathy and compassion, the reasons people are not earning and are trapped in poverty, by improving education and employment locally so they can achieve a decent standard of living.
To reconsider the tightening of Universal Credit conditions for people working 12-15 hours a week because it risks trapping them in low-paid jobs and struggling with rising prices.

Having significant experience of working with people fleeing dangerous situations, The Salvation Army expressed its deep concern at the UK Government’s plans to send some asylum seekers and refugees to Rwanda.

Our three main areas of concern about the plan:

It will not ensure people have the appropriate care and support.
It threatens to introduce an inequality of treatment that cannot be defended on any moral grounds.
Legal provisions available to genuine refugees will not have recourse to the UK courts
of justice.

We felt it was our duty to speak out. This plan will not solve the problems of people who desperately need our help and tarnishes the UK’s reputation as a responsible global force for good.

PULLING TOGETHER IN A CRISIS

As a Christian church with a strong social conscience, we seek to alleviate distress wherever it is found. In the immediate aftermath of disasters and emergency situations, The Salvation Army is swift to respond with practical and pastoral care.

Wherever there are people in need, The Salvation Army will aim to help if we can. We follow the example of Jesus Christ: ‘God is our refuge and strength, a very present help in trouble’ (Psalm 46:1 NIV ).

Around the UK:

Our incident response vehicles and volunteers were out in force, providing refreshments and emotional support to first responders and emergency services teams. Here are some examples.

Stornoway — firefighters, the coastguard and other agencies were out for days fighting fires which engulfed the island in smoke. Corps members provided much-needed drinks and food.
Hastings — responding to floods, the corps provided workers with drinks, hot meals and a place to hold meetings and to rest. Our team also provided food, flasks and blankets to an anxious resident who didn’t want to leave her flat, despite losing all power.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Oldham — our vehicle was called to support emergency services dealing with the aftermath of a huge fire at a scrapyard.
London — last July saw us provide an unprecedented level of support to the capital’s firefighters. We now have three incident response vehicles strategically based at fire stations across London.

Proud to serve

The Salvation Army supported the many volunteers and emergency services teams on duty as Queen Elizabeth II’s coffin lay in state in Edinburgh and then in London. We also supported vulnerable members of the community, some of whom struggled with the long waiting time, especially through the night. In both locations, the Army provided practical help as well as pastoral care for mourners.

VITAL SUPPORT FOR UKRAINE

On the ground

The outbreak of war in Europe was a shock for all of us. The Salvation Army has worked in Russia, Ukraine and most of the neighbouring countries such as Poland, Romania, Georgia and Moldovia. Across the continent, local Salvation Army personnel did what we do best — help as many people as possible with the resources at their disposal.

As the impact of the conflict grew, The Salvation Army in the UK and Ireland Territory launched an appeal for funds. The UK public were extremely generous and our appeal raised over £4.5m. We also featured the relief work in Europe and here in the UK in our annual territorial Carol Concert in December at the Royal Albert Hall, London.

The Salvation Army’s work across Europe has been extensive and the money raised has enabled us to work both here in the UK and across Europe for those affected. For example, in the Eastern Europe Territory to date more than 88,000 cooked meals and over 91,000 vouchers have been distributed. Over 13,000 overnight stays have been provided, including for children, being sheltered in Salvation Army run facilities.

‘ We are on the ground in Ukraine and neighbouring countries, offering urgently needed practical and emotional support for people fleeing danger.’ — Ben Gilbert, International Projects Office Team Leader

Safe from human traffickers

Conflict places people at greater risk of human trafficking. We protected people seeking safety from further abuse and exploitation by human traffickers.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Many of the refugees were women and children leaving Ukraine for the very first time. They were scared, anxious to protect their children and worried for their husbands, fathers and brothers back home.

Salvation Army teams from Moldova rushed to the Ukraine border in the first days of the conflict and have remained in place, providing accommodation, transport and food.
We provided practical assistance and shared information translated into Ukrainian for those fleeing to alert them to their rights and the risks.
We pooled information with anti-trafficking networks and used their contacts to get women and children to a safe place.

‘ The impact can continue long after war has ended, as traffickers prey on displaced people. In recent years we have supported hundreds of people from places like Sudan, Eritrea and Iraq.’ — Major Kathy Betteridge, the UK and Ireland Territorial Director of Anti-Trafficking and Modern Slavery

Games without frontiers

Mattel brands — including Barbie, Scrabble and Hot Wheels — sold in The Entertainer toy shops are helping The Salvation Army and British Red Cross respond to the Ukraine-Russia crisis. Proceeds from sales helped provide emergency accommodation and provisions such as food, water and blankets.

Building futures

Here in the UK, our direct response to the conflict and the refugees who were displaced and who came here as a result was swift and meaningful. This work was directly supported by The Salvation Army Trust.

In Scarborough a Ukrainian Hub and Café have been set up by the local Salvation Army, providing a safe space for the Ukrainian community to gather, get access to information and even undertake basic English classes to aid with social integration. Other corps have been able to support participants with vouchers, household items and bikes for transport alongside pastoral and spiritual care.

Our charity shop in Maldon, Essex, helped Ukrainian refugees settle into the area by offering summer clothes, shoes and volunteering opportunities. Ukrainian refugee Leila, 25, volunteered with the shop for a month. Shop manager Kevin Dawson-Jennings said: ‘She has been doing an amazing job and her English is improving all the time.’ Offering such volunteer opportunities is another way the Army gave refugees hope and purpose.

Our church and community centre in Sutton set up a weekly Drop-In for Ukrainians to meet up with each other and fellow Ukrainians already living locally.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Gill Bonner, a member of The Salvation Army in Sutton who co-ordinates the Drop-In, said: ‘It is a place for people to meet, whether they are newly arrived guests, staying with families or Ukrainians who have already lived here for some time. They come together to relax, share information and experiences and to speak Ukrainian.’

A local Ukrainian resident who translates at the Drop-In said: ‘This is great because they can meet each other and are given so much useful information, which is what they need right now. They are very happy to come here because they can bring their children and are given toys and school uniforms. Most of all they get a warm welcome and develop friendships. They also find out about English lessons and how they can access places such as banks and schools.’

REACHING OUT TO VULNERABLE PEOPLE

Our corps support some of the most vulnerable and marginalised people in our communities, right across the UK. We believe that a fairer society, which upholds and supports all marginalised people, actually benefits us all. Our society will not work for anyone if it does not work for everyone.

We never judge, or question people’s vulnerabilities. Instead, we treat them with kindness, sensitivity, empathy and tolerance. Our intention is to be good stewards of the blessings God has given us.

HERE FOR PEOPLE EXPERIENCING HOMELESSSNESS

Warning signs for UK

Between April and June 2022, 2,998 individuals were sleeping rough in London. This was a jump of 16 per cent, compared with the same time in the previous year. Figures showed that 73 per cent had additional needs such as addictions and mental health problems.

These statistics were shared by Combined Homelessness and Information Network (Chain) but they only measured rough sleeping in England. The Army is calling for robust methods for recording numbers of rough sleepers for the whole country so that support services can be properly planned and sufficiently funded.

Even so, these figures acted as a warning. Not only is it a sign that the Government was drifting further from its commitment to end rough sleeping, but they could also point towards a deeper homelessness crisis as the cost of living bites.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

SUPPORTING YOUNG PEOPLE

Feeding empty stomachs

In summer 2022, The Salvation Army saw an unprecedented demand for our support from worried parents as they struggled to feed their children. Teachers, health visitors and GPs also referred children to us, who were at risk of going hungry during the school holidays.

Some of the many local Salvation Army churches and community centres providing free food for children during the school holidays included:

A Food Hunger Programme in Gateshead, which offered free breakfast and lunch for local children plus food to take home to their families twice a week throughout the six-week summer holidays.
A Summer Club in Anderton, Glasgow, that served up a hot meal for up to 60 primary school-age children.
A partnership with local schools in Reading Central giving healthy meals to families over the school holidays.

Feeding friendship and faith

Similarly to The Social Work Trust, there have been events run for people with disabilities such as the Enabled Summer School at The National Star College in Cheltenham.

The week-long calendar of activities included crafts, art, swimming, mindfulness, exercise and photography. Fellowship groups included Bible studies, discussion groups, Godly Play and a sensory group, with members exploring Scripture with a focus on rejoicing and joy.

Feeding hope and ambition

During the annual Self-Denial Appeal which takes place in March, Salvationists in the UK are encouraged to give sacrificially to support The Salvation Army in other countries. The appeal takes place in all countries where The Salvation Army is present, so it is truly a period when the UK Salvation Army joins forces with other Salvationists around the world. This year the appeal supported the Army’s global work with young people. Growing up in today’s world can be tough. It can be even harder for young people who endure discrimination, live in a country devastated by conflict or disaster, or face uncertainty.

Through the Self-Denial Appeal we gave young people faith and confidence to believe in themselves. We offered new opportunities, a safe place and guidance to create hope and a future.

Josfridah, a 17-year-old from Kenya, was one young person who benefited. Josfridah had been constantly bullied due to her spina bifida. She was a top student, but her self-esteem hit rock bottom. But she is now thriving at The Salvation Army’s Joytown School. Josfridah said: ‘I want to become a big person with dreams who will inspire other people.’

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

OLDER PEOPLE

We believe that it’s important to develop spiritually, socially, culturally and emotionally but also to challenge the stereotypes and prejudices we have about the ‘old’. We take our motivation from the words of Jesus who talked about ‘Life in all its fullness’ (John 10:10) which is the inspiration for our Vision Statement.

Striking the right note

There are almost 100 Singing by Heart groups across the territory, many run through local corps settings. Sessions are designed to encourage communication, recollection of memories and fun for all taking part. Songs are introduced by a relevant Scripture verse and concluded with a prayer.

One example is the fortnightly group run in a local care home in Yeovil by Majors Cheryl and Neil Davies. Major Cheryl said: ‘Seeing the joy on the residents’ faces is priceless, and their individual responses, whether it be clapping, tapping, dancing or something else, show that they are present in the moment and engaging on a level that may be hidden but not lost.’

Light in the dark

Over the past 15 years in Britain, the number of prisoners aged over 60 has tripled; and Majors Paul and Rita Conley, retired prison chaplains, have established the prison Cameo programme. These programmes run within HMPs Wymott, Usk and Prescoed.

The chaplaincy service supports both the activities of The Salvation Army Trust and The Salvation Army Social Work Trust. The Cameo programme ran activities like bingo, the chance to read, play chess or cards, watch documentaries or listen to guest speakers. We provided an oasis in what can be the darkest of places.

HELPING FAMILIES IN NEED

Stories of hope

Our Thorndale Family Centre in Belfast provided shelter, safety and support for families and single women in need of short-term accommodation due to issues such as relationship breakdown, financial hardship or domestic violence.

One example of the support offered was to bring children and parents together through reading. The Covid-19 pandemic and resultant home-schooling had set many children back, and some parents didn’t know how to read with their children.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Our team worked with BookTrust Northern Ireland, helping families to escape from their everyday struggles, promote feelings of wellbeing, inspire individuals and enhance language skills.

‘ We know the benefits children and families get from developing a love of books early in life. ’ — Chris Eisenstadt, director of BookTrust Northern Ireland.

Valuable debt advice

Our 25 advice centres continued to meet a growing need across the UK, providing free advice on debt and money management — and referring people to additional support as needs be.

Debt can happen to anyone due to an unexpected turn in life, and the ongoing cost-of-living crisis contributed to the daily struggle for many people. Workers on zero-hours contracts, self-employed workers, seasonal workers and others sought help with debt problems. It was not just those who weren’t working who were struggling.

Our approach:

Understand the level and type of debt.
Review finances and find ways to raise income and reduce expenditure.
Develop and agree a realistic debt solution.
Negotiate with creditors — freeze interest payments, agree a payment plan.
Support people during the repayment process and renegotiate if needs be.
Provide education about money — to change habits and minimise future debt.

Lorraine Cook heads up the work of the Army’s debt advice services. She said: ‘We can give people a debt solution, but we can’t solve poverty. In the past, government departments distanced themselves from church-based community services and provision. But now they are seeing the results that our services are providing, they want to work with us.’

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

LOOKING FORWARD AS A MOVEMENT:

The Salvation Army is a church and a movement that understands people and understands the communities where it has a presence. We understand the wider issues that impact on our society such as homelessness, addictions, slavery and the importance of employment.

Because we know and understand the symptoms and the deeper problems, we are committed to address them. That is why we are such an agile, responsive and constantly evolving and adapting organisation. This report has illustrated how we responded afresh in 2022/2023.

Looking ahead, we will continue to adapt and innovate in order to meet current and new needs. A critical feature as we move forward is to do whatever we can to enable our front line, or local mission delivery as we call it, to flourish. With effective resourcing, support and oversight, our continuing intention is to enable this ‘flourishing’ of the mission of The Salvation Army locally.

We will continue to provide essential funding for our corps and community centres to enable them to innovate, develop and continue to meet needs that are not being met.

We will continue to support The Salvation Army Social Work Trust to enable it to provide the best possible support for people in our residential centres and who engage with or are referred to us for support, and in the case of modern slavery and human trafficking, protection and a fresh, safe new start.

We will continue to ensure local mission is supported from our territorial and divisional headquarters in the ways it needs to in order to ensure effective, efficient and compliant ministry, including financial controls, safeguarding, safe mission (health and safety), staff development and training and effective procurement.

We will continue to build on the work of the Structural Co-ordination and Design Project by maintaining a culture of continual improvement across the territory with a real commitment to address any organisational issues that are obstacles to enabling local mission to flourish.

We will continue to invest in funds that allow innovation and will continue to invest in our fundraising to ensure we have a stable and sustainable future to serve our communities.

With changes in society, we will look at how we ensure we are encouraging different forms of church leadership and membership so we can move with the times but maintain our distinctive ethos.

Above all, we commit to ensuring a meaningful presence across the UK, to making a difference in people’s lives in practical and spiritual ways. Our commitment to 2024 and onwards is to continue to strive to deliver our vision: ‘Fullness of life for all with Jesus’. That is our driving force and our goal, and that vision sets the strategic direction for each of our corps and community centres and directs the support that our territorial and divisional headquarters will provide.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

MODERN SLAVERY AND ANTI HUMAN TRAFFICKING STATEMENT

As The Salvation Army in the United Kingdom and Ireland Territory, we hold a zero-tolerance stance on acts of modern slavery and human trafficking and on any breach of our Ethical Policy and will not condone any such action by our contractors, suppliers or consultants. We take this issue very seriously and are committed to preventing acts of modern slavery and human trafficking from occurring within our supply chain. Our Procurement Ethical Policy is integral to all supplier contracts and sets out the overall standards surrounding human rights, child labour, discrimination, corruption, bribery or other financial impropriety, legal compliance and ethical conduct with which our suppliers must comply.

A Supplier Ethical Declaration is referenced in the standard purchase terms and conditions of The Salvation Army and compliance is a contractual requirement for all suppliers operating under these standard terms and conditions. In addition, all suppliers and contractors submitting tender responses must confirm their agreement and acceptance of the terms and conditions and sign the ethical declaration and apply these standards to their own supply chains.

Our Procurement Unit continually reviews its supply base, examining suppliers in those areas that represent the highest risk of modern slavery, particularly in spend areas relating to temporary labour, cleaning, catering, linen, branded goods and building services. Where possible, trade and industry best practice standards are used as the benchmark and The Salvation Army has adopted the use of Constructionline for tendering and selecting building suppliers.

Due to the importance of training and education in the fight against modern slavery, the Procurement Unit has partnered with Stronger Together to deliver training to members of its team on identifying potential victims of modern slavery. All members of the Procurement team complete the Chartered Institute of Purchasing and Supply ethical procurement assessment annually.

The Procurement team holds regular Helping The Salvation Army Buy Better training seminars for stakeholders where ethical supply chain issues are covered. The Procurement team has also hosted a supplier conference with a specific focus on providing education on combating supply chain labour abuses. The commitment to ensuring ethical supply chain standards is also embedded in the recently adopted Salvation Army Fiscal Stewardship Principles and the Procurement Unit will be asked to report against these standards regularly.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

OUR APPROACH TO FUNDRAISING

Context:

The Salvation Army Trust, which is the charity registration through which our church and community-based operations are run, relies very heavily on income generated by fundraising and the continued support of individuals through gifts in Wills to keep our diverse services alive and operating across the UK.

We meet the constant challenge of raising these funds in different ways:

Local Salvation Army corps (churches) and community centres are expected to actively fundraise within their church membership and in their wider community to support their community programmes.
Salvation Army church members give generously as part of their personal commitment to God, to their corps and to the wider Salvation Army.
In addition, there is a centrally co-ordinated fundraising operation which manages the disciplines of national fundraising programmes, provides additional resources and support to corps-based fundraising and provides support to members of the public who want to raise funds for The Salvation Army. Principal activities of this are commented on below.
We also actively but sensitively ask members and supporters to consider including The Salvation Army in their Will.

During the financial year 2022/2023 we continued to strengthen our fundraising ensuring long-term stability for our voluntary income as we look to the future.

Relationship between The Salvation Army Trust and The Salvation Army Social Work Trust

Fundraising for The Salvation Army’s overall work across both its charitable trusts is carried out under the registration of The Salvation Army Trust, and therefore fundraising activity, income and expenditure are accounted for in this Report.

The Salvation Army Social Work Trust funds our centrally managed residential services for homeless and older people, as well as other centrally co-ordinated programmes such as our modern slavery services, Employment Plus service, and programmes for people with addictions and disabilities. Almost all government funding is accounted for in The Salvation Army Social Work Trust which has a separate charity registration and consequently a separate set of Report and Accounts which form a ‘sister’ publication to this. They are filed under charity registration number 215174 (England and Wales) and SCO37691 (Scotland).

A proportion of fundraised income in The Salvation Army Trust is granted to The Salvation Army Social Work Trust each year as part of the planned budgeting process, in line with our objects. This grant helps to meet the cost of the additional support we offer to our service users, on top of government and local authority funding. Our fundraising appeals to the public

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

feature the work of The Salvation Army across both trusts so there is absolute transparency that the funds donated go to support the work we illustrate in public appeals. The Gift Aid collected on behalf of The Salvation Army Trust is compliant with the HMRC requirements.

Corps-based (church) giving and local fundraising:

The UK Salvation Army has over 600 corps and community centres across the UK. Each corps or centre will develop programmes and services that are geared to meeting the needs of the people in the community, so there is huge diversity across the UK. Each local Salvation Army centre is expected to find ways to raise funds to support their local work as much as it can. This is achieved in several ways.

Church membership giving totalled £17.7 million in the year ended 31 March 2022/2023, an increase of £1.1m over 2021/2022. It is a substantial offering and this income from church members helps to sustain the local life of The Salvation Army as a church and meet as much of the operating overheads as it can.

In addition, local fundraising by our corps (churches) delivered approximately an additional £6m (public donations) which helps fund the practical support that is needed in the communities that The Salvation Army serves, examples of which are described in the narrative of this Report. Christmas carolling in town centres and street collecting are two of the familiar ways in which corps raise funds. Corps also frequently engage in digital forms of fundraising, using tools such as JustGiving.

Salvation Army church membership also actively engages in two main annual fundraising opportunities: the Self–Denial Appeal and the Big Collection .

The annual Self-Denial Appeal in February and March 2023 helps fund Salvation Army work in overseas territories. In 2023 the appeal raised £963k, on a par with what was raised in the previous year and a testament to the generosity, often sacrificial giving and determination of our members, officers and their families and friends.

The Salvation Army Big Collection is an annual public campaign in September, whereby church membership actively raises funds to support our Social Work Trust, supporting programmes for people experiencing homelessness, older people, and people needing help with addictions. Against a total of £503k raised in September 2021, in 2022 we almost matched that, raising a total of £498k, thus demonstrating the continued commitment and passion of our community.

National Fundraising:

Our centrally co-ordinated fundraising programme sensitively deploys many disciplines of fundraising in order to generate income for the work of The Salvation Army. Because the proportion of our donated income that derives from direct debits and regular giving schemes is small, at around 10 per cent of cash donations, the donations and legacies that are received during the financial year are the ongoing lifeblood of our organisation.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

The funds raised from national fundraising programmes go directly in the form of grants and mission support funding to enable corps to work within their communities where there are insufficient funds locally. Funds raised also help meet the cost of refurbishing our buildings and emergency repairs to ensure they are compliant and fit for the delivery of community programmes. Funds raised will also form the annual grant across to The Salvation Army Social Work Trust to provide additional services for our work with people who are homeless, older people and people with addictions.

Appeals to the public:

Despite a challenging economic environment, we saw amazing generosity in 2022/23. We received a total of £71.6m in donations from the public. As noted above, approximately £6m was raised locally by individual Salvation Army corps, and the remainder, approximately £59.1m, was secured by national and centrally co-ordinated fundraising activities, summarised below. Furthermore, we received a total of £61m in legacies.

It was a difficult year for everyone, and so we are enormously grateful that our supporters and the general public continued to give so generously. Total public and supporter donations in response to our national appeals programme was £51.3m. Although this was a slight drop from the previous year, we are still hugely thankful. This total includes regular giving and Gift Aid income, but excludes the significant sums raised for our Ukraine crisis appeal.

The majority of our appeals raised more than expected, with many supporters giving higher value donations than they had previously. Our national Christmas Appeal remains a key moment across our activity, raising a total of £22.2m and recruiting over 50,000 new, contactable supporters.

In a year where the cost-of-living crisis has caused increased uncertainty and hardship for many, The Salvation Army is sincerely thankful to all those who have donated towards our ongoing work to support people in desperate need.

Legacies:

We remain extremely grateful to our supporters who remember us with a gift in their Will. This is a hugely important income stream in support of our work, and protecting and sensitively encouraging more people to take this valued step is an important task. Following changes that created a separate Legacy Fundraising Unit, we have increased our skills and experience and are investing to ensure we are in strong position to make the most of the growth in legacy giving over the next 25 years.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

We received a total of £62.8m (£51.7m unrestricted and £11.1m restricted) in legacies, a decrease of £3.5m compared with legacy receipts in 2021/22. Tracking indicates that over 50 per cent of our legacies come from our existing supporters and the remainder from individuals who are not on our supporter database. Reaching and inspiring these supporters, as well as promoting our free Will writing services and how they can leave The Salvation Army a gift in their Will, is an important part of protecting this significant and stable future income stream. Understanding the motivations and barriers to leaving a gift and the characteristics of people who do so has been a focus of our work this year.

Almost £10m in future legacy income was pledged from activity in 2022-23. Inserts in targeted magazines were tested in June and February, when we also added press adverts, raising vital awareness and gaining new legacy supporters. Promotion online continued with a Facebook campaign in January promoting our free Will guide and we took part in Free Wills Month in October and March. Along with our other free Will writing services these raised our visibility to the wider public and secured 256 new legacy pledgers. In March we wrote to our donors asking them to consider leaving us a gift in their Will which resulted in almost 1,000 new legacy supporters. We take a sensitive and personal approach to enquiry handling and stewardship, ensuing we regularly show our appreciation for the commitment that has been made.

Grant-making trusts and foundations

Grant-making foundations and charitable trusts provide a vital contribution to many of our projects. We would like to express our sincere gratitude for their support. During 2022/23, we received over £1.9 million from charitable trusts and foundations in support of more than 245 local Salvation Army projects across the UK and internationally. The grants have contributed to the running costs of vital support projects including emergency food and fuel voucher provision in response to the cost-of-living crisis, debt advice, digital inclusion services and those supporting displaced Ukrainian citizens.

As an example, with a grant from one charitable trust, The Salvation Army was able to support 38 of our corps in the cost-of-living response. From food parcels, fuel vouchers, warm spaces and hot meals, we supported thousands of people across the UK who were struggling due to the dramatic increases in everyday items.

We are supporting families facing many issues, including those living in debt, survivors of domestic violence, people with mental health issues, refugee families and people who have no recourse to public funds.

Grants have also contributed towards the costs of renovating a building and outdoor space in Thorndale Family Centre, Belfast, using the principles of trauma-informed practice. The space is welcoming and calming and provides people with the time to reflect and share. The building also includes a fully equipped regulation (calm-down) room which is open for all children, young people and adults. This room is a safe place for people to go in times of high anxiety and stress where they can begin to self-regulate their emotions and deal with trauma.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Corporate giving:

2022/23 was a fruitful year for corporate fundraising. We received £50,000 from The Entertainer and £827,968 from Anglo American to support our emergency work in Ukraine. We also received a further £10,000 from The Entertainer to fund summer projects for children.

Christmas 2022 saw our fourth year of partnership with The Entertainer for the Big Toy Appeal. It achieved even greater success, reaching nearly 90,000 toys donated.

Finally, our Christmas Carol Concert provided an excellent opportunity to secure sponsorship from The Entertainer (£10,000), McLaren (£5,000) and Knox Cropper (£20,000) and a further £10,000 from Howdens to support our Christmas charity work.

We wish to offer our grateful thanks for the generous support of all our corporate partners.

Other fundraising : We continued to develop relationships with people who wanted to ‘do something’ to raise funds for The Salvation Army. We explored ways of supporting corps with their locally-based fundraising and we benefited from the increased contributions from supporters who participated in sporting challenges as well as those who chose to fundraise in their own way to raise funds for our work. Much of their contribution is channelled locally and we want to recognise their generous support.

Our Fundraising Approach

The ethos of our approach is that fundraising activities must reflect our values and should be carried out in a manner that the public and our supporters and funders would expect of The Salvation Army — sensitive, courteous, sincere and genuine.

We have an active fundraising presence in digital media and on our website and we regularly review our Privacy Notices and Privacy Statements to ensure we operate in compliance with GDPR.

We do not use professional fundraising agencies such as outbound telemarketing agencies or face-to-face/street fundraising agencies to fundraise on our behalf. Our public, street and house-to-house cash-collection fundraising operations are normally carried out by members and volunteers drawn from and connected with our congregations.

We do use an external agency to handle some inbound telephone donations in peak periods and to call back people who have contacted us to donate when we cannot handle such calls in-house by our own staff. This is usually at Christmas when call volumes are high. Call handling is monitored, and we set high standards for the way callers are spoken to and the training and support given to agency staff.

The term ‘professional fundraiser’ also encompasses supporters who participate in some challenge and mass participation fundraising events. These relationships are managed centrally with due diligence ensuring complete transparency in the agreement between The Salvation Army and the participant.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Fundraising Standards

We subscribe by annual levy to the Fundraising Regulator and thereby work to the standards of the Code of Fundraising Practice.

We are not aware of any failures to comply with the standards set by other regulatory bodies. We are members of the DMA — the Data and Marketing Association — and as members we are expected to uphold the highest levels of compliance and standards. We are corporate members of the Institute of Fundraising and fundraising managers are individual members.

Fundraising on our behalf

Where people or organisations offer to fundraise on behalf of The Salvation Army, we aim to ensure that a contract or agreement is in place and that the relationship, performance and delivery are overseen either locally or centrally.

Monitoring of Fundraising

We continually update and strengthen our internal processes and policies to ensure we have the highest ethical standards in accepting donations.

Salvation Army officers and corps treasurers will monitor fundraising carried out locally by members of the local congregation and by volunteers. Any donation in excess of £5,000 from a single source or related sources is reviewed and assessed by headquarters in line with our donations acceptance policy. Centrally we have a briefing and monitoring programme to assess the performance of our telephone bureau handling inbound donation calls and to ensure the quality of the calls meets our standards for sensitivity and kindness.

Trustees are briefed on the requirements of CC20 and how these requirements are being met as part of their duties in relation to fundraising.

Complaints

In the financial year under review, The Salvation Army received 40 complaints about our fundraising compared with a total of 58 complaints in 2021/2022. We strive to fundraise respectfully and believe the low number of complaints we receive each year reflects our sincere and sensitive approach to fundraising and how we communicate with our supporters and members of the public.

Any complaints we receive are handled in accordance with our Complaints Policy, which is based on the recommended standards set by the Fundraising Regulator. Our Policy is accessible on our website.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Protecting People in Vulnerable Circumstances

Within our fundraising ethos we take the protection of people in vulnerable circumstances very seriously. As a church and charity working locally and nationally with some of the most vulnerable and marginalised people in communities across the UK, and with a brand that is synonymous with kindness, sensitivity, sympathy, deep understanding and tolerance, we aim to fundraise in the most considerate ways we can and take appropriate action briskly when we are made aware of vulnerabilities. We have a specific Policy created in collaboration with our fundraising, supporter care and compliance teams to ensure we treat all our donors fairly, sensitively and respectfully. We provide dedicated training for our fundraising staff to ensure this Policy is understood and put into practice. Because we do not use external bodies or ‘professional fundraisers’ to fundraise on our behalf, we are very much in control of how fundraising appeals are carried out.

Our supporters and the charitable giving public generally make an essential, vital contribution to the life and work of The Salvation Army. The relationship we have with our supporters is precious to us. Therefore, the intentional spirit of our fundraising is based on what we feel it is fair, ethical and appropriate to ask for. Our behavioural values of integrity, accountability, compassion and respect are not only at the heart of our mission as a church and charity but are also the driving forces for the way in which we fundraise.

REVIEWING FINANCES

The Accounts have been prepared in accordance with the Charities SORP and Financial Reporting Standard 102 (FRS 102).

Our main sources of income are as follows:

Legacies Donations from the public Donations from members Grants Trading income Investment income Other income	2023 2022 £m £m
	62.8 66.3 71.6 72.9 17.7 16.7 3.4 4.8 106.3 95.1 3.5 4.5 15.1 21.8
	280.4 282.0

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Voluntary income

Voluntary income (including legacies, donations and grants from trusts and foundations) represents 55 per cent of our total income and we continue to be deeply and sincerely grateful to the individuals who have remembered us in their Wills, which is a crucially important, sustaining income stream. Donations from members represent the weekly or planned giving by soldiers and other members of The Salvation Army to their local Salvation Army corps (church).

Trading income

Trading income comprises:

Corps trading activities, mainly charity shops (£12.6 million). Net trading income is £5.6 million, compared with net trading income of £4.3 million in 2022.
Income of trading subsidiaries: The Salvation Army General Insurance Corporation (£20.4 million) and The Salvation Army Trading Company (£73.3 million). There has been an decrease in net trading income with a surplus of £5.6m down from a surplus of £7.6m.

Expenditure has increased from £226.7 million to £269.8 million.

Cost of raising donations and legacies Cost of trading activities Total cost of raising funds Charitable activities: Church and evangelism programmes Community programmes International programmes Training programmes Youth and young people’s programmes Grant to Social Work Trust Total charitable activities Financing activities Total expenditure	2023 2022 £m £m
	15.6 13.6 95.1 83.1
	110.7 96.7
	51.8 40.1 68.0 53.0 7.2 4.6 7.1 5.3 2.6 2.3 22.3 23.6
	159.0 128.8
	0.1 1.2
	269.8 226.7

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Costs of raising donations and legacies

This represents the costs of our central Fundraising Department and the cost of our appeals and other costs associated with raising funds.

Church and Evangelism Programmes

This represents Christian worship and the teaching and promotion of the Christian message at our corps, regionally and nationally.

Community Programmes

Programmes organised by our corps to meet the needs of their local community are increasing in scale and diversity, and are described elsewhere in this Report.

International Programmes

This represents grants to The Salvation Army International Trust, overseas projects funded by the UK Territory and the costs of the International Development Unit.

Training Programmes

This represents the costs of William Booth College which trains people to become Salvation Army officers and runs education and learning programmes for employees and officers.

Youth and Young People’s Programmes

This represents national programmes including The Salvation Army’s work with young people and young adults.

Grant to The Salvation Army Social Work Trust

This represents the financial support provided to our social programmes for those in need. This includes work with the homeless, older people, unemployed people and victims of human trafficking.

Net income (2022: income), which includes loss on investments of £0.5 million (2022: £14.0 million gain), was £10.1 million (2022: £69.2 million income).

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Total funds as at the year end were as follows:

Endowment funds Restricted funds: Property fund Corps funds Legacy reserves Trust funds Specific donations Unrestricted funds: Non-charitable trading funds Designated funds General reserve Total funds	2023 2022 £m £m
	15.2 16.4
	356.8 344.3 53.7 52.2 80.6 76.8 2.3 2.4 14.1 15.4
	507.5 491.2
	22.8 21.7 182.7 195.0 57.6 51.4
	263.1 268.1

	785.8 775.7

Endowment Funds

The endowment funds are represented by investments in William Leech (Investments) Limited and in the Common Investment Funds and the movement is due to the overall decrease in market value of those investments. The capital value of the funds is retained but the income is applied to fund our work.

Restricted Funds

The property fund represents property assets owned by The Salvation Army for operational purposes and hence is not available for expenditure.

Corps funds represents funds generated by corps. These are restricted for use in their local area.

Other restricted reserves represent funds given by donors for specific purposes.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Unrestricted Funds

Non-charitable trading funds are profits retained in the subsidiary companies to provide working capital for their trading operations.

Designated funds are set aside by the directors for specific purposes, principally the acquisition of officers’ quarters and major maintenance work on the property portfolio. Salvation Army officers (active and retired) are provided with accommodation. Funds have been set aside to enable the purchase of suitable properties as they are required. Funds have also been set aside to fund the work required on corps properties as part of our continuing planned maintenance rolling five-year programme. Funds are also designated to finance new Mission initiatives, contribute to Officers and Employees Pension Funds, fund Field Service Training and various approved standalone programmes. All designated reserves are reviewed annually for obsolescence with surpluses being transferred back to General reserves.

RESERVES POLICY

We rely on donations, legacies and grants to fund our activities. These can be uncertain and fluctuate from year to year. They represented 55 per cent of our total income for the year ended 31 March 2023. We need reserves to ensure that the operation of our church and community programmes can continue in the event of fluctuations in voluntary income and unexpected expenditure. We also want to be able to provide for the new and innovative opportunities that may appear to further the mission of The Salvation Army Trust.

The total value of funds held as at 31 March 2023 was £763m (2022: £754m). There are restricted reserves of £508m (2022: £491m), unrestricted reserves of £240m (2022: £246m), and endowment reserves of £15m (2022: £16m).

Unrestricted Funds

The unrestricted funds include both general reserves and designated funds. General reserves are utilised to fund the day-to-day needs of The Salvation Army. These were £57m as at 31 March 2023 (2022: £51m). The designated funds are unrestricted but set aside by the directors for specific purposes, £183m (2022: £195m).

General reserves at the year end were 57m which is above the target range of £29.9m to £49.2m. Like other charitable organisations, we are facing increased costs in delivering our missional activities and supporting vulnerable people within our society from high inflation as well as a challenging fundraising environment as the cost-of-living crisis continues to bite. A deficit budget is anticipated for 2023/24 which will result in a significantly lower general reserve. The trustee intends to review the reserves policy in 2023/24 taking account of the increasing internal and external risk factors.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

INVESTING FOR THE FUTURE

The charity holds its investments in The Salvation Army Common Investment Funds. These funds were set up under Schedule 2 of The Salvation Army Act 1980 to act as common investment schemes for certain Salvation Army Trusts.

The Salvation Army Common Investment Fund (No 1) consists of permanent endowments which are restricted by the wishes of the donor. In most cases the income is to be used for restricted purposes. The Salvation Army Common Investment Fund (No 2) is operated for those Salvation Army Trusts without permanent endowments. Both funds are managed by The Salvation Army Trustee Company. Cazenove Capital Management manages CIF1 and 50 per cent of CIF2, whilst Sarasin & Partners LLP manage 50 per cent of CIF2.

The funds are subject to The Salvation Army Act 1980 and the following guidelines:

the principal aim is to invest in a manner consistent with the promotion of the objects of The Salvation Army
investments should be made on longer-term considerations rather than in the pursuit of short-term gains
investments may be held in stocks, shares, debentures and other securities quoted on a recognised stock exchange, in government, municipal and public utility stocks and in bank deposit accounts
investments may be made in collective investment schemes, including those holding real estate assets
no direct investment may be made in unquoted securities in the UK or overseas
there will be no investment in companies which derive a material amount of their revenues (% indicated) from the following activities:
the production of alcohol (5%)
the sale, together with any production, of alcohol (10%)
the production of tobacco (5%)
the sale, together with any production, of tobacco (10%)
the manufacture of whole weapons, weapon platforms and weapon systems (no minimum limit)
the manufacture or sale of strategic parts for weapons systems (10%)
the business of gambling or providing access to such businesses (5%)
the production of adult entertainment services or providing access to such services (1%)
the publication or wholesale of pornographic magazines or newspapers (1%)
Investment managers are expected to exclude companies whose activities might reasonably be expected to increase poverty or act against the relief of poverty. The investment managers are required to monitor companies in the portfolios to ensure best practice in corporate governance, employment conditions and environmental sustainability.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

The Funds’ benchmark and ranges of distribution are as follows:

Asset Class Equities: Global Bonds Cash	Benchmark Range % % 100 +/-10 0 +10 0 +10 100

The aims and objectives of the Common Investment Funds are as follows:

CIF1

Fund strategy is:

to preserve the value of the Fund, adjusted for real inflation
to maintain a steady annual income stream

The performance objective of the Fund is to achieve an annual total return which exceeds the composite benchmark below by at least 1.25 per cent per annum, gross of fees, measured over rolling three-year periods, commencing 1 January 2011.

Asset Class

Performance Benchmark

UK Equities FTSE All-Share Europe (ex-UK) Equities FTSE All World Developed Europe (ex-UK) Emerging Markets Equities FTSE All World Emerging Markets Asia Pacific Equities FTSE All World Developed Asia Pacific United States Equities S&P 500 Property IPD UK Property

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

CIF2

The Fund strategy is to aim for capital growth rather than income. The performance objective of the Fund, excluding cash and gilts under lien, is to achieve an annual total return which exceeds the composite benchmark below by at least 1.25 per cent per annum, gross of fees, measured over rolling three-year periods commencing 1 January 2011.

Asset Class Performance Benchmark UK Equities FTSE All-Share Europe (ex-UK) Equities FTSE All World Developed Europe (ex-UK) Emerging Markets Equities FTSE All World Emerging Markets Asia Pacific Equities FTSE All World Developed Asia Pacific United States Equities S&P 500 Property IPD UK Property Cash and gilts under lien FTSE Gilts under 5 years

Performance for the year compared to the benchmark was as follows:

	CIF1	CIF2
	%	%
Annual total return (gross of fees)	4.0	1.1
Benchmark return	-2.6	-2.6

For the year to 31 March 2023, CIF 1 and CIF 2 overperformed in challenging circumstances compared to global market benchmark. The performance is being monitored on a regular basis through discussions with the respective investment fund managers.

In absolute terms the performance of the Common Investment Funds for the year was as follows:

	CIF1	CIF1	CIF1	CIF2	CIF2	CIF2
	2023	2022	2021	2023	2022	2021
	%	%	%	%	%	%
(Decrease)/Increase in capital
value of fund	2.9	6.8	22.3	-0.1	17.1	25.5
Average net income return	0.5	0.4	0.5	0.7	0.7	0.8

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

The United Kingdom and Ireland Territory is under the command of a Territorial Commander, appointed by The General and responsible to him/her for the day-to-day administration of Salvation Army work throughout the British Isles, including the Channel Islands, the Isle of Man and the Republic of Ireland.

The Salvation Army’s assets in the United Kingdom are held by The Salvation Army Trustee Company (SATCo), a company limited by guarantee, registered in England (No 00259322) with its registered office at 1 Champion Park, London, SE5 8FJ. The governing document of The Salvation Army Trust is The Salvation Army Act 1980, as amended. Under Section 12(1)(a) SATCo is appointed as the sole ordinary trustee of the trusts listed in Schedule 5 to that Act.

The two main trusts under which The Salvation Army operates in the United Kingdom are:

The Salvation Army Trust, whose accounts are contained in this Report; and
The Salvation Army Social Work Trust, Charity Registration No 215174 in England and SC037691 in Scotland.

Connected Trusts

SATCo is the trustee of a number of connected charitable trusts which are concerned with specific aspects of the Army’s work.

The Salvation Army Social Work Trust

Governing instrument: Deed Poll dated 30 January 1891 and a supplementary deed dated 26 March 1969. Charity registration No 215174 in England and SC037691 in Scotland.

The objects of The Salvation Army Social Work Trust are to promote the charitable work of The Salvation Army, as SATCo shall think fit, in one or more of the following ways:

the relief of poverty, sickness, suffering, distress, incapacity or old age
the advancement of education
training in Christian and moral principles
the assistance of those in need of protection

William Booth Memorial Trust

Governing instrument: Trust Deed dated 19 September 1921. Charity registration No 312882.

The purpose of this trust is the establishment, maintenance and operation of a college for the instruction and training of men and women for service as officers of The Salvation Army and others involved with or interested in the mission of The Salvation Army.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

RISK MANAGEMENT

The Salvation Army identifies, assesses and manages risks that could impact its activities so it can better achieve its objectives, comply with relevant laws and regulations and safeguard its funds and assets.

The Board (SATCo) has ultimate responsibility for overseeing risk management, in accordance with Charity Commission guidance (CC26). The Risk Management Committee (RMC) directs an enterprise-wide risk management programme to inform decision making and ensure effective procedures to identify and evaluate risks and implement effective controls.

The RMC considers the most recent developments in the most significant risks, while also prioritising broader developments to The Salvation Army’s approach to risk management. Current plans include promoting a deepening appreciation of the complexities of risk management within a wide-ranging structure, the importance of metrics to inform risk management and the implications of macro and global risks that may have consequences for the organisation.

Risk management operates through a top-down review by the RMC and bottom-up review by individual functions, enabling the identification and prioritisation of key and emerging risks. This enables site and service-specific concerns to be identified and managed, whilst retaining high-level oversight and assurance of the most significant risks facing the organisation. The RMC reports to the Board at least twice yearly on key risks. Through this risk management process the trustees have considered the major risks facing the organisation and satisfied themselves that controls are established to manage them.

Unfortunately, the nature of our work means that despite the steps we take, serious incidents can still arise, and we continue to place the utmost importance on reporting these to our regulators.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Principal risks

The Salvation Army’s work is diverse, geographically spread across a broad range of settings and has a variety of beneficiaries. The risk landscape is therefore varied, and controls are deployed appropriately at different levels of the organisation. The following outline indicates the most significant risks to The Salvation Army in the reporting period, and some of the strategic level mitigations we have in place.

Principal Risks	Mitigation
Business Continuity— There is a risk that the occurrence of a signifcant incident where, during and after the incident, The Salvation Army will not be able to continue to be viable and meet stakeholder expectations.	Business continuity policies and procedures, including the application of ISO27001 for some parts of the organisation, prepare us for management of interruptions.
Cyber— The risk is that we fail to protect our information systems and the information they hold.	We deploy multiple measures to protect our systems and the information they hold. We work within an information security international standard (ISO27001) and build on lessons from our internal and external audits in this area.
Data Protection— The risk is that we fail to protect sensitive and personal data.	As well as our data protection/GDPR policies and training, we take steps to ensure that personal data is treated properly through appropriate security measures, staff training, the use of data protection impact assessments and contractual requirements with organisations we work with who process our personal data.
Financial Sustainability— The risk is that there is insuffcient revenue income from donations and reserves to support our operating model resulting in the failure of The Salvation Army to thrive in a rapidly changing environment.	We continue to monitor the funding situation and adjust our fnancial planning and commitments accordingly to ensure we are fnancially resilient.
Healthy Corps and Centres— There is a risk that a variety of factors prohibit fourishing of our churches and centres.	We seek to understand how our corps (churches) and centres can thrive in a wider environment of falling church attendance. We are taking steps to establish and measure factors that contribute to healthy mission and provide close support to our corps offcers in their daily work.
Safeguarding— The risk is that we fail to provide a safe environment, free from abuse, for everyone, including vulnerable benefciaries.	We continue to maintain clear policies and procedures in relation to safeguarding and ensure the appropriate screening, training and supervision of personnel. A subcommittee of RMC — the Territorial Safeguarding Committee — oversees management of the risk.
Safe Mission— The risk is that we are not able to ensure the health, safety and welfare of personnel, service users and members of the public who are affected by our activities.	Comprehensive policies, procedures and guidance are in place, alongside a supervisory control framework. Two RMC subcommittees — the Safe Mission Council and the Sudden Deaths Review Group — inform the management of this risk.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

SUBSIDIARY AND ASSOCIATED COMPANIES

The following companies are beneficially owned by The Salvation Army Trust (percentage held) and donate all or part of their profits to The Salvation Army Trust:

The Salvation Army Trading Company Limited (SATCoL) (100%)
The Salvation Army General Insurance Corporation Limited (SAGIC) (100%)

1. SATCoL is a wholly owned subsidiary of The Salvation Army Trust. Its main activity is the collection and sale of second-hand clothes donated by the public through both wholesale and retail activities in its 230 charity shops and donation centres, recycling and also the supply of Salvation Army publications, uniforms and other related materials.

2. SAGIC is a wholly owned subsidiary of The Salvation Army Trust and was formed in 1909. Its principal activity is transacting property insurance in the United Kingdom. SAGIC also provides home and contents insurance to officers, members and supporters of The Salvation Army as well as to the general public, either directly or through its broker network.

Connected Company

The Salvation Army Trust holds 20 per cent of the shares in William Leech (Investments) Limited

RECRUITMENT AND APPOINTMENT OF DIRECTORS (TRUSTEES)

There are 13 directors, 8 by virtue of their appointments within The Salvation Army. One director is a divisional leader responsible for one of The Salvation Army’s 14 divisions.

The other five directors are non-executive directors each bringing expertise in a relevant field, as approved by The General — including property, finance, investments or social services. The appointment of non-executive directors is made by SATCo on the recommendation of the Nominations Committee.

Training and Induction of Directors

The Company Secretary briefs new directors on their legal responsibilities and familiarises them with the Company’s governance folder (and previous Board minutes). This includes the articles of association of SATCo, the Charity Commission’s essential trustee guidance, and other key documents and policies (including the Conflicts of Interest Policy). The Company Secretary regularly delivers a written governance update on relevant issues at board meetings. Directors are also informed of and provided with the opportunity to attend several training sessions throughout the year.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Organisational Structure and Decision Making

SATCo’s board (‘the Board’) is assisted by an Audit Committee, a Nominations Committee, an Investment Advisory Committee and a Risk Management Committee. The Audit Committee comprises a non-executive director chair and three independent members with a remit to review The Salvation Army’s internal and external audit arrangements and consider reports issued by internal and external auditors including the annual financial statements. The role of the Nominations Committee is to recommend new non-executive Board members. The Investment Advisory Committee includes three external advisers in its membership and advises on appropriate investments. The Risk Management Committee is referred to below under Risk Management.

The Board met bi-monthly, with some additional meetings scheduled as required in this reporting year. In addition to its oversight and governance role, the following matters require consideration and approval by the Board:

annual budget
individual items of expenditure of £5 million and above
investment policy, on the recommendation of the Investment Advisory Committee
Risk Register
Key policies
Annual Financial Statements

The Board has delegated day-to-day operational matters to the Territorial Operations Board, under the leadership of the Chief Secretary.

During the 2019/20 financial year, the Audit and Assurance Department reviewed SATCo’s performance against the Charity Governance Code for larger charities. The review identified a number of areas in which SATCo was performing well and other areas for development. Another assessment has been requested by the Chairman of SATCo to take place in the 2023/24 financial year.

Directors’ Responsibilities

The directors of SATCo are required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of The Salvation Army Trust, and of the income and expenditure for that period. In preparing the financial statements, the directors are required to:

select and consistently apply suitable accounting policies
make judgements and estimates that are reasonable and prudent
state whether applicable accounting standards have been followed
observe the principles of the Charity SORP
prepare the financial statements on a going concern basis unless it is inappropriate to presume that The Salvation Army Trust will continue to operate

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of The Salvation Army Trust and are required to ensure the financial statements comply with The Salvation Army Act 1980, the Charities Act 2011 and The Charities and Trustees Investment (Scotland) Act 2005. They are also responsible for safeguarding the Trust’s assets, taking reasonable steps to prevent and detect fraud and other irregularities.

The directors confirm they have regard to the Charity Commission’s guidance on public benefit that is relevant to The Salvation Army Trust.

Remuneration of Key Management

Key management personnel of The Salvation Army comprise Salvation Army officers and employees. Salvation Army officers do not receive a salary; they receive an allowance based on length of service and seniority of position, and as ministers of religion are provided with furnished accommodation and a motor vehicle. The allowances received by officers in positions of key management range from £19,377.96 to £25,471.57 per annum.

Further information is disclosed in Notes 10 and 11 to the Accounts.

For employees, we are committed to ensuring a proper balance between paying salaries which will enable us to attract and retain staff of the appropriate calibre and careful stewardship of charitable funds. All senior salaries are benchmarked against senior staff salaries of comparable organisations in the not-for-profit sector.

On behalf of the Directors of The Salvation Army Trustee Company 15 December 2023

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

DIRECTORS

The current directors of The Salvation Army Trustee Company and those who held office during the financial year are as follows:

Commissioner Anthony Cotterill ............... Chair Colonel Paul Main ............................... Deputy Chair Colonel Jenine Main Lieut-Colonel Alan Read ....................... Managing Director Lieut-Colonel Andrew McCombe Lieut-Colonel Beverley McCombe Lieut-Colonel Dean Pallant Lieut-Colonel Judith Payne Major Mark Herbert ............................. (appointed 10.02.23) Major Noreen Batt ............................... (until 18.11.22) Major Judith Hilditch ............................ (until 30.04.23) Helen O’Brien Philip Edwards ................................... (appointed 09.09.22) Mark Puller ....................................... (until 12.05.23) Peter Gale Andrew Stickland

The Chief Secretary, Colonel Paul Main, is responsible for the day-to-day management of the charity.

Committee Members (current)

Territorial Operations Board

Colonel Paul Main (Chair), Commissioner Gillian Cotterill, Major Jane Cowell,

Tony Daniels, Major David Shakespeare, Miguel Fiallos, Peter Grant, Major Paul Kingscott, Major Mike Lloyd-Jones, Mitch Menagh, Alex O’Hara, Major Julian Watchorn, Major Richard Waters, Julius Wolff-Ingham, Nick Redmore

Audit Committee

Andrew Stickland (Chair), Stephen Bright, Hannah Greenfield, Mike Grills

Investment Advisory Committee

Peter Gale (Chair), Mark Colton, William Dalziel, Mary Haly, Lieut-Colonel Alan Read, Philip Rotherham

Nominations Committee

Commissioner Anthony Cotterill, Colonel Paul Main, Lieut-Colonel Alan Read, Elliot Thomas, Helen O’Brien

Risk Management Committee

Helen O’Brien (Chair), Major Kerry Coke, Lieut-Colonel Andrew McCombe,

Lieut-Colonel Beverley McCombe, Lieut-Colonel Dean Pallant, Lieut-Colonel Alan Read, Elliot Thomas, Daniel Wills, Major Julian Watchorn, Julius Wolff-Ingham, Major David Shakespeare, Lynette Sturgeon

Company Secretary

Elliot Thomas is Company Secretary of The Salvation Army Trustee Company.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

ADVISERS

Bankers

Reliance Bank Limited, Faith House, 23/24 Lovat Lane, London EC3R 8EB

Auditors

Knox Cropper LLP, Chartered Accountants, 65 Leadenhall Street, London EC3A 2AD

Solicitors

England and Wales: Slaughter and May, 1 Bunhill Row, London EC1Y 8YY Scotland: Blackadders, 5 Rutland Square, Edinburgh EH1 2AX

Investment Advisers

BWCI Consulting Limited, PO Box 68, Albert House, South Esplanade, St Peter Port, Guernsey GY1 3BY

Investment Managers

Cazenove Capital Management, 12 Moorgate, London EC2R 6DA Sarasin & Partners LLP, Juxon House, 100 St Paul’s Churchyard, London EC4M 8BU Legal & General Investment Ltd, One Coleman Street, London, EC2R 5AA

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Independent Auditors Report to the Salvation Army Trustee Company, the Managing Trustee

Opinion

We have audited the consolidated financial statements of The Salvation Army Trust for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Balance Sheets, the Consolidated Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice)’.

In our opinion the financial statements:

(a) give a true and fair view of the state of The Salvation Army Trust and parent charity’s affairs as at 31 March 2023 and of the group’s incoming resources and application of resources, for the year then ended;
(b) have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’;
(c) comply with the requirements of the OfS’s accounts direction; and
(d) have been prepared in accordance with the requirements of the Charities Act 2011, the Charities and Trustees Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

In our opinion:

funds from whatever source, administered by the charity for specific purposes, have been properly applied to those purposes and managed in accordance with relevant legislation.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The trustee is responsible for the other information.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 and the Charity Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

the information given in the Trustee’s Annual Report is inconsistent in any material respect with the financial statements; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Responsibilities of trustee

As explained more fully in the trustee’s responsibilities statement, the trustee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustee is responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144(1) of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

The Charity is required to comply with charity law and, based on our knowledge of its activities, we identified that the legal requirement to comply with charity law including accurately accounting for restricted funds was of key significance.
We gained an understanding of how the Charity complied with its legal and regulatory framework, including the requirement to properly account for restricted funds, through discussions with management and a review of the documented policies, procedures and controls.
The audit team, which is experienced in the audit of charities, considered the Charity’s susceptibility to material misstatement and how fraud may occur. Our considerations included the risk of management override.
Our approach was to check for compliance with charity law and tax legislation applicable for charities and to ensure that all restricted income was properly identified and separately accounted for. This included reviewing journal adjustments and unusual transactions.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorseresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken, so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s trustees as a body, for our audit work, for this report or for the opinions we have formed.

65 Leadenhall Street Knox Cropper LLP London EC3A 2AD Chartered Accountants Statutory Auditors

Knox Cropper LLP is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

The Salvation Army Trust Financial Statements

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Notes INCOME AND ENDOWMENTS FROM Donations, Legacies and Grants Legacies Donations — Public Donations — Members 2 Grants 3 Trading Activities 4 Investments 5 Other Gain on property disposal Other income Total Income EXPENDITURE Raising Funds Costs of raising donations, legacies and grants Costs of trading activities 4 Charitable Activities 7 Church and Evangelism Programmes Community Programmes International Programmes Training Programmes Youth and Young People’s Programmes Grant to The Salvation Army Social Work Trust Financing Costs 17 Total Expenditure Gains/(Losses) on Investments 16(a) Net Income/(Expenditure) Transfer between funds 21/22 NET MOVEMENT IN FUNDS Fund balances brought forward Fund balances carried forward at 31 March 2023	Endowment Restricted Unrestricted 2023 2022 Total Total £000 £000 £000 £000 £000
	- 11,101 51,652 62,753 66,278 - 11,383 60,179 71,562 72,949 - 17,586 142 17,728 16,617 251 3,047 86 3,384 4,759 - 12,644 93,659 106,303 95,099 - 1,121 2,433 3,554 3,444 - 3,281 9,400 12,681 20,817 - 2,448 - 2,448 1,991
	251 62,611 217,551 280,413 281,954
	- 53 15,528 15,581 13,612 - 7,023 88,057 95,080 83,121
	- 7,076 103,585 110,661 96,733
	- 25,974 25,847 51,821 40,133 - 38,987 29,038 68,025 53,005 - 4,067 3,119 7,186 4,551 - 19 7,090 7,109 5,270 - - 2,585 2,585 2,337 - - 22,373 22,373 23,547
	- 69,047 90,052 159,099 128,843
	- - 48 48 1,169
	- - 48 48 1,169
	- 76,123 193,685 269,808 226,745
	(1,358) (4) 885 (477) 13,986
	(1,107) (13,516) 24,751 10,128 69,195
	- 29,810 (29,810) - -
	(1,107) 16,294 (5,059)10,128 69,195
	16,345 491,220 268,111 775,676706,481
	15,238 507,514 263,052 785,804 775,676

All activities reported above, in both the current and preceding years, reflect ongoing activities. The annexed notes form part of these financial statements.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2023

Notes FIXED ASSETS Intangible Fixed Assets 13 Tangible Fixed Assets Properties 14 Property Schemes in Progress 14 Motor Vehicles and Equipment 15 Investments 16 CURRENT ASSETS Short-Term Deposits Stock Debtors 17 Bank Balances and Cash CREDITORS: amounts falling due within one year 18 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS: amounts falling due after one year 19 TOTAL NET ASSETS FUNDS Endowment Funds 20 Restricted Funds Property Fund 21 Other Restricted Funds 22 Unrestricted Funds 23 TOTAL FUNDS 24	Consolidated Trust 2023 2022 2023 2022 £000 £000 £000 £000
	152 312 - - 315,858 309,613 310,384 303,817 69,189 39,373 69,189 39,373 16,642 9,955 4,151 2,220 249,800 249,739 253,084 252,723
	651,641 608,992 636,808 598,133
	61,552 72,128 61,552 72,128 1,938 2,134 209 204 44,968 60,354 40,871 48,258 69,276 76,613 51,711 58,805
	177,734 211,229 154,343 179,395 (43,182) (44,084) (27,758) (23,105)
	134,552 167,145 126,585 156,290
	786,193 776,137 763,393 754,423 (389) (461) (389) (461)
	785,804 775,676 763,004 753,962
	15,238 16,345 15,238 16,345 356,789 344,331 356,789 344,331 150,725 146,889 150,725 146,889 263,052 268,111 240,252 246,397
	785,804 775,676 763,004 753,962

Approved on behalf of The Salvation Army Trustee Company on 15 December 2023.

The annexed notes form part of these financial statements.

Lieut–Colonel Alan Read Director

Colonel Paul Main Director

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

				2023	2022
			Notes	£000	£000
NET CASH OUTFLOW FROM OPERATING ACTIVITIES			28	21,297	38,005
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES
Additions to Properties				(17,811)	(8,617)
Net Additions to Property Schemes in Progress				(33,130)	(16,680)
Proceeds on disposal of Properties				18,336	30,558
Additions to Motor Vehicles and Equipment				(9,671)	(3,706)
Proceeds on disposal of Motor Vehicles and Equipment				32	9
Additions to Investments				(789)	(30,474)
Proceeds from disposal of Investments				359	4
Investment Income				3,554	4,491
Management of short-term deposits				10,576	(10,099)
				(28,544)	(34,514)
NET CASH (OUTFLOW) FROM FINANCING ACTIVITIES
Loan Repayments				(90)	(52)
Increase/(Decrease) in Cash and Cash Equivalents				(7,337)	3,439
Cash and Cash Equivalents at beginning of year				76,613	73,174
Cash and Cash Equivalents at end of year				69,276	76,613
	Balance		Cash-Flows	Loan	Balance
	1 April			Repayments	31 March
	2022				2023
	£000		£000	£000	£000
ANALYSIS OF CHANGES IN NET DEBT
Cash at Bank	76,613		(7,337)	-	69,276
Loans falling due within one year		(46)	-	18	(28)
Loans falling due after more than one year	(461)		-	72	(389)
	76,106		(7,337)	90	68,859

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial statements and which have been consistently applied are set out as follows:

(a) Basis of Accounting

The financial statements have been prepared under the historical cost convention, subject to the inclusion of investments at market value and donated properties at valuation on acquisition and, are in accordance with the Charities SORP (FRS 102) (second edition — October 2019), Financial Reporting Standard 102, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and the regulations issued thereunder.

The Salvation Army Trust is a public benefit entity as defined by FRS 102.

Through careful stewardship, monitoring of budgets and reforecasting, the Salvation Army Trust has returned a surplus at the Year End 31 March 2023.

Going Concern

In preparing these financial statements the trustee has considered whether the charity has adequate financial resources to settle its debts as they fall due and can manage business risks. In reaching its decision, the trustee has considered the planning processes including financial projections, and the consideration of the prevailing economic climate and its potential impact on the various income streams and planned expenditure.

Despite cost-of-living challenges, the Salvation Army Trust income remained at the level of the previous year with good trading activity performance and overall donations on a par. Expenditure due to increased programme and costs rose substantially over the previous year; however, there was a small increase in overall funds.

The General Reserve is in excess of the upper end of the reserves target which the trustee considers appropriate given the increased demand on funds in the current year following a move to pay the Real Living Wage, significant investment in fundraising and IT, together with high inflation and increased cost of utilities.

In 2024/25 the primary focus upon financial sustainability will take precedence as income continues to be under pressure whilst operational demands continue and the economic environment drive costs upwards.

On the basis of the above, the trustee has concluded that there is no material uncertainty about the Trust’s ability to meet its debts as they fall due for at least 12 months following approval of the financial statements and therefore continues to adopt the going concern basis in preparing its financial statements.

(b) Consolidation

The financial statements aggregate the results of the corps which, for the purposes of compliance with the Statement of Recommended Practice, are considered to be branches, and the results of the subsidiary companies, and of the subsidiary trust (William Booth Memorial Trust).

(c) Key judgements and estimates used in preparing these financial statements

(i) Financial instrument classification

The classification of financial instruments as ‘basic’ or ‘other’ requires judgement as to whether all applicable conditions are met. This includes a review of the form of the instrument and its return. All financial instruments, including loans, are currently classified as ‘basic’.

(ii) Capitalisation of property improvement and development

Property improvement and development schemes are reviewed to ascertain whether expenditure should be capitalised or charged to the Statement of Financial Activities. Expenditure which enhances the social use of the property or improves its economic return is capitalised. Expenditure which repairs a property and brings it back to its original condition is written off.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

(iii) Useful lives of properties and other fixed assets

The useful lives of properties and other fixed assets are reviewed at each reporting date and depreciation rates for asset categories adjusted accordingly if required.

(iv) Pension obligations

The provision for contributions payable in respect of past service deficits on the Trust’s defined benefit pension scheme is calculated by the appointed actuary taking into account assumptions relating to the discount rate, inflation and increases in salaries and allowances.

(v) Identification and valuation of investment properties

The Group’s property portfolio is reviewed annually to identify investment properties, which are those properties held to earn income or for capital appreciation rather than to be used for its charitable purposes. Properties no longer used for charitable purposes but retained until market conditions allow their disposal are not treated as investment properties, provided disposal is intended within a two-year window.

After initial recognition, investment property is measured at its fair value based either on valuation by The Salvation Army Property Department or by an independent valuer. In either case the valuer will hold a recognised and relevant professional qualification. The property will be valued at each subsequent reporting date.

(vi) Provisions in the insurance subsidiary company

Judgements and estimates are made in calculating the insurance technical provisions which are based on claims and premium trends from the previous year, in compliance with FRS 103.

(d) Income

(i) Donations and Legacies — Donations are accounted for when received. No amounts are included in the financial statements for services by volunteers. Gift Aid receivable is included as income when the donation is made and where there is valid Gift Aid declaration from the donor.

Legacies income is recognised when it satisfies the following criteria:

a) There is sufficient evidence of a legacy having been left to the organisation based on probate having been granted before the year end;
b) For pecuniary legacy interests, notification has been received from the executor. For residuary legacy interests, the Trust has received the confirmation of sufficient assets in the estate, in the form of either an assets and liabilities statements or estate accounts and there is no material known outstanding disputes. For all other types of legacy interests, the Trust has a reasonable estimate of the amount due. In each case this information is notified to the Trust by the date of signing the accounts;
c) Where a legacy is subject to the interest of a life tenant, the income will not be recognised until the death of the life tenant; and
d) Measurement of legacy income is exposed to inherent uncertainties represented by property and other investments whose value is subject to market fluctuations until realised. The Trust recognises this by using the latest available estate valuation information and allowing fluctuations with a provision against income of 10% per estate, based on historic trends.
(ii) Investment Income — Dividends and interest are brought into account gross in the year for which they are received or receivable.
(iii) Grants receivable are recognised on an accruals basis. Grants received in advance of entitlement conditions being met are deferred on the balance sheet. If amounts are receivable for specific purposes, the income is shown as restricted.
(iv) Profits and losses on disposal of assets are reflected in the Statement of Financial Activities in the year of disposal.
(v) Trading Income — Trading income is recognised at the point of sale for retail sales and at the time of distribution for wholesale unsorted clothing. Trading income also includes insurance income and Gift Aid through the shops.
(vi) Premium income of the insurance subsidiary is recognised by reference to the period over which the premium is earned. Unearned premiums represent the proportion of premiums written in the year that relate to the unexpired terms of the policies in force at the balance sheet date, calculated on a time apportionment basis.
(vii) Funds raised by local corps, including trading income, are deemed to be restricted for use in the local area, as the expectation of local donors is for monies to be used to fund local communities.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

(e) Expenditure

Expenditure is charged on the accruals basis.

(i) Irrecoverable Value Added Tax is charged to the related expenditure.
(ii) Expenditure
Costs of raising donations, legacies and grants consist of direct campaign appeal expenses and the running costs of the Fundraising Department.
Cost of trading activities consists of cost of sales, distribution and operational costs and the claims costs of the insurance subsidiary.
Charitable Activities consists of all expenditure relating to the objects of the charity including the costs of supporting charitable activities and projects.
Support costs, including governance, have been apportioned to each category of expenditure: number of Full Time Equivalent, equipment per headcount, transactions and buildings per cost centre.
(iii) The non-capital element of property schemes is written off in the year of completion, and a provision is made annually for schemes in progress. The capital element of such schemes not completed at the year-end is carried forward in the Balance Sheet under the heading of Property Schemes in Progress and is accounted for as a fixed asset.
(iv) Retired Officers Allowance Fund — This is a multi-employer charitable fund which operates in a similar way to a defined benefit pension fund. The assets and constructive liabilities cannot be separately identified and therefore the amount charged in the Statement of Financial Activities represents the contribution payable during the year in respect of current service and the total contributions payable (or movement in provision thereof) in respect of past service.
(v) Employees Pension Fund — This is a multi-employer pension fund where the assets and liabilities cannot be separately identified and therefore the amount charged in the Statement of Financial Activities represents the contribution payable during the year in respect of current service and the total contributions payable (or movement in provision thereof) in respect of past service. The actuarial valuation is done on a three-year cycle, and each year we designate an amount of money to meet the deficit at the end of the cycle.
(vi) The claims costs of the insurance subsidiary comprise claims paid in the period and the change in provisions for outstanding claims, including provisions for claims incurred but not reported. A separate estimate is made for the amounts that will be recoverable from reinsurers based on the gross provisions, having due regard to collectability.

(f) Fixed Assets

(i) Expenditure on the acquisition or improvement of property is reflected as a fixed asset, whereas costs of repairs and renewals to property are charged to the Statement of Financial Activities.
(ii) Expenditure on the acquisition of vehicles is capitalised and expenditure on computer equipment and other office equipment which exceeds £15,000 in value (individually or for groups of related assets) is capitalised and depreciated over its economic life.
(iii) In accordance with FRS 102 component accounting has been adopted for freehold and long leasehold properties. A property comprises of major components with substantially different useful lives. Depreciation is charged on major components so as to write off the cost of the components to their residual values, over their estimated useful lives, using the straight-line method, as follows

Freehold Land Not depreciated Property Schemes In Progress Not depreciated Building — Main Fabric (structure) 50 years Major Components Roof structure and covering 50 years Bathrooms and WCs 20 years Lifts 25 years Mechanical and Electrical Systems 25 years Windows and External Doors 25 years Kitchens 20 years Short leasehold properties are depreciated over the term of the lease.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

(iv) Depreciation is provided on other tangible fixed assets at the following rates:
Motor Vehicles - 25% pa on cost
Office Equipment
25% pa on cost
(v) Goodwill arising on acquisition is amortised on a straight-line basis over the estimated useful life which has been estimated to be 10 years.
(vi) Other intangible assets consist of patents and trademarks and are being amortised over their estimated useful life of 5 years.

(g) Investments

To comply with the Statement of Recommended Practice investments are included at market value (bid price). Unlisted investments are valued at the share of underlying net assets which equates to fair value. Investment properties have been valued by an internal property surveyor. Residential investment properties have been valued by reference to recent sales of similar properties in the area. Commercial investment properties have been valued by reference to their current rental income.

(h) Stocks

(i) Stocks are valued at the lower of cost and net realisable value.
(ii) The stock does not include any donated goods.

(i) Funds

(i) The Property Fund represents monies already expended on the acquisition, construction and improvement of freehold and leasehold properties. Unrestricted designated funds which are applied for property purposes are categorised as restricted giving rise to a transfer during the year.
(ii) The Endowment Funds are held for restricted purposes, where the income only is available to be used in accordance with the wishes of the donors.
(iii) The Restricted Funds are held for restricted purposes, as specified by the donors.
(iv) The Unrestricted Funds include: Designated Reserves held for particular purposes designated by the trustee in the exercise of its discretionary powers and General Reserve representing the net assets not designated for specific purposes.

2. MEMBERS’ DONATIONS

This represents Salvationists’ personal giving to support their local corps (church) and the work of The Salvation Army.

3. GRANTS RECEIVABLE

Government Grants Covid-19 Local Authority (incl Covid grants) Trusts	Endowments Restricted Unrestricted 2023 2022 Total Total £000 £000 £000 £000 £000
	- - 12 12 539 - 1,507 - 1,507 2,072 251 1,540 74 1,865 2,148
	251 3,047 86 3,384 4,759

Local authority restricted grants include Covid-19 grants to support corps. This can be split further by government grants of £844k (2022: £944k), local authority grants of £452k (2022: £953k) and other grants of £211k (2022: £175k).

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

4. TRADING INCOME AND EXPENDITURE
	2023	2022
	£000	£000
Local corps charity shops and other trading activities
Income	12,644	10,442
Expenditure	(7,023)	(6,101)
	5,621	4,341
Funds generated by corps are retained by the corps for use in the local
area and are regarded as restricted for that geographical region.
Trading Subsidiaries
Income (Note 6)	93,659	84,657
Expenditure (Note 6)	(88,057)	(77,020)
	5,602	7,637
5. INVESTMENT INCOME
	2023	2022
	£000	£000
Dividends receivable	1,464	1,464
Interest receivable	1,105	114
Rental income from investment properties	402	197
Income from connected company	512	1,636
Investment Income of subsidiary companies (Note 6)	71	33
	3,554	3,444

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

6. NET INCOME FROM TRADING ACTIVITIES OF SUBSIDIARIES

The Salvation Army Trust has two wholly owned trading subsidiaries which are incorporated in the UK. The Salvation Army General Insurance Corporation Limited (SAGIC) transacts insurance business, mainly property insurance. The Salvation Army Trading Company Limited (SATCoL) deals with the collection and recycling of second-hand clothing donated by the general public and is engaged in publishing and the supply of Salvationist materials. Both companies make a qualifying donation of part of their profits to The Salvation Army Trust. Where profits are retained, it is for working capital needs and capital for the long-term development of the business. A summary of the trading results of the subsidiary companies for the year ended 31 March 2023 is shown below. Audited accounts of the companies have been filed with the Registrar of Companies.

Profit and Loss Account Trading Income Cost of Trading Activities: Cost of Sales Distribution Costs Operating Costs Other Income/(Costs) Including Taxation Total cost of Trading Activities Covid-19 Grant Income Investment Income Net Profit Realised Losses on Investments Unrealised Gains on Investments Net Income for the year Donation to The Salvation Army Trust Retained in Subsidiary	SAGIC SATCoL 2023 2022 Total Total £000 £000 £000 £000
	20,371 73,288 93,659 84,657
	(20,203) (37,726) (57,929) (51,454) - (3,403) (3,403) (2,558) (468) (26,428) (26,896) (22,960) 53 118 171 23
	(20,618) (67,439) (88,057) (76,949) - 12 12 539 71 176 247 51
	(176) 6,037 5,861 8,228 (30) - (30) (21) (26) - (26) (59)
	(232) 6,037 (5,805) 8,148 - (4,788) (4,788) (6,060)
	(232) 1,249 1,017 2,088

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

7. CHARITABLE ACTIVITIES

Church and Evangelism Programmes Community Programmes International Programmes Training Programmes Youth and Young People Programmes Grant to Salvation Army Social Work Trust 31 March 2022 Charitable Activities Church and Evangelism Programmes Community Programmes International Programmes Training Programmes Youth and Young People Programmes Grant to Salvation Army Social Work Trust	Direct Grants Support 2023 Costs Costs Total (Note 8) £000 £000 £000 £000
	38,081 - 13,740 51,821 51,581 - 16,444 68,025 2,204 4,783 199 7,186 5,435 - 1,674 7,109 849 - 1,736 2,585 - 22,373 - 22,373
	98,150 27,156 33,793 159,099
	Direct Grants Support 2022 Costs Costs Total (Note 8) £000 £000 £000 £000
	28,175 - 11,958 40,133 38,488 - 14,518 53,006 2,072 2,301 177 4,550 3,763 - 1,507 5,270 697 - 1,640 2,337 - 23,547 - 23,547
	73,195 25,848 29,800 128,843

Church and Evangelism Programmes comprise Christian worship, teaching and promotion of the Christian message at corps, regional and national events.

Community Programmes are organised by our corps to meet the needs of their local communities. The programmes offered are available to all and include activities for children, young people, families and older people as well as assistance for those in need.

International Programmes comprise support to the work of The Salvation Army worldwide. This includes grants paid to The Salvation Army International Trust and to overseas Salvation Army territories for projects to alleviate poverty in local communities.

Training Programmes represent the cost of William Booth College which trains people to become Salvation Army officers and provides learning and development opportunities for employees and officers.

Youth and Young People P rogrammes represent the cost of work within The Salvation Army for young people and adults aged 12-25, and other nationally organised programmes.

Grant to The Salvation Army Social Work Trust comprises grants payable to support the running of Salvation Army Lifehouses, care homes and other programmes and other costs incurred in supporting social programmes. Support Costs represent centrally supplied services.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

8. SUPPORT COSTS

8. SUPPORT COSTS
	Finance	HR	IT	Property	Communi-	Other	Legal &	2023	2022
					cation		Secretarial	Total	Total
	£000	£000	£000	£000	£000	£000	£000	£000	£000
Fundraising	74	39	81	88	113	45	11	451	403
Church & Evangelism
Programmes	1,864	1,991	3,022	2,592	2,851	1,148	272	13,740	11,957
Community
Programmes	2,425	2,151	3,217	3,099	3,710	1,488	354	16,444	14,518
International
Programmes	30	20	40	39	48	19	4	200	178
Training Programmes	283	137	283	326	432	172	41	1,674	1,507
Youth & Young
People Programmes	388	42	88	332	594	234	57	1,735	1,640
	5,064	4,380	6,731	6,476	7,748	3,106	739	34,244	30,203
Total 2022	4,356	3,537	5,279	4,626	4,426	3,960	4,019	-	30,203

An analysis of governance costs included above, is set out in Note 9 below.

Fundraising support costs of £451k (2022: £403k) are included within this note but not within the support costs column presented in Note 7 as these costs are not included within Charitable Activities.

9. GOVERNANCE COSTS

(a) Absorbed within support costs were the following governance costs: External audit Internal audit Trustee expenses Support costs allocated: Trustee indemnity insurance Apportionment of directors’ time (b) Group Auditor’s Remuneration Audit of Charity Audit of Subsidiaries Total Audit Audit Related Assurance Services Non-Audit Accountancy Services Total Fees	2023 2022 £000 £000
	119 116 489 301 - - 32 28 125 107
	766 552
	2023 2022 £000 £000
	95 93 35 34
	130 127
	9 9 8 15
	147 151

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

10. PERSONNEL

The average number of officers and employees and full-time equivalent (FTE) officers and employees was:

Trust Number of Officers Number of Employees Subsidiaries Total Personnel Costs Allowances and Salaries Redundancy Costs Social Security Costs Pension Fund Contributions (Current Service) Retired Offcers Allowance Fund Contributions (Past Service)	2023 2023 2022 2022 Headcount FTE Headcount FTE Number Number Number Number
	832 705 880 745 1,482 1,018 1,189 996
	2,314 1,723 2,069 1,741 1,012 752 943 701
	3,326 2,475 3,012 2,442
	Trust Subsidiaries 2023 2022 Total Total £000 £000 £000 £000
	59,191 25,093 84,284 74,263 182 - 182 257 5,401 2,131 7,532 6,325 14,196 1,781 15,977 11,065 4,690 - 4,690 (26)
	83,660 29,005 112,665 91,884

Higher Paid Employees

The number of employees whose emoluments amounted to over £60,000 in the year was as follows:

	Trust	Subsidiaries	2023	2022
			Total	Total
	No.	No.	No.	No.
£60,001 — £70,000	34	-	34	27
£70,001 — £80,000	11	-	11	6
£80,001 — £90,000	2	-	2	3
£90,001 — £100,000	4	-	4	5
£100,001 — £110,000	3	2	5	5
£110,001 — £120,000	3	1	4	1
£120,001 — £130,000	-	1	1	-
£130,001 — £140,000	-	-	-	-
£140,001 — £150,000	-	-	-	2
£150,001 — £160,000	-	2	2	1
£160,001 — £170,000	-	-	-	1
£170,001 — £180,000	-	1	1	1
	57	7	64	51

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Head of Provider Remuneration

The Head of the Provider (The William Booth College) is the Territorial Commander of The Salvation Army UK Territory with the Republic of Ireland and Chairman of the Salvation Army Trustee Company (SATCo) His remuneration in the current and previous year was as follows:

Basic Allowance Additional Allowances Taxable Beneft Total	2023 2022
	12,984 12,240 9,248 8,679 3,240 3,709
	25,472 24,628

In addition, in common with all Salvation Army serving officers, the Territorial Commander is provided with furnished accommodation. Salvation Army officers do not participate in a formal pension scheme but are members of The Salvation Army Retired Officers Allowance Fund which pays allowances on retirement, the amount of which is not guaranteed.

The salary of the Head of Provider is 0.84 times the median full-time equivalent salary of the Trust’s officers and employees.

Key Management Personnel

The key management personnel of the Trust are those persons having authority and responsibility for planning, directing and controlling the activities of the Trust, directly or indirectly, including the directors of the Salvation Army Trustee Company as the Corporate Trustee of the Trust. The Trustee considers the key management personnel of the Trust to be the executive directors (officers and employees) of the Board. The total aggregate emoluments including pension contributions paid to key management personnel during the year was £238,766 (2022: £200,942)

11. TRUSTEES

(a) Emoluments:

The directors of The Salvation Army Trustee Company comprise Salvation Army officers and other external directors with specialist expertise. All active Salvation Army officers receive an allowance based on length of service and, as ministers of religion, are provided with furnished accommodation and a motor vehicle. The allowances received by the officers serving as directors ranged from £19,377.96 to £25,471.57 per annum and they did not receive any additional remuneration for their duties as directors. In addition to this the relatives of some Salvation Army officers are employed by The Salvation Army and are paid in accordance with the normal scale rates for the roles they perform.

(b) Expenses

No (2022: no) directors of The Salvation Army Trustee Company were reimbursed for travelling expenses, amounting to £0 (2022: £0).

12. PENSION AND SIMILAR COSTS

The Salvation Army Trust contributes to three pension or similar schemes in respect of its staff:

(i) The Salvation Army Retired Officers Allowance Fund relating to Salvation Army officers;
(ii) The Salvation Army Employees Pension Fund for other staff;
(iii) A defined contribution scheme set up to offer employees who are not members of The Salvation Army Employees Pension Fund the opportunity to join a pension scheme following the closure of the Employee Pension Scheme to new members with effect from 31 December 2011.

Amounts charged in respect of pension fund contributions for the year are disclosed in Note 10 above.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

(a) SALVATION ARMY RETIRED OFFICERS ALLOWANCE FUND

The Salvation Army Retired Officers Allowance Fund was established by The Salvation Army Act 1963 under the legal name, The Salvation Army Officers Pension Fund. It is a registered charity and operates on the same basis as a defined benefit scheme, but the benefits are not guaranteed. It is noncontributory by the officer, but a contribution currently equivalent to £5,498 (2022: £4,870) per officer, per annum, is made by The Salvation Army. Officers in both principal Trusts (The Salvation Army Trust and The Salvation Army Social Work Trust) participate in the scheme and it is not possible to allocate the assets and constructive liabilities of the Fund between the Trusts. Therefore, the Fund is accounted for in a similar way as a multi-employer pension fund.

The Salvation Army Retired Officers Allowance Fund was subject to a triennial actuarial review on 31 March 2022, using the Attained Age Method, and this was based on the following principal assumptions:

Post-Retirement Discount Rate 2.9% per annum Pre-Retirement Discount Rate 3.7% per annum Rate of Increase in Allowances and Pensions 4.5% per annum Rate of Inflation 4.0% per annum

The market value of the Scheme’s assets at the valuation date amounted to £278.5m whereas the value of past service ongoing liabilities amounted to £247.1m revealing a funding surplus of £31.4m.

The Scheme Actuary will review the funding position each December to 31 March 2025. As the Scheme has a funding surplus, no deficit funding provision is required.

(b) SALVATION ARMY EMPLOYEES PENSION FUND

The Salvation Army Employees Pension Fund is a funded defined benefit scheme. The contribution rate payable by members is 8% of pensionable salaries and the employer’s contribution is 30.2% of pensionable salaries.

The Scheme is a multi-employer scheme incorporating six employers. It closed to new members with effect from 31 December 2011. The actuary has confirmed that it is not practical to allocate the assets and liabilities of the scheme between participating employers and therefore it is accounted for as a multi-employer scheme.

The Scheme is subject to triennial actuarial valuations. The last actuarial valuation was completed, using the Projected Unit Method, at 31 March 2021.

The review was based on the following assumptions:

Post-retirement discount rate 1.22% per annum Pre-retirement discount rate 0.72% per annum Rate of salary increases 3.55% per annum Rate of pension increase: On pensions accrued before 6 April 2006 3.0% per annum On pensions accrued after 6 April 2006 2.1% per annum Inflation: RPI 3.05% per annum CPI 2.3% per annum Deferred Pension Increases (pre 6 April 2009) 3.12% per annum Deferred Pension increases (post 6 April 2009) 2.02% per annum

The market value of the Fund’s assets on the valuation date was £213.7m and the value of technical provisions amounted to £211.1m giving rise to a funding surplus of £2.5m.

On 30 April 2023 the Scheme closed to future accrual for active members. Active members of the Fund as at 30 April 2023 are categorised as an ‘Employed Deferred Member’. ‘Employed Deferred Members’ are entitled to a deferred pension from the Fund which will increase in line with statutory requirements. As part of the employer’s proposal a link to your salary remains. This acts as an underpin so that if the final salary link was more valuable than inflation protection, the final salary link would prevail. If an Employed Deferred Member leaves employment before their retirement, the salary link will be broken. In this scenario the Employed Deferred Member’s pension will be recalculated to reflect the better of salary increases or the rise of inflation. The recalculated deferred pension which has been accrued prior to 6 April 2009 will increase in line with ‘deferred revaluation orders’, broady the increase in CPI each year, subject to a maximum of 5% per annum, for each complete year from the date of leaving until Normal Retirement Age.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

13. INTANGIBLE FIXED ASSETS

13. INTANGIBLE FIXED ASSETS
Goodwill Cost Balance at 1 April 2022 Additions Balance at 31 March 2023 Accumulated Depreciation Balance at 1 April 2022 Charge for the year Balance at 31 March 2023 Net Book Value at 31 March 2023 Net Book Value at 31 March 2022	Goodwill Other Total £000 £000 £000
	11,275 625 11,900 - - -
	11,275 625 11,900
	11,237 351 11,588 38 122 160
	11,275 473 11,748
	- 152 152
	38 274 312

Intangible fixed assets represent the goodwill arising on acquisition, by the Trust’s subsidiary company SATCoL, of the business operations and net assets of Kettering Textiles Limited. The goodwill is being amortised over 10 years.

The £625K Other intangible assets represents patents and licences in the Trust’s subsidiary SATCoL.

14. PROPERTIES

(a) Consolidated


Consolidated Cost Balance at 1 April 2022 Additions during the year Transfer to investment properties Schemes completed during the year Less: Disposals Balance at 31 March 2023 Accumulated Depreciation Balance at 1 April 2022 Charge for the year Less: Disposals Transfer to investment properties Balance at 31 March 2023 Net Book Value at 31 March 2023 Net Book Value at 31 March 2022	Freehold Long Short Total Leasehold Leasehold £000 £000 £000 £000	Property Schemes In Progress £000
	424,924 42,460 229 467,613 15,291 2,520 - 17,811 (703) (239) - (942) 3,314 - - 3,314	39,373 38,341 - (3,314) 74,400 (5,211) 69,189 - - - - - 69,189 39,373
	442,826 44,741 229 487,796 (8,249) (688) - (8,937)
	434,577 44,053 229 478,859
	145,162 12,611 227 158,000 7,435 1,230 - 8,665 (3,046) (236) - (3,282) (286) (96) - (382)
	149,265 13,509 227 163,001
	285,312 30,544 2 315,858
	279,762 29,849 2 309,613

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

(b) Trust Cost Balance at 1 April 2022 Additions during the year Transfer to investment properties Schemes completed during the year Less: Disposals Balance at 31 March 2023 Accumulated Depreciation Balance at 1 April 2022 Charge for the year Less: Disposals Transfer to investment properties Balance at 31 March 2023 Net Book Value at 31 March 2023 Net Book Value at 31 March 2022	Freehold Long Short Total Leasehold Leasehold £000 £000 £000 £000	Property Schemes In Progress £000
	423,067 37,774 229 461,070 15,291 2,515 - 17,806 (703) (239) - (942) 3,314 - - 3,314	39,373 38,341 - (3,314) 74,400 (5,211) 69,189 - - - - - 69,189 39,373
	440,969 40,050 229 481,248 (8,249) (684) - (8,933)
	432,720 39,366 229 472,315
	144,865 12,160 228 157,253 7,420 922 - 8,342 (3,046) (236) - (3,282) (286) (96) - (382)
	148,953 12,750 228 161,931
	283,767 26,616 1 310,384
	278,202 25,614 1 303,817

Trust properties comprise primarily corps halls, divisional and territorial headquarters buildings and residential properties for active and retired officers.

15. MOTOR VEHICLES AND EQUIPMENT (a) Consolidated Cost Balance at 1 April 2022 Additions Disposals Balance at 31 March 2023 Accumulated Depreciation Balance at 1 April 2022 Charge for the year Disposals Balance at 31 March 2023 Net Book Value at 31 March 2023 Net Book Value at 31 March 2022	Motor Office Total Vehicles Equipment £000 £000 £000
	614 30,064 30,678 2,162 7,509 9,671 - (100) (100)
	2,776 37,473 40,249
	299 20,424 20,723 210 2,742 2,952 - (68) (68)
	509 23,098 23,607
	2,267 14,375 16,642
	315 9,640 9,555

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

(b) Trust Cost Balance at 1 April 2022 Additions Disposals Balance at 31 March 2023 Accumulated Depreciation Balance at 1 April 2022 Charge for the year Disposals Balance at 31 March 2023 Net Book Value at 31 March 2023 Net Book Value at 31 March 2022 16. FIXED ASSET INVESTMENTS (a) Consolidated Market Value at 1 April 2022 Acquisitions Gain/(Loss) Disposals Market Value at 31 March 2023 Historical Cost at 31 March 2023	Motor Office Total Vehicles Equipment £000 £000 £000 614 4,361 4,975 328 2,401 2,729 - - - 942 6,762 7,704 299 2,456 2,755 104 694 798 - - - 403 3,150 3,553 539 3,612 4,151 315 1,905 2,220 Investment Salvation Army Unlisted Subsidiaries Total Properties Common Investments Listed Investment Investments Funds Fund 1 Fund 2 £000 £000 £000 £000 £000	Motor Office Total Vehicles Equipment £000 £000 £000
		614 4,361 4,975 328 2,401 2,729 - - -
		942 6,762 7,704
		299 2,456 2,755 104 694 798 - - -
		403 3,150 3,553
		539 3,612 4,151
		315 1,905 2,220
	14,847 5,633 216,541 10,735 1,983 249,739 538 - - 251 - 789 1,156 161 (111) (1,519) (164) (477) (115) - - - (136) (251)
	16,426 5,794 216,430 9,467 1,683 249,800
	1,006 2,963 126,700 9,966 3,263 143,898

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

(b) Trust Properties Market Value at 1 April 2022 Acquisitions Gain/(Loss) Disposals Market Value at 31 March 2023 Historical Cost at 31 March 2023	Investment Salvation Army Unlisted Subsidiaries Total Common Investments Listed Investment Investments Funds Fund 1 Fund 2 £000 £000 £000 £000 £000
	14,847 5,633 216,541 10,735 4,967 252,723 538 - - 251 - 789 1,156 161 (111) (1,519) - (313) (115) - - - - (115)
	16,426 5,794 216,430 9,467 4,967 253,084
	1,006 2,963 126,700 9,966 4,967 145,602

Unlisted Investments represent a 20% holding in William Leech (Investments) Limited. It is not considered to be an associated company and is valued in both the Trust and Consolidated Balance Sheets at share of underlying net assets which equates to its fair value.

William Leech (Investments) Limited Other	2023 2022 £000 £000
	9,465 10,733 2 2
	9,467 10,735

Subsidiaries are accounted for at cost in the Trust Balance Sheet. The Consolidated Balance Sheet includes the subsidiaries’ own listed investments.

Common Investment Funds

The Salvation Army Common Investment Funds hold a wide range of investments. The principal categories of investment and the relevant percentages held at the year-end were as follows:

Cash UK Equities UK Property Funds Overseas Investments	Fund 1 Fund 2
	3% 2% 15% 16% 0% 0% 82% 82%

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

17. DEBTORS

17. DEBTORS
Connected Salvation Army Trusts and Companies Taxation recoverable Prepayments and accrued income Other Debtors	Consolidated Trust 2023 2022 2023 2022 £000 £000 £000 £000
	- - 6,160 4,478 1,430 1,205 603 673 29,044 31,805 29,606 31,387 14,494 27,344 4,502 12,888
	44,968 60,354 40,871 48,258

Included in accrued income above is an amount of £2,892k (2022: £2,940k) which is the deferred consideration due in connection with the sale of shares in Reliance Bank in 2018/19 and which is receivable after more than one year. As the proceeds will be received over an extended period of time, the deferred consideration has been discounted to the net present value, and the reduction in the debtor of £48k is the financing cost recognised in the SOFA for the current year.

18. CREDITORS: amounts falling due within one year

18. CREDITORS: amounts falling due within one year
Loans repayable within one year (secured) Connected Salvation Army Trusts and Companies Tax and Social Security Creditors and Accruals	Consolidated Trust 2023 2022 2023 2022 £000 £000 £000 £000
	28 46 28 46 8,263 7,780 14,422 12,258 - - - 5 34,891 36,258 13,308 10,796
	43,182 44,084 27,758 23,105

19. CREDITORS: amounts falling due after one year

Bank Loans (secured) Bank Loans Repayable by instalments Within one year More than one year less than five years More than five years	Consolidated Trust 2023 2022 2023 2022 £000 £000 £000 £000
	389 461 389 461
	Consolidated Trust 2023 2022 2023 2022 £000 £000 £000 £000
	28 46 28 46 107 159 107 159 282 302 282 302
	417 507 417 507

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Pension Provision Balance Brought Forward Contributions payable Interest on pension obligation Change in assumptions Contributions paid in advance	Consolidated Trust 2023 2022 2023 2022 £000 £000 £000 £000
	- - - - - (4,000) - (4,000) - (50) - (50) - 24 - 24 - 4,026 - 4,026
	- - - -

20. ENDOWMENTS (Consolidated and Trust)

20. ENDOWMENTS (Consolidated and Trust)
Permanent Endowments E.S. Brant Sir James Reckitt Trust W.J. Davis Trust Other Expendable Endowments William Leech Fund Total	Balance Movement Balance 1 April 2022 in Funds 31 March 2023 Income & Gains/(Losses) £000 £000 £000
	2,105 78 2,183 822 19 841 1,224 41 1,265 1,440 24 1,464
	5,591 162 5,753
	10,754 (1,269) 9,485
	16,345 (1,107) 15,238

The E.S. Brant Fund was formerly a separate Salvation Army Trust. Its purpose is evangelical work. The Sir James Reckitt Fund was set up in 1916 for the benefit of the work of The Salvation Army in Hull. By administrative decision, the income is allocated as to 7/8ths for corps purposes and 1/8th for Men’s Social Work.

The W.J. Davis Fund was set up in 1991 to support the work of the Midnight Patrol and the annual income is transferred to the Social Trust to fund this work.

The William Leech Fund was initially set up in 1955 with annual donations thereafter. It is represented by a 20 per cent holding of shares in William Leech (Investments) Limited, with the other shares held equally by four other Christian charities. The annual income is transferred to The Salvation Army International Trust as part of the United Kingdom Territory’s contribution to the International Self-Denial Fund to help fund work in developing countries.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Comparative


Comparative			Balance	Movement	Balance
		1 April 2021		in Funds	31 March 2022
				Income &
			Gains/(Losses)
			£000	£000	£000
Permanent Endowments
E.S. Brant			2,099	6	2,105
Sir James Reckitt Trust			731	91	822
W.J. Davis Trust			1,184	40	1,224
Other			1,221	219	1,440
			5,235	356	5,591
Expendable Endowments
William Leech Fund			12,317	(1,563)	10,754
Total			17,552	(1,207)	16,345
21. RESTRICTED PROPERTY FUND (Consolidated and Trust)
Funding of properties for charitable purposes
	Balance	Movement in Funds			Balance
1	April 2022	Income	Expenditure	Transfers	31 March 2023
	£000	£000	£000	£000	£000
Consolidated and Trust	344,331	3,860	(8,367)	16,965	356,789
Comparative	Balance	Movement in Funds			Balance
1	April 2021	Income	Expenditure	Transfers	31 March 2022
	£000	£000	£000	£000	£000
Consolidated and Trust	332,060	5,058	(6,139)	13,352	344,331

22. OTHER RESTRICTED FUNDS (Consolidated and Trust)

Corps funds Legacy reserves Trust funds Specific donations Consolidated and Trust	Balance Movement in Funds Balance 1 April 2022 Income & Expenditure 31 March 2023 Transfers & Transfers £000 £000 £000 £000
	52,206 44,408 (42,954) 53,660 76,895 11,101 (7,352) 80,644 2,430 64 (159) 2,335 15,358 3,436 (4,708) 14,086
	146,889 59,009 (55,173) 150,725

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Comparative Corps funds Legacy reserves Trust funds Specific donations Consolidated and Trust	Balance Movement in Funds Balance 1 April 2021 Income & Expenditure 31 March 2022 Transfers & Transfers £000 £000 £000 £000
	50,169 38,779 (36,742) 52,206 73,558 8,957 (5,620) 76,895 2,374 332 (276) 2,430 10,547 7,405 (2,594) 15,358
	136,648 55,473 (45,232) 146,889

23. UNRESTRICTED FUNDS (Consolidated and Trust)

Designated Funds (i) General Reserve (ii) Trust Non-charitable Trading Funds (iii) Consolidated	2023 2022 £000 £000
	182,666 195,030 57,587 51,367
	240,253 246,397 22,799 21,714
	263,052 268,111

(i) Designated Funds

The Unrestricted Funds of The Salvation Army include the following designated reserves which have been set aside by the directors for specific purposes:

Property Purposes Investment Property Unrealised Gains Other Investments Unrealised Gains Pension Reserve Divisional Headquarters Reserves Other	Balance New Utilised/ Balance 1 April 2022 Designations Realised 31 March 2023 £000 £000 £000 £000
	69,345 - (11,003) 58,342 15,323 - (478) 14,845 82,955 - (243) 82,712 4,647 - (4,647) - 6,564 - (685) 5,879 16,196 - 4,692 20,888
	195,030 - (12,364) 182,666

(ii) General Reserve

This is required to fund the day-to-day needs of The Salvation Army.

(iii) Non-Charitable Trading Funds

This represents the profits retained in the trading subsidiaries to provide the working capital for their trading operations and capital for the long-term development of their businesses

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Comparative Designated Funds (i) General Reserve (ii) Trust Non-charitable Trading Funds (iii) Consolidated Designated Funds Property Purposes Investment Property Unrealised Gains Other Investments Unrealised Gains Pension Reserve Divisional Headquarters Reserves Other	Balance New 1 April 2021 Designations £000 £000	2022 2021 £000 £000
		195,030 158,462 51,367 42,135
		246,397 200,597 21,714 19,624
		268,111 220,221
		Utilised/ Balance Realised 31 March 2022 £000 £000
	55,739 6,000 11,984 - 70,291 - 621 - 6,063 - 13,764 2,000	7,606 69,345 2,863 14,847 12,664 82,955 4,026 4,647 501 6,564 908 16,672
	158,462 8,000	28,568 195,030

24. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Fund Balances at 31 March 2023 are represented by:

Intangible assets Fixed assets Investments Current assets Current liabilities Long-term liabilities Total Net Assets	Endowment Restricted Funds Unrestricted Total Funds Property Other Funds Funds £000 £000 £000 £000 £000
	- - - 152 152 - 385,047 - 16,642 401,689 15,238 - 96,447 138,115 249,800 - (27,841) 53,655 151,920 177,734 - (28) 623 (43,777) (43,182) - (389) - - (389)
	15,238 356,789 150,725 263,052 785,804

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Fund Balances at 31 March 2022 are represented by:

Intangible assets Fixed assets Investments Current assets Current liabilities Long-term liabilities Total Net Assets	Endowment Restricted Funds Unrestricted Total Funds Property Other Funds Funds £000 £000 £000 £000 £000
	- - - 312 312 - 348,986 - 9,955 358,941 16,345 - 94,682 138,712 249,739 - (4,145) 52,207 163,167 211,229 - (49) - (44,035) (44,084) - (461) - - (461)
	16,345 344,331 146,889 268,111 775,676

25. CAPITAL COMMITMENTS

The directors are continuing the process of refurbishing and developing Salvation Army properties. At the Balance Sheet date contractual obligations entered by The Salvation Army Trust in respect of property capital schemes amounted to £38.6m (2022: £60.5m).

26. FINANCIAL COMMITMENTS

As at 31 March 2023 the total annual commitments under non-cancellable operating leases on vehicles and equipment and land and buildings are as follows:

Expiring within 1 year Expiring between 2 and 5 years Expiring in over 5 years	2023 2022 Land and Vehicles and Land and Vehicles and Buildings Equipment Buildings Equipment £000 £000 £000 £000
	6,722 335 6,237 435 13,136 2,901 13,292 1,793 5,457 - 4,351 -
	25,315 3,236 23,880 2,228

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

27. RELATED PARTY TRANSACTIONS

The Salvation Army Trust supports the work of other connected Salvation Army trusts through the payment of grants and these are set out in Note 7. Grants of £0.8 million were paid to The Salvation Army International Trust and overseas Salvation Army territories (2022: £1.4 million) and a grant of £22.4 million was paid to The Salvation Army Social Work Trust (2022: £23.5 million).

An overhead recharge of £10.2m (2022: £10.8m) was charged to The Salvation Army Social Work Trust during the year, representing that Trust’s share of central overhead costs, specific to The Salvation Army Social Work Trust which were incurred by The Salvation Army Trust. In addition, recharges of £85k (2022: £68k) were charged to The Salvation Army Social Work Trust for hire of rooms at corps premises.

The Salvation Army Trust uses the banking services of Reliance Bank Limited which is a subsidiary of The Salvation Army International Trust. At the year end The Salvation Army Trust held balances of £99.5 million with Reliance Bank (2022: £120.3 million). Interest was earned on deposit balances on a normal commercial basis.

28. RECONCILIATION OF NET MOVEMENT OF FUNDS TO NET CASH INFLOW

FROM OPERATING ACTIVITIES

Net Movement in Funds Losses/(Gains) on Investments Depreciation: Properties Transfer to Investment Properties at NBV Depreciation: Motor Vehicles and Equipment Amortisation of Goodwill Gain on Disposal of Properties Investment Income Decrease in Stocks (Increase) in Debtors (Decrease)/Increase in Creditors (Decrease) in Pension provision Net Cash Inflow/(Outflow) from Operating Activities	2023 2022 £000 £000
	10,128 69,195 369 (13,986) 8,665 4,196 560 250 2,952 2,286 160 1,296 (12,681) (20,817) (3,554) (4,491) 196 310 15,386 (10,621) (884) 10,387 - -
	11,169 (31,190)
	21,297 38,005

29. 101 NEWINGTON CAUSEWAY

The developer who was acquiring the former United Kingdom and Ireland Territorial Headquarters (THQ) building based at 101 Newington Causeway, London, withdrew from the transaction forfeiting the deposit of £1.5m. The property is being re-marketed but in the meantime continues to be utilised for missional purposes.

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

30. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITY

As required by FRS 102 the SOFA set out below is the full analysis for the 2022 comparative.

INCOME AND ENDOWMENTS FROM Donations, Legacies and Grants Legacies Donations — Public Donations — Members Grants Trading Activities Investments Other Gain on disposal of property Other Income Total Income EXPENDITURE Raising Funds Costs of raising donations, legacies and grants Costs of trading activities Charitable Activities Church and Evangelism Programmes Community Programmes International Programmes Training Programmes Youth and Young People’s Programmes Grant to the Salvation Army Social Work Trust Financing Costs Total Expenditure Gains/(Losses) on Investments Net Income/(Expenditure) Transfer between funds NET MOVEMENT IN FUNDS Fund balances brought forward Fund balances carried forward at 31 March 2022	Endowment Restricted Unrestricted 2022 Total £000 £000 £000 £000
	- 8,924 57,354 66,278 - 11,427 61,522 72,949 - 16,485 132 16,617 231 3,970 558 4,759 - 10,442 84,657 95,099 - 2,133 1,311 3,444 - 4,826 15,991 20,817 - 1,806 185 1,991
	231 60,013 221,710 281,954
	- 68 13,544 13,612 - 6,101 77,020 83,121
	- 6,169 90,564 96,733 - 20,509 19,624 40,133 - 31,021 21,984 53,005 - 1,338 3,213 4,551 - 3 5,267 5,270 - - 2,337 2,337 - - 23,547 23,547
	- 52,871 75,972 128,843
	- - 1,169 1,169
	- - 1,169 1,169
	- 59,040 167,705 226,745
	(1,438) 219 15,205 13,986
	(1,207) 1,192 69,210 69,195
	- 21,320 (21,320) -
	(1,207) 22,512 47,890 69,195
	17,552 468,708 220,221 706,481
	16,345 491,220 268,111 775,676

The Salvation Army Trust Report and Financial Statements for the year ended 31 March 2023

Charity Registration No: 214779 Scottish Charity Registration No: SC009359

www.salvationarmy.org.uk

CONTENTS

INTRODUCTION FROM THE TERRITORIAL COMMANDER

Commissioner Anthony Cotterill

OUR VISION, MISSION AND VALUES

Vision statement:

Mission Statement:

SHARE THE GOOD NEWS

SERVE OTHERS WITHOUT DISCRIMINATION

NURTURE DISCIPLES OF JESUS

CARE FOR CREATION

SEEK JUSTICE AND RECONCILIATION

Our Values

Statement of commitment:

OBJECTS OF THE SALVATION ARMY TRUST

The Salvation Army’s principal objectives are the advancement of the Christian religion and pursuant thereto the advancement of education, the relief of poverty and other charitable objects beneficial to society or the community of mankind as a whole.

EXPLAINING OUR STRATEGY, STRUCTURE AND OPERATION

Our two principal charitable registrations:

Summary of the purpose of The Salvation Army Trust

The scale of the work of The Salvation Army Trust

The work and delivery of The Salvation Army Trust

Explaining our distinctive organisational approach to strategy

Integrated locally

Integrated internationally

Resourcing, support and oversight

REALIGNING RESOURCE TO ENABLE A ‘FLOURISHING’ AND EFFECTIVE SALVATION ARMY

Continuing the delivery of the Structure Co-ordination and Design Project 2022/2023

‘What (change) is needed to enable our local mission to flourish?’

ILLUSTRATING THE WORK AND ACHIEVEMENTS OF THE SALVATION ARMY TRUST 2022/2023

WE ARE THE SALVATION ARMY

BEING A LIVING AND CHANGING CHURCH — COMPASSION IN ACTION

Growing mustard seed in Doncaster

Sheppey’s supermarket on wheels

Caring for creation in Sidmouth

Community spirit in Merseyside

Crofting for Christ in Shetland

A warm welcome in Reading

Faithful community in Coedpoeth

Core Recovery for addiction

LGBTQ+ love and understanding

A mission of racial inclusion

No faith in fossil fuels

Commissioned and ready to go!

BEING A LIVING AND CHANGING CHURCH — MINISTRY IN ACTION

Sharing common ground

Women’s renewed mission

What attendees said:

Showing true colours

Chaplaincy in diverse settings

A sporting chance

A patient presence

Serving those who protect

A SHARED SENSE OF SERVICE

ESSENTIAL SUPPORT IN HARD TIMES

People banked on us:

— For warmth and friendship

— For food and basics

• Food on the table

• Discount food shop

• Cooking on a budget

— For clothes and compassion

• Every Child Warm

• Smart for school

OUR VISIBLE SUBSIDIARY

TACKLING ROOT PROBLEMS — INFLUENCING POLICY

PULLING TOGETHER IN A CRISIS

Around the UK:

Proud to serve

VITAL SUPPORT FOR UKRAINE

On the ground

Safe from human traffickers

Games without frontiers

Building futures

REACHING OUT TO VULNERABLE PEOPLE

HERE FOR PEOPLE EXPERIENCING HOMELESSSNESS

Warning signs for UK

SUPPORTING YOUNG PEOPLE

Feeding empty stomachs

Feeding friendship and faith

Feeding hope and ambition