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CHANGING THE WORLD WE LIVE IN TODAY Annual Review 2017 The Salvation Army UK and Republic of Ireland Territory

Who are we and what inspires us?

CONTENTS

A message from our UK Leader

The Salvation Army a worldwide evangelical Christian church. Our message is based on the Bible; our motivation is the love of God as revealed in Jesus Christ. Our Christian mission is based on a simple, passionate belief that our faith demands expression in action as well as words.

Making every life matter

That is why we engage in a programme of practical help for people in need, defend those who are vulnerable and abused, and fight against injustice. The services we provide are very diverse, reflecting the varied needs of the communities we serve.

Passionate for justice

â€˜ the Lord has anointed me to proclaim good news to the poor. He has sent me to bind up the broken-hearted, to proclaim freedom for the captivesâ€™ Isaiah 61:1 2

The Salvation Army in figures

Building stronger communities

Proclaiming our faith

An open door

Constant in crisis

Making good use of your money

A MESSAGE FROM OUR UK LEADER For us, every day is a day of action As I come towards the end of my period as Leader of The Salvation Army in the UK and the Republic of Ireland, I look back with pride on what we have achieved together, especially in the past eventful and exciting year. In The Salvation Army, one of our most fundamental beliefs is that we are called to serve others, especially those who are suffering. Yet our mission is not only to comfort people in distress – important though that is. It’s to fight injustice and exploitation. It’s to change the world we live in. That is why our officers, staff and volunteers work on the ‘front line’ every day, fighting some of the greatest evils of our time, like homelessness, addictions, domestic abuse and modern-day slavery. In this Annual Review you will find a selection of stories illustrating our front line work over the year. This includes not just stories of individuals we have helped, but reports of how we are working with entire communities, and how we are taking our faith to people in creative and innovative ways. And if you take one thing away from reading it, please let it be that our tenacity and determination can often achieve great things.

Commissioner Clive Adams

Through The Salvation Army’s boundless energy and passionate faith, lives are being transformed every day. That’s what I have seen clearly over the past four years of leadership. I hope you will see it too when you read this Review, and that it will encourage and inspire you to fight alongside us for a better, kinder world.

Commissioner Clive Adams Leader of The Salvation Army in the UK and the Republic of Ireland, 2013-17

Commissioners Lyndon & Bronwyn Buckingham appointed Leadership of the UK Territory from 2018 The Salvation Army // ANNUAL REVIEW 2017 //

THE SALVATION ARMY IN FIGURES We provided

3,032 places every night in our 82 Lifehouses for people experiencing homelessness

Our Employment Plus service worked with

1,208 people

on our contracted programmes and assisted 374 into employment throughout the year

We provided

84 places

2,267 victims

in Safe Houses for victims of domestic violence

were referred to our Anti-Human Trafficking and Modern Slavery services

667 community churches

On average

4,015 young people

19 residential summer camps

across the country, with over 36,000 Salvation Army soldiers and adherents

a week attend our Salvation Army outreach clubs

were held during the summer for disadvantaged children, with over 800 children attending in total

We have

Over the year

We distributed Christmas presents to more than

3,000 struggling families last Christmas

We have

Our Family Tracing Services accepted

396 volunteer drivers and chaperones to assist potential Modern Slavery victims move to a place of safety, with over 660 journeys undertaken throughout the year

On average

5,690 people per week attended our weekly luncheon clubs

1,431 new enquiries

throughout the year, of which 1,403 enquiries were successfully completed

13 residential care homes

Our

provided 463 places for older people needing care

IN HIS OWN WORDS… BEN ‘A year ago I was drinking and sleeping on benches. I can’t believe how much you’ve changed my life.’ I had been sleeping on benches when I stumbled through the door of Fellowship House a Salvation Army centre for homeless people in Ryde on the Isle of Wight. My confidence and self-esteem were non-existent, and yet I was treated with warmth and respect.

Staying on track I always felt I was too stupid to go to college, but The Salvation Army team believed in me and encouraged me to sign up.

The staff would check to see how I was settling in. The little things made a difference, like being asked how my day was. The Salvation Army team helped me sort out all my Jobcentre paperwork, which I could never have managed on my own.

Several times during my diploma course the work piled up and I wanted to quit, but the staff persuaded me to keep at it. Even when at times I lost my confidence, there would be someone available to calm me down and keep me on track.

What impressed me was that they wouldn’t do things for me – instead they would encourage me to do things with their guidance, allowing me to learn the process and feel proud of myself afterwards. It didn’t take me long to realise that Fellowship House is much more than just a place to stay – it’s a life training facility, providing me with life skills and building my confidence.

When I finished my diploma with high marks and was accepted for university, I couldn’t believe how my life had changed. Is this the same person who a year ago was sleeping on benches and getting drunk at every opportunity? Who would wake up every day with a hangover and a deep sense of self-loathing?

‘ Without The Salvation Army I would probably still be on the streets, drinking myself to death.’

There is no doubt in my mind that I couldn’t have done any of it without The Salvation Army. Without them I would probably still be on the streets, drinking myself to death. I came to The Salvation Army a messed-up boy. I leave now as a confident man with a new life to look forward to.

Ben, aged 24 The Salvation Army // ANNUAL REVIEW 2017 //

AN OPEN DOOR From its very earliest days in the East End of London, The Salvation Army has offered practical help and support to homeless people. Our aim is to help people overcome the problems that have led to them becoming homeless, so that they can get back on their feet and make a fresh start.

Breaking the cycle of homelessness The Salvation Army’s work with homeless people is not only about providing food and shelter in the short term. It’s about helping people rebuild their whole lives, growing in confidence and developing new skills so that they can get back into employment and live independently. In 2017 a new project was launched by The Salvation Army and Midlothian Council which is perfectly suited to this life-changing work.

‘I’m in a much better place now, mentally and physically.’

The Polton Centre in Lasswade helps people get back into independent living by offering them advice and support on matters such as housing, physical and mental health, healthy eating, budgeting, employment and skills training. Meanwhile a second centre – Pentland House in Penicuick – offers similar services, but also provides an emergency homelessness service for people in housing need.

Useful skills One of the first residents at the Polton Centre was James. Previously the only accommodation the council could offer him was in a B&B. But he found that at Polton, The Salvation Army could offer him a way out of homelessness for good. Our staff encouraged James and a group of other residents to start a gardening project at the Centre, where they are gaining useful skills and regaining their self-esteem after a dark time in their lives. ‘Coming here was the best thing I could have done,’ says James. ‘I’m in a much better place now both physically and mentally. Once I’ve moved into my own flat I would love to come back here and help keep the gardening project going.’

For more information, go to salvationarmy.org.uk/uki/homeless

Reports from the front line... an open door A new Salvation Army service has been launched in Cardiff, jointly with the United Welsh Housing Association, aimed at preventing individuals and families from becoming homeless. Our Floating Support service provides a 12 week support package covering everything from financial management to mental health and wellbeing. It also aims to connect vulnerable people with the services they need to live independently.

March saw the opening of a new day shelter attached to The Orchard, our Lifehouse (residential centre for homeless people) in Bradford. At The Orchard, The Salvation Army offers one-stop shop for people in housing need. The day shelter helps people with complex needs to gain access to services, while the Lifehouse provides accommodation and support.

A chain of cycling shops has given a huge boost to Recycles, our social enterprise in Swindon. In March, Hargroves Cycles introduced a part-exchange system, allowing customers to trade in their old bikes for new. The old bikes are delivered to Recycles to be serviced and re-sold for an affordable price or dismantled for parts. Most of the people at Recycles are residents at Booth House, our centre for homeless people. The skills they develop in bike repairing, customer service and running a business are invaluable in helping them get jobs when they leave Booth House.

A Salvation Army centre for people at risk of homelessness in Plymouth has been described as a dream place to work by one of its support staff. Devonport Lifehouse offers accommodation and support 72 men and women and equips them with life skills and vocational training. Jackie Javan, who has worked there since 1998, says: ‘It’s the best job in the world. Seeing how much more confident people are when they’ve learned something new, like how to cook a meal, is just fantastic.’

‘It’s the best job in the world. Seeing how much more confident people are when they’ve learned something new, like how to cook a meal, is just fantastic.’

The Salvation Army // ANNUAL REVIEW 2017 //

MAKING EVERY LIFE MATTER The Salvation Army believes that everyone, whatever their background, deserves the chance to make the most of the lives. That is why we work alongside people who are held back by poverty and lack of opportunity to help them achieve their full potential.

Just the job for Danny

Hardworking and practical

Danny is 32 and was unemployed for three years. He’s a capable, reliable and hard-working man, desperate to be able to provide for his family instead of relying on benefits. However his reading and writing are very poor, which meant he was turned down for one job after another.

Fortunately David knew one local employer who could help – a powder coating company which had already taken on three people from Employment Plus. The work involved was physical, and someone hardworking and practical like Danny was ideal. David says: ‘When I spoke to the firm to get feedback on Danny’s interview they said he was a lovely lad and very down to earth. They offered him the job straight away.’

Danny tried to improve his chances by going to literacy classes, but he found classroom learning hard. His prospects only began to improve when he contacted The Salvation Army’s Employment Plus scheme.

‘Just when I had lost all hope of finding a job, The Salvation Army showed me I had something to offer.’

David, who runs Employment Plus in Danny’s home town, had a possible solution. If Danny doesn’t have the right skills for most jobs, why not find a job that fits the abilities he does have?

It means everything to Danny to be back at work. He told us: ‘Just when I had lost all hope of finding a job, The Salvation Army boosted my confidence and showed me I had something to offer.’ In the past year, The Salvation Army has worked with 1208 people on our contracted programmes and has helped 374 into employment.

For more information, go to www.workforall.salvationarmy.org.uk/employment-plus-local-e-local

Reports from the front line... making every life matter As well as being the inspiration for one of The Beatles’ finest songs, Strawberry Field in Liverpool was a Salvation Army children’s home for 70 years. Now we want to give the site a new lease of life, offering lifelong opportunities to young people with learning disabilities. We plan to create a Training Hub where they can learn practical, vocational skills. Alongside it will be a Visitor Experience telling the story of Strawberry Field that will help to draw visitors from all over the world. The Visitor Experience will generate income to help run the Training Hub and also provide work experience for the trainees in its shop, restaurant, exhibition and gardens.

Architects impression of new proposed view from Strawberry Field gates

Our community church in Ayr has come to the rescue of jobseekers and other people who are in danger of being socially excluded because they lack computer know-how. Local church leaders Lieutenants Tim and Cheryl Stone are helping to run computer courses in partnership with the Jobcentre and Ayrshire College. The skills they offer will be vital for people claiming Universal Credit, and invaluable in helping unemployed people progress towards employment.

The Salvation Army and the University of Stirling have come together to carry out research that could help people break the grip of substance use. A new centre called ‘The Salvation Army Centre for Addiction Services and Research’ has been created at the University. It will investigate the connections between substance use, homelessness and wider health and social problems to help break the cycle of suffering.

Figures published by The Salvation Army reveal that modern slavery (human trafficking) is a growing problem here in the UK. 1,554 people were referred to The Salvation Army for safe accommodation and support between July 2016 and June 2017 – more than a 300 per cent increase since 2011/12.

The Salvation Army // ANNUAL REVIEW 2017 //

BUILDING STRONGER COMMUNITIES The Salvation Army works in hundreds of communities, including some of the most deprived and disadvantaged neighbourhoods, to help build sustainable community services. We don’t offer ‘one size fits all’ solutions, but work alongside local people to find the solutions that best fit their needs.

Rolling back the years for people with dementia Dementia is one of the fastest-growing health problems in the UK. Yet there is growing evidence that the progress of dementia can be slowed if the people who have the condition can stay mentally and physically active. That’s why, in many communities, The Salvation Army is running projects designed to improve the quality of life of people with dementia, as well as supporting the family members who care for them. One such project was launched in June – a dementia café called Forget-Me-Not which meets monthly at The Salvation Army’s centre in Wrexham. It has been warmly supported by the whole community, with many residents donating items such as old photographs, books, and newspaper clippings to stimulate memories and provide talking points for our café-goers.

Chatter and laughter Captain Sandy Davis, one of our church leaders in Wrexham, came up with the idea after going on a dementia-friendly training course. She says: ‘The first step was to become a dementia friendly church and recently we held our first dementia friendly service.’ Rachel, who co-ordinates The Salvation Army’s community work in Wrexham, says: ‘The first session of Forget-Me-Not was wonderful. It was great to see the recognition when we shared the memorabilia. There was lots of chatter and laughter coming from the tables as people reminisced.’ One local resident who attended with his mother who has dementia told us: ‘We’ve enjoyed it very much. There was a warm atmosphere and everyone was so attentive. We can’t wait for the next one!’

For further information go to www.salvationarmy.org.uk/older-people

‘It was great to see the recognition when we shared the memorabilia.’

Reports from the front line... building stronger communities In March, The Salvation Army Housing Association (SAHA) and The Salvation Army opened the £5.4m Copper Beech Avenue project in Bramley, Leeds – SAHA’s largest project to date. The project includes 54 newly built homes and a redeveloped family centre. The whole project was designed to provide high-quality accommodation, as well as space for residents and people from the wider community to come together.

Our community church in Oldbury, West Midlands, has launched a new Debt Advice Service, run by trained staff. Local church leader Lieutenant Lydia Bartlett says: ‘We are responding to the financial pressure on people. According to Christians Against Poverty, 8.2m people in the UK are experiencing debt.’ Dawn Bevington, one of the staff, adds: ‘We want to show that there is a way out of debt and hope for the future.’

In March The Salvation Army welcomed its first refugee family under the Government’s Community Sponsorship scheme. The family, who lost their home in the Syrian conflict, will now have the opportunity to rebuild their lives in London, supported by The Salvation Army. In June we marked World Refugee Week by urging more communities to sponsor refugees. Major Nick Coke, our refugee coordinator, says: ‘It’s a great way to help resettle refugees because it can help them feel a part of our society.’

In 2017 our Family Tracing Service completed around 1,400 enquiries into missing relatives. One of the most rewarding was for a lady called Marjorie, who had been put into a children’s home in 1964 at 12 years old when her mother died. She had lost contact with her sister Sally, and as the years went by, she felt she needed to fill this huge gap in her life. We traced Sally, who was delighted to hear from her long lost sister. She said: ‘I couldn’t believe it when I picked up the phone and heard Marjorie’s voice after so many years.’ The Salvation Army // ANNUAL REVIEW 2017 //

CONSTANT IN CRISIS When disaster strikes, whether it is a house fire or a major terrorist incident, The Salvation Army is instantly on call to support the emergency services. Every year, our emergency response teams attend around 170-200 incidents, providing refreshment and much-needed emotional support to rescue workers and distressed residents.

Our volunteers respond as tragedy hits West London When fire ripped through Grenfell Tower, a high-rise block of flats in West London, on 14 June, The Salvation Army acted instantly to support the emergency services and people affected by the tragedy. ‘It was an amazing response,’ says Salvation Army officer Captain Ruth Gray, who with her husband Karl co-ordinated our operation. ‘Salvation Army volunteers came from all over London.’

‘ This community will need a lot of support and we are determined to be there for them.’ 12

Two of our London-based emergency response vehicles were immediately mobilised, arriving at the scene at three in the morning, just hours after the fire broke out. There, Salvation Army officers and volunteers provided refreshments for well over 500 members of emergency service crews, who worked tirelessly to rescue survivors, and care for those who were injured and distraught. We also gave practical help and emotional support to people whose lives have been torn to pieces by the tragedy.

Community spirit Meanwhile, as the emergency operation got under way, The Salvation Army played its part alongside the local community, helping people come to terms with what had happened. Our church centre in Notting Hill, manned by Salvation Army volunteers, became a family rest centre and an enquiry point for people concerned about family and friends. Major Paul Scott, Salvation Army officer at Notting Hill says: ‘The community spirit has been wonderful. We have been moved by the kindness of residents, businesses and schoolchildren who have donated money and clothing. We know this community will need a lot of support in the long-term and we are determined to be there for them.’

For further information go to www.salvationarmy.org.uk/supporting-emergency-services

Reports from the front line... constant in crisis The Salvation Army’s emergency response team in Manchester were called to support emergency services following the devastating bombing at the Manchester Arena on 22nd May. Three of our emergency vehicles attended the scene in the critical period between 1am and 5am. Salvation Army volunteers came from across the region to offer support and served tea and coffee to around 400 emergency personnel who were working selflessly to rescue survivors and care for the injured.

In August, The Salvation Army supported residents affected by a gas explosion in a Sunderland street. Our emergency response unit attended the scene, offering refreshments and a listening ear to anyone who needed it. Meanwhile our local residential centre for homeless people made sandwiches for our mobile canteen and a Salvation Army volunteer delivered toys to the nearby rest centre to occupy the children while they waited for news.

The Salvation Army’s Emergency Response service featured in a special episode of Songs of Praise on BBC1 in July. It was hearing about the support we gave in recent major disasters such as Grenfell Tower that inspired the Songs of Praise team to highlight our emergency work. Presenter Josie D’Darby came to see us in action at a training exercise with Greater Manchester Fire and Rescue where she talked to fire personnel and our emergency response coordinator Major Nigel Tansley.

The Salvation Army has commissioned a new state-of-the-art vehicle to respond to emergencies in the west of Scotland. The new vehicle in its distinctive red livery will enable us to continue providing on-site refreshments and emotional support to members of the emergency services when they are attending incidents of all kinds, day or night.

The Salvation Army // ANNUAL REVIEW 2017 //

PASSIONATE FOR JUSTICE The Salvation Army is a worldwide organisation, working in 128 countries. Our compassion and humanity know no boundaries – which is why we work with some of the poorest people in the world to help them find solutions to their poverty and build a better life to their children.

Freeing families to live better, healthier lives Malawi is one of Africa’s poorest countries – and in the Karonga district of northern Malawi The Salvation Army is working hard alongside local people to help them raise their living standards. One of the best ways to do this is to help them start small businesses of their own. With this in mind, we have helped to set up 20 community-led village savings and loans groups and trained 400 members in business skills and management. The project is very popular and more groups are being formed all the time. We have also helped 16 communities drill boreholes which have given hundreds of people access to clean water. 198 local people have also been trained to maintain and repair the boreholes.

Among the people who have benefitted most from this work is Magret Gauti, a widow. She had to collect water from a shallow pool several miles from their home, which made it difficult for her to earn enough money to feed her family. Her daughters were able to help her, but they had to miss school. Worst of all, the water was dirty and polluted, leaving Magret’s family vulnerable to infection. But now, thanks to the help of The Salvation Army and the hard work of local people, that’s all changed. Magret is free to earn more, her daughters can go to school and the family’s health has improved. She told us: ‘We thank God for this project. With water nearby our future looks bright.’

For further information go to salvationarmy.org.uk/uki/id

‘ With water nearby our future looks bright.’

Reports from the front line... passionate for justice In Turkana, in north-west Kenya, a group of women have had their lives transformed by savings and loans scheme they have set up with the help of The Salvation Army. The women are paying into the scheme regularly and borrowing from it when they need to. Esther is one of may women who used to have nothing to feed her children with during droughts when the crops were poor. But with a loan from the women’s scheme she has set up a small grocery shop in her village. With the modest income she earns from the shop, she is able to feed her children all year round – and she is particularly proud that she can afford to keep her children at school.

In the Madimba territory of the Democratic Republic of Congo, severe deforestation, slash-and-burn agriculture and bush fires have reduced the availability of protein-rich foods such as game, mushrooms, vegetables and edible insects and left people struggling with malnutrition . But now The Salvation Army is working with local people to reintroduce edible caterpillars into the local habitat. Not only will this boost people’s diets, as caterpillars are full of protein and iron, but the project will also benefit the environment because trees will be planted as habitats for caterpillars.

The Salvation Army has launched two innovative projects, funded by the Home Office, to reduce the number of modern-day slaves being trafficked to the UK. They are focused on Nigeria and the Philippines – two countries where this cruel trade in human lives is particularly active. We are running training programmes to raise awareness and change attitudes through established Salvation Army church and community centres in both countries. We are also recruiting and training anti-trafficking ‘champions’ who will be a point of contact in their communities for people at risk of being trafficked.

Anti-trafficking champion raising awareness of the campaign The Salvation Army // ANNUAL REVIEW 2017 //

PROCLAIMING OUR FAITH The Salvation Army believes in making church accessible and relevant to everyone. Our churches are not just places of worship but centres for social action. What’s more we constantly look for fresh opportunities to go out into the community and proclaim the liberating, life-changing Gospel message.

The church that’s here for everyone September saw the opening of a newpurpose built church at the heart of the Barton-upon-Humber community. It’s the culmination of several years’ planning to create a radically different kind of church. The new building has been designed with the whole community in mind. As well as providing space for community services such as the parent-and-toddler group and the Barton Foodbank, it makes the church hall more inviting and accessible. Glass has been used creatively so that wherever people are in the building, they can see the church hall. The new church has a safe, enclosed outdoor children’s play area with soft flooring, for which Barton Rotary has provided outdoor play equipment. There is also an on-site community café serving nourishing, affordable meals.

Here for everyone The building is also one of Britain’s ‘greenest’ churches. On the roof there are 28 solar panels, while at ground level there is an air source heat pump, generating enough electricity to power the church and removing the need for a gas boiler. Local church leaders Captains Alan and Althea Bawden are delighted to see the vision of a new kind of church become a reality – ‘a phoenix rising from the ashes’, as Althea puts it. Alan adds: ‘This building is not only for those who attend The Salvation Army, it is here for everyone and we’re hoping people will join us to access the activities on offer and to find a warm welcome and personal experience of God.’

For further information go to www.salvationarmy.org.uk/church-and-community

‘ We’re hoping people will join find a warm welcome and personal experience of God.’

Reports from the front line... proclaiming our faith In March The Salvation Army celebrated 137 years of mission work in Ireland with a threeday congress in Belfast attended by around 500 people. The theme of this Congress was ‘Growing for Growth’, which was highly appropriate given the number of our young people who quite literally took centre stage. It featured young Salvation Army musicians from across Ireland, who performed at a series of musical and worship events for the delegates and the wider Belfast community.

In June, Banbury Salvation Army teamed up with other churches in town to host two weeks of non-stop prayer in a specially designed multi-sensory creative prayer space. Local residents were invited to light a candle, reflect on a passage from the Bible, or express prayer artistically. Church leader Captain Xander Coleman commented: ‘Sometimes we all need some help to pray in new and different ways for ourselves and for our community.’

In September, Brecon was the setting for the Revival Congress – a weekend gathering of more than 400 people from 34 Salvation Army centres and churches across south and mid Wales. The Congress featured a rich combination of worship and music, including Salvation Army bands and singers who took their faith out on the streets and performed in the town centre. There was also a strong emphasis on children and young people, with all-age worship and spiritual story-telling.

Between April and October, The Salvation Army joined with thousands of other Christians to take part in the ‘17:21’ initiative – named after Jesus’ prayer in John 17:21: ‘May they all be one that the world might believe’. Christian groups, conferences and festivals across a wide spectrum of evangelical traditions stressed their unity by reading the same Bible text, saying the same prayer of commitment and playing the same worship song.

The Salvation Army // ANNUAL REVIEW 2017 //

MAKING GOOD USE OF YOUR MONEY Income The Salvation Army operates in the United Kingdom through two charities, The Salvation Army Trust (Central Funds) and The Salvation Army Social Work Trust (Social Work Funds), which had combined income, excluding inter fund transfers, of £373m for the year ended 31 March 2017 (2016: £305m). Operational income from social work activities represents 26.0% of total income and comprises income from care homes for older people, lifehouses, family and children centres, substance misuse centres, outreach work, defence services centres and the turnover of The Salvation Army Housing Association (saha), a wholly controlled subsidiary of Social Work Funds. This income increased from £89.3m to £96.7m primarily as a result of new contracts, although this was offset by the closure of several centres in the year. Voluntary income from the public, trusts and our members is a vitally important source of funds for our work, representing 34.5% of total income. Legacies decreased by 1.96% to £51.8m. Despite the difficult economic climate, donations from the public increased by 5.82% to £57.0m. Donations from members remained stable at £19.8m.

Summary of Income 2016-2017 £000 400

2016

2017

350

2016

250 200

150

100

100 50

50 0

0 Legacies Disposal of assets & other income Investment income Trading income Members’ donations Donations & grants Social Services operations income

Costs of trading Cost of generating voluntary income outh & Young People programmes T Y raining programmes International programmes Corps community programmes Church & evangelism Social & defence services operations

Sources of Income 2017 Expenditure

18% 2%

20% 14%

There was a decrease in investment income from £8.2m to £6.3m. There was a significant increase in gains on disposal of properties and other income to £67.2m: these sources of income fluctuate year on year.

2017

300

26% Trading income increased from £67.6m to £73.8m. This includes corps charity shops and the operations of Salvation Army Trading Company Limited and Salvation Army General Insurance Corporation Limited, both wholly owned subsidiaries of Central Funds.

Summary of Expenditure 2016-2017 £000 300

15%

ocial Services operations income Legacies S Donations & grants Members’ donations Trading income Investment income Disposal of assets & other income

Total expenditure for the year was £287.3m, as shown in the above graph. There were some minor fluctuations with the categories of expenditure but expenditure has been held at last year’s levels.

Reserves

Statement by the Trustee

The surplus of income over expenditure for the year was £85.4m. This was enhanced by gains on the revaluation and disposal of investments of £36.5m resulting in total reserves increasing to £946.9m.

The financial information shown on this page is a summary of information relating to the Statement of Financial Activities and Reserves of The Salvation Army Trust and The Salvation Army Social Work Trust. The full financial statements of both Trusts, which were prepared in accordance the requirements of the Charities Act 2011, were approved on 8th December 2017. Both received an unqualified audit opinion. This financial summary may not contain sufficient information to allow for a full understanding of the financial affairs of The Salvation Army. Copies of the Trustee’s Annual Reports and Financial Statements can be downloaded from the Charity Commission website.

These can be analysed as follows: Endowment funds Restricted Funds: Property Fund Other restricted funds Unrestricted Funds: Designated funds Unrealised investment gains on investments Funds retained in trading subsidiaries as working capital General Reserve Total

£m 27.8 370.2 317.3 77.2 83.7 20.1 50.6 946.9

Only the income arising from the endowment funds is available for expenditure. The property fund represents expenditure on properties used by The Salvation Army such as corps halls and community centres, care homes, lifehouses and accommodation for officers. Other restricted funds include donations and legacies given for a specified purpose, funds held by corps (churches) for local use and funds retained by saha. Designated funds are reserves which have been set aside by the directors of The Salvation Army Trustee Company for specific purposes primarily major maintenance work on the property portfolio. The general reserve, which is that part of unrestricted funds and is freely available for general purposes, has decreased to £50.6m of which £31.4m is held by Social Work Funds and £19.2m by Central Funds. Both charities need general reserves to ensure that their work can continue in the event of a decrease in income or unexpected expenditure. The directors of the Trustee Company consider that Social Work Funds and Central Funds require General Reserve of £31m and £20m respectively.

Statement by the Auditors We have examined the above financial information and, in our opinion, it is consistent with the full annual accounts of The Salvation Army Trust and The Salvation Army Social Work Trust. Knox Cropper December 2017

The Salvation Army // ANNUAL REVIEW 2017 //

THE SALVATION ARMY IS A CHRISTIAN CHURCH AND A REGISTERED CHARITY The Salvation Army UK Territory with the Republic of Ireland 101 Newington Causeway London SE1 6BN

020 7367 4500 thq@salvationarmy.org.uk

Registered Charity No. 214779, and in Scotland SC009359 Social Trust: Registered charity No. 215174, and in Scotland SC037691 Republic of Ireland: Registered Charity No. CHY6399