Salvation Army tightens its belt
TORONTO, ON-A financial crunch is forcing The Salvation Army to amalgamate territorial headquarters in three provinces and cut jobs.
However, although regional administrative offices in British Columbia, Ontario and Newfoundland are merging, leaders say the community services the Army oversees in those areas will be uninfluenced by the transfers that take effect July 1.
"This is a difficult time," says Major Gary Venables, divisional secretary for public relations in the Hamilton, Ontario, office. "Some faithful employees have been with us for 20 years. Short of moving to London, if a similar job is open there, they are out of work."
The Ontario South and Ontario West divisions will be integrated and renamed the Ontario South West office, while the Hamilton office is reduced to a satellite operation and the bulk of its workload is transferred to regional headquarters in London.
Twelve employees have been given pink slips and five, who would otherwise have received them, have been retained.
Operations in British Columbia will also centralize. The north and south divisions will consolidate administrative operations in one office based in Vancouver. Captain John Murray, a spokesperson for the Vancouver office, says The Salvation Army faces similar constraints to other charities and denominations.
"We have loyal supporters but the reality is that with the economic downturn and job losses provincially in the forestry sector and others, requests for help from us have soared," says Murray. "Our ability to provide is taxed. To direct more money to the grassroots level and services we have to be more careful stewards of administrative costs."
However Major Ken Ritson, a public relations spokesperson for the Toronto office, says the underlying problem is one of an aging donor base coupled with a downturn in profits projected for investments.
The Salvation Army's most well-known emblem and fundraising drive, its year-round Red Shield campaign, is not bringing in the level of profits it has in the past, according to Ritson. Last year, the drive raised $380,000 down from previous years.
"We need to find new ways to tell our story because our strongest supporters are people who remember our 'donut days' when we gave beverages and food to troops," says Ritson. "Churches and charities are hit with investment declines and asking the same people for help. Donors are saturated with appeals and are reluctant to open their doors."
An open door is pivotal to the Army's fundraising strategy. Every May its representatives go door to door requesting donations as a kick-off to the Red Shield Drive. New donors are added to a database for sending direct mail appeal letters about specific projects.
Lower returns from May visits mean fewer potential supporters to approach throughout the year. The national goal for the 2003 campaign is $10 million. Launched last month, it will follow up door-to-door appeals with direct mail and special events in the hopes of raising the funds required to keep programs and administrative costs covered.
Ritson says gifts given to the Army are being stretched by the need to increase its services to keep pace with gaps between government services and people's needs.
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