The Salvation Army International Trust


The Salvation Army International Trust exists to further the work of The Salvation Army, which is to advance the Christian religion and meet human need as and where it occurs throughout the world, and support the work of International Headquarters. International Headquarters is responsible for coordinating the international work and overseeing strategy. In each country The Salvation Army is set up as a separate legal entity and The Salvation Army International Trust works with and through these entities.

Professional Advisers

Auditors BDO
Legal Advisers Slaughter and May
Investment Managers Sarasin & Partners LLP


Commissioner Barry Swanson, Commissioner Larry Bosh, Commissioner William Cochrane, Commissioner Alistair Herring, Commissioner Kenneth Hodder, Commissioner Lalkiamlova, Commissioner Amos Mudubiwa Makina, Commissioner Gerrit Marseille, Commissioner Robert Street, Commissioner Ann Woodall (Managing Director), Lieut-Colonel Walter Fuge (Secretary), Mr Andrew Justice, Mr David P Kidd, Mr Trevor J Smith

Investment Policy

The Trust operates an investment policy that prohibits investments in tobacco, breweries and distilleries, gambling, pornography, armaments or companies that disregard the pollution of the environment. Investments are managed under the terms of an investment management agreement with Sarasin & Partners LLP. The investment manager is required to make investments on behalf of the Trust in line with benchmarks that have been set, and against which performance is measured. For the year ended 31 March 2011, the portfolio total return amounted to 12.2% against an ethically adjusted benchmark return of 8.4%. Investment income increased by £283,000 to £1,680,000 and Gift Aid from Reliance Bank Limited decreased to £90,000.

Grant Policy

In supporting The Salvation Army’s work overseas, all territories and commands produce annual budget proposals, covering all aspects of their operations that are reviewed at International Headquarters. Annual grants are allocated by the Trustee and paid quarterly in advance to each supported territory and command.


Where possible, it is the intention to use restricted donations and legacies in the year of receipt, except where the gift is sufficiently large to be used over a longer period. The Self Denial Fund Reserve represents amounts held to ensure sufficient funds are available to meet the commitment to make maintenance grants to supported territories that are payable quarterly in advance. The aim of the Trustee is to raise this Reserve, over a period, to the level where it would be sufficient to fund one year’s expenditure in support of overseas work. Its value of £12,700,000 at March 2011 is equivalent to nine months’ expenditure. The General Reserve is retained to cover the shortfall between expenditure and income of other overseas support and governance costs. The aim of the Trustee is for the balance of the Reserve to cover 50% of these annual costs. The current balance of £3,130,000 is at this ideal level, being equivalent to 6.6 month’s expenditure. The Trustee continues to keep the matter of reserves under review.

Future Commitments

The development of Salvation Army hospitals will continue for at least the next five years to improve quality and efficiency by focusing on primary health care. Funds have been identified to develop two hospitals in India and one in Zimbabwe. The Salvation Army continues to prioritise clinics and small hospitals that support church and community responses and bring primary health care as close to the family as possible. Training of health workers (nursing students, community health workers, biomedical scientists, and others.) will remain a priority for The Salvation Army. Training programmes and resources that strengthen The Salvation Army’s capacity to support poor and marginalised people to gain access to quality, faith-based, primary healthcare services will be prioritised.

General Review

The Salvation Army is an integral part of the Christian Church, although distinctive in government and practice. The Army’s doctrine follows the mainstream of Christian belief and its articles of faith emphasise God’s saving purposes. Its objects are ‘the advancement of the Christian religion… of education, the relief of poverty, and other charitable objects beneficial to society or the community of mankind as a whole.’ The movement, founded in 1865 by William Booth, has spread from London, England, to many parts of the world.

101 Queen Victoria Street

Tel: 020 7332 8116

CC number: 1000566

Performance Guide Rankings

investment assets 139 / 1000
investment income 218 / 995
return on investments 791 / 995
investment management costs 148 / 743
inv mgmt costs as % of inv assets 459 / 743

inv mgmt costs as % of inv income 343 / 743
investment property 67 / 361
income from investment property 190 / 325
inv property inc as % of investment property 222 / 225

income from listed investments 135 / 661
income from short-term investments 63 / 726
listed investment inc as % of inv income 469 / 661
short-term investment assets 82 / 988

legacy income 186 / 226
grants received - / 88
total voluntary income 38 / 628

grants made 32 / 668
charitable expenditure 134 / 638
charitable expenditure as % of total expenditure 70 / 335
support costs - / 230
management & administration fees 25 / 970
audit fee per £m of income 840 / 949

total incoming resources 93 / 1000
total resources expended 90 / 1000
total assets 127 / 1000
period ending 2010 2011
legacies 0.00 0.06
grants - -
other voluntary income 26.89 30.72
total voluntary income 26.90 30.77
activities, furtherance of charities objects 1.24 1.19
activities for generating funds 0.62 0.72
trading subsidiaries 0.26 0.09
sales and fees from operating activities 2.11 2.00
investment property 0.20 0.20
dividends 0.64 0.77
fixed income 0.26 0.40
total listed investments 0.90 1.17
income from subsidiaries - -
interest on cash & short term inv 0.29 0.31
total investment income 1.40 1.68

fundraising costs - -
investment management costs 0.14 0.19
investment property repair costs 0.36 0.30
Investment costs 0.50 0.48
other costs - 0.03
cost of generating funds 0.50 0.51
grants paid 16.21 17.52
activities, furtherance of charities objects 14.66 15.70
management and admin 1.05 0.89
total charitable expenditure 31.92 34.12

ASSETS £m £m
intangible assets - -
tangible fixed 27.16 26.27
investment property 12.68 24.23
equities 27.04 29.40
bonds 13.15 11.58
listed investments 40.19 40.98
subsidiary or associated undertakings 2.30 2.30
investment portfolio cash & settlements 12.23 16.47
investment assets 67.39 83.98
other fixed assets - -
total fixed assets 94.55 110.25
stock 0.06 0.04
debtors 3.73 2.69
cash 0.99 1.39
current assets 4.77 4.11
bank loans & overdrafts - -
trade & other creditors, accruals 0.95 1.91
creditors falling due within one year 0.95 1.91
net current assets 3.82 2.20
loans - -
future long-term grant commitments - -
trade creditors - -
subsidiary & associated undertakings - -
creditors falling due after one year 1.56 1.36
provisions for liabilities and charges - -
TOTAL ASSETS 96.82 111.09

ASSETS £m £m
income funds 59.57 72.25
endowment funds - -
restricted funds 37.25 38.84
TOTAL FUNDS 96.82 111.09