$19 a Month to St. Jude’s: How Much Goes to the Kids
Anne Paddock
St. Jude's runs advertisements asking donors to make a monthly gift of $19 and become a "partner in hope." $19 sounds manageable so who wouldn't want to give a little less than twenty bucks a month to help a sick child with cancer or other life threatening disease? Judging by the tax returns submitted by…
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Paddock Post
Dear Summer:

Contrary to your claim that you have a “more well rounded view” because you are an employee of the hospital, you do not. You ignore the numbers (not once did you address them) and rely on rhetoric and emotional pleas rather than the numbers, which shows bias. Your blurb sounds like a slick marketing attempt (“…allows us to charge into new frontiers that others can only imagine”) to downplay the truth that historically only about half of the revenue collected by ALSAC went to the hospital annually. Instead of repeating a lot of what I’ve already said, I will simply make a few short comments:

1. The purpose of the posts is to educate people and allow them to make their own decisions about making donations. The posts do not throw out a ton of financial information and boil it down to one simplistic number, as you claim. On the contrary, the posts take key information from the Form 990 (which can be 50-150 pages long with thousands of numbers) so that someone who doesn’t have a financial or accounting background can understand where revenue is spent. The posts are also an easy way to get a summary of the information without having to read the whole 990, which seems to threaten many people who do not want the public to understand how donation dollars are spent.

2. The numbers in the post are not my numbers. I presented the numbers that ALSAC and the hospital submitted to the IRS. The fact remains: $50 out of every $100 collected by ALSAC went to the hospital (although the recent 990 shows this number was down to $44 out of every $100). The other $50 retained by ALSAC was spent on fundraising ($29) with the remaining $21 placed in the fund balance. There is nothing disingenuous about telling the truth (it sounds like you take offense to the truth which, by the way is related to context). Again, I will go out on a limb here and say most donors want more than half of their donation to go to the hospital. ALSAC and St Jude’s certainly don’t need me to tell them how to do spend more on helping sick kids and their families. I think they can figure that out on their own because it’s really quite simple: spend more revenue helping sick children and their families…like maybe instead of putting $250 million in the net fund assets that already has a few billion (last time I looked, ALSAC/St. Jude’s had about $4 billion in their net fund assets/general fund or what some people refer to as an endowment), they can help 250 sick kids and their family.

3. Your argument that Charity Watch (but the links you posted were to Charity Navigator and they have been removed) rates St. Jude’s high, and higher than other charities implies the information on the tax returns should be ignored or that ALSAC and St. Jude’s should get a pass, is weak. Charities that rely on public support should have full transparency, give people the truth, and let them make their own decisions about where they want their charity dollars to go. ALSAC and St Jude’s don’t get a pass just because they do good things (spending $29 out of every $100 on fundraising and giving only $50 out of every $100 to the hospital is not good enough for some) – no non-profit does.

4. The links to doctors bios have also been removed. This is not a site to advertise doctor credentials.

5. Your statement that employees “Make the most of St. Jude resources, and be mindful of those who provided them” is a wide generalization and reminds me of the difference between what people say and what they do. The numbers on the Form 990 do not always support this statement. To the best of my knowledge, employees of ALSAC have not come out and made a public announcement that only half (and sometimes less) goes to the hospital for which they are raising money for – which, incidentally is the truth.

6. You can’t write about the most highly compensated employees of the hospital without also writing about the most highly compensated employees of ALSAC: The nine (9) most highly compensated individuals of ALSAC were reported to be:

$1,087,044: James Downing, Ex-Officio Dir. (received comp from SJCRH)

$ 868,643: Richard C Shadyac, Jr.: CEO and Ex-Officio Director

$ 542,741: Emily S Greer, Chief Administrative Officer

$ 517,293: Jeffrey T Pearson, Chief Financial Officer

$ 514,395: Emily Callahan, Chief Marketing Officer

$ 497,124: Robert Machen, Chief Information Officer

$ 471,938: Anurag Pandit, Chief Investment Officer

$ 454,251: Sara Hall, Chief Legal Officer

$ 447,309: George Shadroui, Chief Strategy Officer

As illustrated above, 9 employees received total compensation of $5.5 million. Of the 9 most highly compensated employees, 6 (67%) are male, while 3 (33%) are female.

The 990’s also report ALSAC paid for companion travel and health or social club dues or initiation fees (See Schedule J, Part III for more information).

The organization paid for companion travel and tax indemnification and gross up payments (for more detail see Schedule J, Part III of the 990). In addition:

$344,860 was offered to the former CFO under a separation agreement whose terms are confidential.

Payments were made to five employees under the non-qualified deferred compensation plan during the year:

Michael C Canarios: $23,877

Ching-Hon Pui: $289,585

Mary Anna Quinn: $275,360

Leslie L Robison: $286,030

Elaine I Tuomanen: $265,433

Please tell me how millions of dollars to deferred compensation plans, payments for social club dues or initiation fees (as if these executives couldn’t afford to pay for their own social or health club dues or fees), companion travel, tax indemnification and gross up payments, and separation agreements is a better way to spend revenue than spending the money to help a sick child and his/her family?

7. How ironic is it that you take issue with my posting of public information (specifically, financial information submitted to the IRS) that is not posted on the ALSAC or St. Jude’s website and yet claim your response gives the reader a “full picture” of what St. Jude’s does? For the record, most of what you wrote is on the St. Jude’s website. Almost all of what I wrote is not. Consider this: if ALSAC or St. Jude’s posted the details of the Form 990’s (instead of just links to the 990), then people like myself wouldn’t have to post this information, and the public would have a fuller picture of what ALSAC and St. Jude’s do.

8. My conclusion stands: They do good things but could do so much better and they can start by spending more revenue on sick kids and their families.

I would like to respond to both the original post and some of the subsequent comments made. I have been an employee at SJCRH so I have a more well rounded view of what actually goes on there. I am not an employee of ALSAC and as such I am not making any comments on compensation of their employees.

Anne, I think the way you present this data is extremely disingenuous. You keep saying “They can do better” but don’t really put forth any ways you think that they can “do better.” I’ve read a smattering of your non-profit posts, and your basic format seems to be to throw out a ton of financial data, boil it all down to a single simplistic number, and then say that this isn’t good enough. I haven’t found anything yet where you put all these things into context.

I would suggest that anyone who cares about giving to the most efficient charities take a look at sites such as Charity Watch, which has a much more detailed analysis of data from the 990 forms of different organizations, and gives them an overall rating. St Jude Children’s Research Hospital received a rating of 91.04 last year.

Linda said:

“The CEO’s and the higher ups make way too much money. The doctors and nurses and the research teams should be the ones making money. We will donate if we know that our money is going to the important people who really do the necessary work to save children. I don’t respect that so much is wasted on huge salaries to people that don’t save lives”

If you look at this previous post by Anne (https://paddockpost.com/2019/02/08/executive-compensation-at-st-judes-2017/) she lists the 15 most highly compensated employees. Eleven of those 15 are doctors who are still very active in research and publish studies on a regular basis. They are absolutely a part of the research team. Here are those names and links to their profiles, where you can see the research they are producing and learn more about the departments that they lead:

Dennis said:

“St. Judes is misleading. A child has to qualify and be referred before they can treated there. Maybe they could use the $21 and the $7 for more research for childhood cancer. I’m not here to bash St Judes but most people don’t know the facts they only have 47 beds and Your insurance is billed first so they are not paying for entirely everything. Bottom line is these kids suffer through horrible treatment plans and there needs to be more reasearch funding”

St. Jude is a research hospital. As such, they are dedicated to battling the rarest and most difficult to treat cancers. Yes, patients get referrals to St. Jude. Perhaps there is a clinical trial going on to study treatments for the particular type of cancer that child has. Maybe they have a form of cancer so rare that there are no other doctors in the country who have experience with it. Maybe they have a genetic mutation that makes them more susceptible to cancer, and geneticists are trying to find out why that is. As far as beds, St. Jude actually has 78 beds. They try to give kids as normal a life as possible while they are undergoing treatment, and inpatient beds are for those who need additional intensive hospital care while they are being treated. Otherwise, families stay in nearby housing (provided by St. Jude at no cost to the families) and come to the hospital as needed, to minimize disruptions in their daily lives. I’m not sure why billing insurance is seen as a negative in this context. Billing insurance actually helps St. Jude treat more children. If they were not reimbursed by insurance companies the same as any other hospital, there would be less money to put back into treatment and research. St. Jude is also in the midst of a huge expansion that will both increase the number of patients being treated, and make room for new cutting edge research and technologies

So. You can read a few blog posts on this site and get outraged that St. Jude “isn’t doing enough” or you can read through the information I’ve posted and get a full picture of what St. Jude does. Employees of St. Jude have seven core values, one of which is “Make the most of St. Jude resources, and be mindful of those who provided them.

The support for our institution is incredible. It allows us to charge into frontiers that others can only imagine. And it’s possible because of tens of thousands of people who trust us to be good stewards of their donations. We must be diligent to make their contributions count in every way possible.”

I never met a single person there who did not try their hardest every day to make sure that as much of those donations as possible go back to helping children. People are of course free to come to whatever determination they like regarding the worthiness of St. Jude as a charity, but hopefully I have provided some information that puts things in context. If your response is “people should get paid less” then I would just ask you to do your own research into what compensation is like in the private sector for people who do this kind of work, and ask yourself if they don’t deserve a similar level of compensation for doing work that is just as if not more important.

Ellen: No, 82 cents of every dollar does not go to program services. You need to educate yourself on the Salvation Army:

During the holiday season, The Salvation Army operates its Red Kettle Campaign throughout the nation. Local volunteers (often working with their families) and paid workers stand by the iconic red kettle ringing a bell, and smiling while donations are placed in the red kettle.

It’s hard for anyone to walk by without placing a $1 or loose change in the kettle of one of the most recognizable charitable fundraisers in this country. But, where does $1 to the Salvation Army go? That’s the $4 billion dollar (the amount of revenue reported in the US in 2014) question, keeping in mind the Salvation Army organizations in the US have more than $11 billion in net assets.

In the United States, The Salvation Army does not have one organization but several which is confusing. The “Salvation Army” in the USA is overseen by The Salvation Army National Corporation which is also known as The Salvation Army USA or The Salvation Army National Headquarters (who is overseen by The Salvation Army’s International Headquarters in London). This organization primarily provides support to the other Salvation Army organizations in the USA, similar to a corporate office.

The entire USA organization is referred to as a territory within the organization (the organization divides itself into geographic territories). The territory includes The Salvation Army National Corporation, The Salvation Army World Service Office (which primarily collects revenue in the US and distributes funds overseas) and four division territory headquarters (which is the heart of the organization in the USA):

The Salvation Army Central Territory

The Salvation Army Southern Territory

The Salvation Army Western Territory (also called The Salvation Army USA, Western Territory and Affiliates)

The Salvation Army Eastern Territory

Within each of the above territories is a state division (some of which file an IRS Form 990 under protest because some states require organizations receiving public funds to file a 990). Because the Salvation Army is a “church,” the IRS does not require the submittal of a Form 990 but the organization does submit a 990 for one of the six organizations: The Salvation Army World Service Office (SAWSO). The remaining five organizations have annual audited financial statements although these statements are not made available on-line through the Salvation Army organization sites (to request copies of the audited financial statements, e-mail: donations@usn.salvationarmy.org, Jennifer_Byrd@usn.salvationarmy.org, or Ashley.Carter@usn.salvationarmy.org or call 703-684-4123).

Instead, the organizations offer what they call “Statements of Financial Position, “Statements of Activities” and/or an “Annual Report.” These statements don’t provide the financial detail that a 990 provides including the compensation package of key executives, total staff compensation, the number of staff who receive $100,000 or more in compensation, a list of the organizations that received grants exceeding $5,000, and more. Neither do the audited financial statements although they do provide more information than what is provided on the websites.

Any organization that receives federal government funds must release information under the Freedom of Information Act. The audited financial statements of the four territories (Eastern, Western, Southern, and Central) report $345 million was received in fees and grants from government agencies in 2014 but the statements do not disclose if these funds were from state or federal government agencies. So, there is no information on highly compensated staff in this post.

Based on the audited financial statements for the year ending September 30, 2014, the key financial information for the four territory organizations (which report and spend most of the revenue) is summarized as follows (a detailed analysis of all six organizations follows this summary):

The four territories (Central, Southern,Eastern, and Western) raised $4.1 billion dollars in 2014.

The four territories spent $3.5 billion in 2014: $3 billion on program services, management, fundraising, and support services (with $1.6 billion of these funds spent on salaries and allowances, benefits, and payroll taxes and $545 million on occupancy, furnishings, and equipment), and $500 million on “specific assistance” which is also called “direct assistance” (primarily “other social services) to individuals.

$600 million was left unspent, strengthening their respective balance sheets.

The four territories report $15 billion in total assets, $4 billion in liabilities which makes net assets $11 billion, most of which are investment securities and land, buildings, and equipment.

The territories have two primary liabilities (of the $4 billion in liabilities): $2 billion in estimated pension and post retirement benefits for employees and $1.2 billion in mortgages.

In summation, the Salvation Army is a very wealthy “church” with most of the revenue and assets concentrated in the four territory organizations. With $15 billion dollars concentrated in investments that produce nearly 40% of the revenue annually (in the form of investment income, sales to the public, program service fees, gains, etc), The Salvation Army does not rely as much on donations and contributions as other non-profits (51% of the revenue comes from public support and about 9% from governmental agencies).

Their largest liability is not to the people they serve but to their employees in the form of $2 billion in estimated pension and post retirement benefits. It is also important to note that the value of the organizations’ assets are partially due to the tendency of not spending all the revenue collected or earned in any given year (i.e. in 2014, nearly $600 million of the $4.1 in revenue (or 15% of revenue) reported was not spent, which strengthens their respective balance sheets).

So, how is $1 in revenue spent? It depends (and varies based on each Salvation Army organization) but generally $1 in revenue is spent as follows in the USA:

$1.00: Revenue

-$0.40: Salaries, allowances, benefits, and payroll taxes

-$0.14: Occupancy, furnishings, and equipment

-$0.07: Supplies, communication, postage, org dues, awards, and miscellaneous expenses

-$0.04: Travel, conferences, meetings, and major trips

-$0.04: Professional fees

-$0.02: Printing and publications

-$0.01: Support (World Service Support)

-$0.72: Subtotal of Functional Expenses

$0.28: Amount Remaining

-$0.13: Direct Assistance to Individuals (primarily “Other Social Services”)

-$0.15: Amount Unspent

THE SALVATION ARMY NATIONAL CORPORATION

Collected $60.3 million of which $28.7 million (47%) came from public support, $25.8 million (43%) from other sources (investment income, gain on sale of assets, sale of publications, etc), and $5.8 million (10%) from territory assessments.

Functional expenses were $45.3 million (75% of revenue), of which $44.8 million ($0.5 million was depreciation, a non-cash expense) or 74% of revenue – was spent on program services, management, and fundraising:

$20.1 million was spent on printing and publications;

$7.9 million was distributed to affiliates;

$7 million was spent on professional fees;

$5.9 million was spent on salaries, allowances, benefits, and payroll taxes;

$1.4 million was spent on travel, conferences, meetings, and major trips;

$1.4 million was spent on occupancy, furnishings, and equipment; and

$1.1 million was spent on supplies, communications, postage and shipping, organization dues, awards, and misc.

The remaining funds – $15 million (25% of revenue) – were not spent allowing the balance sheet to strengthen. Total assets were $196 million at year-end, most of which are in assets held under split-interest agreements (trusts where The Salvation Army has the right to the income and/or assets) and investments. Liabilities were $67 million, most of which are trusts held by others, leaving net assets of $128 million at year-end.

THE SALVATION ARMY WORLD SERVICE OFFICE – SAWSO

Collected $25.7 million of which $13.2 million (51%) came from related organizations (primarily the four US division territory offices), $7.8 million (30%) in other contributions, $3.3 million (13%) from the sale of assets, $0.9 million (4%) from investments, with the remaining $0.5 million (2%) from federated campaigns and government grants.

Functional expenses were $20 million (78% of revenue) with $5.8 million spent on management, fundraising, and program service expenses:

$2.3 million spent on compensation and benefits;

$1.7 million on construction supplies and equipment(why these are expensed as opposed to being an asset and amortized is not explained);

$1.2 million on office, occupancy, travel, conferences, conventions, and meetings; and

$0.6 million on other expenses, accounting, and legal.

The remaining $14.2 million was given in grants and other assistance – all outside the country and most ($12.7 million) in what is described as “general support” followed by $1.5 million in disaster relief and recovery, health programs, and community development.

The remaining funds – $5.7 million – were not spent allowing the net assets/fund balance to increase from $54.1 million to $60.9 million.

THE SALVATION ARMY CENTRAL TERRITORY

Collected $916 million of which $437 million (48%) was from public support (i.e contributions, donations, etc). $93 million (10%) came from government agencies while $386 million (42%) came from investment income, sales to the public, program service fees, gains and other sources (no detail provided).

Functional expenses were $786 million (86% of revenue) of which $33 million was depreciation (a non-cash expense) leaving $753 million, $635 million of which was spent on functional expenses for program services, management, fundraising, and support services:

$385 million was spent on salaries and allowances, benefits, and payroll taxes;

$28 million was spent on travel, conferences, meetings, and major trips;

$100 million was spent on occupancy, furnishings, and equipment;

$64 million was spent on supplies, communication, postage, org dues, awards, and miscellaneous expenses;

$31 million was spent on professional fees and interest;

$18 million was spent on printing and publications; and

$9 million was spent on World Service (National Headquarters?) support.

$118 million (13% of revenue) was spent on “direct assistance” which is primarily “other social services” – again, with no further information provided.

$130 million was not spent ($163 million if depreciation, a non-cash expense is added back) which contributed to the organization increasing their assets from $3.139 billion to $3.302 billion (most of which are investments and land, buildings, furniture and equipment). Liabilities increased from $798 million to $859 million (most of which – $472 million – is for the estimated liability for retirement benefits, $208 million are mortgages, and $128 million are accounts payable and accruals), allowing net assets to increase by $102 million to $2.443 billion at year-end.

In summary, the Salvation Army Central Territory reported $916 million in revenue, nearly half of which came from the public (about 40% came from investment income, sales to the public, program service fees, gains and other sources, while 10% came from government agencies). They spent $635 million (69% of revenue) on program, management, fundraising, and support services (the largest category of which was salaries and the associated expenses). $118 million (13% of revenue) was spent on “direct assistance” (“other social services) leaving $130 million (of the $916 million reported) or 14% unspent, allowing the balance sheet to further strengthen. At year-end the organization had more than $2.4 billion in net assets (even after considering nearly $500 million for retirement benefits for their employees).

THE SALVATION ARMY SOUTHERN TERRITORY

Collected $1.090 billion of which $623 million (57%) came from public support (i.e. contributions, donations, etc), $73 million (7%) from governmental agencies, and $394 million (36%) from sales to the public, investment income, program service fees, and other sources.

Functional expenses were $1.007 billion (92% of revenue) in 2014, of which $847 million was spent on program services, management, fundraising, and support services:

$457 million was spent on salaries and allowances, benefits and payroll taxes;

$183 million was spent on occupancy, furnishings, and equipment;

$93 million was spent on supplies, telecommunications, postage and shipping, org dues, awards, and misc;

$41 million was spent on professional fees;

$40 million was spent on travel, meals, conferences, meetings and major trips;

$29 million was spent on printing and publications;

$4 million was spent on support services (National Headquarters?).

$160 million (16% of revenue) was spent on specific assistance to individuals described as “other social services” with no further detail.

The difference between total revenue ($1.090 billion) and the amount spent ($1.007 billion) was $83 million which was left unspent.

The Salvation Army Southern Territory increased their total assets from $3.755 billion to $3.863 million – an increase of $108 million. Assets primarily consist of investments in securities ($1.8 billion) and land, buildings, and equipment at $1.1 billion). Liabilities increased by $90 million from $662 million to $752 million. The organization’s primary liability is $457 million for the estimated liability for retirement benefits followed by $132 million for mortgages payable. The net result is the Salvation Army Southern Territory increased their net assets by $18 million to $3.111 billion at year-end.

In summary, the Southern Territory collected more than a billion dollars in 2014, most of which came from public support followed by other sources (investment income, sales to the public, program service fees, gains and other sources. They spent $847 million (78% of revenue) on program, management, fundraising, and support services (the largest category of which was salaries and the associated expenses). $160 million (15% of revenue) was spent on specific assistance to individuals (“other social services”) leaving $83 million left to strengthen their balance sheet. At year-end, the organization had more than $3 billion in assets (even after considering $457 million for retirement benefits for their staff).

THE SALVATION ARMY EASTERN TERRITORY

Collected $968 million in 2014 of which $407 million (42%) came from public support, $106 million (11%) from governmental agencies, and $455 million (47%) from investment income, sales to the public, program and service fees, gains, and other sources.

Functional expenses were $836 million (86% of revenue) of which $51 million was depreciation (a non-cash expense) leaving $785 million. Of this amount, $689 million was spent on program services, management, fundraising, and support services:

$395 million was spent on salaries and allowances, benefits, and payroll taxes;

$134 million was spent on occupancy, furnishings, and equipment;

$60 million was spent on supplies, telecommunications, postage and shipping, org dues, awards, and misc;

$35 million was spent on travel, meals, conferences, meetings, and major trips;

$34 million was spent on professional fees;

$19 million was spent on printing and publications; and

$12 million was spent on World Services (National Headquarters?) support.

$96 million (10% of revenue) was spent on specific assistance to individuals, described as “other social services” with no further detail.

The difference between the total amount of revenue reported ($968 million) and the amount spent ($836 million or $785 million if depreciation, a non-cash expense is added back) is $132 million (with depreciation) or $183 million (with depreciation not included).

Total assets increased from $4.004 billion to $4.218 billion, most of which are investments and land, buildings, and equipment. Liabilities increased from $1.241 billion to $1.376 billion and primarily consist of pension and post retirement benefits ($528 million) and mortgages payable ($493 million). The net result is that net assets increased from $2.763 billion to $2.841 billion at year-end.

In summary, the Eastern Territory collected $968 million in 2014 most of which came from investment income, sales to the public, program service fees, gains and other sources (no detail provided), followed by public support. They spent $785 million (not counting depreciation, a non-cash expense) or 81% of revenue reported, of which $689 million (71% of revenue) was for program, management, fundraising, and support services (the largest category of which was salaries and the associated expenses). $96 million (10% of revenue) was spent on specific assistance to individuals (“other social services) leaving $132 million (14%) left to strengthen their balance sheet after considering $51 million (5% of revenue) in depreciation. At year-end, the organization had $2.8 billion in assets (even after considering $528 million for retirement benefits for their officers).

THE SALVATION ARMY WESTERN TERRITORY

Collected $1.096 billion in 2014, of which $646 million (59% of revenue) came from public support (i.e. contributions, donations, etc), $73 million (7%) from governmental agencies, and $377 million (34% of revenue) from investment revenue, sales to the public, program service fees, gains and other sources.

Functional expenses were $827 million (75% of revenue) of which $43 million was depreciation, a non-cash expense, leaving $784 million. Of that amount, $664 million was spent on program services, management, fundraising, and support services:

$355 million was spent on salaries and allowances, benefits, and payroll taxes;

$128 million was spent on occupancy, furnishings, and equipment;

$52 million was spent on supplies, telecommunications, postage and shipping, org dues, and awards;

$42 million was spent on professional fees and interest;

$41 million was spent on travel, meals, conferences, meetings, and major trips;

$26 million was spent on World Services (National Headquarters) support and other expenses; and

$20 million was spent on printing and publications.

$120 million (11%) was spent on specific assistance to individuals, described as “other social services” with no further detail.

The difference between the total amount of revenue ($1.096 billion) and the amount spent ($827 million or $784 million if depreciation, a non-cash expense is added back) is $269 million (with depreciation) or $312 million (with depreciation not included).

Total assets at year-end were $3.756 billion (a $312 million increase), most of which are investments and land, buildings, and equipment. Liabilities were $1.181 billion ($62 million more than the year prior) and consist primarily of the estimated liability for the pension plan, retirement, and post retirement benefits ($558 million), and mortgages payable of $337 million. The net result is that total net assets increased by $250 million to $2.575 billion at year-end.

In summary, the Western Territory collected $1.096 billion in 2014, most of which came from public support followed by investment income, sales to the public, program service fees, gains and other sources. They spent $784 million (not countering depreciation, a non-cash expense) or 72% of total revenue, of which $664 million (61% of revenue) was for program, management, fundraising, and support services (the largest category of which was salaries and the associated expenses). $120 million (11% of revenue) was spent on “direct assistance” (primarily “other social services”), leaving $269 million to strengthen their balance sheet. At year-end, The Salvation Army, Western Territory and Affiliates had $2.575 billion in net assets (after considering $558 million for the pension plan, retirement, and post retirement benefits).

In addition, Shame on the Salvation Army for not being transparent. Any organization asking for public and/or government donations, should disclose financial information so donors know where their dollars go. Read below:

The Salvation Army is an international group of Christians who claim the Salvation Army is a church. The funny thing is I can’t remember the last time I drove down the road and saw a church with the sign “Salvation Army” in front of it although I see signs in front of other churches identifying the property as Methodist, Evangelical, Presbyterian, Catholic, and more. In fact, I don’t recall ever seeing a church with the words “Salvation Army” on a sign in front of a church. So, where is the Church of the Salvation Army?

The Salvation Army is a non-profit “international charitable organisation structured in a quasi-military fashion” that has been granted 501 (c) (3) status – but as a church – with the IRS, which means they are not required to pay taxes or submit an IRS Form 990 annually to the IRS.

The Salvation Army maintains the organization is a “church” and therefore shouldn’t be required to file an IRS Form 990 annually which details the financial information of the organization. The organization’s officers and members are Christians with many members actually belonging to other churches. When asked, officers and members may state they are Christian, Catholic, Episcopalian, Methodist, a member of the Church of England, Presbyterian but I have not heard anyone say “Salvation Armian.”

So, here are the reasons why the Salvation Army and all its affiliate organizations should file an IRS Form 990:

The Salvation Army is not a “church” in the same way other “churches” exist that identify with a specific religious organization.

The Salvation Army organizations don’t pay real estate taxes on property (the holdings of which are significant) which means the property (commercial buildings, residential homes for officers, etc) comes off the tax rolls, which means the taxpayers must carry the financial burden. If the Salvation Army wants the public to carry the tax burden that would otherwise be paid by the owner of the properties, then full disclosure should be made.

The Salvation Army organizations rely on government grants and public funds. Any organization that takes government and public funds should be transparent. The audited financial statements had to be requested (I placed a phone call to the national headquarters in Alexandria, Virginia (703-684-5500) and spoke to a man who identified himself as Wayne, an Assistant Controller and asked for the audited financial statements. After asking me what I wanted them for (yes, really) and telling him I wanted to read them and that these statements are public information, he said I would receive them in 5-7 days.

When I did not receive the statements after two weeks, I called and left a voice message at Wayne’s office extension and received a phone call from a woman who didn’t identify herself. She told me she already e-mailed the four territory audited financial statements and that they don’t keep hard copies in the office. Imagine that. The accounting office doesn’t keep hard copies of financial statements. I asked for Salvation Army USA audited financial statements and she said “fine, I will send them, goodbye” and hung up, as I was asking her whether they would be sent via e-mail or mail. I never received the statements. Wayne told me he mailed the statements but I only received via e-mail a copy of the audited financial statements for The Salvation Army National Corporation. Information on compensation of key officers and anyone given compensation in excess of $100,000 was requested numerous times and never provided. I’m still waiting.

And, finally the last reason why the Salvation Army and all its affiliate organizations should file an IRS Form 990 is because it’s the right thing to do and any organization that places itself under the umbrella of Christian values knows the difference between right and wrong.