The Governing Council of the Salvation Army in Canada is a two-star charity with a low results reporting grade and reasonable overhead spending. It's financially transparent but has low demonstrated impact. 

The Governing Council of the Salvation Army in Canada (Salvation Army) is an international organization that began working in Canada in 1882. Its mission is to help people access basic needs and improve their quality of life in the name of Jesus Christ. Salvation Army mainly works in Canada and Bermuda and is the largest non-governmental direct provider of social services in Canada. The charity reports that in 2020, 3 million Canadians lost their jobs. It also reports that each month 1.3 million people use food banks in Canada. Its main charitable programs are Shelter and Drug Withdrawal Management; Healthcare; and Community and Family Services.

In F2021, Salvation Army spent $223.0m on Shelter and Drug Withdrawal Management, representing 42% of total program spending. This program involves various social services including withdrawal management, emergency shelter, mental health support, and employment support. In F2021, 230 people completed addiction programs, 4,200 people got job referrals, and 59,000 people were helped through night patrol, rescue, and suicide prevention.

The charity spent $151.7m on Healthcare in F2021, representing 29% of program spending. Services in this program include palliative care and long-term care for seniors. During the year the charity visited 40,000 people in hospitals, nursing homes, and daycare centres.

In F2021, Salvation Army spent $79.9m on Community and Family Services, which represents 15% of total program spending. This program includes nutritional and financial support for families and youth in need. In F2021, the charity assisted 1.5 million people by providing them food, clothing, and other practical assistance. The charity also reports helping 7,200 vulnerable youth through 45 community programs. The remaining 14% of program spending was spent on a variety of other minor programs.

Salvation Army is a Major 100 charity, one of the largest charities in Canada in terms of donations. In F2021, Salvation Army received $244.2m in Canadian donations. It also received $362.6m in government funding (39% of total revenue) and $80.4m in fees for service (9% of total revenue). Salvation Army earned $246.7m in investment income, representing a 22% annual return. Its average annual investment return since F2013 is 9%. The average annual investment return of the S&P 500 from 2013 to 2021 is around 15%. The charity holds $1.3 billion in investments. Its portfolio is composed of 54% equities, 29% fixed income investments, 7% domestic real estate, 7% foreign infrastructure, and 4% cash and cash equivalents.

Administrative costs are 7% of total revenue excluding investment income. Fundraising costs are 10% of Canadian donations. This results in total overhead spending of 17%. For every dollar donated to the charity, 83 cents go to the cause. This is within Ci’s reasonable range for overhead spending.

Salvation Army has $1.4 billion in net funding reserves ($1.4 billion in liquid assets less $65.2m in interest-bearing debts). Its liquid assets also include $32.0m in donor-endowed funds. Salvation Army’s net funding reserves, excluding donor-endowed funds, can cover annual program costs for around two years and six months.

This charity report is an update that has been sent to Salvation Army for review. Changes and edits may be forthcoming.

Updated on June 24th, 2022 by Arjun Kapur.