Why the Salvation Army's Real-Estate Holdings Make Sense

Mike Burns, a nonprofit consultant, believes the Salvation Army's decision to invest heavily in real estate makes good fiscal sense.

The organization owns about $4-billion in real estate nationwide -- comprising one-third of its total assets. Its non-commercial properties provide housing to Salvation Army officers, who are paid modest annual salaries of around $12,000.

"Nonprofits need donations but they also need creativity," writes Mr. Burns, on his Nonprofit Board Crisis blog. "They must be competitive and get the most out of these donations. And, like the Salvation Army, they must constantly emphasize their outcomes -- that's what it's all about."

Mr. Burns says that donors want to believe that the quarter, dollar, or $5 they drop in the kettle makes it possible for the Salvation Army to do the work it does, but in reality the challenges the organization is responding to are far more expensive and require creative approaches to pay for them.

What do you think? Should charities invest their money in real estate? Click on the comment link below to share your views.

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Comments

1. letsgetreal - March 22, 2010 at 02:12 pm

Well, maybe if the salvation army was supported by a congeration like most churches and not the American public.
Does anyone not find it odd that most of their church members are on th payroll? The Salvation Army is a cult, it is it's own denomination and using the public to fund their cult.

Those red kettles they have marketed as helping the poor are really a 6 week church fundraising campaigns that funds your local corps (church) community centers budget for the year. That budget has little too nothing to do with hunger, homeless, or poor. About 80% of the money is going to maintain and advance their denomination; NOT TOO PROGRAMS! The only source available on what the Salvation Army does with that money comes from the Salvation Army.

Bernie Madoff is nothing compared to the Salvation Army!

2. letsgetreal - March 22, 2010 at 02:17 pm

That $25,000/12,000 (depends on who you talk to) is met to deceive the public, they want you to think they live a life of self-sacrifice; they spend millions in marketing to create that image.
Fact is that $25,000 is SPENDING money. The so called officers live and all expenses paid lifestyle, complements of the red kettle donors! Home, health ins, dental ins, vision ins, vehicles, gas, heating, electric, phone, cell phones, Internet, cable, uniforms, daycare, trips, computers, retirement, cash salaries, money to pay taxes & all those reimbursed expense that go unreported. Ask to see their 1099's.

3. prcurnow - March 22, 2010 at 07:22 pm

letsgetreal is so far from truth, why would you even comment? I know this group, and 83% goes to help people in need. I will take you to meet the people and hear from them. The Salvation Army is the real deal. And letsgetreal is not.

4. letsgetreal - March 22, 2010 at 08:55 pm

I know them very well. I comment because it's about time the American public know the truth about The Salvation Army. If the people in need are salvation army officers, then you're right.

You would think a so called church would take issue with deceiving people.... but, when you're a church in name only- so you don't have to disclose any independently audited 990's and other financial information, it makes sense.

5. baseballmom - March 22, 2010 at 10:49 pm

The careful external audits of The Salvation Army that take place on a regular basis easily prove letsgetreal completely incorrect in how kettle money and donor money is used. He/she is also completely incorrect about Officers getting a "free ride", "all expenses paid" lifestyle. My 42 years of direct contact and experience with The Salvation Army in 13 different communities assures me The Salvation Army is using money exactly how it says it is. Those within the organization who attempt to misuse funds are always caught, and usually prosecuted. Helping the public and those in need truly is its priority.

And, by the way, in my community I know that only 3 members of the local Salvation Army church congregation are employees. letsget real, you are presenting a very dishonest picture of The Salavation Army.

6. letsgetreal - March 23, 2010 at 12:50 pm

There is an active federal lawsuit brought against THE Salvation Army in Idaho, by some former fundraisers. The Salvation Army sure is fighting hard to keep financial information from becoming public record?????

Please, do tell where the public can find this information, other than the salvation army's website?

Charity Navigator:"We know many donors are interested in this organization and have asked the Salvation Army to submit their financial data to us for review, and they have elected to decline, as they are allowed under federal law".