WHY A VIRTUAL ANNUAL REPORT?
08/10/2009

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<p align="center"><span style="color: #993300;"><strong>Why a Virtual Annual 
Report?</strong></span></p>
<p align="center"><span style="color: #993300;"><strong>September 
2009</strong></span></p>
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<p><strong>For the first time
ever, The Salvation Army is going entirely paperless by releasing its 2009
National Annual Report in an all-online format.</strong></p>
<ul class="unIndentedList">
<li> The annual report's digital format allows The Salvation Army to broadly
communicate the organization's yearly work and financials with its donors in a
way it has never done before. </li>
<li> The layout uses interactive financial charts, and emotional video
testimonials from clients and Salvation Army officers and staff to shed light
on the impact of the nonprofit organization throughout the year.</li>
<li> The report was created and produced by Dallas-based independent
advertising agency The Richards Group and the agency's digital arm Click 
Here.</li>
<li> The financial and service statistic information included in the report
covers the 2008 fiscal year (October 1, 2007 - September 30, 2008)</li>
</ul>
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<p><strong>The online annual report
combines the best aspects of all the things that can be done online and
demonstrates The Salvation Army's forward-thinking approach to communicating
with the public.</strong></p>
<ul class="unIndentedList">
<li> By launching the annual report in a completely digital format, the Army
is hoping to reach a new and younger audience that uses the Internet as their
main source of news and information.</li>
<li> The digital annual report is one way for supporters to quickly and easily
learn about how charitable contributions are being used by The Salvation Army
to help those in need.</li>
<li> With the environmentally friendly shift to a digital format, The
Salvation Army has also done away with thousands of paper annual reports that
will no longer be printed.</li>
</ul>
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<p>&nbsp;</p>
<p><strong>The Salvation
Army's 2008 Annual Report is available online at </strong><a href="http://annualreport.salvationarmyusa.org/">http://annualreport.salvationar
myusa.org/</a>.
The
Salvation Army will continue to produce the digital annual report for future
fiscal years, providing new financial information as well as new testimonials
from those served by the organization.</p>
<ul class="unIndentedList">
<li> Users will still have the ability to print a formatted version of the
document from their own computers. </li>
</ul>
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<p><strong>Q&amp;A </strong></p>
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<p><strong>Why did The
Salvation Army decide to launch the 2008 Annual Report this year in an online
format?</strong></p>
<ul class="unIndentedList">
<li> With the economic downturn greatly impacting nonprofit organizations
nationwide, The Salvation Army wanted to show the public that the organization
will continue to provide services at the point of need and will work with our
supporters and help our clients through these challenging times just as we have
for nearly 130 years. The annual report conveys this message through the words
of The Salvation Army's National Commander Israel Gaither and through the
testimonials of clients The Salvation Army has helped.</li>
</ul>
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<p><strong>Who did The
Salvation Army partner with in developing the digital annual 
report?</strong></p>
<ul class="unIndentedList">
<li> The Salvation Army partnered with Dallas-based independent advertising
agency The Richards Group and the agency's digital arm Click Here to create the
annual report. The two companies developed an easy-to-navigate story that lets
the online audience actively connect with The Salvation Army according to their
specific interests in the organization.</li>
</ul>
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<p><strong>What is the
digital annual report able to do that hardcopy reports are not?</strong></p>
<ul class="unIndentedList">
<li> The annual report combines the best aspects of all the things that can
be done online and connects supporters with The Salvation Army according to 
their specific
interests in the organization. The report includes compelling video message
about the Army's overall vision and clients' personal testimonies and success
stories. The report also charts the organization's financial performance for
the past year, including through the current recession.</li>
<li> The report also includes video messages that provide compelling insight
to clients' personal success stories in a way no piece of paper can. The
individuals and families included received help and guidance through a variety
of Salvation Army programs nationwide including Families and Individuals in
Transitional Housing (F.A.I.T.H.) in Sarasota, FL; Caring Partners Adult Day in
Rochester, MN; and Keep a Job in Wilmington, DE. </li>
</ul>
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<p><strong>How does the
digital annual report benefit Salvation Army supporters and donors?</strong></p>
<ul class="unIndentedList">
<li> As more and more donors move online to learn about charities, the online
annual report is one more way for donors and supporters to quickly and easily
learn about how their charitable contributions are being used to help those in
need.<strong></strong></li>
</ul>
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<p><strong>Will The Salvation
Army continue to produce hardcopies of the annual report?</strong></p>
<ul class="unIndentedList">
<li> With the development of an online annual report, The Salvation Army has
done away with thousands of paper annual reports that will no longer be
printed. The environmentally friendly shift to a digital format lets the Army
reach a broad audience, while reducing the need to produce and distribute the
printed version by mail every year. However, visitors to the site will still
have the ability to print a formatted version of the document from their own
computers. </li>
</ul>
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<p><strong>Will The Salvation
Army continue to create digital annual reports in the future?</strong></p>
<ul class="unIndentedList">
<li> The Salvation Army will continue to produce the digital annual report
for future fiscal years with the Richards Group, providing new financial 
information
as well as new testimonials from those served by the organization.</li>
</ul>
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<p><strong>How much did this
report cost to produce? How does this compare to previous years?</strong></p>
<ul class="unIndentedList">
<li> Developing the Web Site cost about $56,000 which compares to around
$75,000 we have spent to produce and distribute paper annual reports in the
past. Shooting the video for the report cost considerably more (in the $200,000
range) but that came out of a previously allocated advertising production
budget. </li>
</ul>
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