Because the Salvation Army is a church, Title VII of the U.S. Civil Rights Act of 1964 allows it to inquire into people's religious beliefs in its hiring practices. The Salvation Army states that it does not "discriminate against hiring gays and lesbians for the majority of its roughly 55,000 jobs,"[150] but it has supported legislation which would allow it to deny employment and federally-funded services to lesbian, gay, bisexual, and transgender (LGBT) individuals.[151][152]
In 1997 the city of San Francisco enacted a law requiring all companies doing business with the city government to extend domestic benefits to same-sex partners of employees. In refusing to do so, the Salvation Army declined a US$3.5 million contract.[153] In 2001, the Salvation Army pressed the Bush Administration to exempt it and other religious groups from anti-discrimination legislation which it felt infringed on the organization's religious freedoms. This request was denied, and was sharply rebuked by David Smith, then-spokesperson for the Human Rights Campaign. "Gays and lesbians are taxpayers, too," said Smith. "Their money should not be used by religious groups to fund discriminatory practices against them."[150][154][155]
The Salvation Army Western Territory approved a plan in October 2001 to start offering domestic partnership benefits to employees in same-sex relationships.[156] Members of various evangelical Christian interest groups protested the decision. Focus on the Family founder James Dobson excoriated the Salvation Army for abandoning its "moral integrity" and urged his radio listeners to bombard the organisation's offices with phone calls and letters. The American Family Association also accused the Salvation Army of a "monstrous ... appeasement of sin" that resulted in a "betrayal of the church". In November 2001 the Salvation Army US-wide rescinded the Western Territory's decision with an announcement that it would only provide benefits coverage for different-sex spouses and dependent children of its employees.
In 2004, the Salvation Army said that it would close operations in New York City unless it was exempted from a municipal ordinance requiring them to offer benefits to gay employees' partners. The City Council refused to make the exemption. Mayor Michael R. Bloomberg’s administration chose not to enforce the ordinance. The administration's right to decline to enforce the ordinance was upheld by the New York State Court of Appeals in 2006.[157]
On 15 December 2012, in Canada, Andrea Le Good noticed a Salvation Army bell-ringer carrying a sign reading "if you support gay rights: please do not donate". While the bell-ringer claimed he had permission from the charity to wear the sign, Salvation Army spokeswoman Kyla Ferns said that it had no part in the sign, and that the bell-ringer was pulled away immediately when the charity learned about it.[158] The charity's website describes marriage as heterosexual by definition, and a published document called on homosexuals to embrace celibacy as a way of life. The same document also states that there is no scriptural support for the mistreatment of homosexuals.[158]
In February 2000, the Salvation Army in the United Kingdom publicly opposed the repeal of Section 28 of the Local Government Act 1988, which prevented local authorities from "intentionally promot[ing] homosexuality".[159] However, the organisation's UK website states that it offers "unconditional assistance and support regardless of race, religion, gender or sexual orientation, respecting the identity and choices of all those referred to them. ... As well as having a right to be dealt with professionally, people can expect from us encouragement and a respect for their individual beliefs, ambitions and preferences".[160]
Before the passing of the Homosexual Law Reform Act 1986 by the New Zealand Parliament, the Salvation Army was active throughout New Zealand gathering signatures for a petition seeking to prevent the bill's passing. In 2006, the Army released a statement regretting the ill feelings that persisted following this activity. It stated in part "We do understand though that The Salvation Army's official opposition to the Reform Bill was deeply hurtful to many, and are distressed that ill-feeling still troubles our relationship with segments of the gay community. We regret any hurt that may remain from that turbulent time and our present hope is to rebuild bridges of understanding and dialogue between our movement and the gay community."[161]
Despite documented events of Salvation Army's volunteers and their views, the organisation has issued an LGBT Statement as a response. The statement does not address any documented news events of discrimination and claims to debunk these events as urban myth.[162]
In November 2013 it was made known that the Salvation Army was referring LGBT individuals to one of several conversion therapy groups.[162] As a response the Salvation Army removed such referrals from their website.[163]