AP INVESTIGATION: Army charity hoards millions

[wavesofeuphoria]

AP INVESTIGATION: Army charity hoards millions
By JEFF DONN AP National Writer © 2009 The Associated Press
Feb. 22, 2009, 2:10PM

FORT BLISS, Texas — As soldiers stream home from Iraq and Afghanistan, the biggest charity inside the U.S. military has been stockpiling tens of millions of dollars meant to help put returning fighters back on their feet, an Associated Press investigation shows.

Between 2003 and 2007 — as many military families dealt with long war deployments and increased numbers of home foreclosures — Army Emergency Relief grew into a $345 million behemoth. During those years, the charity packed away $117 million into its own reserves while spending just $64 million on direct aid, according to an AP analysis of its tax records.

Tax-exempt and legally separate from the military, AER projects a facade of independence but really operates under close Army control. The massive nonprofit — funded predominantly by troops — allows superiors to squeeze soldiers for contributions; forces struggling soldiers to repay loans — sometimes delaying transfers and promotions; and too often violates its own rules by rewarding donors, such as giving free passes from physical training, the AP found.

...

Instead of giving money away, though, the Army charity lent out 91 percent of its emergency aid during the period 2003-2007. For accounting purposes, the loans, dispensed interest-free, are counted as expenses only when they are not paid back. During that same five-year period, the smaller Navy and Air Force charities both put far more of their own resources into aid than reserves. The Air Force charity kept $24 million in reserves while dispensing $56 million in total aid, which includes grants, scholarships and loans not repaid. The Navy charity put $32 million into reserves and gave out $49 million in total aid.

http://www.chron.com/disp/story.mpl/ap/nation/6275435.html

[itsrobert]

1. When my wife's dad and mom died in a car accident

the Air Force would only offer me a loan that I paid back so we could fly there to arrange/attend the funeral and take care of the property, etc. I know civilians don't get help either, but I could of used it.

[jmowreader]

2. Every NCO in the Army probably has his or her own AER horror story

Mine revolves around a troop of mine the Army lost. He came from Fort Polk to Berlin, and Finance decided to quit paying him. After about four months, the guy was on the verge of getting his truck repossessed, the rest of the unit was buying him socks, everyone from his team chief (me) to the Field Station commander had attempted to intervene in his case without success, and Finance was still denying he was stationed in Berlin. So we took him to Army Community Services so he could apply for AER. "Since you're not married, we will loan you $20. That will be enough to buy shaving cream and razor blades and to get a high-and-tight at the barbershop...we expect repayment on the 15th, which is midmonth. Sign here, please." It's a good thing for the ACS troll we didn't let my guy go in there alone.