![]() Promotions can be delayed or canceled if loans are not repaid.They must clear their loans before transferring or leaving the service. Soldiers can be fined or demoted for missing loan payments. Superior officers come calling when AER loans aren't repaid on time.Still, Borochoff's organization, which grades charities, gives the Army charity an "F" because of the hoarding. The most recent yearly figures do show a tilt by AER toward increased giving. ![]() National administrators say they've tried to loosen the purse strings. What the shame is, is they're not doing more with it." (AP Photo/Victor Calzada) Victor Calzada / FR39270APĭaniel Borochoff, president of the American Institute of Philanthropy, said that AER collects money "very efficiently. A pamphlet presented to soldiers during a briefing for soldiers arriving on post Wednesday, Sept. Yet the American Institute of Philanthropy says AER holds enough reserves to last about 12 years at its current level of aid. Most charity watchdogs view 1-to-3 years of reserves as prudent, with more than that considered hoarding. "There's a bit of a tension when a government organization is operating closely with a charity," he said. However, he said, problems sometimes arise when their missions diverge. But Marcus Owens, former head of IRS charity oversight, said charities like AER can legally partner closely with a government agency. Eric Smith, a spokesman for the Internal Revenue Service, said the agency can't offer an opinion on a particular charity's activities. The Navy charity put $32 million into reserves and gave out $49 million in total aid. ![]() The Air Force charity kept $24 million in reserves while dispensing $56 million in total aid, which includes grants, scholarships and loans not repaid. For accounting purposes, the loans, dispensed interest-free, are counted as expenses only when they are not paid back.ĭuring that same five-year period, the smaller Navy and Air Force charities both put far more of their own resources into aid than reserves. Instead of giving money away, though, the Army charity lent out 91 percent of its emergency aid during the period 2003-2007. Its emergency aid covers mortgage payments and food, car repairs, medical bills, travel to family funerals, and the like. 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.įounded in 1942, AER eases cash emergencies of active-duty soldiers and retirees and provides college scholarships for their families. Tax-exempt and legally separate from the military, AER projects a facade of independence but really operates under close Army control.
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