By The topic of the AP investigation into the Army Emergency Relief (AER) program, was something that came up over in the ROK Drop Forums and now veterans groups are now joining in to criticize the program:
Veterans advocates are venting anger and frustration toward the biggest charity within the U.S. military after revelations that it has been packing more money into reserves than it has spent on aid during the wars in Iraq and Afghanistan.
“We have so many soldiers, reservists and National Guard who are in dire need, and for the Army to be holding this much money in reserve is despicable,” chairman Bob Handy of Veterans United for Truth, of Santa Barbara, Calif., said Monday.
He was reacting to an Associated Press investigation that examined five years of tax returns by Army Emergency Relief and reported on interviews with dozens of soldiers, veterans and officials from other military charities.
From 2003 to 2007, the charity, also known as AER, packed $117 million into its own reserves while spending just $64 million on direct aid, records show. By contrast, smaller Navy and Air Force charities both put far more of their resources into aid than reserves. Also, more than 90 percent of AER’s aid was given as no-interest loans, not outright grants.
Soldiers are squeezed for contributions, often rewarded for them in violation of regulations, and sometimes delayed in transfers or promotions when loans aren’t repaid, the AP found. [Stars & Stripes]
From personal experience I can tell you I have never had a soldier denied a AER loan and usually the lower enlisted guys that had to fly from Korea to home to attend a funeral for a family member for example, were usually given a grant.
However, as I have posted before on the ROK Drop fraud has been a problem with AER in recent years. AER also received an F grade during a audit of veterans charities that was reported by ABC News.
Now this latest report shows that the program has been hoarding money compared to other services programs as well as given out mostly loans instead of grants.
The Imperial Armorer has a good posting that explains AER’s side of the story which the AP article left out some important details.
1:43 pm on February 27th, 2009 1
I always thought the AER was racket when I was on active duty, many years ago. Seemed to be mainly set up to allow retired guys to find a job.
2:00 am on February 28th, 2009 2
I don't know of the fraud or internal problems which may exist – however, I have no problem with interest free loans instead of grants. The users of AER or usually the same folks over and over. Before they get a loan or grant a financial report is done to see where they are spending their money. Most are wasting a lot on unnecessary items. Salaries in today's military are reasonable. Some budget planning will usually allow you to make ends meet. Why should someone who waste their money on unnecessary items be given a grant while the individual who does the right thing get nothing? (sounds like the current housing bailout) With that said, occassionally there is the individual who has such bad luck a grant is the only answer. Few and far between.
2:49 am on February 28th, 2009 3
If the AER is such a great thing, why does the chain of command have to exert such pressure and harassment to raise its money?
Seems like if this was the best thing since direct deposit for the troops they wouldn't have to say a thing. The money would just roll in from the 1,000 of thankful troops who had personally experienced the services of the fine and outstanding AER.
I'm just asking.
3:20 am on February 28th, 2009 4
I can only speak from my personal experience with AER and soldiers that needed AER money always got it. Also the soldiers I recommended for grants usually got them as well which was usually E1-E4's with large families or for other reasons.
It was much tougher for NCO's to get grants. I in fact never had an NCO get a grant. The other services AER style programs give out more money to their servicemembers in grants. AER side of the story is that they give out less grants because they are hoarding money in case of a big emergency that may happen.
I don't know what big emergency they are waiting for but you would think the Army fighting in two wars would be big enough.
6:18 am on February 28th, 2009 5
I believe there are automatic deductions from you pay – to the old Soldiers home. Guess where the money taken from you pay goes when you receive an ARt 15 or two or three like me.
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