Veteran groups riled by report on Army charity

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Veteran groups riled by report on Army charity
By Jeff Donn, The Associated Press
Mideast edition, Wednesday, February 25, 2009

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.


Rest of article at: http://www.stripes.com/article.asp?section=104&article=60959