The Army of "Get None"

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, according to the Associated Press.

Between 2003 and 2007 — as many military families dealt with long war deployments and increased numbers of home foreclosures — Army Emergency Relief (AER) 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.

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.

AER executives defend their operation, insisting they need to keep sizable reserves to be ready for future catastrophes. But smaller civilian charities for service members and veterans say they are swamped by the desperate needs of recent years, with requests far outstripping ability to respond.

While independent on paper, Army Emergency Relief is housed, staffed and controlled by the U.S. Army. The investigation also found that the Army engages in some very questionable activity in the running of the charity:

• Superior officers are used to coerce repayments on loans taken out by needy troops. Soldiers can also be fined or demoted for missing loan payments.

• Promotions can be delayed or canceled if loans are not repaid.

• Despite strict rules against coercion, the Army uses pushy tactics to extract supposedly voluntary contributions.

• The Army sometimes offers rewards for contributions, though incentives are banned by program rules. It sometimes excuses contributors from physical training — another clear violation.

• AER screens every request for aid, conducting unwelcome intrusions into the personal finances of its troops.