Army Emergency Relief

"Helping The Army Take Care of its Own"

Yesterday · Today · Tomorrow

What AER is about: Meeting Emergency Financial Need

• Unforeseen and urgent
• Death of familiy member
• Illness
• Natural Disaster
• POV repairs
• IRD
• No Pay

What AER is not about:

• We are not a social service agency
• AER Funds are not an Entitlement
• NOT a solution to "All Financial Problems"

Who does AER help?

• Active duty soldiers, single or married, and their eligible family members.
• ARNG and USAR soldiers on active duty for more than 30 consecutive days and their eligible family members.
• ARNG and USAR soldiers on active duty for more than 30 consecutive days and their eligible family members.
• ARNG and USAR soldiers who retired at age 60, and their eligible family members.
• Surviving spouses and orphans of soldiers who died while on active duty or after they retired.

Categories Of Authorized Assistance

• Non receipt of Pay
• Loss of Funds
• Medical, Dental, and Hospital expenses
• Funeral Expenses
• Emergency Travel
• Rent
• Food
• Essential POV
• Utilities
• Clothing
• Fire or other Disasters
• Privation

Categories Of Unauthorized Assistance

• Divorces
• Marriages
• Education Expenses
• Rental, lease or purchase of POV
• Travel of Non-command sponsored Dependents
• Ordinary Leave
• Continuing Assistance
• Abortion
• Liquidation or consolidation of debts
• Business Ventures or Investments
• Bad Checks
• Civilian court fees, fines, judgments, liens, bail, legal fees, or income tax
• Goods or items for convenience, comfort, or luxury

Loan vs Grant Considerations

• Historically, approximately 94% of assistance is in form of Loans
• Grants should be considered only when inability to repay exist
  • Grants are not provided simply because soldier has a monthly deficit
  • Look at how they got there — Irresponsible, living beyond their means?
  • Grants for soldiers who have been financially irresponsible often reward this type of behavior while penalizing soldiers who are repaying their loan
• Grants are not given for expenses which will be reimbursed by Insurance/Government

From Where Does Aer Get Its Funds?

• Voluntary contributions from active and retired soldiers (14.2%)
  • Campaign
  • Name awareness
  • Tax Exempt
  • Status
  • Obtain funds
• Repayment of AER interest-free loans (65.1%)
• Investment income (20.3%)
• Unsolicited contributions (0.4%)
  • Atlantik-Bruecke ($279k)
  • Pentagon Victims Fund

Where Does My Contribution Go?

• 4% Administrative Expense
• 96% Soldier Assistance
• $0.96 of each dollar goes to soldier assistance, only $0.04 is used for administrative expenses

Why We Need A Campaign

• Campaign keeps awareness level of AER high. Reinforces who we are and what we do for soldiers.
• Campaign provides the public support necessary for AER to be a tax exempt charity. (IRS requires minimum of 33% of income from contributions.)
• Without a campaign, AER reserve funds would be jeopardized.

Need Is Greater Than Ever! (62 Years Of Assist)

• AER Asst since 1942 = $870M (2.9M Soldiers)
• First 51 Years (1942–1992): $485 Million for 2.3 Million Soldiers
• Last 11 years (1993–2003): $385 Million (44%) for 601,178 Soldiers (21%)

Why Have Reserves? And How Are They Used

• RESERVES are what keeps AER healthy as AER gives out more in grants/scholarship/writeoffs (7M) that it receives in campaign contributions (6.3M)
• All commanders have unlimited access for solving soldiers’ problems.
• Immediate availability of funds in support of mobilization (Desert Storm — 1990–91)
• Guarantee against catastrophic need. (e.g. "Payless" payday — 1995)
• Cushion for "hidden demand" caused by rising inflation. (e.g. 1978—1981)

Funeral Expenses for Dependents of Active Duty Members

• Previously AER provided Up to $2500 grant when death of Spouse, Child, or Dependent Parent
• Nov 2001 SGLI extend to spouse and children
• AER will no longer provide grants but "Bridge loans"
• AER Will cont to provide grants for death of dependent parent or stillborns
• Travel cost associated with the death of a dependent
• When soldier is not able to come into AER section

Scholarships-Widows & Orphans (An Inherited Responsibility From Ars)

• Founded in 1900 to provide relief for soldiers’ widows and orphans.
• In 1976, AER received $3.5M from ARS when merged.
• This money was incorporated into the AER investment portfolio pool and grew to $53.2M by December 2003.
• During this same period, AER dispersed:
  • Assistance to widows and orphans: $26.7 M
  • Dependents children's scholarships: $19.8 M
  • Last Years scholarships ($2.8M)
  • 28% Active (60% Enl) 69% Ret (75%Enl)
  • 3% Deceased (71% Enl)

Spouse Education

• Pilot program for USAREUR, approved by Board of Managers in Nov 1996
• Spouse residing with Active Duty soldier in Europe.
• Financial grant based on NEED; for undergraduate study only.
• GED & ESL courses OK if not command funded.
• CY 2003 = 1486 Spouse/$769K
• No Longer "Pilot" Program — Expanded to Korea, Japan & Okinawa
• To date 70% of assistance given has been to spouses of SSG and Below (86% all Enlisted).