Army Emergency Relief
Scholar
Deployment
Funeral
Widow
Soldiers
Families
"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
5.8M — Contributed
5085K — Assisted
4.9M — Committed Future Ed
Soldier Assistance
4% vs 96%
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)
Soldiers at a Funeral
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).