Probe Finds Army Charity is Hoarding Millions

Military's biggest charity is stockpiling cash, rather than using it for aid

FORT BLISS, Texas - 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, an Associated Press investigation shows.

The rear gunner on a US Army Chinook helicopter keeps watch during a re-supply mission in eastern Afghanistan's Kunar province December 23, 2008.(Bob Strong/Reuters

Between 2003 and 2007 - as many military families dealt with long war deployments and increased numbers of home foreclosures - Army Emergency Relief 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, according to an AP analysis of its tax records.

Tax-exempt and legally separate from the military, AER projects a facade of independence but really operates under close Army control. The massive nonprofit - funded predominantly by troops - allows superiors to squeeze soldiers for contributions; forces struggling soldiers to repay loans - sometimes delaying transfers and promotions; and too often violates its own rules by rewarding donors, such as giving free passes from physical training, the AP found.

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