While outsiders were shocked by the Associated Press article by Jeff Donn titled “Army Charity Hoards Millions,” Soldiers and veterans in the Army community only read what they already knew. The article described the failings of an organization named the Army Emergency Relief Fund, which was originally set up to help Soldiers in financial crises. Outlined extensively was the practice of AER adding over $100 million to its reserves while offering a very minimal amount of assistance grants to Soldiers in need; 91% of assistance offered between 2003 and 2007 by AER was in the form of loans. I want to applaud the Mr. Donn for taking an insightful and all-encompassing look at some of the more deplorable practices of the Army as seen through its own charity organization.

Why has an organization with an unassailable cause become an ineffective, rogue subsidiary of the U.S. Army? The answer is simple: lack of oversight. Organizations chartered separately from the U.S. Army for support and charitable purposes have become increasingly controlled by Army officers in the last six years; their effectiveness has consequently been relegated to the proverbial back burner as Army officers have become increasingly concerned with their other responsibilities. Making sure a Soldier is able to make their rent payment by serving as their loan officer (and ultimately collection agent) is not the most pressing item on a captain’s desk in the morning.

AER is almost completely funded by Soldiers through the effective use of intimidation tactics and illegal rewards by the Army’s senior leaders. "If I ask a private for something ... chances are everyone's going to do it. Why? Because I'm a lieutenant," says Iraq war veteran Tom Tarantino, otherwise an AER backer. "It can almost be construed as mandatory." Exactly, Lt. Tarantino, and that is why leaders such as yourself need to use great discretion in what you say to your subordinates, ESPECIALLY the senior enlisted leaders serving alongside you. This is further evidenced by the quote from Mr. Spiegel, the AER administrator, when he states, "I spent 29 years in the Army, I know how ... first sergeants operate. Some of them do strong-arm." When an officer does not use discretion and a senior enlisted leader is not expected to use discretion, the junior enlisted soldiers are the ones who suffer. I heard it all during my time in the Army: promises of three-day passes, exemptions from the duty roster, and platoon parties for donating to AER and other charities. I am glad that Mr. Donn included this aspect of the situation in his article because, as in other Army affairs, the leaders speak before long before assessing the legality of their statements. The AER charter specifically prohibits any of these rewards, but what Specialist or Private is going to stand up to their battalion commander and draw attention to that fact?

The intimidation continues for those Soldiers who need an AER grant for legitimate purposes. After having to share the fact that they need money with their junior superiors (who usually admonish them for their situation) they are led to their company commander or first sergeant. Despite the fact that the average infantry captain or first sergeant has no charitable organization nor banking experience, they are the sole approval or disapproval authority for a loan up to $1,000.00. While Soldiers should receive a grant from AER at this point, they receive a loan to be repaid to the fund. If they fall behind in their repayment they are threatened with multifaceted possibilities, such as UCMJ punishment or a ban from favorable personnel action such as promotion.

While I know this is an active duty issue introduced into a veterans’ arena, I know that you are the audience with the largest breadth of military experience. I also know that you are the people most likely to fight for change within military systems which have proven ineffectual and have neglected their primary mission to help service members. Please contact your congressman and express your displeasure about Army Emergency Relief and its controversial administration before its annual campaign starts this spring, and help make a difference for many Army Soldiers in need.


Jeremy Hildebrand
Deputy Legislative Director
War on Terrorism Veterans of America