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FirmhandKY -> RE: Shameful army "charity" (2/23/2009 12:56:21 AM)
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FR: I was fairly familiar with AER when I was in service. I'm not sure I buy into all of the article, as it seems kinda "muckrakest", and by the AP no less. I also do not know if the reserves that they are talking about "hoarding" is actually hoarding or not, as this is just one side of the story (and again, by the AP). On the other hand, since they "lost" $82 million last year due to the stock market "crash", I'm not sure that they are wrong about having large reserves. If things go even more south, they may be one of the few charities that might have sufficient funds to provide much of ANY emergency funds to soldiers. As a matter of fact, after re-reading the article a couple of times, I'd say it isn't "muckrakest", it flat out slanted. According to the articles own words, a charity should keep 1 to 3 years worth of funding. Since they gave out $64 million last year, a three year reserve fund would be about $192 million. They currently have $117 million in reserves ("packed away" in the articles terminology). Even a cursory reading with a critical eyes sees a lot more slanting going on. For example: quote:
While independent on paper, Army Emergency Relief is housed, staffed and controlled by the U.S. Army. That's not illegal per se. Eric Smith, a spokesman for the Internal Revenue Service, said the agency can't offer an opinion on a particular charity's activities. But Marcus Owens, former head of IRS charity oversight, said charities like AER can legally partner closely with a government agency. Not illegal "per se"? This makes it sound if something fishy is going on. The fact is ... it's perfectly legal and legitimate. Lots more in the article, if you just look. It's a hit piece. Firm
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