Army Charity Hoards, Rather Than Gives: Report

One criticism made of banks during this economic meltdown is that despite being given billions in bailout funds, they appear to be hoarding, rather than lending. An AP investigation seems to point to similar hoarding by the Army Emergency Relief fund, which is supposed to help put returning soldiers back on their feet.

The investigation shows that between 2003 and 2007, the fund spent just $64 million on direct aid, while saving $117 million into its own reserves.

According to the AER's website, the fund is supposed to "Help the Army take care of its own." Hard to do that without spending anything. Something like how a stimulus package needs spending as well.

During that same 2003 - 2007 period, the smaller Navy and Air Force charities both put far more of their own resources into aid than into their reserves. The Air Force charity put $24 million into reserves while spending $56 million in total aid, while the Navy charity put $32 million into reserves and dispensed $49 million in total aid.

It should be noted this period of time encompasses the watch of the Bush administration, in case anyone wants to make an issue of it.

According to the report,

most charity watchdogs view 1-to-3 years of reserves as prudent, with more than that considered hoarding. Yet the American Institute of Philanthropy says AER holds enough reserves to last about 12 years at its current level of aid.

The American Institute of Philanthropy, which grades charities, also gives the AER an "F" because of the hoarding.