Relief societies mostly offering loans

[unhappycamper]

Military relief societies have been hit hard by the stock-market downturn, losing at least $163 million. Officials say the losses will not impair the societies’ missions, though — to provide loans and grants to soldiers, sailors, airmen and Marines in need.


Relief societies mostly offering loans
By Karen Jowers - Staff writer
Posted : Monday Mar 9, 2009 7:35:53 EDT

Even after their investment portfolios lost a combined $163 million in the recent stock market downturn, the three largest military relief societies still sit on $419 million in reserve assets.

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The relief societies say they are having to tighten their belts in the wake of the decline in reserve assets, making cuts in such areas as their education grant programs.

But officials say their losses will not impair their main mission: to help eligible troops and families buy food, pay for car repairs and take care of other emergency needs.

Other philanthropic groups say the fact that the relief societies can take such huge hits and still have so much left in reserve is a sign that the size of their cash stockpiles, and how they dispense that money, reflects a flawed business model — particularly amid two ongoing wars and deepening economic malaise.
Many loans, few grants

With deep roots in the military communities, AER, NMCRS, AFAS and the much smaller Coast Guard Mutual Assistance spend less of their donations on fundraising, compared with overall assets, than most charities.


Rest of article at: http://armytimes.com/news/2009/03/army_reliefmain_030909w/%2e