2014-10-23T10:42:56-05:00 2013-12-31 521855942 TATE AND TRYON 2021 L STREET NW SUITE 400 WASHINGTON DC 20036 990 2013-01-01 541797281 AIR FORCE AID SOCIETY INC AIRF 7039722650 241 18TH STREET SOUTH NO 202 ARLINGTON VA 22202 COL SIDNEY R HEETLAND CHIEF FINANCIAL OFFICER 7039722650 2014-10-23 1 SUBRINA L WOOD P00365899 2022932200 2013 2015-11-30 17:44:51Z JOHN D HOPPER JR 241 18TH STREET SOUTH NO 202 ARLINGTON VA 22202 131269230 0 X WWW.AFAS.ORG X 1942 VA THE AIR FORCE AID SOCIETY, A PRIVATE NON-PROFIT CHARITY, SUPPORTS THE MISSION OF THE US AIR FORCE BY RELIEVING THE FINANCIAL DISTRESS OF AIRMEN AND THEIR FAMILIES, ASSISTING WITH EDUCATION GOALS, AND IMPROVING QUALITY OF LIFE THROUGH PROACTIVE PROGRAMS. 21 21 22 0 0 0 6685304 7335731 8740 5603 14204867 14959439 -49667 -132361 20849244 22168412 8031711 7980022 0 0 2780516 2847450 0 0 374709 1777048 1828829 12589275 12656301 8259969 9512111 166519300 186854166 1403549 1605393 165115751 185248773 X THE SOCIETY ASSISTS U.S. AIR FORCE MEMBERS AND THEIR FAMILIES WITH EMERGENCY ASSISTANCE LOANS AND GRANTS, EDUCATION GRANTS AND SCHOLARSHIPS, AND BASE COMMUNITY ENHANCEMENT PROGRAMS. IN 2013, THE SOCIETY PROVIDED OVER $17.4 MILLION IN DIRECT SUPPORT TO AIRMEN. 0 0 6488633 5691894 0 EDUCATION ASSISTANCE - THE GENERAL HENRY "HAP" ARNOLD EDUCATION GRANT PROGRAM PROVIDES EDUCATIONAL GRANTS TO CHILDREN AND SPOUSES OF ACTIVE DUTY, RETIRED, AND DECEASED AIRMEN, HELPING THEM REALIZE THEIR EDUCATION GOALS. THESE GRANTS ARE NEEDS-BASED AND STIPULATED FOR USE ON DIRECT EDUCATION EXPENSES ONLY. IN 2013, THE SOCIETY AWARDED OVER $5.8 MILLION IN GRANTS TO 2,648 STUDENTS TO HELP PAY FOR COLLEGE. THE SOCIETY ADDED MERIT-BASED SCHOLARSHIPS TO THE PROGRAM IN 2011 FOR THE HIGHEST ACHIEVING INCOMING FRESHMEN. SELECTION IS BASED ON A STUDENT'S CUMULATIVE GPA, SAT/ACT SCORES, TRANSCRIPTS, ACTIVITIES, AND A WRITTEN ESSAY ON A SPECIFIC TOPIC CHOSEN BY THE SOCIETY. IN 2013, THE SOCIETY AWARDED 37 $5,000 SCHOLARSHIPS, EQUATING TO AN ADDITIONAL $185,000 IN EDUCATIONAL SUPPORT FOR THE FAMILIES OF US AIRMEN. 2163376 663133 5603 EMERGENCY ASSISTANCE (EA) - EMERGENCY ASSISTANCE IS PRIORITY NUMBER ONE FOR THE SOCIETY. THIS PROGRAM AIMS TO HELP RELIEVE THE FINANCIAL PRESSURES FELT BY AIR FORCE MEMBERS AND THEIR FAMILIES BY MEETING IMMEDIATE FINANCIAL NEEDS IN AN EMERGENCY SITUATION. DEPENDING ON THE INDIVIDUAL CIRCUMSTANCE, SUPPORT IS PROVIDED BY GRANTS, INTEREST-FREE LOANS, OR A COMBINATION OF BOTH. EA IS GENERALLY PROVIDED FOR BASIC LIVING EXPENSES, EMERGENCY TRAVEL, VEHICLE REPAIRS, FUNERAL COSTS, MEDICAL/DENTAL COSTS, CHILD/RESPITE CARE, AND MOVING EXPENSES. IN 2013, THE SOCIETY ASSISTED AIRMEN WITH OVER $9.6 MILLION, HELPING ALMOST 19,000 AIRMEN WORLDWIDE. THIS SUPPORT WAS PROVIDED THROUGH $663,133 IN GRANTS AND AN ADDITIONAL $9.0 MILLION IN INTEREST-FREE LOANS. 1853834 1624995 0 COMMUNITY ENHANCEMENT PROGRAMS - THE SOCIETY SUPPORTS SEVERAL BASE-LEVEL PROGRAMS AIMED AT IMPROVING THE QUALITY OF LIFE OF AIR FORCE FAMILIES. FUNDING FOR CHILDCARE SERVICES WAS $826,810 IN 2013 AS OVER 21,740 AF CHILDREN WERE CARED FOR AS PART OF THE GIVE PARENTS A BREAK, PCS MOVES, AND VOLUNTEER PROGRAMS. THE BUNDLES FOR BABIES PROGRAM PROVIDES EXPECTING AF FAMILIES WITH IMPORTANT INFORMATION ON BUDGETING FOR THE NEW BABY AND VARIOUS SUPPORT PROGRAMS THAT ARE AVAILABLE IN THE COMMUNITY. FOR ATTENDING THE CLASS, EACH FAMILY RECEIVES A TOTE BAG FULL OF BABY-RELATED ITEMS. THE SOCIETY HANDED OUT OVER 4,000 TOTES IN 2013 AT A COST OF $212,691. THE SPOUSES EMPLOYMENT PROGRAM PROVIDED ENTRY-LEVEL TRAINING TO ALMOST 1,000 AF SPOUSES IN 2013, AT A COST OF $163,677, IN AN EFFORT TO HELP THEM PROCURE VIABLE EMPLOYMENT. AREAS OF STUDY INCLUDED NURSING, COMPUTER SKILLS, AND BOOKKEEPING. THE CAR CARE PROGRAM SPENT $144,146 TO HELP 4,144 AF FAMILIES GET OIL CHANGES AND REGULAR MAINTENANCE ON THEIR PRIMMARY VEHICLES. THE PHONE HOME PROGRAM PROVIDED PREPAID CALLING CARDS TO DEPLOYED AIRMEN TO HELP THEM MAINTIAIN CONTACT WITH FAMILY MEMBERS BACK HOME. IN 2013, OVER 20,000 CARDS WERE DISTRIBUTED AT A COST OF $108,308 TO THE SOCIETY. OTHER PROGRAMS FUNDED BY THE SOCIETY IN 2013 WERE THE YOUTH EMPLOYMENT SKILLS (YES) PROGRAM AND THE SPOUSE HEARTLINK PROGRAM. 10505843 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 0 1 1 1 1 0 1 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 161 0 1 22 1 0 0 0 0 0 1 1 1 29 0 0 0 X 21 21 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AL AK AZ AR CA CO CT FL GA HI IL KS KY MA MD ME MI MN MO MS NC ND NH NJ NM NY OH OK OR PA RI SC TN UT VA WA WV WI X X COL SIDNEY R HEETLAND RET 7039722650 AFAS 241 18TH STREET SOUTH STE 202 ARLINGTON VA 222023409 DR FRANK J MCKEOWN PRESIDENT AND TRUSTEE 2.00 X X 0 0 0 HONORABLE WILLIAM A MOORMAN VICE PRESIDENT AND TRUSTEE 2.00 X X 0 0 0 MAJGEN EDWARD L BOLTON JR TRUSTEE 1.00 X 0 0 0 HONORABLE MICHAEL B DONLEY TRUSTEE 1.00 X 0 0 0 MAJGEN ALFRED K FLOWERS RET TRUSTEE 1.00 X 0 0 0 CMSGT DENNIS L FRITZ RET TRUSTEE 1.00 X 0 0 0 CMSAF JAMES A CODY TRUSTEE 1.00 X 0 0 0 MRS ATHENA CODY TRUSTEE 1.00 X 0 0 0 LTGEN RICHARD C HARDING TRUSTEE 1.00 X 0 0 0 DR WILLIAM W JENNINGS TRUSTEE 2.00 X 0 0 0 LTGEN DARRELL D JONES TRUSTEE 1.00 X 0 0 0 MRS ELLEN JUMPER TRUSTEE 1.00 X 0 0 0 MR LOUIS KINGSLAND TRUSTEE 1.00 X 0 0 0 DR JERROLD IW MITCHELL TRUSTEE 1.00 X 0 0 0 HONORABLE SUSAN L PAMERLEAU TRUSTEE 1.00 X 0 0 0 MR ELI COHEN TRUSTEE 1.00 X 0 0 0 MR JAMES C REAGAN TRUSTEE 1.00 X 0 0 0 HONORABLE EUGENE R SULLIVAN TRUSTEE 1.00 X 0 0 0 LTGEN DR THOMAS W TRAVIS TRUSTEE 1.00 X 0 0 0 MRS BETTY WELSH TRUSTEE 1.00 X 0 0 0 GEN MARK A WELSH III TRUSTEE 1.00 X 0 0 0 LTGEN JOHN D HOPPER JR RET CHIEF EXECUTIVE OFFICER 40.00 X 205964 0 51884 COL SIDNEY R HEETLAND RET CHIEF FINANCIAL OFFICER 40.00 X 152831 0 47831 COL LINDA F EGENTOWICH RET CHIEF OPERATIONS OFFICER 40.00 X 151357 0 43306 MRS DEBRA VOSBURG DIRECTOR OF COMMUNICATIONS 40.00 X 107109 0 39347 MR MICHAEL C PARNAROUSKIS JR CONTROLLER 40.00 X 107022 0 41470 724283 0 223838 5 0 1 0 SCHOLARSHIP AMERICA ONE SCHOLARSHIP WAY ST PETER MN 56082 ED PROGRAM ADMIN 242653 BAM TECHNOLOGIES 2001 JEFFERSON DAVIS HWY STE 610 ARLINGTON VA 22202 IT SOFTWARE DEVELOPMENT 191913 NORTHERN TRUST 50 LASALLE ST M-15 CHICAGO IL 60603 INVESTMENT MANAGEMENT 125453 ACT INC 500 ACT DRIVE PO BOX 168 IOWA CITY IA 52243 ED PROGRAM ADMIN 103910 4 3012 856006 40190 191755 6244768 229281 7335731 UNCOLLECTIBLE LOAN REPAYMENTS 900099 5603 5603 5603 4155301 4155301 119578858 108774720 10804138 10804138 10804138 187113 856006 326098 -138985 -138985 CLASS ACTION SETTLEMENTS 900099 5041 5041 MISCELLANEOUS 900099 1583 1583 6624 22168412 5603 0 14827078 36038 36038 7185097 7185097 758887 758887 653173 371655 224692 56826 1383127 787001 475794 120332 123464 70251 42472 10741 552650 314458 190111 48081 135036 76836 46452 11748 42429 42429 420795 420795 93383 53134 32125 8124 118498 72636 36747 9115 140263 79810 48250 12203 274671 156288 94487 23896 12332 7017 4242 1073 4613 4613 178205 101398 61303 15504 49116 27947 16896 4273 EDUCATION GRANT ADMINIS 346563 346563 OTHER FUNDRAISING COSTS 48334 48334 BAD DEBT EXPENSE 28864 28864 70763 31963 34341 4459 12656301 10505843 1775749 374709 1605862 1549766 1490777 2395806 48223 24290 79230 120668 5765851 5531517 41790 62754 2039172 1403638 440968 635534 145929829 148154980 10649120 27859983 467650 518868 166519300 186854166 212851 356749 1190698 1248644 1403549 1605393 X 163136130 183224679 229817 237290 1749804 1786804 165115751 185248773 166519300 186854166 9512111 10620911 0 X X 0 1 X 1 0 X 6205328 6489363 6249207 6685304 7335731 32964933 6205328 6489363 6249207 6685304 7335731 32964933 32964933 4204336 3855274 3849251 3943383 4155301 20007545 141216 166813 142874 231520 193737 876160 53848638 96521 0.61220 0.60050 X SCHEDULE A, PART II, LINE 10 - OTHER INCOME INCLUDES TWO MAIN ITEMS: (1) GROSS FUND-RAISING EVENT INCOME GENERATED BY THE SOCIETY'S ANNUAL USAF CHARITY BALL, WHICH WAS HELD ON APRIL 6, 2013. (2) THE SOCIETY RECEIVED PROCEEDS FROM THE SETTLEMENT OF CLASS ACTION LAWSUITS RELATING TO CORPORATE SECURITIES OWNED WITHIN THE SOCIETY'S INVESTMENT PORTFOLIO. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1749804 37000 254417 254417 1786804 1749804 203431 203431 1749804 1724804 26218 -1218 1749804 1624804 100000 196236 196236 1724804 1549804 75000 280603 280603 1624804 1.00000 0 0 353533 226842 126691 390106 247508 142598 1295533 929288 366245 635534 REAL ESTATE FUND 13263035 F HEDGE FUNDS 12716233 F PRIVATE EQUITY FUND 1880715 F 27859983 OTHER LIABILITIES 35849 ACCRUED COMPENSATION 271117 ACCRUED YES PROGRAM LIABILITY 264290 POST RETIREMENT LIABILITY 473638 DEFERRED 2014 CHARITY BALL INCOME 110880 DEFERRED LEASE INCENTIVES 92870 1248644 X 32559682 10620911 10620911 21938771 420795 -191154 229641 22168412 12426660 191154 191154 12235506 420795 420795 12656301 PART V, LINE 4: THE SOCIETY'S EDUCATION GRANT ENDOWMENT CONSISTS OF DONOR-RESTRICTED CONTRIBUTIONS THAT ARE INVESTED TO PROVIDE FUTURE EARNINGS TO FUND NAMED EDUCATION GRANTS, DESIGNATED BY THE DONOR, AS PART OF THE SOCIETY'S GENERAL HENRY ARNOLD EDUCATION GRANT PROGRAM. ALL RETURNS GENERATED BY THE EDUCATION FUND ARE USED TO FUND THE NAMED GRANTS ON AN ANNUAL BASIS. PART X, LINE 2: PART X, LINE 2 - FIN 48 (ASC 740) (ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES)- THE SOCIETY IS EXEMPT FROM PAYMENT OF INCOME TAXES UNDER THE PROVISIONS OF SECTION 501 (C)(3) OF THE INTERNAL REVENUE CODE. THE SOCIETY BELIEVES THAT IT HAS APPROPRIATE SUPPORT FOR INCOME TAX POSITIONS TAKEN. GENERALLY, INCOME TAX RETURNS RELATED TO THE CURRENT AND THREE PRIOR YEARS REMAIN OPEN FOR EXAMINATION BY TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: CHARITY BALL EVENT EXPENSES -191,154. THIS IS THE DIRECT COST OF THE SOCIETY'S USAF CHARITY BALL FUND-RAISING EVENT HELD IN 2013. THE 990 REQUIRES THESE COSTS TO BE NETTED AGAINST THE FUND-RAISING EVENT EARNINGS IN THE STATEMENT OF REVENUES IN PART VIII. THESE COSTS ARE REPORTED AS FUND-RAISING EXPENSES IN THE SOCIETY'S 2013 AUDIT REPORT. PART XII, LINE 2D - OTHER ADJUSTMENTS: CHARITY BALL EVENT EXPENSES 191,154. SEE NOTE FOR 4B ABOVE FOR MORE INFORMATION 0 EAST ASIA AND THE PACIFIC 5 41 GRANTS & PROGRAM SERVICES SEE PART V 166183 EUROPE 11 82 GRANTS & PROGRAM SERVICES SEE PART V 484751 MIDDLE EAST 0 0 PROGRAM SERVICES SEE PART V 107953 16 123 0 0 16 123 758887 0 758887 EUROPE YOUTH PROGRAM SUPPORT 12086 CHECK 1 EDUCATION GRANTS FOR COLLEGE COURSES EAST ASIA AND THE PACIFIC 53 92628 CHECK EDUCATION GRANTS FOR COLLEGE COURSES EUROPE 136 268118 CHECK EMERGENCY FINANCIAL ASSISTANCE EAST ASIA AND THE PACIFIC 2 900 CHECK EMERGENCY FINANCIAL ASSISTANCE EUROPE 17 23582 CHECK CAR MAINTENANCE EAST ASIA AND THE PACIFIC 173 5335 OIL CHANGE COUPON COST CAR MAINTENANCE EUROPE 599 35925 OIL CHANGE COUPON COST AF BASE CHILDCARE SERVICES EAST ASIA AND THE PACIFIC 44667 CHILDCARE PROVIDED COST AF BASE CHILDCARE SERVICES EUROPE 84464 CHILDCARE PROVIDED COST AF BASE EDUCATION PROGRAMS EAST ASIA AND THE PACIFIC 270 8212 CLASSES PROVIDED COST AF BASE EDUCATION PROGRAMS EUROPE 571 31408 CLASSES PROVIDED COST BUNDLES FOR BABIES EAST ASIA AND THE PACIFIC 261 12099 TOTE BAG OF BABY GEAR COST BUNDLES FOR BABIES EUROPE 466 24526 TOTE BAG OF BABY GEAR COST PHONE CARDS FOR DEPLOYED AIRMEN MIDDLE EAST 20391 107953 PREPAID PHONE CARDS COST 1 0 0 0 0 0 PART I, LINE 2: THE SOCIETY PROVIDES EDUCATIONAL GRANTS AND EMERGENCY FINANCIAL ASSISTANCE GRANTS TO AIR FORCE FAMILIES STATIONED AT BASES LOCATED OUTSIDE THE UNITED STATES. THESE PROGRAMS ARE ADMINISTERED BY THE AF SUPPORT STAFF AT THE BASE LEVEL. RECIPIENTS OF THE EDUCATION GRANTS MUST SUBMIT AN INVOICE OR FINANCIAL STATEMENT FROM THE SCHOOL TO VERIFY THEIR ATTENDANCE AT THE INSTITUTION. EDUCATION GRANT PAYMENTS ARE MADE DIRECTLY TO THE SCHOOL. THE EMERGENCY FINANCIAL ASSISTANCE GRANTS ARE ISSUED ON A CASE-BY-CASE BASIS BASED ON THE ADEQUATE DOCUMENTATION OF THE FINANCIAL NEED SUBMITTED BY THE AF MEMBER. ALL ASSISTANCE PROVIDED THROUGH THE SOCIETY'S PROGRAMS ARE TRACKED THROUGH THE SOCIETY'S DATABASE SYSTEM TO PROVIDE A HISTORICAL RECORD OF THE ASSISANCE PROVIDED. PART III, COL (C): NO ESTIMATES ARE MADE FOR THE NUMBER OF AIRMEN PARTICIPATING IN THE BASE CHILDCARE PROGRAMS IN EAST ASIA AND THE PACIFIC AND EUROPE. PART 1, LINE 3, COLUMN (E) EAST ASIA AND THE PACIFIC - IN ADDITION TO EDUCATION AND EMERGENCY GRANTS, SEVERAL OF THE SOCIETY'S COMMUNITY/BASE ENHANCEMENT PROGRAMS WERE ALSO AVAILABLE AT OVERSEAS USAF BASES IN ASIA. THE PROGRAMS ACTIVE AT THESE BASES DURING 2013 INCLUDED THE CAR CARE, CHILDCARE, SPOUSE EDUCATION, AND BUNDLES FOR BABIES PROGRAMS. PART 1, LINE 3, COLUMN (E) EUROPE - IN ADDITION TO EDUCATION AND EMERGENCY GRANTS, SEVERAL OF THE SOCIETY'S COMMUNITY/BASE ENHANCEMENT PROGRAMS WERE ALSO AVAILABLE AT OVERSEAS USAF BASES IN EUROPE. THE PROGRAMS ACTIVE AT THESE BASES DURING 2013 INCLUDED THE CAR CARE, CHILDCARE, SPOUSE EDUCATION, AND BUNDLES FOR BABIES PROGRAMS. PART 1, LINE 3, COLUMN (E) MIDDLE EAST - THE SOCIETY PROVIDED CALLING CARDS TO THE AIRMEN DEPLOYED IN IRAQ AND AFGHANISTAN AS PART OF THE PHONE HOME PROGRAM IN 2013. CHARITY BALL 1043119 856006 187113 6915 73080 477 245626 1043119 856006 187113 6915 73080 477 245626 326098 -138985 1 0 0 EDUCATION GRANTS FOR COLLEGE 2649 5379213 EMERGENCY FINANCIAL ASSISTANCE 538 638651 AF BASE CHILDCARE SERVICES 697678 COST CHILDCARE SERVICES PROVIDED AF BASE EDUCATION PROGRAMS 3482 193740 COST CLASSES PROVIDED ON BASE BUNDLES FOR BABIES SEMINAR 3343 172574 COST TOTE BAG OF BABY GEAR CAR MAINTENANCE PROGRAM ASSISTANCE 3372 102886 COST OIL CHANGE COUPON PHONECARDS PROVIDED TO DEPLOYED AIRMEN 67 355 COST PREPAID PHONE CARDS PART I, LINE 2: THE SOCIETY PROVIDES EDUCATION GRANTS AND EMERGENCY FINANCIAL ASSISTANCE GRANTS TO AIR FORCE FAMILIES STATIONED AT ALL AF BASES LOCATED WITHIN THE US. THESE PROGRAMS ARE ADMINISTERED BY THE AF SUPPORT STAFF AT THE BASE LEVEL. RECIPIENTS OF THE EDUCATION GRANTS MUST SUBMIT AN INVOICE OR FINANCIAL STATEMENT FROM THE SCHOOL TO VERIFY THEIR ATTENDANCE. EDUCATION GRANT PAYMENTS ARE MADE DIRECTLY TO THE SCHOOL. THE EMERGENCY FINANCIAL ASSISTANCE GRANTS ARE ISSUED ON A CASE-BY-CASE BASIS BASED ON THE ADEQUATE DOCUMENTATION OF THE FINANCIAL NEED SUBMITTED BY THE AF MEMBER. ALL ASSISTANCE PROVIDED THROUGH THE SOCIETY'S PROGRAMS IS TRACKED THROUGH THE SOCIETY'S DATABASE SYSTEM TO PROVIDE A HISTORICAL RECORD OF THE ASSISTANCE PROVIDED. X 1 1 X X X X 0 0 0 0 0 0 0 0 0 LTGEN JOHN D HOPPER JR RET CHIEF EXECUTIVE OFFICER 189318 0 12000 0 4646 0 18119 0 33765 0 257848 0 0 0 COL SIDNEY R HEETLAND RET CHIEF FINANCIAL OFFICER 141143 0 9000 0 2688 0 13513 0 34318 0 200662 0 0 0 COL LINDA F EGENTOWICH RET CHIEF OPERATIONS OFFICER 139077 0 9000 0 3280 0 13327 0 29979 0 194663 0 0 0 PART I, LINE 1A THE SOCIETY OFFERS A TAXABLE REIMBURSEMENT PROGRAM FOR ALL EMPLOYEES OF UP TO $650 PER YEAR TO COVER THE COST OF HEALTH CLUB DUES OR OTHER FITNESS ACTIVITIES. PART I, LINE 3 THE SOCIETY'S COMPENSATION COMMITTEE IS CHARGED BY THE BOARD OF TRUSTEES TO SET COMPENSATION FOR THE CEO. EACH YEAR STAFF PROVIDES THE COMMMITTEE WITH SALARY SURVEYS AND OTHER COMPARATIVE SALARY DATA TO HELP THE COMMITTEE FORMULATE A COMPENSATION PACKAGE FOR THE CEO. THE COMPENSATION COMMITTEE APPROVES THE FULL COMPENSATION PACKAGE FOR THE CEO ON AN ANNUAL BASIS, DOCUMENTING THE DECISION WITH A REBUTTABLE PRESUMPTION FORM THAT IS SIGNED BY THE SOCIETY'S PRESIDENT, WHO IS ALSO THE CHAIR OF THE COMPENSATION COMMITTEE. X 2 94337 AVG HIGH/LOW PRICE X AUCTION ITEMS 307 134944 FAIR VALUE 0 0 1 1 PART I, LINE 32B: (1) THE SOCIETY MAINTAINS A POLICY OF SELLING ALL DONATED SECURITIES UPON RECEIPT. THE SECURITIES ARE TRANSFERRED, GENERALLY BY THE DONOR, DIRECTLY TO A CUSTODY ACCOUNT WITHIN THE SOCIETY'S INVESTMENT PORTFOLIO. THE INVESTMENT CUSTODIAN/BROKER IS DIRECTED TO SELL THE DONATED SECURITIES. ONCE THE SALE OF THE DONATED SECURITIES IS SETTLED, THE FUNDS RAISED ARE MADE AVAILABLE FOR USE ON THE SOCIETY'S PROGRAMS. (2) AN AIR FORCE SPOUSES' CLUB HELPS RUN THE SILENT AUCTION HELD IN CONJUNCTION WITH THE ANNUAL USAF CHARITY BALL. THE CLUB SOLICITS IN-KIND DONATIONS ON BEHALF OF THE SOCIETY AND FACILITATES THE SALE OF THE DONATED ITEMS AT THE EVENT. FORM 990, PART VI, SECTION A, LINE 2 THE FOLLOWING BOARD OF TRUSTEES MEMBERS ARE HUSBAND AND WIFE: GEN MARK A WELSH, III AND MRS BETTY WELSH CMSAF JAMES A CODY AND MRS ATHENA CODY FORM 990, PART VI, SECTION B, LINE 11 THE SOCIETY'S 990 IS PREPARED INTERNALLY BY THE ACCOUNTING STAFF. THE FILING IS THEN REVIEWED BY THE SOCIETY'S CFO AND OTHER OFFICERS. FOLLOWING THIS INTERNAL REVIEW, THE 990 IS SENT TO AN OUTSIDE ACCOUNTING FIRM FOR AN INDEPENDENT REVIEW. PRIOR TO FILING THE 990 WITH THE IRS, THE SOCIETY MAKES THE DRAFT FILING AVAILABLE TO THE FULL BOARD OF TRUSTEES VIA E-MAIL. ONCE THE FULL REVIEW PROCESS IS COMPLETE, THE 990 IS FILED ELECTRONICALLY WITH THE IRS, AND THE PUBLIC VERSION OF THE FILING IS POSTED ON THE SOCIETY'S WEBSITE. FORM 990, PART VI, SECTION B, LINE 12C THE SOCIETY REQUIRES ITS OFFICERS, STAFF MEMBERS, AND ALL MEMBERS OF THE BOARD OF TRUSTEES TO DISCLOSE POTENTIAL CONFLICTS OF INTEREST ON AN ANNUAL BASIS. THE STATEMENTS SUBMITTED BY EACH PERSON ARE REVIEWED BY STAFF AND REPORTED TO THE AUDIT COMMITTEE. IF ANY CONFLICTS ARE DETERMINED TO EXIST, THE AUDIT COMMITTEE WOULD DECIDE THE APPROPRIATE ACTION TO BE TAKEN. THE MATTER WOULD THEN BE PRESENTED TO THE FULL BOARD OF TRUSTEES WHERE A VOTE ON THE COMMITTEE'S RECOMMENDATION WOULD BE TAKEN. FORM 990, PART VI, SECTION B, LINE 15 THE DETERMINATION OF THE EXECUTIVE COMPENSATION IS HANDLED BY THE BOARD-APPOINTED COMPENSATION COMMITTEE. THIS COMMITTEE IS RESPONSIBLE FOR PREPARING AND REVIEWING THE CEO'S COMPENSATION ON AN ANNUAL BASIS. THE REVIEW OF OFFICER COMPENSATION INCLUDES COMPARISONS WITH SIMILAR MILITARY RELIEF ORGANIZATIONS, OTHER NON-PROFIT ORGANIZATIONS, AND SALARY GUIDE SURVEYS. THE COMPENSATION COMMITTEE ALSO REVIEWS THE SALARY LEVELS AND PROPOSED BONUSES OF THE OTHER OFFICERS AND THE FULL STAFF. FORM 990, PART VI, SECTION C, LINE 19 THE SOCIETY PROVIDES DIRECT PUBLIC ACCESS TO ITS ANNUAL AUDIT REPORT AND 990 TAX FILING BY MAKING THE DOCUMENTS AVAILABLE ONLINE THROUGH ITS AFAS.ORG WEBSITE. BOARD OF TRUSTEE BY-LAWS, MEETING MINUTES, CONFLICT OF INTEREST POLICY, AND OTHER GOVERNING DOCUMENTS ARE AVAILABLE ONLY ON REQUEST THROUGH THE SOCIETY'S HEADQUARTERS OFFICE. FORM 990, PART XII, LINE 2C: THE AUDIT OVERSIGHT PROCESS HAS REMAINED UNCHANGED FROM THE PREVIOUS YEAR. ARMED FORCES RELIEF TRUST C/O AER 200 STOVALL STREET 5S33 ALEXANDRIA VA 223320600 526468495 SUPPORT MILITARY SOCIETIES VA 501 (C)(3) 509(A)(3) TYPE I N/A 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0