2013-11-06T10:24:47-06:00 2012-12-31 521855942 TATE AND TRYON 2021 L STREET NW SUITE 400 WASHINGTON DC 20036 990 2012-01-01 541797281 AIR FORCE AID SOCIETY INC AIRF 7036073063 241 18TH STREET SOUTH NO 202 ARLINGTON VA 22202 COL SIDNEY R HEETLAND 7036073063 2013-11-06 1 SUBRINA L WOOD P00365899 2022932200 2012 2016-02-25 16:41:14Z JOHN D HOPPER JR 241 18TH STREET SOUTH NO 202 ARLINGTON VA 22202 130015579 0 X WWW.AFAS.ORG X 1942 VA THE AIR FORCE AID SOCIETY, A PRIVATE NON-PROFIT ORGANIZATION, SUPPORTS THE MISSION OF THE UNITED STATES AIR FORCE BY RELIEVING FINANCIAL DISTRESS OF AIR FORCE MEMBERS AND THEIR FAMILIES, ASSISTING WITH EDUCATION GOALS AND IMPROVING QUALITY OF LIFE THROUGH PROACTIVE COMMUNITY/BASE PROGRAMS. 20 20 26 0 0 0 6249207 6685304 0 8740 10073720 14204867 -70619 -49667 16252308 20849244 8890335 8031711 0 0 2732322 2780516 0 0 456308 1736004 1777048 13358661 12589275 2893647 8259969 153781514 166519300 1356537 1403549 152424977 165115751 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 2012, THE SOCIETY PROVIDED OVER $17.8 MILLION IN DIRECT SUPPORT TO AIRMEN. 0 0 6213278 5437488 EDUCATION ASSISTANCE - THE SOCIETY PROVIDES EDUCATION GRANTS THROUGH TWO MAIN PROGRAMS: THE HAP ARNOLD EDUCATION GRANT PROGRAM AND THE SPOUSE TUITION ASSISTANCE PROGRAM (STAP). THE HAP ARNOLD GRANT PROGRAM PROVIDES EDUCATION GRANTS TO CHILDREN AND SPOUSES OF ACTIVE DUTY, RETIRED AND DECEASED SERVICE MEMBERS, HELPING THEM REALIZE THEIR EDUCATION GOALS. THESE GRANTS ARE NEEDS-BASED AND STIPULATED FOR USE ON DIRECT EDUCATION EXPENSES ONLY. THE SOCIETY AWARDED ALMOST $5.6 MILLION IN $2,000 GRANTS, HELPING 2,787 STUDENTS PAY FOR COLLEGE. AN ADDITIONAL $50K IN MERIT BASED SCHOLARSHIPS WERE AWARDED TO 10 STUDENTS. THE STAP PROGRAM PROVIDED ASSISTANCE TO SPOUSES OF ACTIVE DUTY AIR FORCE MEMBERS WHO ACCOMPANIED THE MEMBER ON OVERSEAS ASSIGNMENTS. THE FOCUS OF THE STAP PROGRAM IS THE COMPLETION OF A DEGREE OR CERTIFICATION PROGRAM THAT WILL PROVIDE INCREASEDOCCUPATIONAL OPPORTUNITY FOR THE SPOUSE, PROVIDING UP TO $1,500 ANNUALLY TOWARDS TUITION COSTS. IN 2012, THE PROGRAM HELPED 488 SPOUSES BY PROVIDING $220,000 IN TUITION SUPPORT. EFFECTIVE JULY 2012, THE STAP PROGRAM WAS TERMINATED DUE TO LACK OF ADMINISTRATIVE SUPPORT AT OVERSEAS BASES AND A DECLINE IN SUPPORT PROVIDED DUE TO THE INCREASED EDCUATIONAL OPPORTUNITIES OFFERED DIRECTLY BY THE AIR FORCE. THE SOCIETY ALSO PROVIDED $202,000 IN SUPPLEMENTAL EDUCATION LOANS TO 181 AIR FORCE FAMILIES TO HELP FUND ADDITIONAL INCIDENTAL COLLEGE EXPENSES. 2163515 1851598 COMMUNITY ENHANCEMENT PROGRAMS - THESE PROGRAMS PROVIDED FUNDS IN AN EFFORT TO HELP IMPROVE THE QUALITY OF LIFE OF US AIR FORCE MEMBERS AND THEIR FAMILIES. IN 2012, THE SOCIETY PROVIDED $971,000 IN CHILDCARE SERVICES TO AF FAMILIES. ALMOST 28,000 DEPLOYED AIRMEN WERE GIVEN PREPAID CALLING CARDS AT A COST OF $198,000 THROUGH THE PHONE HOME PROGRAM, HELPING THEM MAINTAIN CONTACT WITH FAMILY MEMBERS BACK HOME. $234,000 WAS SPENT ON THE BUNDLES FOR BABIES PROGRAM WHICH PROVIDES IMPORTANT INFORMATION TO EXPECTING AIR FORCE PARENTS REGARDING AVAILABLE ON BASE AND COMMUNITY ASSISTANCE PROGRAMS AS WELL AS A DISCUSSION ON THE ADDED FINANCIAL IMPACT THE NEW ADDITION TO THE FAMILY WILL HAVE. EACH FAMILY RECEIVED A TOTE BAG OF BABY-RELATED GEAR FOR ATTENDING THE CLASS. THE SOCIETY SPENT $142,000 ON THE CAR CARE PROGRAM, HELPING OVER 4,000 AF MEMBERS KEEP THEIR PRIMARY AUTOMOBILE IN GOOD RUNNING ORDER WITH OIL CHANGES AND INSPECTIONS. OTHER BASE PROGRAMS SUPPORTED BY THE SOCIETY IN 2012 INCLUDED THE YOUTH EMPLOYMENT SKILLS PROGRAM, SPOUSE ORIENTATION AND EMPLOYABILITY PROGRAMS, AND THE SPECIAL NEEDS INITIATIVE THAT HELPED FUND SPECIAL BASE EVENTS FOR FAMILIES WITH SPECIAL NEEDS CHILDREN. 2119489 742625 8740 EMERGENCY ASSISTANCE (EA) - THE EA PROGRAM IS PRIORITY NUMBER ONE FOR THE SOCIETY. THIS PROGRAM AIMS TO HELP RELIEVE THE FINANCIAL PRESSURE 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 THROUGH EITHER A GRANT OR INTEREST-FREE LOAN. EMERGENCY ASSISTANCE IS GENERALLY PROVIDED FOR BASIC LIVING EXPENSES, EMERGENCY TRAVEL, VEHICLE REPAIRS, FUNERAL COSTS, MEDICAL/DENTAL COSTS, CHILD/RESPITE CARE, AND MOVING EXPENSES. THE ON-BASE AF PERSONNEL WHO ADMINISTER THE PROGRAM CAN ALSO ASSIST THE AF MEMBER WITH FAMILY BUDGETS TO HELP THEM REMAIN FINANCIALLY SOUND AFTER THE ASSISTANCE IS PROVIDED. IN 2012, THE SOCIETY PROVIDED $10.1 MILLION IN EMERGENCY ASSISTANCE, HELPING OVER 20,000 AIRMEN AND THEIR FAMILIES. THIS SUPPORT WAS PROVIDED THROUGH $742,625 IN GRANTS AND $9.4 MILLION IN INTEREST-FREE LOANS. 10496282 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 0 0 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 5 0 1 26 1 0 0 0 0 0 1 1 1 0 0 0 X 20 20 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 AFAS CONTROLLER 7036073063 241 18TH STREET SOUTH STE 202 ARLINGTON VA 222023409 DR FRANK J MCKEOWN 2.00 0.00 X X 0 0 0 HONORABLE WILLIAM A MOORMAN 2.00 0.00 X X 0 0 0 MAJ GEN EDWARD L BOLTON 1.00 0.00 X 0 0 0 HON MICHAEL B DONLEY 1.00 0.00 X 0 0 0 MAJ GEN ALFRED K FLOWERS RET 1.00 0.00 X 0 0 0 CMSGT DENNIS L FRITZ RET 1.00 0.00 X 0 0 0 LT GEN C BRUCE GREEN 1.00 0.00 X 0 0 0 LT GEN RICHARD C HARDING 1.00 0.00 X 0 0 0 DR WILLIAM W JENNINGS 2.00 0.00 X 0 0 0 LT GEN DARRELL D JONES 1.00 0.00 X 0 0 0 MRS ELLEN JUMPER 1.00 0.00 X 0 0 0 DR JERROLD IW MITCHELL 1.00 0.00 X 0 0 0 MAJ GEN SUSAN PAMERLEAU RET 1.00 0.00 X 0 0 0 HON F WHITTEN PETERS 1.00 0.00 X 0 0 0 MR JAMES C REAGAN 1.00 0.00 X 0 0 0 CMSAF JAMES A ROY 1.00 0.00 X 0 0 0 MRS PAULA D ROY 1.00 0.00 X 0 0 0 GEN NORTON A SCHWARTZ 1.00 0.00 X 0 0 0 MRS SUZIE SCHWARTZ 1.00 0.00 X 0 0 0 HON EUGENE R SULLIVAN 1.00 0.00 X 0 0 0 LT GEN JOHN D HOPPERJR RET 40.00 0.00 X 200065 0 51856 COL SIDNEY R HEETLAND RET 40.00 0.00 X 146663 0 48067 COL LINDA F EGENTOWICH RET 40.00 0.00 X 146557 0 44072 MRS DEBRA VOSBURG 40.00 0.00 X 106176 0 40511 599461 0 184506 4 0 1 0 ACT INC 500 ACT DRIVE PO BOX 168 IOWA CITY IA 52243 ED GRANT PROGRAM ADMIN 334845 NORTHERN TRUST 50 LASALLE ST M-15 CHICAGO IL 60603 INVESTMENT MANAGEMENT 220301 BAM TECHNOLOGIES 2001 JEFFERSON DAVIS HWY STE 610 ARLINGTON VA 22202 IT SOFTWARE DEVELOPMENT 206719 MELLEN & COMPANY 9538 BAYFRONT DR NORFOLK VA 23518 IT SOFTWARE DEVELOPMENT 131213 4 4859 776530 33929 278401 5591585 399704 6685304 REPAYMENTS ON LOAN WRI 900099 8740 8740 8740 3943383 3943383 119096632 108835148 10261484 10261484 10261484 210459 776530 331187 -120728 -120728 MISCELLANEOUS 900099 52054 50000 2054 CLASS ACTION SETTLEMENTS 900099 19007 19007 71061 20849244 58740 0 14105200 70651 70651 7270770 7270770 690290 690290 637280 366436 200106 70738 1320596 759343 414667 146586 121494 69859 38149 13486 572462 329166 179753 63543 128684 73993 40407 14284 643 370 202 71 43933 43933 367015 367015 89794 51631 28196 9967 125923 72102 40022 13799 128153 73687 40241 14225 260590 149839 81826 28925 14563 8374 4572 1617 4262 4262 212543 122212 66739 23592 34601 19896 10864 3841 EDUCATION GRANT ADMINIS 334845 334845 POST RETIREMENT BENEFIT 61671 61671 OTHER FUNDRAISING COSTS 46663 46663 51849 32818 14060 4971 12589275 10496282 1636685 456308 1880131 1605862 905426 1490777 27311 48223 79230 5495958 5765851 40665 41790 1836536 1395568 469187 440968 139628892 145929829 4947916 10649120 386028 467650 153781514 166519300 231421 212851 1125116 1190698 1356537 1403549 X 150641362 163136130 33811 229817 1749804 1749804 152424977 165115751 153781514 166519300 8259969 4430805 0 X X 0 1 X 1 0 X 7162701 5961902 6238913 5973009 6406903 31743428 280230 243426 250450 276198 278401 1328705 7442931 6205328 6489363 6249207 6685304 33072133 33072133 5362248 4204336 3855274 3849251 3943383 21214492 104517 141216 166813 142874 231520 786940 55073565 100989 0.60050 0.59440 X SCH A. PART II LINE 10 - OTHER INCOME INCLUDES TWO MAIN ITEMS: (1) THE SOCIETY RECEIVES INCOME FROM THE SETTLEMENT OF CLASS ACTION LAWSUITS RELATING TO COMPANIES IN WHICH THE SOCIETY HELD AN INVESTMENT WITHIN ITS INVESTMENT PORTFOLIO. (2) GROSS EVENT REVENUE FROM THE ANNUAL USAF CHARITY BALL, WHICH WAS HELD ON MARCH 24, 2012 THIS YEAR. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1749804 203431 -203431 1749804 1724804 26218 -1218 1749804 1624804 100000 196236 -196236 1724804 1549804 75000 280603 -280603 1624804 1522804 543509 -516509 1549804 1.00000 0 0 219921 201897 18024 476169 394632 81537 1140446 799039 341407 440968 HEDGE FUNDS 9974597 F PRIVATE EQUITY FUND 674523 F 10649120 OTHER LIABILITIES 35557 ACCRUED COMPENSATION 240953 ACCRUED YES LIABILITY 264464 POST RETIREMENT LIABILITY 466368 DEFERRED 2013 CHARITY BALL INCOME 142373 ACCRUED MEDICAL INSURANCE CLAIMS 40983 1190698 X 25131028 4430805 4430805 20700223 367015 -217994 149021 20849244 12440254 217994 217994 12222260 367015 367015 12589275 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE SOCIETY'S EDUCATION GRANT ENDOWMENT CONSISTS OF DONOR-RESTRICTED CONTRIBUTIONS INVESTED TO PROVIDE FUTURE EARNINGS TO FUND NAMED EDUCATION GRANTS, AS DESIGNATED BY THE DONOR, AS PART OF THE SOCIETY'S GENERAL HENRY H ARNOLD EDUCATION PROGRAM. ALL RETURNS GENERATED BY THE EDUCATION FUND ARE USED TO FUND THE NAMED GRANTS ON AN ANNUAL BASIS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: 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. THEREFORE, MANAGEMENT HAS NOT IDENTIFIED ANY UNCERTAIN INCOME TAX POSITIONS. GENERALLY, INCOME TAX RETURNS RELATED TO THE YEARS ENDED DECEMBER 31, 2009 THROUGH 2012 REMAIN OPEN FOR EXAMINATION BY TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: CHARITY BALL EVENT EXPENSES PART XII, LINE 2D - OTHER ADJUSTMENTS: CHARITY BALL EVENT EXPENSES PART XII, LINE 4B - CHARITY BALL EVENT EXPENSES - $217,994 THIS $217,994 IS THE DIRECT COST OF THE SOCIETY'S USAF CHARITY BALL FUND-RAISING EVENT HELD IN 2012. THE 990 REQUIRES THE COSTS TO BE NETTED AGAINST THE EVENT EARNINGS IN THE STATEMENT OF REVENUES IN PART VIII, LINE 8B. THE SOCIETY BOOKS THESE DIRECT COSTS OF THE EVENT AS FUND-RAISING EXPENSES IN THE STATEMENT OF ACTIVITIES, AS REFLECTED IN THE 2012 AUDIT REPORT. THIS COST INCLUDES FOOD AND BEVERAGES, RENTAL SPACE, ENTERTAINMENT, EVENT MANAGEMENT, AND OTHER DIRECT COSTS ASSOCIATED WITH THE EVENT. PART XIII, LINE 2D - THIS IS THE $217,994 DIRECT COST OF THE SOCIETY'S USAF CHARITY BALL FUND-RAISING EVENT. SEE THE NOTE ABOVE FOR PART XII, LINE 4B FOR FURTHER EXPLANATION. 1 EAST ASIA AND THE PACIFIC 5 38 GRANTS 36977 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES SEE PART V 95996 EUROPE 11 75 GRANTS 162352 EUROPE 0 0 PROGRAM SERVICES SEE PART V 198699 MIDDLE EAST 0 0 PROGRAM SERVICES PHONE CARDS 196266 16 113 0 0 16 113 690290 0 690290 EUROPE YOUTH PROGRAM SUPPORT 8135 CHECK 1 1 EDUCATION GRANTS FOR COLLEGE COURSES EAST ASIA AND THE PACIFIC 78 36977 CHECK EDUCATION GRANTS FOR COLLEGE COURSES EUROPE 346 162352 CHECK EMERGENCY FINANCIAL ASSISTANCE EAST ASIA AND THE PACIFIC 3 455 CHECK EMERGENCY FINANCIAL ASSISTANCE EUROPE 14 9539 CHECK CAR MAINTENANCE EAST ASIA AND THE PACIFIC 210 6599 OIL SERVICE COUPON COST CAR MAINTENANCE EUROPE 511 27839 OIL SERVICE COUPON COST AF BASE CHILDCARE SERVICES EAST ASIA AND THE PACIFIC 58039 CHILDCARE PROVIDED COST AF BASE CHILDCARE SERVICES EUROPE 102929 CHILDCARE PROVIDED COST AF BASE EDUCATION PROGRAMS EAST ASIA AND THE PACIFIC 126 8375 CLASSES PROVIDED COST AF BASE EDUCATION PROGRAMS EUROPE 715 17158 CLASSES PROVIDED COST BUNDLES FOR BABIES EAST ASIA AND THE PACIFIC 310 20481 TOTE BAG OF BABY GEAR COST BUNDLES FOR BABIES EUROPE 549 28098 TOTE BAG OF BABY GEAR COST PHONE CARDS FOR DEPLOYED AIRMEN EAST ASIA AND THE PACIFIC 18 128 PREPAID PHONE CARDS COST PHONE CARDS FOR DEPLOYED AIRMEN MIDDLE EAST 27515 196266 PREPAID PHONE CARDS COST 0 0 0 0 0 0 PROCEDURE FOR MONITORING GRANTS OUTSIDE THE U.S.: SCHEDULE F, PART I, LINE 2: THE SOCIETY PROVIDES EDUCATION GRANTS TO AIR FORCE FAMILIES STATIONED OUTSIDE OF THE UNITED STATES THROUGH THE SPOUSE TUITION ASSISTANCE (STAP) AND THE YOUTH EMPLOYMENT SKILLS PROGRAMS (YES). THESE GRANTS ARE TRACKED IN PROPRIETARY DATABASE SYSTEMS EMPLOYED AT THE AFAS HEADQUARTERS OFFICE. THESE PROGRAMS ARE ADMINISTERED BY PERSONNEL EMPLOYED AT OVERSEAS BASES. STUDENTS THAT ARE APPROVED FOR AN EDUCATION GRANT MUST SUBMIT AN INVOICE OR FINANCIAL STATEMENT FROM THE SCHOOL TO VERIFY THEIR ATTENDANCE AT THE INSTITUTION. ALL GRANTS CHECKS ARE ISSUED DIRECTLY TO THE SCHOOL WITH AN EXPLANATION THAT THE FUNDS ARE TO BE USED ONLY TOWARDS TUITION, BOOKS, AND RELATED FEES AS SUBSTANTIATED ON THE INVOICE OR FINANCIAL STATEMENT. EMERGENCY ASSISTANCE GRANTS ARE ALSO ISSUED IN SUPPORT OF AIR FORCE MEMBERS BASED ON THE RECEIPT OF ADEQUATE DOCUMENTATION OF FINANCIAL NEED. THESE GRANTS ARE ALSO TRACKED THROUGH THE SOCIETY'S DATABASE SYSTEM TO PROVIDE A HISTORICAL RECORD OF THE ASSISTANCE PROVIDED. EXPLANATION FOR ESTIMATED NUMBER OF RECIPIENTS: SCHEDULE F, PART III, COL (C): THERE ARE NO ESTIMATES OF THE NUMBERS OF RECIPIENTS FOR THE BASE CHILDCARE PROGRAMS IN EAST ASIA, THE PACIFIC AND EUROPE. CHARITY BALL 986989 776530 210459 2205 75974 705 252303 986989 776530 210459 2205 75974 705 252303 331187 -120728 1 HOLLOMAN AFB 49 FORCE SUPPORT SQUADRON 596 4TH ST HOLLOMAN AFB NM 88330 25000 SUPPORT THE HOLLOMAN OUTDOOR WINGMAN RESILIENCY INITIATIVE 1 0 EDUCATION GRANTS FOR COLLEGE 2963 5238159 EMERGENCY FINANCIAL ASSISTANCE 1322 732631 AF BASE CHILDCARE SERVICES 810123 COST CHILDCARE SERVICES PROVIDED AF BASE EDUCATION PROGRAMS 3830 192603 COST CLASSES PROVIDED ON BASE BUNDLES FOR BABIES SEMINAR 3460 185666 COST TOTE BAG OF BABY GEAR CAR MAINTENANCE PROGRAM ASSISTANCE 3306 107604 COST OIL CHANGE COUPON PHONECARDS PROVIDED TO DEPLOYED AIRMEN 274 1994 COST PREPAID PHONE CARDS AF SURVIVOR BENEFITS REVIEW PROGRAM 2 1990 COST LIFETIME MEMBERSHIP IN PROGRAM TO TRACK THE CHANGING SURVIVOR BENEFITS OF DECEASED AF SERVICE MEMBERS PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE SOCIETY PROVIDES BOTH EMERGENCY FINANCIAL ASSISTANCE GRANTS AND EDUCATION GRANTS IN SUPPORT OF US AIR FORCE MEMBERS AND THEIR FAMILIES. THE SOCEITY MAINTAINS A DATABASE OF FINANCIAL ASSISTANCE PROVIDED TO INCLUDE CASEWORK DOCUMENTATION TO SUPPORT THE DECISION FOR ISSUING A GRANT VERSUS AN INTEREST-FREE LOAN. THE EDCUATION GRANTS ARE ALSO TRACKED AT THE INDIVIDUAL LEVEL IN THE SOCIETY'S DATABASE WITH THE SUPPORT OF THE THIRD-PARTY ADMINISTER OF THE PROGRAM. EDUCATION GRANTS ARE PAID DIRECTLY TO THE SCHOOL AND THE STUDENTS MUST PROVIDE DOCUMENTATION OF THEIR ENROLLMENT AT AN APPROVED SCHOOL. X 1 1 X X X X 0 0 0 0 0 0 0 0 0 LT GEN JOHN D HOPPERJR RET 186153 0 9000 0 4912 0 17564 0 34292 0 251921 0 0 0 COL SIDNEY R HEETLAND RET 137498 0 7200 0 1965 0 13023 0 35044 0 194730 0 0 0 COL LINDA F EGENTOWICH RET 136752 0 7200 0 2605 0 12956 0 31116 0 190629 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. SUPPLEMENTAL INFORMATION PART III 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 COMMITTEE 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 DECSION WITH A REBUTTIBLE PRESUMPTION DOCUMENT SIGNED BY THE PRESIDENT AND CHAIR OF THE COMPENSATION COMMITTEE. X 2 6861 AVG HIGH/LOW PRICE X OFFICE LEASE 1 269721 LEASE AGREEMENT X AUCTION ITEMS 278 113193 FAIR VALUE X COMPUTERS/SOFTWARE 8 9889 FAIR VALUE X PHONE CARD 1 40 FAIR VALUE 0 1 1 THIRD PARTY USE: PART I, LINE 32B: THE SOCIETY USES THIRD PARTY ORGANIZATIONS IN TWO SEPARATE INSTANCES WITH RESPECT TO IN-KIND DONATIONS. UPON THE RECEIPT OF IN-KIND STOCK DONATIONS, THE SOCIETY WILL UTILIZE THE INVESTMENT MANAGEMENT FIRM HIRED TO MANAGE ITS INVESTMENT PORTFOLIO TO SELL THE STOCK SECURITIES RECEIVED AS DONATIONS. THE SOCIETY MAINTAINS A POLICY OF SELLING ALL STOCK AND BOND DONATIONS UPON RECEIPT. ONCE THE SECURITIES ARE SOLD, THE FUNDS ARE MADE AVAILABLE FOR PROGRAM SPENDING. THE SOCIETY ALSO USES A THIRD-PARTY ORGANIZATION (AN AIR FORCE SPOUSE'S CLUB) TO MANAGE A SILENT AUCTION FUND RAISING EVENT HELD IN CONJUNCTION WITH THE ANNUAL USAF CHARITY BALL. THE AIR FORCE SPOUSE'S CLUB SOLICITS ALL ITEMS FOR INCLUSION IN THE SILENT AUCTION PRIOR TO THE EVENT AND THEN SELLS ALL OF THE ITEMS ON THE NIGHT OF THE EVENT. FORM 990, PART VI, SECTION A, LINE 2 BOARD OF TRUSTEES MEMBERS GEN. NORTON A. SCHWARTZ AND MRS. SUZINE SCHWARTZ ARE HUSBAND AND WIFE. BOARD OF TRUSTEES MEMBERS CMSAF JAMES A. ROY AND MRS. PAULA ROY ARE ALSO HUSBAND AND WIFE. 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 ORGNAZATIONS, 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 RELIEF 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