2012-10-19T14:30:11-05:00 2011-12-31 521855942 TATE AND TRYON 2021 L STREET NW SUITE 400 WASHINGTON DC 20036 990 2011-01-01 541797281 AIR FORCE AID SOCIETY INC AIRF 7036073063 241 18TH STREET SOUTH NO 202 ARLINGTON VA 22202 COL SIDNEY R HEETLAND 7036073063 2012-10-19 1 SUBRINA L WOOD P00365899 2022932200 2011 2016-02-24 21:20:13Z JOHN D HOPPER JR 241 18TH STREET SOUTH NO 202 ARLINGTON VA 22202 113565105 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 6489363 6249207 0 0 4572162 10073720 -56990 -70619 11004535 16252308 8281186 8890335 0 0 2769207 2732322 0 0 468497 1630272 1736004 12680665 13358661 -1676130 2893647 160853572 153781514 1424987 1356537 159428585 152424977 X THE SOCIETY ASSISTS U.S. AIR FORCE MEMBERS AND THEIR FAMILIES WITH EMERGENCY ASSISTANCE LOANS AND GRANTS, EDUCATION GRANTS, AND BASE COMMUNITY ENHANCEMENT PROGRAMS. THE SOCIETY PROVIDED OVER $17.5 MILLION IN SUPPORT OF AIR FORCE MEMBERS AND THEIR FAMILIES IN 2011. 0 0 6861043 6063025 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 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 $6.0 MILLION IN $2,000 GRANTS, HELPING 3,000 STUDENTS PAY FOR COLLEGE. AN ADDITIONAL $50K IN MERIT-BASED GRANTS WERE AWARED TO 10 STUDENTS, EACH RECEIVING $5K. THE STAP PROGRAM PROVIDES ASSISTANCE TO SPOUSES OF ACTIVE DUTY SERVICE MEMBERS WHO ACCOMPANY THE MEMBERS ON OVERSEAS ASSIGNMENTS. THE FOCUS OF THE STAP PROGRAM IS THE COMPLETION OF A DEGREE OR CERTIFICATION PROGRAM THAT WILL PROVIDE INCREASED OCCUPATIONAL OPPORTUNITIES FOR THE SPOUSES BY PROVIDING UP TO $1,500 ANNUALLY TOWARDS TUITION COSTS. IN 2011, THE PROGRAM HELPED 623 SPOUSES BY PROVIDING OVER $273K IN SUPPORT. THE SOCIETY ALSO HELPED 214 FAMILIES WITH A TOTAL OF $214K IN NO-INTEREST SUPPLEMENTAL LOANS TO HELP FUND OTHER INCIDENTAL COLLEGE EXPENSES. 2421306 2165691 COMMUNITY ENHANCEMENT PROGRAMS - THESE PROGRAMS PROVIDE FUNDS IN AN EFFORT TO HELP IMPROVE THE QUALITY OF LIFE OF US AIR FORCE MEMBERS AND THEIR FAMILIES. IN 2011, THE SOCIETY PROVIDED ALMOST $1.04 MILLION IN CHILDCARE SERVICES TO AF FAMILIES. OVER 42,000 DEPLOYED AIRMEN WERE GIVEN PREPAID CALLING CARDS AT A TOTAL COST OF $360,000 THROUGH THE PHONE HOME PROGRAM, HELPING THEM MAINTAIN CONTACT WITH FAMILY MEMBERS BACK HOME. $218,000 WAS SPENT ON THE BUNDLES FOR BABIES PROGRAM WHICH PROVIDES IMPORTANT INFORMATION FOR EXPECTING AF PARENTS REGARDING AVAILABLE ON BASE AND COMMUNITY ASSISTANCE PROGRAMS AS WELL AS A DISCUSSION OF THE ADDED FINANCIAL IMPACT THE NEW ADDITION TO THE FAMILY WILL HAVE. EACH FAMILY RECIEVES A TOTE BAG OF BABY-RELATED GOODS FOR ATTENDING THE CLASS. THE SOCIETY SPENT $183,000 ON THE CAR CAR PROGRAM, HELPING AF MEMBERS KEEP THEIR PRIMARY AUTOMOBILE IN GOOD RUNNING ORDER WITH OIL CHANGES AND INSPECTIONS. OTHER BASE PROGRAMS SUPPORTED BY THE SOCIETY INCLUDE THE YOUTH EMPLOYMENT SKILLS PROGRAM, SPOUSE ORIENTATION AND EMPLOYABILITY PROGRAMS,AND THE SPECIAL NEEDS INITIATIVE THAT HELPED FUND BASE EVENTS FOR AF FAMILIES WITH SPECIAL NEEDS CHILDREN. 1985231 661619 EMERGENCY ASSISTANCE - THE EA PROGRAM IS PRIORITY NUMBER ONE FOR THE SOCIETY. THIS PROGRAM AIMS TO 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 AF PERSONNEL WHO ADMINISTER THE PROGRAM CAN ALSO ASSIST THE AF MEMBER WITH FAMILY BUDGETING TO MAKE SURE THEY REMAIN FINANCIALLY SOUND AFTER THE EMERGENCY ASSISTANCE IS PROVIDED. IN 2011, THE SOCIETY PROVIDED $9.0 MILLION IN EMERGENCY ASSISTANCE, HELPING 17,800 AIRMEN AND THEIR FAMILIES. THIS SUPPORT WAS PROVIDED THROUGH ALMOST $662,000 IN GRANTS AND $8.4 MILLION IN INTEREST-FREE LOANS. 11267580 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 1 0 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 0 1 3 0 1 26 1 0 0 0 0 0 1 1 1 17 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 MICK MCKEOWN 1.00 X X 0 0 0 HON WILLIAM A MOORMAN 1.00 X X 0 0 0 MAJ GEN EDWARD L BOLTON 1.00 X 0 0 0 HON MICHAEL B DONLEY 1.00 X 0 0 0 MAJ GEN ALFRED K FLOWERS RET 1.00 X 0 0 0 CMSGT DENNIS L FRITZ RET 1.00 X 0 0 0 LT GEN C BRUCE GREEN 1.00 X 0 0 0 LT GEN RICHARD C HARDING 1.00 X 0 0 0 DR WILLIAM W JENNINGS 1.00 X 0 0 0 LT GEN DARRELL D JONES 1.00 X 0 0 0 MRS ELLEN JUMPER 1.00 X 0 0 0 DR JERROLD IW MITCHELL 1.00 X 0 0 0 MAJ GEN SUSAN PAMERLEAU RET 1.00 X 0 0 0 HON F WHITTEN PETERS 1.00 X 0 0 0 MR JAMES C REAGAN 1.00 X 0 0 0 CMSAF JAMES A ROY 1.00 X 0 0 0 MRS PAULA D ROY 1.00 X 0 0 0 GEN NORTON A SCHWARTZ 1.00 X 0 0 0 MRS SUZIE SCHWARTZ 1.00 X 0 0 0 HON EUGENE R SULLIVAN 1.00 X 0 0 0 LT GEN JOHN D HOPPERJR RET 40.00 X 194143 0 52918 COL SIDNEY R HEETLAND RET 40.00 X 141732 0 44317 COL LINDA F EGENTOWICH RET 40.00 X 138146 0 41493 474021 0 138728 3 0 1 0 ACT INC 500 ACT DRIVE PO BOX 168 IOWA CITY IA 52243 SCHOLARSHIP PROGRAM ADMINISTRATION 323304 NORTHERN TRUST 50 LASALLE ST M-15 CHICAGO IL 60603 INVESTMENT MANAGEMENT 213972 BAM TECHNOLOGIES 2001 JEFFERSON DAVIS HWY STE 610 ARLINGTON VA 22202 IT SOFTWARE DEVELOPMENT 155689 MELLEN & COMPANY 9538 BAYFRONT DR NORFOLK VA 23518 IT SOFTWARE DEVELOPMENT 124438 4 5297 758212 12604 276198 5196896 338209 6249207 3849251 3849251 103323773 97099304 6224469 6224469 6224469 127304 758212 213493 -86189 -86189 COLLECTION - LOANS W/O 900099 8058 8058 CLASS ACTION SETTLEMEN 900099 7512 7512 15570 16252308 8058 0 9995043 48107 48107 7984892 7984892 857336 857336 612749 337012 208335 67402 1323744 728060 450073 145611 122107 67159 41516 13432 546769 300723 185901 60145 126953 69824 43164 13965 28846 15866 9808 3172 51292 51292 268653 268653 57604 31682 19585 6337 108448 62771 34685 10992 199740 110107 67723 21910 257145 141430 87429 28286 25481 14014 8664 2803 11995 8333 3662 172459 94853 58636 18970 36575 20117 12435 4023 EDUCATION GRANT ADMINIS 323304 323304 MISCELLANEOUS 70932 51990 14314 4628 OTHER FUNDRAISING COSTS 66821 66821 POST RETIREMENT BENEFIT 56709 56709 13358661 11267580 1622584 468497 2192256 1880131 905426 30606 27311 6418027 5495958 33187 40665 1633687 1164500 472625 469187 151347815 139628892 4947916 359056 386028 160853572 153781514 257192 231421 1167795 1125116 1424987 1356537 X 157674036 150641362 29745 33811 1724804 1749804 159428585 152424977 160853572 153781514 X 2893647 -9897255 X 0 1 1 X 0 X 6780916 7162701 5961902 6238913 5973009 32117441 233807 280230 243426 250450 276198 1284111 7014723 7442931 6205328 6489363 6249207 33401552 33401552 4916330 5362248 4204336 3855274 3849251 22187439 47316 104517 141216 166813 142874 602736 56191727 58916 0.59440 0.59350 X SCHEDULE A, PART IV, SUPPLEMENTAL INFORMATION: SCH A, PART II, LINE 10 - OTHER INCOME INCLUDES THREE DIFFERENT ITEMS. (1) THE SOCIETY RECEIVES INCOME FROM THE SETTLEMENT OF CLASS ACTION LAWSUITS FROM COMPANIES IN WHICH THE SOCIETY HELD AN INVESTMENT WITHIN ITS INVESTMENT PORTFOLIO. IN 2011, THE SOCIETY RECEIVED $7,512 FROM CLASS ACTION LAWSUIT SETTLEMENTS. (2) THE GROSS EVENT REVENUE COLLECTED FOR THE ANNUAL USAF CHARITY BALL THAT WAS HELD ON APRIL 9, 2011. THIS EVENT RAISED REVENUE OF $127,304 THAT IS CATEGORIZED AS OTHER REVENUE IN SCHEDULE A, PART II, WITH AN ADDITIONAL $758,212 THAT IS RECORDED IN THE DONATIONS LINE AS FUND RAISING EVENT DONATIONS. (3) THE SUBSEQUENT COLLECTION ON EMERGENCY ASSISTANCE LOANS WRITTEN OFF AS UNCOLLECTIBLE. IN 2011, THE SOCIETY RECEIVED $8,058 AS REPAYMENT ON EMERGENCY ASSISTANCE LOANS THAT WERE PREVIOUSLY WRITTEN OFF AS UNCOLLECTIBLE. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1724804 26218 -1218 1724804 1624804 100000 196236 -196236 1724804 1549804 75000 280603 -280603 1624804 1522804 543509 -516509 1549804 1.00000 0 0 219921 175208 44713 1413766 989292 424474 469187 OTHER LIABILITIES 109998 ACCRUED COMPENSATION 221673 ACCRUED YES PROGRAM GRANT LIABILITY 281731 POST RETIREMENT BENEFIT LIABILITY (UNFUNDED) 413669 DEFERRED 2012 CHARITY BALL INCOME 98045 1125116 16252308 13358661 2893647 -9897255 -9897255 -7003608 6240940 -9897255 -9897255 16138195 268653 -154540 114113 16252308 13244548 154540 154540 13090008 268653 268653 13358661 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE SOCIETY'S EDUCATION GRANT ENDOWMENT FUND CONSISTS OF A SINGLE FUND INVESTED TO PROVIDE EARNINGS TO PAY SCHOLARSHIPS UNDER THE GENERAL HENRY H. ARNOLD EDUCATION GRANT PROGRAM. THE FUNDS ARE DONOR-RESTRICTED TO BE HELD IN PERPETUITY TO FUND NAMED EDUCATION GRANTS AS DESIGNATED BY THE DONOR. 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: PART X, LINE 2: FIN 48 FOOTNOTE - THE SOCIETY HAS BEEN RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS A NOT-FOR-PROFIT ORGANIZATION EXEMPT FROM FEDERAL INCOME TAXES ON INCOME OTHER THAN UNRELATED BUSINESS INCOME UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. MANAGEMENT DID NOT IDENTIFY ANY UNCERTAIN TAX POSITIONS. THE SOCIETY BELIEVES IT IS NO LONGER SUBJECT TO US FEDERAL, STATE AND LOCAL INCOME TAX EXAMINATIONS BY TAXING AUTHORITIES FOR THE YEARS BEFORE 2008. PART XII, LINE 4B - CHARITY BALL EVENT EXPENSES - $154,540 THIS $154,540 IS THE DIRECT COST OF THE SOCIETY'S USAF CHARITY BALL FUND-RAISING EVENT HELD IN 2011. THE FORM 990 REQUIRES THESE COSTS TO BE NETTED AGAINST THE EVENT EARNINGS IN THE STATEMENT OF REVENUES IN PART VIII, LINE 8B. THE SOCIETY BOOKS THE DIRECT COSTS OF THE EVENT AS A FUNDRAISING EXPENSE IN THE STATEMENT OF ACTIVITIES, AS REFLECTED IN ITS AUDITED FINANCIAL STATEMENTS. THESE EVENT COSTS INCLUDE FOOD AND BEVERAGE, RENTAL SPACE, ENTERTAINMENT, EVENT MANAGEMENT, AND OTHER DIRECT COSTS ASSOCIATED WITH THE EVENT. PART XIII, LINE 2D - CHARITY BALL EVENT EXPENSES - $154,540 THIS IS THE $154,540 DIRECT COST OF THE SOCIETY'S USAF CHARITY BALL FUND-RASING EVENT. SEE THE NOTE ABOVE FOR PART XII, LINE 4B FOR FURTHER EXPLANATION. 1 EAST ASIA AND THE PACIFIC 0 0 GRANTS 60173 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES SEE PART V 101966 EUROPE 0 0 GRANTS 140878 EUROPE 0 0 PROGRAM SERVICES SEE PART V 197298 MIDDLE EAST 0 0 PROGRAM SERVICES PHONE CARDS 357021 0 0 0 0 0 0 857336 0 857336 EDUCATION GRANTS FOR COLLEGE COURSES EAST ASIA AND THE PACIFIC 143 60173 CHECK EDUCATION GRANTS FOR COLLEGE COURSES EUROPE 343 140878 CHECK EMERGENCY FINANCIAL ASSISTANCE EAST ASIA AND THE PACIFIC 7 3210 CHECK EMERGENCY FINANCIAL ASSISTANCE EUROPE 29 17272 CHECK CAR MAINTENANCE EAST ASIA AND THE PACIFIC 277 8875 CHECK CAR MAINTENANCE EUROPE 838 40614 CHECK BASE CHILDCARE SERVICES EAST ASIA AND THE PACIFIC 58564 CHECK BASE CHILDCARE SERVICES EUROPE 85532 CHECK BASE EDUCATION PROGRAMS EAST ASIA AND THE PACIFIC 207 7196 CHECK BASE EDUCATION PROGRAMS EUROPE 406 14152 CHECK BUNDLES FOR BABIES EAST ASIA AND THE PACIFIC 365 21934 GIFT TOTE BAGS COST BUNDLES FOR BABIES EUROPE 541 34562 GIFT TOTE BAGS COST PHONE CARDS FOR DEPLOYED AIRMEN EUROPE 74 629 PHONE CARDS COST PHONE CARDS FOR DEPLOYED AIRMEN MIDDLE EAST 42030 357021 PHONE CARDS COST 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 THE UNITED STATES THROUGH TWO PROGRAMS: SPOUSE TUITION ASSISTANCE PROGRAM (STAP) AND THE YOUTH EMPLOYMENT SKILLS PROGRAM (YES). ELIGIBILITY FOR THE STAP PROGRAM IS LIMITED TO SPOUSES OF ACTIVE DUTY AIR FORCE MEMBERS WHO ACCOMPANY THE SERVICE MEMBER TO OVERSEAS LOCATIONS, OFFERING UP TO $1,500 IN TUITION ASSISTANCE PER ACADEMIC YEAR. THE YES PROGRAM GIVES HIGH SCHOOL DEPENDENTS OF ACTIVE DUTY AF MEMBERS THE OPPORTUNITY TO EARN UP TO A $1,000 GRANT BY PARTICIPATING IN THE ON-BASE YOUTH VOLUNTEER PROGRAM. THESE TWO PROGRAMS ARE ADMINISTERED BY AIR FORCE PERSONNEL WORKING AT THE OVERSEAS BASES WITH OVERSIGHT BY THE AIR FORCE AID SOCIETY EDUCATION DEPARTMENT. STUDENTS THAT ARE APPROVED FOR A GRANT MUST PROVIDE AN INVOICE OR FINANCIAL STATEMENT FROM THE SCHOOL THAT IDENTIFIES THE STUDENT, CURRICULUM AND COSTS BEFORE ANY GRANTS ARE ISSUED. THE GRANTS CAN ONLY BE USED TOWARDS TUITION, BOOKS AND RELATED FEES AS SUBSTANTIATED BY THE INVOICE OR FINANCIAL STATEMENT SUBMITTED BY THE STUDENT. GRANT CHECKS ARE ISSUED DIRECTLY TO THE SCHOOL WITH A COVER LETTER STATING HOW THE FUNDS SHOULD BE APPLIED TO THE STUDENT'S ACCOUNT. 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 AND THE PACIFIC. PART I, LINE 3 (B) & (E) - THE SOCIETY'S PROGRAMS ARE ADMINISTERED BY US AIR FORCE EMPLOYEES AT BASES IN EAST ASIA AND EUROPE THROUGH THE AIRMAN AND FAMILY READINESS CENTERS AND EDUCATION OFFICES ON BASE. THESE EMPLOYEES ARE PAID WORKERS OF THE US AIR FORCE AND PART OF THEIR REGULAR DUTIES IS TO PROVIDE SUPPORT TO AIRMEN AT THE BASE LEVEL BY ADMINISTERING THE AIR FORCE AID SOCIETY PROGRAMS. PART I, LINE 3(E) - THE PROGRAMS AVAILABLE TO AIRMEN STATIONED AT OVERSEAS AIR FORCE BASES IN EAST ASIA, EUROPE AND THE MIDDLE EAST INCLUDE EMERGENCY FINANCIAL ASSISTANCE, WHICH AIMS TO HELP AIR FORCE MEMBERS IN FINANCIAL TROUBLE PAY FOR HOUSING, FOOD, UTILITIES AND OTHER BASIC NEEDS. OTHER AVAILABLE PROGRAMS INCLUDE CHILD CARE SERVICES, CAR CARE, LOCAL BASE EDUCATION PROGRAMS, BUNDLES FOR BABIES, AND THE PHONE HOME PROGRAM. PART I, LINE 3(E) - THE SOCIETY USES THE ACCRUAL METHOD OF ACCOUNTING. THE PROGRAM EXPENDITURES ARE BASED ON THE COST OF THE BENEFIT PROVIDED. NON-CASH PROGRAMS, SUCH AS THE BUNDLES FOR BABIES AND PHONE HOME CALLING CARD PROGRAM, ARE VALUED BASED ON THE COSTS OF THE ITEMS PURCHASED BY THE SOCIETY AS ASSISTANCE TO AIR FORCE MEMBERS. PART III(C) - THE SOCIETY UTILIZES A PROPRIETARY DATABASE SYSTEM TO TRACK THE ASSISTANCE GIVEN, INCLUDING THE NUMBER OF PEOPLE ASSISTED. THE EXCEPTION IS FOR CHILDCARE SERVICES WHERE NO RECIPIENT DATA IS KEPT NOR ESTIMATED DUE TO THE FACT THESE PROGRAMS ARE PROVIDED TO GROUPS OF PEOPLE AND NOT TIED TO SPECIFIC AF MEMBERS. CHARITY BALL 885516 758212 127304 2205 70433 602 140253 885516 758212 127304 2205 70433 602 140253 213493 -86189 1 X N/A EDUCATION GRANTS FOR COLLEGE COURSES 3304 5904816 EMERGENCY ASSISTANCE FOR FOOD, SHELTER AND UTILITIES 1232 641136 ASSISTANCE WITH CAR REPAIRS AND MAINTENANCE 4130 133040 BASE CHILD CARE SERVICES 892484 BASE EDUCATION PROGRAMS 4161 164399 BUNDLES FOR BABIES SEMINAR 3624 161579 COST GIFT TOTE BAGS OF BABY-RELATED ITEMS PHONE CARDS GIVEN TO DEPLOYED AIR FORCE MEMBERS 337 2863 COST PREPAID PHONE CARDS SURVIVING FAMILY BENEFITS REVIEW PROGRAM 85 84575 COST LIFETIME MEMBERSHIP IN PROGRAM TO TRACK THE CHANGING SURVIVOR BENEFITS FOR FAMILIES 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 EDUCATIONAL GRANTS TO AF MEMBERS AND THEIR FAMILIES STATIONED IN THE UNITED STATES THROUGH THREE PROGRAMS: HAP ARNOLD EDUCATION GRANT PROGRAM, THE SPOUSE TUITION ASSISTANCE PROGRAM (STAP) AND THE YOUTH EMPLOYMENT SKILLS PROGRAM (YES). THE SOCIETY HIRED A THIRD PARTY ORGANIZATION TO ADMINISTER THE HAP ARNOLD GRANT PROGRAM WHICH PROVIDED $6.05 MILLION IN GRANTS DURING 2011. ACT HANDLES THE NEED-BASED ASSESSMENT OF ALL APPLICANTS TO DETERMINE WHICH STUDENTS ARE AWARDED A GRANT. ACT, INC THEN DISBURSES FUNDS DIRECTLY TO THE STUDENT'S SCHOOL WITH A LETTER INDICATING THAT FUNDS ARE FOR FULL-TIME ENROLLMENT IN UNDERGRADUATE STUDIES AND THAT PROCEEDS MAY BE USED ONLY FOR TUITION, FEES, BOOKS, SUPPLIES AND CURRICULUM-REQUIRED MATERIALS ASSOCIATED WITH THE ACADEMIC YEAR FOR WHICH THE FUNDS HAVE BEEN DISBURSED. THE STAP AND YES PROGRAMS ARE ADMINISTERED BY AIR FORCE PERSONNEL WORKING OUT OF THE BASE EDUCATION OFFICES AT BASES PARTICIPATING IN THE PROGRAMS WITH OVERSIGHT BY THE SOCIETY'S EDUCATION STAFF HEADQUARTERED IN ARLINGTON, VIRGINIA. FOR THESE PROGRAMS, STUDENTS MUST PROVIDE INVOICES OR FINANCIAL STATEMENTS FROM THE SCHOOL THAT IDENTIFY THE STUDENT, CURRICULUM AND COSTS BEFORE ANY GRANTS ARE ISSUED. GRANT CHECKS ARE ISSUED DIRECTLY TO THE SCHOOL WITH A COVER LETTER REITERATING HOW THE FUNDS MAY BE APPLIED ON THE STUDENT'S ACCOUNT. X 1 1 X X X X X 0 0 0 0 0 0 0 0 0 LT GEN JOHN D HOPPERJR RET 179685 0 8000 0 6458 0 16892 0 36026 0 247061 0 0 0 COL SIDNEY R HEETLAND RET 133961 0 6000 0 1771 0 12596 0 31721 0 186049 0 0 0 COL LINDA F EGENTOWICH RET 132000 0 4000 0 2146 0 12240 0 29253 0 179639 0 0 0 PART I, LINE 1A THE SOCIETY OFFERS A TAXABLE REIMBURSEMENT TO ALL EMPLOYEES UP TO $650 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. A WRITTEN COMPENSATION AGREEMENT IS EXECUTED EACH YEAR, DOCUMENTING THE COMPENSATION PACKAGE APPROVED BY THE COMPENSATION COMMITTEE. X 1 3057 AVG HIGH/LOW PRICE X OFFICE LEASE 1 259273 LEASE AGREEMENT X AUCTION ITEMS 135 58953 FAIR VALUE/COST X COMPUTER EQUIPMENT 21 16926 FAIR VALUE ESTIMATE 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 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. SUZIE SCHWARTZ ARE 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 REVIEWED INITIALLY BY THE SOCIETY'S CFO AND THEN FORWARDED ON TO THE OTHER OFFICERS FOR THEIR INPUT. FOLLOWING THE INTERNAL REVIEW, THE 990 IS SENT TO AN OUTSIDE ACCOUNTING FIRM FOR AN INDEPENDENT REVIEW. PRIOR TO FILING THE TAX FORMS WITH THE IRS, THE SOCIETY MAKES THE DRAFT FILING AVAILABLE TO THE FULL BOARD OF TRUSTEES VIA AN EMAIL OR THE TRUSTEE PORTAL ON THE AFAS.ORG WEBSITE. ONCE THE 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 IT IS DETERMINED THAT A CONFLICT OR POTENTIAL CONFLICT EXISTS, THE AUDIT COMMITTEE WOULD DETERMINE THE APPROPRIATE ACTION TO BE TAKEN. THE MATTER WOULD THEN BE PRESENTED TO THE FULL BOARD OF TRUSTEES WHERE A VOTE WOULD BE TAKEN ON THE RECOMMENDATION MADE BY THE AUDIT COMMITTEE. FORM 990, PART VI, SECTION B, LINE 15 THE REVIEW OF EXECUTIVE COMPENSATION IS HANDLED BY THE BOARD OF TRUSTEES THROUGH THEIR APPOINTED COMPENSATION COMMITTEE. THIS COMMITTEE IS RESPONSIBLE FOR PREPARING AND REVIEWING THE CEO'S EMPLOYMENT CONTRACT. THEY ALSO APPROVE THE SALARY, BONUS AND BENEFIT PACKAGES OF THE SOCIETY'S OTHER OFFICERS AS RECOMMENDED BY THE CEO. THE REVIEW OF OFFICER COMPENSATION INCLUDES COMPARISONS WITH SIMILAR MILITARY RELIEF ORGANIZATIONS AND OTHER NON-PROFIT ORGANIZATIONS OF A SIMILAR SIZE. THE COMPENSATION COMMITTEE ALSO REVIEWS THE SALARY LEVELS OF THE FULL STAFF, COMPARING THE SALARY LEVELS TO THE GS SCHEDULE UTILIZED BY THE US GOVERNMENT. FORM 990, PART VI, SECTION C, LINE 19 THE SOCIETY PROVIDES DIRECT PUBLIC ACCESS TO THE ANNUAL AUDIT REPORT AND 990 TAX FILING BY MAKING THE DOCUMENTS AVAILABLE ONLINE THROUGH THE AFAS.ORG WEBSITE. BOARD OF TRUSTEE BY-LAWS, MEETING MINUTES, CONFLICT OF INTEREST DISCLOSURES AND OTHER GOVERNING DOCUMENTS ARE AVAILABLE PER REQUEST ONLY. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -9,897,255. 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 1 0 0 0 0 0 0 0 ARMED FORCES RELIEF TRUST C 12604 CASH RECEIVED ARMED FORCES RELIEF TRUST K NO ESTIMATE