provide, in partnership with the Navy and Marine Corps, financial, educational and

other assistance to members of the Naval Service of the United States, eligible family

members, and survivors; and to receive and manage funds to administer these

programs. We were founded in 1904 by 19 volunteers and our first clients were

widows and orphans. That year we disbursed almost $9,000 in donations to assist 34

widows. We continue to assist widows today, and during 2008 we provided $549,000

to nearly100 widows in monthly income supplements. These are widows who are not

eligible for support by any other existing “survivor benefit” programs. Our assistance

is basically all that keeps them from slipping into a life of poverty. Volunteers remain

the Society’s life blood and we currently have more than 3,600 volunteers delivering

our services to clients around the world. Although partnered with the Department of

the Navy, the Society is a private, non-profit organization whose programs and

services are totally funded by charitable donations. Contributions received from

Sailors and Marines (both active duty and retired) translate into direct financial

assistance to your Shipmates and Fellow Marines – they do not get invested in the

Society’s Reserve Fund and they are not used to fund any of the Society’s education

programs.

Franklin D. Roosevelt authorized a one-time public solicitation of donations to

augment the Society’s funds during the War. Wall Street financier Clarence Dillon

agreed to chair the National Citizens Committee with a goal of raising $5 million for

Navy Relief. At the conclusion of the campaign, the Committee delivered $10 million

and this was the genesis of the Society’s Reserve Fund. The return on these invested

funds is designed to pay all of the Society’s administrative and fundraising costs; pay

for the Society’s education programs; augment the Society’s general fund when

financial assistance to clients exceeds loan repayments and contributions; and to

provide resources in case of catastrophic loss associated with natural disasters,

accidents and wartime casualties. During the period 2003-2007, the Navy-Marine

Corps Relief Society withdrew $70 million from the Reserve Fund to provide assistance

not covered by contributions and loan repayments and to pay administrative costs.

During that same five-year period, the Society disbursed $182 million in interest-free

loans and grants in nearly 213,000 financial relief cases, and received $62.1 million in

charitable contributions from active duty and retired Sailors and Marines.

client confidentiality policy. A Sailor or Marine does not need chain of command

approval to seek assistance. If the Society denies assistance, a client is always

advised on the reason for denial and briefed on the command appeal process.

Confidentiality, of course, does not apply in cases of criminal acts, misconduct,

matters affecting good order, discipline and security of command.

and responsible financial decision making. We do that by combining our

financial assistance with budget counseling. All of our financial assistance is based

on need, and we make the decision whether to provide an interest-free loan versus a

grant on the ability of the individual to repay a loan. Experience has shown that the

best long-term outcomes occur when the individual is able to take the responsibility

for meeting his or her financial obligations. About 88 percent of our assistance is in

the form of interest-free loans. In cases where loan repayment would create undue

hardship, clients receive outright grants. Through education and budget counseling,

our goal is to ensure the service member and family are prepared for the next

unexpected crisis and can make informed and responsible financial decisions. Our

goal is helping Sailors and Marines achieve long term financial stability. By helping

clients develop their own problem-solving capabilities, we encourage them to live

within their means.

Secretary of the Navy direct mail campaign to retired Sailors and Marines.

industry. In 2006, the Society provided $1.3 million to clients victimized by

payday lenders. In 2008, that figure was reduced to about $340,000 – mostly

to retirees.

QALs totaling $6.9 million, representing 37.6% of our casework for the year.

support of more than 560 combat-injured service members and their families.

travel, funerals, car repairs, medical and dental bills, combat casualties)

and food for displaced families)

and new mother visits; assistance to the elderly including picking up

prescriptions for housebound clients)

financial support of your Shipmates and Fellow Marines. When you run into financial

difficulty, please make the Navy-Marine Corps Relief Society your first resource!

Sincerely,

Steve Abbot

Admiral, U. S. Navy (Ret)

President and Chief Executive Officer