National Rifle Association Reaches Settlement With DC Attorney General, Pledges to Reform Charity Arm

On Wednesday, the National Rifle Association (NRA) reached a settlement with the District of Columbia Attorney General's office, in which the NRA pledged to reform their troubled charity arm in return for avoiding a trial.

Prosecutors said the NRA Foundation misused more than $10 million in tax-deductible donations, illegally funneling the money into its parent organization for political activity. The case was set to go to trial April 29.

The District of Columbia settlement does not include financial penalties for the Association, only a pledge of further action, including compliance training.

As part of the settlement agreement, the NRA Foundation agreed to annual nonprofit compliance training for its board members and officers, more consistent audits and the establishment of a conflict-of-interest policy.
It also asks the Foundation to form new policies “governing grantmaking, loans, shared services, and other activity with the NRA to ensure transparency, Foundation independence, and adherence to the Foundation’s nonprofit mission.”
The settlement does not include financial penalties, as the District’s nonprofit governance laws do not permit punitive damages. It will remain in effect until December 2026, Schwalb’s office said.

The settlement comes on the heels of another case against the NRA, brought in New York by that state's Attorney General Letitia James.

That case did proceed to trial and ended up with several judgments against the Association's key officials.

The settlement comes as the NRA recovers from a disastrous New York corruption trial, which saw the organization’s top executives levied with multimillion-dollar penalties for misuse of funds.
A jury found that top NRA executives spent millions of the group’s funds on luxury travel, clothes, dinners and other perks over decades. Former CEO Wayne LaPierre, who stepped down in the wake of the trial, was found liable for $5.4 million in damages, while former Chief Financial Officer Woody Phillips faced a $2 million judgment.

The NRA has, in recent years, been plagued by declining membership and falling revenues, although it remains the largest pro-Second Amendment group in the United States. Formed shortly after the Civil War to promote civilian marksmanship, the organization still certifies firearms instructors and trainers, sponsors shooting competitions, and maintains and operates the NRA Whittington Center near Raton, New Mexico, a 33,000-acre range complex that is one of the largest such shooting facilities in the world.

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The rise of alternative Second Amendment groups like Gun Owners of America, the Second Amendment Foundation, the Firearms Policy Coalition, and the Crime Prevention Research Center are likely part of the cause of the NRA's membership drop.

Membership woes and legal troubles notwithstanding, the NRA remains the 800-pound gorilla of the Second Amendment community. Democrat politicians regularly beat the drum about "taking on the NRA" and blame the Association for everything from the Spanish Inquisition to mosquitoes. It would not be at all surprising to see legal attacks like this continue.

Full disclosure: My wife and I are both Life Members of the NRA.