Reckless NRA Financial Practices And Sketchy Internal Loans
Was it a coup attempt by Ack-Mc to install a replacement that would continue their sweetheart deal for another couple of decades?
By Ron Carter
August 14, 2019
Another fact filled article has been released with some details of the Reckless NRA Financial Practices and serious money problems that the association has been facing for a long time. Many have wondered why the relationship between Ackerman-McQueen and the NRA Leadership fell apart so massively and so suddenly. Was it all faked to distract from Criminal Investigations? Was it over an embarrassing sex scandal? Was it a coup attempt by Ack-Mc to install a replacement that would continue their sweetheart deal for another couple of decades? It might turn out to be as simple as the PR Firm that had the most inside of inside tracks into what has really been going on in Fairfax realizing that the association simply wasn’t going to be able to pay them for much longer.
Here’s the core of the gory financial details reported today:
And although the organization has historically seen ebbs and flows in its finances, deficit spending has become routine.
Borrowing from unlikely sources
The NRA has been borrowing money to make ends meet amid this deficit spending. Having nearly maxed out its conventional lines of borrowing through banks, it’s also been borrowing from those closer to it.
For example, it has aggressively pushed members to pay upfront for multi-year memberships, effectively borrowing from its member ranks. This strategy comes at a cost, however, by closing off those member dues as sources of future cash. At the end of 2017, the NRA’s obligations to members exceeded $30 million.
It also owes its current and future retirees money – after leaving its pension plan underfunded by $49.7 million in 2017. Reports that it has cut back on those promises by freezing its pension plan point to further resource strain.
Perhaps most striking is the NRA’s stopgap borrowing from its own affiliated charity, the NRA Foundation. Charity spending rules do not allow affiliated charities to simply give the NRA money to cover any expenses, but they can lend it funds. This is precisely what the gun group did in 2017, by borrowing $5 million from its affiliated foundation as a short-term loan that was then extended.
An additional $18.8 million of grants from the charity – representing over 40% of the foundation’s budget – demonstrate the group’s heavy reliance on its affiliate. Since charity rules strictly govern how such funds can be used, the New York attorney general’s office probe will surely scrutinize these cash transfers. Los Angeles Post, 8/14/2019
The revelations confirm the rumors about Reckless NRA Financial Practices. Issues with retirement plans (except for Wayne’s, as he’s taken Millions of Dollars out early), loans to “The NRA” from its affiliated entities (all while the apologist are still asking for people to fund those supposedly separate entities), and spending that far outpaced actual revenue have all been widely reported from internal sources openly and in whispers for a long time.