NRA promises to reform its charitable arm in order to settle DC attorney general lawsuit
The association's foundation was accused of misusing more than $10 million in tax-deductible donations by channeling the money into another organization that would spend it on political activity.
The National Rifle Association (NRA) agreed to reform its embattled charitable arm in a settlement with the Washington D.C. Attorney General’s office on Wednesday, which ends the case without a lengthy trial.
Top NRA executives were already found liable for misusing millions of dollars in New York for decades in February, including spending donated money to cover personal expenses such as luxurious travel, clothing, and dining.
In the D.C. case, the association's foundation was accused of misusing more than $10 million in tax-deductible donations by channeling the money into the NRA's main body that would spend it on political activity, according to the Hill.
D.C. Attorney General Brian Schwalb claimed the charitable arm of the organization “cav[ed] to pressure” from the main body and diverted millions to the NRA through grants, breaking public trust.
“Tax-exempt nonprofits are a form of public trust — abusing that trust as the NRA did violates both the public interest and District law,” Schwalb said in a statement.
The NRA rejected the characterization of the settlement, claiming it was “distorted and untruthful.” The NRA did not admit any wrongdoing in its settlement.
“The DCAG ‘spins’ today’s settlement in avoidance of the facts: the DCAG long ago abandoned any claims of wrongdoing against the NRA,” NRA counsel William Brewer said. “Even by DC standards, this is rank political gamesmanship — an after-the-fact justification for a failed lawsuit by these officials.”
The NRA agreed to establish a yearly nonprofit compliance training for the board members, the establishment of a conflict-of-interest policy, and more frequent and consistent audits as part of its settlement.
If no settlement had been approved, the case would have gone to trial on April 29.