NRA Settles DC Lawsuit Alleging Abuse of Charitable Funds
WASHINGTON — The National Rifle Association avoided a trial set for this week by agreeing in a settlement to reform its charitable operations.
Top officials of the NRA were accused of siphoning off millions of dollars in donations to its charitable arm, called the NRA Foundation, for luxury travel, expensive clothing and other personal expenses.
They were sued by the District of Columbia attorney general’s office under the D.C. Nonprofit Corporation Act, which requires charitable organizations to protect donors’ money.
The NRA Foundation “violated this sacred public trust, allowing the NRA to use them as an unchecked piggy bank,” D.C. Attorney General Brian Schwalb said in a statement. “Abusing that trust as the NRA did violates both the public interest and district law.”
In addition to making financial reforms under the settlement, former NRA Chief Executive Wayne LaPierre must repay $5.4 million and former Chief Financial Officer Wilson “Woody” Phillips was ordered by a court to pay $2 million in damages.
The NRA did not admit wrongdoing in the settlement. In previous statements, the gun rights organization said a prosecution in New York and the D.C. lawsuit were politically motivated reprisals by Democratic gun control advocates.
The NRA Foundation collects tax-deductible contributions for charitable purposes related to firearms, firearm safety and hunting safety. Its charter allows it to provide grants and sponsorships to organizations across the country related to those charitable purposes.
The foundation can give financial support to the NRA but only if it is for the same kinds of charity.
The D.C. attorney general’s lawsuit says the foundation disregarded its duty to protect its donors’ contributions and to operate independently of the NRA.
Instead, the foundation turned over its spending decisions to NRA executives, the attorney general said.
NRA executives tapped the foundation’s financial reserves for grants and loans when the NRA needed money to cover its financial losses caused by decreasing membership and lavish spending of its leaders, the attorney general said.
“Caving to pressure from the NRA, the foundation diverted millions of dollars to the NRA in grants and risky loans that were repaid only after [the Office of the Attorney General] filed its lawsuit,” Schwalb said.
You can reach us at [email protected] and follow us on Facebook and X.
