Read on Twitter
Conventional wisdom is that the NRA bankruptcy is all about relocation, because that’s what the NRA said it’s about. But, a sleeper possibility: it’s actually also about finances and they’re avoiding talking about that. 1/
After all, they’ve been in a financial tailspin for years. 2/ https://theconversation.com/the-nras-financial-weakness-explained-108582
Recent financial statements indicate this has worsened and that the organization admits to material diversion of assets, a sign their legal & financial troubles aren’t going away. 3/ https://www.washingtonpost.com/politics/nra-irs-disclosure-990/2020/11/25/50521108-2d34-11eb-9c71-ccf2c0b8d571_story.html
They’ve managed to plug leaks over the years by selling long-term memberships, effectively borrowing from future member dues. That well has dried. 4/ https://www.bloomberg.com/news/articles/2019-07-10/the-nra-uses-creative-accounting-to-post-surge-in-revenue
They’ve also already frozen their pension plan and cut back on expenses. 5/ https://www.npr.org/2019/05/15/722960414/as-leaks-show-lavish-nra-spending-former-staff-detail-poor-conditions-at-nonprof
With legal costs skyrocketing, what other options are left, especially with their reliance on funding from their affiliated foundation under added scrutiny? 6/ https://www.thetrace.org/2021/01/dc-attorney-general-nra-foundation-funding-suit-karl-racine/
The org’s unrestricted net assets ballooned to nearly $50 million in the most recent financials. Something has to give at some point — perhaps that point is now, with the NY & DC suits swirling along with the ongoing AckMac litigation. 7/
One last wrinkle: in their most recent financials (2019), NRA disclosed that of their $57 million in notes payable and credit obligations, $35 million in obligations come due in 2021. 8/
Short version: ignore the NRA claim that their finances are healthy and keep a close eye on their court disclosures. The picture is likely to be more dire than they’ve let on so far. 9/9
