The National Rifle Association (NRA) recently reached a settlement with Washington, D.C., Attorney General Brian Schwalb to avoid another civil trial. The attorney general had sued the NRA and its charity, the NRA Foundation, for allegedly misusing tax-deductible donations. Schwalb accused the charitable arm of the NRA of allowing the organization to use it as an “unchecked piggy bank,” diverting millions of dollars to the NRA in grants and loans. This settlement comes after a New York jury found the NRA and its former CEO liable for financial misconduct in a separate civil case.
Former NRA chief executive Wayne LaPierre was found liable for misspending millions of the organization’s money, using it for expensive vacations and lavish travel. The jury in the case also found that the NRA had mismanaged its assets, misrepresented information in tax filings, and violated whistleblower protections. LaPierre was ordered to pay $5.4 million in damages, and the NRA faces $4.4 million in penalties. The settlement with the Washington, D.C., Attorney General’s Office requires extensive changes within the NRA to ensure the foundation operates independently and complies with nonprofit laws.
The NRA characterized the settlement as a victory, claiming that it had proven all funds taken from its foundation were used for charitable programs without misuse. NRA President Charles Cotton labeled Schwalb’s lawsuit as a “political attack,” but the settlement outlines accountability measures for the foundation, including conducting annual nonprofit compliance training and establishing an audit committee. Violations of the district’s nonprofit statute do not authorize the collection of penalties, but the attorney general emphasized the importance of protecting nonprofit donors’ money and ensuring compliance with the law.
Tax-exempt nonprofits are considered a public trust, and the NRA’s misuse of funds violated that trust, according to Schwalb. The outcome of the settlement reinforces the district’s commitment to safeguarding nonprofit donors’ money and ensuring compliance with the law. The settlement comes amid ongoing legal challenges for the NRA and its leadership, highlighting the need for transparency and accountability within charitable organizations. The NRA’s agreement with the Washington, D.C., Attorney General’s Office represents a step towards addressing allegations of financial misconduct and ensuring responsible management of charitable contributions.
