National Rifle Association: Busted, Broke, & Bankrupt…..Repeat!
Opinion by Former NRA Director Rocky Marshall
The NRA recently filed the financial statements and related comments of the independent auditors for year ending December 2022. The 34-page document is full of shocking catastrophic financial data which is summarized in the following table:
RED FLAGS AND REALLY RED FLAGS
- Revenue continues its downward spiral as expenses (mostly legal) will likely increase in 2023-2024.
- Net Income losses will likely continue 2023-2024.
- Cash on hand is $12M and monthly expenses are $19M.
- Recommended minimum cash on hand should be $57M.
- Additional cash required to cover -$26m projected operating loss for 2023.
- Additional cash required for contract liabilities of $40M to paid during 2023
- Additional cash required to cover principal loan payments due in total of $28M during 2024.
- Line of Credit and other Notes [debt] jumped 78%.
- Increasing debt through loans to cover general operating expenses.
- Capitalizes computers in excess of $500 and other fixed assets greater than $1,500.
- Capitalization of purchases is artificially low and reduces expenses in order to boost net income.
- Assets due from the NRA foundation are $31M and inflate the NRA balance sheet.
- Most of the NRA foundations assets due have donor restrictions and cannot be used for general expenses.
SUMMARY:
Whoever is managing the NRA (no one knows) has scheduled a very brief 1-hour Board meeting on January 6, 2024 before the trial begins in New York. I have spoken to former Board members who conjecture that (in light of the current financial position) the NRA will vote to file bankruptcy (again) and avoid the trial in New York. Fun Facts: There are no legal limitations on how many times an entity or charity wherein the management team has embezzled millions for decades can file bankruptcy. Good to know.
[NRA in Danger past postings on NRA finances: early 2022, same, summer 2022, late 2022, summer 2023, the most recent. Every day the news gets worse, it’s been that way for four years now, and the board declines even to ask questions. Fiduciary duties? We’ve also posted on how the Directors and Officers insurance policy won’t protect directors from liability; it’s just window dressing.]
NRA in Danger 
Sigh.
*”I didn’t attend the funeral, but I sent a nice letter saying I approved of it.” — *Mark Twain
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Rocky has a gift for condensing complex financials to make them understandable. We need him back on the Board.
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We need him and the other reformers including but not limited to Rocky, Frank, Judge Journey, Jeff Knox, Colonel Brown, etc.
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Worth noting: All of the above numbers are on top of the declines in 2019, 2020, and 2021.
Also worth noting, Rocky, along with Phil Journey, Dennis Fusaro, and I have apparently succeeded in our efforts to get on the NRA Board of Directors ballot for the 2024 election. NRA has circulated a list including all of us as candidates, though they haven’t directly contacted any of us.
Getting on the ballot was just the first hurdle. The election process begins in early 2024.
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Congratulations to the reformers and now members must vote for them!
I would venture to guess Wayne et al are distraught with them on the ballot.
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How can we get an advertisement in the monthly magazine prior to the election.
Can they legally deny a paid advertisement by members ?
Having Phil Rocky, Dennis and you all draft a unifying letter? Speaking truth to the methodology of saving the organization?
Get 76 Board members down to manageable number. 15 or less.
Get E&T under the Foundation, with Eddie Eagle, RTBAV, WOT, etc.
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Numbers don’t lie:
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Many thanks Rocky for keeping us regular members updated.
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The degradation of the NRA has followed the degradation of the Federal Government. Corruption Galore.
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