We don’t have details yet, but here is an early report. Here are more details. Here is DC’s press release.
UPDATE: Comparing what DC sought in its complaint (p. 23) and what DC got in the settlement (based on news accounts, above), it looks like:
DC didn’t get an order (“constructive trust”) for NRA to immediately refund the loans given it by the Foundation, or appointment of a fiscal monitor to oversee the Foundation.
DC did get (1) the requirement of a detailed reporting system for funds granted by the Foundation to the NRA, and for cost reimbursements paid to NRA; (2) nonprofit ethics training, and (3) creation of a Foundation audit committee (not that NRA’s audit committee has done NRA much good).
Altogether, it sounds like a legal draw. A draw that cost the Foundation $6.5 million in legal fees in 2022 alone. (p. 10), or over 10% of its total revenues. If you want to see a contrast, look at the Foundation’s tax return for 2018, before the scandals and legal issues broke. Legal expenses were a whole $35,000! (p. 10).
NRA in Danger 
Very interesting- I need to do a detailed read, but first blush, Judge Cohen should be looking at implementing these changes for main NRA in the June proceedings up in NY.
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It is unfortunate that “the District’s nonprofit statute, as currently drafted, does not authorize the collection of penalties,” because it would cost the Foundation tens of millions of dollars!
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Several initial thoughts. First–I’m glad to hear a settlement was reached, rather than the NRA/FNRA continuing to wage a battle they probably would lose anyway, all the while shelling out big dollars in Legal Fees to Brewer.
Second–I hope that the Foundation restructures to eliminate much of the overlap between the NRA Board and the Foundation Board. If the Foundation had been truly independent, I doubt there would have been millions of dollars in “loans” to the NRA.
Third–I hope at least some of those “loans” get repaid to the Foundation–and I hope the Foundation finds office space way less expensive than $6 Million a year. I’m not sure there is any reason that the Foundation needs to be headquartered in Fairfax.
I continue to hope both the NRA and the Foundation recover from these lawsuits and return to being the organization(s) they should be–minus all the corruption and internal deals with Board members & Board member’s companies that are a conflicts of interest.
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To have an effective NRA the majority of the current boards will need to be replaced!
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Here is the signed consent agreement: https://oag.dc.gov/sites/default/files/2024-04/2024-04-17-Consent-Judgment-%28Final-for-Filing%29-.pdf
The consent agreement shows that the people who caused all of the problems are still in positions of authority. Therefore, do not expect to see change without the removal of these people who allowed the problems to develop. Andrew Arulanandum, Intermin NRA EVP, signed on behalf of NRA. Tom King, NRA Board Member, signed on behalf of the NRA Foundation.
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To have an effective NRA the majority of the current boards will need to be replaced!
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This is an amazingly soft settlement.
I’m surprised there was no requirement for the Foundation to restructure their Board to have fewer NRA Directors and more “outsiders” (ideally leaders of state Friends of NRA committees selected by a council of Friends of NRA committee leaders). I’m also surprised there’s no requirement that past “misspent funds” be recouped. (The NRA did already repay the questionable loans.)
Along with my surprise, I’m very relieved by this settlement. I have been very fearful that the DC suit might have resulted in the Foundation being forced to sue the NRA for tens of millions of dollars.
The fact that this settlement is so favorable to the NRA begs the question why it was not reached long ago, rather than just days before the case was to go to trial.
This settlement is very good news for the NRA and the Foundation. Now we only have the remediation phase of the New York case to get through, which is supposed to begin in mid July. In that case, I sincerely hope the judge implements more stringent controls over NRA governance. Too many people who were directly culpable in the corruption scandal remain in positions of power within the Association. I hope the judge will either remove them or at least take steps to make it easier for the membership to remove them.
I hope everyone who is concerned about the future of the NRA will be in Dallas for the Members’ Meeting in May. It’s going to be an interesting meeting.
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The DC Attorney General could have easily thrown the Foundation into bankruptcy which would have resulted in the Foundation suing the NRA resulting in the NRA going into bankruptcy.
At one time there were rumors of the IRS removing the Foundation tax exempt status thus making the Foundation pay the back taxes on several hundred million dollars it received over the last 7 years.
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I want to thank Chicago Chuck Thank you for linking to the court document. I need something to read and help me get to sleep tonight:-)
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My comment on the post regarding the New York v. NRA, Judge’s Comments At Scheduling Hearing applies here too.
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