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NRA Foundation Resolves Dispute with the District of Columbia

NRA Foundation Resolves Dispute with the District of Columbia

The NRA Foundation, Inc. (the “Foundation”) today announced that it has successfully ended the lawsuit brought by the District of Columbia (the “District”).

Originally filed by the District on August 6, 2020, the suit alleged that the Foundation did not properly oversee funds that it granted and loaned to the National Rifle Association of America (the “NRA”), and that proper separation was not maintained between the two entities. On April 16, 2024, the NRA and the Foundation entered into a consent judgment with the District, resolving all claims against the Foundation and the NRA. Notably, discovery showed that there was no failure of oversight: Foundation funds were used exclusively for charitable and education programs administered by the NRA, loans to the NRA were properly vetted and spent and benefitted the Foundation, and that the Foundation always maintained proper independence in its corporate affairs. Under the settlement, neither the NRA nor the Foundation admit any wrongdoing or pay any fines or penalties.

“After years of searching for some evidence to the contrary – there is no proof that Foundation funds were ever misused or misdirected in any way and, in fact, the District had no evidence that a single dollar of Foundation funds were ever misused by the NRA,” says NRA Foundation President Tom King. “This is a credit to the Foundation staff, our Board of Trustees, and our collective commitment to good governance. This is a positive outcome for our Foundation and its millions of supporters.”

Under the terms of the consent judgment with the District, the Foundation agrees to continue doing what it has always done: comply with applicable not for profit law. The Foundation further agrees to continue to provide nonprofit compliance training for its Board of Trustees, form its own Audit Committee, adopt a new conflict of interest policy in line with what it has always followed, and modify slightly its processes for grantmaking to the NRA. While the NRA and Foundation have had a Shared Services Agreement in the past, the Foundation has agreed to modify its Shared Services Agreement to identify the specific expense allocation methodologies that the parties have applied in the past.

Significantly, although the District in its lawsuit sought extraordinary remedies, such as a constructive trust, long-term monitorship, and substantial revisions to its Bylaws, the District abandoned these remedies because the facts did not support them. Simply put, the Foundation continues to adhere to its charitable and educational purpose and this settlement recognizes that fact. The order in no way limits the Foundation’s operations or impedes its ability to amend its articles, bylaws, or other organizational documents should it choose to do so.

The NRA Foundation supports a wide range of public programs focused on firearms safety and training, law enforcement education, hunter safety, and youth. The NRA’s Eddie Eagle GunSafe program that the Foundation supports has taught gun safety to more than 32 million children.

“I am proud to say the good work of the Foundation will continue to thrive – and we remain the world leader in supporting programs relating to the Second Amendment,” King says. “Our donors can continue to give with confidence and faith in our mission.”

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