A Deficit of $100 Million Is Confronting the N.R.A.

NY Times ^ | 12/21/2003 | STEPHANIE STROM

[Joe Brower]

A Deficit of $100 Million Is Confronting the N.R.A.
By STEPHANIE STROM
New York Times
Published: December 21, 2003

Costly legal, legislative and political battles in the last decade have left the National Rifle Association with a $100 million deficit, reopening a bitter debate within the group about how it manages its money.

In the past decade the group's efforts have helped Republicans win the White House and Congress and led to laws in more than 30 states banning lawsuits against gun manufacturers. In the last year the N.R.A. helped pay for a losing legal battle against campaign finance legislation, which the Supreme Court upheld this month.

But through many of those years, according to Internal Revenue Service and N.R.A. records, the organization spent more than it took in.

Even in 2000, when gun owners helped elect George W. Bush as president, pushing N.R.A. membership to a 10-year high, expenses outstripped revenues by $20.4 million, according to I.R.S. filings.

"The victories we have delivered have been costly, cutting deeply into the N.R.A.'s budgets," Wayne R. LaPierre Jr., the group's executive vice president and chief executive, wrote in an N.R.A. magazine, America's 1st Freedom, in October. "Winning takes millions of dollars beyond what individual members' dues cover. Today, if we were faced with a full-blown legislative assault, we simply would not have the war chest."

The N.R.A., one of the largest and most powerful grass-roots groups in the country, relies heavily on membership dues, but since 2000 - when the organization had a surge of new members - membership has slid about 20 percent, from a peak of 4.3 million to about 3.4 million.

That is partly because membership usually rises in election years and ebbs thereafter. N.R.A. officials note that membership is higher than the average during the 1990's.

But falling membership is also a result of complacency among gun owners, gun rights advocates say.

"A lot of people think that because we have a Republican in the White House, our guns are safe and our rights won't come under attack," said Angel Shamaya, founder and executive director of Keep and Bear Arms, a rival organization.

Experts who study nonprofit groups like the N.R.A. disagree about how great an impact the deficit can have on the group's lobbying or political activities. But the growing shortfall, coupled with the recent departure of Charlton Heston, the actor who was the president and the public face of the N.R.A. over the last seven years, has reignited internal fights over financial management.

"We shouldn't be going into the hole, which is what we're doing," said Neal Knox, a member who once tried to unseat Mr. LaPierre partly over concerns about finances. "The deficit isn't there because we're taking in more or less money, it's there because we're spending more money than we have."

Mr. Knox raised the same concern to incite a mutiny in the mid-1990's, which culminated at the 1997 annual meeting, when Mr. LaPierre narrowly retained his job.

N.R.A. officials said that Mr. Knox, once a powerful executive at the group, had other motives. "It's the old battle plan where you create a crisis and then come swooping in with a plan to resolve it," said Wayne Ross, a board member who last year ran for governor in Alaska. "Neal is upset about being on the outside, and so he's going to raise any issue he can."

Mr. Ross said he was not concerned about the N.R.A.'s finances. "I would rather have the N.R.A. get into deficit spending and fight the good fight than just sit on the sidelines because it was financially prudent," he said.

The N.R.A. contends that its deficit is a fiction manufactured by accounting standards. "Trying to do an analysis of the organization based on its accounting-created balance sheet is a futile attempt because it is driven by assets that aren't there, namely the quality of its members, and liabilities that aren't really there either," said Wilson H. Phillips Jr., the N.R.A. treasurer.

He said the deficit was a sign of strength, because the bulk of the liabilities reflect future obligations to long-term members. "What appears to be a growth in the deficit is actually a demonstration of membership growth and growth in longer-term commitments from members," Mr. Phillips said.

[Shooter 2.5]

There is a number a member can call to get off their list. Everyone just has to remember that they wouldn't do it if it didn't work. For a number of people who complain they have to get off the couch to throw a letter away, there's someone else devoting their time and money to the cause.

The article is close to laughable. The source is an enemy and the two interviewed aren't exactly the NRA's cheerleaders.

[Blue Collar Christian]

"I can't separate the facts from the spin..."

No problem, Joe, from the NYT, the printed part is the spin.

Blow this off, and while we're at it, let's send in $25 each to the ILA.

[Liberty Ship]

Several years ago, I called the toll free member's number and asked that they put me on some kid of list they have which minimizes mailings and contacts. They did, and now I get way less stuff than I used to. If it bothers you do that. I make the same request everytime I buy someone a gift membership, too.

I just sent money to JPFO and renewed my GOA membership. I might just cut a check to the NRA for good measure. I would be interested to see an income and balance sheet, though. Seems like I got one from them last year and things looked ok...

[mvpel]

N.R.A. officials said that Mr. Knox, once a powerful executive at the group, had other motives. "It's the old battle plan where you create a crisis and then come swooping in with a plan to resolve it," said Wayne Ross, a board member who last year ran for governor in Alaska. "Neal is upset about being on the outside, and so he's going to raise any issue he can."

Meeeeoooowwwww... News flash, Wayne: Neal's not the one who "created a crisis" by spending more money than was coming in.

[mvpel]

The collection is now in an absolutely beautiful museum-like setting in the Waples Mill HQ, and it's really a delightful browse. You should check it out. Also, the range there is state of the art.

[mvpel]

As I understand it, they hire an outside company to put together and send out the solicitations, and both the NRA and the mailing contractor get a cut of the returned contributions, so they don't have to lay out money up front to pay for the mailings.

[Squantos]

I want to read about Wayne R. LaPierre Jr's resignation on my desk by oh early thirty Monday or the NRA has seen my last dollar till he's gone. His hate and exile of Neal Knox is now founded for viable reasons it seems.

We cannot afford doubt of or factual financial fiascos by such executives. Stop the mailings, close the resturants, shut down the good old boy only hunt clubs and get honest with the the membership........DAMN !.....I thought things would improve when LBJ's baldwinesque 68GCA poster boy retired .....DAMN DAMN DAMN !

Stay Safe Joe !

[cmotormac44]

I wrote once and also called about the mass mailings--answer was that it the job was 'farmed out' to a firm that does that stuff and all expenses came out of the total take--if true, it would cost NRA nothing out of their funds and have no effect on the 'bottom line'--I undersatand that nmany companies use this approach for fundraising--

[turk99]

Your right. Too much mail. Somedays I get 3 or 4 mailings from them and I get something from them several times a week.

[Djarum]

I got 2-3 a month when I was a member. Not only were they annoying, they cheapened the NRA's image.

[Blue Collar Christian]

"Wonder how much was wasted fighting CFR."

Was it a waste just because we lost? I think not. If the NRA had not fought McCaine-Feinhold, I would have been sorely disappointed in the organization, as it is, I'm sorely disappointed in SCOTUS. Commie children of questionable parentage!

[rogue yam]

Sorry guy. If the mailing expenses come out of the total take then the return to the NRA for operations is reduced. I agree with the majority on this thread. Just let me pony up every year (or every-other year for double the amount) and send me a cheapo newsletter once a quarter or so listing organization activities. Let those who want more "activism alerts" type stuff sign up for email. They need to cut the overhead in a big, big way.

[68skylark]

Here's what I think I decoded from this confusing article. Others are welcome to correct me where I'm wrong.

It seems that whenever someone joins as a life member, the NRA needs to set up a large liability on their balance sheet for the value of lifetime service they promise to provide for that person (magazines, etc). Then, instead of investing the funds from the new life member, they tend to spend the money now. This seems to imply that they expect new membership to continue to keep them operating smoothly (not totally unreasonable), and/or they always have the option of dialing back the services they offer in the future for life memebers.

I'm a life member of the NRA and overall I don't think I have a problem with this. I'm happy for the NRA to spend the bulk of my dues money on battles being fought today, and not investing my money for fighting battles over the next 40 years. If we don't fight the hard battles now, there might not be much left to fight for 40 years from now.

[facedown]

Life Member bump.

[cpst12]

>>Well for starters they could save money on mass mailing me. I am already a member but they regularly bombard me with paper.


Same here...I finally cancelled my membership. I signed up so that I could help a little with my fee. I am not going to donate any more money..period. But instead of taking my $30 fee to DO SOMETHING with...they spend the $30 on postage and mailings to me asking for more money...sorry, but the well is dry..(and lets not forget the non-stop telephone harassment also looking for donations.)

[Hugin]

A couple of points...

First NRA dues cannot legally be used for political campaigns or lobbying. They can only do that using donations to the NRA Political Victory Fund and NRA Institute for Legislative Action. If you check out the mailings you receive you will see that they are soliciting funds for those seperate organizations. So do you ever donate to those organizations? How many times have you sent them a donatation without being solicited?

Second, if those mailings did not bring in more than they cost, they would not send them.

I do think they could cut down a bit. But also remember that if you get a solicitation from the NRA-ILA and NRA-PFV in the same week, they are not really from the same organization, and neither is really from the NRA itself.

[Joe Boucher]

I believe this is all crap.
From what I have heard, the N.R.A. a year or two ago built a fabulous new headquarters. It probably cost 300 million. They are in debt for the mortgage on the building. Just like you are in debt. paying for your house.

[MinuteGal]

I don't have time to read their magazines. The last stack I had was sold at my garage sale last month. The money went into the Salvation Army kettle.

Leni

[Nightbird]

Screw 'em. The NRA capitulates way too often, always talking about "just enforce the laws already on the books." Bullcrap! With this Congress they should be fighting to repeal these laws.

Their support for "Project Exile" is another joke. I call it project Gestapo...making felons out of people who make paperwork mistakes just trying to jump through all the government hoops to legally own firearms. There aren't supposed to be any hoops!

Sorry, when it comes to defending my 2nd Amendment rights, I only trust a no-compromise group: GOA

www.gunowners.org

[Hugin]

The GAO is ideologically pure for sure. Unfortunately the GAO has never actually accomplished anything in the real world.