The turmoil resulting from the disasterous tenure of Wayne LaPierre has now dragged on for over four years. La Pierre’s scorched earth policy for hanging on to power is dragging the NRA down with him.
John Richardson at No lawyers – Only Guns and Money has a dive into the NRA’s finances, and it isn’t pretty.
Revenue continues 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 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.
All this adds up to a big cash crunch coming down. Hardly the sign of a well-run organization.
Richardson also links to a post that suggests La Pierre has already decided to move the NRA to Texas.
Here’s confirmation that [Wayne LaPierre’s Virginia home] is for sale, and of its ownership. Reports of a planned NRA move to Texas can be considered 100% confirmed, and in the near future. The listing has been on Realtor.com for 46 days, so the listing began in late September. The decision to move must have been finalized before then. We’re hearing rumors of offices having been leased in Irving.
We’re told that this was not discussed at the last board meeting, and that the Relocation Committee has not met in over two years. This is being done without any board input. It’s the bankruptcy lawsuit all over again. There is also no indication that the NRA’s employees have ever been told. Let’s amend that. We can assume that a handful of insiders in HQ have been told to make ready, and that everyone else is considered disposable.
The move to Texas itself is not unexpected. In August, there was a story that the NRA was closing in on a new headquarters in the Dallas-Fort Worth Metroplex. And indeed, there are sound reasons to move to the Lone Star State, though Wayne and his cronies are pulling the trigger way too late to save themselves from the legal difficulties that have ensnared them in New York. But the manner in which they’re doing it, in the dead of night without informing the board of membership, reeks of an organization ruled by a corrupt cabal for their own self-interests that are effectively divorced from the organization’s membership.
To quote myself from a previous post:
Jerry Pournelle’s Iron Law of Bureaucracy states that in any bureaucratic organization there are two kinds of people: Those devoted to the goals of the organization, and those dedicated to the organization itself. “The Iron Law states that in every case the second group will gain and keep control of the organization. It will write the rules, and control promotions within the organization.” LaPierre’s NRA has clearly been captured by the second group. Or to put it another way: “Every great cause begins as a movement, becomes a business, and eventually degenerates into a racket.” LaPierre’s NRA has become a racket. The NRA exists to serve its members and protect the Second Amendment, not to serve and protect Wayne LaPierre.
At least that’s the way it should be. Lots of captains have gone down with their ship, but LaPierre’s refusal to step aside for the good of the organization is a case of the captain taking the ship down with him.
Not a dime until Wayne resigns.