DC sues the NRA Foundation for alleged misused funds

Source: The Hill | August 6, 2020 | Zack Budryk

Washington, D.C., Attorney General Karl Racine (D) on Thursday announced a lawsuit against the National Rifle Association (NRA) Foundation, accusing the gun rights group’s charitable arm of misuse of funds.

The suit filed accused the foundation of allowing charitable association funds for non-charitable purposes and failing to operate as an independent nonprofit, both violations of D.C. law.

“Donors gave money to fund firearms safety, firearms education and marksmanship training,” Racine said in a tweet announcing the lawsuit. “Instead, that money was diverted to support wasteful spending by the NRA and its executives.”

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Racine claimed the NRA borrowed $5 million from the foundation on two occasions, once in 2017 and again in 2018. Racine also accused the foundation of paying millions in fees to the NRA with no oversight and placing the NRA’s interests above its own, in violation of its articles of incorporation.

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The civil suit alleges that top officials at the organization diverted millions of dollars away from its charitable mission and instituted “a culture of self-dealing, mismanagement and negligent oversight.”

The NRA is incorporated in New York, while the foundation is incorporated in the District. Both have their headquarters at the same Fairfax, Va., address.

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