The NRA sought to exercise improper control over the Foundation’s assets, which can jeopardize the tax-exempt status of the Foundation and the tax-deductible donations it receives. It is a matter of public record that the NRA has experienced net losses over the past two years and has been required to liquidate more than $40 million of its investment portfolio to reduce debt and fund operations. NRA also furloughed and terminated a number of its staff members and experienced these net losses due to declining membership and donations during this same period.
The NRA brought this lawsuit when the Foundation resisted the NRA’s efforts to control Foundation funds.
The Foundation is legally obligated to ensure that its funds are used in a manner consistent with its mission, internal policies, tax-exempt status, and applicable law. This includes maintaining discretion and control over charitable funds and ensuring that payments to third parties are reasonable and lawful.
To be clear, the Foundation has funded millions in grants to the NRA’s charitable programs for 2026. The Foundation, in its discretion, declined to make certain payments recently requested by the NRA—including payments the NRA characterized as trademark “royalties” and significant overhead expenses requested by the NRA as charitable grants. The Foundation has been consistent in its position throughout: it will fund eligible charitable programs operated by the NRA, pursuant to its grant policies and applicable law, but it will not provide funds that jeopardize its tax-exempt status or that do not serve its charitable mission.