I have published financial analyses of the NRA by former board member Rocky Marshall in the past. Based upon an audit filed with the North Carolina Secretary of State’s Charities Division by the NRA, he has updated his analysis. I am publishing this with the permission of Rocky.
RED FLAGS AND REALLY RED FLAGS
- 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.
|National Rifle Association Financial Analysis Year Ending 2022||Estimate|
|(in millions $M)||2021||2022||$Change||%Change||2023|
|Note Payable & LOC||24.6||43.7||19.1||78%|
|Total Investments pledges as collateral||53.6||44.2||-9.4||-18%|
|Percentage of Investments collateralized||75%||62%||-13%||-18%|
In a marginally related aside, NRA In Danger is reporting that Wayne LaPierre has put his house in Great Falls, VA on the market. The asking price is $2.4 million. NRA In Danger is taking this as confirmation that the powers that be have made the decision to move to Texas. As with the bankruptcy case, the Board has been kept in the dark until it was a done deal. Read his or her full post.