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Yahoo News - Guns and money: Calls mount to probe NRA finances

April 29, 2015
News Articles

By Alan Berlow

A leading national gun safety group, joined by members of Congress, is calling for investigations of the National Rifle Association's fundraising practices and finances in response to a Yahoo News investigation published last week.

The Coalition to Stop Gun Violence (CSGV) has launched a nationwide petition campaign asking the Federal Election Commission and the Internal Revenue Service to investigate "violations of federal law" by the National Rifle Association.

The petition drive cites the Yahoo News report which disclosed that the NRA had violated multiple provisions of the Federal Election Campaign Act, failed to report its political expenditures to the IRS for six consecutive years, and appears to have avoided paying federal taxes.

CSGV spokesman Ladd Everitt called the NRA violations "hugely significant." Everitt said his goal was to press the two federal agencies responsible for enforcement of tax and election laws to "launch investigations into the NRA's fraudulent activities immediately." The CSGV is made up of 48 organizations, among them religious, social justice, political and child welfare groups.

Yahoo News reported that the NRA misled prospective donors by telling them that money was being raised to support the tax-exempt operations of the organization when the money was, in fact, deposited to the account of its political action committee. Federal law — as well as multiple state laws — requires that fundraisers explicitly inform donors who the beneficiary of a contribution will be.

"If donations have been used to support candidates or causes with deception to the donors, there is a likely violation of law," said Sen. Richard Blumenthal, D-Conn., a former Connecticut attorney general. "NRA donors deserve to know where their donations are going without any misinformation, and the solicitations described by Yahoo News merit scrutiny."

Federal law also bars organizations like the NRA from raising funds for their political action committees (PACs) from the general public, and from using publicly accessible websites to finance their PACs. Tax-exempt corporations like the NRA are only allowed to solicit from their members. The NRA violated all of these provisions of the Federal Election Campaign Act in soliciting contributions during the 2014 elections.

Responding to the Yahoo News report and the CSGV petition drive, Rep. Mike Thompson, D-Calif., said, "Everyone needs to play by the same set of rules. If the evidence reported is true, the FEC and IRS should conduct a full and thorough investigation into its [the NRA's] fundraising and reporting activities." Thompson, the chairman of the House Gun Violence Prevention Task Force, said, "Many Second Amendment supporters and responsible gun owners contribute to the NRA because of the work it does to promote gun safety and support the hunting community. They have a right to know whether their money is going to these causes or to Beltway-NRA political efforts that undermine common-sense laws designed to keep criminals, domestic abusers and the dangerously mentally ill from getting guns."

Thompson was referring indirectly to the NRA's support for candidates who backed its successful 2013 campaign to thwart expanded background checks for gun purchases. The measure died in the U.S. Senate.

Yahoo News reported that the NRA misled prospective donors by telling them that money was being raised to support the tax-exempt operations of the organization when the money was, in fact, deposited to the account of its political action committee. Federal law — as well as multiple state laws — requires that fundraisers explicitly inform donors who the beneficiary of a contribution will be.

"If donations have been used to support candidates or causes with deception to the donors, there is a likely violation of law," said Sen. Richard Blumenthal, D-Conn., a former Connecticut attorney general. "NRA donors deserve to know where their donations are going without any misinformation, and the solicitations described by Yahoo News merit scrutiny."

Federal law also bars organizations like the NRA from raising funds for their political action committees (PACs) from the general public, and from using publicly accessible websites to finance their PACs. Tax-exempt corporations like the NRA are only allowed to solicit from their members. The NRA violated all of these provisions of the Federal Election Campaign Act in soliciting contributions during the 2014 elections.

Responding to the Yahoo News report and the CSGV petition drive, Rep. Mike Thompson, D-Calif., said, "Everyone needs to play by the same set of rules. If the evidence reported is true, the FEC and IRS should conduct a full and thorough investigation into its [the NRA's] fundraising and reporting activities." Thompson, the chairman of the House Gun Violence Prevention Task Force, said, "Many Second Amendment supporters and responsible gun owners contribute to the NRA because of the work it does to promote gun safety and support the hunting community. They have a right to know whether their money is going to these causes or to Beltway-NRA political efforts that undermine common-sense laws designed to keep criminals, domestic abusers and the dangerously mentally ill from getting guns."

Thompson was referring indirectly to the NRA's support for candidates who backed its successful 2013 campaign to thwart expanded background checks for gun purchases. The measure died in the U.S. Senate.