AMA's 2019 Tax filing - the financial implosion continues
01-23-2021, 05:54 AM
#101
I saw that but it doesn't make my comments any less relevant. The history of the AMA has shown their desire to be the one and only. And that would be OK provided they actually did their jobs. But they don't. The current fiscal situation, that's been developing for years proves they don't. And the membership allows them to get away with it. Membership apathy towards the over all functionality of the organization is the biggest reason the AMA has been able to do as they please and run the finances of the organization into the ground the way they have. The people in paces like this that talk big but do little or nothing when it comes to actually holding the AMAs feet to the fire. A single contact to their DVP is about the most anyone does.
In my opinion your traditional LOS flyers need to abandon the AMA and form a new organization. To fix the AMA at this point would probably result in an internal war that would take too much time and effort. In fact I suspect the current EC would promote such a war for the simple reason that time would be on their side. A similar tactic was used with the SFA.
However, a new organization would need something for the members which the AMA does not and preferably can not provide. Something tangible and while the new one can be assumed to be properly run and managed in an ethical manner, the majority of the LOS Modelers out there really don't give a hoot about that. The voter participation of the AMA is testimony to that. So the new organization would need something, some service or benefit the AMA couldn't or wouldn't be able to match. The SFA did it with Primary insurance coverage at half the membership price of the AMA. But I suspect that won't work this time but could still be part of the overall package. No, what a new organization would need to start is funding and lots of it. Even before the first member joined. Funding that can provide something the clubs need.
And on the flip side, I can just imagine how the dedicated few of the AMA membership would attack and run down such an organization in places like this and other forums. The lies, rumors, intentional mis-quotes, etc would no doubt run rampant. And don't say they wouldn't. We both know better. And in the end the new guy would no doubt end up between a rock and a hard place having to either sew some slandering individuals and maybe even the AMA itself or just walk away. And that would be a no-win situation for the new guy as it would harm the hobby way more than it would help. But would the AMA care? How about their membership?
In my opinion your traditional LOS flyers need to abandon the AMA and form a new organization. To fix the AMA at this point would probably result in an internal war that would take too much time and effort. In fact I suspect the current EC would promote such a war for the simple reason that time would be on their side. A similar tactic was used with the SFA.
However, a new organization would need something for the members which the AMA does not and preferably can not provide. Something tangible and while the new one can be assumed to be properly run and managed in an ethical manner, the majority of the LOS Modelers out there really don't give a hoot about that. The voter participation of the AMA is testimony to that. So the new organization would need something, some service or benefit the AMA couldn't or wouldn't be able to match. The SFA did it with Primary insurance coverage at half the membership price of the AMA. But I suspect that won't work this time but could still be part of the overall package. No, what a new organization would need to start is funding and lots of it. Even before the first member joined. Funding that can provide something the clubs need.
And on the flip side, I can just imagine how the dedicated few of the AMA membership would attack and run down such an organization in places like this and other forums. The lies, rumors, intentional mis-quotes, etc would no doubt run rampant. And don't say they wouldn't. We both know better. And in the end the new guy would no doubt end up between a rock and a hard place having to either sew some slandering individuals and maybe even the AMA itself or just walk away. And that would be a no-win situation for the new guy as it would harm the hobby way more than it would help. But would the AMA care? How about their membership?
05-14-2021, 08:37 PM
#102
Okay guys, we've been all over the AMA's wasteful spending and problems with the management. Looks like the NRA has it even worse than the AMA does. From a Texas bankruptcy court document dated three days ago:
As part of its course correction, the NRA hired the law firm Morgan, Lewis & Bockius LLP to provide advice regarding tax and nonprofit governance matters.7 The NRA also hired Brewer, Attorneys & Counselors (the “Brewer Firm”) in early 2018 to aid with the course correction process and potential upcoming litigation.8 Since that time, in addition to becoming the NRA’s primary litigation counsel, the Brewer Firm appears to have become involved in many aspects of the NRA. In March 2018, the NRA hired Craig Spray as its new chief financial officer.9 Before joining the NRA, Mr. Spray served as the chief financial officer for two different companies, one of which was a publicly traded company valued at over $1 billion. On April 19, 2018, the New York Department of Financial Services sent letters to insurers and financial institutions encouraging them to review their relationships with the NRA and consider whether such relationships harm their corporate reputations and jeopardize public safety (the “NY DFS Letter”). Less than a month later, the NRA, with the assistance of the Brewer Firm, filed a complaint in federal court in the Northern District of New York against the governor of New York and the New York Department of Financial Services regarding their alleged attempts “to deprive the NRA and its constituents of their First Amendment rights to speak freely about gun-related issues and defend their Second Amendment freedoms against encroachment.”10
In July 2018, several whistleblowers came forward with the encouragement of Mr. Spray and presented a memo to the NRA Audit Committee regarding their top concerns (the “Whistleblower Memo”).11 That list included concerns related to (1) financial conflicts of interest of senior management and board members, (2) senior management override of internal controls relating to, among other things, accounts payable procedures, travel and expense reporting, and procurement/contracts policy, (3) management making decisions in the best interests of vendors 5 instead of the NRA, (4) vague and deceptive billing practices of vendors, (5) improper reimbursement for apartments and living expenses of certain employees, and (6) lack of control over vehicle leases obtained by senior management.12
Following the presentation of the Whistleblower Memo to the Audit Committee, the NRA took several actions, including examining related party transactions and reviewing vendor contracts.13 As a result of this review process, the NRA required the inclusion of specific metrics in all contracts14 and improved documentation and recordkeeping.15 One of the more significant actions taken in response to the Whistleblower Memo was to send letters to the NRA’s vendors notifying them of the rules regarding proper invoicing.16 While most vendors complied with these new measures, some did not.17 As a result, some contracts with vendors were re-negotiated, and some were terminated.18
This goes on for a total of 38 pages but it gets the point across that the NRA isn't the squeaky clean organization they try to look like. If you want to read all of it, with all the included footnotes, the link is here:
1-redirect?event=video_description&redir_token=QUFFLUhqbXZRbnFwYlk5WkZnQWltUXZ2VGNCXy02RnVTQXxBQ.pdf
UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION
In re: National Rifle Association of America and Sea Girt LLC, Debtors. § § § § § § Chapter 11 Case No. 21-30085 (HDH) (Jointly Administered) ORDER GRANTING MOTIONS TO DISMISS The National Rifle Association of America (the “NRA”) is a 150-year-old organization with approximately five million members that is dedicated to the rights of Americans to own and safely use firearms for their personal protection and recreational use. The mission and function of the NRA is focused on gun safety, and the NRA asserts it is “the nation’s foremost defender” of the Second Amendment of the United States Constitution. In recent years, however, it has become apparent that the NRA was suffering from inadequate governance and internal controls. The attorney general for the state of New York conducted a fifteen-month-long investigation of the NRA that revealed, the New York attorney general claims, widespread misuse of assets by the NRA’s executive vice president and his circle of insiders for their personal benefit. Nine months ago, the New York attorney general filed a lawsuit seeking dissolution of the NRA 2 based on allegations that (1) the NRA has exceeded the authority conferred upon it by New York law and has conducted its business in a persistently illegal manner and abused its powers contrary to the public policy of the state of New York by operating without effective oversight or control by its officers and directors, and (2) the directors or members in control of the NRA have looted or wasted the corporate assets, have perpetuated the corporation solely for their personal benefit, or have otherwise acted in an illegal, oppressive, or fraudulent manner. The NRA filed this case seeking the protection of the Bankruptcy Code to preserve itself as a going concern in the face of litigation that, it argues, poses an existential threat. Debtors commonly file bankruptcy when faced with a judgment that has, or will, render them insolvent, but the threat against the NRA differs from the classic scenario in that dissolution would not be a collateral effect of litigation but rather the intended relief sought in a state’s regulatory action. And in this instance, dissolution could only occur after judicial consideration of whether dissolution is in the best interest of the public. The question the Court is faced with is whether the existential threat facing the NRA is the type of threat that the Bankruptcy Code is meant to protect against. The Court believes it is not. For the reasons stated herein, the Court finds there is cause to dismiss this bankruptcy case as not having been filed in good faith both because it was filed to gain an unfair litigation advantage and because it was filed to avoid a state regulatory scheme. The Court further finds the appointment of a trustee or examiner would, at this time, not be in the best interests of creditors and the estate. I.Jurisdiction and Venue
This Court has jurisdiction to consider this matter under 28 U.S.C. §§ 157 and 1334. This is a core proceeding under 28 U.S.C. § 157(b)(2)(A). Venue is proper in this District under 28 U.S.C. §§ 1408 and 1409. II.Relevant Background
The NRA is a charitable not-for-profit corporation chartered by special act of the New York State Legislature on November 17, 1871. The NRA has approximately five million members, almost 500 employees, and annual revenue of approximately $300 million. The NRA is primarily supported by dues from members and private contributions from donors. Around the middle of 2017, NRA Board Member Tom King received a phone call from Eric Schneiderman, who at the time was the New York attorney general.1 According to Mr. King, Mr. Schneiderman told him that investigations into the NRA were being opened and they should “prepare for the worst.”2 Mr. King shared this message with Wayne LaPierre,3 the NRA’s executive vice president.4 In response to this warning, Mr. LaPierre testified that he decided the “NRA ought to take a look at everything, a 360-degree look to make sure we were in total compliance with New York State not-for-profit law, and if we weren’t, we needed to fix things.”5This was the beginning of what the NRA now refers to as its course correction.6As part of its course correction, the NRA hired the law firm Morgan, Lewis & Bockius LLP to provide advice regarding tax and nonprofit governance matters.7 The NRA also hired Brewer, Attorneys & Counselors (the “Brewer Firm”) in early 2018 to aid with the course correction process and potential upcoming litigation.8 Since that time, in addition to becoming the NRA’s primary litigation counsel, the Brewer Firm appears to have become involved in many aspects of the NRA. In March 2018, the NRA hired Craig Spray as its new chief financial officer.9 Before joining the NRA, Mr. Spray served as the chief financial officer for two different companies, one of which was a publicly traded company valued at over $1 billion. On April 19, 2018, the New York Department of Financial Services sent letters to insurers and financial institutions encouraging them to review their relationships with the NRA and consider whether such relationships harm their corporate reputations and jeopardize public safety (the “NY DFS Letter”). Less than a month later, the NRA, with the assistance of the Brewer Firm, filed a complaint in federal court in the Northern District of New York against the governor of New York and the New York Department of Financial Services regarding their alleged attempts “to deprive the NRA and its constituents of their First Amendment rights to speak freely about gun-related issues and defend their Second Amendment freedoms against encroachment.”10
In July 2018, several whistleblowers came forward with the encouragement of Mr. Spray and presented a memo to the NRA Audit Committee regarding their top concerns (the “Whistleblower Memo”).11 That list included concerns related to (1) financial conflicts of interest of senior management and board members, (2) senior management override of internal controls relating to, among other things, accounts payable procedures, travel and expense reporting, and procurement/contracts policy, (3) management making decisions in the best interests of vendors 5 instead of the NRA, (4) vague and deceptive billing practices of vendors, (5) improper reimbursement for apartments and living expenses of certain employees, and (6) lack of control over vehicle leases obtained by senior management.12
Following the presentation of the Whistleblower Memo to the Audit Committee, the NRA took several actions, including examining related party transactions and reviewing vendor contracts.13 As a result of this review process, the NRA required the inclusion of specific metrics in all contracts14 and improved documentation and recordkeeping.15 One of the more significant actions taken in response to the Whistleblower Memo was to send letters to the NRA’s vendors notifying them of the rules regarding proper invoicing.16 While most vendors complied with these new measures, some did not.17 As a result, some contracts with vendors were re-negotiated, and some were terminated.18
This goes on for a total of 38 pages but it gets the point across that the NRA isn't the squeaky clean organization they try to look like. If you want to read all of it, with all the included footnotes, the link is here:
1-redirect?event=video_description&redir_token=QUFFLUhqbXZRbnFwYlk5WkZnQWltUXZ2VGNCXy02RnVTQXxBQ.pdf
05-15-2021, 11:42 AM
#103
In both cases, you have executives with no meaningful form of accountability back to the members, no real industry or governmental oversight, no shareholders or investors looking to protect their assets, basically no-one watching the henhouse. As a nation, we tend to assume non-profits are motivated solely for the public good and give them lots of rope, but time again, we see individual leaders at large charities and non-profits fall to temptation and abuse that trust. Doesn't mean charities are bad, but it does mean people can be.
05-15-2021, 02:57 PM
#104
Are you implying something specific about AMA? Because there's a finance committee to make sure reporting is done and accountability to money spent. Then there's an independent accounting firm and an exhaustive IRS audit a couple years ago that we passed with no issues despite them combing through the books for several weeks at HQ
05-15-2021, 04:29 PM
#105
Are you implying something specific about AMA? Because there's a finance committee to make sure reporting is done and accountability to money spent. Then there's an independent accounting firm and an exhaustive IRS audit a couple years ago that we passed with no issues despite them combing through the books for several weeks at HQ
05-15-2021, 05:54 PM
#106
Are you implying something specific about AMA? Because there's a finance committee to make sure reporting is done and accountability to money spent. Then there's an independent accounting firm and an exhaustive IRS audit a couple years ago that we passed with no issues despite them combing through the books for several weeks at HQ
05-16-2021, 02:54 AM
#107
Thread Starter
Are you implying something specific about AMA? Because there's a finance committee to make sure reporting is done and accountability to money spent. Then there's an independent accounting firm and an exhaustive IRS audit a couple years ago that we passed with no issues despite them combing through the books for several weeks at HQ
https://www.documentcloud.org/docume...t-FY-2017.html
Oh, and sure enough, the IRS also audited NRA. And look where they're at today:
https://www.baltimoresun.com/news/bs...011-story.html
We see from above that neither an independent audit nor IRS audit is a guarantee of good financial health.
However, our esteemed EC member also implies that an audit, IRS or otherwise, supposedly confirms the wisdom of the fiscal decisions of AMA. Well, nothing could be further from the truth. Simply put an audit does nothing more than to verify all transactions are recorded properly, in a legal manner and that the books balance ... i.e. the math works. Whether or not the various transactions make sound business sense is a separate matter. Similarly, at no time does the IRS pass judgement on the wisdom of any transactions. Nor do they identify trends, good or bad, in the finances of the organization unless there are legal and tax implications involved.
So our EC member saying that AMA is clean because they had an external audit and an IRS audit doesn't mean a lot. The AMA's problem isn't whether the books balance, it's the DECISIONS they're making (or rather allowing "Dear Leader" and his protege) to make. Membership is considerably smaller, yet staff size remains virtually unchanged. Executive compensation growing dramatically as percentage of revenue. Spending dropping at a slower rate than revenue is dropping. And continued strategic focus on trying to recreate the AMA of the 1950's ... and failing.
Last edited by franklin_m; 05-16-2021 at 10:47 AM.
05-17-2021, 07:31 AM
#108
What I'm implying is that there's nothing illegal going on with the AMA finances. Nobody is lining their pockets or any of the other silly implications and innuendos that have been bandied about.
If you want to discuss how you feel the AMA is spending your money feel free, I don't always agree myself.
I have no idea what's going on at NRA
If you want to discuss how you feel the AMA is spending your money feel free, I don't always agree myself.
I have no idea what's going on at NRA
05-17-2021, 01:52 PM
#110
What I'm implying is that there's nothing illegal going on with the AMA finances. Nobody is lining their pockets or any of the other silly implications and innuendos that have been bandied about.
If you want to discuss how you feel the AMA is spending your money feel free, I don't always agree myself.
I have no idea what's going on at NRA
If you want to discuss how you feel the AMA is spending your money feel free, I don't always agree myself.
I have no idea what's going on at NRA
- The powers that be were doing things without the approval or knowledge of the membership, the thread about not having a posted meeting agenda prior to board meetings shows that very clearly in the case of the AMA. The fact the NRA leadership filed for bankruptcy in TEXAS, using it as a way to avoid the legal proceedings in NY, shows the same thing
- What was going on had to do with the organization's financial situation
With that said, it must also be noted that the NY AG is a Democrat and the Democratic party is doing everything it can to ban legally owned firearms and the NRA is very much in the way of that goal. I personally don't own any firearms but I'd bet many in the forums do. I did, however, take an oath to defend the country and the Constitution when I joined the Navy and that oath didn't expire when I was honorably discharged in 1988. I see the Democrats attacking one of our Constitutional rights and privileges and that makes the preservation of the NRA imperative, though the present leadership needs to go, if for no other reason than to protect the reputation and credibility of the NRA
Last edited by Hydro Junkie; 05-17-2021 at 02:05 PM.
07-04-2021, 04:25 PM
#111
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And when did this all start? When the treasury and Congress removed the gold backing from the US currency. While it was gold backed, the US dollar was one of the most stable on the planet. Now that it's not, the treasury can print(or not) as it deems appropriate rather than to replace existing worn out currency.
So, how does that relate to the AMA? If the AMA starts running short of cash reserves, it raises it's membership dues to get a quick influx of funds. Kind of like the treasury printing more money. When the AMA wants to fund a pet project, how do they get the capital to do so? They raise the membership dues. What should the AMA be doing instead? Very simple, cut costs by:
So, how does that relate to the AMA? If the AMA starts running short of cash reserves, it raises it's membership dues to get a quick influx of funds. Kind of like the treasury printing more money. When the AMA wants to fund a pet project, how do they get the capital to do so? They raise the membership dues. What should the AMA be doing instead? Very simple, cut costs by:
- laying off excess or low production staffers
- go to an E-zine rather than printing a "cash cow" magazine
- cut funding to programs that don't fit in with modern times and/or needs
- assign the staff members other tasks that others are now being paid to do that could be done in their spare time
- contract out the maintenance for the grounds and buildings rather than pay a full time staff
- cut aid to many of the corrupt countries it subsidizes
- put an income cap on legislators
- set term limits for legislators in the same way the office of the President is limited to two terms
- force Congress to meet or stay below a budgetary cap and start reducing the national debt(something I doubt the Democrats would be willing to do)
07-04-2021, 04:45 PM
#112
We've seen those kinds of goons of which you speak......
