The National Rifle Association announced that they plan on filing chapter 11 bankruptcy and dissolve the group’s incorporation with the state of New York and restructure itself as a Texas nonprofit.
According to Ammoland, the move comes at a time when the NRA is in its strongest financial condition in years. They are using the protections afforded by bankruptcy law to get out of New York and head to a more gun-friendly state.
The move appears to be a direct result of New York politicians targeting the Association with law suits. This past August the NY Attorney General sued the NRA claiming the association was misusing its funds. They claims that top NRA executives illegally diverted tens of millions of dollars for lavish personal trips, no-show contracts for associates and other questionable expenditures.
The NRA has denied any wrongdoing and believes that the lawsuit is politically motivated. They have countersued the state and will continue to pursue those actions while the restructure.
The restructuring plan looks to be a legal move and not a sign that the organization is in any type of financial or legal stress. Chapter 11 proceedings are routinely utilized by businesses, nonprofits, and organizations of all kinds to streamline legal and financial affairs.
The reorganization will be handled by Marschall Smith a form executive at 3M who as over 35 years of legal experience in such matters.
“I am honored to join the nation’s oldest and largest civil rights organization during this important time,” Smith says. “Our goal is to work through the restructuring process efficiently and quickly – even as NRA leadership approaches 2021 with renewed energy and an expanding national platform. This plan has no impact on the NRA’s most important goal: serving its membership and protecting the Second Amendment.”
NRA President Carolyn Meadows says that this restructuring will not affect the day to day business of the NRA and uphold commitments to employees, vendors, members, and other community stakeholders.
Texas Govenor Greg Abbott welcomed the news of the Organizations move and welcomed them to Texas in a tweet.
NRA may be moving to Texas.
From their letter: “Texas values the contributions of the NRA, celebrates our law-abiding members, and joins us as a partner in upholding constitutional freedom.”
Welcome to Texas—a state that safeguards the 2nd AmendmentGov. Greg Abbott via Twitter
Hopefully, this move will make the association stronger, so they can fight for our 2nd amendment rights during a time when an anti-gun administration takes over.