Podcast Summary: "The N.R.A.’s Financial Mess"

The New Yorker Radio Hour
Host: David Remnick
Guest: Mike Spies, with Aaron Davis
Release Date: April 19, 2019

Overview

This episode delves into the precarious financial and organizational state of the National Rifle Association (NRA). Host David Remnick and reporter Mike Spies investigate the deep-seated monetary issues and conflicts of interest plaguing the NRA, peeling back the layers of internal dysfunction, blurred vendor relationships, and mounting legal risks. Central to the narrative is the whistleblowing of former NRA fundraiser Aaron Davis, who describes the corrosive culture and questionable business alliances that threaten the future of the organization.

Key Discussion Points & Insights

1. Signs of Financial Distress

• Budget Cuts and Pensions: The NRA has frozen pensions and discontinued basic employee perks like free office coffee.
  • Quote (Remnick, 00:22): "The NRA had stopped providing free coffee in the office, which is never a good sign for any business."
• Urgent Fundraising: In March 2019, Wayne LaPierre sent a desperate fundraising letter warning that the organization’s survival is at stake.
  • Quote (Spies, 00:58): "'The Second Amendment cannot survive without the NRA, and the NRA cannot survive without your help right now.'"

2. Digging into the Numbers

• Borrowing and Liquidation: In 2017, the NRA borrowed millions from its foundation and officers’ life insurance, and liquidated investment funds.
• Opaque Finances: Spies’s investigation reveals a small group of insiders—executives, contractors, vendors—extracting vast sums for themselves.
  • Quote (Spies, 02:53): “A small group of NRA executives, contractors and vendors have extracted hundreds of millions of dollars… enriching themselves in the process.”

3. The Ackerman McQueen Relationship

• Ackerman's Influence: For-profit PR firm Ackerman McQueen has been entwined with the NRA for 30+ years, shaping its identity and public messaging.
  • Quote (Spies, 04:00): "When you're hearing from the NRA, most of the time you're really hearing from Ackerman McQueen."
• Cultural Disconnect: Ackerman is seen as professional marketers, not Second Amendment ideologues.
  • Quote (Davis, 03:48): "They weren't your folks who were interested in Second Amendment politics."
• High-cost Marketing: High-budget, slick fundraising materials produced by Ackerman were considered counterproductive for courting major donors.
  • Memorable Moment (05:08): Davis recalls a consultant critiquing flashy materials: “The best types of fundraising materials are black and white, with a couple of color photos.”

4. Internal Dynamics and Conflicts of Interest

• Leadership Changes: A former Ackerman executive replaces an ousted NRA fundraiser; soon, Ackerman is routing more business through the fundraising team.
  • Quote (Davis, 06:30): "They were so close to us. They were always in our offices… our budget was increasing."
• Dubious Returns: Up to 80% of fundraisers "didn't raise as much as they cost" (06:30).
• Secrecy and Concern: Staff suspicious of inside dealings; even department heads had limited budget visibility.
  • Quote (Davis, 07:14): "That was kept under wraps... I did not know where all the money went… this is not something that, oh, Aaron, feels like something's being done wrong. It was the entire department."
• Massive Spending: $41 million (12% of total expenses in 2017) went to Ackerman McQueen and affiliates (08:09).

5. Legal and Ethical Implications

• Blurred Lines: Ackerman’s profit motives clash with nonprofit standards.
  • Quote (Davis, 08:39): "They're a for profit organization… those lines were just so blurry."
• IRS and Legal Risks: Whistleblower Emily Cummins, ex-managing director of Tax and Risk Management, documented overbilling, vague invoices, and poor board oversight.
  • Quote (Spies, 09:44): “The board hasn’t been told… that’s the part that rubs up against nonprofit law.”
• Potential Consequences: New York Attorney General could sanction or potentially disband the NRA’s board if violations are substantiated.

6. Fallout and Fractures

• Lawsuit Against Ackerman: The NRA sued its long-time ad partner, reflecting internal discord and lack of transparency (12:01).
  • Quote (Spies, 12:04): "The NRA has now turned on its longtime collaborator."
• Culture of Suppression: Employees discouraged from dissent; those who speak out are shunned or marginalized.

7. Personal Reflections and Mission Betrayal

• Disillusionment: Davis describes initial pride in working at NRA, later eroded by internal culture and response to tragedies like Sandy Hook.
  • Quote (Davis, 13:10): "It kind of feels like you’re drinking the Kool Aid. While some of what NRA says is right... I don’t know if they love Americans. I don’t know if they love people that don’t look like them, because it’s all about politics and winning."
• Sandy Hook Aftermath: Response within the NRA office was more about political positioning than empathy or reflection.
  • Quote (Davis, 14:25): "After the television interview... everyone in the office was just like, 'Oh my gosh, we won.' And I don’t know how you win something like that. ...That’s not who we are as humans."
• Final Reflection: Davis laments a "sickness of the heart within NRA leadership" (15:18).

Notable Quotes & Moments

• “The Second Amendment cannot survive without the NRA, and the NRA cannot survive without your help right now.”
  – Wayne LaPierre fundraising letter, quoted by Mike Spies (00:56)

• "When you’re hearing from the NRA, most of the time you’re really hearing from Ackerman McQueen."
  – Mike Spies (04:00)

• "Up to 80% of our fundraisers didn’t raise as much as they cost."
  – Aaron Davis (06:30)

• "The board hasn’t been told of what’s embarrassing, and that’s the part that rubs up against nonprofit law."
  – Mike Spies, referencing Emily Cummins’ memos (09:44)

• "It kind of feels like you’re drinking the Kool Aid. …I just feel like there’s a sickness of the heart within NRA leadership."
  – Aaron Davis (13:10, 15:18)

Timestamps for Key Segments

• 00:09 – Introduction to the episode and context of financial stress
• 00:56 – Deep dive: The NRA’s cash crunch and borrowing
• 02:15 – Aaron Davis on the culture and allure of working at the NRA
• 03:32–05:08 – Ackerman McQueen’s role and critique of fundraising practices
• 06:05–07:50 – Insider business, budget secrecy, and staff discomfort
• 08:09 – Eye-popping spending on Ackerman McQueen
• 09:44 – Whistleblower memos and possible legal ramifications
• 12:01–12:04 – NRA sues Ackerman McQueen, public unraveling
• 13:10–15:20 – Aaron Davis’s disillusionment and the Sandy Hook aftermath

Tone and Perspective

The tone is investigative and somber, blending rigorous financial analysis with personal testimony and critical reflection on morality, leadership, and the nonprofit sector. The episode is especially poignant in how it contrasts the public perception of the NRA with the private anxieties and ethical struggles within the organization.

For more reporting, see Mike Spies’s work at newyorker.com