The NRA has survived 150 years, a corruption lawsuit, and a bankruptcy filing. But it is now staring down a potential crackup with the group's foundation attempting to split off. Ohio State University accounting professor Brian Mittendorf joins the show to explain just how much of a threat to the group's financial stability.

Mittendorf said the battle between the foundation and the NRA membership organization, which recently escalated when the foundation's leadership dropped the NRA moniker from the group's name, could be catastrophic for both. The NRA houses most of the actual operations people associate with the group, but the foundation has long served as a key financial backstop. He argued that without it, the NRA could be back on the path to devastation, and without the NRA name, the foundation could struggle to raise new funds.

He explained the complex, though not uncommon, financial setup behind the consolidated NRA, which actually involves seven different legal entities. Mittendorf said the foundation's large endowment and low expense structure have long been able to paper over some of the financial struggles of the membership organization. The NRA's latest report indicates the foundation houses nearly 70 percent of the combined organization's net assets and cash.

Mittendorf noted that the NRA is still much larger than all of the other gun-rights groups combined, despite losing huge sums of members and revenue over the past half-decade. He said the group's latest annual report shows the NRA has also managed to staunch some of the bleeding and put itself on a more sustainable path. But, ultimately, he said the foundation fight threatens to undo any progress the group has made.

Special Guest: Brian Mittendorf.

That's why we have non-profit expert and Ohio State University accounting professor Brian Mittendorf back on the show. The NRA just had its annual meeting in Atlanta, Georgia, which I was able to attend and pick up copies of the group's latest annual report. That report shows the membership dues, legal spending, and even conflicts of interest at what remains by far the nation's largest gun group.

Professor Mittendorf said the numbers showed an organization that's still in decline, and still racked by legal costs. However, he also said the NRA's slide is slowing, and there are clear opportunities for them to stabilize or even rebound.

He noted that legal spending, while still sky-high compared to their pre-scandal days, is falling. In fact, the group's new CEO said legal fees had dropped dramatically from even the time the latest report covers. Mittendorf said that alone could free up tens of millions of dollars, without raising new funds, to put toward the core services the group has cut over the years--something that could pull members back in.

Special Guest: Brian Mittendorf.

Ohio State University Accounting Professor Brian Mittendorf joins the show to give insight into what the document says and what the massive drops in revenue and membership reveal about the future of the country's most influential gun group. He says the NRA has actually improved its financial position, but only by drastically cutting back on its core services. That puts it in danger of entering a kind of "death spiral" with fewer members leading to fewer revenue and services, leading to fewer members, he said.

Allegations of corruption against NRA leadership, including CEO Wayne LaPierre, and the effects of the pandemic have combined for a serious blow to the organization. With membership shrinking, revenues have dwindled. That's forced the gun-rights behemoth to make difficult choices about cutting its training, community outreach, competitive shooting, and many more programs.

Professor Mittendorf has followed the NRA's finances for years and said the internal document obtained by The Reload is one of the most in-depth accountings ever made public. He talked about the complex makeup of the group, its bankruptcy, its legal spending, and its fascinating debt payments. Plus, he talks at length about how new planned gifts have cratered despite being a major source of long-term revenue.

Plus, Contributing Writer Jake Fogleman provides a deeper look at the NRA's membership situation. Dues have fallen by half since 2018. Membership has continually declined since then. The NRA's internal accounting contradicts its public claim it reached 6 million members in that year. Instead, it was below 5.5 million at its peak and is now closer to 4.75 million.

I also explain why the NRA's financial situation continues to matter so much. Not just for NRA members and staff, but for everyone who cares about guns. The group continues to loom large over the gun-rights fight in America by dwarfing most other groups combined.

Special Guest: Brian Mittendorf.