1 Group Check CHAR500 Send with fee and attachments to: NYS Office of the Attorney General Charities Bureau Registration Section 28 Liberty Street New York, NY 10005 NYS Annual Filing for Charitable Organizations www.CharitiesNYS.com 2017 to Public Inspection Open 1. General Information 0 1 0 1 For Fiscal Year Beginning (mm/dd/yyyy) / / 2017 and Ending (mm/dd/yyyy) Name of Organization: Check if Applicable: National Rifle Association of America Address Change Mailing Address: Name Change 1 2 5 0 1 7 0 1 1 6 1 3 0 - 2 1 - 6 4 703-267-1250 Email: www.nra.orq Check your organization's registration category: 2 / Telephone: Website: Reg ID Pending 3 0 2 Fairfax, Virginia 22030 Amended Filing 1 NY Registration Number: City / State / Zip: Final Filing 3 Employer Identification Number (EIN): c/o NRA OGC, 11250 Waples Mill Road Initial Filing / 7A only gcounsel@nrahq.org EPTL only X DUAL (7A & EPTL) EXEMPT' Confirm your Registration Category in the Charities Registry at www.CharitiesNYS.com. 2. Certification See instructions for certification requirements. Improper certification is a violation of law that may be subject to penalties. The certification requires two signatories. We certi6r under penalties of perjury that we reviewed this report, including all attachments, and to the best of our knowledge and belief, they are true, correct and complete in accordance with the laws of the State of New York applicable to this report. John Frazer, Secretary • ii . President or Authorized Officer: 1- r Chief Financial Officer or Treasurer: Signaturp 3. Annual Reporting Exemption Print Name and Title Date • • , Treasurer Print NAMA and Title !late A % •• ""---S ,....- llhAF /426-7, Check the exemption(s) that apply to your filing. If your organization is claiming an exemption under one category (7A or EPTL only filers) or both categories (DUAL filers) that apply to your registration, complete only parts 1, 2, and 3, and submit the certified Char500. No fee, schedules, or additional attachments are required. If you cannot claim an exemption or are a DUAL filer that claims only one exemption, you must file applicable schedules and attachments and pay applicable fees. 3a. 7A filing exemption:Total contributions from NY State including residents, foundations, government agencies, etc. did not exceed $25,000 and the organization did not engage a professional fund raiser (PFR) or fund raising counsel (FRC) to solicit contributions during the fiscal year. 3b. EPTL filina exemption: Gross receipts did not exceed $25,000 and the market value of assets did not exceed $25,000 at any time during the fiscal year. 4. Schedules and Attachments See the following page for a checldist of X Yes schedules and attachments to complete your filing. Yes No X No 4a. Did your organization use a professional fund raiser, fund raising counsel or commercial co-venturer for fund raising activity in NY State? If yes, complete Schedule 4a. 4b. Did the organization receive government grants? If yes, complete Schedule 4b. 5. Fee See the checklist on the next page to calculate your fee(s). Indicate fee(s) you are submitting here: 7A filing fee: $ 25 EPTL filing fee: Gal 750 or Total fee: $ 775 CHAR500 Annual Filing for Charitable Organizations (Updated April 2018) *The "Exempt" category refers to an organization's NYS registration status. It does not refer to its IRS tax designation. Make a single check or money order payable to: "Department of Law" Page 1 CHAR500 Annual Filing Checklist Simply submit the certified CHAR500 with no fee, schedule, or additional attachments IF: - Your organization is registered as 7A only and you marked the 7A filing exemption in Part 3. - Your organization is registered as EPTL only and you marked the EPTL filing exemption in Part 3. - Your organization is registered as DUAL and you marked both the 7A and EPTL filing exemption in Part 3. Checklist of Schedules and Attachments Check the schedules you must submit with your CHAR500 as described in Part 4: n If you answered "yes" in Part 4a, submit Schedule 4a: Professional Fund Raisers (PFR), Fund Raising Counsel (FRC), Commercial Co-Venturers (CCV) El If you answered "yes" in Part 4b, submit Schedule 4b: Government Grants Check the financial attachments you must submit with your CHAR500: El IRS Form 990, 990-EZ, or 990-PF, and 990-T if applicable All additional IRS Form 990 Schedules, including Schedule B (Schedule of Contributors). Schedule B of public charities is exempt from disclosure I-1 and will not be available for public review. /-1 Our organization was eligible for and filed an IRS 990-N e-postcard. Our revenue exceeded $25,000 and/or our assets exceeded $25,000 in the filing year. We have included an IRS Form 990-EZ for state purposes only. If you are a 7A only or DUAL filer, submit the applicable independent Certified Public Accountant's Review or Audit Report: Review Report if you received total revenue and support greater than $250,000 and up to $750,000. ▪ Audit Report if you received total revenue and support greater than $750,000 • No Review Report or Audit Report is required because total revenue and support is less than $250,000 • We are a DUAL filer and checked box 3a, no Review Report or Audit Report is required Calculate Your Fee For 7A and DUAL filers, calculate the 7A fee: • Is my Registration Category 7A, EPTL, DUAL or EXEMPT? Organizations are assigned a Registration Category upon registration with the NY Charities Bureau: $0, if you checked the 7A exemption in Part 3a El $25, if you did not check the 7A exemption in Part 3a For EPTL and DUAL filers, calculate the EPTL fee: El $0, if you checked the EPTL exemption in Part 3b 7A filers are registered to solicit contributions in New York under Article 7-A of the Executive Law ("7A") EPTL filers are registered under the Estates, Powers & Trusts Law ("EPTL") because they hold assets and/or conduct activites for charitable purposes in NY. El $25, if the NET WORTH is less than $50,000 DUAL filers are registered under both 7A and EPTL. $50, if the NET WORTH is $50,000 or more but less than $250,000 El $100, if the NET WORTH is $250,000 or more but less than $1,000,000 • $250, if the NET WORTH is $1,000,000 or more but less than $10,000,000 • $750, if the NET WORTH is $10,000,000 or more but less than $50,000,000 • $1500, if the NET WORTH is $50,000,000 or more EXEMPT filers have registered with the NY Charities Bureau and meet conditions in Schedule E - Registration Exemption for Charitable Organizations. These organizations are not required to file annual financial reports but may do so voluntarily. Confirm your Registration Category and learn more about NY law at www.CharitiesNYS.com. Send Your Filing Send your CHAR500, all schedules and attachments, and total fee to: NYS Office of the Attorney General Charities Bureau Registration Section 28 Liberty Street New York, NY 10005 Where do I find my organization's NET WORTH? NET WORTH for fee purposes is calculated on: - IRS From 990 Part I, line 22 - IRS Form 990 EZ Part I line 21 - IRS Form 990 PF, calculate the difference between Total Assets at Fair Market Value (Part II, line 16(c)) and Total Liabilities (Part II, line 23(b)). Need Assistance? Visit: www.CharitiesNYS.com Call: (212) 416-8401 Email: Charities.Bureau@ag.ny.gov CHAR500 Annual Filing for Charitable Organizations (Updated April 2018) Page 2 CHAR500 2017 Open to Public Schedule 4a: Professional Fund Raisers, Fund Raising Counsels, Commercial Co-Venturers Inspection www.CharitiesNYS.com If you checked the box in question 4a in Part 4 on the CHAR500 Annual Filing for Charitable Organizations, complete this schedule for EACH Professional Fund Raiser (PFR), Fund Raising Counsel (FRC) or Commercial Co-Venturer (CCV) that the organization engaged for fund raising activity in NY State. The PFR or FRC should provide its NY Registration Number to you. Include this schedule with your certified CHAR500 NYS Annual Filing for Charitable Organizations and use additional pages if necessary. Definitions A Professional Fund Raiser (PFR), in addition to other activities, conducts solicitation of contributions and/or handles the donations (Article 7A, 171-a.4). A Fund Raising Counsel (FRC) does not solicit or handle contributions but limits activities to advising or assisting a charitable organization to perform such functions for itself (Article 7A, 171-a.9). A Commercial Co-Venturer (CCV) is an individual or for-profit company that is regularly and primarily engaged in trade or commerce other than raising funds for a charitable organization and who advertises that the purchase or use of goods, services, entertainment or any other thing of value will benefit a charitable organization (Article 7A, 171-a.6). Professional fund raising does not include activities by an organization's development staff, volunteers, or a grantwriter who has been hired solely to draft applications for funding from a government agency or tax exempt organization. 1. Organization Information Name of Organization: NY Registration Number: National Rifle Association of America 0 2 2 1 6 4 0 3 2. Professional Fund Raiser, Fund Raising Counsel, Commercial Co-Venturer Information Name of FRP: Fund Raising Professional type: 501c Solutions LLC Professional Fund Raiser El Fund Raising Counsel Ill Commercial Co-Venturer Mailing Address: 2530 Meridian Parkway, Suite 300 NY Registration Number: 4 5 5 3 Telephone: 919-806-4758 City / State / Zip: Research Triangle, NC 27713 3. Contract Information Contract End Date: Contract Start Date: December 31, 2018 January 1, 2018 4. Description of Services Services provided by FRP: Provides counsel and planning of events and programs as well as strategy development and research. 5. Description of Compensation Compensation arrangement with FRP: Amount Paid to FRP: $671,000 Compensation by flat fee and/or net costs reimbursement. 6. Commercial Co-Venturer (CCV) Report El Yes No If services were provided by a CCV, did the CCV provide the charitable organization with the interim or closing report(s) required by Section 173(a) part 3 of the Executive Law Article 7A? CHAR500 Schedule 4a: Professional Fund Raisers, Fund Raising Counsels, Commercial Co-Venturers (Updated April 2018) Page 1 CHAR500 2017 Open to Public Schedule 4a: Professional Fund Raisers, Fund Raising Counsels, Commercial Co-Venturers www.CharitiesNYS.com Inspection If you checked the box in question 4a in Part 4 on the CHAR500 Annual Filing for Charitable Organizations, complete this schedule for EACH Professional Fund Raiser (PFR), Fund Raising Counsel (FRC) or Commercial Co-Venturer (CCV) that the organization engaged for fund raising activity in NY State. The PFR or FRC should provide its NY Registration Number to you. Include this schedule with your certified CHAR500 NYS Annual Filing for Charitable Organizations and use additional pages if necessary. Definitions A Professional Fund Raiser (PFR), in addition to other activities, conducts solicitation of contributions and/or handles the donations (Article 7A, 171-a.4). A Fund Raising Counsel (FRC) does not solicit or handle contributions but limits activities to advising or assisting a charitable organization to perform such functions for itself (Article 7A, 171-a.9). A Commercial Co-Venturer (CCV) is an individual or for-profit company that is regularly and primarily engaged in trade or commerce other than raising funds for a charitable organization and who advertises that the purchase or use of goods, services, entertainment or any other thing of value will benefit a charitable organization (Article 7A, 171-a.6). Professional fund raising does not include activities by an organization's development staff, volunteers, or a grantwriter who has been hired solely to draft applications for funding from a government agency or tax exempt organization. 1. Organization Information Name of Organization: NY Registration Number: National Rifle Association of America 0 2 2 1 6 4 5 4 2. Professional Fund Raiser, Fund Raising Counsel, Commercial Co-Venturer Information Name of FRP: NY Registration Number: Fund Raising Professional type: 4 McKenna & Associates, LLC • Professional Fund Raiser g Fund Raising Counsel • Commercial Co-Venturer Mailing Address: 2 7 7 Telephone: (571) 312-1465 1220 N. Fillmore Street, Suite 300 City / State / Zip: Arlington, Virginia 22201 3. Contract Information Contract End Date: Contract Start Date: January 1, 2018 December 31, 2018 4. Description of Services Services provided by FRP: Provides consulting services in the area of general gift cultivation and major donor development. 5. Description of Compensation Compensation arrangement with FRP: Amount Paid to FRP: $ 860,000 Compensation by flat fee and/or net costs reimbursement. 6. Commercial Co-Venturer (CCV) Report El Yes No If services were provided by a CCV, did the CCV provide the charitable organization with the interim or closing report(s) required by Section 173(a) part 3 of the Executive Law Article 7A? CHAR500 Schedule 4a: Professional Fund Raisers, Fund Raising Counsels, Commercial Co-Venturers (Updated April 2018) Page 1 CHAR500 2017 Open to Public Inspection Schedule 4a: Professional Fund Raisers, Fund Raising Counsels, Commercial Co-Venturers www.CharitiesNYS.com If you checked the box in question 4a in Part 4 on the CHAR500 Annual Filing for Charitable Organizations, complete this schedule for EACH Professional Fund Raiser (PFR), Fund Raising Counsel (FRC) or Commercial Co-Venturer (CCV) that the organization engaged for fund raising activity in NY State. The PFR or FRC should provide its NY Registration Number to you. Include this schedule with your certified CHAR500 NYS Annual Filing for Charitable Organizations and use additional pages if necessary. Definitions A Professional Fund Raiser (PFR), in addition to other activities, conducts solicitation of contributions and/or handles the donations (Article 7A, 171-a.4). A Fund Raising Counsel (FRC) does not solicit or handle contributions but limits activities to advising or assisting a charitable organization to perform such functions for itself (Article 7A, 171-a.9). A Commercial Co-Venturer (CCV) is an individual or for-profit company that is regularly and primarily engaged in trade or commerce other than raising funds for a charitable organization and who advertises that the purchase or use of goods, services, entertainment or any other thing of value will benefit a charitable organization (Article 7A, 171-a.6). Professional fund raising does not include activities by an organization's development staff, volunteers, or a grantwriter who has been hired solely to draft applications for funding from a government agency or tax exempt organization. 1. Organization Information Name of Organization: NY Registration Number: National Rifle Association of America 0 2 2 1 6 4 0 6 2. Professional Fund Raiser, Fund Raising Counsel, Commercial Co-Venturer Information Name of FRP: Fund Raising Professional type: Allegiance Creative Group ▪ Professional Fund Raiser 111 Fund Raising Counsel • Commercial Co-Venturer Mailing Address: 11250 Waples Mill Road Suite 310 NY Registration Number: 4 2 9 7 Telephone: 703-267-1000 City / State / Zip: Fairfax, Virginia 22030 3. Contract Information Contract End Date: Contract Start Date: December 1, 2011 December 1, 2018 4. Description of Services Services provided by FRP: Provides counsel and promotion planning for marketing and direct response mail and phone programs. 5. Description of Compensation Compensation arrangement with FRP: Amount Paid to FRP: $790,000 Compensation by management commission fee and/or net costs reimbursement. 6. Commercial Co-Venturer (CCV) Report 111 Yes No If services were provided by a CCV, did the CCV provide the charitable organization with the interim or closing report(s) required by Section 173(a) part 3 of the Executive Law Article 7A? CHAR500 Schedule 4a: Professional Fund Raisers, Fund Raising Counsels, Commercial Co-Venturers (Updated April 2018) Page 1 CHAR500 2017 Open to Public Inspection Schedule 4a: Professional Fund Raisers, Fund Raising Counsels, Commercial Co-Venturers www.CharitiesNYS.com If you checked the box in question 4a in Part 4 on the CHAR500 Annual Filing for Charitable Organizations, complete this schedule for EACH Professional Fund Raiser (PFR), Fund Raising Counsel (FRC) or Commercial Co-Venturer (CCV) that the organization engaged for fund raising activity in NY State. The PFR or FRC should provide its NY Registration Number to you. Include this schedule with your certified CHAR500 NYS Annual Filing for Charitable Organizations and use additional pages if necessary. Definitions A Professional Fund Raiser (PFR), in addition to other activities, conducts solicitation of contributions and/or handles the donations (Article 7A, 171-a.4). A Fund Raising Counsel (FRC) does not solicit or handle contributions but limits activities to advising or assisting a charitable organization to perform such functions for itself (Article 7A, 171-a.9). A Commercial Co-Venturer (CCV) is an individual or for-profit company that is regularly and primarily engaged in trade or commerce other than raising funds for a charitable organization and who advertises that the purchase or use of goods, services, entertainment or any other thing of value will benefit a charitable organization (Article 7A, 171-a.6). Professional fund raising does not include activities by an organization's development staff, volunteers, or a grantwriter who has been hired solely to draft applications for funding from a government agency or tax exempt organization. 1. Organization Information Name of Organization: NY Registration Number: National Rifle Association of America 0 2 1 2 6 4 8 7 2. Professional Fund Raiser, Fund Raising Counsel, Commercial Co-Venturer Information Name of FRP: NY Registration Number: Fund Raising Professional type: 4 H.VV.S. Consulting, Inc. ▪ Professional Fund Raiser 111 Fund Raising Counsel E Commercial Co-Venturer Mailing Address: 5 5 6 Telephone: 221 Homeport Drive City / State / Zip: Grasonville, Maryland 21638 3. Contract Information Contract Start Date: July 1,2016 Contract End Date: April 1, 2023 4. Description of Services Services provided by FRP: Provides consulting services in the area of general gift cultivation and major donor development. 5. Description of Compensation Compensation arrangement with FRP: Amount Paid to FRP: $710,000 Compensation by flat fee and/or net costs reimbursement. 6. Commercial Co-Venturer (CCV) Report services were provided by a CCV, did the CCV provide the charitable organization with the interim or closing report(s) required by E Yes E No IfSection 173(a) part 3 of the Executive Law Article 7A? CHAR500 Schedule 4a: Professional Fund Raisers, Fund Raising Counsels, Commercial Co-Venturers (Updated April 2018) Page 1 CHAR500 2017 Open to Public Inspection Schedule 4a: Professional Fund Raisers, Fund Raising Counsels, Commercial Co-Venturers www.CharitiesNYS.com If you checked the box in question 4a in Part 4 on the CHAR500 Annual Filing for Charitable Organizations, complete this schedule for EACH Professional Fund Raiser (PFR), Fund Raising Counsel (FRC) or Commercial Co-Venturer (CCV) that the organization engaged for fund raising activity in NY State. The PFR or FRC should provide its NY Registration Number to you. Include this schedule with your certified CHAR500 NYS Annual Filing for Charitable Organizations and use additional pages if necessary. Definitions A Professional Fund Raiser (PFR), in addition to other activities, conducts solicitation of contributions and/or handles the donations (Article 7A, 171-a.4). A Fund Raising Counsel (FRC) does not solicit or handle contributions but limits activities to advising or assisting a charitable organization to perform such functions for itself (Article 7A, 171-a.9). A Commercial Co-Venturer (CCV) is an individual or for-profit company that is regularly and primarily engaged in trade or commerce other than raising funds for a charitable organization and who advertises that the purchase or use of goods, services, entertainment or any other thing of value will benefit a charitable organization (Article 7A, 171-a.6). Professional fund raising does not include activities by an organization's development staff, volunteers, or a grantwriter who has been hired solely to draft applications for funding from a government agency or tax exempt organization. 1. Organization Information of Organization: NY Registration Number: National Rifle Association of America 0 2 2 1 6 4 0 9 2. Professional Fund Raiser, Fund Raising Counsel, Commercial Co-Venturer Information Name of FRP: Fund Raising Professional type: InfoCision Management Corp. ▪ Professional Fund Raiser • Fund Raising Counsel ▪ Commercial Co-Venturer Mailing Address: 325 Springside Dr. NY Registration Number: 3 2 5 7 Telephone: 330-668-1400 City / State / Zip: Akron, OH 44333 3. Contract Information Contract Stan Date: Contract End Date: August 1.2011 June 30, 2020 4. Description of Services Services provided by FRP: To plan, prepare, manage, and conduct a nationally directed outbound telemarketing development campaign to active, lapsed, or potential members/donors. 5. Description of Compensation Compensation arrangement with FRP: Amount Paid to FRP: $5, 300, 038 Per call basis 6. Commercial Co-Venturer (CCV) Report Yes 111 No If services were provided by a CCV, did the CCV provide the charitable organization with the interim or closing report(s) required by Section 173(a) part 3 of the Executive Law Article 7A? CHAR500 Schedule 4a: Professional Fund Raisers, Fund Raising Counsels, Commercial Co-Venturers (Updated April 2018) Page 1 CHAR500 2017 Schedule 4a: Professional Fund Raisers, Fund Raising Counsels, Commercial Co-Venturers www.CharitiesNYS.com Open to Public Inspection If you checked the box in question 4a in Part 4 on the CHAR500 Annual Filing for Charitable Organizations, complete this schedule for EACH Professional Fund Raiser (PFR), Fund Raising Counsel (FRC) or Commercial Co-Venturer (CCV) that the organization engaged for fund raising activity in NY State. The PFR or FRC should provide its NY Registration Number to you. Include this schedule with your certified CHAR500 NYS Annual Filing for Charitable Organizations and use additional pages if necessary. Definitions A Professional Fund Raiser (PFR), in addition to other activities, conducts solicitation of contributions and/or handles the donations (Article 7A, 171-a.4). A Fund Raising Counsel (FRC) does not solicit or handle contributions but limits activities to advising or assisting a charitable organization to perform such functions for itself (Article 7A, 171-a.9). A Commercial Co-Venturer (CCV) is an individual or for-profit company that is regularly and primarily engaged in trade or commerce other than raising funds for a charitable organization and who advertises that the purchase or use of goods, services, entertainment or any other thing of value will benefit a charitable organization (Article 7A, 171-a.6). Professional fund raising does not include activities by an organization's development staff, volunteers, or a grantwriter who has been hired solely to draft applications for funding from a government agency or tax exempt organization. 1. Organization Information Name of Organization: NY Registration Number: National Rifle Association of America 0 2 2 1 6 4 2. Professional Fund Raiser, Fund Raising Counsel, Commercial Co-Venturer Information Name of FRP: NY Registration Number: Fund Raising Professional type: Rio Ammunition, Inc. • Professional Fund Raiser • Fund Raising Counsel El Commercial Co-Venturer Mailing Address: 433 E. Las Colinas Blvd, Suite 900 Telephone: 214-389-1896 City / State / Zip: Irving, Texas 75039 3. Contract Information Contract Start Date: June 15, 2018 Contrac-t End Date: June 14, 2019 4. Description of Services Services provided by FRP: Sales promotion of specific ammunition that contains the NRA logo. 5. Description of Compensation Compensation arrangement with FRP: N/A Amount Paid to FRP: 0.00 6. Commercial Co-Venturer (CCV) Report N/AYes No If services were provided by a CCV, did the CCV provide the charitable organization with the interim or closing report(s) required by Section 173(a) part 3 of the Executive Law Article 7A? Report will be provided upon completion of contract. CHAR500 Schedule 4a: Professional Fund Raisers, Fund Raising Counsels, Commercial Co-Venturers (Updated April 2018) Page 1 PUBLIC DISCLOSURE COPY Return of Organization Exempt From Income Tax F. 9 9 0 Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except private foundations) P• Do not enter social security numbers on this form as it may be made public. Open to Public Department of the Treasury P. Go to www.irs.gov/Form990 for instructions and the latest information. Ins section Internal Revenue Service A For the 2017 calendar year, or tax year beginning and endin D Employer Identification number B Chea if aPplicable: C Name of organization National Rifle Associafion of America Address change Doing business as Number and street (or P.O. box if mail is not delivered to street address) Name change Room/suite 53-0116130 11250 Waples Mill Road E City or town . Initial retum Final return/terminated State Fairfax VA Foreign country name ZIP code 22030-7400 Foreign province/state/county Foreign postal code Amended retum Application pending _G F Name and address of principal officer: Craig B. Sprat 11250 Waples Mill Road, Fairfax, VA 22030 501(c)(3) X 501(c) I Tax-exempt status: ( 4 ) 4 (insert no.) 4947(a)(1) or J Website: IlP www.nra.org K Form of organization: Part I a) 0 c co E ri) > o 0 ots to a) -..7.: -..t :4' X Telephone number 703-267-1000 Gross receipts $ 342,109,050 H(a) Is this a group retum for subordinates? Yes X No H(b) Are all subordinates Included? Yes No If "No," attach a list. (see instructions) 527 H(c) Group exemption number Corporation Trust Association Other P. L Year of formation: 1871 m State of legal domicile: 1 2 3 4 5 6 7a b Check this box I, if the organization discontinued its operations or disposed of more than 25% of its net assets. Number of voting members of the goveming body (Part VI, line 1a) 3 76 Number of independent voting members of the governing body (Part VI, line 1b) 4 69 Total number of individuals employed in calendar year 2017 (Part V, line 2a) 5 819 Total number of volunteers (estimate if necessary) 6 150,000 Total unrelated business revenue from Part VIII, column (C), line 12 7a 28,728,573 Net unrelated business taxable income from Form 990-T, line 34 7b -6,543,559 Firearms safety, education and training. Prior Year nj z c co g re ,a CII 2 cu ci. X Lii Ny Summary Briefly describe the organization's mission or most significant activities: and advocacy on behalf of safe and responsible_gun owners Current Year 8 9 Contributions and grants (Part VIII, line 1h) 124,433,466 98,026,531 Program service revenue (Part VIII, line 2g) 181,265,880 146,955,303 io Investment income (Part VIII, column (A), lines 3, 4, and 7d) -8,728 4,893,990 11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) . . . 62,111,910 61,199,085 12 Total revenue—add fines 8 through 11 (must equal Part VIII, column (A), line 12). . 366,889,703 311,987,734 13 Grants and similar amounts paid (Part IX, column (A), lines 1-3) 93,334 85,500 14 Benefits paid to or for members (Part IX, column (A), line 4) 0 0 15 Salaries, other compensation, emplOyee benefits (Part IX, column (A), lines 5-10) . , 68,330,881 66,789,561 16a Professional fundraising fees (Part IX, column (A), line 11e) 8,943,038 8,410,603 b Total fundraising expenses (Part IX, column (D), line 25) a. 34,744,651 A tt-T4gditanabatt eglea Mnie..11.1 1 17 Other expenses (Part IX, column (A), lines 11a-11d, 11f-24e) 335,910,456 254,005,718 18 Total expenses. Add lines 13—'17 (must equal Part IX, column (A), line 25) . 412,737,440 329.831,651' 19 Revenue less expenses. Subtract line 18 from line 12 -45,847,737 -17,843,917 : 6 i g 4.! 20 .,„, , c,, 21 li; = z.! 22 Part II Beginning of Current Year Total assets (Part X, line 16) Total liabilities (Part X, line 26) Net assets or fund balances. Subtract line 21 from line 20 End of Year 217,136,587 181,021,897 36,114,690 196,125,681 171,175,478 24,950,203 Signature Block Under penalties of perjury, I declare that I have examined this retum. including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of prepare (other than officer) is based on all Information of which preparer haS any knowledge. 11 /5/2018 Sign Here Signature of officer L r Craig B. Spray Type or print name and title Print/Type preparers name Paid Preparer Use Only Date Zack Fortsch Firm's name 11. Firm's address e. Treasurer Preparers signature 3 Aix. 11/5/2018 Check if self-employed PTIN PO0052725 RSM US LLP Firm's EIN IP' 41-1944416 One South Wacker Ste 800, Chicago, IL 60606 Phone no. 312-634-3400 May the IRS discuss this return with the preparer shown above? (see instructions) For Paperwork Reduction Act Notice, see the separate instructions. HTA ri Date nYes El No Form 990 (2017) Exempt Organization Declaration and Signature for Electronic Filing Form 8453-EO For calendar year 2017, or tax year beginning Department of the Treasury Intemal Revenue Service Name of exempt organization , 2017, and ending MD17 20 For use with Forms 990, 990-EZ, 990-PF, 1120-POL, and 8868 Employer Identification number _National Rifle Association of America ZEE OMB No. 1545-1879 53-0116130 Type of Return and Return Information (Whole Dollars Only) Check the box for the type of return being Med with Form 8453-EO and enter the applicable amount, if any, from the return. If you check the box on line 1a, 2a, 3a, 4a, or 5a below and the amount on that line of the return being filed with this form was blank, then leave line lb, 2b, 3b, 4b, or 5b, whichever is applicable, blank (do not enter -0-). If you entered -0- on the return, then enter -0- on the applicable line below. Do not complete more than one line in Part I. la Form 990 check here E b Total revenue, if any (Form 990, Part VIII, column (A), line 12) . . . . 2a Form 990-EZ check here 10 b Total revenue, if any (Form 990-EZ, line 9) 3a Form 1120-POL check here b Total tax (Form 1120-POL, line 22) 4a Form 990-PF check here So El b Tax based on investment income (Form 990-PF, Part VI, line 5) . 5a Form 8868 check here pp, Ej b Balance due (Form 8868, line 3c) .n 1;17111 6 Lj lb 2b 3b 4b 5b 311,987,734 0 0 0 0 Declaration of Officer I authorize the U.S. Treasury and its designated Financial Agent to initiate an Automated Clearing House (ACH) electronic funds withdrawal (direct debit) entry to the financial Institution account indicated in the tax preparation software for payment of the organization's federal taxes owed on this retum, and the financial institution to debit the entry to this account. To revoke a payment, must contact the U.S. Treasury Financial Agent at 1-888-353-4537 no later than 2 business days prior to the payment (settlement) date. I also authorize the financial institutions involved in the processing of the electronic payment of taxes to receive confidential information necessary to answer inquiries and resolve issues related to the payment. If a copy of this return is being filed with a state agency(ies) regulating charities as pad of the IRS Fed/State program, I certify that I executed the electronic disclosure consent contained within this retum allowing disclosure by the IRS of this Form 990/990-E2/990-PF (as specific,ally identified in Part I above) to the selected state agency(ies). Under penalties of perjury, I declare that I am an officer of the above named organization and that I have examined a copy of the organization's 2017 electronic return and accompanying schedules and statements, and, to the best of my knowledge and belief, they are true, correct, and complete. I further declare that the amount in Part I above is the amount shown on the copy of the organization's electronic retum. I consent to allow my intermediate service provider, transmitter, or electronic retum originator (ERO) to send the organization's retum to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission, (b) the reason for any delay in processing the retum or refund, and (c) the date of any refund. /-3 sign k r ZHU 11/5/2018 Signature of office Treasurer Title Date Declaration of Electronic Retum Originator (ERO) and Paid Preparer (see instructions) I declare that I have reviewed the above organization's retum and that the entries on Form 8453-EO are complete and correct to the best of my knowledge. If I am only a collector, I am not responsible for reviewing the return and only deciare that this form accurately reflects the data on the retum. The organization officer will have signed this form before I submit the return. I will give the officer a copy of all forms and information to be filed with the IRS, and have followed all other requirements in Pub. 4163, Modernized e-File (MeF) Information for Authorized IRS e-file Providers for Business Returns. If I am also the Paid Preparer, under penalties of perjury I declare that I have examined the above organization's return and accompanying schedules and statements, and, to the best of my knowledge and belief, they are true, correct, and complete. This Paid Preparer declaration is based on all information of which I have any knowledge. ERO's Use Only rate ERO's signature Check if also paid 1-1 I preOarer L_I ERO's SSN or PTIN Check if self0 employed I Firm's name (or EIN yours if self-employed), address, and ZIP code Phone no. Under penalties of perjury, I declare that I have examined the above retum and accompanying schedules and statements, and, to the best of my knowledge and belief, they are true. correct. and complete. Declaration of preparer is based on all information of which the preparer has any knowledge. Paid Preparer Use Only Printaype preparers name Preparers signatu e , Zack Fortsch 11/5/2018 PTIN Clteck it Crieck self1---1 selfemployed I—I employed I:=1 PO0052725_ Firm's name RSM US LLP Firm's EIN 41-1944416 Firm's address Pi' One South Wacker Ste 800 Chicecio IL 60606 Phone no. 312-634-3400 For Privacy Act and Paperwork Reduction Act Notice, see back of form. HTA Date • FOrM 8453-E0 017) Forrn 990 (2017) 2171111 National Rifle Association of America 53-0116130 1 Briefly describe the organization's mission: Per NRA Bylaws, toprotect and defend the U.S. Constitution; to promote public safety, law and order, and national defense; to train law enforcement agencies and civilians in marksmanship; topromote shooting sports and hunting. 2 Did the organization undertake any significant program services during the year which were not listed on the prior Form 990 or 990-EZ? 1:1 Yes If "Yes," describe these new services on Schedule O. Did the organization cease conducting, or make significant changes in how it conducts, any program services? Yes If "Yes," describe these changes on Schedule O. Describe the organization's program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported. 3 4 Page No E No 4a ) (Expenses $ (Code: 145,759,099 including grants of $ 93,334 ) (Revenue $ NRA membership support includes publications, education and training, field services, competitive shooting, law enforcement, hunter services, member communications services, member proarams, member services, and fulfillment of member services. The chief value of NRA membership is in g_un safety and training along with reaular reinforcement of these lessons and principles by keeping engaged with the community of outdoor lovers and safe and responsible shooting enthusiasts. NRA membership sup_port and fulfillment are dedicated to providing NFtA members with high guality support as well as content delivered throu_gh many platforms. Firearms safety remains the cornerstone of everythina the association_provides for members. 165,604,307 ) 4b ) (Expenses $ (Code: 27,086,771 including grants of $ ) (Revenue $ The NRA Institute for Le_gislative Action advocates on behalf of safe and responsible gun owners. As the foremost protector and defender of the Second Amendment, the NRA promotes firearms safety, advocates against efforts to erode aun rights and freedoms, fights for initiatives aimed at reducing violent crime, and promotes hunters' ri_ghts and conservation efforts. NRA members recognize the vital importance of NRAILA's true grassroots work to preserve the Second Amendment for future _generations of shooters and outdoor sportsmen and sportswomen. This legion of engaged and motivated members is the reason for the NRA's strength. 0_ ) 4c ) (Expenses $ 19,795,198 including grants of $ ) (Revenue $ (Code: NRA shows and exhibits include the NRA Annual Meetings and Members Exhibit Hall, held in a different city each year, and other shows around the county. The annual meetings and exhibits are presented as a celebration of American freedom featuring acres of exhibits, premier events, educational seminars and workshops, and fun-filled activities for the entire family. Dallas, Texas was the 2017 host city, Other NRA hosted expos included the Great American Outdoor Show held in Harrisburg, Pennsylvania. 21,282,325 ) 4d Other program services. (Describe in Schedule O.) 66,024,821 including grants of $ (Expenses $ 258,665,889 Total program service expenses 4e 2 Statement of Program Service Accomplishments Check if Schedule 0 contains a response or note to any line in this Part in 0 ) (Revenue $ 2,178,816 ) Form 990 (2017) Forrn 990 (2017) GEMILIN National Rifle Association of America 53-0116130 Pa e3 Checklist of Required Schedules Yes Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If "Yes," complete Schedule A 11 I 1 X 2 2 Is the organization required to complete Schedule B, Schedule of Contributots (see instructions)? 3 Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If "Yes," complete Schedule C, Part I X 3 4 Section 501(c)(3) organizations. Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year? If "Yes," complete Schedule C, Part II 4 5 Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If "Yes," complete Schedule C, Pad III 5 X 6 Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If "Yes," complete Schedule D, Part I I 66 I 7 Did the organization receive or hold a conservation easement, including easements to preserve open space, the environment, historic land areas, or historic structures? If "Yes," complete Schedule D, Part II 7 I 8 Did the organization maintain collections of works of art, historical treasures, or other similar assets? If "Yes," complete Schedule D, Part III X 8 9 Did the organization report an amount in Part X, line 21, for escrow or custodial account liability, serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If "Yes," complete Schedule D, Part IV I 9 1 10 Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If "Yes," complete Schedule D, Part V 10 X 11 If the organization's answer to any of the following questions is "Yes," then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable. a Did the organization report an amount for land, buildings, and equipment in Part X, line 10? If "Yes," complete Schedule D, Part VI. 11a X b Did the organization report an amount for investments—other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VII. 111b1 c Did the organization report an amount for investments—program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VIII. 111cI d Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part IX. 111dI 11e X e Did the organization report an amount for other liabilities in Part X, line 25? If "Yes," complete Schedule D, Patt X. . f Did the organization's separate or consolidated financial statements for the tax year include a footnote that addresses 11f X the organization's liability for uncertain tax positions under FIN 48 (ASC 740)? If "Yes," complete Schedule D, Pad . . . . 12a Did the organization obtain separate, independent audited financial statements for the tax year? If "Yes," complete Schedule D, Parts XI and XII. 12a X b Was the organization included in consolidated, independent audited financial statements for the tax year? If "Yes," . and if the organization answered "No" to line 12a, then completing Schedule D, Parts XI and XII is optional 12b X 13 Is the organization a school described in section 170(b)(1)(A)(ii)? If "Yes," complete Schedule E I 13 13 I 14a Did the organization maintain an office, employees, or agents outside of the United States? I14a I b Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more? If "Yes," complete Schedule F, Parts I and IV 14b X 15 Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or other assistance to or for any foreign organization? If "Yes," complete Schedule F, Parts II and IV 15 I 16 Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or other assistance to or for foreign individuals? If "Yes," complete Schedule F, Parts III and IV I 16 I 17 Did the organization report a total of more than $15,000 of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If "Yes," complete Schedule G, Part I (see instructions) 17 X 18 Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines lc and 8a? If "Yes," complete Schedule G, Part II 18 X 19 Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If "Yes," complete Schedule G, Part III 19 No 1 Form IX IX X IX IX I X I X IX IX IX IX X 990 (2017) Form 990 (2017) ZINO National Rifle Association of America Checklist of Required Schedules (continued) 53-0116130 Page Yes 20a Did the organization operate one or more hospital facilities? If "Yes," complete Schedule H b If "Yes" to line 20a, did the organization attach a copy of its audited financial statements to this return? 21 Did the organization report more than $5,000 of grants or other assistance to any domestic organization or domestic government on Part IX, column (A), line 1? If "Yes," complete Schedule I, Parts I and II 22 Did the organization report more than $5,000 of grants or other assistance to or for domestic individuals on Part IX, column (A), line 2? /f "Yes,"complete Schedule I, Parts I and III 23 Did the organization answer "Yes" to Part VII, Section A, line 3, 4, or 5 about compensation of the organization's current and former officers, directors, trustees, key employees, and highest compensated employees? If "Yes," complete Schedule J 24a Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If "Yes," answer lines 24b through 24d and complete Schedule K. If "No," go to line 25a b Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception'? c Did the organization maintain an escrow account other than a refunding escrow at any time during the year to defease any tax-exempt bonds? d Did the organization act as an "on behalf of' issuer for bonds outstanding at any time during the year? 25a Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If "Yes," complete Schedule L, Part I b Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization's prior Forms 990 or 990-EZ? If "Yes," complete Schedule L, Part I 26 Did the organization report any amount on Part X, line 5, 6, or 22 for receivables from or payables to any current or former officers, directors, trustees, key employees, highest compensated employees, or disqualified persons? If "Yes," complete Schedule L, Part II 27 Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If "Yes," complete Schedule L, Part III 28 Was the organization a party to a business transaction with one of the following parties (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions): a A current or former officer, director, trustee, or key employee?/f "Yes,"complete Schedule L, Part IV b A family member of a current or former officer, director, trustee, or key employee?If "Yes," complete Schedule L, Part IV c An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or direct or indirect owner?If "Yes," complete Schedule L, Part IV 29 Did the organization receive more than $25,000 in non-cash contributions? If "Yes," complete Schedule M 30 Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If "Yes," complete Schedule M 31 Did the organization liquidate, terminate, or dissolve and cease operations? If "Yes," complete Schedule N, Part I 32 Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If "Yes," complete Schedule N, Part II 33 Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If "Yes," complete Schedule R, Part I 34 Was the organization related to any tax-exempt or taxable entity? If "Yes," complete Schedule R, Part II, III, or IV, and Part V, line 1 35a Did the organization have a controlled entity within the meaning of section 512(b)(13)? b If "Yes" to line 35a, did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If "Yes," complete Schedule R, Part V, line 2 36 Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? ff "Yes," complete Schedule R, Part V, line 2 37 Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? /f "Yes," complete Schedule R, Part VI 38 Did the organization complete Schedule 0 and provide explanations in Schedule 0 for Part VI, lines 11b and 19? Note. All Form 990 filers are required to complete Schedule O. 4 No 1X I 20a I 20b 21 X 22 X 23 X IX I 24a I 24b 24c 24d I 25a I IX I 25b I IX I 26 IX IX ; 7 I 28a X 28b 28c 29 X X X 30 I 31 I IX I 32 I X I 33 I IX 34 35a X X 35b X 36 37 38 Form X X 990 (2017) Form 990 (2017) Part V National Rifle Association of America Statements Regarding Other IRS Filings and Tax Compliance Check if Schedule 0 contains a response or note to any line in this Part V 53-0116130 Page Yes la b c 2a b 3a b 4a b 5a b c 6a b 7 a b c d e f g h 8 9 a b 10 a b 11 a b 12a b 13 a b c 14a b Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable la 1,028 Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable I lb I 0 Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements, filed for the calendar year ending with or within the year covered by this return . . 2a 819 If at least one is reported on line 2a, did the organization file all required federal employment tax returns? Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-fi/e. (see instructions) Did the organization have unrelated business gross income of $1,000 or more during the year? If "Yes," has it filed a Form 990-T for this year? If "No" to fine 3b, provide an explanation in Schedute 0 At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial account)? to. If "Yes," enter the name of the foreign country: See instructions for filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction? If "Yes" to line 5a or 5b, did the organization file Form 8886-T? Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible as charitable contributions? If "Yes," did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? Organizations that may receive deductible contributions under section 170(c). Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor? If "Yes," did the organization notify the donor of the value of the goods or services provided? Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282? If "Yes," indicate the number of Forms 8282 filed during the year I 7d I Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? . . . . Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required? . . If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C? . Sponsoring organizations maintaining donor advised funds. Did a donor advised fund maintained by the sponsoring organization have excess business holdings at any time during the year? Sponsoring organizations maintaining donor advised funds. Did the sponsoring organization make any taxable distributions under section 4966? Did the sponsoring organization make a distribution to a donor, donor advisor, or related person? Section 501(c)(7) organizations. Enter: Initiation fees and capital contributions included on Part VIII, line 12 110a Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities . . . . 10b Section 501(c)(12) organizations. Enter: Gross income from members or shareholders lla Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) llb Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041? . . . . 1 .12b I If "Yes," enter the amount of tax-exempt interest received or accrued during the year Section 501(c)(29) qualified nonprofit health insurance issuers. Is the organization licensed to issue qualified health plans in more than one state? Note. See the instructions for additional information the organization must report on Schedule O. Enter the amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans 113b1 Enter the amount of reserves on hand 13c Did the organization receive any payments for indoor tanning services during the tax year? If "Yes," has it filed a Form 720 to report these payments? If "No," provide an explanation in Schedule 0 lc X 2b X 3a 3b X X 5 No _1 4a X 5a 5b Sc X X 6a X 6b X 7a 7b 7c 7e 7f __1 7h 8 9a 9b 12a 13a 14a 14b Form X 990 (2017) Form 990 (2017) Part VI National Rifle Association of America 53-0116130 Governance, Management, and Disclosure For each "Yes" response to lines 2 through 7b below, and for a "No" Page 6 response to line 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions. Check if Schedule 0 contains a response or note to any line in this Part VI Section A. Governing Body and Management Yes Enter the number of voting members of the governing body at the end of the tax year . . . . 1a 76 If there are material differences in voting rights among members of the governing body, or if the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule O. b Enter the number of voting members included in line la, above, who are independent . . . . 1b 69 2 Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? 2 3 Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors, or trustees, or key employees to a management company or other person? . . . 3 4 Did the organization make any significant changes to its goveming documents since the prior Form 990 was filed? 4 5 Did the organization become aware during the year of a significant diversion of the organization's assets? 5 6 Did the organization have members or stockholders? 6 7a Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? 7a b Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? 7b 8 Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following: a The governing body? 8a b Each committee with authority to act on behalf of the governing body? 8b 9 Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization's mailing address? If "Yes," provide the names and addresses in Schedule 0 9 Section B. Policies (This Section B requests information about policies not required by the Internal Revenue Code. No 1a X Yes 10a Did the organization have local chapters, branches, or affiliates? b If "Yes," did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes? 11a Has the organization provided a complete copy of this Form 990 to all members of its goveming body before filing the form? . b Describe in Schedule 0 the process, if any, used by the organization to review this Form 990. 12a Did the organization have a written conflict of interest policy? If "No," go to line 13 b Were officers, directors, or trustees, and key employees required to disclose annually interests that could give rise to conflicts? c Did the organization regularly and consistently monitor and enforce compliance with the policy? If "Yes," describe in Schedule 0 how this was done 10a No X 10b 11a 12a 12b 12c Did the organization have a written whistleblower policy? 13 14 X Did the organization have a written document retention and destruction policy? Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision? a The organization's CEO, Executive Director, or top management official 15a 15b b Other officers or key employees of the organization If "Yes" to line 15a or 15b, describe the process in Schedule 0 (see instructions). 16a Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? 16a b If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization's exempt status with respect to such arrangements? 16b Section C. Disclosure 17 List the states with which a copy of this Form 990 is required to be filed P. See Attached Statement 18 Section 6104 requires an organization to make its Forms 1023 (or 1024 if applicable), 990, and 990-T (Section 501(c)(3)s only) available for public inspection. Indicate how you made these available. Check all thatfly. 0 Another's website 0 Upon request Other (explain in Schedule 0) Own website i 19 Describe in Schedule 0 whether (and if so, how) the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year. 20 State the name, address, and telephone number of the person who possesses the organization's books and records: INilson H. Phillips Jr. Treasurer National Rifle Association 703-267-1000 11250 Waples Mill Road, Fairfax, VA 22030-7400 Form 990 (2017) 13 14 15 0 Form 990 (2017) GEE10111 Section A. National Rifle Association of America 53-0116130 Page 7 Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors Check if Schedule 0 contains a response or note to any line in this Part Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees la Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization's tax year. • List all of the organization's current officers, directors, trustees (whether individuals or organizations), regardless of amount of compensation. Enter -0- in columns (D), (E), and (F) if no compensation was paid. • List all of the organization's current key employees, if any. See instructions for definition of "key employee." • List the organization's five current highest compensated employees (other than an officer, director, trustee, or key employee) who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the organization and any related organizations. • List all of the organization's former officers, key employees, and highest compensated employees who received more than $100,000 of reportable compensation from the organization and any related organizations. • List all of the organization's former directors or trustees that received, in the capacity as a former director or trustee of the organization, more than $10,000 of reportable compensation from the organization and any related organizations. List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest compensated employees; and former such persons. Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee. (C) (A) Name and Title (B) Average hours per week (fist any hours for related organizations below dotted line) Position (do not check more than one box, unless person is both an officer and a directorftrustee) 0 5 5 0 x 0 x -ro a i2-- g a $ .,„ g. § , ..Q.. g ; p, 'fir as i i 1 gE g •5_ , , (1), 8 o ''` g 91 -c 5 CD la CD a, n 2' CD go to g i (0) Reportable compensation from the organization (VV-2/1099-MISC) (E) Reportable compensation from related organizations (W-2/1099-MISC) (F) Estimated amount of other compensation from the organization and related organizations o o. CI) Pete R. Brownell President (2) Richard R. Childress First Vice President (3) Carolyn D. Meadows Second Vice President (4) Joseph P. DeBergalis, Jr. (throu_gh January 25 Deputy Executive Director, General Operations (5) Joe M. Allbau,gh Director (6) VVilliam H. Allen Director [7) Thomas P. Arvas Director [8) Scott L. Bach Director (9) William A. Bachenberg Director 110) Bob Barr Director 111) Ronnie G. Barrett Director 112) Clel Baudler Director 113) David E. Bennett (through April 29, 2017) Director 114) J. Kenneth Blackwell Director 20.00 1.00 10.00 1.00 10.00 1.00 50.00 0.00 1.00 0.00 1.00 0.00 1.00 1.00 1.00 0.00 1.00 1.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 X X X X X X X 3,244 X 43,827 368,805 X X ____ X _ X X X X X X X Form 990 (2017) Form 990 (2017) Part VII National Rifle Association of America 53-0116130 Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued, (A) Name and title (B) Average hours per week (list any hours for related organizations below dotted line) (C) Position (do not check more than one box, unless person is both an officer and a director/trustee) 0 5 5 0 Xmx -n a t a RI 4) ,g g § a a.' g a4 g2 g 2' °-' r. g,, 2 a 0 g 9 g •E; Pc %) g ED. i 3 (D) Reportable compensation from the organization (W-2/1099-MISC) Page 8 (F) Estimated amount of other compensation from the organization and related organizations (E) Reportable compensation from related organizations (W-2/1099-MISC) 3 0 0 6 a (15) Matt Blunt 1.00 Director 0.00 X (16) Dan Boren 1.00 Director 0.00 X (17) Robert K. Brown 1.00 0.00 X Director (18) David Butz 5.00 Director 0.00 X 150,000 (19) J. VVilliam Carter (Ihrough April 29, 2017) 1.00 Director 1.00 X 1.00 (201 Ted W. Carter Director 0.00 X (21) Patricia A. Clark 1.00 Director 0.00 X (22) Allan D. Cors 1.00 Director 0.00 X 123) Charles L. Cotton 1.00 Director 1.00 X ' 124) David G. Coy 1.00 Director 0.00 X 125) Larry E. Craig 1.00 Director 0.00 X t. lb Sub-total 522,049 0. c Total from continuation sheets to Part V1I, Section A 8,515,707 i. d Total (add lines lb and 1c) 9,037,756 2 Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization 144 0 0 0 43,827 562,146 605,973 Yes No 3 4 Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line 1a? If "Yes," complete Schedule J for such individual 3 X For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? ff "Yes,"complete Schedule J for such individual 4 X Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If "Yes," complete Schedule J for such person 5 Section B. Independent Contractors 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization's tax year. 5 (A) Name and business address (B) Description of services 325 S_pringside Dr Akron, OH 44333 InfoCision Management Corp Membership processing and 1601 NW Expressway Oklahoma City, OK 73118 Ackerman McQueen Inc Public relations and advertisi Membership Marketing Partners L 11250 Waples Mill Rd, Ste 310 Fairfax, VA 22030 Fundraising printing and mai 500 1st Ave Pittsburgh, PA 15219 Publishing Quadgraphics Inc Valtim Inc 1095 Venture Dr Forest, VA 24551 Fulfillment center 2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization 121 X (C) Compensation 24,272,991 20,324,364 11,605,255 8,123,992 7,824,001 1 Form 990 (2017) Form 990 (2017) GINIFIE11 National Rifle Association of America 53-0116130 Check if Schedule 0 contains a response or note to any line in this Part VIII. (A) (B) Total revenue e a s E z.1 E Program Service Revenue (.3 03 la Federated campaigns b Membership dues c Fundraising events d Related organizations e Government grants (contributions) . . . f All other contributions, gifts, grants, and similar amounts not included above . . . g Noncash contributions included in lines la-lf: h Total. Add lines 1a-1f la lb lc 1d le 0 0 0 19,519_,398 0 lf 78,507,133 223,995 Related or exempt function revenue (C) Unrelated business revenue (D) 9 El Revenue excluded from tax under sections 512-514 98,026,531 Business Code 18,746,000 128,209,303 0 0 0 0 146,955,303 2a Program fees b Member dues f All other program service revenue . . . . g Total. Add lines 2a-2f 3 Investment income (including dividends, interest, and other similar amounts) Income from investment of tax-exempt bond proceeds . . . 4 5 Royalties (i) Real 6a Gross rents b Less: rental expenses . . . c Rental income or (loss) . . . d Net rental income or (loss) 7a Gross amount from sales of assets other than inventory . . b Less: cost or other basis and sales expenses . . . . c Gain or (loss) d Net gain or (loss) Other Revenue Page Statement of Revenue Miscellaneous Revenue 1 la Advertisirtg. b Other unrelated business activipi c Cafe Sales d All other revenue Total. Add lines 11a-11d 12 Total revenue. See instructions. 19.752.320 -912.120 -912.120 4.053.363 4.053.363 1.161.565 1.161.565 840,627 0 (ii) Other 27,222,671 0 23,169,308 4,053,363 0 0 8a Gross income from fundraising 0 events (not including $ of contributions reported on line 1c). See Part IV, line 18 a b Less: direct expenses c Net income or (loss) from fundraising events 9a Gross income from gaming activities. See Part IV, line 19 a b Less: direct expenses c Net income or (loss) from gaming activities 10a Gross sales of inventory, less returns and allowances a b Less: cost of goods sold c Net income or (loss) from sales of inventory 840,627 0 19,752.320 (ii) Personal 1,255,235 2,167,355 -912,120 (i) Securities 18,746,000 128,209,303 1,387,378 225,813 0 17,144,417 4,558,840 Po. Business Code 541800 900004 722320 11. 12,585,5771 26,935,893 1,370,400 383,788 834,487 29,524,568 311,987,734 12,163,297 422,280 26,935,893 1,370,400 383,788 834,487 159,953,087 28,728,573 1 25 279 543 Forrn 990 (2017) National Rifle Association of America 53-0116130 Part IX Statement of Functional Expenses Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A). Form 990 (2017) Page 10 Check if Schedule 0 contains a response or note to any line in this Part IX Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII. 1 2 3 4 5 6 7 8 9 10 11 a b c d e f g 12 13 14 15 16 17 18 19 20 21 22 23 24 a b c d e 25 26 Grants and other assistance to domestic organizations domestic governments. See Part IV, line 21 Grants and other assistance to domestic individuals. See Part IV, line 22 Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV, lines 15 and 16 Benefits paid to or for members Compensation of current officers, directors, trustees, and key employees Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) Other salaries and wages Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) . . . Other employee benefits Payroll taxes Fees for services (non-employees): Management Legal Accounting Lobbying Professional fundraising services. See Part IV, line 17 . . . Investment management fees Other. (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O.) Advertising and promotion Office expenses Information technology Royalties Occupancy Travel Payments of travel or entertainment expenses for any federal, state, or local public officials Conferences, conventions, and meetings Interest Payments to affiliates Depreciation, depletion, and amortization Insurance Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.) Additional member communications expenses Additional training and community service ex_penses Additional printing and publications expenses Fulfillment materials Other All other expenses Total functional expenses. Add lines 1 through 24e . . Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and 10. if fundraising solicitation. Check here following SOP 98-2 (ASC 958-720) (A) Total expenses (B) Program service expenses 15,000 15,000 78,334 78,334 (C) Management and general expenses (D) Fundraising expenses 0 0 5,120,736 1,787,459 2,940,196 393,081 0 44,345,737 29,668,610 12,088,905 2,588,222 8,686,254 5,569,032 3,067,802 5,328,617 3,655,887 2,013,912 2,818,162 1,567,271 863,360 539,475 345,874 190,530 6,612,772 359,552 155,870 0 6,972,324 155,870 1,186,100 8,943,038 218,403 1,186,100 8,943,038 218,403 16,625,271 55,974,621 6,688,496 10,741,068 0 2,118,810 8,647,235 16,625,271 49,346,836 4,127,454 6,518,754 2,561,042 4,222,314 268,238 6,243,748 1,850,572 2,403,487 36,012 8,574,087 1,399,143 0 3,894,978 1,193,898 36,012 6,921,974 882,397 1,652,113 516,746 54,312,805 33,082,512 25,348,243 9,125,752 7,710,090 329,831,651 42,093,601 33,082,512 25,348,243 8,277,187 4,536,047 258,665,889 2,817,026 1,193,898 0 6,627,785 1,077,952 0 12,219,204 99,306 1,025,860 36,421,111 749,259 2,148,183 34,744,651 Form 990 (2017) \b i Ell. II. ill r l I?llarr. . a 20. . ?Eula. ril?a 113..? ill Illil'l? )lill luIl Form 990 (2017) Part X National Rifle Association of America 53-0116130 Page 11 Balance Sheet Check if Schedule 0 contains a response or note to any line in this Part X (A) Beginning of year Cash—non-interest-bearing Savings and temporary cash investments Pledges and grants receivable, net Accounts receivable, net Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L 6 Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary S organizations (see instructions). Complete Part II of Schedule L. es : 7 Notes and loans receivable, net 4 8 Inventories for sale or use 9 Prepaid expenses and deferred charges 10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 77,628,707 b Less: accumulated depreciation 10b 43,153,547 11 Investments—publicly traded securities 12 Investments—other securities. See Part IV, line 11 13 Investments—program-related. See Part IV, line 11 Intangible assets 14 Other assets. See Part IV, line 11 15 16 Total assets. Add lines 1 through 15 (must equal line 34) 17 Accounts payable and accrued expenses 18 Grants payable 19 Deferred revenue 20 Tax-exempt bond liabilities 21 Escrow or custodial account liability. Complete Part IV of Schedule D . . : 22 Loans and other payables to current and former officers, directors, = trustees, key employees, highest compensated employees, and = .o disqualified persons. Complete Part II of Schedule L w :3 23 Secured mortgages and notes payable to unrelated third parties _ 24 Unsecured notes and loans payable to unrelated third parties 25 Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D 26 Total liabilities. Add lines 17 through 25 1 2 3 4 5 g 13 c = u. 27 28 29 Unrestricted net assets Temporarily restricted net assets Permanently restricted net assets Organizations that do not follow SFAS 117 (ASC958), check here complete lines 30 through 34. ti 401 w 0 4 . w z 0 13,831,228 1,516,303 76,952,115 1 2 3 4 0 5 0 3,000,000 17,209,123 3,788,017 6 7 8 9 17,764,563 1,184,593 66,861,150 _.1 3,000,000 13,639,054 3,277,662 37,336,030 10c 52,018,678 11 4,048,948 12 0 13 0 14 7,436,145 15 217,136,587 16 95,398,139 17 0 18 39,424,563 19 0 20 0 21 0 34,475,160 47,415,094 646,822 0 0 7,861,583 196,125,681 90,339,532 31,402,766 _ 42 ,838 ,_124 0 22 23 . 24 3,361,071 181,021,897 25 26 2,312,080 171,175,478 -14,853,143 7,743,947 43,223,886 27 28 29 -31,779,579 11,398,818 45,330,964 0 0 0 36,114,690 217,136,587 _____ 30 31 32 33 34 24,950,203 196,125,681 _ 47,121,100 0 Organizations that follow SFAS 117 (ASC 958), check here 10. X and complete lines 27 through 29, and lines 33 and 34. : u 1 1i (B) End of year 30 31 32 33 34 I. and Capital stock or trust principal, or current funds Paid-in or capital surplus, or land, building, or equipment fund Retained earnings, endowment, accumulated income, or other funds . . Total net assets or fund balances Total liabilities and net assets/fund balances Form 990 (2017) Form 990 (2017) Part XI National Rifle Association of America 53-0116130 Page 12 Reconciliation of Net Assets Check if Schedule 0 contains a response or note to any line in this Part XI Total revenue (must equal Part VIII, column (A), line 12) Total expenses (must equal Part IX, column (A), line 25) Revenue less expenses. Subtract line 2 from line 1 Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) Net unrealized gains (losses) on investments Donated services and use of facilities Investment expenses Prior period adjustments Other changes in net assets or fund balances (explain in Schedule 0) Net assets or fund balances at end of year. Combine lines 3 through 9 (must equal Part X, line 33, column (B)) Financial Statements and Reporting Part XII 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 311,987,734 329,831,651 -17,843,917 36,114,690 2,260,961 10 24,950,203 4,419,369 Check if Schedule 0 contains a response or note to any line in this Part XII Yes 1 2a El Accrual Accounting method used to prepare the Form 990: 0 Cash El Other If the organization changed its method of accounting from a prior year or checked "Other," explain in Schedule O. Were the organization's financial statements compiled or reviewed by an independent accountant? If "Yes," check a box below to indicate whether the financial statements for the year were compiled or reviewed on a separate basis, consolidated basis, or both: El Separate basis Consolidated basis Were the organization's financial statements audited by an independent accountant? If "Yes," check a box below to indicate whether the financial statements for the year were audited on a separate basis, consolidated basis, or both: c If "Yes" to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant? If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O. As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? If "Yes," did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule 0 and describe any steps taken to undergo such audits 3a b Consolidated basis 2a Both consolidated and separate basis b Separate basis No 2b X 2c X E Both consolidated and separate basis 3a X 3b Form 990 (2017) Continuation Sheet for Form 990 Name of the Organization National Rifle Association of America Part VII Section A 53-0116130 Continuation of Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (A) (B) (C) (D) (E) (F) Name and title Average hours per week (list any hours for related organizations below dotted line) Position (check all that aPPIY) Reportable compensation from the organization Reportable compensation from related organizations (VV-2/1099-MISC) Estimated amount of other compensation from the organization and related organizations (26) John L. Cushman 0 5 5 0 ,, a. x m a ft n „a .< . g , sk gi 9 -, 2 „7<6 st9. 1 La .6 8. 45 gi 91 g p; $ 8 g 4g. .2,a, (W-2/1099-MISC) 6 5 0 w g w 1.00 X (27) William H. Dailey fthroug_h April 29, 2017) 1.00 Director 1.00 X (28) R. Lee Errney 1.00 Director 0.00 (29) Edie P. Fleeman 1.00 Director 0.00 (30) Carol Frampton 1.00 X Director 1.00 X 1.00 Director 0.00 (32) Sandra S. Froman 5.00 X Director 0.00 (33) James S. Gilmore III 1.00 Director 0.00 X _(34) Marion P. Hammer 5.00 Director 0.00 (35) Maria Heil 1.00 Director 0.00 (36) Graham Hill (starting April 29, 2017) 1.00 X X Director 1.00 X 1.00 1.00 X Director 0.00 X 1.00 Director Director 141) David A. Keene Director 142) Tom KinA Director 143) Timothy Knight Director 144) Herbert A. Lanford Jr. Director 145) Wines K. Lee (starting_January 8 2017) Director 146) Karl A. Malone 184,000 1.00 139) Roy Innis through January 8, 2017) 140) Curtis S. Jenkins 39,680 X (37) Steve Hornady Director Iv 6 0. X (31) Joel Friedman 138) Susan Howard ro a, 1.00 Director Director Page 1 of 4 Employer Identification number 0.00 X 1.00 1.00 X 1.00 1.00 X 5.00 1.00 X 1.00 0.00 X 1.00 0.00 X 1.00 0.00 X 1.00 0.00 X 32,000 Continuation Sheet for Form 990 Name of the Organization Page 2 of 4 Employer Identification number National Rifle Association of America 53-0116130 Part VII Section A Continuation of Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (A) Name and title (B) Average hours per week (list any hours for related organizations below dotted line) (47) Sean Maloney Director (48) Robert Mansell (startin.aApril 29, 2017) Director (49) Bill Miller Director (50) Owen Buz Mills Director (51) Craig Morgan Director (52) Grover Norquist Director (53) Oliver L. North Director 154) Robert A. Nosier Director _(55) Johnny Nugent Director 156) Ted Nu.gent Director _C57) Lance Olson Director 158) Melanie Pepper (starting April 29, 2017) Director 159) James W. Porter II Director 160) Peter J. Printz Director 161) Todd J. Rathner Director 162) Kim Rhode (starting May 1, 2017) Director 163) Wayne Anthony Ross Director 164) Carl T. Rowan Jr. Director 165) Don Saba Director 166) VVilliam H. Satterfield Director 167) Mercedes V. Schlepp (through October 4, 2017 Director 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 1.00 1.00 0.00 1.00 0.00 5.00 0.00 1.00 0.00 1.00 1.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 1.00 1.00 0.00 (C) Position (check all that apply) (D) (E) (F) Reportable Reportable Estimated compensation from related organizations (VV-2/1099-MISC) amount of other compensation from the organization and related organizations 5 5 0 g.K o x -,1 compensation 9, a. .L'i =4 1 ' 1 from sp, ca• E.. -. the 16, 9).- E organization .41,- PO) 8 g (VV-2/1099-MISC) a; Fn = o co co W ID Fo' o. „§-.4;. . A .2 -4-. s), .p, X X X X 6,348 X X X X X X X 90,000 X X X X X X X X X X 40,000 Continuation Sheet for Form 990 Name of the Organization Page 3 of 4 Employer Identification number National Rifle Association of America Part VII Section A 53-0116130 Continuation of Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (A) Name and title (68) Ronald L. Schmeits Director (69) Esther Q. Schneider Director (70) Steven C. Schreiner Director (71) Tom Selleck Director (72) John C. Sigler Director (73) Leroy Sisco Director _C74) Bart Skelton Director 175) Dwight D. Van Horn Director 176) Blaine Wade Director 177) Linda L. Walker Director 178) Howard J. Walter Director 179) Heidi E. Washington (starting April 29, 2017) Director 180) Allen B. West Director 181) Robert J. Wos Director 182) Donald E. Young Director 183) Wayne LaPierre CEO and Executive Vice President 184) Chris W. Cox Executive Director, NRAILA 185) Robert K. Weaver Executive Director, General Operations (former) 186) Joshua L. Powell Chief of Staff and Executive Director, General Opera 187) VVilson H. Phillips Jr. Treasurer 188) John C. Frazer Secretary and General Counsel (B) Average hours per week (list any hours for related organizations below dotted line) 5.00 1.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 1.00 0.00 60.00 1.00 58.00 1.00 0.00 0.00 50.00 0.00 29.00 11.00 50.00 1.00 (C) Position (check all that aPP1Y) 9. 5 5 0 T, a, x -n 0. It° a ..< .P, sk § a gl 1 ,q g? r_r! iff ca 1 ET $ 8 0.- a a 5 -P, I a) ca in a) a) (E) Reportable compensation from related organizations (W-2/1099-MISC) (W-211099-MISC) a) = co 13)6 . (D) Reportable compensation from the organization (F) Estimated amount of other compensation from the organization and related organizations a X X _ X . X - _ X X X 15,000 X X X X 1,000 X 0 X 0 X 0 X 0 X 1,366,688 67,289 X 1,099,762 91,432 X X X X X _ 720,000 711,396 67,670 664,313 45,683 375,332 69,899 Continuation Sheet for Form 990 Page _4 of 4 Employer Identification number Name of the Organization 53-0116130 National Rifle Association of America Part VII Section A Continuation of Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (A) (B) Name and title Average hours per week (list any hours for related organizations below dotted line) 039) Todd Grable Executive Director Membership, Affinity and Licensir (90) Michael Marcellin Managing Director, Affinity and Licensing (former (91) Tyler Schropp Executive Director, Advancement (92) Douglas Hamlin Executive Director, Publications (931 David Lehman Deputy Executive Director, NRAILA 50.00 0.00 1.00 0.00 50.00 1.00 50.00 0.00 50.00 1.00 (C) Position (check all that aPPIY) 0 5 5 a !?.- 54 0 ,T, 0 x -n § ? -; gi-s,T a E g 07. ii 5 eI - ( 4 sk 9 9; a CD a) : 1 1,1 g .t,' s,' g; 8 1 (D) (E) (F) Reportable Reportable Estimated compensation from the organization (W-2/1099-MISC) compensation from related organizations (VV-2/1099-MISC) amount of other compensation from the organization and related organizations . w w Fr; a X X 788,497 X 713,975 X 622,280 67,811 X 598,823 66,200 X 446,613 29,795 (94) (95) 196) _(97) _(98) _(99) 1100) 1101) 1102) 1103) 1104) 1105) — 1106) 1107) 1108) 1109) 56,367 SCHEDULE C (Form 990 or 990-EZ) OMB No. 1545-0047 Political Campaign and Lobbying Activities 2©17 For Organizations Exempt From Income Tax Under section 501(c) and section 527 Open to Public P, Complete if the organization is described below. Attach to Form 990 or Form 990-EZ. Ins section Go to www.irs.gov/Form990 for instructions and the latest information. If the organization answered "Yes," on Form 990, Part IV, line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then • Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C. • Section 501(c) (other than section 501(c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B. • Section 527 organizations: Complete Part I-A only. If the organization arsswered "Yes," on Form 990, Part IV, line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then • Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)): Complete Part II-A. Do not complete Part II-B. • Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B. Do not complete Part II-A. If the organization answered "Yes," on Form 990, Part IV, line 5 (Proxy Tax) (see separate instructions) or Form 990-EZ, Part V, line 35c (Proxy Tax) (see separate instructions), then Department of the Treasury Internal Revenue Service • Section 501(c)(4), (5), or (6) organizations: Complete Part III. Name of organization Employer identification number 53-0116130 National Rifle Association of America Part I-A I Complete if the organization is exempt under section 501(c) or is a section 527 organization. 1 Provide a description of the organization's direct and indirect political campaign activities in Part IV. (see instructions for definition of "political campaign activities") 2 Political campaign activity expenditures (see instructions) $ 2,968,011 3 Volunteer hours for political campaign activities (see instructions) 3,750 Part I-B Complete if the organization is exempt under section 501(c)(3). 1 Enter the amount of any excise tax incurred by the organization under section 4955 2 Enter the amount of any excise tax incurred by organization managers under section 4955 . . . $ 3 If the organization incurred a section 4955 tax, did it file Form 4720 for this year? L j Yes No Yes 4a Was a correction made? No b If "Yes," describe in Part IV. Complete if the organization is exempt under section 501(c), except section 501(0(4 1 2 3 4 5 Enter the amount directly expended by the filing organization for section 527 exempt function activities Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt function activities $ 0 0 Po $ Total exempt function expenditures. Add lines 1 and 2. Enter here and on Form 1120-POL, line 17b 0 Po $ Did the filing organization file Form 1120-POL for this year? W Yes L j No Enter the names, addresses and employer identification number (EIN) of all section 527 political organizations to which the filing organization made payments. For each organization listed, enter the amount paid from the filing organization's funds. Also enter the amount of political contributions received that were promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC). If additional space is needed, provide information in Part IV. (a) Name (b) Address 1747 Pennsylvania Ave NW Ste 80C ,„, Republican Attorneys III General Association Washington, DC 20006 r ,,,, Republican Governors 1747 Pennsylvania Ave NW Ste 25C 1" Association Washington, DC 20006 1201 F St NW Ste 675 ,,,, Republican State 14 / Leadership Committee Washington, DC 20004 ,,, NRA Political Victory Fund 11250 Wa_ples Mill Rd v.) (see Parts I-A and IV) • Fairfax, VA 22030 (e) EIN (d) Amount paid from filing organization's funds. If none, enter -0-. (e) Amount of political contributions received and promptly and directly delivered to a separate political organization. If none, enter -0-. 46-4501717 775,000 0 11-3655877 155,400 0 05-0532524 60,389 0 52-1083020 0 0 (5) (6) For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. HTA Schedule C (Form 990 or 990-EZ) 2017 13'. National Rifle Association of America 53-0116130 Schedule C (Form 990 or 990-EZ) 2017 FAigp_2 Part II-A Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)). A Check 10.0 if the filing organization belongs to an affiliated group (and list in Part IV each affiliated group member's name, address, EIN, expenses, and share of excess lobbying expenditures). B Check if the filing organization checked box A and "limited control" provisions apply. Limits on Lobbying Expenditures (The term "expenditures" means amounts paid or incurred.) (b) Affiliated group totals (a) Filing organization's totals 1a Total lobbying expenditures to influence public opinion (grass roots lobbying) b Total lobbying expenditures to influence a legislative body (direct lobbying) c Total lobbying expenditures (add lines 1a and 1b) d Other exempt purpose expenditures e Total exempt purpose expenditures (add lines 1c and 1d) f Lobbying nontaxable amount. Enter the amount from the following table in both columns. The lobbying nontaxable amount is: If the amount on line 1e, column (a) or (b) is: Not over $500,000 20% of the amount on line le. $100,000 plus 15% of the excess over $500,000. Over $500,000 but not over $1,000,000 Over $1,000,000 but not over $1,500,000 $175,000 plus 10% of the excess over $1,000,000. Over $1,500,000 but not over $17,000,000 $225,000 plus 5% of the excess over $1,500,000. $1,000,000. Over $17,000,000 g Grassroots nontaxable amount (enter 25% of line 10 h Subtract line 1g from line la. If zero or less, enter -0i Subtract line 1f from line 1c. If zero or less, enter -0j If there is an amount other than zero on either line lh or line did the organization file Form 4720 reporting section 4911 tax for this year? 0 0 0 0 0 0 0 Yes 111 No 4-Year Averaging Period Under section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below. See the separate instructions for lines 2a through 2f.) Lobbying Expenditures During 4-Year Averaging Period Calendar year (or fiscal year beginning in) 2a Lobbying nontaxable amount b Lobbying ceiling amount (150% of line 2a, column(e)) c Total lobbying expenditures d Grassroots nontaxable amount e Grassroots ceiling amount (150% of line 2d, column (e)) f Grassroots lobbying expenditures (a) 2014 (b) 2015 0 (c) 2016 0 (d) 2017 0 (e) Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Schedule C (Form 990 or 990-EZ) 2017 National Rifle Association of America 53-0116130 Schedule C (Form 990 or 990-EZ) 2017 Part II-B Page 3 Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)). 1 a b c d e f g h i j 2a b c d Yes No Amount During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of: Volunteers? Paid staff or management (include compensation in expenses reported on lines 1c through li)? Media advertisements? Mailings to members, legislators, or the public? Publications, or published or broadcast statements? Grants to other organizations for lobbying purposes? Direct contact with legislators, their staffs, government officials, or a legislative body? Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? Other activities? Total. Add lines lc through li Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? If "Yes," enter the amount of any tax incurred under section 4912 If "Yes," enter the amount of any tax incurred by organization managers under section 4912 . . . If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? 121711110 1 2 3 (b) (a) For each "Yes," response on lines /a through 1 i below, provide in Part IV a detailed description of the lobbying activity. 0 I Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6). Were substantially all (90°A, or more) dues received nondeductible by members? Did the organization make only in-house lobbying expenditures of $2,000 or less? 1 2 3 Yes X No X X Did the organization agree to carry over lobbying and political campaign activity expenditures from the prior year? . . . . Part III-B Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) and if either (a) BOTH Part III-A, lines 1 and 2, are answered "No," OR (b) Part III-A, line 3, is answered "Yes." 1 2 a b c 3 4 5 Dues, assessments and similar amounts from members Section 162(e) nondeductible lobbying and political expenditures (do not include amounts of political expenses for which the section 527(f) tax was paid). Current year Carryover from last year Total Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues . . If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? Taxable amount of lobbying and political expenditures see instructions) ;MB 1 2a 2b 2c 3 4 5 0 0 Supplemental Information Provide the descriptions required for Part I-A, line 1; Part I-B, line 4; Part I-C, line 5; Part II-A (affiliated group list); Part II-A, lines 1 and 2 (see instructions); and Part II-B, line 1. Also, complete this part for any additional information. Part I-A Line 1 Support for fundraising and administrative ex_penses of a separate segregated fund is industry standard for nonprofit orRanizations like the NRA, as allowed by law. In 2017, the NRApaid $2,968,011 fundraising and administrative expenses for the separate segreg_ated fund, NRA Political Victory Fund, as allowed by law. The NRA engaged in activities in support of its mission, which includes protecting and defendira the Constitution of the United States, especially with reference to the inalienable riaht of the individual American citizen guaranteed b_y such Constitution to acquire, possess, collect, exhibit, transport, carry, transfer ownership of, and enjoy the right to Schedule C (Form 990 or 990-EZ) 2017 National Rifle Association of America Schedule C (Form 990 or 990-EZ) 2017 GEM 53-0116130 Page 4 Supplemental Information (continued) use arms, in order that thepeople may always be in a position to exercise their lekitimate individual rikhts of self preservation and defense of family, person, and property. In pursuit of these goals of the association, the NRA spent funds directly and indirectly on political activities, which were not the primary activities of the orkanization. The NRA is organized primarily to promote social welfare and can also engage in political activities on behalf of or in opposition to candidates for political office, as allowed by law. By any measure, the percentage of funds spent by the NRA on political activities is modest in comparison to the budget devoted to the primary activities of the NRA. For instance, all ex_penditures noted on Parts I-A and I-C of Schedule C amounted to about 1% of the NRA's total expenses in 2017, as a_pplied to total ex_penses reported on Form 990, Part IX, line 25. Reporters and other readers are also kindly reminded that the separate segregated fund is a separate entity for taxpurposes. Part I-C Line 4 This informational note regards the NRA's taxes. The NRA separately files Form 1120-POL, which is not subject to public disclosure. The following information about taxes paid with the NRA's Forms 1120-POL is shared here on a voluntary basis as a service to readers and to demonstrate in good faith that the or9_anization is a taxpayer in good standink 527(f)proxy tax _ is _paid on the lesser of net investment income or certain political expenditures as defined by the federal tax code, such as when certain political communications ex_pressly advocate the election or defeat of a candidate and are made by the NRA itself rather than by the NRA's separate segregated fund. No 527(0_proxy tax was required to be paid for 2017. Historically, the amount of 527(f) proxy taxpaid with the NRA's 2016 Form 1120-POL was $20,835; the amountpaid with the NRA's 2015 Form 1120-POL was $21,817; and the amountpaid with the NRA's 2014 Form 1120-POL was $1,662,307. As another polite reminder to reporters and other readers, Form 990 information is not necessarily. expected to tie to Federal Election Commission FEC_) reporting due to different definitions and exclusions in the different regulatory regimes. Part I-C Line 5 The NRA Political Victory Fund, an independent_political action committee IPAC1 of the NRA, directly received contributions durink 2017 of $6,051,963. All contributions to the PAC were directly received from contributors. The NRA did not take possession of those contributions, nor did it or was it required to deliver or transfer those funds to the PAC. Reflecting industry Schedule C (Form 990 or 990-EZ) 2017 . nl! .l ?Jiuf? 11". ft.l.'ll .II I .Iqlrl Illx Lulu! if National Rifle Association of America Schedule C (Form 990 or 990-EZ) 2017 Part IV 53-0116130 Page 4 Supplemental Information (continued) standard and as allowed by law, the NRA provided fundraising and administrative support to the NRA Political Victory Fund as described above in line 1, but the NRA did not contribute its own funds to the NRA Political Victory Fund for the purposes of candidate or cam_paign contributions. The NRA has chosen, for full transparency, to list the NRA-PVF in the line 5 table to show these facts. Schedule C (Form 990 or 990-EZ) 2017 Illi. p! I'll. Iii. . Ill [Ell 1112'. SCHEDULE D (Form 990) Department of the Treasury Internal Revenue Service Name of the organization OMB No. 1545-0047 Supplemental Financial Statements I' 22©17 0, Complete if the organization answered "Yes" on Form 990, Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b. Open to Public Attach to Form 990. Inspection Go to www.irs.gov/Form990 for instructions and the latest information. Employer identification number National Rifle Association of America Part I 53-0116130 Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" on Form 990, Part IV, line 6. (b) Funds and other accounts (a) Donor advised funds 1 2 3 4 5 6 Total number at end of year Aggregate value of contributions to (during year) . Aggregate value of grants from (during year) . . . Aggregate value at end of year Did the organization inform all donors and donor advisors in writing that the assets held in donor advised funds are the organization's property, subject to the organization's exclusive legal control? Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit? ZEBU 1 L=1 Yes No ri Yes 1:1 No Conservation Easements. Complete if the organization answered "Yes" on Form 990, Part IV, line 7. Purpose(s) of conservation easements held by the organization (check all that apply). O Preservation of land for public use (e.g., recreation or education) 0 Preservation of a historically important land area 0 Protection of natural habitat Preservation of a certified historic structure O Preservation of open space Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation I Held at the End of the Tax Year easement on the last day of the tax year. a Total number of conservation easements 2a b Total acreage restricted by conservation easements 2b c Number of conservation easements on a certified historic structure included in (a) . 2c d Number of conservation easements included in (c) acquired after 7/25/06, and not on a historic structure listed in the National Register 2d 3 Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during the tax year 4 Number of states where property subject to conservation easement is located 5 Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and enforcement of the conservation easements it holds? Yes El No 6 Staff and volunteer hours devoted to monitoring, inspecting, handling of violations, and enforcing conservation easements during the year 2 7 Amount of expenses incurred in monitoring, inspecting, handling of violations, and enforcing conservation easements during the year 8 Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B)(i) and section 170(h)(4)(B)(ii)? l=1 Yes El No In Part XIII, describe how the organization reports conservation easements in its revenue and expense statement, and balance sheet, and include, if applicable, the text of the footnote to the organization's financial statements that describes the organization's accounting for conservation easements. $ 9 WEN Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets. Complete if the organization answered "Yes" on Form 990, Part IV, line 8. 1a b 2 a If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide, in Part XIII, the text of the footnote to its financial statements that describes these items. If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to these items: $ (i) Revenue included on Form 990, Part VIII, line 1 (ii) Assets included in Form 990, Part X $ If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the following amounts required to be reported under SFAS 116 (ASC 958) relating to these items: $ Revenue included on Form 990, Part VIII, line 1 b Assets included in Form 990, Part X For Paperwork Reduction Act Notice, see the Instructions for Form 990. HTA $ Schedule D (Form 990) 2017 Schedule D (Form 990) 2017 National Rifle Association of America 53-0116130 Page 2 GE111111 I Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued) 3 4 a Using the organization's acquisition, accession, and other records, check any of the following that are a significant use of its collection items (check all that apply): E Public exhibition d E Loan or exchange programs b E Scholarly research e 0 Other c E Preservation for future generations Provide a description of the organization's collections and explain how they further the organization's exempt purpose in Part XIII. 5 During the year, did the organization solicit or receive donations of art, historical treasures, or other similar assets to be sold to raise funds rather than to be maintained as part of the organization's collection? Part IV la b No E Yes Escrow and Custodial Arrangements. Complete if the organization answered "Yes" on Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21. Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not included on Form 990, Part X? If "Yes," explain the arrangement in Part XIII and complete the following table: Yes 0 No Amount c Beginning balance d Additions during the year e Distributions during the year f Ending balance 2a b 1c ld le lf 0 0 Yes E No Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability? If "Yes," explain the arrangement in Part XIII. Check here if the explanation has been provided on Part XIII 21A1 1=1 Endowment Funds. Complete if the or_ganization (a) Current year (b) Prior year _ (c) Two years back (d) Three years back (e) Four years back la Beginning of year balance . . . . 19,520,483 17,657,500, 16,738,628 15,706,221 12,587,566 b Contributions 1,371,910 1,482,504 1,988,178 1,346,379 2,818,471 c Net investment earnings, gains, 625,818 and losses 1,204,551 -266,970 366,395 794,093 d Grants or scholarships e Other expenditures for facilities and programs 916,400 786,344 772,538 642,077 461,526 35,574 37,728 29,798 38,290 32,383 f Administrative expenses 20,566,237 19,520,483 17,657,500 16,738,628 g End of year balance 15,706,221 2 Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as: a Board designated or quasi-endowment 100cY0 b Permanent endowment ok Ok o' c Temporarily restricted endowment The percentages on lines 2a, 2b, and 2c should equal 100%. 3a Are there endowment funds not in the possession of the organization that are held and administered for the Yes No organization by: X (i) unrelated organizations 3a(ii) X related organizations (ii) 3b X b If "Yes" on line 3a(ii), are the related organizations listed as required on Schedule R? 4 Describe in Part XIII the intended uses of the organization's endowment funds. 1217101 Land, Buildings, and Equipment. Complete if the organization answered "Yes" on Form 990. Part IV. line 11a. See Form 990. Part X, line 10. Description of property (a) Cost or other basis (investment) (b) Cost or other basis (other) la Land 0 5,380,792 0 54,253,187 b Buildings 0 c Leasehold improvements 0 0 17,994,728 d Equipment 0 0 e Other Total.Add lines la through 1e._(Column (d) must equal Forrn 990, Part X, column (B), line 10c . ) (c) Accumulated depreciation (d) Book value 30,506,886 0 12,465,903 0 I* 5,380,792 24,133,885 0 4,960,483 0 34,475,160 Schedule D (Form 990) 2017 National Rifle Association of America 53-0116130 Page 3 Investments—Other Securities. Complete if the organization answered "Yes" on Form 990, Part IV, line 11b. See Form 990, Part X, line 12. Schedule D (Form 990) 2017 Part VII (a) Description of security or category (including name of security) (c) Method of valuation: Cost or end-of-year market value (b) Book value 0 0 (1) Financial derivatives (2) Closely-held equity interests (3) Other _ (C) fp) (_E) _ (F) (G) (LI) Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.) ;MIMI 0 Investments—Program Related. Complete if the organization answered "Yes" on Form 990, Part IV, line 11c. See Form 990, Part X, line 13. (c) Method of valuation: Cost or end-of-year market value (b) Book value (a) Description of investment (1) (2) (3) (4) (5) (6) (7) (8) (9) Total. (Column (b) must equal Form 990, Part X, cot (B) line 13.) P' Part IX 0 1 Other Assets. Complete if the organization answered "Yes" on Form 990, Part IV, line 11d. See Form 990, Part X, line 15. (b) Book value (a) Description (1) (2) (3) (4) (5) (6) (7) (8) (9) Total. (Column (b) must equal Form 990, Part X, cot ;MO 1. II* (B) line 15 . ) 0 Other Liabilities. Complete if the organization answered "Yes" on Form 990, Part IV, line 11e or 11f. See Form 990, Part X, line 25. (a) Description of liability (1) Federal income taxes (2) Derivative instrument market valuation (3) Capital lease arrangement (4) Accrued sales and use taxes (5) Coupon liabili (b) Book value 0 1,175,705 943,270 149,220 43,885 (6) (7) (8) (8) Total. (Column (b) must equal F01717990, Part X,_col. (B) line 25.) O' 2,312,080 2. Liability for uncertain tax positions. In Part XIII, provide the text of the footnote to the organization's financial statements that reports the organization's fiability for uncertain tax positions under FIN 48 (ASC 740). Check here if the text of the footnote has been provided in Part XIII Schedule D (Form 990) 2017 Schedule D (Forrn 990) 2017 Part XI National Rifle Association of America 53-0116130 Page 4 Reconciliation of Revenue per Audited Financial Statements With Revenue per Return. Complete if the organization answered "Yes" on Form 990, Part IV, line 12a. 1 2 Total revenue, gains, and other support per audited financial statements Amounts included on line 1 but not on Form 990, Part VIII, line 12: a Net unrealized gains (losses) on investments 2a 2,260,061 Donated services and use of facilities 2b Recoveries of prior year grants 2c Other (Describe in Part XIII.) 2d 4,419, 4,419,369 Add lines 2a through 2d 3 Subtract line 2e from line 1 4 Amounts included on Form 990, Part VIII, line 12, but not on line 1: a Investment expenses not included on Form 990, Part VIII, line 7b 4a Other (Describe in Part XIII.) 4b -6,647, -6,647,861 Add lines 4a and 4b 5 Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12 . ) Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per 1 325,315,025 2e 3 6,679,430 318,635,595 4c 5 -6,647,861 311,987,734 Return. Complete if the organization answered "Yes" on Form 990, Part IV, line 12a. 1 2 a 3 4 a 5 Total expenses and losses per audited financial statements Amounts included on line 1 but not on Form 990, Part IX, line 25: Donated services and use of facilities Prior year adjustments Other losses Other (Describe in Part XIII . ) Add lines 2a through 2d Subtract line 2e from line 1 Amounts included on Form 990, Part IX, line 25, but not on line 1: Investment expenses not included on Form 990, Part VIII, line 7b Other (Describe in Part XIII ) Add lines 4a and 4b Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18 . ) MINIM 2a 2b 2c 2d 4a 4b 1 336,479,512 2e 3 6,726,195 329,753,317 4c 5 78,334 329,831,651 6,726, 6,726,195 78, 78,334 Supplemental Information. Provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines la and 4; Part IV, lines lb and 2b; Part V, line 4; Part X, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information. Part III Line 4 This res_ponse describes the museum collections which are held by the NRA's related organizations and curated by NRA employees. The NRA Museums promote gun collecting and preservation of history throug_h firearms. The NRA Museums include the National Firearms Museum in Fairfax, Virginia; the Frank Brownell Museum of the Southwest in Raton, New Mexico; and the NRA National S_portin_g Arms Museum at Bass Pro Shops in Springfield, Missouri. To make the NRA Museums the finest possible resource for the public, the NRA and its affiliated charities rely on generous supporters to build the exhibition and research collections through contributions of historically significant firearms. Please visit NRAmuseums.or_g for current information on the museum galleries. Part III Line 5 This res_ponse explains why the NRA may solicit or receive assets that some donors intend to be sold rather than maintained permanently. When donors intend their gifts of firearms to be sold rather than held for exhibition or research in the collections of the NRA Museums, the NRA partners with auctionhouses. Donors may choose to Schedule D (Form 990) 2017 Schedule D (Form 990) 2017 Part XIII National Rifle Association of America 53-0116130 Page 5 Supplemental Information (continued) have9uns sold for various reasons, such as to support current pro9ram services or to fund a charitable9ift annuibi or charitable trust with one of the NRA's affiliated charities. The philanthro_pic intent of each donor determines how a gift is handled. Part V Line 4 This response describes the intended uses of the organization's endowment funds. The endowment funds benefit a diverse range ofphilanthropic interests, including training in marksmanship, national shootin9 championships, women's leadership, hunters' leadership, recreational shooting, law enforcement, NRA Museums, and the National Endowment for the Protection of the Second Amendment. Part X Line 19) This informational note provides context for the derivative financial instrument disclosed as a liability. Interest rate swaps are entered into to manage interest rate risks associated with the NFtA's borrowing, and interest rate swaps are accounted for in accordance with FASB ASC 815. The NRA's interest rate swap is recorded in the balance sheet at fair value, with fair value of changes recorded as unrealized gain or loss on derivative instrument. Part X Line 10) This informational note regards the NRA's taxes. The NRA is a substantial taxpayer and remains in 9_ood standing with the tax authorities. State and local taxespaid by the NRA include sales and use taxes, real estate andpersonal property taxes, amusement taxes, and state unemployment taxes. The liability shown on Schedule D, Part X for accrued sales and use taxes relates to timing and is a small fraction of taxes paid during the _year. Additional notes regardin9 the NRA's taxes are shared on Schedule C regarding 5270 proxy taxes and on Schedule 0 regarding unrelated busines income taxes. The NRA chooses to share this additional information about the NRA's total taxes to demonstrate in good faith that the organization is a taxpayer in good standin9. Part X Line 2 This response provides the text of the footnote to the org_anization's financial statements in accordance with FASB ASC 740. Mana9ement evaluated the NRA's tax positions and concluded that the NRA had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. Generally, the NRA is no longer subject to income tax examinations by the U.S. federal, Schedule D (Form 990) 2017 Schedule D (Form 990) 2017 ;MOH National Rifle Association of America 53-0116130 Page 5 Supplemental Information (continued) state, or local authorities for years before 2014, which is the standard statute of limitations lookback_period. Part XI Line 2d This response ex_plains $4,419,369 in the reconciliation of revenue from the audited financial statements to the revenue as stated on 990. The fig_ure includes $3,466,371 aRency transactions between the NRA and NRA Foundation and $952,998 unrealized gain on derivative instrument. The agency transactions fig_ure of $3,466,371 includes endowment contributions and endowment earnings designated b_y NRA Foundation donors for eligible NRA programs. An information note reRarding the purpose of the derivative instrument is included with Schedule D, Part X, line 1(2), Part XI Line 4b This response ex_plains ($6,647,861) in the reconciliation of revenue from the audited financial statements to the revenue as stated on 990. The fig_ure includes $4,558,840 cost of goods sold, $2,167,355 rental expense, less ($78,334) offset, which were reported as expenses on the audited financial statements. Part XII Line 2d This response explains $6,726,195 in the reconciliation of expenses from the audited financial statements to the expenses as stated on 990. The figure includes $4,558,840 cost of goods sold and $2,167,355 rental expense, which are reported on Form 990, Part VIII revenue statement. Part XII Line 4b This response explains $78,344 in the reconciliation of expenses from the audited financial statements to the expenses as stated on 990. The figure is the amount of interest on endowment grants. Schedule D (Forrn 990) 2017 SCHEDULE F (Form 990) Department of the Treasury Internal Revenue Service OMB No. 1545-0047 Statement of Activities Outside the United States a)17 o• Complete if the organization answered "Yes" on Form 990, Part IV, line 14b, 15, or 16. Do Attach to Form 990. I* Go to www.irs.gov/Form990 for instructions and the latest information. Name of the organization Open to Public Ins •ection Employer Identification number National Rifle Association of America Part I 53-0116130 General Information on Activities Outside the United States. Complete if the organization answered "Yes" on Form 990, Part IV, line 14b. For grantmakers. Does the organization maintain records to substantiate the amount of its grants and other assistance, the grantees' eligibility for the grants or assistance, and the selection criteria used to award the grants or assistance? 1 2 Yes El No For grantmakers. Describe in Part V the organization's procedures for monitoring the use of its grants and other assistance outside the United States. Activities per Region. (The following Part I, line 3 table can be duplicated if additional space is needed. 3 (a) Region Central America and the (i) Caribbean (c) Number of employees, agents, and independent contractors in the region (b) Number of offices in the region (d) Activities conducted in the region (by type) (such as, fundraising, program services, investments, grants to recipients located in the region) Europe (Including (3) Iceland and Greenland) (f) Total expenditures for and investments in the region Investments 0 0 5,453,000 Program services Europe (Including (2) Iceland and Greenland) (e) If activity listed in (d) is a program service, describe specific type of service(s) in the region 0 0 Program services International smallbore prone shooting competition 59,000 Law enforcement training at U.S. Armed Forces base 5,000 0 0 (17) 3a Sub-total b Total from continuation 0 0 5,517,000 sheets to Part I . . . c Totals (add lines 3a and 3b) 0 0 0 0 0 5,517,000 (4) (6) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) For Paperwork Reduction Act Notice, see the Instructions for Form 990. HTA Schedule F (Form 990) 2017 Page 2 53-0116130 Complete if the organization answered "Yes" on Form 990, Grants and Other Assistance to Organizations or Entities Outside the United States. National Rifle Association of America Schedule F (Form 990) 2017 f C111. 1 V , 1111 (a) Name of organization 1 1 ..", 1,01 1.111, (b) IRS code section and EIN (if applicable) 'GI...FIG.11. VIII IIJ I,•,•,1 V ,... I I 1,II,.. .1.11 (d) Purpose of grant (c) Region W•J,,J,,,I. I .11 I. .. ,//.111 D..”.. ....11a11/..e.11,..,..4 II C.I.V11.1Ial I.I ..71,41,/,.. I•0 I I (e) Amount of cash grant (f) Manner of cash disbursement (g) Amount of noncash assistance (h) Description of noncash assistance (I) Method of valuation (book, FMV, appraisal, other) (1) (2) _ (3) (4) (5) (6) (7) (5) (5) (10) (11) (12) (13) (14) (15) . (16) 2 3 . Enter total number of recipient organizations listed above that are recognized as charities by the foreign country, recognized as tax-exempt by the IRS, or for which the grantee or counsel has provided a section 501(c)(3) equivalency letter Enter total number of other organizations or entities 0 Schedule F (Form 990) 2017 LIU (066 01.10A) A 010P0tIoS (9i) (a) (90 (90 (n) (n) (zi) (ii) (oil (6) (9) _ (L) (9) (9) (v) (c) (z) (i) (Jayio 'Iesmidde 'MAU 'Nooq) uownien jo poylalil (4) a3ueispse yseouou p uo4dposaa (6) aaueispse Liseouou lo lunowV (I) wawasinqsp tisra piauuevg (e) luei6 yseo lo lunowv (p) siva!dpai joiaciwnIsl (3) uo!6ai (q) aouelspse JO JUBA jo aciAi (e) •pepeau s! eoeas leuomppe J! peleo!lanp eq ueo Ped 91. au!' 'Al Ved '066 auod uo „saA„ peiemsue uoRez!ue6Jo eul eleldwoo •selels pamun Gin apIsino sienpvt!pui 93uelspsv Jam pue sweio III Ped E a6ed eopawv uoppossv ieuoReN LlOZ (066 LIA0 A) A alnPaLPS 0E1.91, LO-£9 L. .Fxnil. :r . ill .1, Ir-? 1 Iii. All! rlhfi. .I II I I'ii?ll .. 9 II II Schedule F (Fomi 990) 2017 National Rifle Association of America 53-0116130 Page 4 Foreign Forms 1 2 3 4 5 6 Was the organization a U.S. transferor of property to a foreign corporation during the tax year? If "Yes," the organization may be required to file Form 926, Retum by a U.S. Transferor of Property to a Foreign Corporation (see Instructions for Form 926) 0 Yes E No Did the organization have an interest in a foreign trust during the tax year? If "Yes," the organization may be required to separately file FOM7 3520, Annual Retum To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, and/or Form 3520-A, Annual Information Retum of Foreign Trust With a U.S. Owner (see Instructions for Forms 3520 and 3520-A; don't file with Form 990) 0 Yes E No Did the organization have an ownership interest in a foreign corporation during the tax year? If "Yes," the organization may be required to file Form 5471, Information Retum of U.S. Persons With Respect To Certain Foreign Corporations. (see Instructions for Form 5471) 1=1 Yes E No Was the organization a direct or indirect shareholder of a passive foreign investment company or a qualified electing fund during the tax year? If "Yes," the organization may be required to file FOM7 8621, Information Retum by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund. (see Instructions for Form 8621) Yes E No Did the organization have an ownership interest in a foreign partnership during the tax year? If "Yes," the organization may be required to file Form 8865, Retum of U.S. Persons With Respect to Certain Foreign Partnerships. (see Instructions for Forrn 8865) Yes E No 0 Yes E No Did the organization have any operations in or related to any boycotting countries during the tax year? If "Yes," the organization may be required to separately file Form 5713, International Boycott Report (see Instructions for FOM7 5713; don't file with FOMI 990) Schedule F (Form 990) 2017 Schedule F (Form 990) 2017 Part V National Rifle Association of America •53-0116130 Page 5 Supplemental Information Provide the information required by Part I, line 2 (monitoring of funds); Part I, line 3, column (f) (accounting method; amounts of investments vs. expenditures per region); Part II, line 1 (accounting method); Part III (accounting method); and Part III, column (c) (estimated number of recipients), as applicable. Also complete this part to provide any additional information. See instructions. Part I Line 3(1) The NRA's offshore investments follow industry standard best practices in risk management for national nonprofit institutional investors. Alternative investments reduce overall portfolio risk by reducing volatility and improvinR diversification. The NRA maintains several investment accounts that are multi-strategy funds of funds. Income from passive investments, when appropiately structured, is excluded from unrelated business income by law. This type of investment posture is common!), accepted in the U.S. exempt organization industry. 100% of the amount is the total book value of investments for that region. Part I Line 3/2) This disclosure of_program services provided in the European region refers to NRA Competitive Shootin.g Division's institutional su_pport_provided durin_a the competition for the Roberts Trophy at Century Range at Bisley Cam_p. 100% of the amount is the cash value of expenditures made by the NRA Competitive Shooting Division for necessary travel, accommodations, and related expenses. Part I Line 3/3) This disclosure of_program services provided in the European region refers to NRA Law Enforcement Division's training schoolprovided to a branch of the United States Armed Forces at a foreign military base. 100% of the amount is the cash value of expenditures made by the NRA Law Enforcement Division instructors for necessary travel and accommodations. Schedule F (Form 990) 2017 SCHEDULE G (Form 990 or 990-EZ) Department of the Treasury Internal Revenue Service Name of the organization Supplemental Information Regarding Fundraising or Gaming Activities OMB No. 1545-0047 2©17 Complete If the organization answered "Yes" on Form 990, Part IV, Ilne 17, 18, or 19, or if the organization entered more than $15,000 on Form 990-EZ, line 6a. Attach to Form 990 or Forrn 990-EZ. Open to Public O. Go to wwwirs.gov/Fortn990 for the latest instructions. Inspection Employer Identification number National Rifle Association of America 53-0116130 Fundraising Activities. Complete if the organization answered "Yes" on Form 990, Part IV, line 17. Part I Form 990-EZ filers are not required to complete this part. 1 a Indicate whether the organization raised funds through al_iy_of the following activities. Check all that apply. E Mail solicitations e Solicitation of non-government grants Li b E Internet and email solicitations f Solicitation of government grants c E Phone solicitations g Special fundraising events d 2a b In-person solicitations Did the organization have a written or oral agreement with any individual (including officers, directors, trustees, key employees listed in Form 990, Part VII) or entity in connection with professional fundraising services? EYes El No If "Yes," list the 10 highest paid individuals or entities (fundraisers) pursuant to agreements under which the fundraiser is to be compensated at least $5,000 by the organization. (I) Name and address of individual or entity (fundraiser) (II) Activity (Ili) Did fundraiser have custody or control of contributions? Yes 1 Allegiance dba Membership Advisors F Paid solicitor 11250 Waples Mill Rd Fairfax VA 22030 2 InfoCision Management Corp Paid solicitor 325 Springside Dr Akron OH 44333 3 McKenna & Associates Fundraising 2000 Clarendon Blvd Ste 200 Arlington VA consultant 4 HWS Consulting Fundraising 221 Homeport Dr Grasonville MD 21638 consultant 5 501c Solutions Fundraising 2530 Meridian Pkwy Ste 300 Research TrL consultant Fundraising 6 Sharpe Group 855 Ridge Lake Blvd Ste 300 Memphis TN consultant 7 Key & Associates Fundraising 12176 Chancery Station Cir Reston VA 20 consultant Fundraising 8 Commonwealth Group Partners 1579 Monroe Dr Ste F-341 Atlanta GA 303 consultant 9 (v) Amount paid to (or retained by) fundraiser listed in col. (I) (iv) Gross receipts from activity (v1) Amount paid to (or retained by) organization No X 27,309,487 790,000 26,519,487 X 10,026,850 5,300,038 4,726,812 X 0 860,000 0 X 0 710,000 0 X 0 671,000 0 X 0 480,000 0 X 0 72,000 0 X 0 60,000 0 0 0 0 0 0 0 10 37,336,337 8,943,038 31,246,299 Total 3 List all states in which the organization is registered or licensed to solicit contributions or has been notified it is exempt from registration or licensing. AK, AL, AR, AZ, PA, CO, CT, DC, FL, GA, HI, IL, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, NC, ND, NH, NJ , NM, NY, OH, OK, OR, PA, RI, SC, TN, UT, VA, WA, VVI, VVV For Paperwork Reduction Act Notice, see the instructions for Form 990 or 990-EZ. HTA Schedule G (Form 990 or 990-EZ) 2017 Schedule G (Form 990 or 990-EZ) 2017 Part II National Rifle Association of America (a) Event #1 (b) Event #2 NRAILA Event 1 Gross receipts 2 3 Less: Contributions . . . . Gross income (line 1 minus line 2) (c) Other events Page 2 (d) Total events (add col. (a) through col. (c)) NONE (event type) a) 53-0116130 Fundraising Events. Complete if the organization answered "Yes" on Form 990, Part IV, line 18, or reported more than $15,000 of fundraising event contributions and gross income on Form 990-EZ, lines 1 and 6b. List events with gross receipts greater than $5,000. (event type) (total number) 1,387,378 0 1 387 378 0 0 0 1 387 378 Direct Expenses (I) Ce 1,387,378 4 Cash prizes 0 0 5 Noncash prizes 0 0 6 Rent/facility costs . . . 0 0 7 Food and beverages . . 0 178 121 8 Entertainment 0 0 9 Other direct expenses . . 0 47 692 178,121 47,692 10 Direct expense summary. Add lines 4 through 9 in column (d) 11 Net income summary. Subtra line 10 from line 3, column (d) ........ . . . . . . . ZEE] (a) Bingo (b) Pull tabs/instant bingo/progressive bingo (d) Total gaming (add col. (a) through col. (c)) (c) Other gaming 1 Gross revenue 0 2 Cash prizes 0 3 Noncash prizes 0 4 Rent/facility costs . . . 0 5 Other direct expenses . . 0 ▪ ▪ Yes No 0 Yes El No 6 Volunteer labor 7 Direct expense summary. Add lines 2 through 5 in column (d) 8 Net gaming_ income summary. Subtract line 7 from line 1, column (d) El Yes 0 No R 0 0 Enter the state(s) in which the organization conducts gaming activities: a Is the organization licensed to conduct gaming activities in each of these states? b If "No," explain: 10a 225,813) 1 161,565 Gaming. Complete if the organization answered "Yes" on Form 990, Part IV, line 19, or reported more than $15,000 on Form 990-EZ, line 6a. a) 9 R 0 Yes 0 No Were any of the organization's gaming licenses revoked, suspended, or terminated during the tax year? . . . El Yes 0 No b If "Yes," explain: Schedule G (Form 990 or 990-EZ) 2017 Sc.hedule G (Form 990 or 990-EZ) 2017 National Rifle Association of America 53-0116130 Page 3 0 Yes No 11 Does the organization conduct gaming activities with nonmembers? 12 Is the organization a grantor, beneficiary or trustee of a trust, or a member of a partnership or other entity formed to administer charitable gaming? 13 a b 14 Indicate the percentage of gaming activity conducted in: The organization's facility I 13a 1 An outside facility 13b Enter the name and address of the person who prepares the organization's gaming/special events books and records: E Yes 0 No OA Name P. Address P. 15a Does the organization have a contract with a third party from whom the organization receives.gaming revenue? b If "Yes," enter the amount of gaming revenue received by the organization P. $ 0 and the amount of gaming revenue retained by the third party O. $ 0 . c If "Yes," enter name and address of the third party: riYes E No Name P. Address P. 16 Gaming manager information: Name IP Gaming manager compensation IP $ 0 Description of services provided E Director/officer 0 Employee E Independent contractor 17 Mandatory distributions: a Is the organization required under state law to make charitable distributions from the gaming proceeds to retain the state gaming license? b Enter the amount of distributions required under state law to be distributed to other exempt organizations or spent in the organization's own exempt activities during the tax year $ Part IV Yes 0 No 0 Supplemental Information. Provide the explanations required by Part I, line 2b, columns (iii) and (v); and Part III, lines 9, 9b, 10b, 15b, 15c, 16, and 17b, as applicable. Also provide any additional information. See instructions Part I Line 2b(_2) This su_pplemental information notes the distinction between 990 core form Part VIII Section B line 1 and Schedule G Part I line 2b(_2) for the filing organization's vendor InfoCision ManaRement Corp. The vendor InfoCision_provided services to the filing organization for both memberships and contributions solicitations, as shown on 990 core form Part VIII Section B line 1. Schedule G is specific to the vendor's work as a paid solicitorprovidingprofessional fundraising services. Therefore, the Schedule G disclosure excludes the membership processing services. Schedule G (Form 990 or 990-EZ) 2017 Grants and Other Assistance to Organizations, Governments, and Individuals in the United States SCHEDULE 1 (Form 990) OMB No. 1545-0047 2©17 Complete if the organization answered "Yes" on Form 990, Part IV, line 21 or 22. 10' Aftach to Form 990. P. Go to www.irs.gov/Form990 for the latest information. Department of the Treasury Internal Revenue Service Name of the organization Open to Public Insiection Employer Identification number National Rifle Association of America Part I 1 2 53-0116130 General Information on Grants and Assistance Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and the selection criteria used to award the grants or assistance? Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States. Part II E Yes 0 No Grants and Other Assistance to Domestic Organizations and Domestic Governments. Complete if the organization answered "Yes" on Form 990, Part IV, line 21, for any recipient that received more than $5,000. Part II can be duplicated if additional space is needed. 1 (a) Name and address of organization or govemment (b) EIN (c) IRC section if applicable (d) Amount of cash grant (e) Amount of noncash assistance (f) Method of valuation (book, FMV, appraisal, other) (g) Description of noncash assistance (1) National Fdn for Women Legislator 910 16th St NW Aashington, DC 2000 (2) 52-1480785 . 501(c)(3) (h) Purpose of grant or assistance Undergraduate college scholarships 15,000 (3) . (4) (5) (6) (7) (5) , (5) (10) (11) (12) 2 3 Enter total number of section 501(c)(3) and government organizations listed in the line 1 table Enter total number of other organizations listed in the line 1 table For Paperwork Reduction Act Notice, see the Instructions for Form 990. HTA 110 1 0 Schedule I (Form 990) (2017) .I. .ldali.!u..l. I?nu?ll Lil is] lull Flihal. .ilyu?xli?ii null? ll! ll 1 I'll . Hill} in . National Rifle Association of America 53-0116130 Schedule I (Form 990) (2017) 2111111 Page 2 Grants and Other Assistance to Domestic Individuals. Complete if the organization answered "Yes" on Form 990, Part IV, line 22. Part III can be duplicated if additional space is needed. (a) Type of grant or assistance NRA Jeanne E Bray Memorial Scholarship Awards 1 Program (b) Number of recipients (e) Amount of cash grant 20 (d) Amount of noncash assistance (e) Method of valuation (book, FMV, appraisal, other) (f) Description of noncash assistance 78,334 2 3 4 5 6 7 Part IV Supplemental Information. Provide the information required in Part I, line 2; Part III, column (b); and any other additional information. Part I Line 2 The National Foundation for Women Legislators partners with the National Rifle Association for the annual NFWUNRA Bill of Rights Essay Scholarship Contest for female high school juniors and seniors. The NRA actively assists National Foundation of Women Leaislators in the selection and administration of NFVVL scholarships for colleRe. NFWL scholarship ap_plications are assessed on the elements of historical research, insi9ht and_perspective, demonstrated understandinR of the American Constitution, inspirational guality, and meaningful personal connection. Scholarship awards are_paid directly to the educational institution. Part III Line 1 The NRA Jeanne E. Bray Memorial Scholarship Awards Prowam is named in honor and recognition of the groundbreaking police officer Jeanne E. Bray, a shootin9 champion and_past member of the NRA Board of Directors. Jeanne E. Bray was the first female detective on a bulary squad, which has evolved into today's modern SWAT. She was the first female police officer to earn the NRA Police Marksmanshjp "Distinauished" bar, and she won the National Women's Police Pistol Combat Championship five times from 1962 to 1967. The prowam offers scholarships of up to $2,500_per semester, up to $5,000 per year for a maximum of four years, to dependent children of any public law enforcement officer killed in the line of duty who was an NRA member at the time of death, and to dependent Schedule I (Form 990) (2017) National Rifle Association of America 53-0116130 Schedule I (Form 990) (2017) ;MEV Page 2 Grants and Other Assistance to Domestic individuals. Complete if the organization answered "Yes" on Form 990, Part IV, line 22. Part III can be du_plicated if additional space is needed. (a) Type of grant or assistance (b) Number of recipients (c) Amount of cash grant (d) Amount of noncash assistance (e) Method of valuation (book, FMV, appraisal, other) (f) Description of noncash assistance 1 2 3 4 5 6 7 Part IV Supplemental Information. Provide the information required in Part I, line 2; Part III, column (b); and any other additional information. children of any current or retired law enforcement officers who are livin_g and have current NFtA membership. The membershya restriction is permitted by law because the NRA Jeanne E. Bray Memorial Scholarship Awards Program is a 501(c)(4)_proxam. Scholarship awards are paid directly to the educational institution. Schedule I (Form 990) (2017) SCHEDULE J (Form 990) Department of the Treasury Internal Revenue Service Name of the organization Compensation Information For certain Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees Complete if the organization answered "Yes" on Form 990, Part IV, line 23. Open to Public 0'Aftach to Form 990. Inspection 0' Go to wwwirs.gov/Form990 for instructions and the latest information. Employer Identification number National Rifle Association of America JIM 53-0116130 Questions Regarding Compensation Yes la E First-class or charter travel E Housing allowance or residence for personal use Travel for companions • Payments for business use of personal residence El Tax indemnification and gross-up payments ▪ b 2 a b c 5 a b 6 a b 8 Health or social club dues or initiation fees ▪ Personal services (such as, maid, chauffeur, chef) If any of the boxes on line la are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all of the expenses described above? If "No," complete Part III to explain lb X 2 X 4a 4b 4c X X Indicate which, if any, of the following the filing organization used to establish the compensation of the organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III. 4 7 Discretionary spending account ▪ Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all directors, trustees, and officers, including the CEO/Executive Director, regarding the items checked on line la? 3 No Check the appropriate box(es) if the organization provided any of the following to or for a person listed on Form 990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items. E Compensation committee E Written employment contract E ▪ Independent compensation consultant E Form 990 of other organizations Compensation survey or study Approval by the board or compensation committee During the year, did any person listed on Form 990, Part VII, Section A, line la, with respect to the filing organization or a related organization: Receive a severance payment or change-of-control payment? Participate in, or receive payment from, a supplemental nonqualified retirement plan'? Participate in, or receive payment from, an equity-based compensation arrangement? If "Yes" to any of lines 4a—c, list the persons and provide the applicable amounts for each item in Part III. Only section 501(c)(3), 501(c)(4), and 501(c)(29) organizations must complete lines 5-9. For persons listed on Form 990, Part VII, Section A, line la, did the organization pay or accrue any compensation contingent on the revenues of: The organization? Any related organization? If "Yes" on line 5a or 5b, describe in Part III. For persons listed on Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any compensation contingent on the net earnings of: The organization? Any related organization? If "Yes" on line 6a or 6b, describe in Part III. For persons listed on Form 990, Part VII, Section A, line 1a, did the organization provide any nonfixed payments not described on lines 5 and 6? If "Yes," describe in Part III Were any amounts reported on Form 990, Part VII, paid or accrued pursuant to a contract that was subject to the initial contract exception described in Regulations section 53.4958-4(a)(3)? If "Yes," describe in Part III If "Yes" on line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-61_0? For Paperwork Reduction Act Notice, see the Instructions for Form 990. HTA Sa Sb X X X 6a 6b 7 X 8 9 9 Schedule J (Form 990) 2017 Schedule J (Form 990) 2017 Part II National Rifle Association of America 53-0116130 Page 2 Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed. For each individual whose compensation must be reported on Schedule J, report compensation from the organization on row (i) and from related organizations, described in the instructions, on row (ii). Do not list any individuals that aren't listed on Form 990, Part VII. Note: The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that individual. (B) Breakdown of W-2 and/or 1099-MISC compensation (c) Retirement and (D) Nontaxable (E) Total of columns (F) Compensation other deferred benefits (B)(i)-(D) in column (B) reported (A) Name and Title (III) Other (I) Base (II) Bonus & incentive compensation Wayne LaPierre 1 CEO and Executive Vice President Chris W. Cox 2 Executive Director, NRAILA Robert K. Weaver 3 Executive Director, General Operatio Joshua L. Powell 4 Chief of Staff and Executive Director, VVilson H. Phillips Jr. 5 Treasurer John C. Frazer 6 Secretary and General Counsel Todd Grable 7 Executive Director, Membership, Affir Michael Marcellin 8 Managing Director, Affinity and Licen Tyler Schropp 9 Executive Director, Advancement Douglas Hamlin 10 Executive Director, Publications David Lehman 11 Deputy Executive Director, NRAILA Joseph P. DeBergalis, Jr. (through sh 12 Deputy Executive Director, General C Marion P. Hammer 13 Director 14 15 16 44.522. 19,680 47,609 1,433,977 911,095 166,667 22,000. 30,000 61,432 1,191,194 0 O. 720,000. 0 0 720,000 557 172 50,000. 104,224. 15,900 51,770 779,066 525 942 . 100,000. 38,371. 19,680 26,003 709,996 . 318,621 25,000. 31 711. 15,900 53,999 445,231 . 440,541 213 769 134,187. 10,600 45,767 844,864 . 522,426 . O. 191,549. 0 0 713,975 . 492,941 . 125,000. 4,339. 15,900 51,911 690,091 . 447 381 100,000. 51,442. 15,900 50,300 665,023 . 377,000 O. 69 613. 15,900 . 13,895 476,408 . 300,500 10 396. 57,909. 10,385 33,442 412,632 . 184,000. O. O. 0 0 184,000 . . . . (I) . (ii) (i) . (ii) (i) . (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (0 (ii) (i) (ii) (i) (ii) (i) (ii) as deferred on prior Form 990 150 000. (i) . (ii) (i) . (II) 1,172,166 . compensation reportable compensation compensation 0 0 0 0 0 0 0 0 0 0 0 0 (i) . (ii) (i) . (ii) (i) , (ii) 0 , , . Schedule J (Forrn 990) 2017 National Rifle Association of America 53-0116130 Page 3 Supplemental Information Gi1111111 Provide the information, explanation, or descriptions required for Part I, lines 1a, lb, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information. Schedule J (Form 990) 2017 Part I Line la Charter travel was used on occasions when travel lqaistics or security concerns precluded other available options, and travel was properly excluded from taxable compensation. Certain compensation elements were grossed up for one individual, and the tax Rross up was properly included in taxable compensation. Housing expenses were provided for four individuals, and personal housing was properly included in taxable compensation. Dues for clubs used for business purposes were properly excluded from taxable compensation. Part I Line 4a Robert K. Weaver's employment as Executive Director of General Operations ended in 2016 and during calendaryear 2017 Mr. Weaver received taxable compensation of $720,000. Part II Line 4b The NRA has deferred compensation retirement benefit plans for certain employees and nongualified supplemental executive retirement plans for certain employees. For nonqualified plans, the filing organization decides the benefit amount and timeframe for vesting of eachparticipant using different factors particular to each relevant individual and his specific circumstances. Payouts are properly included in taxable wages and reported in W-2 income. Part II Column B(iii) Other reportable com_pensation within taxable waRes for Mr. LaPierre included $22,098 group life insurance, $18,000 457(b) plan, and $4,424 taxable personal expenses. Other reportable compensation within taxable wages for Mr. Cox included $18,000 457(b) plan, $2,610 group life insurance, and $1,390 taxable personal expenses. Other reportable compensation within taxable wages for Mr. Powell included $102,484 taxable personal expenses and $1,740 group life insurance. Other reportable compensation within taxable wages for Mr. Phillips included $18,000 457(blplan, $16,002 aroup life insurance, and $4,369 taxable personal expenses. Other reportable compensation within taxable waRes for Mr. Frazer included $18,000 457(blplan, $3,174 group life insurance, and $10,537 taxablepersonal expenses. Other reportable com_pensation within taxable wages for Mr. Grable included $132,657 taxable personal expenses and $1,530 group life insurance. Other reportable compensation within taxable wages for Mr. Schedule J (Fomi 990) 2017 53-0116130 Page 3 National Rifle Association of America Supplemental Information Provide the information, explanation, or descriptions required for Part I, lines 1a, lb, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information. Schedule J (Form 990) 2017 Marcellin included $522,246paid by an unrelated orRanization, Lockton Affinity LLC (as further detailed on Schedule 0), and 4571b1p_a_yout of $191,549. Other reportable compensation within taxable wages for Mr. Schropp included $2,611 taxable_personal expenses and $1,728 group life insurance. Other reportable compensation within taxable wages for Mr. Hamlin included $26,306 taxable personal expenses, $18,000 457(b)plan, and $7,136 Rroup life insurance. Other reportable compensation within taxable wages for Mr. Lehman included $50,263 457apayout (Including $263 interest), $18,000 457(b) plan, and $1,350 Rrpyp_life insurance. Other reportable compensation within taxable wages for Mr. DeBerg_alis included $38,644 taxable personal expenses, $18,000 457(b) plan, and $1,265 g_roup life insurance. Part II Column C Employer deposits toward benefits that will not be_paid until a future date are shown in Column C. The amount for Mr. LaPierre included $15,900 401(k) and $3,780 pension plan. The amount for Mr. Cox included $15,900 401(k), $10,320 457(f), and $3,780pension plan. The amount for Mr. Powell included $15,900 401(k). The amount for Mr. Phillips included $15,900 401(k) and $3,780pension plan. The amount for Mr. Frazer included $15,900 401(k). The amount for Mr. Grable included $10,600 401(k). The amount for Mr. Schro_pp included $15,900 401(19. The amount for Mr. Hamlin included $15,900 401(k). The amount for Mr. Lehman included $15,900 401(k). The amount for Mr. DeBergalis included $10,385 401(k). Part II Column D Nontaxable benefits are provided to employees consistent with association industry standards and best practices. Standard nontaxable benefits include employee benefits such as the employer paid portions of medical and dental plans and long-term and short-term disability_plans. Schedule J (Form 990) 2017 .l-Vtul}. 1* .lclalL. SCHEDULE L (Form 990 or 990-EZ) Transactions With Interested Persons PP Department of the Treasury Internal Revenue Service Complete if the organization answered "Yes" on Form 990, Part IV, line 25a, 25b, 26, 27, 28a, 28b, or 28c, or Form 990-EZ, Part V, line 38a or 40b. b.Attach to Form 990 or Form 990-EZ. 0, Go to www.irs.gov/Form990 for instructions and the latest information. Name of the organization Open To Public Inspection Employer Identification number National Rifle Association of America 53-0116130 Excess Benefit Transactions (section 501(c)(3), section 501(c)(4), and 501(c)(29) organizations only). GM] Complete if the organization answered "Ye§" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b. (a) Name of disqualified person I (b) Relationship between disqualified person and organization (d) Corrected? (c) Description of transaction . (1) (2) . (3) (4) . , (5) (6) 2 3 Enter the amount of tax incurred by the oraanization manaaers or disaualified persons durina the year under section 4958 $ Enter the amount of tax, if any, on line 2, above, reimbursed by the organization $ Yes No Loans to and/or From Interested Persons. Complete if the organization answered "Yes" on Form 990-EZ, Part V, line 38a or Form 990, Part IV, line 26; or if the organization reported an amount on Form 990, Part X, line 5, 6, or 22. (a) Name of interested person (b) Relationship with organization (e) Purpose of loan (d) Loan to or from the organization? To (e) Original principal amount (g) In default? (h) Approved (I) VVritten by board or agreement? committee? (f) Balance due From Yes No Yes No Yes No (1) (2) (3) (4) (9) (6) (7) (8) (9) (10) Total GiM11111 P. $ Grants or Assistance Benefiting Interested Persons. Complete if the organization answered "Yes" on Form 990, Part IV, line 27. (a) Name of interested person (b) Relationship between interested person and the organization (c) Amount of assistance 0 (d) Type of assistance I (e) Purpose of assistance (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. HTA Schedule L (Form 990 or 990-EZ) 2017 .. ll? I .I ullii .111 Schedule L (Form 990 or 990-EZ) 2017 Cr= National Rifle Association of America 53-0116130 Page 2 Business Transactions Involving Interested Persons. Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c. (a) Name of interested person (b) Relationship between interested person and the organization (c) Amount of transaction (d) Description of transaction (e) Sharing of organization's revenues? Yes (1) RCR Race Operations LLC Owner is board member 137,748 Purchase of truck for sweepstakes (2) (3) (4) (5) (6) (7) (5) (5) (10) GPM Supplemental Information Provide additional information for responses to questions on Schedule L (see instructions). No X Part IV Line (1) Vehicle was purchased at cost. The associated labor was donated. Schedule L (Form 990 or 990-EZ) 2017 SCHEDULE M (Form 990) Department of the Treasury Internal Revenue Service Name of the organization ▪ Complete if the organizations answered "Yes" on Form 990, Part IV, lines 29 or 30. ▪ Attach to Form 990. IP Go to www.irs.gov/Fonn990 for the latest information. 2©17 Open to Public Ins •ection Employer Identification number National Rifle Association of America 2NEE OMB No. 1545-0047 Noncash Contributions 53-0116130 Types of Property (a) Check if applicable (b) Number of contributions or items contributed (c) Noncash contribution amounts reported on Form 990, Part VIII, line lq (d) Method of determining noncash contribution amounts 1 2 3 4 5 Art—Works of art Art—Historical treasures . . Art—Fractional interests . . Books and publications . . . . Clothing and household goods 6 Cars and other vehicles . . . 7 Boats and planes 8 Intellectual property X Securities—Publicly traded . 5,445 223,995 Sales of comparable items 9 10 Securities—Closely held stock 11 Securities—Partnership, LLC, or trust interests 12 Securities—Miscellaneous . . 13 Qualified conservation contribution—Historic structures 14 Qualified conservation contribution—Other 15 Real estate—Residential . . 16 Real estate—Commercial . . . 17 Real estate—Other 18 Collectibles 19 Food inventory 20 Drugs and medical supplies . . 21 Taxidermy 22 Historical artifacts 23 Scientific specimens 24 Archeological artifacts . . . . 25 Other Po ( 26 Other P. ( 27 Other ( 28 Other 0. ( 29 Number of Forms 8283 received by the organization during the tax year for contributions for which the organization completed Form 8283, Part IV, Donee Acknowledgement 29 Yes 30a During the year, did the organization receive by contribution any property reported in Part I, lines 1 through 28, that it must hold for at least three years from the date of the initial contribution, and which isn't required to be used for exempt purposes for the entire holding period? 30a b If "Yes," describe the arrangement in Part II. 31 Does the organization have a gift acceptance policy that requires the review of any nonstandard X contributions? 31 32a Does the organization hire or use third parties or related organizations to solicit, process, or sell X noncash contributions? 32a b If "Yes," describe in Part II. If the organization didn't report an amount in column (c) for a type of property for which column (a) is 33 checked, describe in Part II. For Paperwork Reduction Act Notice, see the Instructions for Form 990. HTA Schedule M (Form 990) 2017 Schedule M (Form 990) 2017 Part II National Rifle Association of America 53-0116130 Page 2 Supplemental Information. Provide the information required by Part I, lines 30b, 32b, and 33, and whether the organization is reporting in Part I, column (b), the number of contributions, the number of items received, or a combination of both. Also complete this part for any additional information. Part I Line 32 On occasion and as appropriate, securities and other donated liguid or illiquid assets can be converted into cash by the outside third party specialists that _partner with the NRA to fulfill the philanthropic intentions of the donors. Schedule M (Form 990) 2017 SCHEDULE 0 Supplemental Information to Form 990 or 990-EZ OMB No. 1545-0047 (Form 990 or 990-EZ) Complete to provide information for responses to specific questions on Form 990 or 990-EZ or to provide any additional information. IP. Attach to Form 990 or 990-EZ. O' Go to wwwirs.gov/Form990 for the latest information. Open to Public Inspection Department of the Treasury Internal Revenue Service Name of the organization National Rifle Association of America M17 Employer Identification number 53-0116130 Form 990, Part III, Line 4d: Proram Service Expenses: 66,024,821, Grants and allocations: 0, Revenue: 2,178,816 This note provides further information on Part III Program Service Accomplishments. All NRA pro_gram services are centered on the NRA's core mission of firearms safety, education, and training, including messaging thatpromotes freedom and liberty. The additional program service expenses of $66,024,821 noted on 990 core form Part III line 4d include the_program services com_ponents of public affairs, executive, and advancement operations. 990 readers are encoura_ged to access NRA.org_for opportunities to continue to eng_ge with the NRA. Form 990, Part I, Section 1, Line 1: The NRA is a 501(cM membership association with four 501(p)p) public charities and a Section 527political action committee, which is a separate segregated fund. The four charities affiliated with the NRA are NRA Civil Rights Defense Fund, NRA Foundation Inc, NRA Freedom Action Foundation, and NRA Special Contribution Fund DBA NRA Whittington Center. The political action committee is NRA Political Victory Fund. See Schedule R, Part II. Service note: Individuals who would like to reduce the volume of solicitations they receive from the NRA can contact NRA Member Services and request to be_placed on the "Do Not Promote" list. This simple step will significantly reduce the amount of contact received from the NRA without affecting maRazine service, Board of Directors ballot, or membership renewal. Form 990, Part I, Line 7: This informational note regards the NRA's unrelated business income. Form 990page 1 shows_gross unrelated business revenue on line 7a and net unrelated business taxable income on line 7b. The NRA did not owe unrelated business income tax for the year 2017 because directly connected deductions were Rreater than the associated income in 2017. The main sources of NRA unrelated business income, as shown on 990 Part VIII, Column C, are certain merchandise sales from the e-commerce platforms, advertisin9_, and other activities not related to the NRA's tax exem_pt purposes at NRA television pro_grams, NRA digital online channels, and NRA Official Journals. Additional informational notes related to the NRA's taxes For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. HTA Schedule 0 (Form 990 or 990-EZ) (2017) Schedule 0 (Form 990 or 990-EZ) (2017) Name of the organization National Rifle Association of America page Employer Identification number 2 53-0116130 are shared on Schedule C regarding 527(0_proq taxes and Schedule D regarding_state and local taxes. The NRA chooses to share this extra information about the NRA's taxes in order to demonstrate in good faith that the oraanization is a taxpayer in good standing.. Form 990, Part I, Line 8: This informational note regards the NRA's contribution revenue. The vast majorit of contributions to the NRA comes from millions of small individual donors. Gifts from companies and executives in the firearms, hunting, and shooting sports industries typically comprise less than 5% of the NRA's contribution revenue every year, as applied to contribution revenue re_ported on Form 990, Part VIII, line 1. Form 990, Part VI, Section A, Line 6: The National Rifle Association is a membership association that re_presents only individual citizens. Membership dues are properly reported on Form 990, Part VIII, line 2 pursuant to the instructions for such reporting. Form 990, Part VI, Section A, Line 7a: NRA members elect all 76 members of the NRA Board of Directors. 75 directors are elected for staaaered three year terms, and the 76th director is elected for a one year term on the occasion of each Annual Meeting of Members. Form 990, Part VI, Section A, Line 7b: Certain Board of Directors decisions are subject to membership approval per NRA Bylal.vs and New York not for profit corporate law. Form 990, Part VI, Section B, Line 11 b: Form 990 is reviewed by the external auditing firm, presented to the NRA Board of Directors Audit Committee, and made available to the full NRA Board of Directors, before it is filed with the IRS. Form 990, Part VI, Section B, Line 12c: The organization's conflict of interestpolicy applies to officers, directors, and key employees of the filing organization and its affiliates, as well as to their relatives. Related party transactions and_potential conflicts are self-reported on a questionnaire that is distributed at least annually and reviewed by the Secretary and General Counsel. Issues may also be reported through other means or independently discovered by staff. Regardless of how they are reported, related_party transactions and issues of apparent conflict are presented to the bod_y designated by the Board of Directors (the Audit Committee) for ap_proval, disa_pproval, or precautionary measures as needed. Schedule 0 (Form 990 or 990-EZ) (2017) Schedule 0 (Form 990 or 990-EZ) (2017) Page Employer Identification number Name of the organization National Rifle Association of America 2 53-0116130 Form 990, Part VI, Section B, Line 15: Com_pensation of the NRA's top management officials is established by methods including independent compensation consultants, compensation surveys and studies, and comparability data. In addition, under the NRA Bylaws, compensation of certain elected officers Qncludin_g the Executive Vice President) must be approved by the Board of Directors, based on recommendations b_y the compensation committee. All decisions are _properly documented. Form 990, Part VI, Section C, Line 18: Readers are politer)/ reminded the NRA was founded 146 _years ago, in 1871. The NRA's 1944 determination letter from the Internal Revenue Service is available on Guidestar.org and can also be reguested directly from the NRA as required by law. Forms 990 can be requested directly from the NRA as required by law. Form 990, Part VI, Section C, Line 19: NRA Bylaws, audited consolidated financial statements of the NRA and affiliates, and annual reports are available upon request for the same period of disclosure as set forth in Section 6104(d). The NRA does not make internal operating policies available to the_general public. Form 990, Part VII, Section A, Line 1: This informational note re_gards service on the NRA Board of Directors, which is not compensated. Board members who received compensation in 2017 were compensated for other reasons, not for their voluntary Board service. Mr. DeBergalis was compensated as an NRA employee starting January 25, 2017, not as a Board member. Mr. Butz, Ms. Froman, Ms. Hammer, Mr. Keene, Mr. Olson, Ms. Schlepp, Mr. Skelton, and Mr. Walter were compensated for other professional services they performed for the organization. Mr. Brownell and Mr. Mills received membership recruiting commissions that were paid to their com_panies. A company owned b_y Mr. Childress was paid in a business transaction as stated on Schedule L. For thepurpose of determining the count of independent directors at December 31, 2017 shown on Part I line 3 and Part VI line lb, the seven directors not considered independent for 2017 were Mr. Butz, Mr. Childress, Ms. Froman, Ms. Hammer, Mr. Keene, Mr. Olson, and Mr. Skelton. Form 990, Part VII, Section A, Line 5: The filing orgenization has completed Schedule J reporting for the individual, Mr. Marcelrin, who was paid $522,426 by an unrelated organization, Lockton Affinity LLC, in 2017. The amount of $455,753 paid by the unrelated Schedule 0 (Form 990 or 990-EZ) (2017) Schedule 0 (Form 990 or 990-EZ) (2017) Name of the organization National Rifle Association of America Page Employer Identification number 2 53-0116130 organization to the individual was inadvertently excluded from prior year Form 990 compensation. Upon review, this situation was remediated. Form 990, Part VII, Section B, Line 1: This informational note provides additional detail about amounts paid to outside services providers. The filing organization reports compensation paid to services_providers exclusive of advertising and other media placed on behalf of the filing organization and expenses incurred on behalf of the filing organization. For example, the figure of $20,324,364 stated on Part VII Section B line 1 reflects compensation for services paid to Ackerman McQueen. It excludes amounts_paid by a related organization. It also excludes $11,739,668 incurred for out of pocket expenditures on behalf of the filing organization including media, outside vendor costs, and reimbursement of travel and business expenses. It also excludes $5,588,945 paid by the filing organization to Mercury Group and $2,635,000 paid by the filing organization to Under VVild Skies, companies which have different tax identification numbers from Ackerman McQueen. Form 990, Part VIII, Line 2b: This informational note regards the reportin_g of member dues on Form 990. Line lb of the revenue statement is properly left blank. Pursuant to 990 instructions, membership dues that are not contributions because they compare reasonably with available benefits are shown on line 2. Thus, all NRA member dues are properly shown on the 990 revenue statement as program service revenue on line 2, other than NRA Life-plus contributions which are pro_perly counted as contribution revenue in line lf of the 990 revenue statement. Form 990, Part IX, Line 11: This informational note regards the NRA's payment of fees for outside professional services as stated on line 11 of the 990 expense statement. Line llb reports leRal fees paid to outside attorneys, such as for Second Amendment case work and related litigation at the federal and state levels. Line 11c reports accounting fees paid to the outside CPA firm that provides the NRA's auditing and tax services. Line lld re_ports lobbying expensepaid to external regjstered lobbyists. Line 1 le reports fundraisirs costs _paid to the authorized vendors listed on Schedule G. Line llf reports investment manaRement fees paid to investment advisors that manage the NRA's portfolios. Line 11 g show telemarketing Schedule 0 (Form 990 or 990-EZ) (2017) Schedule 0 (Form 990 or 990-EZ) (2017) Page Employer Identification number Name of the organization National Rifle Association of America 2 53-0116130 costs for membership servicing. Professional services performed by NRA employees (in house counsel, in house accountants, in house lobbyists, in house fundraisers, and in house investment mana_gers, respectively) are properly reported within lines 5-7 of the 990 expense statement, as required by 990 form instructions. Professional servicesperformed by the telemarketin,q vendor for fundraisingpurposes, rather than for membership, are properly reported within line 11e, as required by 990 form instructions. Form 990, Part IX, Line 24e: This response explains $7,710,090 of other ex_penses stated on line 24e of the 990, Part IX expense statement which were not accommodated by other expense line descriptions. This figure includes $7,625,637 of other NRAILA leRislativeprogram costs, $4,301,676 banking fees, $1,224,523 membershippremiums, $720,000 compensation of a former officer, $616,570 of non-payroll taxes, and ($6,778,316) FASB ASC 715 pension accounting valuation adjustment. Form 990, Part XI, Line 9: This response explains $4,419,369 of other changes in the net assets reconciliation schedule. The figure includes $3,466,371 agency transactions between the NRA and NRA Foundation and $952,998 unrealized g_ain on derivative instrument. The aRency transactions of $3,466,371 include endowment contributions and endowment earnin_qs designated by NRA Foundation donors for eligjble NRAprograms. Readers may refer to Schedule D, Part X, line 1(2) for an informational note on the derivative instrument. Schedule 0 (Form 990 or 990-EZ) (2017) SCHEDULE R (Form 990) OMB No. 1545-0047 Related Organizations and Unrelated Partnerships 10. Department of the Treasury Internal Revenue Service 2©17 Complete if the organization answered "Yes" on Form 990, Part IV, line 33, 34, 35b, 36, or 37. P' Attach to Form 990. O" Go to www.irs.gov/Form990 for instructions and the latest information. Open to Public Ins section Name of the organization Employer Identification number National Rifle Association of America 53-0116130 Part I Identification of Disregarded Entities. Complete if the organization answered "Yes" on Form 990, Part IV, line 33. (b) Primary activity (a) Name, address, and EIN (if applicable) of disregarded entity (c) Legal domicile (state or foreign country) (d) Total income (e) End-of-year assets (fi Direct controlling entity (1.) 12) (3) (4) 15.) 16) Part II Identification of Related Tax-Exempt Organizations. Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had -exempt durina the tax year - - . oraanizations — (b) Primary activity (a) Name, address, and EIN of related organization (c) Legal domicile (state or foreign country) (d) Exempt Code section (e) Public charity status (if section 501(c)(3)) (f) Direci controlling entity (g) Section 512(b)(13) cont Iled entity? Yes 11) NRA FOUNDATION INC 52-1710886 11250 WAPLES MILL RD FAIRFAX, VA 22030 12) NRA SPECIAL CONTRIBUTION FUND 23-7367534 PO BOX 700 RATON, NM 87740 13) NRA CIVIL RIGHTS DEFENSE FUND 52-1136665 11250 WAPLES MILL RD FAIRFAX, VA 22030 14) NRA FREEDOM ACTION FOUNDATION 26-1277941 11250 WAPLES MILL RD FAIRFAX, VA 22030 /5) NRA POLITICAL VICTORY FUND 52-1083020 11250 WAPLES MILL RD FAIRFAX, VA 22030 /6) No CHARITABLE DC 501(c)(3) LINE 7 NRA X NM 501(c)(3) LINE 7 NRA X VA 501(c)(3) LINE 7 NRA X VA 501(c)(3) LINE 7 NRA X VA 527 CHARITABLE CHARITABLE CHARITABLE PAC/SSF NRA X (7) For Paperwork Reduction Act Notice, see the Instructions for Form 990. rn-A Schedule R (Form 990) 2017 Schedule R (Forrn 990) 2017 Part III 53-0116130 National Rifle Association of America Page 2 Identification of Related Organizations Taxable as a Partnership. Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year. (a) Name, address, and EIN of related organization (b) Primary activity (c) Legal domicile (state or foreign country) (d) Direct controlling entity (a) Predominant income (related, unrelated, excluded from tax under sections 512-514) (1) Share of total income (9) Share of end-ofyear assets (h) Disproportionate allocations? (I) Code V—UBI amount in box 20 of Schedule K-1 (Form 1065) Yes No a) General or managing partner? (k) Percentage ownership Yes No Sil 12) 13) 14) 15.) 16) 17) Identification of Related Oroani7ations Taxable as a Cornoration or Trust. Comolete if the oraanization answered "Yes" on Form 990. Part IV. line 34 because it had one or more related organizations treated as a corporation or trust during the tax year. (a) Name, address, and EIN of related organization (b) Primary activity (c) Legal domicile (state or foreign country) (d) Direct controlling entity (e) Type of entity (C corp, S corp, or trust) (f) Share of total income (9) Share of end-of-year assets (h) Percentage ownership (I) Section 512(b)(13) controlled entir Yes No 11) 12) i3.) . 14) (5) /6) S7) Schedule R (Form 990) 2017 Schedule R (Forrn 990) 2017 MHZ 53-0116130 National Rifle Association of America 2 3 Transactions With Related Organizations. Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35b, or 36. Yes Note: Complete line 1 if any entity is listed in Parts II, III, or IV of this schedule. During the tax year, did the organization engage in any of the following transactions with one or more related organizations listed in Parts II-1V? 1 a Receipt of (i) interest, (ii) annuities, (iii) royalties, or (iv) rent from a controlled entity b Gift, grant, or capital contribution to related organization(s) c Gift, grant, or capital contribution from related organization(s) d Loans or loan guarantees to or for related organization(s) e Loans or loan guarantees by related organization(s) f g h i j Page 1a 1b lc 1d 1e X X 1f Dividends from related organization(s) Sale of assets to related organization(s) Purchase of assets from related organization(s) Exchange of assets with related organization(s) Lease of facilities, equipment, or other assets to related organization(s) 1h 1i k Lease of facilities, equipment, or other assets from related organization(s) 1 Performance of services or membership or fundraising solicitations for related organization(s) m Performance of services or membership or fundraising solicitations by related organization(s) n Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) o Sharing of paid employees with related organization(s) 1k 11 lm 1n 10 X X p q Reimbursement paid to related organization(s) for expenses Reimbursement paid by related organization(s) for expenses 1q X r s 1r Other transfer of cash or property to related organization(s) 1s Other transfer of cash or property from related organization(s) If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds. (a) Name of related organization No (b) Transaction type (a—s) (c) Amount involved X X (d) Method of determining amount involved CASH VALUE (1) NRA FOUNDATION INC a 180,000 (2) NRA FOUNDATION INC c 18,812,141 (3) NRA FOUNDATION INC o 4,968,055 (4) NRA FOUNDATION INC cl 869,746 (5) NRA CIVIL RIGHTS DEFENSE FUND c 707,257 CASH VALUE CASH VALUE CASH VALUE CASH VALUE (6) NRA CIVIL RIGHTS DEFENSE FUND a CASH VALUE 69,012 Schedule R (Form 990) 2017 LLOZ (066 wJoA) alnPoLl3S (9L) (n) (n) (ea (zi) (Li) (oil (6f (itf 0.) Of ("sf (pf (c) (tf Cif oN dpisJaumo a6ewawad til) soA &Jawed 606euew JO leJauao II) oN (S90 L 4110A) L->1 alnPaL43S 10 oz xoq u! wnowe ien—A 01300 zsuopedove emuowodadsIO LI) ILO slasse pp; Aq peinseaw) semAgoe 'LE eu!I .17 96Bd 0E1.91.1.0-C9 oN saA SieSSB JeaA-0-pua 0 aJeqs lb) awoou! poi jo awls th seA ' (ins-z is suo!pas 4suo!lezple6Jo Japun xei wail Papnioxa 'paielawn (E)(0)LOS wipes 'pawiaJ) awoou! sJauued pe aiv lueupoPaid 10 LP) (Aqunoo u6!aloi JO awls) apopop le69-1 Ampe fuew4c1 Apia 10 NI3 Pue 'ssaippe 'awaN i3.) 14) le) e pu sem ley; (anuanai SSalb- JO sdNsiauped luemsenu! u!epao Jo; uo!snioxe bug:Liebe.' suoprulsu! aas •uogez!uebio ap!Aoid wealed ang ueig aJOW pelonpuoo uo!lezpe6Jo ay; qo!qm q6noiql ciNsiauped e se paxel Alpe (pea JOI uoqemom 6u!Anolloi Ped '066 WiOd U0 „sal„ Palamsue uoRezIue6-10 91111I apiclwoo Alysieuped e se emexei suogezwealo melanin eqpawv uoRepossv aim ieuogeN IA tied LLOZ (066 wi0d) alnPa43S Schedule R (Form 990) 2017 National Rifle Association of America 53-0116130 Page 5 Supplemental Information. Provide additional information for responses to questions on Schedule R. See Instructions. Part II The NRA is a 501(c1(41 membership association with four 501(p)2 public charities and a Section 527political action committee (PAC1which is a separate segregated fund. The four charities affiliated with the NRA are NRA Civil Rights Defense Fund, NRA Foundation Inc, NRA Freedom Action Foundation, and NRA Special Contribution Fund DBA NRA VVhittington Center. The PAC is the NRA Political Victo Fund; NRAPVF is a separate unincorporated PAC of the NRA. In the event that any funds are received by the NRA and earmarked to the PAC, the NRA has systems in place to ensure any such receipts are prompt!), and immediately deposited into the se_parate segregated fund's accounts, The NRA did not takepossession of any earmarked PAC contributions from its members; all contributions to the PAC were directly received by the PAC from contributors. Therefore, there were no reportable transactions between the NRA and the PAC for thepurpose of any Schedule R, Part V, line 2 disclosures. Part V Line 1c This informational note re_gards qualified charitable grantmaking. All grants made by NRA Foundation and NRA Civil Rights Defend Fund to the NRA are subject to stringent review processes requiring that the grants be made and used only for qualified charitable purpose prog_rams. The NRA is reguired to provide an accounting to the charities as documentation that proceeds were used by the NRA for the gualified charitable purposes as set forth in theRrant documents. Schedule R (Form 990) 2017 53-0116130 Page 1 National Rifle Association of America Part V of 1 Continuation of Transactions With Related Organizations (a) Name of other organization (b) Transaction type (a—r) (c) Amount involved (d) Method of determining amount involved CASH VALUE (7) NRA SPECIAL CONTRIBUTION FUND a 120,000 cl 1,680,194 CASH VALUE (8) NRA SPECIAL CONTRIBUTION FUND (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) National Rifle Association of America 53-0116130 Part VI, Line 17 (990) - States with Which a Copy of this Form 990 is Required to be Filed Armed Forces the Americas Armed Forces Europe Alaska Alabama Armed Forces Pacific Arkansas American Samoa Arizona California Colorado Connecticut District of Columbia Delaware Florida Federated States of Micronesia Georgia Guam Hawaii Iowa Idaho R_L Illinois Indiana -7 ) Kansas Kentucky Louisiana Massachusetts X Maryland X Maine Marshall Islands Michigan X Minnesota Missouri Commonwealth of the Northern Mariana Islands X Mississippi Montana North Carolina North Dakota Nebraska X New Hampshire X New Jersey X New Mexico Nevada New York Ohio Oklahoma X Oregon ( I1 Pennsylvania 2_ Puerto Rico 0 2018 Universal Tax Systems Inc. and/or its affiliates and licensors. All rights reserved. Palau X Rhode Island X South Carolina South Dakota X Tennessee Texas Utah Virginia U.S. Virgin Islands Vermont Washington X VVisconsin X West Virginia VVyoming NATIONAL RIFLE ASSOCIATION OF AMERICA FINANCIAL STATEMENTS as of December 31, 2017 and 2016 AND REPORT THEREON 21.! V: Inlil ill. Ill. u I'll?il all ll?i rill NATIONAL RIFLE ASSOCIATION OF AMERICA TABLE OF CONTENTS Page Report of Independent Auditors 1 Financial Statements: Statements of Financial Position 2 Statements of Activities 3 Statements of Cash Flows 4 Notes to Financial Statements 5 - 24 L1. Ia A .I slr? I Bl?l . D Report of Independent Auditors To the Board of Directors and Members of the National Rifle Association of America RSM US LLP Report on the Financial Statements We have audited the accompanying financial statements of National Rifle Association of America (NRA), which comprise the statements of financial position as of December 31, 2017 and 2016, the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management Is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of intemal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditoes Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, Wnether due to fraud or error. In making those risk assessments, the auditor considers intemal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's intemal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of National Rifle Association of America as of December 31, 2017 and 2016, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of Arnerica. Emphasis of Matter As discussed in Note 1 to the financial statements, the accompanying financial statements are those of National Rifle Association of America only and are not those of the primary reporting entity. The consolidated financial statements of NRA and its affiliates have been issued as the general purpose financial statements of the reporting entity and should be read in conjunction with the parent-only statements. Our opinion is not modified with respect to this matter. Asiti vs McLean, Virginia March 7, 2018 THE POWER OF BEING UNDERSTOOD AUDIT I TAX I CONSULTING 1 1,54145'U? RSM haernational. nit( firma' PSM intaramanzl Oata-latia.ca al Iliiitnlellt111E1I U101 to:. arr. ma:It arla Fit sat: r.La 17,rt 4:11,coateautaPJ) tor ncgamaF,Rf.M. ta51:I.Ptaal NATIONAL RIFLE ASSOCIATION OF AMERICA STATEMENTS OF FINANCIAL POSITION as of December 31, 2017 and 2016 ASSETS $ Cash and cash equivalents Investments Pledges receivable, net Accounts receivable, net Due from affiliates Inventories and supplies, net Prepaid expenses Notes receivable, net Property and equipment, net Other assets $ Total assets 2017 17,123,743 48,702,736 1,184,593 36,129,175 30,731,975 13,639,054 3,277,662 3,000,000 34,475,160 7,861,583 $ 2016 13,218,701 56,680,153 1,516,303 49,547,980 27,404,135 17,209,123 3,788,017 3,000,000 37,336,030 7,436,145 196,125,681 $ 217,136,587 29,837,446 62,814,166 47,121,100 31,402,766 $ 35,188,474 63,570,736 42,838,124 39,424,563 LIABILITIES AND NET ASSETS $ Accounts payable Accrued liabilities Notes payable and line of credit Deferred revenue 171,175,478 181,021,897 Net assets: Unrestricted: Undesignated net assets Cumulative pension liability Total unrestricted net deficit Temporarily restricted Permanently restricted 1,477,285 (33,256,864) (31,779,579) 11,398,818 45,330,964 25,182,037 (40,035,180) (14,853,143) 7,743,947 43,223,886 Total net assets 24,950,203 36,114,690 Total liabilities $ Total liabilities and net assets The accompanying notes are an integral part of these financial statements. 2 - 196,125,681 $ 217,136,587 NATIONAL RIFLE ASSOCIATION OF AMERICA STATEMENTS OF ACTIVITIES for the years ended December 31, 2017 and 2016 . 2017 Unrestricted Revenue and 01107 support Members' dues Program fees Contributions Advertising Member sales Shows and exhibits Investrnent Income (loss), net Insurance administration fees Rental income Other Assets released from restrictions S . 128,209,303 10,081,009 77,730,379 28,344,743 3,758,418 21,204,275 4,544.301 14,563,405 1,255,235 7,205,826 20,230,894 3 Expenses: Program services: Legtlative programs Publications Public affairs Shows and exhibits Competitions Education and training Hunter services Field services Law enforcement Recreational shooting 76,546,402 10,125,180 32077,548 44,965,825_ Total expenses Change in net assets tefore other changes Unrealized gain on investrnents, net Unreatized gain on derivative instrument Net gain (toss) on pension obligation Change in net assets Net assets (deficit), beginning of year Net assets (deficil), end of year 343,257,828 , (26,130,040) 1,472,290 952,998 6,778,316 (16,926,436) (14,853,143) (31,779579) _ S $ $ 2,107,078 - . 2,107,07B 128,209,303 10,081,009 101,891,296 28,344,743 3,758,418 21,204,275 4,815,656 14.563,405 1,255,235 7,978,626 _- $ 163.517,961 12,256,731 104,095,484 27,075,345 4.692,861 22,955,395 (196,700) 11,527,759 1,433,726 6,935,031 20,537,574 374,831,167 -_. . - 36,740,357 36,904,077 47,754,179 18,909,415 4,702453 7,686,318 3,9513.334 11,882064 3,805,344 7,200,332 . 179,542873 83,913,732 37,820,356 54=356 19,433,011 5,649,690 11,101,147 4,213,594 12,898,136 4,089,027 7.928,714 241,886,763 . - - 76,546,402 10,125,180 32,077,548 44,965,825 88,509,528 10,613,064 31,082,974 47,065,538 , 343,257,828 (21,155,862) 2,260,061 952,9'38 6,778,316 (11,184,487) 36,114,690 24,950,203 419,157,867 (44,326,700) 3,004.602 885,817 (2,219,576) (42655.857) . 27,802,714 (14,853,143) _ 2867,100 787,771 .3,654,871 7,743,947 11,398,818 . $ 2107,078 -. 2107,078 43,223,886 45,330,964 . $ The accompanying notes are an integral part dente financial statement. 3 Temporarily Restrioted Unrestricted 322101,966 21367,100 $ Total - 772.800 (20,230,894) 36,740,357 36,904,0T, 47,754,179 18,909,415 4,702,453 7,686,318 3,958,334 11,882,064 3,805,344 7,200,332 179,542,873 Monter services and acquisition Administrative Executive office Fundraising 22,053,&39 271,355 317,127,788 Total revenue and other support 2016 Permanently Restricted Temporarily Restricted _ ' - $ $ 20,678,620 117,472 (93,048) (20,537,574) 165,470 _ $ . • -. • $ - -. .-3,017,839 3,017,839 40.206.047 1 _ -7374 23,886 163,517,961 12256,731 127,791.943 27,075,345 4,692,861 22955,395 fi9,220) 11,527,759 1,433,726 6,841,983 . 3,017,839 .-. • 394,546 7,349,401 7,743,D17 Total 3,017,839 • - . 165,470 229,076 $ Permanently Restricted 378,014,476 . 83,913,732 37,820,356 54,839,356 19,433,011 5,649,690 11,101,147 4,213,594 12,898,136 4,089,027 7,928,714 241,1386,71K1 88,509,529 10,613,064 31.082974 47,065,538 419,157,867 (41,143,391) 3,233.678 885,817 (2,219,M) (39,243,472) 75,358,162 36,114,690 Li Lil-Fl. 31?! II.) J. it}! .301. nil-ill. .?slil lill .JILI-I. . .kil] NATIONAL RIFLE ASSOCIATION OF AMERICA STATEMENTS OF CASH FLOWS for the years ended December 31, 2017 and 2016 2017 Cash flovis from operating activities: Change in net assets AcQustments to reconcile change In net assets to net cash used in operating ocarinas: Depreciation and amortization Provision for losses on pledges receivable Provision fa losses on accounts receivable Provision for losses on inventory Contributions pemianentiy resbicted for laig•term Investment Net unrealized and realized gain on investments Unrealized gain on derivative instrument Net (gain) loss on pension obligation Net loss on disposal of assets Changes in assets and liabilities: Decrease in pledges receivable Decrease (increase) in accounts receivable, net Increase in due from affiliates Deaease (increase) in inventories and supplies, net Decrease in prepaid expenses Increase in other assets (Decrease) increase in accounts payable Inasese in accrued liabilities (Decrease) increase in deferred revenue Total adjustrnents Net cash used in operating activities Cash flows from investing activities: Sales of investments Purchases of investments Purchases of property and equipment Prindpal collections on notes receivable Net cash provided by investing activities Cash flows from financing activities: Prindpal payments on note payable Prindpal payments on lines of credit Draw downs on lines of crecfit and proceeds on note payable Proceeds from life insurance policy loans Contributions permanently restricted for long-term investment Net cash provided by financing activities $ 2016 (11,164,487) $ 4,718,295 7,711 6,324,662 360,692 (2,144,164) (6,313,424) (952,998) (6,778,316) 31,495 : . (39,243,472) 4,797,889 135,924 4,802,427 150,000 (3.017,839) (2,202,751) • (885,817) 2,219,576 106,397 323,999 7,094,143 (3,327,840) 3,209,377 510,355 (425,438) (5,351,028) 6,974,744 (8,021,797) - (3,759,532)(14,924,019) 106,455 (14,860,699) (2,801,297) (6,480,529) 1,419,813 (492,411) 13,042,320 1,192,370 12,551,240 9,783,068 (29,460,404) 27,222,671 (16,431,830) (1,888,920) • 8,901,921 38,503,808 (27,622,439) (3,353,252) 4,582 7,532,699 - (1.039,944) (132,737,519) 138,060,439 3,500,000 2,144,164 9,927,140 (973,451) (108,396,472) 122,790,668 3,017,839 16,438,584 3,905,042 (5,489,121) Cash and cash equivalents at beginning of year 13,218,701 18,707,822 Cash and cash equhralents at end of year 17,123,743 $ 13,218,701 1,680,243 $ 1,449,598 . Net inaease (decrease) in cash and cash equivalents Supplemental disdosure of cash flow information: Cash paid during the year fa interest The accompanying notes are an integral part of these finandal statements. 4 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS 1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES The National Rifle Association of America (NRA), founded in 1871, is a not-for-profit corporation supported by the membership fees of public-minded citizens and clubs. Its primary purpose is to protect and defend the Constitution of the United States of America, especially the political, civil and inalienable rights of the American people to keep and bear arms as a common law and Constitutional right of the individual citizen. The NRA's Board of Directors forrned the Institute for Legislative Action (ILA) in 1975 as an intemal division of the NRA. The purpose of ILA is to prevent the passage of laws and regulations restricting firearms ownership, as well as pursuing changes to existing restrictions imposed by federal, state and local govemments. ILA is supported principally by contributions from NRA members. Basis of Presentation The NRA publishes financial statements in the NRA's annual report that include the financial statements of certain affiliated entities, which are its primary financial statements for the years ended December 31, 2017 and 2016. These financial statements for the years ended December 31, 2017 and 2016 are not intended to be the general purpose financial statements of the NRA and have been prepared in conformity with ac,counting principles that would otherwise be considered a departure from accounting principles generally accepted in the United States of America because certain affiliated organizations are not consolidated. Affiliates of the NRA whose financial activities are not included in these financial statements of the NRA include the following: the NRA Foundation, Inc. (Foundation), the NRA Civil Rights Defense Fund (CRDF), the NRA Political Victory Fund (PVF), the NRA Special Contribution Fund (SCF) and the NRA Freedom Action Foundation (FAF). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and other support and expenses during the reporting period. Actual results could differ from those estimates. Classification of Net Assets To identtfy the observance of limitations and restrictions placed on the use of the resources available to the NRA, the accounts of the NRA are maintained in three separate classes of net assets: unrestricted, temporarily restricted, and permanently restricted, based on the existence or absence of donor-imposed restrictions. Unrestricted net assets represent resources that are not restricted, either temporarily or perrnanently, by donor-imposed stipulations. They are available for support of the NRA's general operations. Temporarily restricted net assets represent contributions and other inflows of assets whose use by the NRA for its programs are limited by donor-imposed stipulations. These restrictions are temporary in that they either expire by passage of time or can be fulfilled and removed by actions of the NRA pursuant to those stipulations. 5 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS Permanently restricted net assets represent endowment contributions and other inflows of assets whose use by the NRA are limited by donor-imposed stipulations that neither expire by passage of time nor can be fulfilled and removed by actions of the NRA pursuant to those stipulations. Cash and Cash Equivalents Highly liquid investments, consisting principally of money market funds, under the control of the NRA's investment managers, are considered investments. However, the NRA considers any other investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The NRA generally invests these excess funds in repurchase agreements for U.S. govemment securities. The maturity date of these repurchase agreements is the next day of business. Due to the short-term nature of these agreements, the NRA does not take possession of the securities, which am instead held by the NRA's principal bank from which it purchases the securities. The carrying value of the investments approximates fair value because of the short maturity of the agencies. The NRA believes that it is not exposed to any significant risk on its investments in repurchase agreements. Substantially all the cash and cash equivalents were held at one financial institution in Virginia at December 31, 2017 and 2016. Concentrations of Credit Risk The NRA maintains a cash balance in excess of federally insured limits in an interest bearing account. The NRA's policy is to deposit funds only in financially sound institutions. Nevertheless, these deposits are subject to some degree of credit risk. Investments are maintained in financial institutions. Concentrations of credit risk with respect to accounts receivable that are not collateralized are limited due to the large number of members comprising the NRA's membership base and their dispersion across many different geographies. The NRA invests in a professionally managed portfolio that primarily contains money market funds, equity securities, fixed income securities, and hedge fund of funds. Such investments are exposed to various risks, such as market and credit. Due to the level of risk associated with such investments, and the level of uncertainty related to changes in the value of such investments, it is at least reasonably possible that changes in risk in the near term would materially affect investment balances and the amounts reported in the financial statements. Investments Investments consist primarily of money maricet funds, equity securities, fixed income securities, and alternative investments. Investments in money market funds, equity securities and fixed income securities are carried at fair value as determined by an independent market valuation service using the closing prices at the end of the period. In calculating realized gains and losses, the cost of securities sold is determined by the specificidentification method. To adjust the carrying value of the investments, the change in fair value is included in other changes in the statements of activities. Interest income and dividends are recorded on the accrual basis. Investments in investment partnerships are valued at fair value based on the applicable net asset value per share as of the measurement date, which is a practical expedient, as determined by the NRA. In determining fair value, the NRA utilizes valuations provided by the fund manager of the underlying investment partnerships. The underlying investment partnerships value securities and other financial instruments on a fair value basis of accounting. The estimated fair values of certain investments of the underlying investment partnerships, which may include private placements and other securities for which prices are not readily available, are determined 6 NATIONAL RIFLE ASSOCIATION OF AMEFtICA NOTES TO FINANCIAL STATEMENTS by the general partner of the respective other investrnent partnership and may not reflect amounts that could be realized upon immediate sale, nor amounts that ultimately may be realized. Accordingly, the estimated fair values may differ significantly from the values that would have been used had a ready market existed for these investments. The fair value of the NRA's investments in other partnerships generally represents the amount the NRA would expect to receive if it were to liquidate its investment in the investrnent partnerships excluding any redemption charges that may apply. Pledges Receivable Pledges receivable due in more than one year have been recorded at the present value of estimated cash flows. An allowance for uncollectible pledges receivable is provided based upon management's judgment of potential defaults. Accounts Receivable Membership dues, advertising and other accounts receivable are recorded at the invoiced amount and do not bear interest. Membership contributions receivables are recorded when received. The allowance for doubtful accounts is the NRA's best estimate of the amount of probable credit losses in existing accounts receivable. The NRA determines the membership dues accounts receivable allowance based on the aging of accounts receivable, where three or more monthly or quarterly invoices are past due. The NRA determines all other allowances based on historical write-off experience and specific identification. The allowances for doubtful accounts are reviewed monthly and accounts receivable balances are written off against the allowance when the NRA feels probable the receivable will not be recovered. Inventories and Supplies Inventories and supplies are stated at the lower of cost or net realizable value, with costs determined using the first-in, first-out method. Provisions are made to reduce the inventories to net realizable value in cases of obsolescence. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Donated assets are recorded at the appraised or estimated fair value at the time of donation. Expenditures for maintenance and repairs, which do not prolong the useful lives of the assets, are expensed. Depreciation is computed on the straight-line method over the assets' estimated useful lives. Buildings and improvements are depreciated over useful lives ranging from 20 to 45 years, other property and equipment is depreciated over two to ten years. The NRA capitalizes complete desktop and laptop computers greater than $500 and all other fixed assets greater than $1,500. Members' Dues A portion of members' dues that represents the present value of the cost of the magazine that is a benefit of membership for the given membership term is deferred and amortized over the life of the membership. The portion considered a contribution is recorded as dues revenue when the membership is received. Contribufions Unconditional contributions, whether unrestricted or restricted, are recognized as revenue when received and classified in the appropriate net asset category. When the temporary restrictions are met by the NRA which 7 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS were specified by the donor, temporarily restricted contributions are released from restriction and are recognized in the unrestricted net asset category. Revenue Recognition Program fees, advertising, member sales, shows and exhibit sales, and insurance administration fees are recognized as revenue when eamed. Rental income is recognized on a straight-line basis over the term of the lease. .Derivative Financial Instruments Interest rate swaps are entered into to manage interest rate risks associated with the NRA's borrowing. Interest rate swaps are accounted for in accordance with the Financial Accounting Standards Board Accounting Standard Codification (the Codification) topic, Derivatives and Hedging, under which the NRA is not allowed to use cash flow hedging. Therefore, the interest rate swap is recorded in the statements of financial position at fair value with fair value changes recorded as an unrealized gain on derivative instrument on the statements of activities and statements of cash flows (Note 8). Valuation of Lonti-Lived Assets Long-lived assets and certain identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be rtacognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Assets to be disposed of are reportable at the lower of the carrying amount or fair value, less cost to sell. The NRA had no impairments of long-lived assets during 2017 or 2016. Outstanding Legacies The NRA is the beneficiary under various wills and other agreements, the total realizable amounts of which are not presently determinable. The NRA's share of such amounts is not recorded until the NRA has an irrevocable right to the bequest and the proceeds are measurable. Functional Allocation of Expenses The costs of providing program services and supporting activities have been accounted for on a functional basis in the statements of activities. Accordingly, certain costs have been allocated among the program services and supporting activities. Pendirig accounting pronouncements In March 2017, the FASB issued ASU 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ASU 2017-07 requires that an entity report the service cost component of net periodic pension and postretirement cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The remaining components of net benefit costs are required to be presented in the statement of activities separately from the service component and outside a subtotal of revenue from operations, if one is presented. The amendment further allows only the service cost component of net periodic pension and 8 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS postretirement costs to be eligible for capitalization. ASU 2017-07 is effective for annual periods beginning after December 15, 2017, and the interim periods included within those annual periods, with early adoption permitted. ASU 2017-07 will be effective for NFtA beginning on January 1, 2018. In February 2016, FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the statement of financial position for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of activities. The new standard is effective for fiscal years beginning after December 15, 2019. In August 2016, the FASB issued ASU No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. The amendments in this ASU make improvements to the information provided in financial statements and accompanying notes of not-for-profit entities. The amendments set forth the FASB's improvements to net asset classification requirements and the information presented about a notfor-profit entity's liquidity, financial performance and cash flows. The ASU will be effective for fiscal years beginning after December 15, 2017. Earlier adoption is permitted. The changes in this ASU should generally be applied on a retrospective basis in the year that the ASU is first applied. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in generally accepted accounting principles in the United States of America (U.S. GAAP) when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. In August 2015, the FASB issued ASU No. 2015-14, which defers the effective date of ASU No. 2014-09 one year, making it effective for annual reporting periods beginning after December 15, 2018. NRA has not yet selected a transition method and is currently evaluating the effect that the standard will have on the financial statements. Tax Status The NRA is exempt from federal income taxes under Section 501(c)(4) of the Internal Revenue Code and from state income taxes. The NRA activities that cause imposition of the unrelated business income tax provision of the Code result in no significant tax liability. The NRA follows the accounting standard on accounting for uncertainty in income taxes, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax retum should be recorded in the financial statements. Under this guidance, the NRA may recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods. Management evaluated the NRA's tax positions and concluded that the NRA had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. 9 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS Subsequent Events The NRA evaluated subsequent events through March 7, 2018, which is the date the financial statements were available to be issued. 2. INVESTMENTS Investments as of December 31, 2017 and 2016 consist of: 2017 640,820$ 38,484,411 3,056,353 5,874,330 646,822 . $ 48,702,736_ Money market funds Equity securities Fixed income securities Altemative investments Other Investment income for the years ended December 31, 2017 and 2016 includes the following: 2017 Realized gains (losses), net $ 4,053,363 Dividends and interest 762,293 , 4,815,656 Unrealized gains, net 2,260,061 $ 7,075,717 2016 $ 612,527 40,289,738 3,766,355 7,962,585 4,048,948 $ 56,680,153 2016 $ (1,030,927) 951,699 (79,228) . 3,233,678 $ 3,154,450 Interest income of $120,000 and $120,000, eamed from notes receivable for 2017 and 2016, respectively, is included in dividends and interest. 3. PLEDGES RECEIVABLE At December 31, 2017 and 2016, donors to the NRA have unconditionally promised to give amounts as follows: 2017 _ 2016 197,286 $ 675,413 317,531 298,006 753,169 747,194 1,248,461 1,740,138 (18,595)' (20,85V 1,229,866 1,719,287 (45,27A± (202,984) $ 1,184,593 $ 1,516,303 Within one year One to five years More than five years Less: discount of pledges receivable Less: allowance for uncollectible pledges Pledges due in more than one year have been recorded at the present value of estimated cash flows, discounted by rates ranging from 0.88% to 2.22%. 10 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS 4. ACCOUNTS RECEIVABLE Accounts receivable as of December 31, 2017 and 2016 consist of: 2017 $ 40,354,236 3,119,379 3,412,352 1,353,358 48,239,325 12,110,150 $ 36,129,175 Membership C,ontributions Advertising Other Less: allowance for doubtful accounts 2016 _ $ 58,292,353 3,421,398 2,686,484 1,626,608 66,026,843 16,478,863 $ 49,547,980_ Following are the changes in the allowance for doubtful accounts during the years ended December 31, 2017 and 2016, respectively: 2017 2016 Allowance at beginning of year $ 16,478,863 $ 13,604,498 Provision for losses on accounts receivable 4,802,427 6,324,662 (10,693,375) Write-offs, net of recoveries (1,928,062) Allowance at end of year $ 12,110,150 $ 16,478,863 5. INVENTORIES AND SUPPLIES Inventories and supplies as of December 31, 2017 and 2016 consist of: Sales inventories Supplies: Magazine paper Fulfillment and promotional materials Other Less: obsolescence allowance 6. 2017 $ 3,667,792 $ 2016 4,389,535 1,650,439 9,048,870 63,664 14,430,765 791,711 $ 13,639,054 1,960,513 11,784,041 112,363 18,246,452 1,037,329 17,209,123 NOTES RECEIVABLE Notes receivable as of December 31, 2017 and 2016 consist of: Interest Rate 4.0% NRA Special Contribution Fund 2017 $ 3,000,000 $ 2016 ,3,000,000 The note receivable from the SCF is a demand note, c,ollateralized by a first deed of trust on approximately 33,300 acres of land south of Raton, New Mexico. During the years ended December 31, 2017 and 2016, interest in the amount of $120,000 and $120,000 respectively, was recorded. The total interest receivable remaining at December 31, 2017 and 2016, respectively, is $3,639,073 and is included in other assets in the statements of financial position. 11 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS 7. PROPERTY AND EQUIPMENT Property and equipment as of December 31, 2017 and 2016 consist of: 2017 2016 $ 5,380,792 $ 5,380,792 54,253,187 53,865,603 17,994,728 18,563,070 77,628,707 77,809,465 43,153,547 40,473,435 $ _ 34,475,160 $ 37,336,030 Land Buildings and improvements Fumiture, fixtures and equipment Less: accurnulated depreciation Depreciation expense for the years ended December 31, 2017 and 2016 was $4,718,295 and $4,797,889, respectively. 8. NOTES PAYABLE AND CREDIT AGREEMENTS At December 31, 2017 and 2016, $18,787,182 and $19,827,125, respectively, was payable under a credit agreement with a bank, which expires on October 1, 2019. Under the terms of this agreement:the NRA pays a fixed rate of 6.08% This credit agreement incorporates an interest rate swap agreement. This swap agreement is recognized on the statements of financial position in accrued liabilities at its fair value of $1,175,704 and $2,128,702 as of December 31, 2017 and 2016, respectively. The NRA maintained a $25,000,000 line of credit agreement which expires on September 30, 2018. Under the terms of this agreement, the NRA makes monthly interest payments on the daily outstanding principal at a variable rate based on the 30-day LIBOR rate, plus 0.60%. At December 31, 2017 and 2016, $23,333,918 and $23,010,999 was payable under the agreement at interest rates of 2.16% and 1.37%, respectively. During 2017, the NRA entered a secured loan agreement with the Foundation where the NRA's accounts receivable served as collateral, which expires on February 2, 2018. Under the terrns of this agreement, the NRA makes annual interest payments of 7.00%. In January 2018, the agreement was amended to extend the loan to June 2, 2018 with interest to be paid monthly. At December 31, 2017, $5,000,000 was payable under the agreement. On the $25,000,000 line of credit agreement, the NRA has pledged as collateral $28,424,067 at December 31, 2017, in cash and investments held in certain custodial accounts by the bank. For the credit agreement, the NRA has also pledged as collateral a Deed of Trust on the NRA Headquarters Building. The NRA is subject to financial covenants associated with the credit agreement and lines of credit agreements. The NRA must maintain minimum cash and investment balances. 12 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS The annual minimum payments related to these obligations at December 31, 2017 are as follows: 2018 2019 Total minimum future payments $ 29,440,926 17,680,174 $ 47,121,100 Interest expense for the years ended December 31, 2017 and 2016, was $1,585,858 and $1,357,731, respectively. 9. FAIR VALUE MEASUREMENTS The NRA follows the Codification on Fair Value Measurement, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and sets out a fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability. The three levels of the fair value hierarchy are described below: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2: Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and fair value is determined through the use of models or other valuation methodologies. Level 3: Inputs are unobservable for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. The inputs into the determination of fair value are based upon the best information in the circumstances and may require significant management judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The NRA's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investrnent. In determining the appropriate levels, the NRA performs a detailed analysis of the assets and liabilities that are subject to fair value measurements. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. The estimated fair values of the NRA's short-term financial instruments, including receivables and payables arising in the ordinary course of operations, approximate their individual carrying amounts due to the relatively short period of time between their origination and expected realization. The carrying value of the NRA's note payable and credit agreement approximates fair value as the interest rate on the credit agreement's underlying instruments fluctuate with market rates. 13 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS The tables below present the balances of each class of assets and liabilities measured at fair value on a recurring basis by level within the hierarchy. As of December 31, 2017 Level 1 Total Level 2 Available-for-sale equity securities: Consumer discretionary Consumer staples Energy Financial services Healthcare Industrials Information technology Materials Multi-strategy mutual funds Telecommunications Total available-for-sale equity securities $ 312,920 583,095 441,004 21,721 355,704 347,757 1,356,506 1,837,405 33,097,623 130,676 Available-for-sale fixed income securities: Multi-strategy bond funds $ 312,920 $ 583,095 441,004 21,721 355,704 347,757 1,356,506 1,837,405 33,097,623 130,676 38,484,411 38,484,411 3,056,353 3,056,353 Alternative investments: Multi-strategy fund-of-funds (measured using a net 5,874,330 asset value per share (or its equivalent) practical expedient] Money market 640,820 640,820 48,055,914 646,822 $ 42,181,584 Investments at fair value Other investments $ Total investments $ 48,702,736 Other assets — multi-strategy mutual funds: Deferred compensation plan Supplemental executive retirement plan Total other assets $ 2,886,533 $ 2,886,533 $ - $ 1,156,982 4,043,515 1,156,982 $ 4,043,515 $ Total assets $ 52,746,251 Interest rate swap Deferred compensation liability Supplemental executive retirement liability Total liabilities $ ( 1,175,704) $ (1,175,704) (2,886,533) (2,886,533) _ (1,156,982) . - (1,156,982) $ (5,219,219) 1_21222) . 14 $ 46,225,099 $ - $ NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS Total Available-for-sale equity searifies: Consumer discretionary Consumer staples Energy Financial services Healthcare Industrials Information technology Materials Multi-strategy mutual funds Total available-for-sale equity securities $ As of December 31, 2016 Level 1 1,427,080 899,575 1,187,6U 680,788 1,508,080 1,217,127 2,961,364 2,060,591 28,347,449 Available-for-sale fixed income securities: Multi-strategy bond funds Level 2 $ 1,427,080 $ 899,575 1,187,684 680,788 1,508,080 1,217,127 2,961,364 2,060,591 28,347,449 40,289,738 40,289,738 3,766,355 3,766,355_ ••• Alternative investments: Multi-strategy fund-of-funds [measured using a net 7,962,585 asset value per share (or its equivalent) practical expedient) Money market Investments at fair value $ 612,527 612,527 52,631,205 $ 44,668,620 Other investments 4,048,948 Total investments $ 56,680,153 Other assets — multi-strategy mutual funds: Deferred compensation plan Supplemental executive retirement plan Total other assets $ - $ 2,417,588 $ 2,417,588 1,081,914 1,081,914 $ 3,499,502 $ 3,499,502 Total assets $ 60,179,655_ 48,168,122 Interest rate swap Deferred compensation liability Supplemental executive retirement liability Total liabilities $ ( 2,128,702) $ $ (2,128,702) (2,408,659) (2,408,659) ,(1,078,054) '0,078,0541 $ ,(5,615,415) $ 15 - - $ .15,615,415) NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS Money market funds, equity securities and fixed income securities are classified as Level 1 instruments as they are actively traded on public exchanges. Deferred compensation plan and supplemental executive retirement plan assets are based upon the fair market value of those assets, which are observable inputs and classified as Level 1. The deferred compensation liability is not publically traded and is, therefore, considered Level 2. The NRA's swap agreement is valued based on quoted values stated by the bank's mark-to-market estimate using stated fixed rate and LIBOR interest ratings. The interest rate is observable at commonly quoted indexes for the full term of the instrument and is, therefore, considered a Level 2 item. The table below presents additional information regarding the alternative investments. Multi-strategy fund-of-funds (a) Multi-strategy fund-of-funds (a) Multi-strategy fund-of-funds (b) Multi-strategy fund (c) Redemption Frequency Redemption Notice Period - quarterly 65 days 2,237,032 - 36 days 3,043,894 2,635,782 - quarterly semiannually 105 days 421,788 $ 5,874,330 832,277 $ 7,962,585 _ daily 1 day 2017 Fair Value 2016 Fair Value Unfunded Commitments $ 2,408,648 $ 2,257,494 $ - $ - (a) This class invests in hedge funds that pursue multiple strategies to diversify risks and reduce volatility. The hedge funds' composite portfolio for this class includes investments in long, short equity portfolio funds (investments in emerging markets and multiple sectors), directional macro strategy funds (investments in trade futures, options, futures and foreign exchange contracts, and diversified markets), event driven portfolio funds (investments in risk arbitrage, distressed and special situations, and opportunistic investing), relative value portfolio funds (investments in arbitrage, commodity trading advisors and market neutral strategies), and global asset allocation portfolio funds (investment in currencies, bonds, global equities and equity indices). The fair value of the investments in this class have been estimated using the net asset value per share of the investments. (b) This class invests in hedge funds that pursue multiple strategies to diversify risks and reduce volatility. The hedge fund-of-funds' composite portfolio for this class includes investments in private investrnent companies (investment in global, distressed/credit, domestic healthcare and other) and securities (common stock). The fair value of the investments in this class have been estimated using the net asset value per share of the investments. (c) This class invests in a managed futures product that pursue multiple strategies to diversify risks and reduce volatility. The multi-strategy fund composite portfolio for this class includes investments in private investment companies (investment in currency, bonds, interest rates, commodities and other) and securities (common stock). The fair value of the investments in this class have been estimated using the net asset value per share of the investrnents. 16 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS 10. TEMPORARILY AND PERMANENTLY RESTRICTED NET ASSETS Temporarily restricted net assets are available for the following purposes: 2017 $ 3,693,020 2,331,687 2,157,671 655,051 583,321 164,752 138,284 104,250 45,374 733,135 792,273 _ $ 11,398,818 Legislative programs National Firearms Museum Education and training Recreational Shooting Hunter services Competitions Field services Law enforcement Community outreach Other Other, passage of time Total 2016 $ 1,851,049 1,403,886 1,495,330 708,022 109,761 97,743 105,630 61,503 53,536 271,993 1,585,494 $ 7,743,947 _ Permanently restricted net assets are restricted to investment in perpetuity, the income from which is expendable to support: 2017 2016 Legislative programs $ 19,195,883 $ 17,735,887 National Firearms Museum 7,808,167 7,802,467 Hunter services 5,185,764 4,698,122 Education and training 4,484,291 4,438,382 Recreational Shooting 2,615,338 2,610,338 Competitions 1,317,235 1,401,044 Law enforcement 608,541 608,541 Field services 145,138 145,138 Community outreach 16,289 16,289 Other 3,954,318 3,767,678 Total $ 45,330,964 $ 43,223,886 The NRA follows the Codification subtopic Reporting endowment funds. The Codification addresses accounting issues related to guidelines in the Uniform Prudent Management of Institutional Funds Act of 2006 (UPMIFA), which was adopted by the National Conferences of Commissioners on Uniform State Laws in July 2006 and enacted in the Commonwealth of Virginia on July 1, 2008 and by the State of New Yori( on September 17, 2010. The Management of the NRA has interpreted UPMIFA as requiring the preservation of the fair value of original donor-restricted endowment gifts as of the date of the gift absent explicit donor stipulations to the contrary. As a result of this interpretation, the NRA classifies as permanently restricted net assets (a) the original value of cash gifts donated to permanent endowment and (b) the discounted value of future gifts promised to permanent endowment, net of allowance for uncollectible pledges. The remaining portion of donor-restricted endowment funds not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the NRA in a manner consistent with the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA, the NRA considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: • • The duration and preservation of the fund The purposes of the NRA and donor-restricted endowment fund 17 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS • • • • • General economic conditions The possible effect of inflation and deflation The expected total return from income and the appreciation of investments Other resources of the NRA The investment policies of the NRA The NRA has adopted investment and spending policies for permanently restricted endowment assets that attempt to provide a predictable stream of funding to the programs supported by its endowment while seeking to maintain purchasing power of the endowment assets. The investment policy of the NRA is to achieve, at a minimum, a real (inflation adjusted) total net retum that exceeds spending policy requirements. Investments are diversified both by asset class and within asset classes. The purpose of diversification is to minimize unsystematic risk and to provide reasonable assurance that no single security or class of securities will have a disproportionate impact on the total portfolio. The amount appropriated for expenditure ranges from 1% to 5% of the endowment fund's fair value as of the end of the preceding year, as long as the value of the endowment does not drop below the original contribution(s). All eamings of ttie endowment are reflected as temporarily restricted net assets until appropriated for expenditure in the form of program spending. The NRA's endowment is composed solely of donor restricted funds. The changes in endowment net assets for the years ended December 31, 2017 and 2016 are as follows: December 31, 2017 Temporarily Permanently Unrestricted Restricted Total Restricted Endowment net assets, beginning of year Interest and dividends, net Net appreciation Contributions Amount appropriated for expenditure Other changes Endowment net assets, end of year $(1,420,647) 1,023,911 $ (396,736) Unrestricted Endowment net assets, beginning of year Interest and dividends, net Net appreciation Contributions Amount appropriated for expenditure Other changes Endowment net assets, end of year $(1,031,509) $ 4,766,287 1,725,921 3,279,468 (1,791,995) (1,023,911). $ 6,955,770 $43,223,886 2,107,078 $45,330,964 December 31, 2016 Temporarily Permanently Restricted Restricted $ 3,156,932 698,691 2,005,704 $40,206,047 3,017,839 (389,138) $(1,420,647) (1,484,178) 389,138 $ 4,766,287 $43,223,886 _ The related assets are included in due from affiliates, investments and pledges receivable. 18 $46,569,526 1,725,921 3,279,468 2,107,078 (1,791,995) $51,889,998 Total $42,331,470 698,691 2,005,704 3,017,839 (1,484,178) $46,569,526 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS From lime to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or UPMIFA requires the NRA to retain as a fund of perpetual duration. In accordance with accounting principles generally accepted in the United States, deficiencies of this nature that are reported in unrestricted net assets as of December 31, 2017 and 2016, were $396,736 and $1,420,647, respectively. The deficiencies in the donor-restricted endowment funds at December 31, 2017, resulted from unfavorable market fluctuations and the continued appropriation of endowment assets, which was deemed prudent by the NRA. 11. RETIREMENT PLANS Certain NRA employees participate in a non-contributory, defined benefit retirement plan (the Plan). Benefits under the Plan are generally based on years of service and final average pay. The NRA's policy is to fund pension costs as accrued. Effective January 1, 2008, the NRA amended the Plan so that employees hired on or after January 1, 2008, will not be eligible to participate in the Plan. The primary investment objectives of the Plan are to provide a long-term, risk-controlled approach using diversified investment options. The NRA may consider all asset classes allowed by the Employee Retirement Income Security Act of 1974 and other applicable law as acceptable investment options. The net periodic pension costs for the years ended December 31, 2017 and 2016 consist of the following: Service cost - benefits eamed during the year Interest cost on projected benefit obligation Retum on plan assets Recognized net actuarial loss Net amortization and deferral Net periodic benefit cost Other changes Total recognized in statements of activities $ $ 2017 3,303,061 5,648,941 (6,244,120) 3,450,270 98,035 6,256,187 (6,778,316) (522,129) $ $ 2016 3,375,329 5,644,489 (6,168,124) 2,905,363 78,741 5,835,798 2,219,576 8,055,374 The following table sets forth the changes in the defined benefit pension plan's funded status and the amount of accrued pension costs for the plan years ended December 31, 2017 and 2016 (utilizing a measurement date of December 31): 2017 2016 Change in benefit obligation: Projected benefit obligation at beginning of year $ 137,051,874 $ 127,548,095 Service cost 3,303,061 3,375,329 Interest cost 5,648,941 5,644,489 Actuarial loss 5,519,857 4,155,647 Benefits paid (3,771,868) (3,671,686) Plan amendments 205,397 Projected benefit obligation at end of year $ 147,957,262 $ 137,051,874 19 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS 2017 Change in plan assets: Fair value of plan assets at beginning of year Actual retum on plan assets Employer contributions Benefits paid Fair value of plan assets at end of year 2016 $ 86,832,575 $ 80,267,170 15,199,385 5,120,091 5,117,000 (3,771,868) (3,671,686) 98,260,092 86,832,575 Accrued pension costs reflected in the statements of financial position in accrued liabilities ..$. (49,697,170) $ (50,219,299) Accumulated benefit obligation $ X132,178,862) $ (121,767,299) Amounts recognized in unrestricted net assets: Total net loss Prior service cost Total $ 32,485,333 $ 39,371,012 771,531 664,168 $ 33,256,864 $ 40,035,180 The total net loss and prior service cost for the defined pension plan that will be amortized from net assets into the net periodic benefit cost over the next year are $2,450,084 and $94,340, respectively. The following weighted-average assumptions were used in calculating the above benefit obligations, net periodic benefit cost and fair value of plan assets at December 31, 2017 and 2016: Discount rate used to detemiine benefit obligation Discount rate used to determine net periodic benefit cost Rate of compensation increase Expected retum on plan assets 2017 3.90% 4.15% 4.00% 8.00% 2016 4.15% 4.50% 4.00% 8.00% The basis used to determine the overall expected long-term rate of return on assets utilizing the target asset allocations established within the plan is based on historical retums. The asset allocation strategy is based on several factors including: • • • The relationship between the current and projected assets of the Plan and the projected actuarial liability stream; The historical performance of capital markets adjusted for the perception of future short- and long-temi capital market performance; The perception of future economic conditions, including inflation and interest rate assumptions. The asset allocation strategy shall identify target allocations to eligible asset classes and, where appropriate, suitable ranges within which each asset class can fluctuate as a percent of the total fund. Each asset class is to remain suitably invested at all times in either cash (or cash equivalents) or permitted securities within each asset class. The asset classes may be rebalanced from time to time to take advantage of tactical misvaluations across major asset classes or investment styles, or to align the current asset mix with strategic targets. 20 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS Following is a description of the valuation methodologies used for assets measured at fair value at December 31, 2017 and 2016. Multi-strategy mutual funds and Pooled separate accounts: Primarily valued at the net asset value (NAV) per share based on quoted market prices of the underlying investments as reported by the investment advisor using the audited financial statements of the underlying investments. The individual annuities invest in separate accounts, which track the performance of the specific underlying mutual funds. A valuation agent is selected for each mutual fund and PSA. The valuation of the net assets is calculated on each open market day. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and c,onsistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain results in a different fair value measurement at the reporting date. Investments measured at net asset value (or equivalent) as a practical expedient have not been classified in the fair value hierarchy. The amounts of investments are included below. At December 31, 2017 and 2016, the fair value and the asset allocation of the NRA's pension plan assets was as follows: 2017 Asset category: Multi-strategy equity Mutual funds/PSAs Multi-strategy fixed income Mutual funds/ PSAs Cash $ 61,965,743 36,014,604 279,745 $ 98,260,092 2016 63.0% 36.7 0.3 _ 100.0% $ 53,763,515 30,791,748 2,277,312 $ 86,832,575 61.9% 35.5 2.6 100.0% • The NRA contributes to the plan based on actuarially determined amounts necessary to provide assets sufficient to meet benefits to be paid to plan members. NRA annually funds the minimum required contribution. Expected contributions for the plan year ending December 31, 2018 are $7,800,000. The following plan year benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next 10 fiscal years: 2018 2019 2020 2021 2022 2023 — 2027 (total) $ 4,772,920 $ 5,258,213 $ 5,641,086 $ 6,180,041 $ 6,393,532 $ 37,859,220 In addition, in 1997, the NRA established a 401(k) plan for employees. The plan, available to all employees after 90 days of service, permits participants to contribute a portion of their salary on a pre-tax basis. The NRA matches participant contributions based on plan provisions. Participants are 100% vested in employer contributions after three years of service. The vested balance is available to participants at termination, retirement, death, disability, hardships or through eligible loans. Employer contributions to the 401(k) plan totaled $2,430,068 and $2,470,309 for the years ended December 31, 2017 and 2016, respectively: 21 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS The NRA also maintains a deferred compensation agreement (the Agreement) for certain officers and employees. The Agreement is offered at the sole discretion of its Board of Directors, which may amend or terminate the Agreement at any time. The Agreement is funded through whole life insurance policies on the plan beneficiaries. The NRA is the policy owner and beneficiary. Currently, several key employees are enrolled in the Agreement. Management believes that no unfunded liability exists under the Agreement. At December 31, 2017 and 2016, the NRA had assets relating to the cash surrender values of the whole life insurance policies of $4,182,192 and $4,048,948, respectively. At December 31, 2017 and 2016, the NRA had loans against the whole life insurance policies of $3,535,370 and $0, respectively, with the net included in investments on the statement of financial position. The policies serve as the underlying collateral for the loans and interest on the loans is accrued at rates between 4.20% and 4.25%. The NRA had an accrued postretirement liability of $275,795 and $232,873 at December 31, 2017 and 2016, respectively. Deferred compensation expense for the years ended December 31, 2017 and 2016 was $71,973 and ($176,783), respectively. The NRA has established a 457(b) deferred compensation plan for the benefit of certain employees. This plan is employee funded, and therefore, the NRA did not contribute to this plan during the years ended December 31, 2017 and 2016. At December 31, 2017 and 2016, the NRA held assets, and had related obligations, relating to this plan of approximately $2.9 million and $2.4 million, respectively, The NRA has also established a 457(f) supplemental executive retirement plan for the benefit of certain executives. At December 31, 2017 and 2016, the NRA held assets, and had related obligations, relating to the plan of approximately $1,157,000 and $1,078,000, respectively. The NRA incurred deferred compensation expense of $206,700 and $206,700 for the years ended December 31, 2017 and 2016, respectively. For both plans, the assets are included in other assets and the liabilities are included in accrued liabilities on the statements of financial position. 12. RENTAL OPERATIONS AS LESSOR The NRA leases a portion of its headquarters building and adjacent property to tenants under various operating leases. These leases include renewal options and escalation clauses and require that the tenants pay for their prorated share of the building operating expenses. The following is a schedule of minimum future rentals on non-cancellable operating leases as of December 31, 2017: 2018 $ 1,366,927 2019 1,114,534 2020 989,732 2021 896,112 2022 688,983 2023 & Thereafter 2,874,114 Total minimum future rentals $ 7,930,402 Total rental income for the years ended December 31, 2017 and 2016 was $1,255,235 and $1,433,726, respectively. 22 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS 13. COMMITMENTS AND CONTINGENCIES Leases The NRA leases warehouse, office space and equipment under non-cancellable operating leases with terms expiring through 2022. The lease agreements for various office space include renewal options and escalation clauses and require that the NRA pay for shared operating expenses. The annual minimum payments related to these obligations as of December 31, 2017 are as follows: 2018 2019 2020 2021 2022 Total minimum payments required $ 1,412,210 1,423,678 838,767 462,875 194,912 $ 4,332,442 Total lease expense for the years ended December 31, 2017 and 2016 was $1,298,089 and $965,272, respectively. Litigation and claims From time to time, the NRA may be subject to various legal proceedings, which are incidental to the ordinary course of business. In the opinion of the management of the NRA, there am no material pending legal proceedings to which the NRA is directly a party. 14. RELATED PARTIES The NRA is affiliated with the Foundation, the CRDF, SCF and the FAF by virtue of the control vested with the NRA's Board of Directors to appoint the Board of Trustees of each affiliate. The PVF is a separately unincorporated political action committee of the NRA whose five officers are NRA employees. The NRA provides certain benefits to the affiliates at no cost, among which are the use of office space and other administrative and support services. Management has determined that the fair value of these benefits is minimal, and accordingly, no amounts are reflected in these financial statements. The Foundation reimburses the NRA for certain expenses, such as salaries, benefits, and general operating expenses, paid by the NRA on the Foundation's behalf. These expenses totaled $6,017,801 and $8,862,322 for the years ended December 31, 2017 and 2016, respectively. As of December 31, 2017 and 2016, $29,542,563 and $27,124,532 respectively, was owed to the NRA and included in due from affiliates for reimbursements and pass through funds still held by the Foundation. In addition, certain qualified NRA programs were funded by Foundation grants totaling $18,812,141 and $19,276,495 for the years ended December 31, 2017 and 2016, respectively. The CRDF reimburses the NRA for general operating expenses paid by the NRA on the CRDF's behalf. As of December 31, 2017 and 2016, $1,040,733 and $23,549, respectively, was owed to the NRA for general operating expenses and included in due from affiliates. 23 NATIONAL RIFLE ASSOCIATION OF AMERICA NOTES TO FINANCIAL STATEMENTS All permanent employees of the SCF are maintained as employees of the NRA and the SCF reimburses the NRA for the total employee costs including benefits. The SCF reimburses the NRA for certain other expenses paid by the NRA on the SCF's behalf. As of December 31, 2017 and 2016, $148,679 and $256,054, respectively, was owed to the NRA for salaries, insurance and benefits net of certain other expenses owed by the NRA to the SCF and included in due from affiliates. See also Note 6. The NRA paid administrative and fundraising expenses of $2,968,011 and $38,762,499 for the years ended December 31, 2017 and 2016, respectively, on behalf of the PVF. 24