THE NRA FOUNDATION, INC. FINANCIAL STATEMENTS as of December 31, 2018 and 2017 AND REPORT THEREON THE NRA FOUNDATION, INC. TABLE OF CONTENTS Report of Independent Auditors Financial Statements: Statements of Financial Position Statements of Activities Statements of Functional Expenses Statements of Cash Flows Notes to Financial Statements 6?19 Report of Independent Auditors RS RSM US LLP To the Board of Trustees The NRA Foundation, Inc. Report on the Financial Statements We have audited the accompanying financial statements of The NRA Foundation, Inc. (the Foundation), which comprise the statements of ?nancial position as of December 31, 2018 and 2017, the related statements of activities. functional expenses and cash ?ows 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 ?nancial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of ?nancial statements that are free from material misstatement, whether due to fraud or error. Auditor?s Responsibility Our responsibility is to express an opinion on these ?nancial 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 ?nancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the ?nancial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal 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 internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of signi?cant accounting estimates made by management, as well as evaluating the overall presentation of the ?nancial statements. We believe that the audit evidence we have obtained is suf?cient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the ?nancial statements referred to above present fairly, in all material respects, the ?nancial position of The NRA Foundation, Inc. as of December 31, 2018 and 2017, and the changes in its net assets and its cash ?ows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As disclosed in Note 1 to the financial statements, the Foundation adopted the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-14, Not-for-Pro?t Entities (Topic 958): Presentation of Financial Statements of Not-for-Pro?t Entities. The adoption of this standard resulted in the issuance of the statement of functional expenses and additional footnote disclosures and changes to the classification of net assets. Our opinion is not modified with respect to this matter. 7251' 125 ALP McLean, Virginia March 13, 2019 THE POWER OF BEING UNDERSTOOD AUDITI TAX I CONSULTING 1 RSM US LLP is the U5. member ?rm of RSM International, a global network of independent audit. tax. and consulting ?rms. Visit rsn'msxomr'aboutus for more information regarding RSM US LLP and RSM international. Cash and cash equivalents Investments THE NRA FOUNDATION, INC. STATEMENTS OF FINANCIAL POSITION as of December 31, 2018 and 2017 ASSETS Pledges and contributions receivable, net Accounts receivable, net of allowance of $7,250 and $33,500, respectively Due from af?liates Inventory, net Property and equipment, net Other assets, principally museum collections, net Split interest agreements Total assets 5 LIABILITIES AND NET ASSETS Accounts payable and accrued liabilities 8 Grants payable Annuities payable Total liabilities Without donor restrictions With donor restrictions Total net assets Total liabilities and net assets 8 2018 10,220,309 77,520,315 9,171,461 903,537 262,718 9,422,349 832,211 26,858,536 1,039,709 136,231,145 2,182,802 248,424 2,437,071 4,868,297 9,104,542 122,258,306 131,362,848 136,231,145 The accompanying notes are an integral part of these ?nancial statements. 2 2017 1 1,215,742 82,423,980 4,461,823 959,558 1,781,472 9,176,763 992,649 26,341,239 1,045,677 138,398,903 2,051,026 207,141 2,315,904 4,574,071 16,889,093 116,935,739 133,824,832 138,398,903