From: berenson@cookie.enet.dec.com
Newsgroups: rec.guns
Subject: Re: NRA/SAF "MLDA" Phone Service
Date: 9 Sep 92 21:27:29 GMT

#On a totally unrelated note: why doesn't the NRA have tax exempt status?
#Aren't they a non-profit organization?

There is a big difference between being non-profit and being a charity as
defined by the IRS.  Section 501(c)3 defines charitable organizations.
There are severe restrictions on what you can do and still qualify.  The
Second Amendment Foundation (SAF) is a spinoff of the Citizens Committee
for the Right to Keep and Bear Arms (CCRKBA).  SAF limits its activites
to those allowed by 501(c)3 while CCRKBA engages in lobbying and other
non-permissable (under 501(c)3 activities.  Funding, as per IRS rules, is
also independent which is why you get solicited by both.

The NRA is a multi-purpose organization and therefore not directly
eligable for 501(c)3 status.  Of your $25 membership fee, $15 goes
towards the magazine subscription and would not be deductible even if the
NRA were a 501(c)3.  The other $10 goes to various purposes, including
some small amount to support the ILA (certain ILA activities don't
require separate funding, while most can only be paid for with direct
contributions to the ILA), membership recruiting, competitions, training,
etc.  The way this money is spent just doesn't allow NRA to qualify as a
501(c)3.

What the NRA has done is to create a bunch of separate funds that DO
qualify under 501(c)3.  Money sent to these funds can only be used for
limited purposes, ARE tax deductible, and will frequently be matched if
your employer has a matching gift program.  The funds I remember off the
top of my head are:

NRA Foundation - Helps fund those traditional NRA activities which are
allowed to be charitable.  This apparently includes range development
activities (there is a goal of making sure ranges are available in urban
areas, for example).

Firearms Civil Rights Legal Defense Fund - Assists those accused of
violating gun laws (where it is a civil rights issue...not someone who
used a gun to commit an unrelated crime).  Assists legal challenges to gun
control laws.

International Shooter Deveopment Fund - Funding for the U.S. Shooting
Team and related development activities.  This is how you help improve
on our recent 1 Gold + 1 Silver record at the Olympics.

There are also NRA activities which must, under federal law, be funded
seperately from the rest of the NRA.  Contributions to these
organizations are NOT tax deductible.

NRA Institute for Legislation Action (ILA) - This is the lobbying arm of
the NRA.

NRA Political Victory Fund (PVF) - This is the NRA's PAC.  It contributes
money to pro-gun candidates and also expends funds independently (the
Defend Firearms, Defeat Dukakis bumper stickers in 88).

NRA Endowment for the Preservation of the Second Amendment - This is
the ILA equivalent to the NRA Foundation.  The endowment is set up to
provide long-term funding for ILA activities.  The difference is that ILA
funds are pretty much spent when received while Endowment funds are
invested.  The EARNINGS from the investments are then available to be
spent.  This fund, like the NRA Foundation, is a good place to remember
in your will.
.............................................................................

Hal Berenson	

Home: 71640.3535@compuserve.com
Work: berenson@cookie.enet.dec.com

-- Disclaimer: Opinions expressed here are my own, not my employer's! If
I happen to communicate with you from work rather than home, its just
for convenience (just like asking for a "daytime phone number") and should
not be construed as representing the views of my employer or its
employees, officers, directors, or stockholders. --