Above is a graphical representation of the figures below, from NRA audited financial statements (public information). Prior to 1991, liquid assets (largely cash prepaid dues) roughly tracked deferred liability (future years of operations members paid for in advance). 100% of NRA members serviced 100% of operating cost, as prepaid dues were held in the bank to pay the future cost of ‘servicing’ members.

But then cash (liquid assets) was drawn down to cover losses, resulting in massive unfunded liabilities. Now, effectively half the members’ dues pay all the annual operating costs.

This is why NRA is continually pounding the members for money.

Year	Prepaid Dues (Deferred Income/ Future Liability to Members	(*Columns not cumulative)
		Liquid Assets	Unfunded Liabilities	NRA’s Net Worth*	NRA’s ’91-’96 Net Gain/Loss*
1985	($65,633,000)	$60,916,000	($4,717,000)	$10,450,000
1986	($79,292,000)	$73,093,000	($6,199,000)	$9,164,000
1987	($85,468,000)	$86,023,000	($555,000)	$16,350,000
1988	($92,791,000)	$86,599,000	($6,192,000)	$10,573,000
1989	($99,712,000)	$89,703,000	($10,009,000)	$10,972,000
1990	($103,680,000)	$92,807,000	($10,873,000)	$12,144,000
1991	($110,490,000)	$80,594,000	($29,896,000)	$2,770,000	($9,561,000)
1992	($125,487,000)	$69,360,000	($56,127,000)	($34,472,000)	($37,421,000)
1993	($142,807,000)	$49,818,000	($92,989,000)	($56,245,000)	($32,946,000)
1994	($160,211,000)	$41,724,000	($118,487,000)	($57,426,000)	($1,472,000)
1995	($159,352,000)	$42,918,000	($116,434,000)	($51,515,000)	$3,218,000? note
1996	($157,516,000)	$50,900,000	($106,616,000)	($46,505,000)	Positive?? note
Total					($78,173,000)

This table is NOT a balance sheet. It only displays key indicators of financial health, derived from the balance sheet using accrual accounting techniques.

Notes:

In a given year, future liability to members (deferred income) is the balance of dues remaining for the membership period for which each member paid. For example, in 1993, a 5-year member pays $125, amortized (used up) at $25 per year. In 1995, NRA owes the member 3 more years, or $75 worth of services.

What appears to be a positive trend in 1995-’96 financials (net worth and net income) is not due to fundamental operational improvement, but mainly due to LUCK: Most of NRA’s liquid assets (largerly prepaid cash dues from members) are invested in stocks and bonds. From 1994-’96 it might appear that liquid assets grew by $10 million from dues and cash gains on operations (cash receipts less cost), reducing the deficit. Not so: Increases (decreases in the deficit) were mainly due to good market performance, raising the “unrealized gain” and overall value of our portfolio. This is all the more fortunate given that NRA’s no-bid investment arrangement has massively underperformed the markets due to high expense and turnover. These are “paper gains,” not “cash gains,” and they can be lost far more quickly than they were made if the market drops.

In 1996, going into the 4th quarter NRA had a loss of ($7 million). To cover the loss and come out “positive” for the year, NRA officers violated the bylaws by having an unauthorized “fire sale” on life memberships: A liquidation yielding short term income with long term effects. At best, these discounted dues should have been reserved to cover (fund) the full, undiscounted cost of servicing new members for life. Sadly, the cash was spent before it came in the door. As to claims that losses were actually “investments” into NRA, if so, then the liquid assets would have become hard assets, and thus financially sound—but they didn’t.

As for management performance, the Board was given a report exposing how $300 million was spent against bylaws and Board policy. The Board did nothing. It’s doubtful the money was well-spent, as there were no written contracts to serve as benchmarks to judge vendor performance. But NRA leaders (the so-called “Winning Team”) say it’s OK and the Board rubberstamps. Then again, a majority of Directors defeated a bylaw requiring them to disclose to membership their own financial deals with NRA. 

Note (“?” above): Positive due to the lucky circumstances of rising markets and a liberal (some would say questionable) accounting rule change that let NRA count unrealized (paper) gains from marketable securities as profits. From a core operations/cash position, NRA was again in the red in ’96 and, as usual, pulled cash out of the bank to cover the shortfall. 

Note (“??” above): Positive due to unlawful fire sale of Life, Endowment, Patron, and Benefactor memberships. Further mortgaged NRA’s future by incurring unfunded, long-term liabilities while forever lowering the value of special membership categories which until then had represented a known, high level of financial sacrifice for the 2nd Amendment. It also forever cheapened the sacrifice of those who had already paid full price for those memberships.