Title: James v. NRA: An Opportunity to Re-Emphasize Proper Governance in Exempt Organizations
Author(s) : Daniel Hebert
In August 2020, the Attorney General of the State of New York, Leticia James, brought an action against the National Rifle Association (“NRA”) and its current and former executives seeking to dissolve the NRA, alleging misconduct on the part of the NRA’s top executives as well as defects in compliance by the NRA as a whole. Though specific to the NRA and its named executives, does this pending litigation highlight risks and pitfalls that all exempt organizations could potentially be susceptible to? If so, is this an opportune time for all exempt organizations to self-examine and ensure that their own internal culture and processes are functioning to properly carry out their exempt purpose(s)? Which measures can exempt organizations take to foster proper governance of exempt organizations?