...The dispute may seem like inside baseball, but the ramifications could be serious. The NRA is incorporated in New York state, and state attorney general Letitia James has “repeatedly threatened to investigate the tax-exempt status of the organization.” Most states give their attorney generals broad authority to investigate the finances of nonprofit organizations and New York is no exception. James’ predecessor, Barbara Underwood, pursued allegations of financial impropriety at the Trump Foundation and in December, the Trump Foundation agreed to dissolve and distribute its remaining assets to other charities. Nor does the NRA have a simple option of dissolving its charter in New York and then reopening in another state with a less hostile state attorney general. New York state regulators would have to approve the move, and they are unlikely to simply sign off on an organization under investigation closing up shop and moving to another state. Shortly before getting elected, James argued, “The NRA holds [itself] out as a charitable organization, but in fact, [it] really [is] a terrorist organization.” Under normal circumstances, an accused organization’s best defense may be that the state official seeking to investigate them has already made comments like this, suggesting a political vendetta. But persuasively arguing that the whole investigation is driven by politics is more difficult when the organization’s own leadership is trading letters accusing each other of inappropriate expenditures. As noted yesterday, the NRA played a key role in driving turnout of pro-Trump women in Michigan, Pennsylvania, Ohio, Wisconsin and Iowa. The Trump team must be hoping that the NRA is operating on all cylinders in 2020 – and not hindered by expensive and embarrassing litigation. UPDATE: Later in the meeting, Wayne LaPierre discussed the NRA’s lawsuit against New York Gov. Andrew Cuomo, charging that the governor and top members of his administration abused their authority over banks and financial institutions to discourage the banks from doing business with the NRA. The American Civil Liberties Union filed a friend-of-the-court brief supporting the NRA’s position, contending “targeting a nonprofit advocacy group and seeking to deny it financial services because it promotes a lawful activity violates the First Amendment.”
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