The NRA faces a
$100 million deficit, though at least part of it is the result of accounting rules.
Shalom L. Kohn, a legal expert on nonprofits and bankruptcy, agreed that the deficit was of no consequence. "It sounds like these deficits are a book figure representing all their memberships," he said. "It doesn't really mean anything."
But Elizabeth K. Keating, an assistant professor at the John F. Kennedy School of Government at Harvard University who is an expert in nonprofit accounting, said the deficit would have consequences. "They are not going to be able to sustain the activities they are engaged in today and provide the same level of service to their members in the future based on what the financial figures suggest," she said.
Generally accepted accounting principles require groups like the N.R.A. to reflect future obligations to members as a debt that decreases as it provides services. "It's as if the members are giving you a loan and over the time of their membership, they forgive the loan as you provide the services," Ms. Keating said.
Given that the NRA spent $25 million trying to defeat Democrats in the 2002 election cycle, anything that might serve to hamstring the organization can only be good.