In her complaint, New York Attorney General Letitia James alleges thatoutgoing NRA Executive Vice President Wayne LaPierre “exploited the organization for his financial benefit, and the benefit of a close circle of NRA staff, board members, and vendors,” ultimately diverting over US$63 million from legitimate uses.
And yet, the NRA had a 76-member board of directors, as well as a designated audit committee, which both had mandates to monitor the organization’s financial health. By reviewing transactions involving the NRA and its leaders more skeptically, the board might have helped the NRA avert some of its current legal troubles.
I’m a nonprofit law scholar. Together with Claire Hill, a University of Minnesota law professor, I’ve explored one way nonprofits might theoretically avert debacles, both large and small, in the future. We believe nonprofit boards should require their members to take turns serving as “designated contrarians.” When it’s their turn for this role, board members would be responsible for asking critical questions and pushing for deeper debate about organizational decisions.
Board culture
State law in New York, where the NRA is chartered, tasks boards of directors with the ultimate oversight over nonprofits and their leaders.
They’re responsible for everything from weighing in on strategies to advance the organization’s mission to hiring and evaluating top executives and setting their salaries.
Directors aren’t supposed to manage a nonprofit’s everyday affairs. But they are supposed to be on the lookout for major problems and speak up if its resources are being wasted – or worse.
Some NRA leaders did object to what they perceived as wasteful spending by the nonprofit and its leaders, according to James’ complaint. In some cases, concerned trustees resigned or were forced out.
On Jan. 5, three days before the trial was scheduled to begin, LaPierre announced his resignation − effective Jan. 31. The 74-year-old NRA leader cited “health reasons” rather than board pressure for his exit from the organization he had led since 1991.
In her complaint, New York Attorney General Letitia James alleges thatoutgoing NRA Executive Vice President Wayne LaPierre “exploited the organization for his financial benefit, and the benefit of a close circle of NRA staff, board members, and vendors,” ultimately diverting over US$63 million from legitimate uses.
And yet, the NRA had a 76-member board of directors, as well as a designated audit committee, which both had mandates to monitor the organization’s financial health. By reviewing transactions involving the NRA and its leaders more skeptically, the board might have helped the NRA avert some of its current legal troubles.
I’m a nonprofit law scholar. Together with Claire Hill, a University of Minnesota law professor, I’ve explored one way nonprofits might theoretically avert debacles, both large and small, in the future. We believe nonprofit boards should require their members to take turns serving as “designated contrarians.” When it’s their turn for this role, board members would be responsible for asking critical questions and pushing for deeper debate about organizational decisions.