How The Gun Industry Funnels Tens Of Millions Of Dollars To The NRA

Business Insider

The White House and the National Rifle Association are careening toward an all-out battle, with  President Barack Obama's announcement Wednesday of an expansive new agenda to crack down on gun violence.

Yesterday, the NRA released an advertisement targeting the President's daughters . Today, the President directly appealed to the club's members to break ranks. 

One of the most interesting aspects of all is how an association for sportsmen became the prime defenders of assault weaponry. 

In its early days, the National Rifle Association was a grassroots social club that prided itself on independence from corporate influence.

While that is still part of the organization's core function, today less than half of the NRA's revenues come from program fees and membership dues.

The bulk of the group's money now comes in the form of contributions, grants, royalty income, and advertising, much of it originating from gun industry sources.

Since 2005, t he gun industry and its corporate allies have given between $20 million and $52.6 million to it through the  NRA Ring of Freedom  sponsor program. Donors include  firearm companies like Midway USA, Springfield Armory Inc, Pierce Bullet Seal Target Systems, and Beretta USA Corporation. Other supporters from the gun industry include Cabala's, Sturm Rugar & Co, and Smith & Wesson.

The NRA also made $20.9 million — about 10 percent of its revenue — from selling advertising to industry companies marketing products in its many publications in 2010, according to the IRS Form 990. 

Additionally, some companies donate portions of sales directly to the NRA. Crimson Trace, which makes laser sights, donates 10 percent of each sale to the NRA. Taurus buys an NRA membership for everyone who buys one of their guns. Sturm Rugar gives $1 to the NRA for each gun sold, which amounts to millions. The NRA's revenues are intrinsically linked to the success of the gun business.

The NRA Foundation also collects hundreds of thousands of dollars from the industry, which it then gives to local-level organizations for training and equipment purchases.

This shift is key to understanding why a coalition of hunters, collectors and firearm enthusiasts takes the heat for incidents of gun violence, like the shooting massacre at Sandy Hook Elementary School, rather than the companies that manufacture and market assault weapons. 

The chief trade association for gun manufacturers is the  National Shooting Sports Federation , which is, incidentally, located in Newtown, Conn. But the NRA takes front and center after each and every shooting.  

"Today's NRA is a virtual subsidiary of the gun industry," said Josh Sugarmann, executive director of the Violence Policy Center. "While the NRA portrays itself as protecting the 'freedom' of individual gun owners, it's actually working to protect the freedom of the gun industry to manufacture and sell virtually any weapon or accessory."

There are two reasons for the industry support for the NRA. The first is that the organization develops and maintains a market for their products.  The second, less direct function, is to absorb criticism in the event of PR crises for the gun industry.

It's possible that without the NRA, people would be protesting outside of Glock, SIG Sauer and Freedom Group — the makers of the guns used in the Sandy Hook Elementary School massacre —  and dragging the CEOs in front of cameras and Congress. That is certainly what happened to tobacco executives when their products continued killing people. 

Notoriously, tobacco executives even attempted to form their own version of the NRA in 1993, seeing the inherent benefit to the industry that such an effort would have. Philip Morris bankrolled the National Smokers Alliance, a group that never quite had the groundswell of support the industry wanted.

Notably, the tide has shifted slightly in the wake of Sandy Hook, with Cerberus Capital Management's decision to sell Freedom Group, the company that makes the Bushmaster rifle. 

But if history is any indication, the NRA will be front and center of the new gun control debate, while gun manufacturers remain safely out of the spotlight. 



More From Business Insider

Rates

View Comments (1)

Recommended for You

  • Tycoon buys 30 Rolls-Royces for Macau hotel

    A Hong Kong tycoon has placed the biggest ever order for Rolls-Royce cars, agreeing to buy 30 Phantoms to chauffeur guests at a luxury resort he's building in the global gambling capital of Macau. Stephen Hung's $20 million purchase surpasses the 14 Phantoms bought by Hong Kong's Peninsula Hotel in…

    Associated Press
  • Enjoy this refreshing Triple Play offer!

    Get FIOS TV Mundo starting at $79.99/mo. w/ no annual contract + 2-yr. price guarantee. Or sign for 2 yrs. & get a $300 prepaid Visa. Click here.

    AdChoicesVerizon FiOS ®Sponsored
  • Tycoon's arrest sends shock wave through Russia

    Tycoon's arrest sends shock wave through Russia MOSCOW (AP) — The arrest of a Russian telecoms and oil tycoon has sent shock waves through the country's business community, with some fearing a return to the dark days of a decade ago, when the Kremlin asserted its power by imprisoning the country's…

    Associated Press
  • Before You Buy Alibaba, Check Out 4 Top China Stocks

    Before You Buy Alibaba, Check Out 4 Top China Stocks While investors gear up for Alibaba Group 's (BABA) hotly anticipated initial public offering, don't forget about other Chinese stocks that are worth keeping an eye on. Today's Young Guns Screen of

    Investor's Business Daily
  • Costco Stores in Canada to Stop Taking American Express

    “The credit card relationship between American Express and Costco Wholesale Canada will not be renewed when it expires” on Dec. 31, the company said today in an e-mail to Canadian customers. The message was attributed to Lorelle Gilpin, vice president of marketing and membership for Costco…

    Bloomberg
  • "The Retiree Next Door": How successful retirees stretch their savings

    "The Retiree Next Door": How successful retirees stretch their savingsBy the time she hit her late 40s, Toni Eugenia wasn’t sure she would ever be able to retire. Eugenia, 56, a pharmacy technician who lived in Houston, was nearly $200,000 in debt and

    Yahoo Finance
  • As Fed takes baby steps, Cramer's trick for profit

    In turn, Cramer says making money in the market, involves looking at the environment through the lens of the Fed. "The trick is to remember that they speak for the common person," Cramer said. "The Fed wants the common person to make money." With that backdrop always in mind, Cramer says it becomes…

    CNBC
  • CNBC Anchor Calls Out Fed-Hater Bill Fleckenstein In Startling Shouting Match

    CNBC Bill Fleckenstein of Fleckenstein Capital appeared on CNBC's Futures Now program on Tuesday. Futures Now host Jackie DeAngelis came out swinging, asking Fleckenstein right at the top if he was willing to admit that he had misunderstood monetary policy. Sounding taken aback, Fleckenstein…

    Business Insider
  • Accomplish your career goals

    At Capella University, you can learn the skills you need to succeed. Why wait another day? Get started today.

    AdChoicesCapella UniversitySponsored
  • Beanie Babies creator's sentence debated in court

    Beanie Babies creator's sentence debated in court CHICAGO (AP) — Federal prosecutors seeking to put the billionaire creator of Beanie Babies in prison for hiding millions in Swiss bank accounts told appellate court judges Wednesday that the toymaker's sentence of probation threatens to erode the…

    Associated Press
  • Apple to unveil new iPads, operating system on Oct. 21 : report

    The company plans to unveil the sixth generation of its iPad and the third edition of the iPad mini, as well as its operating system OS X Yosemite, which has undergone a complete visual overhaul, the Internet news website said. Trudy Muller, a spokeswoman for Apple, declined to comment. The iPad is…

    Reuters
  • Play

    Citi, Bank of America Offer Discounted Mortgages

    Citigroup and Bank of America will offer mortgages at discounted interest rates to help borrowers with low incomes or subprime credit. AnnaMaria Andriotis joins MoneyBeat. Photo: Getty.

    WSJ Live
  • Gilead Stock Is Falling On These Drug Setbacks

    Gilead Stock Is Falling On These Drug Setbacks Gilead Sciences (GILD) shares are backsliding Wednesday on news that the patient drop-out rate for hepatitis C drug Sovaldi is quadruple that of clinical trials. In addition, the biotech's Phase 2 study results

    Investor's Business Daily
  • Here's What Mark Cuban Wishes He Knew About Money In His 20s

    Cuban is the owner of the Dallas Mavericks basketball team. Billionaire investor and entrepreneur Mark Cuban is generous with his advice. When we asked him what he wishes he'd known about money in his 20s, he said:

    Business Insider
  • Margaritaville casino owners seek bankruptcy

    The owner of Biloxi's Margaritaville casino has filed for Chapter 11 bankruptcy protection Tuesday, only hours before a hearing where the landlord aimed to seize the property. The filing by MVB Holding LLC in U.S. Don Dornan, a lawyer for landlord Clay Point LLC, said the company had planned to ask…

    Associated Press
  • 1 Tip To Lose Belly Fat

    It's Hollywood's Hottest Diet And Gets Rid Of Stubborn Fat Areas Like Nothing Else.

    AdChoicesagoodcooksSponsored
  • Embraer to sell 50 E-175 jets to Republic in $2.1 billion deal

    Brazil's Embraer SA, the world's third largest commercial planemaker, said on Wednesday it booked a firm order from U.S. The deal, which will be included in Embraer's order book for the third quarter, is valued at $2.1 billion, the planemaker said in a securities filing. The planes will be operated…

    Reuters
  • SHOE COMPANY: Our CEO Just Disappeared And Most Of The Money Is Gone

    "and like that: he's gone." This is an actual headline from a company press release: "CEO and COO disappeared, most of the company's cash missing." (Via FastFT) In a statement, German-based shoe company Ultrasonic said its CFO,  Chi Kwong Clifford Chan, has been unable to reach the company's CEO,…

    Business Insider
  • Play

    What the Fed Meeting Means for Bonds

    Janet Yellen & Co. are expected to hint at their timetable for raising interest rates. Here's how investors should prepare ahead of the meeting.

    WSJ Live
  • Don't buy Alibaba stock: 'Dean of Valuation'

    Investors should steer clear of Alibaba , valuation expert Aswath Damodaran said Wednesday. On CNBC's " Fast Money ," Damodaran, a professor of finance at New York University's Stern School of Business, noted that he was looking at Alibaba stock from the perspective of a long-term investor, not a…

    CNBC
  • Billionaire Investor Says Chinese People Work Harder And Western Companies Could Face Deep Trouble After Alibaba IPO

    Michael Moritz, the chairman of VC firm Sequoia Capital, is a huge fan of Chinese internet companies and reiterated his enthusiasm for the Chinese market in an interview with The Wall Street Journal Wednesday. The billionaire investor described the Alibaba IPO as a “major landmark event” that is as…

    Business Insider
  • Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More

    Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More Stocks were firm on Wednesday morning ahead of the FOMC meeting outcome. Tuesday’s rally may have sparked higher interest again, and investors are looking for bargains

    24/7 Wall St.
  • Norwich Information Security MS

    Online, accredited, top ranked. NSA Center of Academic Excellence. Recognized by the Department of Homeland Security. Download your free brochure!

    AdChoicesNorwich UniversitySponsored
  • 6 Things Debt Collectors Wish You Knew

    The work debt collectors do is not popular, and has become increasingly derided by those who don’t like what we do or simply don’t know the facts about debt collection. Too often, debt collection is painted with a broad brush to create a portrait that isn’t accurate, and doesn’t properly educate…

    Credit.com