New York AG Banishes NRA Executive To Nonprofit Siberia
NRA Top Hats in Nonprofit Siberia
The NY AG stipulation with one of the NRA executives provides a nice example of state supervision of charities. From a Tuesday Press Release
NEW YORK – New York Attorney General Letitia James today announced a settlement with the National Rifle Association’s (NRA) former Chief Financial Officer (CFO) Wilson “Woody” Phillips banning him from serving as a fiduciary of a not-for-profit in New York for 10 years and requiring training before returning to any such position.
In February, a jury found Phillips liable for violating his duties in managing the NRA and its financial affairs and ordered him to pay $2 million in damages. A second phase of the trial, set to begin on July 15, was going to determine whether Phillips should be barred from re-election or appointment as an NRA officer or director, or from serving as a fiduciary in any other New York state not-for-profit corporation.
Today’s agreement keeps the jury’s verdict against Phillips intact, including the monetary damages he has to pay, and removes him from the second, remedial phase of the trial against the NRA, Wayne LaPierre, and John Frazer, who were senior executives of the NRA until recently. “New Yorkers deserve to know that when they support a not-for-profit, those donations are being used to advance its mission, not squandered on lavish perks for staff or cronies,” said Attorney General James. “For decades, Wilson Phillips oversaw and allowed financial mismanagement and corruption at the NRA, and that is why the jury found him, the NRA, and his co-defendants, senior executives Wayne LaPierre and John Frazer, liable for their misconduct. Today’s agreement should serve as an example that my office will hold anyone, and everyone, involved in abusing their power or misappropriating funds accountable.”
Here are the operative provisions of the Stipulation:.
1. A bar on Mr. Phillips for a period of ten (10) years from the Effective Date from service as an officer, director or trustee or in any position, whether paid or unpaid, where he has any fiduciary responsibilities for any not-for-profit or charitable organization incorporated, registered, operating or soliciting contributions in New York, or for any other individual or entity that holds charitable assets or solicits charitable contributions in the State of New York, including, but not limited to, responsibility for financial and/or management oversight of any New York charitable entity.
2. After the expiration of the ten (10) year period from the Effective Date, a bar on Mr. Phillips from service as an officer, director or trustee or in any position, whether paid or unpaid, where he has any fiduciary responsibilities for any not-for-profit or charitable organization incorporated, registered, operating or soliciting contributions in New York, or for any other individual or entity that holds charitable assets or solicits charitable contributions in the State of New York, including, but not limited to, responsibility for financial and/or management oversight of any New York charitable entity without (a) notifying the OAG in writing, (b) completing a training program on the duties and responsibilities of a fiduciary of a not-for-profit or charitable organization that is approved by the Office of the Attorney General and (c) providing the OAG with proof of the successful completion of such approved training program. (See, e.g., BoardSource Leadership Certificate Programs (www.boardsource.org) for educational programs on nonprofit governance, and the roles and responsibilities of board members to exercise financial and legal oversight).
darryll k. jones