Scott Reynolds, Executive Director, MidwayUSA Foundation. OWDN Photo.

Sometimes, the name of an organization doesn’t really tell the full story. Take, for example, the MidwayUSA Foundation. From the name, it’s reasonable to presume it’s an arm of online retailer MidwayUSA. Turns out that’s only partiallyaccurate. The Foundation is totally separate from the retailer, although they share the same founders: Larry and Brenda Potterfield. The Foundation, we’ve learned, is different from many other organizations in that it was created with the goal of creating an ongoing source of funding for expanding youth shooting sports. Last week, while attending an event created by the MidwayUSA Foundation and several of its sponsors, QA Outdoors had the opportunity to talk with the Foundation’s executive director, Scott Reynolds about the organization, it’s purpose and how its unique endowment structure is designed to keep the funds flowing for the thousands of youth shooting teams that participate.

Scott Reynolds
It is not. MidwayUSA, the online retailer, is a for-profit business founded by Larry Porterfield back in 1977-78 or so.

But in 2008, he founded a totally separate 501 C(3) nonprofit public charity focused on providing long term funding for youth shooting sports. The two are not intertwined, even though they both share the name MidwayUSA. They have nothing to do with one another.

MidwayUSAFoundation is not part of the retailer, although we are are funded basically through the Potterville family contributions. That provides our operating funds. But the well of our program funding, for the teams of thousands of teams that we have, are donations provided by community, local communities for all of these 2800 teams.

Then what happens is 100% of that money goes into the endowment of their choice. Then we match that - so it's doubled, pretty much overnight.

That money's invested. We have over $400 million invested with Goldman Sachs.

Every quarter we get earnings and those earnings are distributed 100% throughout those teams. Every donation goes in 100% to the team of the donors choice.

We match it; then all of the earnings of those funds that go into that team's endowment as well.

Scott Reynolds
It's an endowment system. Any organization that wants to live forever, hospitals, churches, museums, libraries, they create endowments so they can can live in perpetuity - be funded in perpetuity.

Basically in an endowment the money goes into an account and every year, a percentage, generally 5% per year is taken out as a grant.

So we send them 5% of whatever that balance is. So the bigger the balance, the bigger grant they get.

So if you know the market, in theory, anyway, it goes up, you know, it has its ups and downs, but overall it goes up at an average of 10% per year.

So if somebody just put in that say that $10,000 And now they've got $20,000 and never put in another dime, over time, they're gonna get all the earnings on that and then it's gonna grow on average 10% per year and they put nothing else into it, and they're gonna get 5% of that increasing balance.

Now, we do ask the teams contribute at least $100 a year to their endowment to let us know that they're alive and they're interested in continuing their their future or funding their future.

But we felt that the endowment program is the best way to go about this because you can always say to a team “here's $100” and they of course need operating funds.

But it's not about that, or spending it on ammo today. It's about “how do you how do you ensure the long term survivability of you shooting sports and keeping kids involved 100 years from now?” If we start the endowments now, they're going to continue to grow.

Ultimately, they have an account large enough to pay for all of their expenses, their ammo, their targets, their uniforms, their travel, their entry fees, anything at all related to insurance - except for guns.

We ask that they not buy guns with the funds for liability purposes. But outside of that, if it's related to the team, they can spend the money on it.

We want more kids shooting. We want kids that can't afford to shoot to be able to shoot because we can you know because a team maybe can’t pay for all the kids ammo, or can't afford a uniform.

A grant is going to going to provide that. From a very high level, that’s the concept of it.

It's about ensuring the long term survivability of youth shooting sports. We talked earlier, why it's so important. You know, back when Pittman-Robertson was originally founded, it was about the hunters contributing to conservation - preserving hunting for the future. It made perfect sense.

But over the years, shooting sports has increased while hunting has decreased.

Now shooting sports contributes nearly 80% of Pittman Robertson. And as baby boomers are starting to age out who’s coming up behind them for funding the Pittman-Robertson dollars for conservation and all the other good things that Pittman-Robertson dollars do? There’s not necessarily a good answer for that if there is no market available.

We're currently trying to conduct a study to figure out what that available market is, as well as trying to figure out the economic impact of Youth Shooting sports specifically, as well.

And what are the character development opportunities that you shooting sports provides?

We're looking for a grant right now In order to conduct that study. Southwick Associates will be doing it for us.They're well known in the industry and understand what we're talking about.

So hopefully we'll about a year and a half. We'll have the answer and we'll share that with anybody that's interested.

We talked to sponsors, you know, they're looking, you know, the key in on hunting; they key in on conservation they don't necessarily key on shooting sports, or especially Youth Shooting sports because they don’t understand, because most people don’t.

The vast number of kids out there right now - Southwick estimates it at four and a half million kids - are youth shooters between ages six and 18. They’re out there shooting and spending about $1.8 billion dollars. Southwick has accumulated that data pulled it from different states that they've done. They say “this is kind of where we think they are” but you know that with the new studies- focused on Youth Shooting Sports- we’ll be able to dive in and get a bit more specific on that.

Scott Reynolds
The best spot is our website: MidwayUSA foundation.org. Our website aims focused strictly on funding of youth shooting sports. We don't put together teams. We don't provide ammo or anything like that. However… we have a resources page. On that Resources page, we have examples of bylaws for teams to set up their own team, how to form their own nonprofit for a team. Say they don't have guns, let's say it's a poverty stricken area, we have resources that they can call up and get free guns. We have a variety of resources, other organizations that can help them with things that we can’t.

Of course, we want them to use our programs so that they can have money as they go down the road. We can easily set up an endowment for them. We require $100 donation to set up an endowment and that's strictly to ensure they're serious about it. We've had too-many people set it up with nothing and nothing ever happens. It is a huge administrative burden to manage these things. So we don't want to do that unless you’re serious. And the $100 donation, we'll match it . So now there’s $200 right off the bat - and it's your money, it's donations. But we asked for at least $100 a year - hopefully they’ll build it up. And we have multiple programs for them to to help build it.

A lot of these teams, especially from from economically depressed areas, don't have the money to put in to start a fundraiser. Raffles are always very popular, you know. But they can't buy that Ruger on the shelf, you know, because they can't afford that $1,000 or whatever it is for the rifle.

So wha we have available is a multiple menu of items on our website. It's called Product Grants. This is a different type of grant program. It's not the cash grants we send out every year to the teams. These, they can take multiple times during the year.. anytime they want.

Basically the most popular things but rifles, pistols shotguns, we have different what we call price points. So every item on there, whether it's a knife, a cooler, a gun, whatever- mostly outdoor products - are donated by our sponsors or we've purchased them in bulk.

So we put them out there and we say okay, this shotgun, you know, you need to raise $2,000 with it. This cooler for a different area, lower price point you need to raise $200 with it. So everybody's got that price point. They look at that and say “I want to do three of those, one of those,” and they push a button and there's an agreement there that says “I understand with this particular item that my price point is $500. I need to raise that and send it back to my endowment.” These are very reasonable numbers. So basically, we ship that to them. We pay for shipping it, take nothing, they get these in the mail. Their firearms go to their FFL and then what they'll do is put them in a raffle or spaghetti dinner or whatever they want to do for a fundraiser. We give them nine months. In nine months they need to raise it in this example $500 They send that $500 back to their endowment -and we match it. Now, they’ve got $1,000.

Plus they're able to keep anything over that $500 Local for their operating funds. We have teams around the country that routinely just take these - time after time after time - and they send whatever to their endowment like a savings account for the future. And in their checking account they keep anything over that amount. That’s how they fund their programs over the years.

Scott Reynolds
You hit on something that's very, to the point. I'm asked a lot “you have all this matching money. Why don't you just throw that in the accounts and be done with it?”

Well…to begin with…that doesn't teach any character development whatsoever. It teaches a sense of entitlement. We say that we help those that help themselves. So if you want to be a shooting team, and you want to develop money for your team, we're providing you a source for it. We're making it easy for you.

Not only do are we going to ship these things to you for free, push the button next to the item as well, and fill in the blanks. It'll print postcards and posters and tickets and everything for you. We ship those to you, too

So it's a raffle or contest; whatever you want it to be - in a box. You hardly have to do anything. You're saving for your future. Get in the match, and you're getting money for immediate use today.

Scott Reynolds
We have a very in-depth process. We have the country divided into four regions. In each of those regions, we have a Program Manager - a specialist on the foundation that's available to any of those teams within that region. Having one guy sitting in headquarters doesn't really help them. They need somebody that's familiar with them; developing relationships with them.

So hopefully, they'll tell the Program Manager they are disbanding or leaving or whatever, and they would like their monies transferred to another team in the local area.

Often that doesn't happen. Sometimes it does, but often it doesn't. Schools will sometimes shut down a team - especially in colleges. It’s very frustrating, but it does happen.

But if we can, if we can get hold of the people and we’ll will ask them: “Alright, where do you want your money to go? You're a shotgun team in XYZ Kentucky. What's another good shotgun team XYZ Kentucky?” That money was donated for that community. We want it to stay in that community - whether it's a different team or not. And they tell us . So what if we can't find anybody - because sometimes it does happen -our administrative burden is very large.

That's a big portion of that Project Managers’ jobs every single year. We start from zero, to reach out to all of the teams and make sure that they're aware of what's going on, to find it is there’s been any turnover, etc. Every year - 100% touch. But when there are no answers, there’s nothing coming back and we’re reaching out to them -we then reach out to our state partners to see if they have any information. We search the web, we do everything we can to identify what’s happened to that team. At that point, we put them on what we can the “Non-engaged list.” And then six months later, we’re going to do it again. And we’ll do that for two years. If they fall off the face of the earth, what we're gonna do is transfer that money. We're gonna identify on our own, a local community team that money can go to - or a state if there isn't any. A good examples is SCTP (Scholastic Clay Target Program) there are all sorts of state SCTP teams. If we can't find a local community that's equivalent to that particular SCTP team that disappeared, we’ll give it to the state SCTP. But it never leaves the infrastructure of the endowment program, it's going to stay there.

But it will always stay with the team as long as they exist. And if we've confirmed that they don't exist, then we'll get it in we'll keep it in the community through a different team. If a team comes back though - we refund the money. Generally six months down the road.

Scott Reynolds
Absolutely. We want it to stay in the community.

Scott Reynolds
Well, basically by being the voice for local youth shooting sports. We want the voice in the community that starts the team, then says okay, this team needs funding. They call the foundation and we set up an endowment forum. It's about understanding what youth shooting sports does.

There is no other team sport that is more inclusive than youth shooting sports.

It's wonderful to see the kid in a wheelchair shooting next to the high school quarterback. Not every kid can throw a ball or run fast or run or jump far or whatever. But they want to be part of a team.

In youth shooting sports all they have to do is apply themselves, be disciplined, try hard, and they can excel. They can be part of that team; they can win a trophy. You have boys and girls on the same team; you've got the all-star quarterback quarterback next to the kid that you know he didn't have an opportunity to do anything else because he's in a wheelchair. I love seeing that.

Having that sort of accessibility I think is key. Most people don't even realize that youth shooting sports exist -or that it offers that kind of opportunity for all the kids.

Scott Reynolds
I tell them “come with me and I'll take you to your shooting sports event and you'll see all sorts of kids running around with guns, handling them with utmost care and respect.” And these kids are the ones who are saying “yes sir,” “no, ma’am."

They are courteous and professional, versus your high school baseball player that may be a little more arrogant or a little more unruly.

I'll ask them to come and watch the kids, but watch the moms behind the firing line with the oranges, you know in a golf cart ready for the kid to come off the firing line. It’s no different than a soccer game.

Talk to the kids about what it's done for them. That's the key. Listen to the kids talk. Because almost to a tee they'll tell you “that team is my second family”. I've not heard that anywhere else, only youth shooting sports.

Then let's talk to the parents and see what it's done for their kids. See if they don't tear up while saying it. They're gonna tell you “my daughter learned her confidence level. She couldn't talk to you. She couldn’t look you in the eye. She was staring at her feet. Now she's looking you in the eye -with confidence”

For the boys, it’s generally discipline they’re saying to us “he was unruly, wouldn’t do his homework. We couldn’t keep him on track. Now he’s focused on this, and he’s learned discipline. Everything he’s learned while handling this gun with his ‘second family’ has transferred over into his schoolwork and his work-work. Now he’s got a job.”

It's not me that's going to convince them. I have them see it, talk to somebody who's been affected by it. When they see all these kids with guns, they get over that. But talk to the kid, talk to adult and then you tell them that it's okay for the kids to play football, or baseball or basketball or whatever. And that's great. I'm all for that.

But what are the injuries like there? You're all concerned your kids are gonna get shot. Have you ever heard of a shooting sports event where that's happened? No, you have not.

I can't reference it accurately because I can't think of the who commissioned it, but a study of team sports said the most safe team sports were shooting sports and ping pong. For injuries, football was number one and then lots of other sports you wouldn’t think of for injuries. All these other sports had more injuries than these kids shooting guns.

You can't give me one good reason that shooting sports is not good for your child. If there is, I just can’t think of it.

I’ve always been positive about it, you know, but I didn’t become an outspoken advocate until I took this role five years ago. We’ve tried to make sure the Foundation is the leading advocate for youth shooting sports- to be the megaphone for youth shooting sports. And that’s because most of these teams are relegated to second class citizens. The schools don’t want them in the school, practicing in the school, or even using the school name. They want nothing to do with them. Colleges are cutting them loose left and right…all because of a misperception.

We want to drive that out. We want to give some credibility to youth shooting sports.