Human and Civil Rights : Advocacy and Education
Center For Consumer Freedom
Promoting personal responsibility and protecting consumer choice
1090 Vermont Avenue, NW Washington, DC 20005
tel: (202) 463-7112
See Details About This CN Advisory
During our analysis of Center for Consumer Freedom’s FYE 12/2011 Form 990, the document revealed the following:
The majority of the Center for Consumer Freedom's functional expenses were paid to its CEO Richard Berman's for-profit management company, Berman and Company. The document revealed that, out of total expenses of $2.12 million, $1.29 million were paid to Berman and Company for "staff[ing] and operat[ing] the day-to-day activities" of the charity. (See Page 2 Part III, Page 8 Part VII, Page 10 Part IX, Schedule L, and Schedule O)
During our analysis of the Center for Consumer Freedom's FYE 12/2012 and FYE 12/2013 Forms 990, the documents revealed the following:
During our analysis of the Center for Consumer Freedom's FYE 12/2014 Form 990, the document revealed the following:
The Center for Consumer Freedom continued to contract with CEO Richard Berman's management company, Berman and Company. (See the FYE 12/2014 990, Page 8)
We find the practice of a charity contracting for management services with a business owned by that charity's CEO atypical when compared to how other charities operate. We have reached out to Center for Consumer Freedom for further clarification, but have not received an adequate explanation and have thus issued this Moderate Concern CN Advisory.
The Center for Consumer Freedom has requested that Charity Navigator also disclose that its arrangement with the management firm is reviewed and approved annually by its independent officers and directors in a process that complies with the organization's conflict of interests policy, and its financial statements are audited each year by an independent CPA. Accordingly, please see relevant pages from the organization's 2011 Form 990 filing PDF files 2011 Page 6 and 2011 Schedule O for the former, and 2011 Page 3 for the latter.
On August 12, 2013, TIME Magazine reported on the operations of Center For Consumer Freedom, in an article titled, "Is the Humane Society Bad for Puppies? This Man Wants You to Think So." For more information, please see the TIME Magazine article.
The nature of the atypical financial reporting issues identified are such that Charity Navigator has issued this CN Advisory to provide donors with information that they may find useful when making their giving decisions. Charity Navigator is not responsible for the nature or content of the information presented through external sources and websites. For more information on how or when we decide to publish a CN Advisory, please review our methodology.