Human and Civil Rights : Advocacy and Education
Center for Union Facts
Understanding Employee Rights
1090 Vermont Ave NW STE 800 Washtington, DC 20005
See Details About This CN Advisory
During our analysis of Center for Union Facts’s 12/2011 Form 990, the document revealed the following:
More than half of the Center for Union Facts' 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 $1.38 million, $870,182 were paid to Berman and Company for "staff[ing] and operat[ing] the day-to-day activities" of the charity. (See Page 8 Part VII, Page 10 Part IX, and Schedule L)
During our analysis of the Center for Union Facts' FYE 12/2012 and FYE 12/2013 Forms 990, the documents revealed the following:
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 Union Facts for further clarification, but have not received an adequate explanation and have thus issued this Moderate Concern CN Advisory.
The Center for Union Facts 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 for more detail: 2011 page 6 and 2011 Schedule O for the former, and 2011 Page 3 for the latter.
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.