Human and Civil Rights : Advocacy and Education
American Beverage Institute
Drink Responsibly. Drive Responsibly.
1090 Vermont Ave. NW Suite 800
Washington, DC 20005
See Details About This CN Advisory
During our analysis of American Beverage Institute's FYE 12/2011 Form 990, the document revealed the following:
The majority of the American Beverage Institute'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 $1.72 million, $1.35 million 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 American Beverage Institute's FYE 12/2012 and FYE 12/2013 Forms 990, the documents revealed the following:
During our analysis of the American Beverage Institute's FYE 12/2014 Form 990, the documents revealed the following:
The American Beverage Institute continued to contract with CEO Richard Berman's management company, Berman and Company. (See the 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 American Beverage Institute for further clarification, but have not received an adequate explanation and have thus issued this Moderate Concern CN Advisory.
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.