American Brain Foundation

CharityWatch is unable to provide a complete rating of the American Brain Foundation (ABF) due to how the organization is structured.

ABF publishes its own, separate financial statements, and primarily acts as a fundraising arm for its related organization, the American Academy of Neurology. For this reason, CharityWatch is able to provide a Cost to Raise $100 ratio for ABF. For the year-ended 12/31/2024, ABF spent $25 to raise each $100 in public support.

CharityWatch, however, is unable to provide a Program % for ABF. According to Note 11 of ABF's audited financial statements, ABF reports grants and awards totaling $2,445,665 to the Academy. Since these grants and awards represent approximately 73% of American Brain Foundation's Program Expenses, and 47% of its Total Expenses, CharityWatch classifies ABF as a fundraising arm for its parent organization, the American Academy of Neurology, and not an organization that exists primarily to operate its own programs. 

In order for CharityWatch to be able to potentially provide a complete rating for American Brain Foundation in the future, we would require consolidated / combined financial statements, expressed in U.S. dollars and based on U.S. GAAP (Generally Accepted Accounting Principles) reporting standards, that include all of the organization's related entities. Such statements would eliminate inter-organizational related party transactions, as well as provide a comprehensive view of how the organization both raises and spends public dollars on the whole. 

The American Academy of Neurology is registered with the IRS as a 501(c)(6) nonprofit organization, not a 501(c)(3) public charity. CharityWatch does not provide ratings for 501(c)(6) organizations, including professional associations, trade groups, and business leagues. This does not imply a positive or negative evaluation of these nonprofits. Rather, it reflects that our rating methodology, which is designed to measure how efficiently public charities raise and spend donations to benefit the general public, cannot be meaningfully applied to entities organized under Section 501(c)(6).

Unlike 501(c)(3) public charities, whose missions must be directed toward serving broad charitable purposes and the public good, 501(c)(6) organizations exist to advance the common business or professional interests of their members. Their activities may include lobbying, advocacy, member services, continuing education, conferences, and other functions that directly support the profession or industry they represent. These activities, while legitimate for (c)(6) organizations, do not correspond to the charitable program-service categories used in CharityWatch’s efficiency calculations.

As a result:

• Program spending for a 501(c)(6) generally reflects the cost of serving its members, not providing charitable services to the public.

• Lobbying and advocacy expenses, restricted for (c)(3)s, may be central to a 501(c)(6)’s mission.

• Membership dues, not public donations, typically fund the majority of operations, and dues-paying members receive direct benefits in return.

• Financial efficiency ratios would therefore be misleading, since our metrics are designed to evaluate organizations that convert public donations into charitable programs benefiting the broader community.

For these reasons, applying CharityWatch’s rating system to 501(c)(6) organizations would result in evaluations that could confuse or mislead donors. Our ratings are intended to assess the stewardship of tax-deductible charitable contributions, and the structural and operational differences between 501(c)(3)s and 501(c)(6)s make them fundamentally incomparable under our methodology.

CharityWatch may analyze a 501(c)(6) organization in cases where it exercises control over, or engages in substantial transactions with, a related 501(c)(3) charity. However, we do not issue standalone ratings for 501(c)(6) entities.