Americans for Educational Testing Reform has a simple mission: to repeal the 501(c)(3) tax-exempt status granted to ETS, Collegeboard, and ACT, Inc.



FairTest: College Admissions Testing: The Real Beneficiaries

From FairTest:

The major firms in the U.S. K-12 testing industry are all for-profit companies. But the financial structure of the primary sponsors of college and graduate school admissions tests is superficially different. Companies such as the Educational Testing Service (ETS), the College Entrance Examination Board (College Board), and ACT (formerly American College Testing) are all set up as non-profit, tax exempt entities, allegedly because of their primarily educational missions.

However, a review of the informational tax returns of ETS, the College Board and ACT (public documents for exempt organizations under federal law) indicates that it is hard to tell the difference between the supposed “non profits” and their for-profit cousins. The companies all have substantial end-of-year surpluses, top heavy management, and very well paid executives.