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.
What is 501(c)(3) tax-exempt status?
501(c)(3) status is a legal status in the United States that grants a company tax exempt status. According to the IRS, this is commonly referred to as a charitable organization. Schools and churches usually have this status.
The specific, legal purposes of this status are as follows:
"The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency."
Why should these three companies have their tax-exempt status repealed?
ETS, Collegeboard, and ACT, Inc consistently and shamelessly take advantage of American students and aspiring professionals for financial gain, and have been doing so for many years. Learn more about these abuses:
The Big 3 spend hundreds of thousands of dollars every year on political lobbying designed to strengthen their monopolies - which is illegal under non profit law.
Salaries for Governing Board
ETS and ACT, Inc compensate their governing board (many trustees are paid close to half a million dollars a year), which is against IRS guidelines.
The relationships between ETS, Collegeboard, ACT, Inc - and private, for-profit companies - are murky, questionable, and likely unethical or illegal.