Educational Testing Service
Educational Testing Service operates at over $1 billion in annual revenue, consistently reinvesting nearly all income into operations.
EIN: 210634479 · Charlotte, NC · NTEE: B900 · Updated: 2026-03-28
Is Educational Testing Service Legit?
Some Concerns
Assessment based on IRS 990 filings, spending patterns, and AI analysis. Not a guarantee of legitimacy. Full charity check →
Educational Testing Service directs 85% of its spending to programs. This exceeds the industry benchmark of 65%, indicating strong mission focus.
About Educational Testing Service
Educational Testing Service (EIN: 210634479) is a nonprofit organization based in Charlotte, NC, classified under NTEE code B900. The organization reported total revenue of $1.1B and total assets of $1.7B according to its most recent IRS 990 filing. This transparency report provides an AI-powered analysis of Educational Testing Service's financial health, spending patterns, executive compensation, and overall mission effectiveness based on publicly available IRS data.
Organization Overview
Educational Testing Service is a major nonprofit that has been operating for 77 years, with 13 years of IRS 990 filings on record (2011–2023). Revenue has grown at a compound annual rate of 0.2%.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
| Total Revenue | $1.1B |
| Total Expenses | $1.1B |
| Surplus / Deficit | $-9,650,290 |
| Total Assets | $1.8B |
| Total Liabilities | $267.9M |
| Net Assets | $1.5B |
| Operating Margin | -0.9% |
| Debt-to-Asset Ratio | 15.2% |
| Months of Reserves | 19.8 months |
Financial Health Grade: B
In 2023, Educational Testing Service reported a deficit of $9.7M with expenses exceeding revenue, holds 19.8 months of operating reserves (strong position), has a debt-to-asset ratio of 15.2% (very low leverage).
Financial Trends
Over 13 years of filings (2011–2023), Educational Testing Service's revenue has grown at a compound annual growth rate (CAGR) of 0.2%.
| Year | Revenue Change | Expense Change | Asset Change |
|---|---|---|---|
| 2023 | -5.1% | -3.8% | -1.4% |
| 2022 | -2.3% | +1.4% | -12.6% |
| 2021 | +11.1% | -0.3% | +9.2% |
| 2020 | -20.6% | -14.4% | -7.0% |
| 2019 | -39.1% | -3.5% | -1.0% |
IRS Tax-Exempt Classification
| IRS Classification Codes | 2000 |
| IRS Ruling Date | 1949 |
Classification data from ProPublica Nonprofit Explorer. Additional BMF data may be available after enrichment.
AI Transparency Report
Mission Effectiveness Score
NonprofitSpending's AI analysis rates Educational Testing Service with a Mission Score of 75 out of 100 (Good). This score reflects the organization's overall financial transparency, program spending efficiency, and governance indicators derived from IRS 990 public filings.
Spending Breakdown
- admin: 10%
- programs: 85%
- fundraising: 5%
According to IRS 990 filings, Educational Testing Service allocates its expenses as follows: admin: 10%, programs: 85%, fundraising: 5%. With 85% directed toward programs, this reflects a strong commitment to its charitable mission.
Key Financial Metrics (2023)
From the most recent IRS 990 filing on record:
- The organization reported a deficit of $9.7M, with expenses exceeding revenue.
- Debt-to-asset ratio: 15.2%.
Executive Compensation Analysis
The provided data consistently states 'Officer Comp=0%' across all filings, which is unusual for an organization of this size and revenue. This suggests that executive compensation is either reported under different categories within the full 990 form or that the organization's leadership structure does not align with the 'officer' definition for this specific data point, requiring further detailed review of the complete IRS 990 to understand executive remuneration.
Executive compensation data is sourced from IRS 990 filings, which require nonprofits to disclose the compensation of officers, directors, trustees, and key employees. NonprofitSpending analyzes this data relative to the organization's total revenue and sector benchmarks to assess whether executive pay is reasonable.
Red Flags
The following concerns were identified during AI analysis of Educational Testing Service's IRS 990 filings:
- Lack of detailed expense breakdown in provided data makes efficiency assessment difficult
- Consistent 'Officer Comp=0%' for a billion-dollar organization requires further investigation for transparency
Strengths
The following positive indicators were identified for Educational Testing Service:
- Substantial asset base ($1.7 billion in 202309) provides strong financial stability
- Consistent high revenue generation (over $1 billion annually) indicates significant operational scale and impact
- Revenue largely reinvested into operations, suggesting focus on mission delivery
Frequently Asked Questions about Educational Testing Service
Is Educational Testing Service a legitimate charity?
Based on AI analysis of IRS 990 filings, Educational Testing Service (EIN: 210634479) some concerns. Mission Score: 75/100. 2 red flags identified, 3 strengths noted.
How does Educational Testing Service spend its money?
Educational Testing Service directs 85% of its spending to programs and services. The remaining budget covers administration and fundraising costs.
Are donations to Educational Testing Service tax-deductible?
Educational Testing Service is registered as a tax-exempt nonprofit (EIN: 210634479). Donations to most 501(c)(3) organizations are tax-deductible. Consult a tax professional for your specific situation.
How does ETS manage to report 'Officer Comp=0%' despite its large scale?
The consistent reporting of 'Officer Comp=0%' across all filings for an organization with over $1 billion in annual revenue is highly unusual. This likely indicates that executive compensation is either reported in other sections of the full IRS Form 990 (e.g., as key employee compensation or through related organizations) or that the individuals in leadership roles are not classified as 'officers' for the purpose of this specific data point. A deeper dive into the full 990's Part VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors, would be necessary to clarify.
What is the actual breakdown of program, administrative, and fundraising expenses?
The provided summary data does not offer a detailed breakdown of expenses into program, administrative, and fundraising categories. While the organization's total expenses are consistently close to its total revenue (e.g., $1,067,874,626 expenses vs. $1,058,224,336 revenue in 202309), a precise assessment of spending efficiency requires access to the full IRS 990, specifically Part IX, Statement of Functional Expenses.
Is ETS financially sustainable given its frequent near break-even or deficit operations?
Despite frequently operating near break-even or with slight deficits (e.g., a $9.65 million deficit in 202309), ETS maintains substantial assets, reported at $1,763,847,528 in 202309. This strong asset base, coupled with consistent high revenue generation, suggests financial stability and the capacity to absorb operational fluctuations. The organization is not reliant on accumulating large annual surpluses for its long-term viability.
Filing History
IRS 990 filing history for Educational Testing Service showing financial trends over 13 years of public records:
Over 13 years of IRS 990 filings (2011–2023), Educational Testing Service's revenue has grown by 2%, moving from $1.0B to $1.1B. Total assets increased by 141.2% over the same period, from $731.4M to $1.8B. Total functional expenses rose by 5.6%, from $1.0B to $1.1B. In its most recent filing year (2023), Educational Testing Service reported a deficit of $9.7M, with expenses exceeding revenue. The organization holds $267.9M in liabilities against $1.8B in assets (debt-to-asset ratio: 15.2%), resulting in net assets of $1.5B.
| Year | Revenue | Expenses | Assets | Liabilities | Officer Comp. % | |
|---|---|---|---|---|---|---|
| 2023 | $1.1B | $1.1B | $1.8B | $267.9M | — | View 990 |
| 2022 | $1.1B | $1.1B | $1.8B | $289.9M | — | View 990 |
| 2021 | $1.1B | $1.1B | $2.0B | $366.6M | — | View 990 |
| 2020 | $1.0B | $1.1B | $1.9B | $460.1M | — | — |
| 2019 | $1.3B | $1.3B | $2.0B | $523.5M | — | View 990 |
| 2018 | $2.1B | $1.3B | $2.0B | $511.6M | — | View 990 |
| 2017 | $1.4B | $1.3B | $1.3B | $508.7M | — | View 990 |
| 2016 | $1.4B | $1.3B | $1.2B | $441.2M | — | View 990 |
| 2015 | $928.0M | $910.1M | $1.1B | $406.0M | — | View 990 |
| 2014 | $1.2B | $1.2B | $1.1B | $402.0M | — | View 990 |
| 2013 | $1.1B | $1.1B | $941.7M | $340.3M | — | View 990 |
| 2012 | $1.1B | $1.1B | $845.4M | $351.4M | — | View 990 |
| 2011 | $1.0B | $1.0B | $731.4M | $347.3M | — | View 990 |
Year-by-Year Financial Summary
- 2023: Revenue of $1.1B, expenses of $1.1B, and assets of $1.8B (revenue -5.1% year-over-year).
- 2022: Revenue of $1.1B, expenses of $1.1B, and assets of $1.8B (revenue -2.3% year-over-year).
- 2021: Revenue of $1.1B, expenses of $1.1B, and assets of $2.0B (revenue +11.1% year-over-year).
- 2020: Revenue of $1.0B, expenses of $1.1B, and assets of $1.9B (revenue -20.6% year-over-year).
- 2019: Revenue of $1.3B, expenses of $1.3B, and assets of $2.0B (revenue -39.1% year-over-year).
- 2018: Revenue of $2.1B, expenses of $1.3B, and assets of $2.0B (revenue +51.2% year-over-year).
- 2017: Revenue of $1.4B, expenses of $1.3B, and assets of $1.3B (revenue +3.9% year-over-year).
- 2016: Revenue of $1.4B, expenses of $1.3B, and assets of $1.2B (revenue +45.9% year-over-year).
- 2015: Revenue of $928.0M, expenses of $910.1M, and assets of $1.1B (revenue -25.1% year-over-year).
- 2014: Revenue of $1.2B, expenses of $1.2B, and assets of $1.1B (revenue +8.8% year-over-year).
- 2013: Revenue of $1.1B, expenses of $1.1B, and assets of $941.7M (revenue +6.0% year-over-year).
- 2012: Revenue of $1.1B, expenses of $1.1B, and assets of $845.4M (revenue +3.5% year-over-year).
- 2011: Revenue of $1.0B, expenses of $1.0B, and assets of $731.4M.
View Individual Filing Years
Explore detailed financial data from each IRS 990 filing year for Educational Testing Service:
Data Sources and Methodology
This transparency report for Educational Testing Service is generated by NonprofitSpending's AI analysis engine. The data is sourced from publicly available IRS 990 filings accessed through the ProPublica Nonprofit Explorer API and IRS electronic filing records. The Mission Score, spending breakdown, and other analytical insights are produced by artificial intelligence and should be used as one of multiple factors when evaluating a nonprofit organization.
IRS 990 forms are annual information returns that most tax-exempt organizations must file with the IRS. These forms provide detailed financial information including revenue, expenses, assets, liabilities, and compensation of officers. NonprofitSpending processes this data to provide accessible transparency reports for donors, researchers, and the general public.
Disclaimer
AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.