The Big 3 testing companies make an average of almost two times the profit of America's biggest nonprofit companies. Yet they aren't helping people in poverty and need, like the Salvation Army, the United Way, and the Red Cross. And they aren't helping people learn, grow, or heal like the YMCA or Mayo Clinic. The Big 3 simply develop and administer standardized tests to Americans who are required to take them. Why do they believe it is ethical to earn such huge profits?
|
Profit Margin
(Gross Profit as % Revenue)
The Big 3 vs. the Top Five U.S. Non-Profits
|
 |
Americas Five Largest Non-Profits |
| Non-Profit |
Revenue
(million) |
Expenses
(million) |
Gross Profit
(million) |
Profit as % Revenue |
|
| Mayo Clinic |
$6,898 |
$6,700 |
$198 |
2.9% |
|
| YMCAs of America |
$6,050 |
$5,470 |
$580 |
9.6% |
(Note: 2006 figures) |
| United Way |
$4,370 |
$4,370 |
$0 |
0.0% |
|
| Salvation Army |
$4,156 |
$2,878 |
$1,279 |
30.8% |
|
| Red Cross |
$3,155 |
$3,431 |
($276.1) |
-8.7% |
|
AVERAGE |
$4,926 |
$4,570 |
$356 |
6.9% |
|
|
"Big 3" Testing Companies |
| |
Revenue
(million) |
Expenses
(million) |
Gross Profit
(million) |
Profit as % Revenue |
Compared to Industry Average of 6.9% |
| ETS |
$880 |
$786 |
$94 |
10.7% |
Exceeds by 1.6 times |
| ACT Inc |
$237 |
$199 |
$38 |
16.2% |
Exceeds by 2.3 times |
| College Board |
$583 |
$528 |
$55 |
9.5% |
Exceeds by 1.4 times |
AVERAGE |
$566 |
$504 |
$62 |
12.1% |
Exceeds by 1.8 times |
Note: Facts and figures are based on tax filings (IRS Form 990) and company statements for 2007, the most recent records available.
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