NEW YORK, NY – An investigation into the public financial records of the College Board reveals an organization with the revenue and executive compensation packages of a major corporation, fueling an ongoing debate over its status as a 501(c)(3) non-profit organization.

• Billion-Dollar Revenue Stream – For the fiscal year ending in June 2022, the College Board reported total revenue of approximately $1.15 billion, with the vast majority derived from program service fees such as the SAT and Advanced Placement (AP) exams.
• Multi-Million Dollar Executive Pay – The organization’s Form 990 for the same period shows President and CEO David Coleman received over $1.8 million in total compensation, with several other top executives earning high six-figure salaries.
• Non-Profit Mission vs. Market Influence – Despite its tax-exempt status, which is intended for charitable, religious, or educational purposes, the College Board spends hundreds of thousands of dollars annually on lobbying and holds a near-monopolistic position over college entrance testing.

For millions of high school students, the College Board is an unavoidable gatekeeper to higher education. But a detailed review of its finances shows it is also a financial powerhouse, raising fundamental questions about how the organization uses its immense, tax-exempt income.

How a Billion-Dollar ‘Non-Profit’ Is Funded

The College Board’s financial strength is built on the fees it charges for its products. An analysis of its most recent publicly available Form 990 tax filing, for the fiscal year ending in June 2022, shows total revenues of $1,155,750,865. Of that amount, over 95%, or $1.1 billion, came from “program service revenue.”

This category includes the fees paid by millions of students and school districts for its flagship products:

• The SAT: The standard registration fee is $60.
• Advanced Placement (AP) Exams: The cost is $98 per exam for students in the U.S.
• The PSAT/NMSQT: The foundational test costs schools $18 per student.

While the College Board argues these fees are necessary to develop, administer, and score the tests securely, the sheer volume of test-takers transforms these individual fees into a billion-dollar revenue stream. This financial reality positions the organization in a unique space, far removed from the bake sales and small donation drives often associated with local non-profits.

Following the Payouts: Who Gets Paid and How Much?

A significant portion of the College Board’s expenditures is directed toward employee compensation, particularly for its top leadership. The 2022 Form 990 details these figures explicitly. David Coleman, President and CEO, received a base salary of $1.36 million and total compensation of $1,827,276.

He is not the only high-earning executive. The same filing lists several other key employees with total compensation packages exceeding $500,000. Critics point to these salaries as evidence that the College Board operates with a corporate mindset, rewarding its leadership at a level that seems at odds with a traditional non-profit mission. Defenders, however, might argue that attracting top talent to run a complex, billion-dollar operation requires competitive, market-rate compensation, even within the non-profit sector.

Where the Rest of the Money Goes

Beyond salaries, the College Board’s expenses are distributed across program development, administration, and advocacy. The organization spends hundreds of thousands of dollars each year on federal lobbying efforts. According to data from OpenSecrets, the College Board spent $560,000 on lobbying in 2023, engaging with lawmakers and federal agencies on issues related to education policy.

The organization’s primary defense for its financial structure is that its revenue is reinvested into its educational mission. The College Board states that it provides millions of dollars in fee waivers for low-income students to take its exams. In the 2022-23 school year, it reported providing over 1.9 million fee waivers and reductions for the SAT and AP exams. This support is central to their argument that their work expands access to education. However, the scale of this aid relative to the organization’s total revenue remains a focal point for those questioning its priorities.

The Core of the Controversy: Defining a Non-Profit

Under U.S. law, 501(c)(3) non-profit status is reserved for organizations that are “organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes.” These organizations are exempt from paying federal income tax.

The core of the debate is whether the College Board, with its dominant market position, billion-dollar revenue, and corporate-level executive pay, still fits the spirit of that law. Critics argue that its aggressive business practices and minimal competition make it function like a monopoly, not a public-service charity. They contend that its tax-exempt status gives it an unfair advantage and allows it to accumulate wealth without the tax obligations of a for-profit corporation.

The College Board maintains that its activities are fundamentally educational. It develops curricula, provides tools for college readiness, and facilitates access to higher education. From its perspective, the revenue and salaries are simply the necessary costs of operating a large, national organization that serves millions of students, educators, and colleges. The ongoing scrutiny from the public and lawmakers will continue to test that definition.