Teach for America Inc.

“Teach For America's form 990 was prepared by an independent Tax Preparer. Management performed an in-depth review. A copy of the 990 was provided to the audit committee of the board of directors for review and approval. The full Board receives a copy of the 990 Form via email before the 990 form is officially filed with the IRS.”

“Teach For America, Inc. requires each officer, director, or key employee annually (1) to review the Conflict of Interest Policy; (2) to disclose any possible personal, family, or business relationship that reasonably could give rise to a conflict of interest or the appearance of a conflict of interest; and (3) to acknowledge by his or her signature that he or she is acting in accordance with the letter and spirit of such Policy. When a Covered Person becomes aware of a proposed Covered Transaction, he or she shall have a duty to take the following actions: (a) immediately disclose the existence and circumstances of such Covered Transaction to the Chair (in the case of officers and key employees other than the Chair) or to the Board of Directors of the Organization (the "Board") or applicable committee thereof (in the case of directors and the Chair); (b) refrain from using his or her personal influence to encourage the Organization to enter into the Covered Transaction; and (c) physically excuse himself or herself from participation in any discussions regarding the Covered Transaction with officers, directors, and employees of the Organization, except to respond to requests for information. Conflicts of interest are administered by the board of Directors, or any applicable committee thereof, with the assistance of the Board chair, and are responsible for reviewing the annual disclosures and receiving disclosures of proposed covered transactions, reviewing proposed covered transactions and determining if an actual conflict of interest exists. The board documents their review of each declaration in the minutes of the meeting at which the covered transaction is covered. Documentation also includes the basis for the final determination and resolution for each covered transaction. If the final determination was accomplished by action of a Board committee or the Board chair, a report to the Board of Directors is conducted regarding any covered transaction approved in accordance with the conflicts of interest policy.”

“Teach For America, Inc. uses independent compensation consultants to ensure that the salary set for the CEO is appropriate. Independent compensation consultants are also used to ensure that the salaries for the management team members and other key officers are appropriate and in line with those of comparable organizations. CEO compensation is approved by the executive committee of the board. As Documentation provided to the committee before voting on CEO compensation includes current salary, benchmarked market data, salary recommendations for the upcoming year, and alternative options for potential salary increases. Compensation structures and individual staff member salaries are reviewed and adjusted annually at Teach For America. Regarding our compensation structures, each year, the Benefits & Compensation team recommends baseline adjustments to the CEOs, based on market research. Once approved, any financial impact is included in the overall budget recommended to the finance committee and then approved by the board. These compensation structures are then used to set staff member salaries in the next year in line with the organization's guiding principles. Those guiding principles consist of (1) paying competitively relative to non-profit organizations but not at the top of the market, (2) maintaining internal pay equity, (3) accounting for changes in the marketplace for individual roles , and (4) ensuring the organization is paying fairly and competitively over the course of staff member careers through annual evaluation of a staff member's changing contribution to the organization. Staff salaries are calibrated annually by the management team and approved by the CEO to ensure fairness and equity across the organization and alignment with our compensation philosophy. The compensation setting process, as outlined above, was last performed during the period beginning in March 2017 and concluding in June 2017.”

“Teach For America makes its form 990 available to public by retaining a copy at its place of business. The form 990 is likewise published on the internet at www.guidestar.org and at www.teachforamerica.org. Teach For America also publishes its financial statements on its website. The organization's governing documents and legal attachments, Form 1023 and the conflict of interest policy are available to the public if requested.”

“Teach For America has contractual agreements with various school districts across the United States of America to recruit, select, train, and place corps members to teach within their school districts. Teach For America recognizes revenue related to these contractual agreements as earned, that is, when the corps member is placed.”

“Net assets of a nonprofit organization are equivalent to the net worth of the organization. However net assets are classified in three categories: unrestricted, temporarily restricted and permanently restricted. Unrestricted net assets are available for the general operations of an organization and have not been restricted by outside donors. Temporarily restricted net assets are restricted by donors for certain purposes and/or future time periods. Once these restrictions are met, the funds are released as unrestricted net assets. Permanently restricted net assets are to be maintained in perpetuity; their income may be used for general operations or specific activities based on donor intent. Unrestricted net assets have different degrees of liquidity available for daily operations are not a representation of available cash for operations. For FY17, our net assets fall into the following categories: - Approximately 9% is "receivables or promises from individuals, foundations, school districts, state governments and the federal government to make payments in the future. Most of these payments are to be used to fund future activities, and are not currently available funds; - Approximately 49% is the body of the endowment and thus cannot be spent on programming. In FY17, our endowment incurred net gains of approximately $26.5 million; - Approximately 5% is fixed assets, which includes items such as depreciating software, furniture, technology and other capital investments from prior years; - Approximately 6% is cash or cash equivalents. Teach for America aims to maintain a minimum operating reserve of around 25% of annual expenses throughout the year and 35% at fiscal year-end. This is equivalent to 3-4 months of expenses, compared to the range of 3-6 months recommended by both the National Council for non-profits and the non-profits assistance fund.”

“loss on disposal -82,769. Write-off of uncollectible revenues -1,287,555.”

“The organization's governing body has a committee charged with oversight of the audit of the organization's financial statements. The committee's process for oversight of the audit, performed by an independent accounting firm, has not changed for the reporting year.”