Irs Tax Exempt

Fom1O23
(Rev. June 2006)

Department of the Treasury Internal Revenue service
Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code
OMB No. 1545-0056
Note: ff exempt status is approved, lhfs appllcatlon will be open for oubllc insection.
Use the Instructions to complete this application and for a definition of all bold items. For additional help, call IRS Exempt Organizations Customer Account Services toll-free at 1-877-829-5500. Visit our website at www.irs.gov for forms and publications. If the required information and documents are not submitted with payment of the appropriate user fee, the appl)cation may be returned to you. Attach additional sheets to this application if you need more space to answer fully. Put your name and EIN on each sheet and identify each answer by Part and line number. Complete Parts 1 - XI of Form 1023 and submit only those Schedules (A through H) that apply to you. Identification of Applicant 1 Full name of organization (exactly as it appears in your organizing document) Educators for Excellence, Inc. 3 Mailing address (Number and Street) (see instructions) 270 Madison Avenue City or town, state or country, and ZIP + 4 New York, N.Y. 10016
12 c/o Name (if applicabIe

Eli Greenberg
Room/Suite 4 Errplojer k1ifiicn N).nth (8I"t 9th floor 27-3382030 5 Month the annual accounting period ends (01 - 12) 12 b Phone: c Fax: (optional) 212-545-4790 212-545-4792
6 Primary contact (officer, director, trustee, or authorized representative) a Name: Eli Greenberg
7 Are you represented by an authorized representative, such as an attorney or accountant? If 'Yes," provide the authorized representatives name, and the name and address of the authorized representative's firm. Include a completed Form 2848, Power of Attorney and Declaration of Representative, with your application if you would like us to communicate with your representative. 8 Was a person who is not one of your officers, directors, trustees, employees, or an authorized representative listed In line 7, paid, or promised payment, to help plan, manage, or advise you about the structure or activities of your organization, or about your financial or tax matters? If "Yes,' provide the person's name, the name and address of the persons firm, the amounts paid or promised to be paid, and describe that person's role. 9a Organization's website: NIA b Organization's email: (optional) 10 Certain organizations are not required to file an information return (Form 990 or Form 990-EZ). If you are granted tax-exemption, are you claiming to be excused from filing Form 990 or Form 990-EZ? If "Yes," explain. See the instructions for a description of organizations not required to file Form 990 or Form 990-EZ. 11 Date incorporated If a corporation, or formed, if other than a corporation. (MMIDDTYYYY) 12 Were you formed under the laws of a foreign country? If "Yes," state the country.
For Paperwork Reduction Act Notice, see page 24 of the instructions. Cat, No. 17133K
21 Yes
No
Yes
121 No
Yes
121 No
08 / 25 /
2010
El Ves
0 No
Form 1023 (Rev. 6-2006)
Form 1023 (Rev. 6-2006) Name: Educators for Excellence, Inc. EIN: 27 - 3382030 Page 2 IThIII OrganizatonaI Structure You must be a corporation (including a limited liability company), an unincorporated association, or a trust to be tax exempt. (See instructions.) 00 NOT file this form unless you can check "Yes" on lines 1, 2, 3, or 4.
1 Are you a corporation? If "Yes" attach a copy of your articles of incorporation showing certification [0 Yes of filing with the appropriate state agency. Include copies of any amendments to your articles and be sure they also show state filing certification. 2 Are you a limited liability company (LLC)? If"Yes," attach a copy of your articles of organization showing certification of filing with the appropriate state agency. Also, if you adopted an operating agreement, attach a copy. Include copies of any amendments to your articles and be sure they show state filing certification. Refer to the instructions for circumstances when an LLC should not file its own exemption application. 3 Are you an unincorporated association? If "Yes," attach a copy of your articles of association, constitution, or other similar organizing document that Is dated and includes at least two signatures. Include signed and dated copies of any amendments.
El Yes
El No
IZI No
D Yes
121 No
4a Are you a trust? 11 "Yes" attach a signed and dated copy of your trust agreement. Include signed 71 No 0 Yes and dated copies of any amendments. b Have you been funded? If "No," explain how you are formed without anything of value placed in trust. 0 No 0 Yes 5 Have you adopted bylaws? If "Yes," attach a current copy showing date of adoption. If "No," explain EZI Yes 0 No how your officers, directors, or trustees are selected. ITIIlII Reguired Provisions in Your Organizing Document The following questions are designed to ensure that when you file this application, your organizing document contains the required provisions to meet the organizational test under section 501(c)(3). Unless you can check the boxes in both lines 1 and 2, your organizing document does not meet the organizational test. 00 NOT file this application until you have amended your organizing document. Submit your original and amended organizing documents (showing state filing certification if you are a corporation or an LLC) with your application. 1 Section 501 (c)(3) requires that your organizing document state your exempt purpose(s), such as charitable, religious, educational, and/or scientific purposes. Check the box to confirm that your organizing document meets this requirement. Describe specifically where your organizing document meets this requirement, such as a reference to a particular article or section In your organizing document. Refer to the instructions for exempt purpose language. Location of Purpose Clause (Page, Article, and Paragraph): Pg. 1, Art. IV 2a Section 501(c)(3) requires that upon dissolution of your organization, your remaining assets must be used exclusively for exempt purposes, such as charitable, religious, educational, and/or scientific purposes. Check the box on line 2a to confirm that your organizing document meets this requirement by express provision for the distribution of assets upon dissolution. If you rely on state haw for your dissolution provision, do not check the box on line 2a and go to line 2c. 2b If you checked the box on line 2a specify the location of your dissolution clause (Page, Article, and Paragraph). Do not complete line 2c If you checked box 2a. Pg. 4, An. VI 2c See the Instructions for information about the operation of state law in your particular state. Check this box if you rely on operation of state law for your dissolution provision and indicate the state: IThIlI Narrative Description of Your Activities
0
Using an attachment, describe your past, present, and planned activities in a narrative. If you believe that you have already provided some of this information in response to other parts of this application, you may summarize that information here and refer to the specific parts of the application for supporting details. You may also attach representative copies of newsletters, brochures, or similar documents for supporting details to this narrative. Remember that if this application Is approved, it will be open for public Inspection. Therefore, your narrative description of activities should be thorough and accurate. Refer to the instructions for Information that must be Included in your description. . Compensation and Other Financial Arrangements With Your Officers, Directors, Trustees, Employees, and Independent Contractors
la List the names, tithes, and mailing addresses of all of your officers, directors, and trustees. For each person listed, state their total annual compensation, or proposed compensation, for all services to the organization, whether as an officer, employee, or other position. Use actual figures, if available. Enter 'none" if no compensation is or will be paid. 11 additional space is needed, attach a separate sheet. Refer to the instructions for information on what to Include as compensation.
Name Title Mailing address
Compensation amount (annual actual or estimated)
See Attached
Form 1023 (Rev. 6-2006)
Form 1023 (Rev. 6-2006)
Name: Educators for Excellence, Inc.
EIN: 27- 3382030
Page 3
I11I'I Compensation and Other Financial Arrangements With Your Officers, Directors, Trustees, Employees, and Independent Contractors (Continued) b List the names, titles, and mailing addresses of each of your five highest compensated employees who receive or will receive compensation of more than $50,000 per year. Use the actual figure, if available. Refer to the instructions for information on what to Include as compensation. Do not include officers, directors, or trustees listed in line la.
Name Title Mailing address Compensation amount (annual actual or estimated)
See Attached
c List the names, names of businesses, and mailing addresses of your five highest compensated Independent contractors that receive or will receive compensation of more than $50,000 per year. Use the actual figure, If available. Refer to the instructions for Information on what to include as compensation.
Name Title Mailing address Compensation amount (annual actual or estimated)
None
The following "Yes" or 'No" questions relate to past, present, or planned relationships, transactions, or agreements with your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed In lines la, 1b, and 1c. 2a Are any of your officers, directors, or trustees related to each other through family or business relationships? If "Yes," identify the individuals and explain the relationship. b Do you have a business relationship with any of your officers, directors, or trustees other than through their position as an officer, director, or trustee? If "Yes," identify the individuals and describe the business relationship with each of your officers, directors, or trustees. c Are any 01 your officers, directors or trustees related to your highest compensated employees or highest compensated Independent contractors listed on lines 1 or lc through family or business relationships? If "Yes," identify the individuals and explain the relationship. 3a For each of your officers, directors, trustees, highest compensated employees, and highest compensated Independent contractors listed on lines la, ib, or lc, attach a list showing their name, qualifications, average hours worked, and duties. b Do any of your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed on lines la, lb, or lc receive compensation from any other organizations, whether tax exempt or taxable, that are related to you through common control? If "Yes," identify the Individuals, explain the relationship between you and the other organization, and describe the compensation arrangement. 4 In establishing the compensation for your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed on lines la, ib, and lc, the following practices are recommended, although they are not required to obtain exemption. Answer "Yes" to all the practices you use.
a Do you or will the Individuals that approve compensation arrangements follow a conflict of interest policy? EJ Yes 1?I Yes 0 No 0 No 0 No 21 Yes 0 No El Yes 0 Yes IJ No
No
0 Yes
0 No
b Do you or will you approve compensation arrangements In advance of paying compensation? c Do you or will you document in writing the date and terms of approved compensation arrangements?
Yes
Form 1023 (Rev. 6-2006)
Form 1023 (Rev. 6-2006)
Name: Educators for Excellence, Inc.
EIN: 27 - 3382030
Page 4
IThI'I Compensation and Other Financial Arrangements With Your Officers, Directors, Trustees, Employees, and Independent Contractors (Continued) d Do you or will you record in writing the decision made by each individual who decided or voted on compensation arrangements? 0 Yes E No 0 No
e Do you or will you approve compensation arrangements based on information about compensation paid by 2 Yes similarly situated taxable or tax-exempt organizations for similar services, current compensation surveys compiled by independent firms, or actual written offers from similarly situated organizations? Refer to the instructions for Part V, lines la, ib, and ic, for information on what to include as compensation. f Do you or will you record in writing both the Information on which you relied to base your decision and its source? g If you answered "No" to any Item on lines 4a through 4f, describe how you set compensation that is reasonable for your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed in Part V, lines la, ib, and ic. 5a Have you adopted a conflict of interest policy consistent with the sample conflict of interest policy in Appendix A to the instructions? If "Yes, provide a copy of the policy and explain how the policy has been adopted, such as by resolution of your governing board. If "No,' answer lines 5b and 5c. b What procedures will you follow to assure that persons who have a conflict of interest will not have influence over you for setting their own compensation? o What procedures will you follow to assure that persons who have a conflict of interest will not have Influence over you regarding business deals with themselves? Note: A conflict of Interest policy is recommended though it is not required to obtain exemption. Hospitals, see Schedule C, Section I, line 14. 6a Do you or will you compensate any of your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed in lines la, lb, or ic through non-fixed payments, such as discretionary bonuses or revenue-based payments? If "Yes," describe all non-fixed compensation arrangements, including how the amounts are determined, who Is eligible for such arrangements, whether you place a limitation on total compensation, and how you determine or will determine that you pay no more than reasonable compensation for services. Refer to the instructions for Part V, lines la, lb, and lc, for information on what to include as compensation. b Do you or will you compensate any of your employees, other than your officers, directors, trustees, or your five highest compensated employees who receive or will receive compensation of more than $50,000 per year, through non-fixed payments, such as discretionary bonuses or revenue-based payments? If "Yes," describe all non-fixed compensation arrangements, including how the amounts are or will be determined, who is or will be eligible for such arrangements, whether you place or will place a limitation on total compensation, and how you determine or will determine that you pay no more than reasonable compensation for services. Refer to the instructions for Part V, lines la, ib, and ic, for information on what to include as compensation. 7a Do you or will you purchase any goods, services, or assets from any of your officers, directors, trustees, highest compensated employees, or highest compensated independent contractors listed in lines la, ib, or ic? If "Yes," describe any such purchase that you made or intend to make, from whom you make or will make such purchases, how the terms are or will be negotiated at arm's length, and explain how you determine or will determine that you pay no more than fair market value. Attach copies of any written contracts or other agreements relating to such purchases. b Do you or will you sell any goods, services, or assets to any of your officers, directors, trustees, highest compensated employees, or highest compensated Independent contractors listed In lines la, ib, or ic? If "Yes," describe any such sales that you made or intend to make, to whom you make or will make such sales, how the terms are or will be negotiated at arm's length, and explain how you determine or will determine you are or will be paid at least fair market value. Attach copies of any written contracts or other agreements relating to such sales. EZI Yes
0 No
EZI Yes
0 No
El Yes 0 N
El Yes 0 N
El Yes
EZINo
DYes Z No
8a Do you or will you have any leases, contracts, loans, or other agreements with your officers, directors, 0 Yes trustees, highest compensated employees, or highest compensated Independent contractors listed In lines la, ib, or ic? If "Yes," provide the Information requested in lines 8b through 8f. b Describe any written or oral arrangements that you made or intend to make. c Identify with whom you have or will have such arrangements. d Explain how the terms are or will be negotiated at arm's length. e Explain how you determine you pay no more than fair market value or you are paid at least fair market value. f Attach copies of any signed leases, contracts, loans, or other agreements relating to such arrangements. 9a Do you or will you have any leases, contracts, loans, or other agreements with any organization In which any of your officers, directors, or trustees are also officers, directors, or trustees, or In which any individual officer, director, or trustee owns more than a 35% interest? If "Yes," provide the information requested in lines 9b through 9f. EZI Yes
Z No
0 No
Form 1023 (Rev. 6-2006)
Form 1023 (Rev. 6-2006) Name: Educators for Excellence, Inc. EJN: 27-3382030 I1ThTI Compensation and Other Financial Arrangements With Your Officers, Directors, Trustees, Employees, and Independent Contractors (Continued)
Page
b Describe any written or oral arrangements you made or intend to make. c Identify with whom you have or will have such arrangements. d Explain how the terms are or will be negotiated at arm's length. e Explain how you determine or will determine you pay no more than fair market value or that you are paid at least fair market value. f Attach a copy of any signed leases, contracts, loans, or other agreements relating to such arrangements. ITIAI Your Members and Other Individuals and Organizations That Receive Benefits From You The following "Yes" or "No" questions relate to goods, services, and funds you provide to individuals and organizations as part of your activities. Your answers should pertain to past, present, and planned activities. (See instructions.) la In carrying out your exempt purposes, do you provide goods, services, or funds to individuals? If "Yes," describe each program that provides goods, services, or funds to individuals. b In carrying out your exempt purposes, do you provide goods, services, or funds to organizations? If "Yes," describe each program that provides goods, services, or funds to organizations. 2 Do any of your programs limit the provision of goods, services, or funds to a specific individual or group of specific Individuals? For example, answer "Yes," If goods, services, or funds are provided only for a particular individual, your members, individuals who work for a particular employer, or graduates of a particular school. If 'Yes," explain the limitation and how recipients are selected for each program. 3 Do any individuals who receive goods, services, or funds through your programs have a family or business relationship with any officer, director, trustee, or with any of your highest compensated employees or highest compensated independent contractors listed In Part V, lines la, ib, and lc? If "Yes," explain how these related individuals are eligible for goods, services, or funds. IJ1'1II Your History The following "Yes" or "No" questions relate to your history. (See instructions.) 1 Are you a successor to another organization? Answer "Yes," if you have taken or will take over the activities of another organization; you took over 25% or more of the fair market value of the net assets of another organization; or you were established upon the conversion of an organization from for-profit to non-profit status. If "Yes," complete Schedule G. 2 Are you submitting this application more than 27 months after the end of the month in which you were legally formed? If "Yes," complete Schedule E.
0 Yes 0 Yes 0 Yes Z No EZ No IJ No
0 Yes
21 No
0 Yes
0 No
0 Yes
Z No
1flThY4111 Your Specific Activities The following "Yes" or "No" questions relate to specific activities that you may conduct. Check the appropriate box. Your answers should pertain to past, present, and planned activities. (See instructions.) 1 Do you support or oppose candidates in political campaigns in any way? If 'Yes," explain. 2a Do you attempt to Influence legislation? If "Yes," explain how you attempt to influence legislation and complete line 2b. If "No," go to line 3a. b Have you made or are you making an election to have your legislative activities measured by expenditures by filing Form 5768? If "Yes," attach a copy of the Form 5768 that was already filed or attach a completed Form 5768 that you are filing with this application. If "No," describe whether your attempts to influence legislation are a substantial part of your activities. Include the time and money spent on your attempts to influence legislation as compared to your total activities. 3a Do you or will you operate bingo or gaming activities? If "Yes," describe who conducts them, and list all revenue received or expected to be received and expenses paid or expected to be paid In operating these activities. Revenue and expenses should be provided for the time periods specified in Part IX, Financial Data. b Do you or will you enter Into contracts or other agreements with Individuals or organizations to conduct bingo or gaming for you? If "Yes," describe any written or oral arrangements that you made or intend to make, Identify with whom you have or will have such arrangements, explain how the terms are or will be negotiated at arm's length, and explain how you determine or will determine you pay no more than fair market value or you will be paid at least fair market value. Attach copies or any written contracts or other agreements relating to such arrangements. c List the states and local Jurisdictions, including Indian Reservations, in which you conduct or will conduct gaming or bingo.
Form
0 Yes 0 Yes 0 Yes
E21 No 121 No 121 No
0 Yes
121 No
0 Yes
121 No
1023 (Rev. 6-2006)
Form 1023 (Rev. 8-2006) Name: Educators for Excellence, Inc. EIN: 27- 3382030 I1Th'4iIl Your Specific Activities (Continued) 4a Do you or will you undertake funcfralsing? If "Yes," check all the fundraising programs you do or will 0 Yes conduct. (See instructions.) IZ mail solicitations phone solicitations E email solicitations hZI accept donations on your website IZ personal solicitations [ZI receive donations from another organization's webslte El vehicle, boat, plane, or similar donations 0 government grant solicitations 121 foundation grant solicitations 12] Other
Page
No
Attach a description of each fundralslng program. b Do you or will you have written or oral contracts with any Individuals or organizations to raise funds for you? if "Yes," describe these activities. Include all revenue and expenses from these activities and state who conducts them. Revenue and expenses should be provided for the time periods specified in Part IX, Financial Data. Also, attach a copy of any contracts or agreements. c Do you or will you engage In fundralsing activities for other organizations? If "Yes," describe these arrangements. include a description of the organizations for which you raise funds and attach copies of all contracts or agreements. d Ust all states and local jurisdictions in which you conduct fundraising. For each state or local jurisdiction listed, specify whether you fundralse for your own organization, you fundralse for another organization, or another organization fundralses for you. e Do you or will you maintain separate accounts for any contributor under which the contributor has the right to advise on the use or distribution of funds? Answer "Yes" if the donor may provide advice on the types of Investments, distributions from the types of investments, or the distribution from the donor's contribution account. If "Yes," describe this program, including the type of advice that may be provided and submit copies of any written materials provided to donors.
0 0
Yes
121
No
Yes
121
No
Yes
No
5 Are you affiliated with a governmental unit? If "Yes," explain. 0 Yes 6a Do you or will you engage in economic development? If "Yes," describe your program. 0 Yes b Describe in full who benefits from your economic development activities and how the activities promote exempt purposes. 7a Do or will persons other than your employees or volunteers develop your facilities? if "Yes," describe 0 Yes each facility, the role of the developer, and any business or family relationship(s) between the developer and your officers, directors, or trustees. b Do or will persons other than your employees or volunteers manage your activities or facilities? if "Yes," describe each activity and facility, the role of the manager, and any business or family relationship(s) between the manager and your officers, directors, or trustees. c if there is a business or family relationship between any manager or developer and your officers, directors, or trustees Identify the Individuals, explain the relationship, describe how contracts are negotiated at arm's length so that you pay no more than fair market value, and submit a copy of any contracts or other agreements. 8 Do you or will you enter Into joint ventures, Including partnerships or limited liability companies treated as partnerships, in which you share profits and losses with partners other than section 501(c)(3) organizations? if "Yes," describe the activities of these joint ventures in which you participate. 9a Are you applying for exemption as a childcare organization under section 501 (k)? If "Yes," answer lines 9b through 9d. If "No," go to line 10. b Do you provide child care so that parents or caretakers of children you care for can be gainfully employed (see Instructions)? If "No," explain how you qualify as a childcare organization described in section 501(k). c Of the children for whom you provide child care, are 85% or more of them cared for by you to enable their parents or caretakers to be gainfully employed (see instructions)? If "No," explain how you qualify as a childcare organization described in section 501 (k). d Are your services available to the general public? If "No," describe the specific group of people for whom your activities are available. Also, see the instructions and explain how you qualify as a childcare organization described in section 501(k). 10 Do you or will you publish, own, or have rights in music, literature, tapes, artworks, choreography, scientific discoveries, or other intellectual property? If "Yes," explain. Describe who owns or will own any copyrights, patents, or trademarks, whether fees are or will be charged, how the fees are determined, and how any items are or will be produced, distributed, and marketed.
0
12]
No 121 No
121
No
Yes
No
El Yes 0 No
El Yes 0 No DYes El No
El Yes
El No
El Yes ONo
0 Yes
121 No
Form 1023 (Rev. 6-2006)
Form 1023 (Rev. 6-2006) Name: Educators for Excellence, Inc. EIN: 27 - 3382030 FUNI&OF Your Specific Activities (Continued) 11 Do you or will you accept contributions of: real property; conservation easements; closely held 0 Yes securities; intellectual property such as patents, trademarks, and copyrights; works of music or art; licenses; royalties; automobiles, boats, planes, or other vehicles; or collectibles of any type? If "Yes," describe each type of contribution, any conditions imposed by the donor on the contribution, and any agreements with the donor regarding the contribution.
Page
IZ] No
12a Do you or will you operate In a foreign country or countries? If "Yes," answer lines 12b through 12d. If "No," go to line 13a. b Name the foreign countries and regions within the countries In which you operate. c Describe your operations in each country and region in which you operate. d Describe how your operations in each country and region further your exempt purposes. 13a Do you or will you make grants, loans, or other distributions to organization (s)? If "Yes," answer lines 13b through 13g. If "No," go to line 14a. b Describe how your grants, loans, or other distributions to organizations further your exempt purposes. c Do you have written contracts with each of these organizations? If "Yes," attach a copy of each contract. d Identify each recipient organization and any relationship between you and the recipient organization. e Descrlbe the records you keep with respect to the grants, loans, or other distributions you make. f Describe your selection process, including whether you do any of the following: (1) Do you require an application form? If "Yes," attach a copy of the form. (11) Do you require a grant proposal? If "Yes," describe whether the grant proposal specifies your responsibilities and those of the grantee, obligates the grantee to use the grant funds only for the purposes for which the grant was made, provides for periodic written reports concerning the use of grant funds, requires a final written report and an accounting of how grant funds were used, and acknowledges your authority to withhold and/or recover grant funds In case such funds are, or appear to be, misused. g Describe your procedures for oversight of distributions that assure you the resources are used to further your exempt purposes, Including whether you require periodic and final reports on the use of resources. 14a Do you or will you make grants, loans, or other distributions to foreign organizations? If "Yes," answer lines 14b through 14f. If "No," go to line 15. b Provide the name of each foreign organization, the country and regions within a country in which each foreign organization operates, and describe any relationship you have with each foreign organization.
0 Yes
LZ No
0 Yes
LZi No
0 Yes
0 No
0 Yes 0 Yes
0 No 0 No
0 Yes
121 No
c Does any foreign organization listed In line 14b accept contributions earmarked for a specific country 0 Yes or specific organization? If "Yes," list all earmarked organizations or countries. d Do your contributors know that you have ultimate authority to use contributions made to you at your 0 Yes discretion for purposes consistent with your exempt purposes? If "Yes," describe how you relay this information to contributors. e Do you or will you make pre-grant Inquiries about the recipient organization? If "Yes," describe these 0 Yes inquiries, including whether you Inquire about the recipient's financial status, its tax-exempt status under the Internal Revenue Code, its ability to accomplish the purpose for which the resources are provided, and other relevant Information. f Do you or will you use any additional procedures to ensure that your dlstributions to foreign organizations are used in furtherance of your exempt purposes? If "Yes," describe these procedures, including site visits by your employees or compliance checks by Impartial experts, to verify that grant funds are being used appropriately. 0 Yes
0 No 0 No
0 No
0 No
Form
1023
(Rev. 6-2006)
Form 1023 (Rev. 6-2006)
Name: Educators for Excellence, Inc. EIN: 27 - 3382030 II'AHI Your Specific Activities (Conti, 15 Do you have a close connection with an anlzations? if Yes 16 Are you applying for exemption as a cooperative hospital service organization under section El Yes 501(e)? If "Yes," explain. 17 Are you applying for exemption as a cooperative service organization of operating educational 0 Yes organizations under section 501(f)? If 'Yes" explain. 18 Are vou aoolvinci for as a charitable risk under section 501(n)? If "Yes" explain. 0 Yes 19 Do you or will you operate a school? If "Yes," complete Schedule B. Answer 'Yes," whether you 0 Yes operate a school as your main function or as a secondary activity. 20 Is your main function to provide hospital or medical care? If "Yes," complete Schedule C. 0 Yes 21 Do you or will you provide low-income housing or housing for the elderly or handicapped? If 0 Yes "Yes," complete Schedule F. 22 Do you or will you provide scholarships, fellowships, educational loans, or other educational grants to 0 Yes individuals, Including grants for travel, study, or other similar purposes? If "Yes," complete Schedule H. Note: Private foundations may use Schedule H to request advance approval of individual grant procedures.
F] No 0 No
IJ 21 21 21
No No No No
121 No 121 No
Form 1
023 (Rev. 6-2006)
Form 1023 (Rev. 6-2006)
Name: Educators
for Excellence, Inc.
EIN:
27 - 3382030
Page
ITI)1 Financial Data For purposes of this schedule, years In existence refer to completed tax years. Ifin existence 4 or more years, complete the schedule for the most recent 4 tax years. If in existence more than 1 year but less than 4 years, complete the statements for each year in existence and provide projections of your likely revenues and expenses based on a reasonable and good faith estimate of your future finances for a total of 3 years of financial information. If in existence less than 1 year, provide projections of your likely revenues and expenses for the current year and the 2 following years, based on a reasonable and good faith estimate of your future finances for a total of 3 years of financial information. (See instructions.) A. Statement of Revenues and Expenses
Type of revenue or expense 3 prior tax years or 2 succeeding tax years Current tax year (a) From -----------(b) From -----------(c) From -----------(d) From -----------(e) Provide Total for (a) through (d) To X! 1 1. To To To
1 Gifts, grants, and contributions received (do not Include unusual grants) 2 Membership fees received 3 Gross investment income 4 Net unrelated business income 5 Taxes levied for your benefit 6 Value of services or facilities furnished by a governmental unit without charge (not Including the value of services generally furnished to the public without charge) cc 7 Any revenue not otherwise listed above or in lines 9-12 below _(attach _an itemized list) 8 Total of lines 1 through 7 9 Gross receipts from admissions, merchandise sold or services performed or furnishing of facilities in any activity that Is related to your exempt purposes (attach itemized list) 10 Total of lines 8 and 9 11 Net gain or loss on sale of capital assets (attach schedule and see instructions)
600,000 50,000 0 0
01
600,000 100,000 0 0
01
600,000 200,000 0 0 0
1,800,000 350,000 0 0 0
0 0
0 800,000
0 150,000
12 Unusual grants 13 Total Revenue Add lines 10 through 12 - 14 Furidralsing expenses 15 Contributions, gifts, grants, and similar amounts paid out (attach an Itemized list) 16 Disbursements. to or for the benefit of members (attach an Itemized list) 17 Compensation of officers, directors, and trustees 18 Other salaries and wages 19 Interest expense 20 Occupancy (rent, utilities, etc.) 21 Depreciation and depletion 22 Professional fees 23 Any expense not otherwise classified, such as program services _(attach _itemized _list) 24 Total Expenses Add lines 14 throu gh 23
0 0 0
01
01
0 0 800,000
700.000
0 198,900 201,900 0 37,500 0 18,000
0 208,845 231,955 0 41,250 0 20.000
0 218,290 266,710 0 43,375 0 22.000
CL x U
144,375 615,675
01 0
161,500 716.875
Form 1023 (Rev. 6-2006)
Form 1023 (Rev. 6-2008)
Name: Educators
EIN:
27 - 3382030
Year End:
Page
10
B. Balance Sheet (for your most recently completed tax year)
6/30/10
(Whole dollars) Assets 0 1 1 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . 0 2 3 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 3 4 Bonds and notes receivable (attach an itemized list) . . . . . . . . . . . . . . . . 4 0 5 Corporate stocks (attach an itemized list) . . . . . . . . . . . . . . . . . 0 5 6 Loans receivable (attach an itemized list) . . . . . . . . . . . . . . . . . . 6 0 7 Other Investments (attach an itemized list) . . . . . . . . . . . . . . . . . 7 0 8 Depreciable and depletable assets (attach an itemized list) . . . . . . . . . . . . 0 8 9 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 0 10 Other assets (attach an Itemized list) . . . . . . . . . . . . . . . . . . . 10 0 11 11 Total Assets (add lines 1 through 10) . . . . . . . . . . . . . . . 0 Liabilities 12 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 0 13 Contributions, gifts, grants, etc. payable . . . . . . . . . . . . . . . . . . 0 13 14 0 14 Mortgages and notes payable (attach an itemized list) . . . . . . . . . . . . . . . 15 Other liabilities (attach an itemized list) . . . . . . . . . . . . . . . . . . . . 0 15 16 16 0 Total Liabilities (add lines 12 through 15) . . . . . . . . . . . . . . . Fund Balances or Net Assets 17 Total fund balances or net assets 0 17 . . . . . . . 18 Total Liabilities and Fund Balances or Net Assets (add lines 16 and 17) 0 18 19 Have there been any substantial changes in your assets or liabilities since the end of the period q Yes No shown above? If "Yes," explain. IThEI Public Charity Status Part X is designed to classify you as an organization that is either a private foundation or a public charity. Public charity status is a more favorable tax status than private foundation status. If you are a private foundation, Part X is designed to further determine whether you are a private operating foundation. (See instructions.) 1a Are you a private foundation? If "Yes," go to line 1 b. If "No," go to line 5 and proceed as instructed. If you are unsure, see the instructions. b As a private foundation, section 508(e) requires special provisions in your organizing document in addition to those that apply to all organizations described in section 501 (c)(3). Check the box to confirm that your organizing document meets this requirement, whether by express provision or by reliance on operation of state law. Attach a statement that describes specifically where your organizing document meets this requirement, such as a reference to a particular article or section in your organizing document or by operation of state law. See the instructions, including Appendix B, for information about the special provisions that need to be contained in your organizing document. Go to line 2. 2 Are you a private operating foundation? To be a private operating foundation you must engage directly in the active conduct of charitable, religious, educational, and similar activities, as opposed to Indirectly carrying out these activities by providing grants to individuals or other organizations. If "Yes," go to line 3. If "No," go to the signature section of Part XI. 3 Have you existed for one or more years? If "Yes," attach financial information showing that you are a private operating foundation; go to the signature section of Part XI. If "No," continue to line 4. El Yes No El
q Yes
q No
q Yes
q No q No
4 Have you attached either (1) an affidavit or opinion of counsel, (including a written affidavit or opinion q Yes from a certified public accountant or accounting firm with expertise regarding this tax law matter), that sets forth facts concerning your operations and support to demonstrate that you are likely to satisfy the requirements to be classified as a private operating foundation; or (2) a statement describing your proposed operations as a private operating foundation?
5 If you answered "No" to line 1 a, Indicate the type of public charity status you are requesting by checking one of the choices below. You may check only one box. The organization is not a private foundation because it is: a 509(a)(1) and 170(b)(1XA)(i).a church or a convention or association of churches. Complete and attach Schedule A. q b 509(a)(1) and 170(b)(1)(A)(ii)a school. Complete and attach Schedule B. q c 509(a)(1) and 170(b)(1)(A)(iii)a hospital, a cooperative hospital service organization, or a medical research El organization operated In conjunction with a hospital. Complete and attach Schedule C. d 509(a)(3)an organization supporting either one or more organizations described in line 5a through c, f, g, or h q or a publicly supported section 501 (c)(4), (5), or (6) organization. Complete and attach Schedule D.
Form
1023 (Rev. 6-2006)
Form 1023 (Rev. 6-2006)
Name: Educators
EIN:
27 _ 3382030
Page
11
Public Charity Status (Continued) e 509(a)(4)an organization organized and operated exclusively for testing for public safety. f 509(a)(1) and 170(b)(1)(A)(iv)an organization operated for the benefit of a college or university that is owned or operated by a governmental unit. g 509(a)(1) and 170(b)(1)(A)(vl)an organization that receives a substantial part of its financial support in the form of contributions from publicly supported organizations, from a governmental unit, or from the general public. h 509(a)(2)an organization that normally receives not more than one-third of its financial support from gross investment income and receives more than one-third of its financial support from contributions, membership fees, and gross receipts from activities related to its exempt functions (subject to certain exceptions). i A publicly supported organization, but unsure If it is described in 5g or 5h. The organization would like the IRS to decide the correct status. If you checked box g, h, or i in question 5 above, you must request either an advance or a definitive ruling by selecting one of the boxes below. Refer to the instructions to determine which type of ruling you are eligible to receive. a Request for Advance Ruling: By checking this box and signing the consent, pursuant to section 6501(c)(4) of the Code you request an advance ruling and agree to extend the statute of limitations on the assessment of excise tax under section 4940 of the Code. The tax will apply only if you do not establish public support status at the end of the 5-year advance ruling period. The assessment period will be extended for the 5 advance ruling years to 8 years, 4 months, and 15 days beyond the end of the first year. You have the right to refuse or limit
the extension to a mutually agreed-upon period of time or issue(s). Publication 1035, Extending the Tax
q q q q
Assessment Period, provides a more detailed explanation of your rights and the consequences of the choices you make. You may obtain Publication 1035 free of charge from the IRS web site at www.irs.gov or by calling toll-free 1-800-829-3676. Signing this consent will not deprive you of any appeal rights to which you would otherwise be entitled. If you decide not to extend the statute of limitations, you are not eligible for an advance ruling.
Consent Fixing Period of Limitations Upon-1
ient6of Tax Under Sectidn.4940 of,the Intel
t;
For Organization
------------------------------------------------- ---- ------------------------------------------ --------------(Date) (Type or print name of signer)

(Signature of Officer, Director, Trustee, or other authorized official) (Type or print title or authority of signer)
For IRS Use Only
IRS Director, Exempt Organizations
----------------r..---(Date) q
b Request for Definitive Ruling: Check this box if you have completed one tax year of at least 8 full months and you are requesting a definitive ruling. To confirm your public support status, answer line 6b(i) if you checked box g in line 5 above. Answer line 6b(ii) if you checked box h in line 5 above. If you checked box I in line 5 above, answer both lines 6b(i) and pi).
(1) (a) Enter 2% of line 8, column (e) on Part IX-A. Statement of Revenues and Expenses. (b) Attach a list showing the name and amount contributed by each person, company, or organization whose q gifts totaled more than the 2% amount. If the answer is "None," check this box. (ii) (a) For each year amounts are included on lines 1, 2, and 9 of Part IX-A. Statement of Revenues and Expenses, attach a list showing the name of and amount received from each disqualified person. If the q answer Is "None," check this box. ' (b) For each year amounts are included on line 9 of Part IX-A. Statement of Revenues and Expenses, attach a list showing the name of and amount received from each payer, other than a disqualified person, whose payments were more than the larger of (1) 1% of line 10, Part IX-A. Statement of Revenues and Expenses, or (2) $5,000. If the answer is "None," check this box. 7 Did you receive any unusual grants during any of the years shown on Part IX-A. Statement of Revenues and Expenses? If "Yes," attach a list including the name of the contributor, the date and amount of the grant, a brief description of the grant, and explain why it Is unusual. q Yes
q q No
Form 1023 (Rev. 6-2006)
EIN: 27 - 3382030 Page 12 IThL1I User Fee Information You must include a user fee payment with this application. it will not be processed without your paid user fee. If your average annual gross receipts have exceeded or will exceed $10,000 annually over a 4-year period, you must submit payment of $750. if your gross receipts have not exceeded or will not exceed $10,000 annually over a 4-year period, the required user fee payment is $300. See instructions for Part XI, for a definition of gross receipts over a 4-year period. Your check or money order must be Form 1023 (Rev. 6-2006)
Name: Educators
made payable to the United States Treasury. User fees are subject to change. Check our website at www.irs.gov and type "User Fee" in the keyword box, or call Customer Account Services at 1-877-829-5500 for current information.
1 Have your annual gross receipts averaged or are they expected to average not more than $10,000? 0 Yes If "Yes," check the box on line 2 and enclose a user fee payment of $300 (Subject to changesee above). If 'No' check the box on line 3 and enclose a user fee payment of $750 (Subiect to chanaesee above. 2 Check the box if have enclosed the reduced user fee payment of $300 (Subject to 3 Check the box if you have enclosed the user fee payment of $750 (Subject to change). --
I declare under application, incl
121 No
121
I am authorized to sign this application on behalf of the above organization and that I have examined This schedules and attachments, and to the beat of my knowledge it Is true, correct, and complete.
Please Here
=cer,that Tfljstee, or other rector, authorized official) (rype or print name of signer) (CIa e)
Co (Type or print title or authority of signer) Form 1023 (Rev. 6.2006)
Reminder: Send the completed Form 1023 Checklist with your filled-in-application.
Internal Revenue Service P.O. Box 2508 - Room 4511 Cincinnati, Ohio 45201 Date: January 6, 2011
Department of the Treasury
Employer Identification Number: 27-3382030 Educators for Excellence Inc Person to Contact - Group #: c/o Eli Greenberg Angie Bender - 7828 270 Madison Ave, 9th Fir ID# 0395223 New Yrk, NY 10016 Contact Telephone Numbers: 513-263-4492 Phone Fax 513-263-4590 Response Due Date: January 20, 2011 Dear Sir or Madam: Thank you for the information recently submitted regarding your application for exemption. Unfortunately, we need more information before we can complete our consideration of your application. Please provide the information requested on the enclosure by the response due date shown above. Your response must be signed by an authorized person or an officer whose name is listed on the application. Also, the information you submit should be accompanied by the following declaration: Under penalties of perjury, / declare that / have examined this information, including accompanying documents, and, to the best of my knowledge and belief, the information contains all the relevant facts relating to the request for the information, and such facts are true, correct, and complete. To facilitate processing of your application, please attach a copy of this letter to your response. If you do not provide the requested information in a timely manner, we will assume that you do not want us to consider your application further and will close your case. Ifyou do not respond to the information request by the due date, we will conclude that you have not taken all the steps necessary to complete your application for exemption Under section 7428(b)(2) of the Code, you must show that you have taken all the reasonable steps to obtain your exemption letter under IRS procedures in a timely manner and exhausted your administrative remedies before you can pursue a declaratory judgment. Accordingly, if you fail to timely provide the information we need to enable us to act on your application, you may lose your right to a declaratory judgment under Code section 7428.
Letter 2382
Page Educators for Excellence Inc 27-3382030 If you have any questions concerning this matter, or you cannot respond by the due date, please contact the person whose name and telephone number are shown in the heading of this letter. Sincerely yours,
atiiei3endex
Angie Bender Exempt Organizations Specialist Additional Information Requested: 1. Read the Penalties of Perjury statement on page 1. Then, have an officer or director of the organization sign and date below, indicating you agree to the Declaration. Return this page with your response. Officer Signature Officer Name & Title Date
2. You applied for exemption under section 501(c)(3) of the code. Internal Revenue Code (IRC) section 501 (c)(3) organizations are organized and operated exclusively for one or more of the following purposes: Charitable, Religious, Educational, Scientific, or Literary. Contributions to domestic organizations exempt under section 501(c)(3) are deductible as charitable contributions on the donor's federal income tax return. IRC section 501 (c)(6) organizations are organized and operated as an association of persons (including legal entities) having a common business interest which promotes a common business interest but is not engaged in a regular business of a kind ordinarily carried on for profit. The organization's activities are directed to the improvement of business conditions of one 01 more lines of business and not to per-form particular services for individual persons. Your activities consist developing an educational policy, networking, social network groups and the exhibits you provide states that you are trying to improve the business conditions for teachers, reviewing New York State Contracts and Law and ensuring that the policies are followed. You are similar to the organization described in Revenue Ruling 70-641 which states a nonprofit organization whose membership consists of individuals engaged in various professions organized to promote a common business interest and to improve professional
Page 3 Educators for Excellence Inc 27-3382030 services and techniques of the members in the field of public health and welfare, qualifies for exemption. 1501(c)(6)-1. Therefore, we believe you are more clearly described under section 501 (c)(6) of the Code. Please refer to Publication 557 for a discussion of these types of organizations. If you agree, please complete the enclosed Form 1024 and Schedule C. If you disagree, please submit a statement signed by an officer explaining your position. In addition, you may wish to include a copy of any pertinent revenue rulings or court cases you feel will substantiate your position. PLEASE DIRECT ALL CORRESPONDENCE REGARDING YOUR CASE TO: US Mali: Internal Revenue Service Exempt Organizations P. 0. Box 2508 Cincinnati, OH 45201 ATT: Angie Bender
Room 4511, Group 7828
Street Address: Internal Revenue Service Exempt Organizations 550 Main St, Federal Bldg. Cincinnati, OK 45202 ATT: Angie Bender
Room 4511 Group 7828
DIRECT DIAL: FACSIMILE:
ELI GREENBERG (212) 545 -4790
(212) 686-0114 g reenbercwhath.com
December 29, 2010 BY FEDERAL EXPRESS Internal Revenue Service Exempt Organizations 550 Main Street, Federal Building Cincinnati, OH 45202 ATTN: Angie Bender Room 4511, Group 7823
Re:
Educators for Excellence, Inc. EIN: 27-3382030
Dear Ms. Bender: We write in response to your letter dated November 22, 2010 (copy enclosed) with respect to the Application for Exemption for the above-referenced organization. The paragraphs numbered below correspond to those of your letter. 1. Attached as Exhibit 1 is an executed copy of the Penalties of Perjury statement. 2. Following is a detailed explanation of the activities that the organization is or will conduct: (a) Activit y : Develop a cohesive platform of education policy that is grounded in a Declaration of Teachers Principles and Beliefs. What does the activity entail? - Members of the organization will meet and review pertinent research regarding the issues outlined in the Declaration of Teachers Principles and Beliefs (copy attached as Exhibit 2). Using said research the members will create a detailed description of the platform that describes the areas that the organization will work on in more depth.
Internal Revenue Service ATTN: Angie Bender - Room 4511, Group 7823 December 29, 2010 Page 2
Who conducts the activity? - The activity is led by an Education for Excellence Director and the remainder of the team are members of the organization. When is the activity conducted? - The teams meet twice a month for 3-4 months or until the project is completed. Where will the activities be conducted? - The activities will be conducted in the organization's office space or in a donated conference room space. Who may participate in the activity? - Any member of the organization may participate in this activity. Members are current 01 former teachers who agree with the organization's Declaration of Principles and Beliefs. How are the participants selected? - Members volunteer and are selected based on an application and their ability to commit the necessary time. Provide sample agendas, topics and materials that will be used. - Attached as Exhibit 3 are the Teacher Evaluation Policy Team Agendas for the first 3 meetings and a list of materials. All topics come from the Declaration of Teachers Principles and Beliefs. Is there a fee for participation in the activity? If so, provide a fee schedule. - No fee is required or requested. How is the general public notified about the services of the organization? Explain fully. - The completion of a research area is released to the media, emailed out to the organization's list-serve, and made public on its website. (b) Activit y : Arrange meetings, conferences, social network groups, panel discussions and professional development opportunities to facilitate networking of educational professionals supporting the organization's policies and to assist in the refinement of the policy. What does the activity entail? The organization runs discussions with experts on relevant education issues, helping members to become better informed to improve their
Internal Revenue Service ATTN: Angie Bender Room 4511, Group 7823 December 29, 2010 Page 3
practice and explain policy changes within education. An example would be a panel discussion with several researchers on the uses and value of value-added data in determining teachers' effectiveness. Who conducts the activity? - The activity is planned and run by the organization's employees. In addition, experts from a variety of education organizations often volunteer to participate in the activities. When is the activity conducted? - Once a month. Where will the activities be conducted? - In a donated or rented space/conference hall/auditorium. Who may participate in the activity? - Any member of the organization may participate. How are the participants selected? - Open to all members based on a first-come-first served basis until the space is at capacity. Provide sample agendas, topics and materials that will be used. - Topics are based on issues that are pertinent to member teachers. Attached as Exhibit 4 is a sample agenda from a recent panel on Value-Added data. Is there a fee for participation in the activity? If so, provide a fee schedule. - There is not a fee to participate in these events. How is the general public notified about the services of the organization? Explain fully. - All of our events our posted publicly on the organization's website, emailed out to anyone on its list serve, and often made available on other education sites and social networking sites. (c) Activit y : Develop training materials and programs for educators to improve the motivation and quality of instruction of educators. What does the activity entail? - Training educators to become leaders in their schools. These leaders can then
Internal Revenue Service ATTN: Angie Bender - Room 4511, Group 7823 December 29, 2010 Page
guide school based development programs among their colleagues within their school. Who conducts the activity? - The initial training is done by a Director, who then also supports the school based programming. When is the activity conducted? - Twice a year, new school leaders are trained and supported within their schools to run supportive programming based on school needs. Where will the activities be conducted? - Trainings occur in the organization's offices and programming occurs in schools around New York City. Who may participate in the activity? - Any member may become a trained school leader, but all teachers can participate in the programming How are the participants selected? - All participants are selected based on an application and an interview with the organization's outreach director. Provide sample agendas, topics and materials that will be used. - These materials are still in the process of being designed. Is there a fee for participation in the activity? If so, provide a fee schedule. - There is not a fee to participate in this activity. How is the general public notified about the services of the organization? Explain fully. - This opportunity is sent out to the organization's list serve and posted on its website during the recruitment period. (d) Activit y : Disseminate qualitative and quantitative information to the teaching community in order to enhance the quality of the education debate. What does the activity entail? The organization uses its blog and weekly news updates to inform teachers about developments in education to help them stay informed.
Who conducts the activity? - The organization's staff prepared the news and display it publicly. When is the activity conducted? - Daily on the blog and weekly for the organization's email list serve. Where will the activities be conducted? - All of these activities are conducted with in the organization's offices. Who may participate in the activity? - Materials are made public. How are the participants selected? - There are no participants for this activity. Provide sample agendas, topics and materials that will be used. - Attached as Exhibit 5 is a sample of the organization's "weekly news blast" that shows one way it informs its members. These email blasts will also be made public on our website. Is there a fee for participation in the activity? If so, provide a fee schedule. - There is not a fee for these activities. How is the general public notified about the services of the organization? Explain fully. - All materials are posted on the organization's public website as well as emailed out to the entire list weekly. (e) Activity : Develop a resource platform and website to identify and collect education research and information. What does the activity entail? The organization collects, summarizes, and organizes research so that teachers can quickly locate important studies or articles related to different aspects of education. Who conducts the activity? - The organization's staff conducts this activity on behalf of teachers.
Internal Revenue Service ATTN: Angie Bender Room 4511, Group 7823 December 29, 2010 Page 6
When is the activity conducted? Materials are collected daily and published both daily on the blog and weekly in the organization's news updates. Where will the activities be conducted? These activities occur in the organization's offices Who may participate in the activity? The articles and summaries are public displayed. How are the participants selected? There is no selection for these activities. Provide sample agendas, topics and materials that will be used. Attached as Exhibit 5 is a sample "weekly news blast." Is there a fee for participation in the activity? If so, provide a fee schedule. There is not a fee for these activities. How is the general public notified about the services of the organization? Explain fully. All of there materials are hosted on a public website and emailed out to everyone on the organization's list serve in a weekly news digest. 3. The employer ID number for Educators for Excellence Advocacy, Inc. is 27-2484639. The duties of the individuals will be separated based on the tasks to be performed for each entity. The shared employees will be employed by one entity and "leased" to the second entity. Written time records will be maintained to allocate and account for the time spent on behalf of each entity and reimbursement will be made pursuant to a written agreement on a pro-rata basis based on time devoted to the activities of each entity. 4. The general public will not in any way be confused as to the different activities of Educators for Excellence, Inc. and Educators for Excellence Advocacy, Inc. The advocacy organization will engage in very different activities as it will engage in the advocacy to influence legislation and public policy in the area of education. It will clearly use its full name so as not to cause any confusion with any related entities. In fact, the general public will not be aware of the directors or the addresses of the organization and their similarity will not provide any cause of confusion.
5. The marketing/recruitment of member cost listed in line 23 is detailed as follows for year 1: $15,000 is designated for Q&A meetings with policy makers, $31,000 is designated for teacher networking events, $27,000 is designated for panel discussions on specific issues (as an example, see agenda for value-added panel attached as Exhibit 7), $12,000 is designated for a large end of the school-year event, $15,000 is designated for the organization's policy teams (see agenda attached as Exhibit 4), and the remaining $10,000 is designated for recruitment materials. All of these recruitment activities are designed to increase awareness and exposure about the organization and the opportunities it provides for teachers. 6. The three indicated board members will have the continual right to remain as board members in order to protect the integrity of the organization's purposes. The organization's educational mission may be challenged by entrenched bureaucracies, which may attempt to use any means available to disrupt the activities and goals of the organization. In any event, directors will be subject to removal for cause pursuant to Section 706 of the New York State Not-For-Profit Corporation Law. A copy of that statute is attached as Exhibit 6. Under penalties of perjury, 1 declare that / have examined this information, including accompanying documents, and to the best of my knowledge and belief, the information contains all the relevant facts relating to the request for the information, and such facts are true, correct, and complete. Very truly yours,
EDG/Igb/645077
Eli D. Greenberg
Internal Revenue Service P.O. Box 2508 - Room 4511 Cincinnati, Ohio 45201 Date: November 22, 2010 Educators for Excellence Inc c/o Eli Greenberg 270 Madison Ave, 9th Fir New York, NY 10016
Employer Identification Number: 27-3382030 Person to Contact - Group #: Angie Bender - 7828 ID# 0395223 Contact Telephone Numbers: 513-263-4492 Phone 513-263-4590 Fax Response Due Date: December 13, 2010
Dear Sir or Madam: We need more information before we can complete our consideration of your application for exemption. Please provide the information requested on the enclosure by the response due date shown above. Your response must be signed by an authorized person 01 an officer whose name is listed on your application. Also, the information you submit should be accompanied by the following declaration: Under penalties of perjury, / declare thatl have examined this information, including accompanying documents, and, to the best of my knowledge and belief, the information contains all the relevant facts relating to the request for the information, and such facts are true, correct, and complete. To facilitate processing of your application, please attach a copy of this letter to your response. This will enable us to quickly and accurately associate the additional documents with your case file. If we do not hear from you within that time, we will assume you no longer want us to consider your application for exemption and will close your case. As a result, the Internal Revenue Service will treat you as a taxable entity. If we receive the information after the response due date, we may ask you to send us a new application. In addition, if you do not respond to the information request by the due date, we will conclude that you have not taken all reasonable steps to complete your application for exemption. Under Code section 7428b)'(2), you must show that you have taken ail the reasonabe steps to obtain your exemption letter under IRS procedures in a timely manner and exhausted your administrative remedies before you can pursue a declaratory judgment. Accordingly, if you faU to timely provide the information we need to enable us to act on your application, you may lose your rights to a declaratory judgment under Code section 7428.
Letter 1312
Page 2 Educators for Excellence Inc 27-3382030 If you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter. Sincerely yours,
Angie Bender Exempt Organizations Specialist Enclosure: Information Request Additional Information Requested: 1. Read the Penalties of Perjury statement on page 1. Then, have an officer or director of the organization sign and date below, indicating you agree to the Declaration. Return this page with your response. Officer Signature Officer Name & Title
Date
2. The narrative of the activities did not provide enough detail. Please provide a detail explanation of each activity the organization is or will conduct. Please answer each of the bulleted questions for each activity: What does the activity entail? Who conducts the activity? When is the activity conducted? Where the activities will be conducted? Who may participate in the activity? How are the participants selected? Provide sample agendas, topics and materials that will be used Is there a fee for participation in the activity? If so, provide a fee schedule. How is the general public notified about the services of the organization? Explain fully. 3. You state that there will be one employee that will also be paid by Educators for Excellence Advocacy Inc. Please provide the Employer Identification Number (EIN) for the related organization and please state how the duties of the individual will be separated for each entity. 4. You state that the related organization Educators for Excellence Advocacy, Inc will have the same board, same location, etc. Please explain how the general public will be able to differentiate which activities will be conducted by each organization, 5. Please explain the marketing/recruitment of member costs that were listed in the Line 23 attachment. What type of marketing and recruiting will be done? Please explain fully.
Letter 1312 (Rev. 12/2007)
.-, -
Page 3 Educators for Excellence Inc 27-3382030 6. According to the Bylaws, Evan Stone, Sydney Morris and Anne-Margoriet Crousiilat will always be board members. Please state why these three board members have unlimited terms and explain what will happen if any individual does not act in the best interest of the organization or commit a crime. How will these board members be removed? Please explain fully.
PLEASE DIRECT ALL CORRESPONDENCE REGARDING YOUR CASE 10: US Mali: Internal Revenue Service Exempt Organizations P. 0. Box 2508 Cincinnati, OH 45201 ATT: Angie Bender Room 4511, Group 7828 Street Address: Internal Revenue Service Exempt Organizations 550 Main St, Federal Bldg. Cincinnati, OH 45202 ATT: Angie Bender Room 4511, Group 7828
Letter 1312 (Rev. 12/2007)
EXHIBIT B
5768
(Rov. September 2OO9) Depa,Im.nt of the TrooUiy
hiternol Revenue SeMce
ElectionfRevocation of Election by an Eligible Section 501 (c)(3) Organization To Make Expenditures To Influence Legislation
Section
For IRS Use Only

Employer Identification numbor
Name of organization
lerice, Inc.
Number and street (or P.O. box no, 11 mall la not delivered to afraol address)
27-3382030
Room/aulte ZIP + 4 -- - -
525 E. 11th Street

City, town or post office, and state
New York, NY 10009

1 ElectlonAs an eligible organization, we hereby elect to have the provisions 01 section 501(h) of the Code, relating to expenditures to Influence legislation, apply to our tax year ending ...................... ........... ..................... and (Months day and year) all subsequent tax years until revoked. Note: This election must be signed and postmarked within the first taxable year 10 which 11 applies. 2 RevocationAs an eligible organization, we hereby revoke our election to have the provisions 01 section 501(h) 01 the Code, relating 10 expenditures 10 influence legislation, apply to our tax year ending ..........................................................
(Month, day, and year)
Note: This revocation must be signed and postmarked before the first day of the tax year to which it applies. Under penalties 01 perjury, 1 declare that 1 am authorized to make this (check applicable box) Ile . on behalf of 1 abov named organization.
(8 na re of officer or trustee) (Type or print name and title)
91 election 0 revocation
Co-President2/2/2011
(Date)
General Instructions
Section references are to the Internal Revenue Code.
Section 501 (c)(3) states that an organization exempt under that section will lose Its tax-exempt status and Its qualification to receive deductible charltabie contributions If a substantial part of its activities are carried on (0 Influence iegislation. Section 501(h), however, permits certain eligible section 501 (c)(3) organizations to elect 10 make limited expenditures to Influence legislation. An organization making the election will, however, be subject to an excise tax under section 4911 1111 spends more than the amounts permitted by that section. Also, the organization may lose Its exempt status 11 its lobbying expenditures exceed the permitted amounts by more than 50% over a 4-year period. For any tax year In which an election under section 501 (h) Is In effect, an electing organization must report the actual and permitted amounts of its lobbying expenditures and grass roots expenditures (as defined In section 4911 (c)) on Its annual return required under section 6033. Sea Part 11-A of Schedule C (Form 990 or Form 990-EZ). Each electing member 01 an affiliated group must report these amounts for both Itself and the affiliated group as a whole.
To make or revoke the election, enter the ending date of the tax year to which the election or revocation applies in item 1 or 2, as applicable, and sign and date the form in the spaces provided. Eligible organizations. A section 501 (c)(3) organization is permitted (0 make the election 11 It is not a disqualified organization (see below) and Is described in: 1. Section 170(b)(1)(A)(11) (relating to educational Institutions), 2. Section 170(b)(1)(A)011) (relating 10 hospitals and medical research organizations), 3. Section 170(b)(1)(A)I[iv) (relating 10 organizations supporting government schools), 4. Section 170(b)(1)(A)(vi) (relating to organizations publicly supported by charitable contributions), 5. Section 509(a)(2) (relating 10 organizations publicly supported by admissions, sales, etc.), or 6. Section 509(a)(3) (relating to organizations supporting certain types of public charities other than those section 509(a)(3) organizations that support section 501 (c)(4), (5), or (6) organizations). Disqualified organizations, The following types of organizations are not permitted to make the election: a. Section 170(b)(1)(A)(I) organizations (relating 10 churches),
b. An integrated auxiliary 01 a church or of a convention or association of churches, or c. A member of an affiliated group 01 organizations 11 one or more members 01 such group is described in a or b 01 this paragraph. Affiliated organizations. Organizations are members of an affiliated group of organizations only 11(1) the governing Instrument of one such organization requires It to be bound by the decisions of the other organization on legislative Issues, or (2) the governing board of one such organization Includes persons (1) who are specifically designated representatives of another such organization or are members of the governing board officers, or paid executive staff members 01 such other organization, and (11) who, by aggregating their votes, have sufficient voting power to cause or prevent action on legislative Issues by the first such organizatlon. For more details, see section 4911 and section 501(h). Note. A private foundation (including a private operating foundation) Is not an eligible organization. Where 10 file. Mali Form 5768 to the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0027.
Form
5768
(Rev. 8-2009)
ISA
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EXHIBIT C
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Declaration Under Penalties of Perjury
Under penalties of perjury, 1 declare that 1 have examined this information, including accompanying documents, and, to the best of my knowledge and belief, the information contains all the relevant facts relating to the request for the information, and such facts are true, correct and complete. EDUCATORS FOR EXCELLENCE, INC.
By: Name: Ivcwt +04C
Title: Co 4O(M.1d4r
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Date:
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D00449003 v .I 2/2/2011
Internal Revenue Service P.O. Box 2508 - Room 4511 Cincinnati, Ohio 45201 Date: January 6, 2011
Educators for Excellence Inc c/o Eli Greenberg 270 Madison Ave, 9th Fir New York, NY 10016
Employer Identification Number: 27-3382030 Person to Contact - Group #: Angie Bender - 7828 ID# 0395223 Contact Telephone Numbers: 513-263-4492 Phone 513-263-4590 Fax Response Due Date: January 20, 2011
Dear Sir or Madam: Thank you for the information recently submitted regarding your application for exemption. Unfortunately, we need more information before we can complete our consideration of your application. Please provide the information requested on the enclosure by the response due date shown above. Your response must be signed by an authorized person or an officer whose name is listed on the application. Also, the information you submit should be accompanied by the following declaration:
Under penalties of perjury, / declare that / have examined this information, including accompanying documents, and, to the best of my knowledge and belief, the information contains all the relevant facts relating to the request for the information, and such facts are true, correct, and complete.
To facilitate processing of your application, please attach a copy of this letter to your response. 11 you do not provide the requested information in a timely manner, we will assume that you do not want us to consider your application further and will close your case. If you do not respond to the information request by the due date, we will conclude that you have not taken all the steps necessary to complete your application for exemption Under section 7428(b)(2) of the Code, you must show that you have taken all the reasonable steps to obtain your exemption letter under IRS procedures in a timely manner and exhausted your administrative remedies before you can pursue a declaratory judgment. Accordingly, if you fail to timely provide the information we need to enable us to act on your application, you may lose your right to a declaratory judgment under Code section 7428.
Letter 2382
Page Educators for Excellence Inc 27-3382030 If you have any questions concerning this matter, or you cannot respond by the due date, please contact the person whose name and telephone number are shown in the heading of this letter. Sincerely yours,
astie gJende't
Angie Bender Exempt Organizations Specialist Additional Information Requested: 1. Read the Penalties of Perjury statement on page 1. Then, have an officer or director of the organization sign and date below, indicating you agree to the Declaration. Return this page with your response.
Officer Signature
Officer Name & Title
Date
2. You applied for exemption under section 501 (c)(3) of the code. Internal Revenue Code (LRC) section 501 (c)(3) organizations are organized and operated exclusively for one or more of the following purposes: Charitable, Religious, Educational, Scientific, or Literary. Contributions to domestic organizations exempt under section 501 (c)(3) are deductible as charitable contributions on the donor's federal income tax return. IRC section 501 (c)(6) organizations are organized and operated as an association of persons (including legal entities) having a common business interest which promotes a common business interest but is not engaged in a regular business of a kind ordinarily carried on for profit. The organization's activities are directed to the improvement of business conditions of one 01 more lines of business and not to perform particular services for individual persons. Your activities consist developing an educational policy, networking, social network groups and the exhibits you provide states that you are trying to improve the business conditions for teachers, reviewing New York State Contracts and Law and ensuring that the policies are followed. You are similar to the organization described in Revenue Ruling 70-641 which states a nonprofit organization whose membership consists of individuals engaged in various professions organized to promote a common business interest and to improve professional
Page 3 Educators for Excellence Inc 27-3382030 services and techniques of the members in the field of public health and welfare, qualifies for exemption. 1.501(c)(6)-1. Therefore, we believe you are more clearly described under section 501 (c)(6) of the Code. Please refer to Publication 557 for a discussion of these types of organizations. If you agree, please complete the enclosed Form 1024 and Schedule C. If you disagree, please submit a statement signed by an officer explaining your position. In addition, you may wish to include a copy of any pertinent revenue rulings or court cases you feel will substantiate your position. PLEASE DIRECT ALL CORRESPONDENCE REGARDING YOUR CASE TO: US Mali: Street Address: Internal Revenue Service Exempt Organizations 550 Main St, Federal Bldg. Cincinnati, OH 45202 ATT: Angie Bender Room 4511, Group 7828
Internal Revenue Service Exempt Organizations P. 0. Box 2508 Cincinnati, OH 45201 AlT: Angie Bender Room 4511 Group 7828
A Declaration of Teachers' Principles and Beliefs

We, as educators, believe that it is our duty to prepare our students for college, the workplace, and beyond. We know there is no factor more important to students' success than the quality of our instruction. For that reason we need a system that allows, supports, and encourages us to do the best we can for our students. As educators, we demand a system that: 1. Recruits, retains, and supports the highest quality teachers by offering A higher starting salary Encouragement and opportunity for continued intellectual development High level professional development and support An evenhanded merit-based pay structure to reward excellent teachers 2. Restores professionalism to education by Evaluating teachers through a holistic and equitable system that incorporates value-added student achievement data as one component of effectiveness Reestablishing tenure as a significant professional milestone through use of a comprehensive teacher evaluation system Eliminating the practice of "Last In, First Out" for teacher layoffs 3. Places student achievement first by Giving students and parents more opportunity to choose great schools Displaying more transparency in both fiscal choices and decision-making processes Implementing an effective system of evaluating administrators Adopting higher standards for students and teachers Opening the education reform conversation to the voices of teachers and parents
1, , agree with the principles outlined in this document and want to be a member/supporter of M. Click one: _I am a current teacher, paraprofessional, or administrator. _I am a former teacher, paraprofessional, or administrator. _I am an education supporter. Signature: Email: Date:
Table of Contents E4E Teacher Evaluation Policy Team: NY State Contracts and Laws Current UFT/DOE contractual agreement around teacher evaluations ......Sectionl NY State Education Law 302 ............................................................................Section 1 (This law creates a new annual system of performance review in NY State) NY Times article on the new evaluation system..............................................Section 1 Research "Research Findings from the Tennessee Value-Added System," Sanders.......Section 2 "When Principles Rate Teachers," Education Next............................................Section 2 "Measuring Teacher and Leader Performance," Public Impact.........................Section 2 **Other studies mentioned were not included due to size, but are available** Model Systems Summary of Charter School Evaluation Systems, American Progress.............Section 3 The Impact Model, Washington DC......................................................................Section 3 Colorado State Senate Bill 191 and Denver Post Article .................................... Section 3 TAP teacher evaluation system...........................................................................Section 3 CLASS classroom assessment scoring system....................................................Section 3 **Other states and districts systems are available (Tennessee, New Haven, Chicago, Seattle, Baltimore, Delaware, Louisiana)** Recommendations and Overviews "Teacher Evaluation 2.0," The New Teacher Project........................................Section 4 "Fighting for Quality and Equality, Too," The Education Trust........................Section 4 "TQ Research and Policy Brief," NCCTQ..............................................................Section 4
Educators 4 Excellence Policy Team 011 Teacher Evaluation Agenda for Meeting 1: 1) Brief introductions 2) Teacher Evaluation Research - William Sanders a. Proven that teachers have wide variations in effectiveness b. No evidence that teacher qualifications are linked to teacher effectiveness 3) What was the system of evaluation prior to the recent NY State law? 4) What is the new NY State Law around teacher evaluations? 5) Value-Added Data - What is it? And should it be part of an evaluation system? 6) Our Charge 7) What Else could be included as part of an evaluation system? a. Classroom Observations i. Principal n. Peer Review 111. Independent Reviewer b. Lesson plans 8) Paired discussion of other topics and feedback 9) Group discussion on what we think are viable tools for evaluation 10) Long term plan for our policy team 11) Additional resources 12) Closing thoughts and comments
Educators 4 Excellence Policy Team 011 Teacher Evaluation Agenda for Meeting 2: 1) Agenda and goals 2) Overview from last week 3) Comments on or questions about the reading 4) Break into focus groups 5) Fill out SWOT analysis and comment sheet with your group 6) Share out 7) Debriefing - what did we learn by looking at specific systems 8) Plan for next week and beyond
Educators 4 Excellence Policy Team on Teacher Evaluation Agenda for Meeting 3: 1) Discuss the agenda (5 mm) 2) Notes From Last Week (10 mm) 3) Goals for this weeks meeting (5 mm) 4) TNTP presentation on the framework of evaluations (15 mm) 5) Separating evaluation elements into three categories (5 min intro) a. Should Be included - Necessary to fully measure a teachers effectiveness or value to students and school community b. Could Be included - Helpful in getting a complete picture of a teachers effectiveness or value to students and school community c. Should not be included - Does not impact teacher effectiveness or value to students or school community 6) Small group discussion based on these topics (15 mm) 7) Whole group discussion (15 mm) 8) Surprise announcement and plan for Dec. 161h (10 mm) 9) What do we need going forward (research, working groups)? (10 mm) 10) Additional resources for reading over the next two weeks? (5 minutes) 11) Proposed letter about Value-Added discussion? (20 minutes)
Educators 4 Excellence Policy Team on Teacher Evaluation Agenda for Meeting 4: 1) Discuss the agenda (5 mm) 2) Notes From Last Week (10 mm) 3) Goals for this weeks meeting (5 mm) 4) TNTP presentation on the framework of evaluations (15 mm) 5) Separating evaluation elements into three categories (5 min intro) a. Should Be included - Necessary to fully measure a teachers effectiveness or value to students and school community b. Could Be included - Helpful in getting a complete picture of a teachers effectiveness or value to students and school community c. Should not be included - Does not impact teacher effectiveness or value to students or school community 6) Small group discussion based on these topics (15 mm) 7) Whole group discussion (15 mm) 8) Surprise announcement and plan for Dec. 161h (10 mm) 9) What do we need going forward (research, working groups)? (10 mm) 10) Additional resources for reading over the next two weeks? (5 minutes) 11) Proposed letter about Value-Added discussion? (15 minutes)
"What's the Value in Value-Added? A Conversation About Student Test Scores in Teacher Evaluation" Join E4E for a panel discussion with some of the nation's leading experts about value-added data.
Featuring:
David Coleman - CEO, Founder of Student Achievement Partners and co-author of the Common Core Standards Dan Weisberg - Vice-President of Policy and General Counsel, The New Teacher Project Sandra Tacina - Director of Talent Analytics, The New York City Department of Education As you may have heard, several weeks ago top media outlets in New York, including the New York Times and the Wall Street Journal, requested the names and value-added data for New York City's teachers in testing grades via the Freedom of Information Law (FOIL). On November 24th, a judge will rule if this is legal and teachers may soon find their names and value-added data on the front page of the newspaper. As teachers, we have questions: What do these scores mean? How are they calculated? How reliable are they? How are they currently used in NY? Join us as a panel of experts answer these questions and more. When: Wednesday, November 17th (6:30-8:30PM) Where: NYC Seminar and Conference Center, 71 W. 23rd Street at 6th Avenue (accessible from F,V,A,C,E,N,R, 1,2,3 subways) RSVP Required: To RSVP go to this link: http://www.educators4excellence.org/events/vananel
Dear E4E Members and Supporters, BIG week in education! Make sure to check out our Network section for a special E4E event with Michelle Rhee but first, take a few minutes to read these very important developments in the ed world:
Learn: The New York Times reports that even though the "rubber rooms" are gone, many teachers are still waiting for their cases to be resolved and are spending time filing and paper clippin g. The LA Times details how "last in, first out" seniority-based layoff laws removed some of LA's brightest teaching stars and disproportionately hurt children from low-income communities. The Wall Street Journal covers the closing of 26 more New York City schools, including a charter school. As we wait to hear whether or not NYC teachers will have their value-added scores released publicly, WNYCrofiles five other states and how they have dealt with the release of teacher data. On the Oprah Show on Monda y , former DC Chancellor Michelle Rhee announced that she is launching a national education reform organization called Students First. In Newsweek, Rhee details how she intends to transform the nation's public education system. The New York Times p rofiles the implications Rhee's organization may have nationwide. In an o p-ed in the Wall Street Journal, outgoing NYC schools chancellor Joel Klein reflects on his progress and lessons learned during his eight-year tenure. The LA Times reports on the first-ever pulling of the "parent trigger", a law that says a school can be restructured when over 50% of parents vote in support. At McKinley Elementary, in Compton, CA, parents signed a petition to have a charter company take over their failing school. Network: Join E4E for a s pecial members-onl y event with Michelle Rhee! Next Wednesday, December 15th, from 6:30-8:00pm, please join us for a working session with Michelle Rhee, former D.C. Schools Chancellor and CEO of StudentsFirst. E4E's Teacher Evaluation and Layoff Policy Teams will be presenting to Michelle, and a conversation about education reform will follow. **There are a very limited number of spaces available to participate in this conversation, so RSVP by TOMORROW (12/9) evening to have your
name entered into a lottery. Those selected to attend will be notified by email with the event logistics and final information by the end of the week.** Please RSVP by clicking here.
Take Action:
Follow us on Facebook and Twitter! Share your voice by signing the Declaration of Teachers' Principles and Beliefs and becoming an official E4E member! All our best, Evan and Sydney E4E Co-Founders
Laws of New York
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706. Removal of directors. (a) Except as limited in paragraph (c), any or all of the directors may be removed for cause by vote of the members, or by vote of the directors provided there is a quorum of not less than a majority present at the meeting of directors at which such action is taken. (b) Except as limited in paragraph (c), if the certificate of incorporation or the by-laws so provide, any or all of the directors may be removed without cause by vote of the members. (c) The removal of directors, with or without cause, as provided in paragraphs (a) and (b) is subject to the following: (1) In the case of a corporation having cumulative voting, no director may be removed when the votes cast against his removal would be sufficient to elect him if voted cumulatively at an election at which the same total number of votes were cast and the entire board, or the entire class of directors of which he is a member, were then being elected; and (2) When by the provisions of the certificate of incorporation or the by-laws the members of any class or group, or the holders of bonds, voting as a class, are entitled to elect one or more directors, any director so elected may be removed only by the applicable vote of the members of that class or group, or the holders of such bonds, voting as a class. (d) An action to procure a judgment removing a director for cause may be brought by the attorney-general or by ten percent of the members whether or not entitled to vote. The court may bar from re-election any director so removed for a period fixed by the court.
http ://public.leginfo . state.ny.us/LA WS SEAF.cgi?QUERYTYPE=LAWS+&QUERYDAT... 5/17/2011
Agenda Educators 4 Excellence Panel: What's the Value in Value-Added? 1) WhatisE4E? 2) Why Value-Added? Why Now? 3) Tonight's Objectives 4) Conversation Norms 5) Introduction to Panelists 6) Presentations 7) Q&A with Panelists 8) Next Steps
Capiin &Drysdaia, Chartered
A 11000 E 1
One Thomas Circle, NW, Suite 1100 Washington, DC 20005 202-862-5000 202-429-3301 Fax www.caphndrysdale.com
202.862,7839 Direct snokes@capdaie.com
February 2, 2011
Via Facsimile (513.263.4590) and Federal Express Angie Bender Exempt Organizations Specialist Internal Revenue Service Room 4511, Group 7828 550 Main Street, Federal Building Cincinnati, OH 45202 Dear Ms. Bender: RE: Educators for Excellence, Inc. (EIN#27-3382030): Request for Additional Information in Consideration of Application for Exemption Dear Ms. Bender: Thank you for taking time to speak with me on January 19, 2010 regarding the Application for Recognition of Exemption (IRS Form 1023) that was filed by Educators for Excellence, Inc., on September 20, 2010. On behalf of the organization, we are writing to respond to your January 6, 2010 letter requesting additional information to assist your processing of its exemption application.' To ensure that our responses are as helpful as possible, Part 1 of this letter clarifies the organization's prior submissions and provides some additional background information regarding Educators for Excellence. Part 11 of this letter restates and responds to each of your questions. L Background. A. The Crisis Facing U.S. Public Education.
Our nation's leaders have long recognized that a robust public education system is an essential element of our society. Indeed, nearly fifty years ago, President Johnson explained to Congress that, in order for our nation's democracy to flourish,
A copy of your January 6, 2010 letter is enclosed as Exhibit A to this submission.
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[e]very child must be encouraged to get as much education as he has the ability to take. We want this not only for his sakebut for the future of our nation's sake. Nothing matters more to the future of our country: not our military preparednessfor armed might is worthless if we lack the brainpower to build world peace; not our productive economyfor we cannot sustain growth without trained manpower; not our democratic system of governmentfor freedom is fragile if citizens are ignorant .2 Consistent with this sentiment, the federal government has launched six legislative initiatives over the past half-century, 3 and dedicated tens of billions of dollars, to strengthen public education in the United States. Each initiative was intended to preserve the academic competitiveness of American children and, by implication, our national security and economic well-being. Each initiative was established to resolve identified problems in U.S. public education and to reform the operation of U.S. schools. And each initiative mentioned the need for more time in school, a greater emphasis on math and science, and more effective curricula and teacher education. Notwithstanding this multi-billion dollar investment in the future, statistics show that our nation's K-12 public education programs continue to lag behind other nations and fail to meet the needs of a significant number of students. Consider the following: More than 1.2 million students drop out of school every year. The high school graduation rate is only 69.2% nationally and is much lower for Hispanic (55.0%) and African-American (51.2%) students .4
2 President Lyndon B. Johnson, Special Message to Congress: "Toward Full Educational Opportunity" (Jan. 12, 1965), 3 These initiatives are: (1) President Johnson's Elementary and Secondary Education Bill , signed April 11, 1965; (2) President Carter's Department of Education Organization Act, raising education to the president's cabinet level, signed October 17, 1979; (3) The National Commission on Excellence in Education's landmark Nation at Risk report, highlighting the crisis in U.S. education, issued in 1983 while President Reagan was in office; (4) President Clinton's Goals 2000: Educate America Act, signed March 31, 1994; (5) President G.W. Bush's No Child Left Behind Act, signed in 2001; and (6) President Obama and U.S. Secretary of Education Duncan's $4.3 5 billion in Race to the Top competitive grants to support education reform and innovation in classrooms, launched July 24, 2009. 4 Editorial Projects in Education Research Center, Diplomas Count 2009: Broader Horizons: The Challenge of College Readiness for All Students (June 2009).
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Angie Bender Internal Revenue Service February 2, 2011 Page The high dropout rate is costly and destructivenot only for the affected students and their children, but also for our nation. The unemployment rate among high school dropouts over the age of 25 is nearly twice that of high school graduates and more than three times that of college graduates. 5 The poverty rate for families headed by dropouts is more than twice that of farnilies headed by high school graduates. 6 The health of an 18-year old hih school dropout is similar to that of more educatedperson over two decades older. And a dropout is more than eight times as likely to be imprisoned as a high school graduate, and nearly 20 times more likely than a college graduate.8 While the future is brighter for students who stay in school, these students lag their peers in other developed nations. Recently-released data by the Organization for Economic Cooperation and Development ("OECD") rank American students 25th in math and 17th in science compared to students in 34 industrialized countries. "On an absolute basis, students from 24 of 34 OECD countries had higher scores than U.S. students, and the Education Department said 17 were better on a statistically significant basis."9 These problems are magnified in poorer, urban public school systems, which tend to have higher concentrations of minority students. For example, according to the National Center for Education Statistics, fourth-graders in urban schools scored 10 points lower on standardized reading tests, and 8 points lower on standardized math tests, versus the general student population. 10 Studies point to a number of causes for these problems, including: (a) lack of innovative education models to keep students engaged and imprOve their performance; (b) lack of critical data to track student achievement and teacher effectiveness; (c) lack of parental engagement; and
5 National Center for Education Statistics, 2006. 6 Sandy Baum & Kathleen Payea, Education Pays 2004: The Benefits of Higher Educationfor Individuals and Society 16, The College Board (Rev. Ed. 2005). Peter Muennig, Health Returns to Education Interventions, N.Y. Federal Reserve Board (2007). 8 Carolyn Wolf Harlow, Ph.D., Education and Correctional Populations, U.S. Dep't of Justice, Bureau of Justice Statistics (2003). John Hechinger, U.S. Teens Lag as China Soars on International Test, Bloomberg (Dec. 7, 2010). 'National Center for Education Statistics, The Nation's Report Card: Reading 2009 Trial Urban DistrictAssessment, Results at Grades4 and 8(2010). The Nation's Report Card: Mathematics 2009 Trial Urban District Assessment, Results at Grades 4 and 8 (2010).
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Angie Bender Internal Revenue Service February 2, 2011 Page 4 (d) lack of accountability for academic outcomes at the state and district level." Recognizing however, that a 1-ih-qua1ity teacher is the most important factor influencing a student's academic success, 2 scholars and policymakers agree that recruiting, training and, above all, retaining high-quality teachers and principals is critical to resolving our public education crisis.
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The goal of attracting and retaining excellent teachers, while simple on its face, remains somewhat elusive. Most public school districts reward teachers simply for "sticking around," rather than for classroom accomplishments. Thus, seniority, rather than student achievement, is the sole factor that determines the order of teacher layoffs in 70% of our nation's largest school districts. 14 Because teacher compensation is generally lock-step, rather than merit-based, seniority, rather than effectiveness, is generally the sole factor that determines a teacher's salary. Continuing professional education and support programs for educators are rare. And most school districts do not give meaningful weight to academic achievement in teacher evaluation and tenure decisions. This, in turn, leads to attrition among skilled and motivated educators, while exacerbating the retention of ineffective teachersparticularly in poor and urban school systems. "Research has shown that low-income students and students of color are more likely than their higher
11 E.g., United States Chamber of Commerce & The Center for American Progress, Leaders and Laggards: A State-by-State Report Card on Educational Innovation (2009), A Joint Plaformfor Educational Reform (2007).
Dan Goldhaber, A Worm in the Apple? The Implications ofSeniority-Based Teacher Layoffs, National Research Institute Working Paper 2011-01 (Jan. 13, 2011), at 1 & note ii (collecting authorities); The Teaching Commission, Teaching At Risk: A Gall to Action 12 (2004); Jessica Levin & Meredith Quinn, Missed Opportunities: How We Keep High-Quality Teachers Out of Urban Classrooms 4 (The New Teacher Project, 2001) (citing Linda Darling-Hammond, "Teacher Quality and Student Achievement: A Review of State Policy Evidence," Education Policy Analysis Archives, 8 (1) (2000); Kati Haycock, "Good Teaching Matters. . . A Lot," Thinking K-16, 3 (2), (The Education Trust, 1998), 1-5). 13 E.g., United States Chamber of Commerce & The Center for American Progress, Leaders and
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Laggards: A State-by-State Report Card on Educational Innovation (2009), A Joint Flaformfor Educational Reform (2007); National Partnership for Teaching in At-Risk Schools, Qualified Teachers for At-Risk Schools: A National Imperative (2005); The Teaching Commission, Teaching At Risk: A Call to Action (2004).
Dan Goldhaber, A Worm in the Apple? The Implications ofSeniority-Based Teacher Layoffs, National Research Institute Working Paper 2011-01 (Jan. 13, 2011), at 2 & note iv (citing statistics compiled by the National Counsel on Teacher Quality).
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Angie Bender Internal Revenue Service February 2, 2011 Page 5 income and white counterparts to be taught by an ineffective teaeher." 5 Core academic classes in high-poverty secondary schools are almost twice as likely as classes in low-poverty schools to be taught by teachers with neither a major nor certification in their assigned subject (14 percent compared to 27 percent). 16 Indeed, [t]he disparity between the caliber of teacher found in a high-poverty or highminority school and that of a teacher found in a low-poverty or low-minority school has a massive impact on student achievement. "If the effects were to accumulate, having a top-quartile teacher rather than a bottom- quartile teacher four years in a row would be enough to close the black-white test score gap."7 Educators for Excellence ("Educators") was formed to transform public education, particularly in New York City, by (i) providing its members (current and former education professionals) and the public with critical information about effective approaches to education, and (ii) creating an active and informed group of citizens who will engage in education policy debates. To that end, Educators will present research, analysis and educational materials intended to inform the public and enrich the country's discourse on education policy issues. In so doing, Educators hopes to advance the debate over one of our country's most pressing issueseducation reformto ensure that all students receive an excellent education. B. Educators' Purposes and Proposed Activities.
As stated in Article JY of the Educators' Certificate of Incorporation, which was enclosed with the organization's Form 1023, Educators was formed for charitable and educational
Education Trust, Facts on Teacher Equity, available at http://www,edtrust.org/sites/edtrust.org/files/Ed%2oTrust%2oFacts%2Oon%2oTeacher%2OEquity_O.pdf see also Sarah Ahny & Christina Theokas, Not Preparedfor Class: High-Poverty Schools Continue to Have Fewer In-Field Teachers (Education Trust, Nov. 2010). ' 6 1d. (citing Analysis of 2003-2004 Schools and Staffing Survey Data by Richard Ingersoll, University of Pennsylvania (2007)). ' 7 1d. (quoting Douglas Staiger et al., Identifying Effective Teachers Using Performance on the Job 8 (The Brookings Institute 2006), and citing Heather Jordan et al., The Effects of Teachers on Longitudinal Student Achievement (2007) and William L. Saunders and June C. Rivers, Cumulative and Residual Effects of Teachers on Students Academic Achievement (University of Tennessee Value-Added Research and Assessment Center 1996).
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Angie Bender Internal Revenue Service February 2, 2011 Page 6 purposes within the meaning of section 501(c)(3).' 8 Specifically, the organization aims to build an active community of educators and citizens who are committed to a thoughtful and thoughtprovoking debate on education policies that are focused on increasing student achievement. Recognizing the direct correlation between quality of instruction and student success, Educators will promote the idea that training, supporting, and retaining high-quality educators is essential to improving the quality of public education. Through its website, educational conferences, training programs, research, analysis, and fact-based reports and issues briefs, Educators hopes to spark a national debate on these issues, which it believes are critical to improving the quality of instruction and, by implication, our public education system. Educators will pursue, and has already begun to pursue, its mission through the following activities: Research. Educators will collect, summarize, and organize research regarding various issues related to education policy, including the advantages and disadvantages of various proposals for education reform. These materials will be made available to members and the public on Educators' website, free-of-charge and, ultimately, will be used by Educators to put forth its own policy reform goals. Website. Educators' website, http:/fwww.educators4exoellence.org , will serve as the primary communications forum for the organization. While it will link to, and present information about, a wide variety of education reform proposals, the website will primarily focus on issues that Educators believes are fundamental to improving the quality of teachers and principals serving public school students nationwide. These issues presently include, but are not limited to (1) developing and implementing national education standards designed to ensure that U.S. students are competitive with their counterparts in other developed nations, and well-prepared for college and careers; (2) developing and implementing teacher evaluation systems that incorporate value-added student achievement data as one measure of effectiveness; (3) tenure reform; and (4) the impact on students of a "last-in-first-out" approach to teacher layoffs. In each of these areas Educators will present objective and balanced information analyzed from the perspective of what is best for students.
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All section references are to the Internal Revenue Code of 1986, as amended (the "Code" or "IRC"), and all regulatory references are to the Treasury Regulations currently in effect under the Code (the "Regulations" or "Treas. Reg.").
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CDflhfQEO Angie Bender Internal Revenue Service February 2, 2011 Page Training Programs. Educators plans to develop educational materials and instructional programs for teachers that are designed to improve the quality of instruction and empower them to become leaders in their schools. All educators will be able to participate in these programs, which will be offered free-of-charge, regardless of whether they are members of the orgariization. Conferences and Symposia. Educators will host conferences, panel discussions, and online discussion groups to explore issues related to education policy. For example, the organization recently hosted a panel discussion addressing the pros and cons of making publicly-available value-added assessment data of New York City teachers. These free events may be open to the public, or by invitation to members. The purpose of these events will be to educate the public, or foster open dialogue and discussion on education policy issues, and to raise the profile of Educators. Press Outreach. To promote Educators' ideas and inform the public regarding education policy issues generally, Educators will reach out tot the media in a variety of ways, including meeting with newspaper editorial boards, conducting press conferences, issuing press releases, appearing on television and radio programs, and being interviewed by reporters. The particular policy positions that Educators will advance through the means listed above will be the result of careful research and analysis, coupled with collaboration and discussion with a variety of other nonprofit groups and individuals who share the organization's commitment to reforming public education. From time to time, Educators may comment on proposed or potential legislation. Education reform legislation has been the focus of much media and government attention recently, and it is likely to remain at the forefront of legislative activity for years to come. Educators may publicize its views on specific legislative proposals, but for the most part its comments will not contain any calls for action. To the extent Educators does attempt to influence legislation, it will be within the scope of permissible legislative activities under Section 501 (c)(3) of the IRC. Educators is enclosing Form 5768 with this submission19 and hence will measure its expenditures on legislative activities and keep them within the limits permissible under section 501(h). Educators will generally leave such activities to its sister 501(c)(4) organization, Educators for Excellence Advocacy, which will be established to engage in lobbying activity that would not be permissible for Educators itself.
19
See Exhibit B.
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Angie Bender Internal Revenue Service February 2, 2011 Page 8 Although Educators may argue for particular positions, it will always employ a genuinely educational methodology based on factual analysis of social, political, and economic issues. All of the materials produced or disseminated by Educators will present truthful, accurate, and reliable information. Further, Educators will be strictly nonpartisan, not intervening in any elections on behalf of, or in opposition to, any candidate for public office. C. Funding and Fundraising.
Educators will be supported through contributions from individuals (including members), corporations, and private foundations and expects to qualify as publicly-supported within the meaning of section 170(b)(1)(A)(vi) of the Code. H. Specific Responses.
In response to the specific questions presented in your November 20, 2009 request for additional information, Educators' responses are as follows: 1. Read the Penalties of Perjury Statement on Page 1. Then, have an officer or director of the organization sign and date below, indicating thatyou agree to the Declaration. Return this page with your response.
A declaration under penalty, signed by Educators' Co-President, Evan Stone, is enclosed as Exhibit C to this submission. 2. You appliedfor exemption under section 501 (c) (3) of the code. Internal Revenue Code (IRC) section 501 (c)(3) organizations are organized and operated exclusivelyfor one or more of thefollowing purposes: Charitable, Religious, Educational, Scientific, or Literary. Contributions to domestic organizations exempt under section 501 (c)(3) are deductible as charitable contributions on the donor'sfederal income tax return. IRCsection 501 (c)(6) organizations are organized and operated as an association of persons (including legal entities) having a common business interest which promotes a common business interest but is not engaged in a regular business of kind ordinarily carried onfor profit. The organization's activities are directed to the improvement of business conditions of one or more lines of business and not to perform particular servicesfor individualpersons. Your activities consist developing an educational policy, networking, social network groups and the exhibits you provide states that you are trying to improve the business conditionsfor teachers, reviewing New York State Contracts and Law and ensuring that the policies arefollowed.
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Angie Bender Internal Revenue Service February 2, 2011 Page 9

You are similar to the organization described in Revenue Ruling 70-641 which states a nonprofit organization whose membership consists of individuals engaged in various professions organized to promote a common business interest and to improve professional services and techniques of the members in tlzefield ofpublic health and welfare, qualj/iesfor exemption. 1.501(c) (6)-1.
Therefore, we believe you are more clearly described under section S01(c) (6) of the Code. Please refer to Publication 557for a discussion of these types of organizations. Ifyou agree, please complete the enclosed Form 1024 and Schedule C. We respectfully disagree with your assertion that Educators is described in section 501(c)(6). As the information in Part 1 of Us submission reveals, the organization was organized and will be operated exclusively for charitable and educational purposes. Accordingly, it should be recognized as exempt from federal income tax under section 501(c)(3). As you note observe in your January 6, 2011 letter, an organization must meet both the organizational and operational tests as set forth in Treas. Reg. 1.501 (c)(3)-1 in order to qualify for exemption from federal income tax under section 501 (c)(3). As explained below, Educators satisfies the requirements of both tests. A. Educators' objectives and proposed activities qualify it for exemption as a charitable and educational organization described in section 501(c)(3).
Educators was organized and will be operated exclusively for charitable and educational purposes and should therefore be recognized as exempt from federal income tax under section 501(c)(3). To qualify for exemption, an organization must meet both the organizational and operational tests as set forth in Treasury Regulation section 1.501(c)(3)-l. As explained below, the Charity satisfies the requirements of both tests. 1. Educators satisfies the organizational test for exemption under section 501(c)(3)
Educators meets the organizational test of the statute because its Articles of Incorporation provide that it is organized exclusively for charitable and educational purposes within the meaning of section 501 (c)(3) of the Internal Revenue Code, specifically to develop policy alternatives in education that are focused on increasing student achievement. 20 Educators is not organized for any purpose, nor will it carry on any activities not permitted by a corporation not
20
See Certificate of Incorporation, Art. 1V.
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Angie Bender Internal Revenue Service February 2, 2011 Page 10 exempt from federal income tax under section 501(c)(3). 21 In the event the organization is dissolved, and after all liabilities and obligations been paid, all remaining property and assets are required to be distributed to one or more organizations described in section 501 (c)(3).22 Therefore, Educators is organized exclusively for charitable purposes within the meaning of section 1.501(c)(3)-l(b) of the Regulations. 2. Educators satisfies the operational test for exemption under section
501(c(3.
Educators' activities are clearly charitable and educational within the meaning of the operational test of the Regulations. The Regulations apply the generally accepted legal 23 definition of the term "charitable," which includes the advancement of education. The term "educational" is defined in the Regulations to include "(a) [t]he instruction or training of the individual for the purpose of improving or developing his capabilities; or (b) [t]he instruction of the public on subjects useful to the individual and beneficial to the community." 24 Educators' activities fits squarely within both prongs of this definition. As a threshold matter, the Service has long recognized that organizations that instruct or train individuals to improve their business or professional capabilities, are "educational" and thus exempt under section 501(c)(3). 25 The instruction or training of individuals can involve the development of any number of skills, including specific vocational skills and general job skills, through on the job training or through lectures and seminars.26 Educators' programs to educate and train education professionals fit squarely within these authorities. The Service also has granted exemption to organizations that promote public understanding of matters of broad public interest, on the basis that the activities of such organizations are educational. For example, in Revenue Ruling 67342,27 the Service ruled that
21 1d Arts. IV-V. 22 1d. Art. VI.
23 24
21
Treas. Reg. 1.501(c)(3)-1(d)(2). Treas. Reg. 1.501(c)(3)-1(d)(3).
See Rev. Rul, 74-16, 1974-1 C.B. 126 (managing credit unions training for individuals in developing nations); Rev. Rul. 68-504,1968-2 C.B. 211 (banking for bank employees); Rev. Rul. 65-298, 1965-2 C.B. 163 (practice of medicine for physicians).
26
See, e.g., Rev. Rul. 76-37,1976-1 C.B. 148; Rev. Rul. 75-284,1975-2 C.B. 202. 1967-2 C.B. 187
27
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Angie Bender Internal Revenue Service February 2, 2011 Page 11 an organization that educated the public on the need for international cooperation in order to create and maintain a peaceful world qualified for exemption under section 501(c)(3). The Service also granted exemption under section 501 (c)(3) to an organization engaged in the study, research and assembly of materials on prospective court reform legislation and the dissemination of those materials to the public. 28 Similarly, the Service ruled that an organization conducting public forums, lectures and debates on controversial social, political and international matters qualified for exemption under section 501 (c)(3) . 29 In another ruling, the Service determined that an organization "studying and recommending regional policies" to solve local water and air 30 pollution, transportation, water resources, and waste disposal problems qualified for exemption. Just as studying and recommending policies to solve problems of international diplomacy, court reform, pollution, and other controversial issues are educational, so too are studying and recommending policies to solve the crisis in public education, and hosting symposia and panel discussions to explore these issues, educational activities under section 501 (c)(3). In the course of providing information and facilitating public discussion on education policy matters, Educators will advocate specific policy perspectives and positions. This is perfectly consistent with its status as a tax-exempt charitable organization. Section 1 .501(c)(3)1 (d)(3)(i) of the Regulations explicitly provides that an organization may carry out its primary purpose by advocating social or civic change or presentig opinions on controversial issues with the intention of molding public opinion or creating public sentiment to an acceptance of its view, without being precluded from qualifying under section 501(c)(3). The organization must simply present sufficient exposition of the facts pertinent to its views so that members of the public may form an independent opinion or conclusion. 3 ' Thus, for example, in Revenue Ruling 76-456, the Service ruled that an organization formed to elevate the standards of ethics and morality in the conduct of political campaigns through disseminating information concerning campaign practices, furnishing training aids to educators and publishing a code of fair camain practices qualifies for exemption as an educational organization under section 501 (c)(3). This organization also "proposed a code of fair campaign practices" and "extensively publicized" the need for the code. Similarly, in Revenue Ruling 78-305, the Service ruled that an organization formed to educate the public about homosexuality and foster tolerance qualifies for exemption,
28 29 30 31 32
Rev. Rul. 64-195, 1964-2 C.B. 138. Rev. Rul. 66-256,1966-2 C.B. 210, amplified by Rev. Rul. 86-95,1986-2 CB 73. Rev. Rul. 70-79, 1970-1 C.B. 127, Treas. Reg. 1.501(c)(3)4(d)(3)(i) Rev. Rul. 76-456, 1976-2 C.B. 151.
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Angie Bender Internal Revenue Service February 2, 2011 Page 12 emphasizing that "an organization may be educational even though it advocates a .particular position or viewpoint."3 Educators' programs to inform the public regarding the importance of implementing national education standards and teacher evaluation systems, as well as reforming the criteria for tenure and layoffs, are entirely consistent with these rulings. Further, much of the organization's website is designed to providing key background information regarding education reform proposals, and advancing a vision of reform grounded in the belief that the key to improving public education lies in improving the quality and accountability of educators. Educators' website will include links to policy papers, summaries of relevant news items, links to educational material developed by Educators and other organizations. Finally, Educators' policies and principles are grounded in extensive research and facts, leaving its readership free to accept or reject its conclusions. Thus, Educators' plan to present information- and foster discussion about an issue of broad public concerneducation reformare educational and charitable within the meaning of section 501(c)(3). B. Educators is Not Described in Section 501(c)(6).
Section 501(c)(6) of the Code exempts from federal income tax business leagues, chambers of commerce, and similar organizations. Section 1.501 (c)(6)- 1 of the Regulations clarifies that a business league is "an association of persons having some common business interest, the purpose of which is to promote such common interest and not to engage in a regular business of a kind ordinarily carried on for profit." While Educators' membership may resemble a trade association, the organization's purposes, sources of funding, and activities are consistent with exempt status under section 501(c)(3), not section 501(c)(6). The Service recognizes that "many section 501(c)(6) organizations engage in significant educational and community improvement activities. . [that] actually further 501 (c)(3) purposes," and the agency has admitted having "difficulty [at times] in classifying some organizations under IRC 501(c)(3) or IRC 501(o)(6). However, it has consistently ruled that "[a] professional society may. . . qualify for exemption under IRC 501(c)(3) if its purpose is to
See Rev. Rul. 78-305, 1978-2 C.B. 1972. See also Rev. Rul. 66-256, 1966-2 C.B. 210 (ruling that an organization sponsoring lectures and debates on controversial social, political, and international matters qualifies for exemption under section 501(c)(3)). 34 Recent Issues Under IRC 50(c)(6), 1979 IRS Exempt Organizations Continuing Professional Education Text at 16.
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Angie Bender Internal Revenue Service February 2, 2011 Page 13 advance the profession by engaging in exclusively educational or scientific aetivities. 05 Three Revenue Rulings are particularly helpful to this analysis. First, in Revenue Ruling 71-504, the Service ruled that a city medical society, exempt under section 501(c)(6) as a business league, the activities of which were directed to the promotion of the common business purposes of its members could not be reclassified as an educational or charitable organization under section 501 (c)(3) . 36 In that ease, the Service considered a list of ten activities in which the organization participated, and determined that five of these activities were charitable or educational, namely: Holding monthly meetings for its members, all of whom were medical professionals, to discuss technical papers demonstrating clinical care and new medical procedures; Maintaining a library of medical books and periodicals for members; Providing lectures and counseling services to students at local medical schools; Supporting local public health programs; and Publishing a monthly joumal containing educational material, notices, and other matters of interest to individual doctors. However, the Service concluded that the organization's other five activities(1) providing a patient referral service for members; (2) maintaining a grievance committee to settle disputes between members; (3) establishing a legislative committee to communicate with state and local government officials on issues germane to its members' interests; (4) holding meetings concerned with matters affecting the promotion and protection of the practice of medicine; and (5) conducting a public relations program to enhance the image of the medical professionwere directed primarily at the promotion of the medical profession and thus furthered the common business purpose of members, rather than charitable and educational purposes. Thus, the Service ruled that the medical association was described in section 501 (c)(6) and did not qualify for exemption under section 501 (c)(3). Similarly, in Revenue Ruling 71505, the Service ruled that a city bar association, exempt under section 501(c)(6), which primarily directed its activities to the promotion and protection of
Internal Revenue Manual 7.25.6.11.1. 36 Rev. Rul. 71-504, 1971-2 C.B. 231.
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Angie Bender Internal Revenue Service February 2, 2011 Page 14 the practice of law, could not be reclassified as an educational or charitable organization under section 501(c)(3) In that case, the Service considered a list of sixteen activities conducted by the organization. While nine of the activities furthered charitable and educational purposes, the Service found that seven of themincluding establishing and enforcing standards of conduct for members; preparing minimum fee schedules and papers on the economics of running an efficient law office; advocating for increased pay for lawyers in the armed forces; and sponsoring parties, golf tournaments, membership dinners, opera nights, group overseas travel plans and other social events for its memberswere primarily directed at the promotion and protection of the practice of law and thus furthered the common business purpose of its members. Accordingly, this organization, like the medical society in Revenue Ruling 71-504, failed to qualify for exemption under section 501(c)(3). Finally, in Revenue Ruling 7 1-506, the Service ruled that an professional society comprised of experienced heating and air conditioning professionals, which was formed to advance the arts and sciences of heating, ventilating, and air conditioning for the benefit of the general public, qualified for exemption under section 501(c)(3). 38 To accomplish this purpose, the organization conducted research and maintained a library of information relevant to its field, and made both available to the public free-of-charge. The results of this research and research by its members was presented at regular meetings and periodicals. In the ruling, the Service noted that the society had no financial interest in the scientific information it developed, and that all such information would be made freely available to the public. In distinguishing the facts of two foregoing rulings, the Service noted that the society would not engage in any public relations activities, prepare a code of ethics or police the profession in any way, or seek to improve the condition of its members. Moreover, the society had no purposes or activities primarily aimed at developing good will or fellowship among its members, or fostering a mutuality of interests. It had no social or recreational activities, and no facilities (e.g., a restaurant, lounge, or club house) for members. Finally, it did not engage in substantial lobbying. All of the favorable facts in Revenue Ruling 71-506and none of the unfavorable facts from the other two rulingsare present in this case. Educators was formed to achieve the charitable and educational purposes discussed above, not to promote the business interests of any industry. The organization's activities will not "be directed to the improvement of business conditions of one or more lines of business." Rather, its activities will be directed toward the improvement of public education generally, by educating the public and training education professionals, without charge. At all times, the ultimate beneficiaries of Educators' work will "Rev. Rul. 7 1-505, 1971-2 C.B. 232.
31 Rev. Rul. 71-506, 1971-2 C.B. 232.
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Angie Bender Internal Revenue Service February 2, 2011 Page 15 not be businesses or members of any single profession, but rather public school students including, in particular, low-income students. Like the engineering society in Revenue Ruling 71-506, and in contrast to the organizations described in the other two rulings, Educators will engage exclusively in charitable and educational activities. Furtherand in contrast to Revenue Rulings 71-504, 71-505, and 70-641 (cited in your letter), Educators expects to receive significant support from private foundations, companies, and members of the public. Accordingly, the organization qualifies for exemption under section 501(c)(3), not section 501(c)(6). * * * * * Thank you for your continued attention to Educators' Form 1023. We hope that this letter responds to your requests in a thorough and complete manner. 1', however, you have any additional questions, please do not hesitate to contact Doug Varley, at (202) 862-7818, or me at (202) 862-7839. Sincerely,
ISC-0-
L/11 - V\JC71&-C---
Sharon W. Nokes
Enclosures cc: Evan Stone Sydney Morris
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Fom1O23

(Rev. June 2006)

OMB No. 1545-0056

12 c/o Name (if applicabIe

Form 1023 (Rev. 6-2006)

Compensation amount (annual actual or estimated)

Form 1023 (Rev. 6-2006)

Form 1023 (Rev. 6-2006)

Name: Educators for Excellence, Inc.

EIN: 27- 3382030

Form 1023 (Rev. 6-2006)

Form 1023 (Rev. 6-2006)

Name: Educators for Excellence, Inc.

Form 1023 (Rev. 6-2006)

0 Yes 0 Yes 0 Yes

E21 No 121 No 121 No

1023 (Rev. 6-2006)

Form 1023 (Rev. 6-2006)

Form 1023 (Rev. 6-2006)

023 (Rev. 6-2006)

Form 1023 (Rev. 6-2006)

for Excellence, Inc.

0 198,900 201,900 0 37,500 0 18,000

0 208,845 231,955 0 41,250 0 20.000

0 218,290 266,710 0 43,375 0 22.000

Form 1023 (Rev. 6-2008)

for Excellence, Inc.

B. Balance Sheet (for your most recently completed tax year)

1023 (Rev. 6-2006)

Form 1023 (Rev. 6-2006)

for Excellence, Inc.

ient6of Tax Under Sectidn.4940 of,the Intel

------------------------------------------------- ---- ------------------------------------------ --------------(Date) (Type or print name of signer)

For IRS Use Only

IRS Director, Exempt Organizations

Form 1023 (Rev. 6-2006)

for Excellence, Inc.

Co (Type or print title or authority of signer) Form 1023 (Rev. 6.2006)

Department of the Treasury

DIRECT DIAL: FACSIMILE:

ELI GREENBERG (212) 545 -4790

(212) 686-0114 g reenbercwhath.com

Educators for Excellence, Inc. EIN: 27-3382030

Department of the Treasury

Letter 1312 (Rev. 12/2007)

For IRS Use Only

525 E. 11th Street

New York, NY 10009

Declaration Under Penalties of Perjury

By: Name: Ivcwt +04C

Department of the Treasury

Officer Name & Title

A Declaration of Teachers' Principles and Beliefs

Laws of New York

http ://public.leginfo . state.ny.us/LA WS SEAF.cgi?QUERYTYPE=LAWS+&QUERYDAT... 5/17/2011

Capiin &Drysdaia, Chartered

202.862,7839 Direct snokes@capdaie.com

A copy of your January 6, 2010 letter is enclosed as Exhibit A to this submission.

Angie Bender Internal Revenue Service February 2, 2011 Page 2

Angie Bender Internal Revenue Service February 2, 2011 Page 9

See Certificate of Incorporation, Art. 1V.

Treas. Reg. 1.501(c)(3)-1(d)(2). Treas. Reg. 1.501(c)(3)-1(d)(3).

Enclosures cc: Evan Stone Sydney Morris