Educational Testing Service (ETS): The Global Leader in Educational Assessment

The Educational Testing Service (ETS) is the world's largest private organization dedicated to educational testing and assessment. Founded in 1947, this 501(c)(3) non-profit organization plays a pivotal role in shaping academic pathways for millions of students globally, providing the tools necessary for entry into tertiary (undergraduate) and quaternary (graduate) education.

From its headquarters in New Jersey, ETS develops and administers a vast array of standardized tests—assessments designed to ensure consistent and fair measurement of knowledge and skills across diverse populations. Today, the organization operates in more than 180 countries, administering approximately 50 million exams annually at over 9,000 locations worldwide.

Key Facts

• Founded: 1947 by ACE, The Carnegie Foundation, and The College Board.
• Status: 501(c)(3) non-profit organization.
• Global Reach: Operates in 180+ countries with 9,000+ testing locations.
• Annual Volume: Administers roughly 50 million exams per year.
• Major Products: TOEFL, GRE, TOEIC, and the Praxis Series.
• Recent Expansion: Acquired ACT, Inc. on June 30, 2026.

History and Evolution

ETS was established to centralize the testing activities of three founding non-profit institutions: the American Council on Education (ACE), The Carnegie Foundation for the Advancement of Teaching, and The College Entrance Examination Board. These organizations sought a specialized entity capable of managing operational assessment programs and conducting research to advance educational measurement.

At its inception, ACE contributed the National Teachers Examination and the Cooperative Test Service, while the Carnegie Foundation provided the GRE. The College Board entrusted ETS with the operation—though not the ownership—of the SAT for high school graduates.

In recent years, the organization has faced operational challenges. Between 2019 and 2024, ETS underwent five rounds of layoffs, including a June 2024 initiative that offered voluntary buyouts to U.S. employees with over two years of service. Despite these shifts, ETS continues to expand its portfolio, most notably through the acquisition of ACT, Inc. in 2026.

Scientific Contributions and Research

Beyond test administration, ETS is a powerhouse of psychometrics—the science of educational and psychological measurement. Its staff members have held leadership roles in the National Council on Measurement in Education (NCME) and the Psychometric Society, and have served as editors for prestigious journals such as the Journal of Educational Measurement.

The organization's research has led to significant breakthroughs in data analysis, specifically in:

• Developing methods for analyzing data when information is missing.
• Creating approaches for causal modeling derived from observational data.

Many ETS researchers have been recognized with elite honors, including membership in the National Academy of Education and various Distinguished Scientific Contribution Awards from the American Psychological Association (APA).

Global Operations and Services

ETS maintains a massive 376-acre campus in Lawrence Township, New Jersey, with additional specialized facilities in Ewing for security and shipping. To support its global mission, it operates several for-profit subsidiaries, including ETS Canada and ETS Global B.V., with offices in cities such as London, Seoul, Paris, Beijing, and Delhi.

In the United States, ETS is contracted by the National Center for Education Statistics to conduct the National Assessment of Educational Progress (NAEP), commonly known as the "Nation's Report Card." This is the only continuing, nationally representative assessment of U.S. student achievement.

The organization also develops K–12 statewide assessments used for accountability testing in states including Texas, California, Tennessee, and Virginia.

Challenges and Criticisms

Despite its scale, ETS has faced significant scrutiny. In 2008, its subsidiary ETS Europe was contracted to process National Curriculum assessments in England and Wales. The project was plagued by administrative failures, including lost papers and marking errors, leading to the contract's termination and a repayment of £19.5 million to the government.

Additionally, in 2014, the BBC reported that the UK Home Office suspended ETS English language tests after an investigation uncovered systematic fraud within the student visa system, where some candidates had their tests faked.

Summary of Major ETS Assessments

Major Standardized Tests Administered by ETS

Test Name	Primary Purpose	Target Audience
TOEFL	English proficiency for non-native speakers	International Students
GRE	Graduate school admissions	Prospective Graduate Students
Praxis	Teacher certification and licensing	Educators
TOEIC	English for international communication	Working Professionals
NAEP	National educational progress tracking	U.S. K-12 Students
CLEP	College credit by examination	College Students

Frequently Asked Questions

Is ETS a for-profit company?

No, ETS is registered as a 501(c)(3) non-profit organization. However, it does own several wholly owned for-profit subsidiaries to manage its international operations.

What is the difference between TOEFL and TOEIC?

TOEFL (Test of English as a Foreign Language) is primarily designed for students seeking admission to academic institutions, while TOEIC (Test of English for International Communication) focuses on English proficiency in the global workplace.

Does ETS own the SAT?

No. While ETS manages the operation of the SAT, the ownership of the test remains with The College Board.

What is the "Nation's Report Card"?

This is the common name for the National Assessment of Educational Progress (NAEP), a nationally representative assessment of U.S. students' knowledge and skills, which ETS conducts under contract.

How many exams does ETS administer annually?

ETS administers approximately 50 million exams each year across the United States and 180 other countries.