Better Business Bureau Report for
KIPP, Inc.

Better Business Bureau Report issued October 2013
Better Business Bureau Report expires October 2014

This BBB Accredited charity meets all 20 Standards for Charity Accountability. Find out more...

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Charity Contact Information

Name: KIPP, Inc.
Address: 10711 KIPP Way
  Houston, TX 77099
Phone: 832-328-1051
Web Address:
Also known as:KIPP Houston
Knowledge Is Power Program
KIPP Houston Public Schools
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Better Business Bureau Comments

Year, State Incorporated: 1995, Texas
Affiliates: None
Stated Purpose: To develop in underserved children the academic skills, intellectual traits, and qualities of character necessary to succeed at all levels of pre-kindergarten through twelfth grade, college, and the competitive world beyond.

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Evaluation Conclusions


KIPP, Inc. (KIPP) meets the 20 Standards for Charity Accountability.
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KIPP (Knowledge Is Power Program) was created in response to the scarcity of world-class, high-performing educational choices available to low-income and minority students. In 1994, Dave Levin and Mike Feinberg, as members of Teach For America, founded KIPP for inner-city Houston fifth-graders. The program soon evolved into two public middle schools: KIPP Academy Houston and KIPP Academy New York. Nationally, KIPP has expanded to include 141 free, open-enrollment and public charter schools nationwide, serving 50,000 under-resourced students in 20 states as well as the District of Columbia. During the 2013-14 school year, we are serving more than 10,700 students in 22 schools across Houston with a college preparatory education based on hard work, character development, and the belief that ALL of our KIPPsters WILL learn. KIPP’s mission is to develop in underserved students the academic skills, intellectual habits, and qualities of character necessary to succeed at all levels of pre-kindergarten through twelfth grade, college, and the competitive world beyond. Approximately 90% of our students are economically disadvantaged, and 97% are minorities. All KIPP schools share a core set of operating principles known as the Five Pillars: (1) High Expectations: for academic achievement and conduct that make no excuses for students' backgrounds; (2) Choice and Commitment: KIPP's students, parents, and faculty elect their school and voluntarily commit to its expectations; (3) More Time on Task: students have more time in the classroom to acquire the academic knowledge and skills that will prepare them for competitive high schools and colleges; (4) Power to Lead: school leaders are empowered to make the best decisions for their students; and (5) Focus on Results: we relentlessly focus on high student performance on standardized tests and other objective measures.

For the fiscal year ended June 30, 2012, KIPP's program expenses were:

Instructional program 56,792,828
Auxiliary services 10,450,373
Total Program Expenses: $67,243,201
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Chief Executive : Sehba Ali, Superintendent

Chair of the Board: Brian McCabe
Chair's Profession / Business Affiliation: Morgan Stanley, Managing Director

Board Size: 14

Paid Staff Size: 1040

*Compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising


Method(s) Used:

Fund raising costs were 2% of related contributions. (Related contributions, which totaled $77,634,712, are donations received as a result of fund raising activities.)
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Tax Status


This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
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The following information is based on KIPP's audited financial statements for the fiscal year ended June 30, 2012.

Source of Funds  
Government grants 69,950,746
Program Service fees 6,873,113
Contributions 6,508,022
Special events 1,175,944
Other 312,531
Interest income 19,097
Cost of direct donor benefits -140,096
Total Income $84,699,357


Uses of Funds as a % of Total Expenses

Programs: 83%  Fund Raising: 2%  Administrative: 15%  Other Expenses: Less than 1%

Total income $84,699,357
Program expenses $67,243,201
Fund raising expenses 1,328,582
Administrative expenses 12,492,568
Other Expenses 23,400
Total expenses $81,087,751
Income in Excess of Expenses 3,611,606
Beginning net assets 18,422,834
Ending net assets 22,034,440
Total liabilities 141,471,980
Total assets $163,506,420

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The BBB has processed no complaints about this organization within the past 36 months, our standard reporting period.

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An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the BBB Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

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