IPS Enterprises Inc

IPS Enterprises provides grades K-12 public charter school management services via management services agreements with schools in the IDEA network. Through these services, IPS Enterprises carries out its exempt purposes by developing school models, educational services, and products for the purposes of replicating the IDEA model, facilitating charter school campus development, including designing, financing, and leasing charter school sites, buildings and certain equipment facilitating the attainment of higher education. These activities are properly within the scope of IPS Enterprises' exempt purposes because they are functions that are reasonably and customarily necessary in order for IDEA to operate schools and to expand its network of charter schools both through its own expansion and by working with other educational organizations described in Section 501(c)(3) of the Code. IDEA accomplishes this component of its exempt purposes by and through IPS Enterprises, primarily through various lease and financing arrangements, through Management Services Agreements with the IDEA managed organizations, and through a Shared Services Agreement with IDEA. Pursuant to management arrangements and agreements, IDEA, through IPS Enterprises, makes available its charter school expertise, intellectual property, management and staffing services, charter school buildings, sites, certain equipment and other property and services to the IDEA managed organizations. IDEA Public Schools operates public, tuition-free charter schools in the State of Texas (the "IDEA Schools"). Due to interest in expanding the IDEA curriculum and school concept to states outside of Texas, IDEA formed IDEA Public Schools Louisiana, Inc. (EIN: 81-3194334), IDEA Florida, Inc. (EIN: 84-3519271), and IDEA Greater Cincinnati, Inc. (EIN: 85-3616675). The IDEA Schools, together with the charter schools operated or to be operated by the IDEA managed organizations, are referred to herein collectively as the "Schools." All of the Schools are or will be public, tuition-free charter schools operated pursuant to charter contracts with the relevant charter-issuing authorities (the "Charter Contracts").