Civic & Social Organizations
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 23,000 civic and social organizations in the US promote the civic and social interests of members. The industry includes a wide range of organizations, including alumni groups, booster clubs, fraternal associations, scouting organizations, PTAs, fraternities and sororities, student associations, and veteran’s organizations. Civic and social groups operate as non-profit organizations and are exempt from federal income taxes.
Membership Affected by Demographic Trends
Because most civic and social groups operate locally, demographic trends in a particular market can greatly affect membership.
Reliance on Contributions
Contributions, gifts, and grants account for about 26% of industry revenue and are the single largest source of funding for civic and social organizations.
Industry size & Structure
A typical civic or social organization operates out of a single location, employs about 15 workers, and generates $1 million annually.
- The civic and social organization industry consists of 23,000 organizations that employ 345,800 workers and generate about $23.2 billion annually.
- The industry includes a wide range of organizations, including alumni groups, booster clubs, fraternal associations, scouting organizations, PTAs, fraternities and sororities, student associations, and veteran's organizations.
- The industry is highly fragmented; the 50 largest organizations account for just over 15% of industry revenue.
- Large organizations include Freemasons, Boy Scouts, American Legion, and the YMCA.
- A vast majority of civic and social organizations are nonprofit.
Industry Forecast
Civic & Social Organizations Industry Growth
Recent Developments
Jul 14, 2024 - Employment Increases
- Civic and social organization industry employment increased significantly during the first five months of 2024 while average wages for nonsupervisory employees decreased slightly, according to the US Bureau of Labor Statistics. Civic and social organization industry sales are forecast to grow at a 3.2% compounded annual rate from 2024 to 2028, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Civic and social organizations generate revenue primarily through membership fees, contributions, gifts, grants, and other fundraising programs.
- The Biden Administration finalized substantial updates to the Office of Management and Budget’s Guidance for Federal Financial Assistance, which sets the foundational requirements for agencies in making grants and providing other forms of federal financial assistance. Contributions, gifts, and grants account for about 26% of industry revenue and are the single largest source of funding for civic and social organizations. The updates to what is known as the Uniform Grants Guidance will streamline and clarify requirements for federal funding so recipients can invest in mission outcomes rather than in administrative overhead, according to the Administration. The updated Uniform Grants Guidance also instructs agencies to make grant announcements as clear and concise as possible to make it easier for eligible recipients to access critical funding. The Federal government provides more than $1.2 trillion in funding per year for thousands of programs through grants and other forms of financial assistance.
- Civic and social organizations are struggling with volunteer recruitment as fewer people are choosing full-time volunteer work after college, according to America Magazine. The Peace Corps, for example, has experienced a significant decrease in the number of volunteers, dropping from 7,240 in 2020 to just 2,530 in 2023. Amate House, a yearlong postgraduate service program in Chicago, is facing similar difficulties. Jeanine Balanda, the director of Amate House said that, previously, there were about 11 volunteer fellows in each Amate cohort. There are six in 2024. “You may get a good amount of applications, but then people that will actually commit to a year of service and leadership development is much lower than your actual applicant pool,” she said. COVID-19 restrictions and caution caused a downturn in volunteer rates, but according to “The Giving Environment: Understanding Pre-Pandemic Trends in Charitable Giving” published by the Indiana University of Pennsylvania, the decrease cannot be blamed entirely on the pandemic. The number of volunteers, from post-graduates who do a year of service to weekly soup kitchen volunteers, has been decreasing steadily since the early 2010s, according to the report.
- Limited time is the biggest barrier to volunteering, with personal family obligations (22%) and work demands (25%) cited by respondents to an American Association of Retired Persons survey as the most frequent hindrances. Adults 65 and older give the most time, spending on average 9.6 hours a month. But the youngest adults (18–34) give nearly as much time, averaging 8.9 hours a month. More than half of adults (52%) were very or somewhat interested in volunteering from home. About 52% of adults were interested in volunteering small increments of time.
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