Individual and Family Services

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 69,000 individual and family services agencies in the US serve children and youth, the elderly and disabled, and persons in crisis. They also provide programs for people needing specific support, such as alcohol and substance abuse self-help programs, ex-offender support programs, and marriage counseling. About 50% of organizations are tax-exempt non-profits.

Dependence On Government Funding

Individual and family services agencies often rely on government grants or contracts for a large part of their annual revenue.

High Staff Turnover

Child welfare and other social service agencies experience an average staff turnover of 30-40% per year and the average length of employment for their staff is less than two years.

Industry size & Structure

A typical individual and family service organization operates a single location, employs 42-43 workers, and generates almost $2.2 million in annual revenue.

    • The 69,000 organizations providing individual and family services in the US generate over $149 billion in annual revenue and have 3 million employees.
    • About 15% of organizations provide child and youth services, 48% provide services for the elderly and disabled, and 37% provide other services.
    • Large organizations include Boys and Girls Clubs of America, Save the Children Foundation, Boys Town, and Uplift Family Services.
                                    Industry Forecast
                                    Individual and Family Services Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Nov 14, 2024 - Personal Income Increases
                                    • Personal income, an indicator of demand for individual and family services, increased 0.3% month over month in September 2024 while consumer spending increased 0.5%, according to the US Commerce Department's Bureau of Economic Analysis (BEA). Real disposable personal income, what Americans make after adjusting for inflation and taxes, increased 0.3% during the period. The personal savings rate decreased to 4.6% in September, down from 4.8% in August and 4.9% in July.
                                    • Stock market gains, growth in personal income, and higher net worth are expected to result in a 4.2% increase in charitable giving in 2024 and another 3.9% increase in 2025, according to the Indiana University Lilly Family School of Philanthropy. The projected increase is greater than the average growth rate of giving since 2005, and is expected to surpass 10-year, 25-year, and 40-year annualized growth averages. The average rate of growth for giving from 2005 to 2014 — a period covering the 2007-08 financial crisis and subsequent recession — was 1%. The average growth rate from 2015 to 2024 is expected to have been 1.9%.
                                    • The Biden Administration finalized 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. Individual and family services agencies often rely on government grants for a large part of their annual revenue. 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.
                                    • Individual and family service industry employment increased moderately and wages for nonsupervisory employees increased slightly during the first nine months of 2024, according to the US Bureau of Labor Statistics. Individual and family services industry sales are forecast to grow at a 5.1% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy.
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