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 62,700 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 52% 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 41-42 workers, and generates almost $1.8 million in annual revenue.

    • There are about 62,700 organizations providing individual and family services in the US. These include about 9,200 providing child and youth services, 31,300 providing services for the elderly and disabled, and 22,200 providing other services.
    • Individual and family services organizations generate over $111 billion in annual revenue and have 2.6 million employees.
    • 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

                                    Mar 8, 2023 - Volunteerism Varies Across Age Groups
                                    • 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. Services like crisis center hotlines rely heavily on volunteer staff. 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.
                                    • Public health experts including The Community Preventive Services Task Force warn that relaxed alcohol sales rules are eroding progress combating substance abuse primarily because resources for treatment for alcoholism have failed to keep pace with problems resulting from increased consumption. Many states moved to help restaurants and small businesses by making it easier to sell alcoholic beverages during the pandemic. The public policy shift in the states coincided with a significant increase in alcohol consumption during the pandemic and a 26% increase in alcohol-induced deaths from 2019 to 2020, according to the Centers for Disease Control and Prevention. The Community Preventive Services Task Force, an independent panel of experts created by the Department of Health and Human Services to recommend evidence-based public health actions to government agencies, says both raising taxes on alcohol and narrowing access to it could reduce rates of misuse.
                                    • Marijuana abuse among 6- to 18-year-olds has increased 245% since 2000, while child alcohol abuse has steadily declined over those years, according to Oregon Health & Science University researchers. Use of cannabis has evolved over the years. "We're seeing that adolescents are moving away from smoking weed, and they're moving on to alternative modes of consumption," like edibles, lead researcher Dr. Adrienne Hughes said. "A lot of times they're marketed in ways that are attractive to young people and are considered kind of more discreet, more convenient and not obvious."
                                    • Promises made by the Future Fund, part of the FTX Foundation created by the former CEO of bankrupt cryptocurrency exchange FTX, are unlikely to be met, according to a November 2022 resignation letter from the Future Fund team. The FTX Foundation had pledged at least $160 million towards various nonprofits and individuals. The November Chapter 11 bankruptcy filing by cryptocurrency exchange giant FTX has cast doubt on the future of so-called crypto philanthropy. FTX founder Sam Bankman-Fried’s philanthropic fund has halted donations. Some individual and family services agencies are highly dependent on contributions from private organizations. Bankman-Fried had emerged as a leader of what has been dubbed the "effective altruism" movement, which sought to reshape philanthropy. Crypto philanthropy has exploded over the last two years. Fidelity Charitable received around $330 million in cryptocurrency in 2021 up from $28 million in 2020. The Giving Block, a cryptocurrency donation platform, reported $69 million in total donation volume last year, an impressive 1,558% spike from 2020. Major exchanges like Coinbase and Binance launched their own philanthropy initiatives. Most nonprofits don’t keep the crypto they receive: They convert it to traditional currency.
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