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

                                    Nov 14, 2022 - Cryptocurrency Exchange Bankruptcy Casts Shadow Over Crypto Philanthropy
                                    • 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.
                                    • Inflation is blunting the impact of charitable giving, according to Giving USA. Consider a donor who gave $10,000 to their charity of choice in 2021. To have the same impact in 2022, that donor would have to give about $10,700. Donors are more likely to make that $10,000 gift again, however, which can blunt the impact they’re able to make on beneficiaries.
                                    • A 2022 Government Accountability Office (GAO) report shows that inadequate coordination between local, state, and federal agencies can allow abuse in residential facilities, serving youth in foster care and youth with disabilities, to go undetected or unaddressed. The GAO found that a lack of consistent data-sharing and oversight practices across these agencies can pose steep challenges to identifying cases of child abuse, holding residential facilities accountable for abuse, and monitoring youth who move to other states. The report recommended that federal agencies facilitate coordination among states to identify best practices for collecting data and preventing and addressing child maltreatment in residential facilities.
                                    • About 37% of students at public and private high schools reported that their mental health was not good most or all of the time during the pandemic, according to the CDC’s Adolescent Behaviors and Experiences Survey. “Poor mental health,” as defined in the survey, includes stress, anxiety, and depression. About 31% of high school students said that they experienced poor mental health most or all of the time in the 30 days before the survey, which was conducted in early 2022. Some 44% said that, in the previous 12 months, they felt sad or hopeless almost every day for at least two weeks in a row such that they stopped doing some usual activities.
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