On December 19, 2011, Nadia Anggraini issued a report on Year Up with a "BUY" rating. This research report has been peer reviewed by Michael Kim and Kent Chao.
Nonprofit Investor ("NPI") is a platform for the creation and distribution of free, in-depth research on charity organizations by volunteers.
If you believe there are any inaccuracies or errors in any report, please contact us.
1. NONPROFIT INVESTOR
I N D E P E N D E N T R E S E A R C H F O R P H I L A N T H R O P Y
Year Up SUMMARY
Year Up is a one‐year, intensive training program that provides urban
Nonprofit Investor Rating: young adults, aged 18‐24, with a unique combination of technical
BUY and professional skills, college credits, an educational stipend and
corporate internship.
Mission Statement STRENGTHS
Year Up's mission is to close the opportunity ▲ Strong record of impact. Research by Economic Mobility
divide by providing urban young adults with Corporation indicated that Year Up graduates earned up to 30%
the skills, experience, and support that will more relative to their peer group, strong results relative to other job
empower them to reach their potential training programs, many of which have been shown to lead to only
through professional careers and higher
modest gains in earning power among its participants.
education.
▲ Significant and growing portion of revenue generated from
Financial Overview programs rather than through donations. Year Up requires
$ in 000, Fiscal Year Ended December 31 corporate partners to pay $875 per week, or $22,750 for a six‐month
internship period, to receive interns. Not only does this provide a
2007 2008 2009
significant source of revenue to Year Up (~38% of 2009 revenue), it
Revenue and Support $24,502 $18,674 $24,407
also increases commitment on the part of these corporations.
Operating Expenses $12,664 $18,194 $23,393
▲ Scalable model. Year Up can replicate and introduce the same
% of Total: operating model to various urban centers across the US.
Program Expenses 79% 82% 82% CAUTIONS
G&A 14% 11% 11%
Fundraising 7% 7% 7% ● Overdependence on corporate partners in economic downturn.
With corporations reducing hiring, potential partners may be
Year Founded: 2000 reluctant to sign up for programs requiring them to commit to a 6‐
mo. internship. While Year Up is moving towards diversifying its
Contact Details partnership base, e.g. by partnering with the US Dept. of Agriculture
in Nov 2010, majority of its partnerships remain corporations.
Year Up
93 Summer Street ● Potentially volatile revenue stream from donations. Revenue
Boston, MA 02110 declined 25% in 2008, primarily due to a drop in public, corporate
617‐542‐1539
and foundation support. While revenue returned to 2007 levels in
www.yearup.org 2009, Year Up may benefit from continuing to reduce reliance on
EIN: 04‐3534407 grants and contributions in favor of program service revenue.
RECOMMENDATION: BUY
Year Up is a high‐impact, scalable organization moving towards becoming
Analyst: Nadia Anggraini
more financially sustainable. If it can continue on its current trajectory
Peer Review: M. Kim, K. Chao
while placing additional focus on providing more transparency and visibility
Publication Date into its financials, it will be well on its way to achieving its goal of closing the
December 19, 2011 opportunity gap among urban youths.
Nonprofit Investor Research | nonprofitinvestor.org
3. Revenue Mix Over Time
$ in '000
$30,000
$24,502 $24,407
$25,000
$18,674
$20,000
$15,000
$10,000
$5,000
$0
2007 2008 2009
-$5,000
Program Service Revenue Contributions and Grants
Other Revenue Investment Income
Expense Breakdown
$ in '000
$25,000 $23,393 83%
Program Expense % of Total
82%
$20,000 $18,194
81%
$15,000 80%
Expenses
$12,664
$10,000 79%
78%
$5,000
77%
$0 76%
2007 2008 2009
Program Expenses Fund-Raising
Management and General Program Expense % of Total
Year Up appears to be an efficient organization, with a large proportion of its expenses (~80%) allocated to program
services, and a low proportion (~7%) to fundraising. With approximately 1,400 youths served in 2009 at a cost of ~$24M,
Year Up's cost per beneficiary stands at ~$16,700, a moderate sum, though higher than peer organizations such as
Delancey Street Foundation.
Figures reported below are from Year Up's Forms 990, filed on a tax accounting basis.
Year Up | Nonprofit Investor Research 3
4. Fiscal year ended Dec 31 2007 2008 2009
Revenue and support
Contributions and grants $ 19,429 $ 12,428 $ 14,889
Fundraising events $ ‐ $ 578 $ 379
Government grants $ 900 $ 609 $ 724
All other $ 18,529 $ 11,241 $ 13,786
Program service revenue $ 5,100 $ 6,343 $ 9,436
Investment income $
‐ $ 204 $ 193
Other revenue $
(27) $ (301) $ (112)
Total revenue and support $ 24,502 $ 18,674 $ 24,407
Expenses
Program services $ 9,953 $ 14,972 $ 19,149
Grants $ ‐ $ 4,053 $ 5,299
Key employee compensation $ 383 $ 188 $ 474
Other salaries and wages $ 2,774 $ 5,064 $ 6,369
Other employee benefits $ 559 $ 754 $ 1,068
Occupancy $ 1,098 $ 1,313 $ 1,617
Student stipends $ 3,096 $ ‐ $ ‐
Other $ 2,043 $ 3,602 $ 4,322
Management and general $ 1,783 $ 2,020 $ 2,513
Key employee compensation $ 253 $ 407 $ 208
Other salaries and wages $ 528 $ 756 $ 1,092
Student stipends $ 13 $ ‐ $ ‐
Other $ 990 $ 857 $ 1,213
Fundraising expenses $ 928 $ 1,202 $ 1,732
Key employee compensation $ 139 $ 367 $ 446
Other salaries and wages $ 220 $ 260 $ 552
Other $ 569 $ 575 $ 734
Total expenses $ 12,664 $ 18,194 $ 23,393
Revenue less expenses $ 11,838 $ 480 $ 1,013
Educational stipends
Total stipend amount ($000) $ 3,627 $ 4,829
# of recipients 622 792
Average stipend size ($000) $ 5.83 $ 6.10
Student transportation
Total stipend amount ($000) $ 117 $ 143
# of recipients 138 144
Average stipend size ($000) $ 0.85 $ 0.99
College tuition and related fees
Total stipend amount ($000) $ 308 $ 326
# of recipients 493 718
Average stipend size ($000) $ 0.62 $ 0.45
Program expenses as % of total expenses 79% 82% 82%
Fundraising expenses as % of total expenses 7% 7% 7%
Contributions and grants as % of total revenue 79% 67% 61%
Program service revenue as % of total revenue 21% 34% 39%
Year Up | Nonprofit Investor Research 4