1. NPI Evaluation of Year Up
NPI Rating: BUY
Evaluation as of 12/19/2011
Analyst: Nadia Anggraini
www.nonprofitinvestor.org
2. NPI Rating: BUY
Year Up is a high-impact, scalable organization moving
towards becoming more financially sustainable. If it can
continue on its current trajectory while placing
additional focus on providing more transparency and
visibility into its financials, it will be well on its way to
achieving its goal of closing the opportunity gap among
urban youths.
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3. Year Up: Strengths
▲ Strong record of impact. Research by Economic Mobility
Corporation indicated that Year Up graduates earned up to 30%
more relative to their peer group, strong results relative to other
job training programs, many of which have been shown to lead to
only modest gains in earning power among its participants.
▲ Significant and growing portion of revenue generated from
programs rather than through donations. Year Up requires
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 significant source of revenue to Year Up (~38% of 2009
revenue), it also increases commitment on the part of these
corporations.
▲ Scalable model. Year Up can replicate and introduce the same
operating model to various urban centers across the US.
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4. Year Up: Cautions
● Overdependence on corporate partners in economic downturn. With
corporations reducing hiring, potential partners may be reluctant to sign
up for programs requiring them to commit to a 6-mo. internship. While
Year Up is moving towards diversifying its partnership base, e.g. by
partnering with the US Dept. of Agriculture in Nov 2010, majority of its
partnerships remain corporations.
● Potentially volatile revenue stream from donations. Revenue declined
25% in 2008, primarily due to a drop in public, corporate and foundation
support. While revenue returned to 2007 levels in 2009, Year Up may
benefit from continuing to reduce reliance on grants and contributions in
favor of program service revenue.
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5. More Information
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