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NPI Evaluation of Year Up

NPI Rating: BUY Evaluation as of 12/19/2011

Analyst: Nadia Anggraini

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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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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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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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More Information

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