Industry operators retain support by holding industry functions that increase health-related education
Los Angeles, CA (PRWEB) November 12, 2013
Over the five years to 2013, the Health Fundraising Organizations industry experienced volatile swings in revenue; however, with the onset of improving economic conditions, industry revenue is expected to trend higher. According to IBISWorld Industry Analyst Brandon Ruiz, “This industry includes establishments that raise money for health-related research, such as disease prevention, health education and patient services.” Due to being heavily reliant on individual consumers and corporations for donations, industry revenue tends to ebb and flow with fluctuations in per capita disposable income and corporate profit. As such, both of these drivers suffered during the recession, consequently hurting industry revenue. Nevertheless, disposable income and corporate profit have since rebounded. As a result, IBISWorld expects industry revenue to increase at an annualized rate of 3.4% to $17.5 billion over the five years to 2013, rounded out by a 5.1% increase in 2013.
Industry revenue is largely derived from four sources: individual consumers, corporations, government funding and investment income. Although revenue from consumers can be further broken up into subsegments, overall consumer contributions are expected to account for 73.0% of industry revenue. As such, consumer contributions are the main driver for the industry organizations. To this end, industry operators attract and retain support from consumers by holding industry functions that increase health-related education and awareness.
In the next five years, the Health Fundraising Organizations industry is expected to continue to trend higher; however, the industry is expected to face hurdles that pose a potential threat for the industry. “For example, recent US pressure to enact budget cuts will likely decrease government grants offered to industry organizations, thus hurting industry revenue,” says Ruiz. Additionally, the number of consumers that contribute to industry organizations is expected to slow. Fortunately for the industry, corporate profit is expected to continue to surge as many US businesses reduced unnecessary production capacity and labor during the downturn. To this end, corporate contributions are expected to be the driving force behind industry growth over the five years to 2018. IBISWorld expects industry revenue to increase at over the five-year period.
The Health Fundraising Organizations industry has a low level of concentration. The major company in this industry is the American Cancer Society. The majority of industry operators are smaller organizations that focus their resources on specific diseases and health-related issues or serve specific geographic areas.
For more information, visit IBISWorld’s Health Fundraising Organizations in the US industry report page.
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IBISWorld industry Report Key Topics
The Health Fundraising Organizations industry includes establishments that raise money for health-related research, such as disease prevention, health education and patient services. Funding is accomplished through grants to individuals or institutions that apply for funds.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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