A National Imperative: Joining Forces to Strengthen Human Services in America (Jan 2018)

people living with disabilities and the elderly. There isn’t a viable economic market solution to the situation. Government funding is needed to implement the policy, whether services are provided by human services CBOs or directly by government. Today, a growing percentage of private grants and donations supplement inadequate contractual payments by government agencies to human services CBOs. This section of the report provides an introduction to the human services ecosystem: what it does, how much value it creates, and its potential to be an even more significant transformative force for our communities and society if we make the necessary changes and investments.

THE HUMAN SERVICES ECOSYSTEM PROVIDES A BROAD ARRAY OF CRITICAL SERVICES

The human services ecosystem has evolved to provide critical services and supports for individuals and families in need of them.

These services are sometimes delivered directly by government agencies, but are more often delivered by human services CBOs (typically under contract with government). But these CBOs are more than just service providers. Human services CBOs contribute to the development of policies to improve the human capital of our nation. They create innovative approaches to produce better outcomes, and they produce significant economic return in their local economies as employers and purchasers of goods and services.

Exhibit 2: Human services ecosystem key stakeholders and funding and expenditure flows

Some services provided directly by the government

~ $120–150 billion Public agencies State and local: ~50% Federal: ~20% Medicaid: ~25% Other: ~5%

~$200 billion Individuals, families and communities

Human services CBOs

Managed care Government funding may be provided to a third-party (e.g., managed care), which then contracts with CBOs

~$40–70 billion Private funders Individuals: ~50% Foundations: ~35% Corporates: ~15%

Other revenue sources Includes, e.g., investment income, private service fees, business income, etc.

Source: National Center for Charitable Statistics (NCCS), Urban Institute, IRS Form 990 data, Oliver Wyman analysis Note: These figures do not include the value of volunteer time and in-kind donations.

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