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ParaZero Technologies (Nasdaq: PRZO) has successfully demonstrated its DropAir Precision airdrop system in collaboration with a leading global defense company. The demonstration validated the system’s capability to deliver critical supplies accurately under challenging operational conditions.
The test involved multiple high-altitude drone airdrops, where the company’s proprietary DropAir technology demonstrated its advanced parachute mechanism, activating at low altitude to ensure minimal drift and precise landings in complex environments. Following this success, ParaZero plans to advance the DropAir system to its next development phase, with a focus on enhancing capabilities for military and humanitarian operations.
ParaZero Technologies (Nasdaq: PRZO) ha dimostrato con successo il suo DropAir Precision airdrop system in collaborazione con una delle principali aziende globali nel settore della difesa. La dimostrazione ha convalidato la capacità del sistema di consegnare forniture critiche con precisione anche in condizioni operative difficili.
Il test ha coinvolto più sganci aerei ad alta quota, durante i quali la tecnologia proprietaria DropAir dell’azienda ha mostrato il suo avanzato meccanismo di paracadute, attivandosi a bassa quota per garantire una deriva minima e atterraggi precisi in ambienti complessi. A seguito di questo successo, ParaZero prevede di portare il sistema DropAir alla sua prossima fase di sviluppo, con un focus sul miglioramento delle capacità per operazioni militari e umanitarie.
ParaZero Technologies (Nasdaq: PRZO) ha demostrado con éxito su DropAir Precision airdrop system en colaboración con una destacada empresa global de defensa. La demostración validó la capacidad del sistema para entregar suministros críticos con precisión en condiciones operativas desafiantes.
La prueba involucró múltiples lanzamientos de drones a gran altura, donde la tecnología patentada DropAir de la empresa demostró su avanzado mecanismo de paracaídas, que se activó a baja altura para garantizar una deriva mínima y aterrizajes precisos en entornos complejos. Tras este éxito, ParaZero planea avanzar el sistema DropAir a su próxima fase de desarrollo, con un enfoque en mejorar las capacidades para operaciones militares y humanitarias.
ParaZero Technologies (Nasdaq: PRZO)는 세계적인 방산 기업과 협력하여 DropAir Precision 공중 투하 시스템을 성공적으로 시연했습니다. 이 시연은 시스템이 도전적인 작전 조건에서도 중요한 공급품을 정확하게 전달할 수 있는 능력을 검증했습니다.
테스트에는 여러 고고도 드론 투하가 포함되었으며, 회사의 독점 기술인 DropAir는 낮은 고도에서 작동하는 고급 낙하산 메커니즘을 보여주어 복잡한 환경에서도 최소한의 기류와 정확한 착륙을 보장했습니다. 이러한 성공에 따라 ParaZero는 DropAir 시스템을 다음 개발 단계로 발전시킬 계획이며, 군사 및 인도적 작전의 역량 강화에 중점을 둘 것입니다.
ParaZero Technologies (Nasdaq: PRZO) a réussi à démontrer son DropAir Precision airdrop system en collaboration avec une entreprise mondiale de défense de premier plan. La démonstration a validé la capacité du système à livrer des fournitures critiques avec précision dans des conditions opérationnelles difficiles.
Le test a impliqué plusieurs largages aériens de drones à haute altitude, où la technologie propriétaire DropAir de l’entreprise a démontré son mécanisme de parachute avancé, s’activant à basse altitude pour assurer une dérive minimale et des atterrissages précis dans des environnements complexes. Suite à ce succès, ParaZero prévoit de faire progresser le système DropAir vers sa prochaine phase de développement, en mettant l’accent sur l’amélioration des capacités pour les opérations militaires et humanitaires.
ParaZero Technologies (Nasdaq: PRZO) hat erfolgreich sein DropAir Precision Airdrop-System in Zusammenarbeit mit einem führenden globalen Rüstungsunternehmen demonstriert. Die Demonstration bestätigte die Fähigkeit des Systems, kritische Lieferungen auch unter herausfordernden Betriebsbedingungen präzise zu liefern.
Der Test umfasste mehrere Hochaltitude-Drohnenabwürfe, bei denen die firmeneigene DropAir-Technologie ihren fortschrittlichen Fallschirmmechanismus demonstrierte, der in niedrigen Höhen aktiviert wurde, um minimalen Drift und präzise Landungen in komplexen Umgebungen zu gewährleisten. Nach diesem Erfolg plant ParaZero, das DropAir-System in die nächste Entwicklungsphase zu überführen, mit dem Fokus auf die Verbesserung der Fähigkeiten für militärische und humanitäre Einsätze.
The successful demonstration of ParaZero’s DropAir system marks a pivotal moment in the company’s defense sector strategy. Working with a leading global defense company provides critical validation and potentially opens doors to significant procurement opportunities, as defense contractors typically conduct extensive testing before considering large-scale deployments.
The system’s demonstrated capability to execute precise airdrops from high altitudes while maintaining accuracy through low-altitude parachute deployment addresses two critical military requirements: maintaining aircraft safety through high-altitude operations and ensuring delivery accuracy for mission-critical supplies. This dual capability significantly differentiates DropAir in the tactical resupply market.
The defense logistics market presents substantial growth potential, with the global military drone market projected to expand significantly over the next decade. The successful demonstration positions ParaZero to capture market share in both military and humanitarian sectors, where precision airdrop capabilities are increasingly vital for operations in contested or difficult-to-access environments.
However, investors should note that the path from successful demonstration to full-scale military procurement typically involves multiple stages of testing, certification, and contract negotiations. While this achievement represents positive progress, the timeline and scale of potential revenue impact remain uncertain. The company’s ability to move efficiently through subsequent development phases and secure production contracts will be important metrics to monitor.
Tel Aviv, Israel, Feb. 11, 2025 (GLOBE NEWSWIRE) — ParaZero Technologies Ltd. (Nasdaq: PRZO) (the “Company or “ParaZero”), an aerospace company focused on safety systems for commercial unmanned aircrafts and defense Counter UAS systems, recently announced that it has gained another impressive achievement with its DropAir Precision airdrop system. The Company announced last week the successful demonstration of the DropAir system in collaboration with a leading global defense company. The demonstration showcased the DropAir system’s ability to safely and precisely deliver critical supplies under challenging operational conditions.
During the test, ParaZero’s proprietary DropAir technology was deployed in multiple high-altitude drone airdrops. The system’s advanced parachute mechanism activated at low altitude, ensuring minimal drift and precise landings, even in complex environments. Following the successful demonstration, ParaZero plans to advance the DropAir system into the next phase of development, focusing on enhancing its capabilities for real-world military and humanitarian operations.
About the DropAir Precision Airdrop System
The DropAir Precision Airdrop System (High-Altitude Low-Opening) is designed to revolutionize drone-based logistical support by enabling precise and secure delivery of supplies in challenging environments. Leveraging ParaZero’s renowned parachute technology, the DropAir system offers a cutting-edge solution to support military forces and emergency responders operating in high-risk zones.
Following this demonstration and previous successful tests, ParaZero is moving forward with the next stage of DropAir’s development, refining the technology for operational deployment in military and humanitarian applications.
Boaz Shetzer, CEO of ParaZero, said: “This successful demonstration reinforces ParaZero’s commitment to advancing aerial safety and precision in critical supply missions. We believe that the DropAir system has the potential to transform logistical operations for defense and emergency response, ensuring rapid and secure deliveries in the most demanding environments. We are excited to take this technology to the next level, working towards its integration into real-world operational scenarios.”
About ParaZero Technologies
ParaZero (Nasdaq: PRZO) is a leading developer of autonomous parachute safety systems technologies for commercial and military platforms as well as for urban air mobility (UAM) aircraft. Started in 2014 by a passionate group of aviation professionals and drone industry veterans, ParaZero develops and manufactures smart, autonomous parachute safety systems designed to enable safe flight operations over populated areas and beyond-visual-line-of-sight (BVLOS) as well as for various military applications including Counter UAS. For more information about ParaZero, please visit https://parazero.com/
Forward- looking statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, ParaZero is using forward-looking statements when it discusses how the DropAir Precision Airdrop System is designed to revolutionize drone-based logistical support by enabling precise and secure delivery of supplies in challenging environments, commitment to advancing aerial safety and precision in critical supply missions and its belief that the DropAir system has the potential to transform logistical operations for defense and emergency response, ensuring rapid and secure deliveries in the most demanding environments. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report on From 20-F for the year ended December 31, 2023. Forward- looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. ParaZero is not responsible for the content of third-party websites.
Investor Relations Contact:
Michal Efraty
Investor Relations
michal@efraty.com

What was the outcome of ParaZero's (PRZO) recent DropAir system demonstration?

How does ParaZero's (PRZO) DropAir Precision airdrop system work?

What are the next steps for ParaZero's (PRZO) DropAir system after the successful demonstration?

Who did ParaZero (PRZO) partner with for the DropAir system demonstration?

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Rather than a trade war, the small American city of Port Angeles is hoping to trade playful jibes with its Victoria neighbours instead.
“Is Ryan Reynolds a Canadian problem or an American problem?” said Sam Grello, executive director of Port Angeles Waterfront District. “That’s the sort of stupid stuff we want to be ‘fighting’ about again.”
But with U.S. President Donald Trump threatening 25 per cent tariffs on Canadian goods and his repeated calls for Canada to become a 51st state, Grello says Port Angeles is “freaking out” about the repercussions this could have on their much-treasured relationship with Victoria.
“To quote a famous Canadian, Keanu Reeves, ‘Strange things are afoot at the Circle-K,’” said Grello. “The nature of the conversation that is happening right now feels surreal … our relationship between America and Canada is getting politicized.
“I would not have picked that on my 2025 bingo card.”
Connected by Black Ball Ferry Line’s MV Coho for over six decades, the Washington city jokes it is the lost American suburb of Victoria, says Grello, developing over time an important economic and cultural connection.
“When people in Port Angeles want to go to a fancy dinner and a show, we go to Victoria,” he said. “We don’t go to Seattle – we really feel close to the folks across the Strait.”
According to a 2019 study commissioned by Black Ball, the Coho generates $64 million a year for Port Angeles, with around 600 jobs reliant on the connection.
The economic connection between the two cities is never more obvious than when the Coho is dry-docked, says Grello, who notes the ferry is currently undergoing annual maintenance and will have been out of action for five weeks when it returns.
“We really notice the absence of the Coho and the visitors that are coming over from Vancouver Island and Victoria … we miss them,” Grello said.
So when passengers from Victoria disembark from the Coho’s first sailing of the year on Feb. 20, they will be greeted by an enthusiastic Port Angeles welcome party waving Canadian flags, dressed in red and white.
“We’re also going to have some cheeky signs, poking fun at some of the silly stuff about our relationships … some of the goofier stuff that kind of leans into our affection for our neighbours up north,” said Grello.
There will also be a live band and a ‘Ask an American’ booth where “curious Canadians can chat with friendly Americans about anything.”
Some waterfront district businesses will be offering discounts to Canadians who show their passport or driver’s licence.
“We feel compelled in this moment to stand up and make some visual demonstration of our affection towards Victoria,” Grello said. “We are a very small rural community – we do not have a lot of capital or a lot of political power, but we do have agency within our community.”
With some Canadians boycotting travel to the U.S. in response to Trump’s tariff threats, Grello says he understands Port Angeles’ gesture won’t change the minds of those who have chosen to break away from the States.
Instead, he hopes when the dust eventually settles, people will remember Port Angeles show of solidarity.
“We think it is important that we demonstrate that we value our relationship with Victoria, and that we highlight that America is not a monolithic block of thought,” said Grello.
About the Author: Ben Fenlon
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The Regional News
Southwest Regional Publishing
Palos Park Commissioner G. Darryl Reed let his guard down for just a few minutes.
And Artificial Intelligence scammers burned him.
In recent village council meetings, Police Commissioner Dan Polk has warned residents that AI scammers are getting more dangerous by sending realistic-looking emails and texts asking people for credit card information.
Reed has paid attention to those warnings. As a lawyer, he usually turns a skeptical eye toward communications that seem like frauds.
But he was a victim on Feb. 7, and at the Feb. 10 meeting, he urged residents to continue to be careful.
“I received a text from what I thought was the Illinois Tollway Authority,” Reed said. “They said I had unpaid tolls of $6.60. Being as anal as I am, I jumped right online to pay it.”
But he used the embedded address on the text.
“I put in my credit card information and then I got a message that said I needed to reconfirm that,” Reed said. “I’m like ‘wait a minute.’ So, I stopped.”
He realized that his tollway account has an automatic replenishment and would not have unpaid tolls but by that time it was too late.
“So, Saturday I was in Hong Kong making purchases and then the next day I was in Paris making purchases,” Reed said.
Reed said he received a call from his credit card representatives asking if he was making purchases in Hong Kong and Paris.  After confirming that he didn’t, he had to go through the hassle and nightmare of canceling the card and getting a new one.
Polk said that the tollway scam has been prevalent of late.
“If you have an account with the tollway and it replenishes so if you get a notice that you owe $6.60, you might want to go to your account and check it out,” Polk said, and added that scammers also try to find victims via PayPal notices.
“If something seems funky to you, go to the original source,” Polk said.  
But scammers were not done trying to pick on Reed.
He said that hours before the meeting, he received a phone call from someone claiming to be from his bank saying that someone was attempting to change his password and that if he entered six digits into the phone, it would be taken care of.
He didn’t bite on this one.
“Always make sure that if you give out your credit card information that it is a valid vendor,” Reed said. “They are getting good with the Artificial Intelligence stuff. I mean real good. Don’t take anything for granted.”   
Appointments
The council made a handful of reappointments at the meeting.

• Edward Marcyn was reappointed to the Plan Commission through June 1, 2029.

• Vanetta Wiegman and Nancy Konior were reappointed to the Zoning Board of Appeals through June 1, 2029.

• Loretta Gaidas was reappointed to the Recreation Board through June 1, 2027.

• Denise Cowan and Betty Hruska were reappointed to the Beautification Committee through June 1, 2027. 

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A series of variations tracks the course of a relationship between two lovers who are a cosmic case study in the precarious miracle of human love.
“Do you know why it’s impossible to lick the tips of your elbows?”
You’d never guess that such an innocent question could kick off a dizzying 80-minute metaphysical probe into the precarious miracle of human love. But in Nick Payne’s Constellations, playing at Source Theatre in a production by Constellation Theatre Company, lovers Roland and Marianne are a cosmic case study in just that, weaving their love story through a repetitive series of self-variations that tracks the course of a relationship through topics as wide-ranging as quantum mechanics, the utilitarian social structures of beehives, and free will.
Payne makes clear from the first scene (and its numerous variations) that structure supersedes story in this work. One by one, researcher Marianne (Dina Soltan) and beekeeper Roland (Tony K. Nam) play out a string of meet-cutes until they finally land on one that allows them to advance to the next step of their story. At each step along the way — the initial dating period, a breakup, a reconciliation, an engagement, a scary diagnosis — the characters confront the factors that could bring their romance to its untimely end, but still manage to find the option that pushes them forward.
It’s soon clear that Marianne and Roland aren’t so much characters as proxies. They are proverbial “everypeople,” stand-ins for the countless relationships that form and fall each day (this is most effectively achieved when one of the scene variations is surprisingly performed entirely in sign language, arranged beautifully by Director of Artistic Sign Language Shanna Sorrells). Their chatter about the cosmos and physics is a reminder we are, as Carl Sagan said, made of “star stuff,” borne of a finicky sequence of scientific events and impulsive decisions. At any point, Marianne and Roland show us time and time again, a love can fall apart. That it can endure is a miracle of the universe.
It’s a beautiful notion and concept that is, unfortunately, hampered by the weight of Payne’s tedious repetitiousness. Wonder, a core emotion central to Payne’s metaphysical approach to love, is best served with space to dream and reflect. In rattling variation after variation, Payne leaves his audience to expend far more energy wondering which of the quick-changing paths Marianne and Roland are on, and attempting to keep the shifting details straight. If Marianne parrots Payne’s thesis about the fickle nature of human existence in describing diverging physics theory — “We’ve effectively asked the same question twice and come up with two different answers” — then Roland offers an unintentional response in his envy of the predetermined roles of bees: “If only we could understand why we’re here and what we’re doing.”
Fortunately, under Director Nikki Mirza, the production’s cast and crew hold a much clearer vision for what they’re doing and execute successfully. Soltan and Nam do impressive work maneuvering between quick tonal shifts and modifications in their characters, adapting line readings to differentiate milieus. Even as the romantic ground shifts rapidly beneath their feet, the two maintain a strong chemistry that makes all the easier the audience’s job of understanding why these two just can’t quit each other despite the odds being ever out of their favor.
And what Scenic Designer Sarah Reed and Lighting Designer Alberto Segarra have done with flexible space inside Source is itself a special achievement. For this staging in the round, the tiered audience is surrounded by speckled netting that evokes the farthest stars of the deep universe. This starry cloak is offset by angular white window panes that are left empty or filled with opaque, luminous plexiglass. One gets the sense that they are contained in a prism, right in the middle of refracting light, with washes of white dispersed into colorful shades on the floor. A small runway and movable illuminated blocks are enough to create a sense of place while supporting the ethereal vastness of the perimeter. Sound Designer Ian Vespermann works dutifully in conjunction with Segarra to signal a new variation, further staving off confusion. And Costume Designer Moyenda Kulemeka’s layered attire helps to mark the passage of time and underscore the tenderness of a caregiving relationship.
All that is great around the play has the benefit of elevating the text itself, despite its lofty challenges. Maybe, just maybe, in the next variation, the production and play will find their perfect level.
Running Time: 80 minutes without an intermission
Constellations, a production of Constellation Theatre Company, plays through March 9, 2025, presented by Constellation Theatre Company, performing at Source Theatre, 1835 14th Street NW, Washington, DC. Performances are Thursdays-Saturdays at 8:00 pm, and Saturdays-Sundays at 2:00 pm. Tickets ($24–$56) may be purchased online by phone at 202-204-7741, or in person before each performance. Constellation offers a variety of discount programs and pay-what-you-will performances. Select performances are ASL interpreted.
Cast and production team credits and bios are here (scroll down).
COVID Safety: Masks are optional except for Saturday matinees where they are required. Constellation’s Health and Safety policies are here.
SEE ALSO:
Constellation Theatre opens 18th season with Nick Payne’s ‘Constellations’ (news story, January 9, 2025)

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BMC Public Health volume 25, Article number: 567 (2025) Cite this article
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Caregiver burden encompasses the physical, emotional, financial, and social challenges faced by individuals caring for a sick or disabled person. Spiritual well-being and social support have been identified as protective factors against psychological and physical issues, potentially alleviating caregiver burden. This study aims to explore the relationship between spiritual well-being, perceived social support, and caregiver burden among parents of children with disabilities.
A descriptive-analytical study was conducted with 260 family caregivers, selected through systematic random sampling. Data were collected using a demographic questionnaire, the Novak and Gaug Caregiving Burden Scale, the Paloutzian-Ellison Spiritual Well-being Scale, and the Zimet Social Support Questionnaire. Statistical analysis was performed using IBM SPSS version 22, with significance set at p < 0.05.
Among the caregivers, 148 (61.4%) reported a high level of caregiving burden, while 81% indicated moderate spiritual well-being and 14.5% reported high spiritual well-being. A significant negative correlation was found between spiritual well-being, social support, and caregiving burden (p < 0.05). Multiple linear regression analysis revealed that spiritual well-being (β = -0.41) and social support (β = -0.33) were the most significant predictors of caregiving burden. Additional significant predictors included social activities, underlying health conditions, age, caregiving duration, insurance coverage, and marital status (p < 0.05).
The high caregiving burden observed in this population, along with the inverse relationship between social support, spiritual well-being, and caregiving burden, underscores the need for strategies to enhance social support and spiritual well-being. These factors may serve as cost-effective, accessible interventions to alleviate caregiving burden.
Peer Review reports
Various challenges manifest as caregiving burdens when a child is born with a disability, significantly increasing the psychological stress experienced by family members—especially parents [1, 2]. Intellectual and physical disabilities are among the leading causes of disease burden worldwide, predominantly affecting children under five years of age. It is estimated that globally, 2–3% of children have intellectual disabilities, while approximately 15% exhibit variations consistent with such disabilities [3]. In the general population of children, the prevalence of disabilities is reported to be 4.4% [4]. According to UNICEF, as of November 2021, around 240 million children aged 2 to 17 worldwide live with disabilities [5]. In Iran, approximately 25,000 disabled children are born each year with severe physical and motor impairments [6].
The birth of a child with disabilities not only creates psychological pressure but also adversely affects the physical and mental health of parents [7]. Given that these children often require continuous assistance with daily activities, parents and family members frequently encounter substantial caregiving burdens [8, 9]. This burden manifests in numerous ways, including financial costs, limitations on social interactions, reduced engagement with community members, decreased time for other family members, and heightened discomfort or mental strain [10,11,12].
In the scientific literature, “caregiver burden” is defined as the negative objective and subjective outcomes resulting from caregiving, including physical, psychological, social, and economic problems [13]. Parents of children with disabilities tend to experience more health-related issues compared to families with healthy children due to the multifaceted pressures of caregiving [14,15,16]. Notably, research conducted by Park and colleagues highlighted that caregiver burden can significantly contribute to feelings of hopelessness and depression among parents of children with cerebral palsy [17].
Building on findings from previous studies, it is evident that parents of children with disabilities often turn to spirituality as a key coping mechanism. Spirituality, defined as “the search for or relationship with the sacred” [18], enables individuals to manage the significant stressors associated with their new caregiving responsibilities [19, 20]. Previous studies have shown that spiritual well-being is closely linked to parents’ ability to cope with the psychological stress associated with the caregiving burden [21, 22]. For example, a study by Omidi and colleagues revealed that improvements in spiritual well-being led to an overall enhancement in the well-being of mothers of disabled children [23]. Individuals with higher levels of spiritual well-being exhibit personal strength, and a stronger sense of control and social support [24].
Spiritual well-being is foundational to maintaining individual integrity and wholeness. Without it, other dimensions—biological, psychological, and social—cannot function optimally, and as a result, the highest possible quality of life becomes unattainable [25, 26]. In addition to spiritual well-being, social support has been proven to significantly impact overall life satisfaction and health outcomes [27,28,29]. Social support is defined as the emotional and psychological assistance that an individual receives or perceives from their family, friends, and community [25]. Both spiritual well-being and social support can act synergistically in bolstering individuals’ coping mechanisms [30, 31], with social support recognized as a crucial factor in improving quality of life, particularly for parents of children with disabilities [25].
A lack of social support can negatively affect both physical and mental well-being. Strong social support networks, especially those from family, act as vital moderators, helping individuals cope with and adapt to stressors, thereby enhancing satisfaction and improving health outcomes [32, 33]. Wright’s study [34] found that social support mitigates the negative effects of psychological stress, while research by Sur and colleagues [35], as well as Zhang and colleagues [36], emphasized the importance of social support in enhancing the quality of life and health outcomes for young people with physical disabilities.
Given that social support and spiritual health variables in the lives of parents of children with disabilities can not only foster feelings of peace and hope, but also enhance the parents’ ability to adapt and cope with life conditions, they play a significant role in improving their healthcare and well-being, this study was conducted to identify the relationship between caregiving burden in parents of children with disabilities and demographic characteristics, social support, and spiritual health in Iran. It is hypothesized that higher levels of perceived social support and spiritual well-being are associated with lower caregiving burden among parents of children with disabilities.
This descriptive, cross-sectional study aimed to examine spiritual well-being, social support, and caregiver burden among parents of children with intellectual and physical disabilities in Saveh, Iran. Based on a caregiver burden rate of P = 0.51 from similar studies [11, 13], with a margin of error (d = 0.04) and a 95% confidence interval, the required sample size was 246 participants. To account for potential non-response, a final sample of 260 parents was selected using systematic random sampling from a population of 1308, sourced from the Welfare Organization, physiotherapy centers, charitable associations, and comprehensive health centers.
A list of the population was prepared, and codes were assigned to each individual. The sampling interval was calculated by dividing the total population size (1308) by the desired sample size (260). A random starting point between 1 and 5 was then selected, after which participants were systematically chosen by adding the sampling interval to the initial random number. The sample size selected from each center consisted of 65 participants. Inclusion criteria for caregivers were: informed consent, no diagnosed chronic physical or mental illnesses (participants with a history of psychiatric medication use were excluded), cohabitation with the child, no financial compensation for caregiving, and at least six months of caregiving experience. Ethical approval was obtained from Saveh university in Iran, and written consent was collected.
The data collection tool in this study consisted of four sections:
Demographic questionnaire. This collected basic information on parents and caregiving context, including age, gender, occupation, marital status, insurance status, social activities, exercise, underlying diseases, caregiving duration, and type of child’s disability.
Caregiver burden index. This 24-item self-report measure [37] has five subscales: time-dependent (5 items), developmental (5 items), physical (4 items), social (5 items), and emotional and affective caregiver burden (5 items) [38]. “I have to watch my care receiver constantly”, “My social life has suffered” are among the questions. Responses are rated on a 4-point Likert scale from 1 to 5. Each of the 24 items can be answered using a Likert scale, where 1 indicates “not at all relevant” and 5 signifies “very relevant,” resulting in an overall score within the 24 to 120 range. Scores of 24–47 indicate mild caregiver burden, 48–71 indicating moderate caregiver burden, 72–95 indicating severe caregiver burden, and 96–120 indicating very severe caregiver burden. Abbasi et al. [39] reported a Cronbach’s alpha of 0.90 for the reliability of the caregiver burden index. In this study, the reliability of the same index was confirmed with a Cronbach’s alpha of 0.89.
Spiritual well-being scale. The 20-item Paloutzian & Ellison scale measures existential health (10 items, such as: “I feel that life is a positive experience”) and religious health (10 items, such as: “I believe that God loves me and cares about me”). Responses are rated on a 6-point Likert scale (from strongly disagree to strongly agree), with scores ranging from 1 to 120, with each subscale being separately scored (e.g., religious subscale: 1–60 and existential health subscale: 10–60). Spiritual well-being is then divided into three levels: low (20–40), moderate (41–99), and high (100–120). Cronbach’s alpha for this study was 0.85, consistent with earlier research by Karimy et al. [25], in which the alpha coefficient was 0.83.
Perceived social support questionnaire. This 12-item scale developed by Zimet et al. in 1988 measures perceived social support using 3 subscales (e.g., family, friends, and others) [40]. “I have friends whom I can share my happiness and sadness with”, “There is a special person who is around when I am in need” are among the items. These are scored on a 7-point Likert scale ranging from strongly disagree (score 1) to strongly agree (score 7). Total scores range from 12 to 84. Cronbach’s alpha coefficient was confirmed at 0.88 in this study.
Data were analyzed using SPSS version 22. Normality was confirmed via the Kolmogorov-Smirnov test. Descriptive statistics included means (standard deviations) for quantitative variables and frequencies (percentages) for qualitative variables. Independent t-tests, Pearson correlation, one-way ANOVA, post hoc analysis, and multiple linear regression were used to assess the relationships between demographic factors, spiritual well-being, social support, and caregiver burden. Missing data were handled using listwise deletion. Thus, when any of the variables were missing, the entire observation was excluded from the analysis. This was done using the SPSS software with the “missing = listwise” command.
Out of the 260 distributed questionnaires, 19 were excluded due to incomplete data, leaving 241 for the final analysis. The mean age of the participants was 49.8 ± 9.7 years. The majority (97.3%) were female, 224 participants (93%) were housewives, and 231 participants (95.6%) were married. A total of 224 caregivers (93%) had health insurance, and 146 participants (60.5%) reported limited social activities, such as visiting relatives and acquaintances. More than half (56%) did not engage in regular physical exercise, and 166 participants (69%) had underlying health conditions. In terms of caregiving duration, the most common duration was 21–30 years (28.6%), and less than 10 years (16.6%). Regarding the type of disability, the majority of individuals being cared for had physical disabilities (59%), while the remaining caregivers provided care for individuals with intellectual disabilities (see Table 1).
Our results indicated that as caregivers’ age and the number of years spent caregiving increased, their spiritual well-being improved, while their perceived social support decreased and their caregiving burden increased. Married caregivers reported higher levels of perceived social support and lower caregiving burden compared to divorced and widowed individuals. Additionally, caregivers who engaged in regular social activities and exercise experienced greater perceived social support and lower caregiving burden. Caregivers without insurance or those with underlying health conditions reported a higher caregiving burden(p < 0.05) (see Table 1).
148 caregivers (61.4%) experienced severe or very severe caregiving stress, while only 21 individuals (8.7%) reported mild caregiving stress (see Chart 1). The average caregiving burden was 86.1 ± 14.5, with the social, emotional, and time-dependent subscales reporting means and standard deviations of 20.5 ± 2.8, 18.6 ± 2.7, and 16.5 ± 5.2, respectively. Physical caregiving stress had the lowest mean score at 14.2 ± 3.1 (see Table 2).
The status of caregiving burden criteria for in-home caregivers
The mean score for spiritual well-being was 81.5 ± 7.0, with existential and religious spiritual well-being subscale means of 44.0 ± 4.9 and 37.5 ± 4.8, respectively (see Table 3). Regarding perceived social support, family support was rated highest, with a mean score of 17.4 ± 4.8. Chart 2 shows that 195 caregivers (81%) reported moderate spiritual well-being, and 35 (14.5%) reported high spiritual well-being.
The status of spiritual health for in-home caregivers
Correlations between caregiver burden, spiritual well-being, social support, and caregiver age (see Table 4) revealed a significant negative relationship between caregiver burden and both spiritual well-being (r = -0.625, p < 0.001) and social support (r = -0.647, p < 0.001). Age was positively correlated with caregiver burden (r = 0.319, p < 0.05) and spiritual well-being (r = 0.288, p < 0.05), and negatively correlated with social support (r = -0.255, p < 0.05) (see Table 4).
Multiple linear regression analysis identified social support (β = -0.36, p = 0.022) and spiritual well-being (β = -0.33, p = 0.044) as the most significant predictors of caregiving burden. Additionally, socio-demographic factors such as social activity, underlying health conditions, age, caregiving duration, insurance status, and marital status were significant predictors of caregiver burden. The model explained 29% of the variance in caregiver burden (Adjusted R² = 0.29) (see Table 5).
This study focused on the relationship between spiritual well-being, social support, and the caregiving burden of parents of children with disabilities. The results indicated that approximately 62% of family caregivers experience high levels of caregiver burden. In response to the first research question, our results indicate that caregiving burden is high in families with children with disabilities. This finding aligns with studies conducted by Rafati et al. [41], and Mirzaei et al. in Iran [42], Rodríguez et al. in Spain [43], and Clari et al. in Tanzania [44]. Caregiving can exert significant and enduring adverse effects on the physical, emotional, social, and financial well-being of family caregivers [45, 46]. Previous research has demonstrated a clear relationship between caregiving burden and mental health issues such as depression, anxiety, functional impairment, guilt, and resentment. Physical problems like hyperlipidemia, hyperglycemia, sleep disturbances, reduced immunity, and early transition to frailty syndrome have also been linked to caregiving burden [45, 47].
The psychological and social burden on family caregivers can even surpass that experienced by the individual they are providing care for, especially as the individual’s condition deteriorates [47, 48]. Consequences of high caregiving burden include reduced caregiving quality, diminished quality of life, and deterioration in both physical and mental health [47, 49]. Given the detrimental impacts of high caregiving stress on both the caregiver and the care recipient [50, 51], it is crucial to develop interventions that address mental health needs and alleviate caregiving burden.
Regarding the hypothesis about the relationship between spiritual well-being and caregiving burden, spiritual well-being emerged as the most significant predictor of caregiving burden, showing a meaningful negative correlation with caregiver burden. Consistent with these findings, health experts emphasize spirituality as a cost-effective and beneficial coping strategy for stress and depression in caregivers [52, 53]. Previous research highlights that spiritual well-being is a key variable in managing the challenges faced by caregivers [54], with individuals exhibiting higher levels of spiritual well-being reporting a more positive perception of their caregiving role and stronger connections with those they care for [55, 56]. Moreover, spiritual well-being offers protection against psychological and physiological illnesses for both the caregiver and care recipient [57,58,59]. Based on this and similar studies, spirituality can be an important resource for coping with caregiving challenges. Therefore, promoting spiritual well-being, particularly among informal and family caregivers, is recommended as an accessible and cost-effective method for improving the health of both the caregiver and the care recipient.
In relation to the hypothesis regarding the relationship between spiritual well-being and caregiving burden, this study’s findings revealed that perceived social support significantly reduces caregiving burden. This inverse relationship between social support and caregiving burden has been confirmed by earlier studies [60, 61]. To explain this topic, it can be said that individuals’ understanding of having social support when facing a stressful situation leads to an increase in their mental, physical, and psychological readiness regarding that issue or event, likely allowing them to have more time and resources for effective coping and to manage that situation better. As a result, they feel less stress and caregiving burden [62, 63]. Furthermore, research indicates that social support strengthens self-efficacy, increasing caregivers’ ability to adapt to challenges [64, 65].
Regarding socio-demographic variables and caregiving burden, this study demonstrated that increasing age, caregiving duration, lack of insurance, non-participation in social activities, widowhood or divorce, and underlying diseases contributed to increased caregiving burden. The link between aging and increased caregiving burden is likely due to declining physical and mental capabilities in older caregivers, as well as the emergence of chronic illnesses. Additionally, as caregivers age, the burden of caregiving often grows, exacerbated by years of caring for the patient. Consistent with these findings, Wolff et al. [66] found that longer caregiving durations lead caregivers to leave their jobs, reduce working hours, or accept lower-paying positions, contributing to an increased caregiving burden [67]. Other studies, such as those by Iavarone et al. [68], and Conde-Sala et al. [69], similarly confirm the relationship between increasing caregiver age and higher caregiving burden. Likewise, La et al. [70] demonstrated a correlation between longer caregiving durations and increased stress. These results highlight the need for policies aimed at reducing caregiving burdens, especially for older caregivers or those who have been in caregiving roles for extended periods.
The findings suggest that lacking of insurance, and not having support from an organization significantly contribute to a higher caregiving burden. The absence of insurance or organizational support further intensifies the financial strain, as caregivers are left to manage the additional patient care costs. These expenses combined with personal and family living costs create numerous challenges. Many caregivers reduce or quit their jobs to provide full-time care, while others are forced to work more to cover caregiving expenses. This increasing stress on caregivers ultimately raises their overall burden [71]. Consistent with our findings, Abbasi et al. [72] demonstrated an inverse relationship between family income and caregiving burden, while Pattanayak et al. [73] and Tsai et al. [74] found that caregivers with lower financial resources reported greater caregiving burdens.
Lack of participation in social activities was linked to an increased caregiving burden in this study, a finding that aligns with research showing that social connections protect against the negative effects of stressful or traumatic life events [75, 76]. Moreover, higher perceived social connection is positively related to mental health [1], self-esteem, and physical health [2]. This suggests that regular interaction with a supportive social group may serve as a buffer against the challenges of caregiving.
Finally, consistent with previous studies [77, 78], this study found that caregivers with underlying chronic diseases experienced a greater caregiving burden. This can be attributed to the continuous management and care required for their health, which gradually diminishes the caregiver’s physical and mental capacity, quality of life, and overall well-being, leading to an increased sense of burden. Moreover, poor general health, characterized by chronic physical and mental illnesses, reduces a caregiver’s ability to provide care and contributes to feelings of depression and burnout.
Among the limitations of this study, it is important to note that the cross-sectional nature of the study complicates the ability to establish causal relationships.
This study highlights the crucial role of spiritual well-being and social support in alleviating caregiving burden. The findings suggest that incorporating these variables into theoretical models of caregiving burden can not only enhance existing knowledge but also offer novel insights into the mechanisms that reduce caregiving burden and its negative consequences. Given the observed negative relationships between spiritual well-being, social support, and caregiving burden, as well as the detrimental effects of caregiving burden on caregivers’ health, it appears that interventions such as promoting spiritual self-care and establishing social support groups for family caregivers could be cost-effective, accessible, and beneficial significantly improving the health and well-being of this population. Considering that a substantial proportion of family caregivers experience high caregiving burdens, the findings of this study could provide a valuable foundation for designing cost-effective and impactful support interventions. Specifically, these results can inform health policymakers in developing appropriate programs to support family caregivers.
“The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.”
United Nations International Children’s Emergency Fund
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The researchers would like to express their gratitude to the participants and the staff of the study setting of Saveh, Iran.
No financial support was received for this research.
Mahmood Karimy
Present address: Social Determinants of Health Research Center, Saveh University of Medical Science, Saveh, Iran
Department of Nursing, Saveh University of Medical Science, Saveh, Iran
Mohammad Taher
Social Determinants of Health Research Center, Saveh University of Medical Science, Saveh, Iran
Nemat Azizi
Department of Internal Medicine, Saveh University of Medical Science, Saveh, Iran
Mohammadreza Rohani
Department of Public Health, Saveh University of Medical Science, Saveh, Iran
Parisa Hosseini Koukamari
Student Research Committee, Saveh University of Medical Science, Saveh, Iran
Fatemeh Rashidi
Menopause Andropause Research Center, Ahvaz Jundishapur University of Medical Sciences, Ahvaz, Iran
Marzieh Araban
ServeMinnesota, Minneapolis, USA
Anthony Coetzer-Liversage
Department of Psychology, University of Rhode Island, Kensington, RI, USA
Anthony Coetzer-Liversage
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“MK and MT conceptualized the study and wrote the manuscript and provided the final draft. FR, NA and MA helped with study design. MRR, PHK, MK, ACL helped study implementation. All authors helped with manuscript writing. ACL was the advisor of the study and critically reviewed the manuscript and made revisions. All the authors read and approved the final manuscript“.
Correspondence to Mahmood Karimy.
The study was approved by the Ethics Committee of Saveh University of Medical Sciences, Ahvaz, Iran (Registration No: IR.SAVEHUMS.REC.1400.010). Written informed consent obtained from participants.
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Taher, M., Azizi, N., Rohani, M. et al. Exploring the role of perceived social support, and spiritual well-being in predicting the family Caregiving burden among the parents of disabled children. BMC Public Health 25, 567 (2025). https://doi.org/10.1186/s12889-025-21654-2
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Received: 19 October 2024
Accepted: 28 January 2025
Published: 11 February 2025
DOI: https://doi.org/10.1186/s12889-025-21654-2
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Four years, four remarkable and unthinkable years of seismic change in college football, and nothing is sacred.
Not even Top 25 polls, which have become all but marginalized — save for a point of debate in the sport of arguing.
College football is now all about the top 12, or the 12 teams that make up the College Football Playoff. At least for 2025, before the inevitable 14-team format begins in 2026 with the advent of the new CFP contract.
Here’s you’re way-too-early CFP field for 2025 in seed order, ranked under the current format of highest-ranked four conference champions receiving first-round byes. Bookmark or download and preserve for future arguments.
Because that’s what this glorious sport is all about, anyway.
Need a break? Play the USA TODAY Daily Crossword Puzzle.
More:Bill Hancock is ‘excited’ for future after retiring as College Football Playoff director
What’s good: The experience of being there. We could talk about the talent returning on both sides of the ball, new defensive coordinator Jim Knowles and how Penn State’s roster matches up with anyone in college football.
But there’s intrinsic value in being there, doing that. Which, of course, Penn State hadn’t done in the playoff prior to last season. Think Michigan under Jim Harbaugh, which took two CFP trips to figure it out.
What’s not: Penn State’s history in big games under coach James Franklin. The ugly trend has to change. The Nittany Lions won two games in the playoff (SMU, Boise State) with everything on the line, but those weren’t heavyweights. Oregon (Sept.v27) and at Ohio State (Nov. 1) are season-defining games.
What’s good: Coach Kirby Smart saw the problem and addressed it. That, as much as anything, is a critical growth step to his 10th season in Athens. Georgia receivers dropped more than 30 passes last season, so Smart signed significant additions from the transfer portal: Noah Thomas (Texas A&M) and Zachariah Branch (Southern California). Smart says the staff (and locker room) believes in QB Gunner Stockton, and that Georgia can win big games with him.
What’s not: The regression in 2024. There’s empirical evidence all over the place. From the most sacks given up by any Smart team at Georgia, to a run game that finished 15th in the SEC, to a defense that gave up the most points per game (20.6) since Smart’s first season in 2016. Have constant distractions off the field begun to take their toll, or was last year an outlier?
REPORT CARD: College football season grades for all 134 teams
LOOKING AHEAD: Our way-too-early college football Top 25 for 2025
What’s good: Coach Dabo Swinney kept it from completely turning where it couldn’t be recovered — then convinced QB Cade Klubnik to return for one more run at the CFP. Bonus for 2025: Swinney finally added from the portal, and picked up impact edge Will Heldt (Purdue) and WR Tristan Smith (Southeast Missouri State).
What’s not: It took two seasons for offensive coordinator Garrett Riley to fix the offense. It can’t take that long for new defensive coordinator Tom Allen. There are elite pieces to build around (DE T.J. Parker, DT Peter Woods, LB Wade Woodaz), but there were too many times when the collective unit was out of position or took bad angles, or simply missed tackles.
What’s good: QB Avery Johnson. A white-knuckle ride in 2024 will even out in 2025. When he’s on, he’s as dangerous as any quarterback in college football. A Johnny Manziel-type of talent. He has to be more consistent, and K-State has to protect better.
What’s not: When does this team figure out how to win games it should? You don’t lose to Houston a week after beating rival Kansas, and don’t get blown away in the first half by Arizona State at home. The problem: it’s a pattern (Iowa State, 2023, 2021; Tulane, 2022; Texas, 2021), and overshadows and Big 12 championship and breakthrough wins under coach Chris Klieman. And derails CFP hopes.
UP AND DOWN: Winners and losers from college football signing day
What’s good: Finally winning it all. So many missed chances of the past mean nothing now. Now it’s a talented team playing loose and free and confident. A dangerous combination, considering the young talent all over the roster.
What’s not: A first-year starter at quarterback. Redshirt freshman Julian Sayin, a former five-star recruit, is next in line to take over. The last time a former five-star recruit was a first-year starter, Kyle McCord was run out of town after the 2023 season and a loss to Michigan.
What’s good: The buildout from coach Steve Sarkisian. Or the better way to say it: Texas truly is back. It’s plug and play now with elite recruitng classes (and a little help from the portal), and the expectations of winning it all are in full force with talented QB Arch Manning taking over.
What’s not: Slow starts and/or chasing points in big games. The regular-season loss to Georgia in 2024, Playoff losses to Washington (2023) and Ohio State (2024), and the loss to Oklahoma (2023).
What’s good: Coach Brian Kelly figured out you can’t win big in the SEC without a dominant defensive line. Key defensive line additions from the portal — Patrick Payton (Florida State), Jack Pyburn (Florida), Sydir Mitchell (Texas) — will quickly change things, and help the defense get off the field. Opponents converted 41 percent of third downs in 2024.
What’s not: Both starting tackles left early for the NFL. Will Campbell and Emery Jones Jr. were a strong backstop for QB Garrett Nussmeier, who constantly dealt with pressure from the middle three on the line. The Tigers will have four (and maybe five) new starters on the offensive line in 2025.
What’s good: The Ducks are crushing high school recruiting and player development. The fourth year under coach Dan Lanning begins with a new quarterback (former five-star recruit Dante Moore), and plenty of talent on offense for one of the game’s best offensive coordinators (Will Stein).
What’s not: New starters in important roles on defense. Lanning built his resume at Georgia as a defensive coordinator who rotated young players along the front seven, and by always looking forward. Those rotation players at Oregon will move into key roles this fall, playing alongside star pass rusher Matayo Uiagalelei.
More:From Utah State to Arkansas State and now to OU football, Nate Dreiling in a whirlwind
What’s good: John Mateer, the difference between an ugly first season in the SEC, and a CFP run in 2025. The transfer quarterback from Washington State was the No. 1 player in the transfer portal, and is a dynamic dual threat (44 total TDs). The Sooners couldn’t get first downs in 2024; they’ll score in bunches with Mateer and transfer wideout Isaiah Stegna (Arkansas), and high-volume Championship Subdivision transfer receivers Keontez Lewis and Javonnie Gibson.
What’s not: The schedule is brutal. If we go by the 2024 model, it will be very difficult for a three-loss, non-Power Four conference champion to reach the CFP. Sooners get Mississippi and LSU in Norman, but have road trips to Alabama, Tennessee and South Carolina, and the Texas game in Dallas. Oklahoma also plays Michigan in Norman.
What’s good: Quietly, confidently, coach Kalani Sitake has built a program with staying power. The Cougars return a majority of the group that won 11 games, and lost two by a combined nine points. Wins in either of those one-possession losses (Kansas, Arizona State), would’ve moved BYU into the Big 12 championship game with a CFP spot on the line.
What’s not: Turnovers. BYU had four giveaways in the two losses, including three interceptions from QB Jake Retzlaff — whose TD/INT ratio in games against Big 12 teams (13/9) was a problem. That must be fixed, especially with a fortunate schedule in 2025 that doesn’t include Kansas State and Arizona State.
What’s good: After years of trying to recapture the plan and process at Wisconsin, Illini coach Bret Bielema is as close as he has been in nine years at Arkansas and Illinois. The Illini run with power, and all five starters return on the offense line. QB Luke Altmyer protects the ball, and stresses defenses with his willing toughness in the quarterback run game. The defense, too, is loaded.
What’s not: Taking the next step. Illinois won 10 games last season, and hasn’t had back-to-back double digit win seasons in the history of the program. The Illini hasn’t had back-to-back winning seasons since 2010-11. Needless to say, it’s going to take 10 wins to reach the CFP.
What’s good: The culture. Star running back Ashton Jeanty was a once in a program player, but just a piece of the most consistent Group of Five program in college football. Coach Spencer Danielson’s quick rebuild will carry to 2025, with QB Maddox Madsen returning with four starting offensive linemen — including Kage Casey, a potential first round NFL draft pick in 2026.
What’s not: The same thing every season: one loss in the underrated Mountain West Conference, and the road to the CFP gets significantly tougher. There just isn’t much wiggle room for the one automatic qualifier spot. Boise State also plays at Notre Dame.
Matt Hayes is the senior national college football writer for USA TODAY Sports Network. Follow him on X at @MattHayesCFB.

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Dispel, a vendor of secure remote access solutions for industrial control systems (ICS) and operational technology (OT), and Nozomi Networks, announced Tuesday at the S4x25 OT cybersecurity conference an expanded technology alliance and certified technology integration between the Nozomi Networks Platform and the Dispel Zero Trust Engine.
Together, Dispel and Nozomi Networks empower organizations with unified OT asset visibility and secure remote access, delivering unparalleled security, operational efficiency, and control across their environments.
“As IT and OT systems become increasingly interconnected, securing critical infrastructure is more essential than ever,” said Ethan Schmertzler, co-CEO of Dispel. “Our partnership with Nozomi Networks helps customers get the most out of their security investments, simplifying OT oversight, and maximizing utilization.”
Industrial organizations in sectors like manufacturing, electric utilities, water/wastewater, mining, and oil & gas are navigating the challenges of digital transformation, including the need for complete visibility and remote access across facilities. This integration between the Nozomi Networks Platform and the Dispel Zero Trust Engine addresses this challenge by synchronizing OT asset inventory with secure remote access capabilities.
Administrators can identify all OT, IIoT, and ICS assets, such as PLCs, HMIs, and servers, enable secure remote access to these devices, and receive real-time alerts for unauthorized connections to mitigate risks proactively.
With this integration, organizations can:
“We couldn’t be more pleased to innovate together with Dispel, enabling users to leverage network and security insights generated by Nozomi Network’s Platform within the Dispel Zero Trust Engine,” said Jacob Chapman, Director of BD & Alliances of Nozomi Networks. This integrated functionality accelerates time to value while enhancing both operational outcomes and security outcomes for Plant Managers and CISOs.”
The integrated functionality between Dispel and Nozomi Networks technologies marks a significant step forward in enabling organizations to secure their critical infrastructure while optimizing operations and advancing their digital transformation initiatives.
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While most advisors successfully adapted to remote work and saw their AUM rise during the pandemic, nearly 3,000 took PPP loans.
August 30, 2021
For financial advisors, and the ecosystem of support platforms that surround them, the pandemic has been a challenging time but also a profitable one.
The challenging part—the “adapting-to-remote-work” story line—has been beaten to death. At this point, we get it: Advisors have successfully transitioned to a remote work environment.   
Another story line—the one about how the pandemic has been a boon to advisors—is less common. Firms that charge clients a percentage of assets under management (which means most advisory firms) have seen their revenue increase dramatically since March 15, 2020, the day government officials called an end to large-scale gatherings (and for our purposes the beginning of the COVID-19 pandemic.)
From the close of the market on that day, to Aug. 24, 2021, the Standard and Poor’s 500 Index has returned 88%. Vanguard’s Balanced Index Fund, which most closely resembles a 60% equity, 40% bond portfolio, is up over 50% on a price basis.
Granted this is an imprecise proxy, but a back-of-the-envelope calculation suggests an investment advisor adhering strictly to a 60/40 portfolio and managing $250 million at the beginning of the pandemic—earning $2.5 million in revenue, based on an average 1% AUM fee—theoretically is now managing $375 million and earning $3.7 million, without effort. Who else has earned that pay raise? Where is the crisis?
Related:FINRA Examining Certain Reps Who Took PPP Loans
This isn’t a criticism; most financial advisors do more for their clients than tend to their investment portfolios. And in March 2020, the market took a significant dip, and no one knew exactly where it was going to go.
Still, advisors preach to clients to take the long view. Now we have some idea of how many firms didn’t take their own advice. According to a study, Fraud and Abuse in the Paycheck Protection Program? Evidence from Investment Advisory Firms by William Beggs of the University of San Diego and Thuong Harvison of the University of Arizona, 2,999 investment advisory firms—or roughly one in four registered firms—took Paycheck Protection Program loans, a federally subsidized program meant to help small businesses hurt by the pandemic.
Those businesses took $590 million from the program, according to the researchers, or almost $200,000 each, on average. To get the loans forgiven, recipients needed only to show they did not reduce head count during the pandemic—few did, so free money to them. To make matters worse, these researchers estimate some 6% of the total amount was fraudulent—an overinflated request from the program beyond what was required to sustain the firms. Call me a cynic, but that number seems low.
No one will criticize firms for doing what they needed to do early in the pandemic to ensure their continuity. But for those that benefited from the program: Consider sharing some of the largesse with your clients. If they had not kept their assets—and their confidence—with you when things looked bleak, you might have actually needed the government-backed welfare you received.

David Armstrong
Editor-In-Chief
 
 
David Armstrong
Executive Director, Content and User Engagement at WealthManagement.com, Informa
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