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Mom is in mid 90s and has dementia.

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For me its when I realized that i dont have money to have a 24/7 help, that she need. its painful and terrible decision, I wish I have resourses to have just a paid nurse.
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When you start to ask, "should they be in a nursing home?" that is the time to consider the pros and cons seriously. Often the point will come when the family can no longer manage the care, or the care is taking a huge toll on their health or mental stability.

The other catalyst is the parent's well-being is deteriorating and the family realizes the parent needs a level of care they cannot provide, or believes that the advantages of 24 hour care in a setting designed for the situation would be better for the parent.

Often it is both. Family needs to reduce the stress on them, and parent might benefit from the structure of a care center.
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In addition to what jjariz said, when the caregiving is emotionally too much for the family. Caregiver burn out. Family dynamics and limited resources. When their needs are greater than the family can provide. When the home is not suitable for the parent (bathrooms too small to navigate, stairs etc.)

There are a variety of reasons other than safety that can lead to a person going to a nursing home.
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Rusti, usually when you realize it can take a village to care for the parent. And you are ready to crash and burn from exhaustion.
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When they are no longer safe at home.
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