Two new government initiatives have been announced which create an independent pool of finance for the nonprofit sector, encouraging philanthropists and other funders to help share the burden of risk for some innovative nonprofit projects. Rochelle Nolan reports.
Two new government initiatives have been announced which create an independent pool of finance for the nonprofit sector, encouraging philanthropists and other funders to help share the burden of risk for some innovative nonprofit projects. Rochelle Nolan reports.
The government announced two initiatives in July to support social enterprises, taking a completely new government approach to providing financial support for the start-up and expansion of nonprofit work in Australia.
The Social Enterprise Development and Investment Fund (SEDIF) will see the government provide up to $20 million in one-off grants to qualified social investment funds, which can demonstrate the ability to match every dollar of government funding.
The corporate and philanthropic sectors are being invited to help inform and shape the design and structure of the fund.
Parliamentary secretary for social inclusion and the voluntary sector, Senator Ursula Stephens, says SEDIF will build new partnerships between the finance, social and corporate sectors.
“This independent financing mechanism will help nonprofit enterprises start-up and expand,” says Senator Stephens. “Social enterprise is about helping share risk and decision-making in the early stages of partnerships and investment. This comes at a time when access to investment funding for nonprofits is challenging and limited.”
The second initiative, the Professional Partnership Project, matches corporate business assistance to social enterprises that aim to help disadvantaged Australians find training and jobs.
Four key professional services firms – Deloitte, Ernst and Young, KPMG and PricewaterhouseCoopers – are providing pro bono business expertise and support to up to 30 social enterprises funded under round one of the government’s $650 million jobs fund.
Senator Stephens says the two initiatives represent an important step in developing long-term partnerships between government and the private sector to support highly disadvantaged Australians.
“Many projects with social outcomes are nifty, nimble and edgy – and risky. Many organisations don’t have a risk profile that allows traditional lending institutions to lend to them. In providing $20 million through the SEDIF which will be matched by other investors, the government is helping get dynamic social enterprises happening here in Australia for the first time.”
“There are some wonderful things happening on the ground, but many run on the smell of an oily rag! This fund will create an independent financing mechanism for the start up and expansion of such enterprises which will give philanthropists and other funders a sense of confidence.”
For further information, please visit www.socialinclusion.gov.au
