Applying for a SEDI Grant

SEDI Grants help social enterprises, including trading Indigenous owned or controlled organisations with a direct social benefit, grow their business, scale their impact and further their missions of creating positive social change. The grants, valued at up to $120,000 each, support social enterprises to be more effective and efficient in demonstrating and increasing social impact for the people and communities they exist to support.

The initiative supports social enterprises across all states and territories that are delivering services to improve social and economic outcomes for individuals, families and communities experiencing disadvantage in a range of social outcome areas, including: communities, employment, education and First Nations Australians. View full list of the DSS outcome areas.

Funded by the Australian Government’s Department of Social Services the grants are to be used to purchase business and impact capability building services from Capability Providers, such as financial services, evaluation and impact measurement, business consulting and legal advice.

Who can apply?

Eligible SEDI Grant applicants:

• Are a social enterprise (see definition below) or a trading Indigenous owned or controlled organisation with a direct social benefit
• Have a direct impact in one or more of the approved Department of Social Services (DSS) outcome areas (see Impact outcome areas below)
• Currently provide direct benefit to those experiencing entrenched disadvantage in Australia
• Are an Australian organisation
• Have beneficiaries who primarily reside in Australia
• Have a trading revenue that exceeds $50,000 per year
• May be early stage but have progressed beyond the start-up phase
• Are seeking to scale impact (now or in the future) in one or more of the approved outcome areas to address entrenched disadvantage in Australia

Definition: A social enterprise is a business that puts people and planet first. It trades like any other business but exists specifically to make the world a better place. A social enterprise seeks to solve a social or environmental problem. It can be a for-profit or non-profit organisation, or a charity that trades.

Notes:

• For the SEDI Grants program ‘trading revenue’ is income from the sale of goods or services to different customers in a repeatable way. It does not include donations, philanthropic or government grant funding for the delivery of social services. If trading revenue (as defined above) makes up less than 50% of all revenue, the organisation’s capability building plan must include activities that aim to substantially grow the trade element, to encourage sustainability. If a high  proportion of trading revenue comes from one customer, the organisation’s capability building plan must include steps to attract more customers. The amount of funds awarded for a SEDI Grant depends on (1) the capability building services a social enterprise requires, (2) the associated provider/intermediary costs and (3) the social enterprise’s internal costs necessary to purchase capability building services. A grant will not be valued at more than the social enterprise’s annual turnover. The maximum value of a SEDI Grant is $120,000.
• This is a competitive grants process. Meeting all the eligibility criteria is not a guarantee of being awarded a SEDI Grant.
• An eligible applicant must currently provide direct benefit to those experiencing entrenched disadvantage in Australia. An organisation is not eligible to apply if the only benefit being provided is indirect (e.g. your organisation supports social enterprises that are providing the direct benefit).

Impact outcome areas

To be eligible for a SEDI Grant, social enterprises must work in one or more of the DSS approved outcome areas.

What will a SEDI Grant fund?

Grant funds are to be used to purchase business and capability building services that will help a social enterprise grow its impact. These services are to be provided by Capability Providers and must be completed within six months of a SEDI Grant being awarded.

The SEDI Grant application form includes a list of capability building services that social enterprises can choose from. This list of services is flexible and will change as the SEDI Grants Team learns more about what social enterprises need. Social enterprises can include other services (not included in the list) that will help grow their impact.

The types of services a social enterprise selects is dependent on its needs, but could include:

• Advice on systems implementation
• IT/HR/Inventory/Accounting
• Advice on financial management and reporting
• Advice on marketing strategy/materials preparation
• Advice on social procurement strategies
• Investor grant pitch development
• Introductions to impact investors or philanthropists
• Operations advice to assist in scaling operations
• Other capability building services to assist with scaling impact
• Internal costs necessary to purchase capability building services (to a maximum of 20% of total grant funding)

After receiving a SEDI Grant, it will be mandatory for the social enterprise to establish the following two documents during the project timeline (if not already in place):

• An Impact Measurement Framework which defines the intended impacts of the Enterprise’s activities;
• Defines the theory of change through which impact will be created; and
• Establishes valid and reliable indicators that will be used to measure and report on impact.

A Business Plan which outlines the strategic objectives of the Enterprise;

• Defines the operational goals of the Enterprise;
• Draws out the Enterprise’s financial plans; and
• Includes a risk assessment and approach.

Note: Grant funding can be used by the social enterprise to have its capability building needs assessed by a provider/intermediary, after a SEDI Grant has been awarded. The list of capability building services, the chosen provider/s (intermediary/ies) and allocated budget the social enterprise identifies in its grant application can be changed, subject to approval by the SEDI Grants Team. No extra funding will be provided.

What will not be funded by a SEDI Grant?

SEDI Grants are to fund specific capability building services (see above). Grant funds cannot be used for general expenses, including:

1. Property: The Enterprise must not acquire or lease assets with SEDI Grant funds. This includes:
   • purchasing property, buildings or land
   • renovating or improving physical spaces
   • acquiring equipment or vehicles
2. Operating costs not necessary for the purchase of capability building services
   • salaries and wages for staff
   • IT systems, including upgrades and maintenance
   • rent or lease payments for offices or facility spaces
   • general utilities and office supplies
     (Note: Grant funds can be used to pay for internal costs necessary to purchase capability building services, to a maximum of 20% of total grant funding)
3. Indirect costs
   • administrative overheads unrelated to the capability building services funded by a SEDI Grant
4. Ineligible activities
   • activities or programs not directly related to the capability building services funded by a SEDI Grant
5. International travel costs not specifically approved by IIA

Timeframe of planning to scale

Enterprises should be able to clearly articulate their plans to scale and the length of time it will take. Plans to scale impact will go beyond the SEDI Grants timeline, therefore, enterprises should be able to demonstrate a pragmatic link between their capability building plans and the timeframe in creating and achieving the impact.

Link between capability plans and scaling impact

A capability plan should directly contribute to the enterprise’s plans to scale and grow impact. Clearly express your enterprise’s plans to scale impact, and what the expected impact will be. For example, the development of a social impact framework will define the intended impacts of the enterprise’s activities, its theory of change through which impact will be created and establish valid and reliable indicators.

Assessment criteria

The decision to award a SEDI Grant is made by the SEDI Grants Expert Panel. Panel decisions are informed following the assessment of the grant application and an interview with the applicant.

The Panel will consider a range of factors in determining whether to award a SEDI Grant, including:

• Does the social enterprise meet the grant eligibility? (See above: Who can apply?)
• Will the capability building services that the social enterprise has proposed (which make up its Capability Plan) effectively and efficiently enable the social enterprise to scale its impact?
• What is the likely additional impact of the enterprise’s scaling plans on people living in Australia experiencing entrenched disadvantage, compared to them not receiving the grant funds?
• Will the enterprise be able to manage the grant project and associated finances?
• Will the grant assist in developing the social enterprise and social impact investing ecosystems?

Applicants are notified of the outcome by IIA’s SEDI Grants Team.