Final update for 2024

Final update for 2024

Thanks for your support in 2024

Welcome to our final update for 2024. It’s been another impactful year for us at IIA.

In June, we launched the Social Enterprise Development Initiative (SEDI) capability building grants program, funded by the Department of Social Services. Since then, we’ve received more than 120 applications from social enterprises, with more than 25% of those coming from Frist Nations and regional social enterprises.

With UNSW’s Centre for Social Impact, we’re undertaking the Benchmarking Impact market sizing survey to gather vital data on the trends, size and performance of Australia’s impact investing market, and we invite your contribution.

Our work administering the Endowments for Impact Challenge (the open tender competition where philanthropic foundations are seeking advice to invest $170 million) will continue into 2025, with finalists announced in February.

We have continued our advocacy and education work with people right across the country – from our participation in the Federal Government’s Investor Roundtable working groups, to our new webinar series with Melbourne University, to a range of sector speaking events, to our new monthly series of stories in On Impact (which you can read here and here).

The team and I appreciate your continued support of our efforts and the valuable role you play in driving meaningful change through impact investment. We extend our season’s greetings to you and your families and look forward to working with you in 2025.

Best wishes
David

David Hetherington
CEO, Impact Investing Australia

Participate in our impact market sizing survey

We invite you to contribute to our Benchmarking Impact market sizing survey, designed to collect data on the asset allocations, attitudes and performance of Australian impact investors.

The survey results will inform the fourth Benchmarking Impact Report, which will provide updated insights into the size, trends, and performance of the Australian impact investing market, addressing the sector’s need for transparent and consistent data.

The survey, developed in partnership with the Centre for Social Impact at UNSW, builds on previous editions, including the inaugural report published by IIA in 2016 and subsequent updates by RIAA (2018–2020), which detailed preferences, practices, and intentions of Australian investors and advisers. This edition will further explore market growth and the evolving landscape of impact investment.

We value your input and encourage you to take part by completing the survey here: Benchmarking Impact market sizing survey. It takes approximately 30 minutes, and we request one response per organisation.

Key details:

  • Deadline: 7 February 2025 (may be extended based on feedback).
  • Confidentiality: Data will be anonymised, de-identified and securely stored by UNSW, following a rigorous ethics approval.
  • Learn more about the participation criteria.

Thank you for helping drive meaningful change.

A woman uses her laptop, text overlay: Help shape the future of Impact Investing in Australia

Endowments for Impact Challenge update

We’re pleased to report there’s been great interest in the Endowments for Impact Challenge – the inaugural open tender competition that aims to transform philanthropic investment in Australia. Investment advisors who have registered for the Challenge need to lodge their proposals by 5pm on Wednesday (18 December).

An expert panel and the participating trusts and foundations will review all proposals, with finalists set to be announced in February 2025. Finalists will then be invited to present at a town hall event during the Impact Investment Summit in Sydney on 27 March 2025. The winners will be announced at the event, which will be attended by key decision-makers from participating trusts and foundations, as well as stakeholders from the philanthropic sector, non-profit organisations, and a diverse group of asset holders committed to responsible investment.

The trusts and foundations participating in the Challenge include the Besen Family Foundation, Dusseldorp Forum, Inner North Community Foundation, Northern Rivers Community Foundation, Oranges & Sardines Foundation, and Reichstein Foundation.

Endowments for Impact Challange logo

For more information, visit endowmentsforimpactchallenge.com

Expert panel announced

The Endowments for Impact Challenge has announced the expert panel members, who will assess proposals and assist in selecting the winners. They are:

Dame Caroline Mason CBE –CEO of the Esmée Fairbairn Foundation, a leading UK independent funder focused on improving the natural world, fostering fairer futures and nurturing confident communities. With a background spanning innovative product development in financial services and pioneering roles in social investment, Dame Caroline co-founded Investing for Good and has held leadership positions at Better Society Capital and Charity Bank.

Abhilash Mudaliar – Interim CEO of 100 Story Building, with 20 years of experience in international development, impact investing, and philanthropy. As Managing Director of Grey Area Partners, Abhilash advises high-impact organisations, building on leadership roles at the Paul Ramsay Foundation, the Global Impact Investing Network, and the World Bank.

Craig North – Executive Director of Firesticks, advancing Indigenous-led land management projects across Australia. With over 17 years in Indigenous economic development, Craig previously founded Indigenous Impact Pty Ltd and was the first Indigenous CEO of the Indigenous Land and Sea Corporation’s commercial agribusiness subsidiary.

INTERNATIONAL NEWS

Challenges in scaling outcomes in government and strategies for success

Our colleagues at GSG Impact have just released a report examining the use of outcomes partnerships by governments to improve public services and achieve better value for money. Despite their proven effectiveness, widespread adoption has been hindered by institutional, political and perception challenges. Thereport synthesises shared insights and best practices for fostering results-based mechanisms within impact economies.

Through interviews with experts and an extensive literature review, the report identifies seven key challenges:

  1. annual budget cycles
  2. rigid contracting procedures
  3. limited expertise
  4. data management issues
  5. political support struggles
  6. political instability
  7. perceptions about public-private cooperation.

To address these, it offers strategic recommendations to create enabling environments for governments to adopt outcomes-based approaches. Key recommendations include focusing on systemic change rather than cost efficiencies, aligning partnerships with political and regulatory contexts, and fostering ecosystem readiness through capacity building, improved data governance, and knowledge sharing among stakeholders.

IIA was pleased to help inform the study.

Read the report

GSG Impact brochure cover for 'SHIFTING GEARS' report

Impact investment wholesalers: Design insights from the GSG Impact Partnership

Another report from GSG Impact showcases the growing role of wholesalers in building sustainable markets globally. With 19 wholesalers active or in development, the report reveals a 280% increase in impact investment vehicles over five years. It provides insights on designing and managing these wholesalers, focusing on strategies, funding models, and global case studies to build resilient and equitable markets.

Read the report

GSG Impact brochure cover for 'Impact Investmet Wholesalers and Fund of Funds' report