NAB and Philanthropy Australia Launch NFP Social Enterprise Fund
Thursday, 26th May 2016 at 3:08 pm
Donor peak body, Philanthropy Australia and the National Australia Bank have launched a half a million dollar grant fund to help Not for Profits establish and grow social enterprises.
NAB is to contribute $250,000 and Philanthropy Australia said it would match this amount through contributions from its trust and foundation members, creating a $500,000 grants fund, aimed at growing the number of social enterprises managed by Not for Profits – making it one of the largest funds of its kind in Australia.
General manager of corporate responsibility at NAB Jodi Geddes said the partnership would stimulate much needed new funding streams for Not for Profits and expand the way in which trusts and foundations have historically engaged with the sector.
“Increased pressure on funding and disruption to traditional funding models are putting pressure on the Not for Profit sector to develop new income streams,” Geddes said.
“We believe that impact investing has a vital role to play in addressing these challenges but it will require the entire sector, including trusts and foundations, to come on the journey.
“We want to help create opportunities for trusts and foundations to make investments in the sector that provide a return. This return can then be reinvested in other social enterprises allowing Trusts and Foundations to have a vastly greater impact than that which can be achieved by way of a pure philanthropic grant-based model.”
Philanthropy Australia CEO Sarah Davies said the partnership with NAB would be a catalyst for real and long-term change in the role of philanthropic organisations and how they support innovative and sustainable business models for Not for Profit organisations.
“We’ve had really strong interest from a number of other parties to join NAB and co-fund the project and hope to announce those additional partners soon,” Davies said.
Philanthropy Australia said the funding grants were expected to be available by the end of 2016 when Not for Profits would be able to apply for capacity building funds of up to $50,000 to assist them to be impact ready.
The new fund is part of a 12-month partnership that will also include a series of educational activities designed to increase the number of trusts and foundations using impact investment as an investment strategy.