National Australia Bank (NAB) and Philanthropy Australia have announced a $500,000 grant fund to help not-for-profits establish and grow social enterprises.
NAB will contribute $250,000 and Philanthropy Australia will match this through contributions from its trust and foundation members, creating a $500,000 grants fund, the largest in Australia, aimed at growing the number of social enterprises managed by not-for-profits.
The fund is part of a 12-month partnership between NAB and Philanthropy Australia that will also include a series of educational activities designed to grow the number of trusts and foundations using impact investment as an investment strategy.
Jodi Geddes, General Manager Corporate Responsibility at NAB said the partnership will 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. 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,” said Jodi Geddes.
“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’s CEO, Sarah Davies believes the partnership with NAB will 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 are delighted that NAB has agreed to partner with us on this initiative, we truly believe this terrific initiative is going to create a really positive jump-shift in the way funders and not-for-profits collaborate and partner with each other. 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,” Sarah Davies said.
The first of a series of educational events for trusts and foundations is taking place in Perth today.