Philanthropists unite in new grant program to support more Australians into work
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A collection of Australian leading philanthropic organisations have created a pioneering grant program to support social enterprises in accelerating growth and impact, while creating job opportunities for Australians facing barriers to employment.
The Work Integration Social Enterprise (WISE) Grant will provide up to $4 million to WISE to help them strengthen and increase their employment outcomes for people who face challenges getting into the workforce.
Partners of the grant program include Westpac Foundation, Lord Mayor’s Charitable Foundation (LMCF), Paul Ramsay Foundation (PRF), Macquarie Group Foundation, English Family Foundation, Vincent Fairfax Family Foundation, Minderoo Foundation and MinterEllison.
“Philanthropy has a long history of providing funding for social enterprises as they strive for sustainability and impact. We understand the unique challenges and opportunities that enterprises face and can work with them on their journey to sustainability,” said LMCF CEO, Dr Catherine Brown.
By working together and pooling grant funding, the partners are seeking to help create a more accessible and streamlined approach to supporting earlier stage WISE.
The WISE Grant will be managed by LMCF with the support of a steering committee of the founders and will be seeded with $3.4 million in initial grant capital.
“The WISE Grant collaboration is a Giving Account within the Lord Mayor’s Charitable Foundation, which is the initiative host,” said Brown.
“This new grant program will make it easier for earlier stage enterprises to access grant funding and for philanthropy to pool its resources, leading to more jobs and impact for people and communities facing disadvantage.”
Research indicates that direct impact expenses for WISE – such as wages of support staff, additional training, equipment for accessibility needs and necessary transport for employees – can account for up to 30% of the enterprise’s total running costs.[1]
According to Westpac Foundation CEO Amy Lyden, the WISE Grant would help address these impact costs as WISE build their business models as well as help reduce the challenges for WISE in navigating this grant support.
“We understand these challenges and have accordingly focused the grant program on supporting core operating costs of social enterprises to reinforce their financial sustainability and social impact,” said Amy.
“Earlier stage social enterprises often find it challenging to navigate grant programs and grant funding options, each with different applications criteria, conditions and reporting requirements.”
A recent Social Enterprise Australia study revealed that for every $1 million in turnover, social enterprises create nine jobs, which is nine times more than industries like construction.
“Research shows more than half of approximately 12,000 social enterprises in Australia (58.5%) are focused on employment[3], generating award wage jobs and employment pathways for Australians facing barriers to mainstream employment,” said Josephine Khalil, PRF Employment portfolio Lead.
Khalil hihglighted that the WISE Grant’s approach was an exciting initiative that better allows grassroots social enterprises to manage the costs associated with training and employing job seekers.
“Despite their effectiveness at creating sustainable and meaningful work, WISE face unique challenges to grow due to the significant costs of working with marginalised job seekers, together with the lack of sustainable grant funding for the outcomes they deliver, not helped by the time and resources required to apply for philanthropic grant funding and investment.
While there is growing momentum and support for WISE, such as the recently announced funding for social enterprises outlined in the Federal Budget, the grant program will provide a much-needed avenue for WISE to deliver these wrap around support services.
“The WISE Grant pools our knowledge as philanthropic grant funders to better meet the particular funding and support needs of social enterprises, ultimately reinforcing our common goal of ensuring all people have access to economic dignity and social mobility.”
The two-year grants range in value from approximately $200,000 to $500,000, depending on the stage of the social enterprise.
Anna Le Masurier, ANZ Regional Head of the Macquarie Group Foundation, said the collaboration strengthens philanthropic networks and their shared knowledge base to better meet the funding needs of Australian social enterprises.
“The WISE Grant is an excellent development in Australia’s philanthropic landscape, and we hope it will further demonstrate the impact of collaborative pooled funding,” said Anna.
Earlier stage social enterprises seeking to scale their work are encouraged to register an expression of interest for the new grant program, which was co-designed by the charitable foundations and an advisory group of social enterprise leaders, with MinterEllison providing invaluable pro bono legal advice on structuring the grant program.
“This work will inform future best practice approaches for philanthropic networks, advancing our shared goal of creating more job opportunities for Australians facing barriers to employment.”
Expressions of interest for WISE Grants are open from 3-21 July 2023. These will be assessed and shortlisted against the grant criteria, with organisations proceeding to a full application by invitation only.
For more information, visit: www.lmcf.org.au/WISEgrant]www.lmcf.org.au/WISEgrant
Menchie Khairuddin is a writer Deputy Content Manager at Akolade and content producer for Third Sector News. She is passionate about social affairs specifically in mixed, multicultural heritage and not-for-profit organisations.
