Social Enterprise Grants Program
Guidelines 2015
Contents
Social Enterprise Grants Program
Supporting our community
About grants and sponsorships
Enterprise Melbourne
About Social Enterprise Grants
Background
Definitions
Target communities
Grant objectives
Sub-objectives
Grant amounts
Grant Eligibility
Who is eligible to apply?
Who is not eligible to apply?
Grant Categories
Start-up
Expansion
The Application
How do I apply?
Submitting your application
The Claimable Items
What can I claim?
Social enterprise start-up and expansion
Capital improvement
Website development
IT equipment
Specialised equipment and software
Other
Training expenses
What is not included?
The Assessment Process
What is the assessment process?
Lobbying
Terms and Conditions
If successful, when will I receive payment?
Ethical Considerations
Ethical charter
For more information, contact City of Melbourne
Online
Telephone
In person
In writing
Fax
Social Enterprise Grants Program
Supporting our community
The City of Melbourne offers a wide range of grants and sponsorship opportunities to support our community. The funding enables successful applicant to deliver quality programs, events, products and services significant to Melbourne, creating social and economic returns for the city.
About grants and sponsorships
These guidelines relate to the social enterprise grants program. There are also more than 20 other grant and sponsorship types including arts and community services, Active Melbourne, business events and the event partnership program. Applicants in any category can only apply to one grant program in any given year. If a project has already been funded or is being funded by one of the programs, you will not be eligible to apply to another grant program for that project.
Applicants are advised to carefully review the guidelines provided here and, if necessary, check the guidelines of other grant programs to decide which is the best grant program for their circumstances. For more information about our other grants and sponsorship programs go to the Enterprise Melbourne website[1].
Please note that the grants program is only open to businesses located in or intending to locate in theCity of Melbourne including the Melbourne central business district as well as Fishermans Bend, Docklands, North and West Melbourne, Parkville, East Melbourne and parts of Carlton, South Yarra and Southbank. It does not cover the Melbourne metropolitan area. Prospective applicants are encouraged to review the City of Melbourne municipality map[2].
Enterprise Melbourne
The City of Melbourne’s Enterprise Melbourne website provides information and services to support businesses of all shapes and sizes to start-up, grow and prosper in the city. Visit the website for permits, fee payments, the latest local law and health regulations, networking opportunities and business support programs.
About Social Enterprise Grants
The grants program aims to encourage the establishment and expansion of social enterprises that enhance the City of Melbourne’s reputation for business vitality, diversity and inclusiveness. It is envisaged that these enterprises will contribute further to the city’s thriving economy and community.
Background
In July 2010, the Future Melbourne Committee endorsed the Social Enterprise Strategy to support the development of the emerging social enterprise sector.
The Social Enterprise Strategy aims to build the capacity of partner organisations to contribute to social enterprise in the city. Its vision was to enhanced social enterprise to assist people to move from dependence and welfare to independence and enterprise. Social enterprises have to provide a range of social and cultural benefits in addition to their contribution to economic prosperity.
The Council Plan 2013-17 expresses the shared vision of the Council in this four-year term. It is the Council’s promise to the community, describing its goals, the outcomes it wants to see in four years, how it will achieve these, and how it will measure progress towards them.
Social Enterprise Grants support Council Plan Goal 3: A prosperous city:
Melbourne will have a global focus with first-rate infrastructure and services, a highly skilled workforce and affordable business accommodation. It will share knowledge, mentor emerging businesses, collaborate and attract global investment and visitors.
Definitions
For the purpose of these grants the following definitions are used.
A social enterprise is defined as an organisation that combines trade with a social purpose, where that social purpose is a defining part of the business. Applicants may include:
- social enterprises
- charities
- not-for profit, and
- other philanthropic organisations.
Applications will be accepted from both not-for-profit and for profit businesses.
Target communities
At the forefront of their activities these organisations will have the social purpose of employing or providing self-employment opportunities for the following target communities;
- people arriving under the humanitarian immigration program
- former refugees
- people who are homeless
- Aboriginal and Torres Strait Islander people
- long-term unemployed persons with a disability
- persons with a mental illness.
Grant objectives
- Encourage the establishment and expansion ofsustainable social enterprises that enhance theCity of Melbourne’s reputation for business vitality, diversity and inclusiveness.
- Support social enterprises that demonstrate a point-of-difference, solid market potential and a sound business model, including long-term financial viability.
- Create significant, sustainable, supported employment or self-employment opportunities’ within the City of Melbourne municipality for people within the target communities listed above.
- Increase the level of business and social investment in the City of Melbourne municipality, which will contribute to a thriving and competitive economic and community environment within the city.
- Applications will be accepted from both not-for-profit and for profit businesses.
Sub-objectives
- Support innovative and emerging sectors.
- Support the development of a vibrant socialenterprise sector.
Grant amounts
Social enterprise grants are up to $25,000. These grants may include a combination of financial support and business mentoring as well as providing funding for training. The City of Melbourne reserves the right not to award any grants if no suitable, eligible applications are received.
Furthermore, we reserve the right to make grants of smaller amounts or fund business mentoring only.
The purpose of these grants is to contribute to building the capacity of partner organisations to contribute to social enterprise, by accelerating the establishment and expansion of successful trading businesses.
The grants do not provide recurrent or ongoing funding and are not intended to subsidise uneconomic enterprises.
Grant Eligibility
Who is eligible to apply?
An applicant must:
- have a registered Australian Business Number (ABN) or intend to register
- be located or commit to locate within the City of Melbourne municipality
- have evidence of an appropriate legal structure such as a sole trader or an Australia registered company
- be a business cooperative, partnership, charity, social enterprise, incorporated association or philanthropic organisation
- pursue a social purpose that includes providingsustainable, supported employment or self-employmentopportunities within the City of Melbourne municipality for target communities
- be able to demonstrate benefits to the City of Melbourne, beyond the support of the individual organisation.
Applications will be accepted from not-for-profit organisations and for-profit businesses. However, at the forefront of their activities will be the social purpose of providing relevant employment or self-employment opportunities in a sustainable and supportive manner.
Who is not eligible to apply?
- government departments or agencies
- unincorporated associations
- subsidiaries of larger companies
- franchises or branches of foreign companies
- intermediaries or consultants applying on behalf of others.
Grant Categories
Grants of up to $25,000 are available. Two categories within the social enterprise grants are offered:
- social enterprise start-up, and
- social enterprise expansion
Start-up
Start-up grants are designed to assist social enterprises in accelerating the establishment of their business. Under this category, applicants will be expected to have the majority of their funding from other sources, in addition to the social enterprise grant.
In addition to the grant eligibility criteria, applicants for start-up grants must:
- be able to demonstrate why and how their business concept will be successful, including showing a strong point-of-difference
- be able to demonstrate long-term financial viability as evidenced by a basic business plan including basic projected financial statements for the first two years of operation
- be able to commence the business activity within
- 12 months following approval of the grant
- be able to clearly state the enterprise’s particular
- social purpose
- demonstrate how the enterprise will achieve thestated social purpose and be able to report onprogress towards that social purpose
- explain how the new enterprise will support people
- in employment or self-employment who wereformerly refugees, are homeless, Aboriginal andTorres Strait Islander, long-term unemployedor who have a disability
- outline the ongoing and long-term practicality ofachieving the stated social purpose, for example:how long does the applicant plan to operatethe business?
- does the applicant intend for employees totransition to other forms of employment and,if so, how and when?
A social enterprise may receive only one start-up grant.
Expansion
Expansion grants are designed to assist with the growth of existing social enterprises.
Expansion is defined as:
- an existing social enterprise operating in the City of Melbourne municipality that plans to introduce a new or additional activity, product or service
or
- an existing social enterprise that intends to relocate to or within the municipality as part of its expansion.
In addition to the grant application criteria listed above, applicants for social enterprise expansion grants must:
- be able to demonstrate why and how the business expansion will be successful, including showing a strong point-of-difference
- have a level of business success, supported by financial documentation
- be able to undertake the planned expansion within 12 months following approval of the grant
- be able to clearly state the enterprise’s particular social purpose to date and demonstrate a level of success in pursuing that purpose
- demonstrate how the expansion will achieve the stated social purpose and be able to report on progress towards that social purpose
- explain how the expanded enterprise will support people in employment or self-employment from target communities listed above
- demonstrate the ongoing and long-term practicality of achieving the stated social purpose, for example:
- how long does the applicant plan to operate the business?
- does the applicant intend for employees to transition to other forms of employment and, if so, how and when?
A social enterprise may receive only one expansion grant.
Applicants will be expected to have other sources of funding, in addition to the social enterprise grants.
The Application
A series of individual grant category-specific lunchtime briefing sessions will be held during the application period to allow prospective applicants to seek more information about the program and seek advice.
To make a booking or for more information visit the social enterprise grants webpage[3].
These sessions are not compulsory but highly recommended.
How do I apply?
Simply follow these steps.
- Call the City of Melbourne on 9658 9658 or visit the social enterprise grants webpage3.
- Attend the general information session.
- Book and attend a category-specific lunchtimebriefing session to discuss your proposed projectwith the City of Melbourne.
- Complete the appropriate online application form,financial templates and schedule.
- Attach all relevant supporting documents.
Submitting your application
Submit your application online to the City ofMelbourne. Your application must be receivedby 5pm on the nominated closing date for eachfunding round.
You will not be able to access or submit yourapplication online after this date.
You will receive an email confirming receipt of your application.
The Claimable Items
What can I claim?
The individual types of items which can be claimed under each grant category are outlined below. Grants will only be approved for expenditure items which have yet to be incurred.
Social enterprise start-up and expansion
The start-up and expansion grants support the following categories of expenditure directly related to establishing a social enterprise or as part of a social enterprise expansion process:
Capital improvement
- the costs associated with the fit-out of business premises.
Website development
- the costs associated with the development orenhancement of a business website.
IT equipment
- the costs associated with purchasing IT equipment for the operation of the new business or as part of the business expansion activity.
Specialised equipment and software
- the costs associated with purchasing specialized equipment and software that is directly related to the operation of the new business or as part of the business expansion activity.
Other
• expenditure items which are not listed above but can be demonstrated as significantly crucial for the start-up or expansion of a specialised business.
Training expenses
The City of Melbourne may make a pre-agreed contribution towards training expenses including as follows:
Start-up
Training costs associated with establishing the enterprise such as courses and programs in:
- establishing a small business
- bookkeeping
- business and financial planning, sales, marketing, planning and implementation
- managing cash flow.
Expansion
Training costs associated with expanding theenterprise such as courses and programs in:
- managing cash flow
- business and financial planning, sales, marketing planning and implementation.
What is not included?
General operational expenses, including rent, utilities, wages, marketing, sales development, networking or personal expenses.
The Assessment Process
What is the assessment process?
Each application will be assessed against the social enterprise grant program objectives and assessment criteria.
A report assessing the enterprise’s viability will be prepared for consideration by a review panel. The three-person review panel will comprise an experienced business operator, an experienced community development worker and a person with expertise relevant to social enterprise.
The review panel will consider conforming applications on a competitive and merit basis, and make recommendations for approval. In addition, a report assessing the social enterprise’s role and capacity to support relevant persons in sustainable employment will be prepared by the City of Melbourne. These recommendations will be combined and then considered by Melbourne City Council to determine final grant funding.
Applicants will be notified of the assessment outcome around three months after the closing date of the application.
All decisions are final. There will no review or appeal process. However, unsuccessful applicants are eligible to re-apply.
Lobbying
Canvassing or lobbying councillors, employees of the City of Melbourne or assessment panel membersin relation to any grant or sponsorship application is prohibited during the application process. No further consideration will be given to an application submitted by an applicant who canvasses or lobbies a councillor, City of Melbourne employee or assessment panel member in relation to their application.
Terms and Conditions
Grant recipients will be required to enter into a 12 month agreement with the City of Melbourne and meet agreed performance measures in relation to the anticipated financial, business and social outcomes as identified in the application. Grant recipients are also required to have the appropriate business and other insurances.
Grant recipients will be required to use the business mentoring services of the Small Business Mentoring Service or coaching services from a consultancy agreed by the City of Melbourne to assist in ensuring the business and financial success of the enterprise. The business mentoring will be provided in addition to any other pre-agreed training and the City of Melbourne will reimburse the full cost of the service.
Grant recipients will be required to meet with City of Melbourne representatives at the six month mark during the 12 month agreement to discuss progress towards business, financial and social outcomes. Grant recipients will be required to acknowledge the City of Melbourne’s support at their business premises and may be asked to participate in promotionalactivities as requested by the City of Melbourne.
If successful, when will I receive payment?
Successful applicants will receive an initial payment of 50 per cent of their grant after both parties have signed the agreement. The balance of the grant will be paid at the completion of the 12 month period of the agreement following successful completion of a review of progress towards pre-agreed performance measures and sighting of relevant invoices and receipts for all approved expenditure items.
Ethical Considerations
Preference will be given to applications that demonstrate sustainable business practices and business practices in line with the ethical charter.
Ethical charter
The City of Melbourne seeks to support organisations that will contribute to one or more of the following:
- production of high quality and properly presented products and services
- development of locally-based ventures
- development of appropriate technological systems
- improvement of wasteful or polluting practices
- development of sustainable land use and food production
- preservation of endangered eco-systems
- human happiness, dignity and education
- the dignity and well-being of animals.
The City of Melbourne will avoid supporting organisations that unnecessarily:
- pollute land, air or water
- destroy or waste non-recurring resources
- extract, create, produce, manufacture or market materials, products, goods or services which have a harmful effect on humans, non-human animals or the environment
- market, promote or advertise products in a misleading, deceitful or exploitative manner.
- create markets by the promotion or advertising of unwanted products or services
- acquire land or commodities primarily for the purpose of speculative gain
- create, encourage or perpetuate militarism or engage in the manufacture of armaments
- entice people into financial over-commitment
- exploit people through the payment of low wages or the provision of poor working conditions
- discriminate by way of race, religion or sex in employment, marketing or advertising practices
- contribute to the inhibition of human rights generally.
This Ethical Charter is based on the Australian Ethical Charter[4] (1989), Australian Ethical Investment Ltd.