Funding is the conversation that dominates social enterprise circles in Australia. You can have a brilliant model, a clear theory of change, and a community that needs what you’re offering---but without the right capital at the right time, none of it matters.

The picture is more varied than the standard “apply for grants and hope” narrative suggests.

Government Grants: Still the Backbone

Government grants remain the primary funding source for most early-stage social enterprises. The major programs worth knowing about:

SEDIF (Social Enterprise Development and Investment Funds) provides loans and grants through intermediaries like Social Enterprise Finance Australia and Foresters Community Finance. SEDIF tends to favour established social enterprises with demonstrated revenue---if you’re pre-revenue, this isn’t your first stop.

State-level grants vary significantly. Victoria has historically been most supportive through the Social Enterprise Strategy and LaunchVic’s impact stream. NSW runs periodic grant rounds, though they’re less predictable. Queensland’s support has been growing through the Department of Employment and Small Business.

Indigenous-specific funding through bodies like Indigenous Business Australia provides capital for First Nations-led social enterprises, often with more flexible terms than mainstream programs.

The honest assessment: grants are essential but slow, competitive, and compliance-heavy. Most take three to six months from application to funding. Budget for that overhead.

Impact Investment: Growing but Selective

Impact investment in Australia has grown substantially---the Responsible Investment Association Australasia reports the market is now in the tens of billions. But most capital flows to large-scale opportunities in affordable housing, renewable energy, and sustainable agriculture. Small and mid-sized social enterprises still struggle to access it directly.

The intermediaries that bridge this gap include Social Traders (whose certification opens doors to corporate and government buyers), Impact Investment Group and Australian Impact Investments (fund managers with impact mandates), and community development finance institutions like SEFA, Many Rivers, and Foresters that provide smaller-scale capital in the $50,000 to $500,000 range.

The honest assessment: impact investment works best for social enterprises with a proven revenue model that need growth capital. If you’re still figuring out your business model, focus on grants and earned revenue first.

Philanthropy and Newer Models

Philanthropic funding has evolved beyond traditional grant-making. Several foundations now offer program-related investments---loans at below-market rates where social impact is the primary purpose. The Paul Ramsay Foundation and Myer Foundation have both explored these in Australia.

Venture philanthropy, where foundations provide multi-year funding combined with capacity-building support, is gaining traction. Social Ventures Australia’s approach comes closest to this model locally.

Crowdfunding through platforms like StartSomeGood works for organisations with compelling stories and strong community engagement, though don’t underestimate the effort---a successful campaign is essentially a full-time job for four to six weeks.

Social Procurement: The Quiet Opportunity

This is probably the most underrated funding pathway in Australia right now. State and federal governments, along with major corporates, are increasingly directing procurement spend toward social enterprises.

The Victorian Social Procurement Framework requires government buyers to consider social outcomes in purchasing decisions. Federal procurement rules include provisions for social value. Major construction firms, banks, and consulting firms are setting social procurement targets.

If your social enterprise provides goods or services that institutional buyers need---cleaning, catering, IT support, landscaping---there’s a growing market looking for suppliers like you. Getting procurement-ready requires certification (Social Traders is most recognised), meeting compliance standards, and having capacity to deliver at scale. But for viable commercial offerings, procurement provides steady revenue that grants never will.

Earned Revenue: The Most Overlooked Source

The social enterprises that survive long-term almost always have a strong earned-revenue component. Whether it’s selling products, delivering fee-for-service programs, or operating commercial activities that fund social programs, revenue independence reduces dependence on funding that may not be available next year.

This doesn’t mean every social enterprise should be revenue-focused from day one. Some models---particularly those serving communities that can’t pay market rates---will always need subsidy. But wherever possible, building earned revenue into your model gives you stability and bargaining power.

The organisations I’ve seen thrive aim for a blended funding model: earned revenue, government grants, and occasional philanthropic or impact investment capital. No single source dominates, which means no single funder’s priorities distort the mission.

Where to Start

If you’re navigating all of this, my practical advice:

Be honest about your stage. Pre-revenue organisations should focus on grants and philanthropic support. Revenue-generating organisations should pursue blended models with procurement and impact investment. Established organisations can explore more sophisticated structures.

Build relationships before you need money. Every funding source here favours organisations with existing relationships. Attend industry events through Social Enterprise Australia and Social Traders. Meet program officers. Join peer networks.

Invest in measurement. Every funder---whether a grant program, impact investor, or foundation---wants to know their money produced results. The social enterprises that struggle most with funding are often those that can’t clearly articulate and evidence their impact.

The funding landscape for Australian social enterprises is more diverse than it’s ever been. The challenge isn’t a lack of options---it’s knowing which ones suit your stage, your model, and your mission.