May 16th, 2017
Philanthropy Australia has welcomed initiatives intended to grow impact investing announced in the Australian Government’s 2017 Budget.
The Australian Government has committed $20.2 million over 10 years from 2017-18 to encourage the development of an impact investment market in Australia. The two initiatives provide:
Social Impact Investment Readiness Fund
Philanthropy Australia is particularly pleased with the proposal to establish a Social Impact Investment Readiness Fund.
There is growing demand for impact investment opportunities within philanthropy as philanthropic organisations seek to use their assets as well as their granting as a way to achieve social impact.
However there aren’t enough investment ready deals available for philanthropy to invest in – that’s why capacity building funding to assist organisations to become ‘impact investment ready’ is essential to grow the pipeline of impact investment opportunities.
Capacity building funding is used to obtain business, financial, legal and other advice and support in order to get an organisation to a stage where it can seek impact investment.
It is for this reason that the key recommendation in Philanthropy Australia’s submission earlier this year, in response to the Australian Treasury’s Social Impact Investing Discussion Paper, focused on providing funding for such capacity building.
It is pleasing that our advocacy, together with the advocacy of other stakeholders who have also raised this issue, has been effective.
Philanthropy Australia has already had discussions with Australian Government officials since the Budget announcement regarding the design of the Social Impact Investment Readiness Fund, and is looking forward to working with other stakeholders and the Australian Government as part of this process.
If Members have any questions about this announcement, they can contact our Advocacy & Insight Manager, Krystian Seibert, on (03) 9662 9299 or firstname.lastname@example.org.
In conversation with Nicole Richards at the Philanthropy Meets Parliament Summit, Daniel Lee shared his insights on topics including the role of philanthropy as a driver of systems change which addresses root causes of social challenges, the relationship between philanthropy and government and what the new political environment in the United States means for philanthropy.
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