Key terms

The legal framework that determines the rules and regulations for how an organisation will operate. For social enterprises, there are various types available, each with pros and cons

City or local-level authorities that have a specific influence on community-based social enterprises and localised initiatives.

When an organisation's expenses exceed its income.

Summarised accounting data (balance sheet, cash flow, and income statement) prepared for a charity's management and Board.

A senior executive responsible for the day-to-day operations of an organisation, often reporting to the CEO or board of directors.

Brokers that link social enterprises with customers to facilitate and grow trade. They may use a variety of platforms and means of intermediation, and specialise in different customer segments including retail, business-to-business, public sector procurement, or outcome purchasers.

The way an organisation communicates with stakeholders, concluding promotions, advertising, building brand loyalty, and market research.

The different methods used to make products and services available and accessible to customers, such as wholesalers, retail agents, or catalogues.

The process of gathering information to test market demand and tailor goods and services to customer needs, using surveys, interviews, focus groups, and competitor research.

A legal document prepared in the formation and registration process of an organisation.

An experienced and trusted advisor who provides guidance, support, and encouragement. They can also act as a role model, sounding board, and source of constructive feedback.

The established set of attitudes, beliefs, and assumptions held by an individual or group that shape their perspective, decision-making, and actions. Mindsets influence how people interpret and respond to situations, and they can be positive, negative, or neutral.

Mission fidelity means staying true to the core purpose or goals of an organisation, especially its commitment to creating positive impact. It’s about consistently focusing on the mission, even as the organisation grows or faces challenges, ensuring that actions and decisions align with its intended impact.

A concise explanation of an organisation's reason for existence, describing what it does and for whom.

Mob” is a word in common use throughout the country that Aboriginal people use to refer to their families, their clan group, members of their communities and to Aboriginal people in.

Monitoring and Evaluation (M&E) is a systematic process of collecting and analysing data to assess the effectiveness and impact of any given intervention. M&E is often based on an intervention’s impact model. The role of learning is increasingly being elevated in M&E practice (often changing the acronym to MEL, with the ‘L’ being for ‘learning’) to reflect the idea that M&E should be developmental alongside enabling accountability.

Collaborative projects and alliances that bring together multiple stakeholders around shared interests, learning inquiries, and to address specific social, environmental, or organisational challenges.

A member of an organisation's board of directors who is not part of the executive management team, providing independent oversight and strategic guidance.

The regulator of Indigenous corporations registered under the CATSI Act. It supports and regulates corporations to ensure they comply with the law.

The Open Learning community is a space where knowledge, stories, skills and experience from other SEDI learning communities, and from the wider social enterprise community, are shared through online events and forums, open to all. Social Enterprise Australia will commission and co-produce online events and forums of shared value and interest to the Sector. Key attributes of the Open Learning community include: -Engaging diverse sector perspectives including those that are under-represented in the sector. -Sharing knowledge and practice in various interactive formats (eg. online workshops, storycircles, panel discussions, curious conversations, Q&As, and other forums) -Growing connections, practices and leadership that enable people and the planet to thrive. -Being open to all to engage, explore, and learn. -Guided by key topics and themes identified by the Sector.

The framework that defines the hierarchy and flow of activities within an organisation, including roles, responsibilities, and communication channels.

The short-term, medium-term, and long-term effects or changes that result from an organisation's activities, such as improvements in participants' knowledge, skills, or well-being.

The direct, tangible products or services resulting from an organisation's activities, such as the number of workshops delivered or people served.

The costs of running an organisation, including fixed and variable expenses.

Payment by Outcomes (PBO) is a form of investing to help address long-standing social issues. PBO trials are designed to test the effectiveness of these investing contracts. How it works The government has committed $15.7 million from 2019-20 to 2026-27 to co-develop, implement and evaluate 3 PBO Trials in the social services sector. PBO is a form of social impact investing (SII) contract, between a funder and service provider. In the PBO Trials, the contract funder is the government. In the PBO Trial contracts, service providers are paid part of the contract fees upfront and part on achievement of agreed outcomes. This means the service provider takes on more of the risk for achieving the outcomes than under a traditional grant arrangement. The objectives of the PBO Trials are to inform: -the appropriateness and efficiency of PBO contracts -how to improve the design and use of robust outcome measurement -whether PBO contracts are suitable funding tools in social services -whether the policy focus areas tested are suitable for PBO contracts. The learnings will inform future potential funding arrangements and community sector reform. The 3 PBO Trials were co-developed and are being implemented and evaluated with service provider partners.

A funding model where an organisation receives payment based on the measurable results or outcomes they achieve, rather than just the activities or services they provide. This approach ties funding to the demonstrable impact of an intervention and relies on mutually agreed measurement frameworks between organisations delivering outcomes and those who want to purchase them.

National or regional associations that represent and advocate for the interests of social enterprises and the broader sector. Peak bodies may be governed by their members and also provide networking activities, capacity building, and events.

These communities invite people to engage around topics of social enterprise interest and impact. Participants help and support each other through building relationships, nurturing ideas, and sharing learning. These communities create connection opportunities for individuals with different levels of experience in the social enterprise space including those who may not see themselves as experienced practitioners but have learnings to share which can inform Sector development and growth. Key attributes of Peer Learning and Support communities are that they: -Focus on places or themes of social enterprise interest and/or impact. -Convene meet-ups (online) to connect and share experiences. -Explore and exchange ideas. -Organise knowledge-sharing events. -Share updates on planned and delivered activities. -Monitor how active, responsive, and valuable the community is to participants.

People and Planet First is a verification and a global collective. There are millions of enterprises around the world choosing to prioritise people and the planet over profit maximisation. The full scale of this movement can be difficult to see because it emerged bottom-up. Different terminology is used in different networks, regions, and sectors. People and Planet First verification bridges these divides. It includes all enterprises that meet 5 standards.

The ongoing process of setting goals, monitoring progress, providing feedback, and making adjustments to ensure an organisation achieves its desired outcomes effectively and efficiently.

A strategic planning tool used to evaluate the external factors that can influence an organisation, project, or decision. PESTLE is an acronym that stands for Political, Economic, Social, Technological, Legal, and Environmental factors. By examining these areas, organisations can gain a comprehensive understanding of the opportunities and challenges they face and develop more informed strategies.

Foundations, trusts, and individual donors that provide grants and donations to support social causes.

Conducting small-scale, practical tests to gather feedback and make necessary adjustments before a full-scale launch of a project or enterprise.

A short presentation designed to inform an audience about a business and inspire a specific action, such as investment or sales.

Strategies that focus on improving the well-being of people in a specific geographic location by addressing the unique needs, assets, and challenges of that community. These approaches involve working closely with local residents, organisations, and stakeholders to develop tailored solutions that build on the community's strengths and respond to its particular context.

Official documents that outline how the organisation will act, such as Health and Safety, Safeguarding, and Equal Opportunities policies.

A person who regularly applies their skills, knowledge, and expertise in a particular field or profession to carry out specific tasks, provide services, or solve problems.

A common legal structure for for-profit businesses in Australia. It has limited liability for its shareholders and cannot raise funds from the public.

Firms and consultants that offer specialised support to social enterprises, such as legal advice, accounting, marketing, and impact measurement.

The money remaining after all expenses, including owner compensation, have been paid.

A financial statement showing income earned and expenses incurred over a year, revealing the profit (surplus) or loss (deficit) for that period.

Social enterprises reinvest the majority of their profits back into their social or environmental mission, rather than distributing them to shareholders or owners.

A type of charitable organisation that is instituted to provide direct relief to a disadvantaged section of the public. PBIs are eligible for certain tax concessions.

A company structure that allows the company to raise funds from the public by issuing shares. It can be listed on a stock exchange.

Investments that typically involve the provision of capital that is structured as a loan, but with some equity-like characteristics, such as flexible repayment terms, performance-based returns, or the option to convert the loan into ownership shares. The goal of quasi-equity is to provide growth capital to businesses or projects that may not qualify for traditional loans or equity investments, while balancing the risks and rewards for both the investor and the recipient. Quasi-equity can be a risk capital alternative to equity financing for non-profits.

The minimum number of people required to be present at a meeting before it can officially begin and decisions can be made, as specified in the governing document.

The ongoing process of building respectful relationships between Indigenous and non-Indigenous Australians, through acknowledging the past, addressing present inequalities, and working together to create a more just and equitable society. Reconciliation is the work of non-Indigenous Australians as it was the process of colonisation that perpetrated harm and inequalities that now need to be reconciled.

A strategic document that provides a framework for organisations to support the national reconciliation movement. It includes practical actions that drive an organisation's contribution to reconciliation both internally and in the communities in which it operates.

Vocational training entities that provide applied learning and skills development programs for social enterprise practitioners and stakeholders.

A body corporate formed or incorporated under the law of a state or territory that carries on business outside its place of origin. It must be registered under the Corporations Act 2001 (Cth) to operate interstate.