Key terms

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

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 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.

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.

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.

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.

Academic units and think tanks that conduct studies and critical analysis on social enterprise trends, practices, and impacts.

Funds an organisation has available to freely spend, excluding restricted income, endowment funds, and tangible fixed assets held for the organisation's own use.

Funds, often provided through grants, that can only be used for a specific purpose or project and cannot be used for other purposes.

The total income generated by an organisation, before expenses are deducted.

The possibility of something bad or undesirable happening. It refers to the uncertainty that an event or action may lead to a loss, harm, or negative consequence. In a business or organisational context, risks can come from various sources, such as financial, operational, legal, or reputational factors.

The process of identifying, assessing, and prioritising potential risks, followed by planning and implementing strategies to manage or mitigate their impact. This involves developing contingency plans, allocating resources, and monitoring ongoing risks.

A document that plays a key role in risk management, helping track issues and address problems as they arise.

The process of increasing the reach and impact of a social enterprise, which may involve expanding geographically, serving more beneficiaries, developing new products or services, or influencing policy and legislation.

A distinct part or subset of a larger system, economy, or society, typically characterised by a specific type of activity, product, or service. The ‘social enterprise sector’ describes the overarching field of social enterprise, including social enterprise themselves and the range of other actors who engage and interact with them.

The right of Indigenous peoples to freely determine their political status and pursue their economic, social, and cultural development, as enshrined in the United Nations Declaration on the Rights of Indigenous Peoples.

The period a Director/Trustee serves on a board, typically three years with a maximum of nine years.

A tool for mapping the skills and expertise to identify strengths and gaps. Can be used for staff, executive, and governing groups.

The process of measuring, analysing, and reporting an organisation's social, environmental, and economic performance to stakeholders.

An independent evaluation of an organisation's social, environmental, and ethical performance, based on feedback from stakeholders and assessment against recognized standards.

Financial resources available to support the startup, growth, and sustainability of social enterprises, including grants, donations, impact investments, loans, and earned income from various sources. The type of funding that any given social enterprise will be able to access will depend on its legal structure.

A social enterprise is a business that puts people and planet first. They trade like any other business, but exist specifically to make the world a better place. Social enterprises can adopt a range of legal structures, identities, and play multiple roles, across different domains, in the ecosystem.

The overarching field of social enterprise, including social enterprise themselves and the range of other actors who engage and interact with them.

An individual who develops and implements innovative solutions to social, cultural, or environmental problems, using entrepreneurial principles and business strategies to create sustainable, positive change.

A way of investing money to create positive social or environmental impact, sometimes with the expectation of also generating a financial return. This can include investments in social enterprises, non-profits, or projects that aim to address social or environmental challenges. Can be understood as an overarching term that includes both grants and impact investment.