Key terms

A hypothesis that articulates how an organisation's activities will contribute to its intended impact, by mapping the causal links between inputs, outputs, and short-term, medium-term, and long-term effects. A theory of change should also outline the assumptions that the hypothesis is based on. The term ‘theory of change’ is often used interchangeably with ‘impact model’.

A global effort to promote and support businesses that prioritise social and environmental objectives alongside financial sustainability. It encompasses a diverse range of actors who work together to create an enabling sector for social enterprises to thrive. The movement aims to transform traditional business models and economic systems to be more equitable, and sustainable, addressing pressing societal challenges. It advocates for greater recognition and resources for social enterprises as key drivers of positive social and environmental impact.

The Indigenous peoples who have a traditional and ongoing connection to a particular area of land or water, and who have responsibilities and rights as custodians of that Country.

A framework that measures an organisation's performance and impact in three areas: social, environmental, and financial, recognising the interconnectedness of these dimensions in creating sustainable value.

An individual responsible for overseeing the management and administration of a charity or trust, ensuring that it operates effectively and ethically in pursuit of its mission.

Understorey exists to grow participation and capability in the Australian social enterprise sector. It is a digital commons: an online resource available to all, and shaped by all who choose to take part. Understorey is a place to learn and exchange about social enterprise. It’s also a place to navigate the sector. It does this to help social enterprises thrive and contribute to a better future. It is part of the Social Enterprise Development Initiative (SEDI) – an initiative of the Australian Government.

An organisation without a separate legal identity from the owner, who bears full responsibility and liability for the organisation's actions.

Funds that can be used for any purpose to further an organisation's objectives.

The process by which an organisation generates social, environmental, and economic benefits for its stakeholders, through its activities, products, or services.

A statement that explains the unique benefits or value a product or service offers to customers, and why it’s better than alternatives. It answers the question: "Why should a customer choose this over others?"

Expenses that may change from month to month depending on the organisation's activities, such as venue hire for workshops.

A concise, aspirational description of what an organisation aims to achieve in the long-term, reflecting its core values and purpose.

An individual who offers their time, skills, and services to an organisation without receiving financial compensation, often driven by a desire to support the organisation's mission or cause.

A ceremony performed by Traditional Owners to welcome visitors to their ancestral lands, recognising their ongoing connection to Country and cultural practices.

Social enterprises that provide employment and pathways to employment for people who experience structural barriers to mainstream workforce participation.