A morning tea for participating advisory firms in the EAX
On 23 September, the Office of Social Impact Investment hosted a morning tea for advisory firms that have donated over 3,000 hours to support social sector organisations through the Expert Advice Exchange (EAX).
NSW Treasurer, Gladys Berejiklian, took the opportunity to thank attendees for their ongoing and generous support of the EAX. In her introductory remarks, the Treasurer said she was encouraged by the private sector's support of social sector organisations to achieve social impact. She also reiterated the NSW Government's commitment to social impact investment and other innovative ways to partner with the private and social sectors to support the most vulnerable in NSW.
Trevor Danos AM, the chair of the EAX's independent scoping panel, spoke about the results of the first round and next steps for the EAX.
Round 1 showed strong demand for services offered through the EAX
Overall, the first round showed there is strong demand for the advice and support that participating advisory firms offer. In fact, applicants requested far more support than could be requested of the (then) 27 participating firms at such an early stage of the initiative. Key statistics from the first round include:
- Of 92 applications, 40 were assessed as eligible to receive support under the EAX.
- Almost 60% of applicants requested advice in four or more areas.
- More than 70% of eligible applicants deliver social and disability services.
- Eligible applicants were as likely to deliver services in metropolitan areas as regional areas.
- Top 3 areas of advice requested were business case development, cost-benefit analysis, and general business planning.
Lessons learned from round 1 were applied to round 2
As the EAX is a pilot, the Office is taking a performance improvement approach to refining the initiative as we go. We learned a lot in round 1 and made some changes to both eligibility and the application process for round 2.
Given the strong demand in round 1, the Office revisited eligibility criteria for round 2 to have a stronger focus on outcomes and sustainability. Through the EAX, we want to target client- and service-focused organisations that have an interest in and ability to diversify and scale their business model. These are key aspects of social impact investment and align with our commitment to grow this sector.
The application process for round 2 was also improved with an electronic application form accessible through the Knowledge Hub. In their form, applicants were asked to limit and rank their advice needs to improve the referrals to participating advisory firms.
The Office intends to fully evaluate the EAX and will contact participating advisory firms and social sector organisations in the coming months so future rounds incorporate more improvements.
Other sources of advice are also being developed
To use limited EAX resources as efficiently as possible, the Office is also working with advisory firms to support social sector organisations in ways other than one-on-one advice.
For example, EY will be holding workshops later in the year for successful applicants to build organisational capability. One of these workshops will be specifically for disability service providers transitioning to the NDIS, as there was strong demand from advice and support from this sector.
Some advisory firms are developing introductory advice packages on topics like:
- Intellectual property.
- Converting from an incorporated association to a company limited by guarantee.
- Governance.
These packages will be available through the Knowledge Hub soon.
More advisory firms have joined the EAX
Since the first round, the number of participating advisory firms has increased to 36. Others have expressed their interest in being part of the EAX and we hope that the pool of advisory hours will continue to grow.
The second round closed on 20 September with 87 responses. They are currently being assessed. We hope to let applicants know whether they were successful in November.