 | What is your funding model to support SVA’s operations? |
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There are five components:
- Funding from social investors who fund SVA’s operations directly (e.g. not directed to SVA’s portfolio of venture partners).
- Cost recovery fees from clients for the services of SVA Consulting to our portfolio of venture partners and external non-profit organisations.
- Project-specific funding that supports strategic initiatives across the non-profit sector in our Partnerships area.
- A 20 per cent contribution from social investors funding our portfolio of venture partners to support the extensive capacity-building services Venture Development provides to the portfolio.
- Contributions from the management fee of the Third Link Growth Fund, an initiative of Chris Cuffe's separate entity Third Link Investment Management Pty Ltd. A long term objective is that the Third Link Growth Fund and SVA Future Trust will provide funding to underwrite SVA operations.
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| How is your portfolio of venture partners funded? |
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Venture Development work with our venture partner CEOs and boards to develop a multi-year strategic plan that maps success milestones and how much funding is required to achieve these goals.
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| The competitiveness of the funding market must be challenging. What is your short to medium term funding position?
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SVA currently has three to four months of working capital in the bank. This is tight compared to the commercial world, but not uncommon for the non-profit sector. Our funders have been consistent and loyal over the past 12 months.
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| Who funds the work of SVA and its portfolio of venture partners? |
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SVA has a diverse funding base comprising approximately 50/50 corporate and individual support. No one funder represents more than 8 per cent of SVA’s total funding.
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| How much does SVA distribute to its portfolio of venture partners per annum? |
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Performance-based distributions are tied to specific targets established during strategy development and tracked using SVA’s Return on Investment tools. Total distributions differ each year, however on average these range from $3m to $4m per annum.
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| Do I get to meet other SVA funders?
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SVA treats its funders as partners, allies and advocates. It brings compelling social issues to the forefront and unites and engages its funders via thought-leader forums, briefings and site visits.
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| What is the benefit of funding a portfolio of social ventures? |
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Working in isolation can severely limit the potential of an emerging organisation. Because of the interconnectedness of many social issues, our portfolio approach enables each of our venture partners to learn from each other by sharing challenges, experiences and solutions.
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| How do I learn about the progress of the portfolio of venture partners? |
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Our community of funders receive regular briefings and performance updates at SVA events, online and via email. SVA also produces an annual review which is distributed to each investor.
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| How do non-profit ventures join the SVA portfolio? |
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Funders place enormous value on our extensive due-diligence process when selecting our venture partners. They must meet a stringent set of criteria including proving a high level of social impact, having compelling leadership, showing demonstrated results and possessing a strong growth potential.
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| Do key executive staff at SVA support your work? |
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Yes.
Michael Traill AM, SVA’s Chief Executive, and his wife Jenny have contributed $250,000 to SVA. In addition it is expected that the majority of grants from a Prescribed Private Foundation established by Michael and his father Bill (established with capital of $540,000) will be allocated to the SVA Venture Fund.
Chris Cuffe, Chairman, SVA Future Trust, is a trustee of the Christopher Cuffe Foundation which has committed $1,000,000 to the work of SVA.
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