Annual Report 2025
On 15 May 2025, SECNA held its Annual General Meeting. The following information was shared with members.
Executive Summary
The Social Enterprise Council of NSW & ACT (SECNA) has experienced a period of significant growth and development in the past year (FY24 and early FY25), marked by increased membership, successful advocacy, and strengthened governance. While the organisation is financially stable in the short to medium term, a key focus for the coming year will be to secure additional funding and explore new income sources to ensure long-term sustainability. SECNA remains committed to its Theory of Change:
By championing, connecting and advocating for our members in NSW & ACT, we help build a thriving social enterprise ecosystem that puts people and planet first, to create a sustainable and equitable society,
delivered through four strategic objectives.
Main Themes and Key Insights
1. Strategic Direction and Purpose
• Theory of Change: SECNA's core mission is to champion, connect and advocate for our members in NSW & ACT, thereby building a thriving social enterprise ecosystem that puts people and planet first, and ultimately leads to a sustainable and equitable society.
• Sector-Led Peak Body: SECNA is an independent, sector-led peak body, acting as a vehicle for the sector to do things for itself and for each other rather than as a service provider.
• Strategic Objectives: The organisation's efforts are focused on four key objectives:
1. Raise social enterprise awareness and understanding.
2. Build a connected social enterprise ecosystem.
3. Advocate for and represent the NSW/ACT social enterprise sector.
4. Be an organisation that can sustain and grow its impact.
• Values & Principles: Guiding SECNA are values of Authenticity, Creativity, Justice, Collaboration, Diversity, and principles such as being optimistic, energetic, entrepreneurial, and open and responsive to sector needs.
2. Growth and Impact
• Membership Growth: SECNA has seen significant membership growth, from 346 to 614 members in the past year. While much of this is attributed to the Women in Social Enterprise network, there was also a small increase in paying members.
• Increased Awareness: Key activities include delivering a high-quality Social Enterprise Festival (the largest showcase of social enterprises in Australia), attending speaking opportunities, and upgrading the member directory
◦ The Social Enterprise Festival secured more funding from the City of Sydney and is seeking additional sponsors for long-term viability.
• Enhanced Connectivity: SECNA fosters connections through various initiatives including:
◦ Regular events for intra and cross-sector networking across NSW/ACT, both in person and online.
◦ Recruiting 13 Social Enterprise Champions to expand reach and engagement.
◦ Expanding Business for Good Lunches to 12 locations.
◦ Creating weekly "Member Updates" for sharing opportunities and asks.
◦ Running communities of practice for local government staff (now with 30 agencies) and social impact measurement.
◦ The Women in Social Enterprise network, funded by Women NSW, will bring 500 more women into the social enterprise tent and offer peer mentoring, business for good lunches, and online learning. Half of this grant goes straight back into paying the social enterprise folks who do this amazing connecting and organising and sharing of knowledge.
◦ Providing referrals and advice to over 250 members, including impactful Peer Mentoring which has been very popular.
• Strong Advocacy: SECNA has achieved significant advocacy successes:
◦ Successful advocacy for social procurement in NSW, with the government backing SECNA's recommendations for buying from more social enterprises, proper value for money, and greater transparency in procurement. NSW Treasury has since engaged with SECNA as they work on defining social enterprise.
◦ Consulting with members, sharing insights, and advocating for systemic change to make it easier for social enterprises to thrive.
◦ Facilitating and growing Communities of Practice with government representatives.
◦ Formalising and implementing a Strategic Partnerships Framework.
◦ Working with partners to strengthen verification/certification frameworks.
◦ Active participation in 55 events, including speaking roles at conferences and special guest appearances for government agencies.
◦ Advocacy on various issues, including extending grant criteria to for-profit social enterprises and ensuring social enterprise inclusion in initiatives like Circular Australia's taskforces without prohibitive costs.
• Sector Maturation: SECNA has played a key role in establishing a shared definition of social enterprise among Australian peak bodies: "Businesses that put people and planet first. They trade like any other business but exist specifically to make the world a better place." We are also collaborating monthly with other peak bodies across Australia to increase collaboration and knowledge sharing.
3. Organisational Sustainability and Governance
• Financial Performance (FY24):
◦ SECNA transitioned from cash to accrual accounting in FY24, necessitated by the receipt of the two-year Women in Social Enterprise grant which made SECNA a medium-sized organisation under ACNC requirements.
◦ Ended FY24 with a healthy net asset position of $221k, including $820k in cash balances and Accounts Receivable (a large portion being the $500k Women in Social Enterprise Grant). Total liabilities were $597k, reflecting grants payable received in advance.
◦ Experienced a net deficit of $47k in FY24, meaning revenue ($202k from grants, donations, membership, advisory services) was insufficient to fund 100% of its operating expenses. This was funded by cash reserves from FY23.
◦ Key revenue sources included $72k from grants, $83k from memberships and events, and $35k from renting community space (which was discontinued at end of FY24).
◦ Expenses included employee costs for three part-time staff (CEO, Membership Lead, Operations Lead) and essential operational costs.
• Financial Outlook (FY25 and Beyond):
◦ Careful management and new revenue streams mean that the current balance position remains strong and the Women in Social Enterprise grant will provide financial sustainability through to FY26, but there is still a financial gap that needs to be addressed to ensure ongoing operations.
◦ A key focus for the next 12 months is to secure additional funding and explore new income sources to ensure continued support for members and the sector.
• Governance Improvements:
◦ Significant strides have been made in financial reporting and management, including a Delegation and Authority policy, Financial Management Policy, strengthened risk management, and the establishment of a Finance and Audit Committee.
◦ Regular review of financial performance and outlook by the Board, with strengthened planning, budgeting, and forecasting processes.
◦ Statutory and grant filings are up to date, and an investment strategy has been developed to optimise cash holdings.
◦ Continued focus on establishing and promoting good governance, with subcommittees, delegation policy, and new policies implemented.
◦ The organisation operates with just four part-time staff (2.5 FTE), demonstrating efficiency and commitment.
◦ Staff changes: Bec Humphris has recently stepped down as Member Lead and was replaced this week by Lindsay Burlton; Maxx Silver (Data and Impact Lead) will finish in June; Mark Thackray joined as Admin Coordinator, and Rebecca Farrell has been brought on board temporarily to manage the Social Enterprise Festival. Kylie Flament continues as our CEO.
◦ Board retirements include Jay Boolkin, David Burns, and Andrew Marselos (Chair), with Jay and Andrew seeking re-election. David Burns is moving on from his volunteer directorship at SECNA, and we thank him for his immense contribution to the board and SECNA - including through work with local governments. Susan Bailey (former Company Secretary) has supported the transition to new Company Secretary Kate Thomas.
Key Priorities for the Upcoming Year (FY25-FY26)
• Financial Sustainability: Secure additional funding and explore new income sources to meet operational needs beyond FY26 and ensure long-term stability.
• Strategic Plan Development: The Board will begin developing the next strategic plan in the coming months, following the current plan's expiration in June 2025.
• Festival Sustainability: Seek more sponsors for the Social Enterprise Festival to make it financially sustainable.
• Organisational Development: Sustain core operations through ongoing revenue sources, implement a data governance policy, automate manual processes, and continue improving compliance and governance.
• Ecosystem Development: Continue to deliver high-quality events, support champions, consult with members for systemic change, and formalise strategic partnerships.
• Collaboration: Continue monthly meetings with other peak bodies to explore collaboration opportunities, including a potential shared membership model, with member consultation.
Conclusion
SECNA has demonstrated remarkable progress in its mission to champion, connect, and advocate for the social enterprise sector in NSW and ACT since launching in March 2020. Despite operating with limited resources, the organisation has achieved significant milestones in membership growth, advocacy success, and governance improvements. While financial stability is secured in the near term, proactive efforts to diversify funding are crucial for sustained impact. The commitment of members, staff, and the Board continues to be instrumental in navigating growth and change within the dynamic social enterprise movement.