Social Sector Transformation Fund

This Grant Program has Closed.

The NSW Government 2020–21 Budget announced the Social Sector Transformation Fund with an allocation of $50 million.

The Fund will provide grants to small and medium-sized charities and not-for-profits working in health and social service to help them modernise their operations — with a focus on capacity building, better digital service delivery, remote working capabilities and improving business strategies — so they can remain efficient, effective and viable.

DCJ is working closely with the NSW Council of Social Services (NCOSS) and community services organisations to design and implement the Social Sector Transformation Fund. A grants process will open in early 2021.

Read the media release.

If you have any questions about the Social Sector Transformation Fund, please send us an email.

As part of the NSW Government’s commitment to work closely with service organisations to design and implement the SSTF, in late 2020 a Steering Committee was established to advise on the grant objectives, design and outcomes.

Chair of the Steering Committee is Eleri Morgan-Thomas, Executive Director, Partnerships, Department of Communities and Justice.

The SSTF Steering Committee is comprised of members of the NSW Government including:

• Department of Communities and Justice
• NSW Health
• Treasury
• Aboriginal Affairs
• Multicultural NSW

Members of peak bodies representing the not for profit sector targeted by the grant are also on the steering committee. These include:

• the Local Community Services Association
• the Network of Alcohol and Other Drugs Agencies
• the NSW Council of Social Services
• the Aboriginal Child, Family and Community Care State Secretariat.

The Steering Committee worked through the key design features, to determine eligibility to apply for SSTF grants and the allocation model for how the funds will be disbursed.

A series of workshops were held between November 2020 and February 2021 with Steering Committee members, representatives from the sector and subject matter experts within government on grants policy development and grants management.

The purpose of the workshops was to design the Social Sector Transformation Fund grants program. It allowed for a continuous dialogue between government and the sector to inform how the Social Sector Transformation Fund grants program was being designed. The outcome of the workshop discussions were then brought to the Steering Committee to review and approve key design principles.

The first workshop looked at the theory of change or program logic. This workshop clarified the long and short term outcomes expected by government and by the sector. These decisions were then used as the foundation for subsequent workshops that looked at:

• what the sector needed
• how eligibility would be defined
• what would be funded by the grant
• how grant funding would be allocated
• grant amounts for not for profits
• the grants application process, and
• outcomes measurement and reporting.

Managing conflicts of interest

A natural consideration for any co-design process is the potential and/or perception of conflicts of interest.

By way of example of a perception risk are the peak bodies on the Steering Committee that could be eligible for funding and could unduly influence the design of the grants program to their or their member’s advantage.

DCJ takes the management of conflict of interest seriously. A probity advisor has been engaged to help DCJ and all Steering Committee members understand and meet probity rules to ensure if there are any conflicts of interests that they are managed appropriately.

The overall objective of the Social Sector Transformation Fund is to modernise the operations of small to medium not for profits so they can remain efficient, effective and viable. In the short term the Social Sector Transformation Fund aims to:

• improve the capability of the not for profit’s staff and organisational processes
• improve efficiencies and effectiveness in service delivery
• improve business strategies.

In the medium to long term the Social Sector Transformation Fund can help organisations and the wider sector to:

• be more innovative and have new ways of working
• be able to deliver more accessible and comprehensive services based on client needs
• have more sustainable and viable organisations that are able to innovate.

All Social Sector Transformation Fund grants will need to be aligned to one or more categories listed below:

The Social Sector Transformation Fund is being rolled out in three rounds starting in March 2021.

Direct grant payment

These grants will be paid directly to all eligible service providers with continuous or ongoing funding arrangements with DCJ and/or NSW Health.

No application is required.

• $20,000 if their annual revenue is less than $1 million, or
• $40,000 if their annual revenue is greater than $1 million and less than $5 million.

Open grant application

Eligible organisations can apply for a competitive grant at three fixed amounts:

• $20,000 available for around 500 organisations,
• $50,000 available for around 300 organisations, or
• $200,000 available to three organisations.

Note: application information and reporting requirements are higher for the higher grant amounts.

Consultancy and advisory services

Eligible organisations can access consultancy or advisory services from a panel of providers selected by DCJ.

These services will be provided at no cost:

• Organisational business improvements
• Organisational capacity building
• General IT advice.

This service will also provide general resources and support to the sector. Detailed eligibility guidelines for the open grants round will be published on this website prior to the grant round opening.

Service providers eligible to receive the Direct grant payment can also apply for the Open grant and access Consultancy and advisory services.

Please refer back to this page or contact SSTF@facs.nsw.gov.au if you have questions

Eligible organisations can apply for up to three fixed amount Social Sector Transformation Fund grants through SmartyGrants:

• $20,000 available for around 500 organisations.
• $50,000 available for around 300 organisations.
• $200,000 available to three organisations.

However only one grant in this round will be approved for each organisation.

Organisations can still be approved for grants in either round 1 direct payment or round 3 consultancy and advisory.

Organisations are advised to choose to apply for a grant amount that best matches their needs and ability to spend the grant.

Application and reporting requirements increase in complexity with increasing grant amounts. The $200,000 grants are expected to focus on delivering longer term outcomes and transformation. Due to this, applications for this amount will be requested to provide more detailed information and will have correspondingly more detailed reporting requirements than the lower grant amounts.

Eligible Organisations

Organisations must meet all of the following eligibility criteria before submitting a grant application:

• Be an incorporated charity or not-for-profit entity registered with the Australian Charities and Not-for-profits Commission (ACNC), Office of the Registrar of Indigenous Corporations, NSW Fair Trading or equivalent other equivalent regulatory bodies.
• Be a small to medium sized organisation that has total annual revenue reported in their 2019/20 financial statements of less than $5 million.
• Be an organisation in that provides health and/or social services in NSW, this excludes arts and sporting organisations in the broader social and community sectors.

Eligible Funding Categories

The open grant can only be used for one or more of the ten grant funding categories:

Retrospectivity

Organisations are allowed to use up to 50% of the SSTF grant to reimburse expenses incurred in 2019/2020 and/or 2020/2021 financial years.

In order to do so DCJ must be satisfied that the retrospective expenditure to be reimbursed provided a benefit to clients at that time.

All retrospective expenses must be reported to DCJ and must be aligned to one or more of the ten grant funding categories. Any expenses, retrospective or not, not aligned with SSTF will not be permitted.

Organisations who have reported unexpended funds from programs funded by either DCJ or NSW Health will not be permitted to claim a reimbursement.

Reimbursement of retrospective expenses is not available for the $200,000 grant.

Application process

All applications must be submitted using SmartyGrants. Applications submitted via email, in the post, by hand or by fax will not be eligible.

Assessment criteria

All applications will have an eligibility assessment and if they are successful they will then be assessed using the following criteria:

1. Aligned with one or more of the three short term outcomes of the SSTF and one or more of the ten grant funding categories,
2. Meets a critical business need, improves services for clients and/or there is a community benefit
3. Be technically feasible and can be delivered on time and on budget (ie projects must be completed on or before 30 June 2022)
4. The organisation must have the capacity and capability to deliver on the project(s) outlined in the application
5. Shows value for money

Information to be submitted

Assessment

Eligible applications will be independently assessed by DCJ and NSW Health. Each application will be scored against the assessment criteria. In addition, the assessment may prioritise applications based on one or more of the following:

• Aboriginal Community Controlled Organisations (ACCOs)
• Organisations that deliver a majority of their services to Aboriginal clients and communities
• Smaller organisations based on their total annual revenue in 2019/2020 and/or reliance on government funding
• Organisation based in rural and remote areas.

Funding Deed

A funding deed is required to be executed by the successful applicant and DCJ before any grant can be paid. The terms and conditions of the deed are not negotiable. The execution of the funding deed will be done by DocuSign.

Failure to execute the funding deed by 7 June 2021 may result in the grant being withdrawn or risk a nonpayment.

Once funding deeds are executed DCJ will release the grant funding to successful applicant prior to end of June 2021. No grants will be paid in the new financial year.

Reporting

Successful applicants will be required to submit an Annual Accountability return to DCJ.

The report has one mandatory output measurement and organisations must choose at least one additional output measure for each approved grant funding category.

Mandatory output measure:

• Amount expended per grant funding category

Additional output measures:

• Estimated efficiency savings in dollars
• Estimated efficiency savings in time
• Number of new personal IT devices purchased
• Number of new IT infrastructure purchased
• Number of new software purchased
• Number of staff that can now work flexibly/remotely or has significant improved ability to do so
• Numbers of staff received training
• Numbers of clients received training
• Proportion of staff reporting a technology capability uplift
• Proportion of clients reporting a technology capability uplift
• Proportion of clients reporting increased accessibility
• Number of new clients receiving a service
• Qualitative assessment of business transformation.

Organisations will be required to select one or more relevant the output measures when submitting an application.

The outputs will be used to measure SSTF outcomes to evaluate projects, the SSTF program and for reporting to government.

For the $200,000 grants, in addition to the Account Accountability reporting, more in depth reporting will be required. Additional reporting requirements will be negotiated with the successful applicants.

The open grants application guidelines can be downloaded in a single document.

Eligible and ineligible organisations

1. What is the eligibility criteria?
2. Our organisation does not meet any of the registration requirements listed in the SSTF application form. Is there any way we can apply for funding?
3. Can organisations make a joint application?
4. What if we want to work with another organisation?
5. Can there be a lead organisation working in partnership with other organisations?
6. Does our organisation require an ABN?
7. The application asks for our financials for 2019/20. What should I include?
8. I am a new organisation and don’t have 2019/20 financials. Can I apply?

Grant categories and expenditure

1. Can the Open Grant be used for a (retrospective) project that has already commenced?
2. What can’t the SSTF grants be spent on?
3. Can I apply for funding for a project already being funded by DCJ / another government department?

Application process

1. We haven’t used SmartyGrants before, is there another way to lodge our application?
2. Should our application include GST?
3. When completing our application, how many grant funding categories and outcome measures should we select?
4. Can we go back to our application and update it as we go?
5. Can an organisation submit more than one application?
6. If an organisation applies for a higher grant amount and are declined, will they automatically be considered for a lower grant amount?
7. Will all applications receive funding?
8. Can we confirm that our application has been submitted?
9. Will late applications be accepted?
10. Will the SSTF open grant application period be extended?

Assessment criteria

Assessment and approval of grants

1. Our organisation meets the conditions to be considered for additional prioritisation
2. How are applicants notified?
3. What happens if my application is successful?
4. How long do we have to start and complete the project?
5. What happens if my application is unsuccessful?

Funding deed

Our organisation hasn’t used DocuSign before. Is there an alternative to execute the funding deed?

Payment

Reporting requirements

Support and Resources

1. Where can I find additional resources on Program Logic and Cost Benefit Analysis?
2. Who can I contact about my application?

Questions and answers

1. What is the eligibility criteria?

There are three ways the SSTF Grants are being allocated and there are different eligibility requirements:

1. Direct allocation:

   SSTF grants are being paid directly to not for profit service providers. No applications are required.

   Service providers are eligible if they have continuous or ongoing funding arrangements with DCJ and/or NSW Health and if they have total annual revenue:

   • less than $1 million they can receive a $20,000 (GST exclusive) grant, or
   • greater than $1 million and less than $5 million they can receive a $40,000 (GST exclusive) grant

   Local councils and other state government agencies are not eligible.

2. Open Grant Applications

   Eligible organisations can apply for a competitive grant at three fixed funding amounts ($20,000, $50,000 and/or $200,000).

   Organisations must meet all of the following eligibility criteria to be able to submit an open grant application:

   • Be an incorporated charity or not-for-profit entity registered with the Australian Charities and Not-for-profits Commission (ACNC), Office of the Registrar of Indigenous Corporations, NSW Fair Trading or equivalent other equivalent regulatory bodies
   • Be a small to medium sized organisation that has total annual revenue reported in their 2019/20 financial statements of less than $5 million
   • Be an organisation that provides health and/or social services in NSW. Note this excludes arts and sporting organisations in the broader social and community sectors
3. Consultancy and Advisory Services

Service providers will be invited to submit a grant application to provide consultancy and advisory services to the sector.

DCJ will select providers to participate based on their organisation’s capacity and capabilities to deliver this service.

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2. Our organisation does not meet any of the registration requirements listed in the SSTF application form. Is there any way we can apply for funding?

No, you must be an appropriately registered organisation before the close of this grant round and be able to supply requested evidence.

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3. Can organisations make a joint application?

No. An application must be made by a single organisation that will accept responsibility for the delivery of the project if the application is successful.

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4. What if we want to work with another organisation?

You can still work with other organisations and note this in your application but the project can only be submitted by a single organisation.

The organisation that applies must take full responsibility for the successful completion of the project. Successful completion includes all the outcome and measures being met and reporting on and the financial acquittal through annual accountability.

No consortium applications will be accepted.

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5. Can there be a lead organisation working in partnership with other organisations?

Yes, but the application must be made by a single organisation.

Organisations are encouraged to consider the potential opportunities of developing digital transformation projects together as well as the risks.

Potential partnerships could include sharing training costs, negotiating a better deal on IT products across organisations or achieving cost savings by implementing a system across several organisations. This could also include using the same web developer to build a website and then tailoring the content for different organisations.

No weighting is given to partnerships in the assessment process.

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6. Does our organisation require an ABN?

Yes, your organisation must have valid ABN.

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7. The application asks for our financials for 2019/20. What should I include?

Applicants should include:

• ACNC registered organisation – Annual Information Statement (AIS)
• ORIC registered organisation - Annual return
• Others - audited financial statements

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8. I am a new organisation and don’t have 2019/20 financials. Can I apply?

Yes. If you meet the eligibility criteria and can show that you have become an appropriately registered organisation after 1 July 2020 your application may be considered.

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Grant Categories:

1. Can the Open Grant be used for a (retrospective) project that has already commenced?

Only for $20,000 and $50,000 grant amounts.

Organisations may apply for up to 50% of the total grant amount for previously incurred eligible expenses from one or more of the ten grant categories. It is only valid for expenses incurred during the 2019/2020 and 20/21 financial years.

Evidence of retrospective expenses will be required e.g. invoices for services and, receipts for goods purchased.

This is not available for $200,000 grant amount.

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2. What can’t the SSTF grants be spent on?

The SSTF grant specifically aims for organisations to gain access to IT technologies and services and/or to transform their organisation.

Therefore, there are a range of activities that will not be funded:

• general maintenance of existing IT technologies
• purchase of building materials, physical infra-structure, or construction activities
• general business operating costs (including bookkeeping/accounting and tax returns)
• retrospective payments for expenses incurred prior to grant funding approval date or work already undertaken – for the $200,000 grant only
• fees for services provided by related parties (such as companies with common shareholdings or directorship with the applicant, and employees or immediate family of the applicant)
• Recurrent or core operational costs
• Activities already funded by other government grants schemes or program funding
• Commercial or profit-making activities
• Activities not of benefit to NSW
• Travel costs, unless they relate to direct service delivery.

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3. Can I apply for funding for a project already being funded by DCJ / another government department?

Yes. You may apply for funding for a project already being funded by DCJ/another government department, provided the activities of the requested additional funding are not the same as the activities already being delivered by your project.

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Application Process:

1. We haven’t used SmartyGrants before, is there another way to lodge our application?

No. Only applications made through SmartyGrants will be considered.

To register with SmartyGrants, please visit: www.smartygrants.com.au

Online tutorials and help are available to assist you at the website. It is recommended that you register early and familiarise yourself with the site to make the application process easier.

If your organisation already has a SmartyGrants account registration from another grant program, you may log in using the same username and password.

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2. Should our application include GST?

No. Your request should exclude the GST that you will be charged as part of the project cost/delivery.

This needs to be reflected in your budget breakdown.

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3. When completing out application, how many grant funding categories and outcome measures should we select?

It is important to carefully consider and select the grant funding categories and outcome measures that are most relevant to the project. If your application is successful, you will be required to report on each of the selected measures. Applicants should consider the level of reporting they will need to make back to DCJ. This should be commensurate with the size of your grant. As a guide, it is suggested that no more than 1-2 grant funding categories with the relevant outcome measures for each category are selected when applying for the $20,000.00 grant.

For $50,0000 grants, 1-3 grant funding categories with the relevant outcome measures should be selected, and for the $200,000.00 grant four grant funding categories and four outcome measures.

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4. Can we go back to our application and update it as we go?

Yes. Applications in SmartyGrants may be saved, revisited and edited before being submitted.

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5. Can an organisation submit more than one application?

Yes.  Organisations may apply for $20,000, $50,000 and $200,000 grants via a separate application, but will only be approved for one grant per organisation at the end of the grant round.

It is recommended that applicants consider carefully which grant amount they apply for.

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6. If an organisation applies for a higher grant amount and are declined, will they automatically be considered for a lower grant amount?

No. It is important that organisations only apply for the grant amount that matches their needs and ability to deliver.

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7. Will all applications receive funding?

No. The assessment process is competitive.

Applications will be assessed on how they address the assessment criteria.

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8. Can we confirm that our application has been submitted?

Yes. Once you click submit, you will receive a confirmation email that will contain a PDF copy of your application.

Check to ensure that you have received this email and retain it as a record of your application.

If you have not received this email, your application has not been successfully submitted, or the confirmation email has ended up in your junk mailbox.

You can also log in to the online system and click ‘My Submissions’ to view all submitted and un-submitted applications.

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9. Will late applications be accepted?

No. The online system will not accept applications submitted after the advertised closing date of 5pm 3 May 2021 (AEST).

If you are having issues submitting your application, please contact the SmartyGrants Support Desk at service@smartygrants.com.au or telephone 9320 6888 (Opening Hours: 9:00am - 5:00pm AEST), well before the closing date and in time to seek assistance.

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10. Will the SSTF open grant application period be extended?

Yes. The grant round has been extended and has a new closing date of 5pm 3 May 2021 (AEST).

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Assessment Criteria:

Do we need to address all of the assessment criteria to be considered?

Yes. You must address all five assessment criteria.

In your responses, please provide only the requested information and evidence to support your claim. Any additional information submitted that is not requested will not be assessed.

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Assessment and approval of grants:

1. Our organisation meets the conditions to be considered for additional prioritisation. Does this mean we do not have to address the assessment criteria?

You must address all the assessment criteria in order to be considered for an SSTF grant. Applicants who fail to address all criteria may not be considered further.

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2. How are applicants notified?

All applicants will be notified of the outcome of their application in writing via email in May/June 2021.

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3. What happens if my application is successful?

If your application is successful, you will be formally notified in writing by email.

To receive your grant, you will need to log in to SmartyGrants and fill out and return the online Funding Deed and the EFT Banking Details form to DCJ for processing. Funding will then be released.

It is recommended to return your signed documents as soon as possible. All funding must be released by 30 June 2021. Organisations that do not return their Deed and Banking details in time risk missing out on the grant.

DCJ will be using Docusign to execute grants.

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4. How long do we have to start and complete the project?

Organisations will nominate in their application timeframes for commencement and completion. It is expected that projects will commence by, or on, 1 July 2021. All funding must be expended by successful organisations by 30 June 2022 or earlier.

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5. What happens if my application is unsuccessful?

If your application was not successful, you will be formally notified in writing by email and provided an opportunity for feedback.

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Funding Deed:

Our organisation hasn’t used DocuSign before. Is there an alternative to execute the funding deed?

No. Successful organisations will need to execute the funding deed via DocuSign.

DocuSign is a secure online way for people to easily execute legal documents. There is no cost to people signing documents and there is no training needed to start to using DocuSign.

For further information about DocuSign, please visit www.docusign.com.au.

SSTF team members will be able to help you through the process. They can be contacted on SSTF@facs.nsw.gov.au

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Payment:

How will I be paid if I am a successful applicant?

Successful applicants will be asked to provide their bank detail as part of the funding deed. Once the deed is executed payment will be made directly into your nominated bank account.

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Reporting requirements:

What are the reporting requirements for successful applicants?

DCJ will include reporting requirements as part of the final funding deed.

Each project will report against agreed outcomes and output measures. Higher value grants may be required to undertake additional or more frequent reporting.

Successful applicants will be required to submit annual accountability returns to DCJ. Information on the Annual Accountability can be found here

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Support and Resources:

1. Where can I find additional resources on Program Logic and Cost Benefit Analysis?

Only applicants for the $200,000 grant are required to provide information on Program Logic, Cost Benefit Analysis and evaluation processes

The NSW Department of Premier and Cabinet website contains information to support applicants in understanding and developing a program logic. Information on Program Logic, Cost Benefit Analysis and evaluation processes can be found here.

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2. Who can I contact about my application?

For clarifications on the SSTF program, you can contact the SSTF team at SSTF@facs.nsw.gov.au.

If your query relates to using SmartyGrants please contact them through their website at www.smartygrants.com.au

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SSTF grant recipients received funding from April – June 2021. In line with government reporting requirements, all grants recipients are required to acquit their funding for the 2020/21 financial year, even if funds have been carried over to the 20201/22 financial year.

The acquittals process occurs through the DCJ Contracting Portal. If your organisation received grant funding in more than one round, you must acquit separately for each round.

A video presentation on navigating the DCJ contracting portal is found here.

A video presentation for the SSTF acquittal processes is found here.

The presentation for SSTF acquittals starts with completing the Direct Allocation payment acquittal. The presentation for completing the Open Grant acquittal commences at the 9 minute 20 second stage.

A guide to acquitting the Direct Allocation payment can be downloaded here

A guide to acquitting the Open Grant can be downloaded here

Further information on acquitting SSTF grants for 2021/22 will be released from July 2022.

The NSW government announced the Social Sector Transformation Fund (SSTF) in the 2020 State Budget. The SSTF supports small to medium sized charities and not for profits in the social services and health sectors.

DCJ administered the SSTF grants process from April to June 2021. The grants were released in three tranches through a combination of direct payments, competitive grants and select tender processes. The allocation of grants was based on defined eligibility requirements, demand and needs. Assessment of the competitive and select grants were merit based.

The SSTF was co-designed with peak bodies representing the sector and with relevant government agencies. The co-design process informed the policy direction and principles for the grants process implemented by DCJ.

The successful providers for Tranche 1 – Direct Allocation payments can be found here

The successful providers for Tranche 2 – Open grants can be found here

Advisory and Information Services

The third tranche of the Social Sector Transformation Fund are select grants to deliver Advisory and Information Services from August 2021.

The SSTF Advisory and Information Services will leverage existing supports, resources and infrastructure to help eligible organisations achieve the SSTF outcomes.

Seven organisations have received one-off grants to provide advice, resources and support to the health and social services sectors. Advice and support can be short and general, or it can be more detailed and in depth.

Individual SSTF Advisory and Information Service providers will triage queries and assess whether an organisation is eligible for a SSTF service and the type of service that can be provided.

The seven organisations funded to deliver SSTF Advisory and Information Services are:

• Infoxchange will receive $2.7 million to provide digital and information technology advisory services to not-for-profits, migrate organisations to the cloud and develop provider digital capability through the Digital Information Hub
• Social Impact Hub will receive $1.5 million to deliver governance and strategy support through its Professional Impact Network to help not-for-profits grow, innovate and become more sustainable
• The NSW Council of Social Service (NCOSS) will receive $1 million to support resilience building for emergency responses and to convene a symposium for health and social service NGOs to come together to share the results , opportunities and challenges that the SSTF has generated.
• AbSec will receive $1 million to provide small to medium sized not-for-profits with a holistic model of supports, providing practical advice and solutions to help organisations improve how they do business
• Justice Connect will receive $1 million to deliver a range of legal services for not-for-profits to help board members, staff and volunteers understand the law, prevent legal problems and increase efficiency
• The Association of Children's Welfare Agencies will receive $1 million to deliver on-demand leadership training and workforce development activities through online workshops and face-to-face training; and
• Sefa (Social Enterprise Financial Australia) will receive $1.5 million to deliver a range of strategic analysis, governance support, quality assurance and evaluation services to help organisations futureproof their operations

Organisations interested in receiving information about the SSTF Advisory and Information Service can register their interest by emailing the SSTF mailbox and nominating a service stream(s).

Registrations of interest will be given to the SSTF Advisory and Information Service providers when operations commence. These services will operate from August 2021.