Not-for-profit organizations historically have relied on government grants and donations and don’t provide goods or services; they must use any profits for the purpose of the organization, so everything has been reinvested. According to the Australian Charities Report 2014, the sector reported income totaling $103 billion in 2013-14. Of this, $42 billion came from government grants, $6.8 billion from donations and bequests and $54.5 billion from other sources.

Meanwhile, Social enterprises are businesses where the aim is to start social good as well as pursue personal profit. They will aim to make money for their founders, shareholders investors, as well as correct economic disadvantage or provide employment for disenfranchised people or improve clean energy. Financial returns will also be reinvested for the running of the company. Even if they receive grants to get going, the basic principle is to eventually develop a self-sustaining business with its own income stream. For example, a social enterprise ensured 35% of cleaners hired by a housing commission in inner city Melbourne would come from the many unemployed people living in the flats as way of combating violence and other social problems in the flats.

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Not for profit vs. social enterprise: an explainer on do-gooders