MANY RIVERS NATIONAL PROGRAM About Us Many Rivers is a not-for-profit organisation that provides microenterprise development services to marginalised and disadvantaged Australians. We have a special focus on Indigenous Australians, in regional and remote communities. Many clients are seeking to move from welfare dependency to self-reliance and to making a valuable contribution to their communities and to the broader economy. Many Rivers commenced operations in April 2008 from Grafton NSW and has grown to 20 Field Officers in 18 locations in New South Wales, Western Australia, Queensland and the Northern Territory. Since commencing operations, we have supported 850 businesses (984 business owners): 518 (61%) of these businesses are still operating; 122 (14%) have ceased business to take up employment; Of the 984 business owners, 509 (52%) are Indigenous and 437 (44%) are female; We have provided 881 loans totalling $4.9 million and maintained a 86.5% loan repayment percentage; and We are currently meeting and business planning with 414 clients and are actively managing 370 current loans. Our Approach When people impacted by disadvantage are not able to participate in the real economy they remain disadvantaged and unable to move forward. In many of the regional and remote communities where we work there are limited job opportunities. Therefore, to create real economic growth and increase the chance for those in disadvantaged situations to overcome multiple economic and social challenges, we need to support enterprise creation and provide connection to the mainstream economies. This in turn creates sustainable employment, where there are currently limited opportunities. Businesses increase the economic pie building the local economy. When connected to mainstream economies businesses bring external revenue streams into communities. Businesses also create jobs, thereby reducing welfare and other burdens on the local economy. The Many Rivers approach is to address structural barriers to economic participation. We assist clients to start business, stay in business and thrive in business. Our approach is distinctive in four key areas: Local enterprise development We live and work in the communities where we operate; Practical business support We focus on what needs to be done to enable the business to get started; Access to finance We provide access to unsecured business loans and are providing access to other products and services to eliminate barriers for our clients; and Journey with clients We walk alongside our clients, providing ongoing support and encouragement.
2 The diagram to the left depicts how, as an integral part of the community, we bridge the economic participation gap by facilitating access to business support and services required to enable a business to succeed. Many Rivers leverages its not-for-profit status to take the time to journey and support clients before they start business and once they are in business. Six-monthly, or more frequently if required, we review the progress of our clients businesses to provide further business support and encouragement. Whilst we work with individuals, we recognise that it is important to engage the support of local communities and leaders. This is especially important in regional and remote communities. Before we commence operations in a region we seek to build relationships with the community and determine that there is support for our microenterprise development services. Our Program Many Rivers has developed a National Program to establish offices in 40+ regions across Australia operated by 45 Field Officers. We currently have 20 Field Officers in the following regions: Current Field Officers (21) New Field Officers (24) 1. NSW North Coast: Grafton 2. NSW Hunter Valley: Kurri Kurri 3. NSW Western Sydney: Blacktown 4. NSW Northern: Moree 5. NSW Central: Condobolin 6. QLD Cape York: Cairns 7. QLD Central: Gladstone 8. QLD Central: Bundaberg 9. QLD Central: Toowoomba 10. QLD Central: Roma 11. WA Pilbara: South Hedland 12. WA Pilbara: Karratha (currently closed) 13. WA East Kimberley: Kununurra 14. WA West Kimberley: Broome 15. WA Metropolitan: Perth 16. WA Goldfields: Kalgoorlie 17. NT Darwin 18. NT Gove: Nhulunbuy Our Head Office is in Sydney. Access to Credit
3 75% of Many Rivers clients have required loans to commence their businesses. Since commencement we have provided 881 loans totalling $4.9 million. Many Rivers provides clients with access to unsecured business loans through our relationship with Westpac. Loans are assessed based on character, capacity and cashflow and whether the business displays the characteristics of a good micro/small business. Should any loans become out of order with Westpac for more than 90 days, Many Rivers repays the outstanding loan balance to Westpac. In return, Westpac passes the legal title for the loan to Many Rivers and we continue to journey with the client to help them continue in business or to exit the business well. A typical first loan is between $500 and $5,000, with a term of 12 months. Larger loans up to $20,000 can be obtained as the client builds a track record of business performance and loan repayment. Since commencement, our loan repayment percentage has been 86%. Barriers to Economic Participation and the Need for Innovation We are a flexible organisation continually innovating and responding to challenges. When the credit barrier was removed, we identified other barriers to economic participation. In response, we have: Accessed pro bono legal services for clients through Squire Patton Boggs who provide legal support for issues such as contract negotiations and business structures; Commenced a Small Business in Schools Competition program in Western Australia in the regional/remote communities that we work to assist students to explore transition to work options. In 2014, 14 teams from 10 schools participated in the program; Conducted a Remote Product Distribution pilot in Western Australia in December 2013 sourcing product from regional communities into a Perth Pop-Up shop utilising our network of strategic partners. Three more Pop-Up shops were successfully conducted in Perth and Sydney in 2014. All sale proceeds are passed to clients, bringing real external revenues into communities. The long-term goal is to provide clients in remote communities with access to distribution infrastructure on a marginal cost recovery basis. Many Rivers has also identified other services required by our clients, including: A low-cost basic book-keeping service; Access to business mentors; Access to affordable business insurance advice and products; and Access to affordable telecommunications. We are currently in discussions with potential strategic partners to develop access to these services. Evaluation and Reporting In 2012 Many Rivers engaged Deloitte Access Economics (DAE) to design an economic and social evaluation model for Many Rivers. The model is outcomes-based, measuring the number, sustainability and success of the businesses established, as well as the long-term benefits achieved by clients and their communities. During 2013, Accenture, through its pro bono Skills to Succeed program, designed and implemented our client management system, Compass. Compass seamlessly integrates our evaluation model with the way we work with clients. This has virtually eliminated the cost of data collection and reporting. Our progress is independently reviewed annually by Deloitte Access Economics and the 2014 review of our work confirmed that we are helping disadvantaged people to start/expand
4 businesses and the businesses that we support are improving the economic and social circumstances of clients and their communities. Aligned Organisations and Funding Partners Many Rivers has developed a unique network of national and regional strategic partners. Our approach encourages collaboration within and across industries and brings together the philanthropic, corporate and government sectors, creating a multiplier effect for achieving grass roots economic and social outcomes. Since commencement, Many Rivers has had a strategic relationship with Mission Australia. We leverage the scale of Mission Australia s support functions (e.g. finance, HR, IT&T, car leasing and property). Since 2009, Many Rivers has provided clients with access to business loans through our relationship with Westpac, providing clients with a real loan from a real bank. In 2012, Many Rivers commenced providing clients with access to pro bono legal services provided by Squire Patton Boggs. In 2014, the law firm Gadens commenced assisting Many Rivers for loan debt recovery on a pro bono basis. Debt recovery is restricted to situations where clients have breached their trustbased relationships with Many Rivers. Where clients businesses struggle and/or fail, but the relationships remains strong, Many Rivers continues to journey with these clients to ensure they are able to continue in business or to exit well. Our goal is to engage with partners that have a long-term strategic rationale for working with Many Rivers that leverages the strengths and purpose of each partner organisation. In 2014/15 our funding mix was: Philanthropic donors: 28%; Corporate partnerships: 45%; Indigenous corporations: 8%; State government: 4%; and Federal government: 15%. Structure: How We Operate Many Rivers is a company limited by guarantee and regulated by the Australian Securities and Investment Commission (ASIC) and the Corporations Act 2001. It is also a registered charity with the Australian Charities and Not-for-profits Commission under the ACNC Act 2012. Although a controlled entity of Mission Australia for financial reporting purposes, Many Rivers strategic and business decisions are taken by its own Board of Directors. Mission Australia also provides Many Rivers with access to its support services and infrastructure, including finance, HR, legal, property, IT, telephony and procurement services. As a company limited by guarantee, Many Rivers does not have any share capital or shareholders, just members. Any funds raised by Many Rivers cannot be shared amongst members, but only to further the company s charitable purposes for the benefit of the communities we serve. Our members include seven individuals and one corporate member who sit on the Board of Directors: Mr Peter Colin Cadwallader (Chairman), Mr John Burn (CEO and Managing Director), Mr David Thomas Bussau, Mr Ronald Leigh Coleman, Mr Ross Granville Hawkey, Mr Sinclair Taylor, Mr Terry Winters and Mrs Catherine Yeomans (CEO, Mission Australia). Governance and Legislation
5 Many Rivers has its own Constitution. The Board of Directors adopt the principles, procedures and practices from the Board Governance Charter that include mechanisms to deal with real or perceived conflicts of interests and establish the governance oversight relationship between the Board and Management. Many Rivers has a Conflict of Interests Policy, Code of Conduct, Risk Management Policy and framework, Whistle blowing Policy and Delegation levels, fraud control and corruption prevention strategies along with administrative policies and practices. Tax Status Many Rivers Microfinance Limited is a Public Benevolent Institution. This means that it is a nonprofit institution organised for the direct relief of poverty, which carries out services for the public benefit. Because of its charitable status, Many Rivers is endorsed to access tax concessions such as exemption from paying income tax and some Fringe Benefits Tax (FBT) relief. Deductible Gift Recipient (DGR) Status Many Rivers Microfinance Limited is endorsed as a deductible gift recipient, so any donations made to it will entitle the donor to a tax deduction. Contact For more information please contact: Many Rivers Microfinance Ltd Level 7, 580 George Street SYDNEY NSW 2000 John Burn Chief Executive Officer M 0416 099 585 john.burn@manyrivers.org.au 30 November 2015