Guide to Impact Incubator

Guide to applying for the Impact Incubator -a fundraising program for social enterprise based in HK.

Funding Objective

Objective

Impact Incubator is a one-stop supporting platform that connects social innovation implementers (SIIs) to knowledge, resources and networks relevant to social welfare agencies, social enterprises, philanthropic foundations, business associations and professional bodies.

The Social Innovation and Entrepreneurship Development Fund (SIE Fund) aims to be a catalyst for promoting the development of social innovation in Hong Kong.

It connects the different sectors of the community, including businesses, non-governmental organisations, academics, philanthropies, etc. to address poverty and social exclusion as well as foster the well-being and cohesion of the society through innovative solutions.
The ultimate goal is to foster the development of the social innovation ecosystem where social entrepreneurs can thrive and potential talents can be unleashed to develop innovative ideas, products and services that can effectively meet social needs.

Target

Impact Incubator is a R&D Lab for entrepreneurial and innovative ideas with social purposes. They support:

Social entrepreneur who aim to adopt sustainable business solutions to address poverty and social exclusion issues
Social from NGO or private sector, who aims to mobilizes internal resources for social good
Social innovator who adopts creative approaches to addressing social needs

Amount of grants

Projects at different stages will require different amounts of grant funding over variable funding periods.

The maximum amount of grant funding for Late Prototype projects is HKD300,000*.

There is generally no funding ceiling for Start-up, Growing and Scale-up projects. However, applicants will be required to secure at least 50% of their total funding application budget as matching funds ^. Matching funds may be in cash or in kind, provided by any party other than the HKSAR Government. If the SIE Fund funding application is for HKD500,000 or above, the Joint Vetting Committee and Proposal Assessment Committee will further review the application

If your budget exceeds HKD200,000, an in-person interview will be conducted

Matching Fund excludes SIE Fund and all other HKSAR Government funding. It can be in-cash or in-kind e.g rental and equipment sponsorship. The applicant should submit supporting documents to support any in-kind valuation assessment. The matching fund amount will be subject to relevant terms and conditions and will require prior written approval

The approved grant is the sum of the capital grant and the operating grant, where:

Capital grant is the amount approved for acquiring assets (i.e. capital expenditure)
Operating grant is the amount approved for financing the funded project’s operating deficit

Budget

Only expenditure incurred exclusively for the funded project can be covered in the budget, for example ‒

1) CAPITAL EXPENDITURE

Cost of procuring equipment
Renovation cost

2) OPERATING DEFICIT (OPERATING EXPENSES IN EXCESS OF REVENUE)

Salary (including the employer’s contribution to the Mandatory Provident Fund)
Expenses for consumables
External consultancy fees
Production and promotion cost of project deliverables
External audit fee (this is compulsory for organisations’ and companies’ funding applications)
Patent registration fee
Rental and utilities
Travelling fee (not exceeding 5% of the total budgeted expenditure)
Insurance
Central administrative overheads* (not exceeding 5% of the budgeted expenditure)
Charges levied by a party (e.g. parent company) for of central support / administrative services (e.g. management fees)

Payment of candidate

The applicant will be required to keep a Designated Bank Account solely for the purpose of implementing the approved proposal. The grant shall be remitted into the Designated Bank Account in installments at such intervals as specified in the contract.

In general, the initial installment will be released upon commencement of the project and the matching fund is deposited into the designated bank account. Afterwards, installments shall be released at intervals e.g. the submission of the progress and financial reports every six months and upon SIE Fund’s satisfaction of performance of the project. Not less than 10% of the grant will be reserved as retention money which shall be released after the completion of the project.

Eligibility

Late Prototype Application: Hong Kong permanent residents aged 18 years or above, or organisations and companies limited by guarantee or limited by shares and registered in Hong Kong are eligible to apply.
Start-up, Growing and Scale-up Application: Organisations and companies limited by guarantee or limited by shares registered in Hong Kong are eligible to apply.

Projects which are, or will be, supported by other public funding schemes will not be considered. Applicants cannot submit the same project proposal to different intermediaries to apply for the SIE Fund.

The Impact Incubator supports and incubates:

Social entrepreneur who aim to adopt sustainable business solutions to address poverty and social exclusion issues
Social intrapreneur from the NGO or private sectors, who aim to mobilizes internal resources for social good
Social innovator who adopt creative approaches to addressing social needs

Types of funding

Late prototype

A social project or social enterprise with a solid prototype that has been alpha-tested. The project’s owner/founder intends to commercialise and launch the prototype to market.

Application eligibility: Hong Kong permanent residents aged 18 years or above, or organisations and companies limited by guarantee or limited by shares, and registered in Hong Kong
Maximum project duration: 18 months
Maximum funding amount: HKD 300,000*
No matching funds are required

Start-Up

A social project or social enterprise which has already been tested or launched to market. A business/ sustainability plan to support the project is required.

Application eligibility: Organisations and companies limited by guarantee or limited by shares, and registered in Hong Kong
Maximum project duration: 3 years
No limit to the funding amount requested
At least 50% matching funds are required

Growing

A social project or social enterprise which has already demonstrated initial track records in both business model and social impact, and has a potential to grow.

Application eligibility: Organisations and companies limited by guarantee or limited by shares, and registered in Hong Kong
Maximum project duration: 3 years
No limit to the funding amount requested
At least 50% matching funds are required

Scale-up

A social project or social enterprise which has already demonstrated proven social impact and sustainability. A solid plan to scale up the project is required.

Application eligibility: Organisations and companies limited by guarantee or limited by shares, and registered in Hong Kong
Maximum project duration: 3 years
No limit to the funding amount requested
At least 50% matching funds are required

Application

Sign up for an application account
Tell your idea in a project proposal
Attach a budget and other required document(s)
Submit online

Document checklist:

https://socialinnovation.org.hk/en/how-to-apply/application-procedures/

Tips for application

First Round of Application Deadline: 31/03/2022
Matching fund policy
- When applicants submit applications for Start-up, Growing and Scale-up projects, they will be required to secure not less than 50% of their total funds applied as matching funds, before their application is accepted. The ratio of grant funding applied to matching funds is 1:1.
- In general, matching funds mean any initial capital, excluding SIE Fund and other HKSAR Government funding. Matching funds can be in-cash or in-kind e.g. rental and equipment sponsorship. The applicant should submit documents to support the in-kind valuation. The matching fund amount will be subject to relevant terms and condition and will be confirmed after approval.
Multiple submission
- The applicant can submit more than one application at any given time, but each application needs to be different.
Having problem during application
- contact:
  - Phone: 28762492
  - Email: info@socialinnovation.org.hk
  - Website: http://www.socialinnovation.org.hk
    - The Impact Incubator’s office hours are from Monday to Friday (09:00-17:30). The office is closed on Saturdays, Sundays and public holidays. To schedule a meeting, please contact us in advance.