C++ template function for derived class with std::is_base_of

As mentioned in the comments to the question, SFINAE expressions won't work the way you did it.
It should be instead something like this:

template <typename T>
typename std::enable_if<std::is_base_of<BaseClass, T>::value>::type
Function(T && arg) {
    std::cout << "Proper" << std::endl;
}

template <typename T>
typename std::enable_if<not std::is_base_of<BaseClass, T>::value>::type
Function(T && arg) {
    std::cout << "Improper" << std::endl;
}

SFINAE expressions will enable or disable Function depending on the fact that BaseClass is base of T. Return type is void in both cases, for it's the default type for std::enable_it if you don't define it.
See it on coliru.

Other valid alternatives exist and some of them have been mentioned in other answers.

#include <typeinfo>
#include <iostream>

class BaseClass {};
class DerivedClass : public BaseClass {};
class OtherClass {};

template <typename T,typename = typename std::enable_if<std::is_base_of<BaseClass, T>::value, T>::type>
void Function(T && arg)
{
  std::cout << "Proper" << std::endl;
}

void Function(...)
{
  std::cout << "Improper"<< std::endl;
}

int main()
{
  Function(DerivedClass{});
  Function(BaseClass{});
  Function(OtherClass{});
}

template <typename T>
auto Function(T && arg) -> typename std::enable_if<std::is_base_of<BaseClass, T>::value>::type 
{
    std::cout << "Proper";
}

template <typename T>
auto Function(T && arg) -> typename std::enable_if<!std::is_base_of<BaseClass, T>::value>::type 
{
    std::cout << "Improper";
}

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