FAQs for Third Sector Enterprise Fund and Third Sector by xru14808

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          Third Sector Resilience Fund


                Frequently Asked Questions
                          (FAQs)




                                  October 2009




This document can be translated on request into your community language, or can
be made available on request in large print, Braille or audio cassette/other formats.
Please contact Scottish Government, Third Sector Division, telephone number 0131
244 3540.
FAQs for Third Sector Resilience Fund

Introduction
The Scottish Government recognises the vital role that the third sector plays in
Scottish life and the Scottish economy. That role has become even more vital as we
work together to ensure that Scotland is well equipped to deal with the current
recession and emerge from it strongly. But we recognise the sector is not immune
from the effects of recession. Along with third sector partners we have developed
the Resilience Fund which has the potential to mitigate the twin impacts of recession
on some organisations of increased demand for their services and cash flow
difficulties.

We will make available £1.7 million through the Third Sector Resilience Fund. The
fund will provide a one-off financial payment to such organisations that can
demonstrate they are having to cope with the effects of the recession. We believe
that a strong, active and ambitious third sector can make a key contribution to the
Scottish Government’s National Outcomes.

The link below gives more information about the Third Sector Resilience Fund:

   •   Fund Strategy

Third Sector Resilience Fund

1. How much can we apply for?
You can apply for between £10,000 and £100,000 from the Third Sector Resilience
Fund. In exceptional circumstances we can make awards below or above these
amounts, so long as the award meets with State Aid rules. Associations that do not
have a separate legal status will be eligible for an award of up to £10,000 (or up to
£25,000 in exceptional circumstances). For awards above this amount,
unincorporated associations would be required to gain a separate legal status prior
to the payment of a higher award. We expect to make awards in early January
2010. All awards must be claimed by the end of March 2010. Please ensure your
application has been fully prepared before you apply as we will not be able to
consider incomplete applications.

2. Do we need to find matched funding from other sources to support our
   application?
Funding from other sources is not a requirement of the Fund. However, we want to
maximise the investment potential of the Fund, therefore we are keen to see
applications that identify other resources that will contribute towards the cost of
implementing the Recovery Plan. This might include loans, grants from other
funding sources, and contributions, both in cash and in kind, from partners or your
own organisation.

3. What can the Fund be used for?
We expect the Fund to support the delivery of the Recovery Plan, to address the
impact of the recession on the organisation. Here are some examples of ways in
which the Fund could do this:


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•   Staff costs for existing staff and associated on-costs
•   Associated overheads (rent, phone, heat and light, materials, etc)
•   Delivery specific costs (events, marketing, leaflets etc)
•   Contribution to core costs;
•   Organisational review to streamline the organisation;
•   Development of shared service systems with another organisation(s);
•   Costs associated with merger, establishing partnerships, take-over etc.

The Fund can contribute towards both capital and revenue costs associated with
proposals. However, the capital element can not exceed 10% of the award.

4. What will the Fund not support?
The Fund will not support proposals that will result in displacement.

The Fund will not support organisations who can not demonstrate that they have
appropriate safeguards in place for both the expenditure of funding and, if the need
arises, recovery.

The Fund will not support organisations that are insolvent or that can not
demonstrate their viability prior to the recession, or activities where all the
beneficiaries live outside Scotland.

5. Who can apply?
We will welcome applications from established third sector organisations that have at
least a two year track record in the delivery of front-line services. We expect
applicants to be located or operating/trading in Scotland. This can include UK-based
organisations working with Scottish beneficiaries.

6. What is the application process?
You can find out about how to apply to the Resilience Fund and download an
application form and help notes at the link below:

Application form, Information and Guidance for Applicants, and Help Notes

All applications must be supported by a Recovery Plan. Your Recovery Plan will be
considered along with your proposal. More detailed information on what should be
covered in the Recovery Plan is contained within the Information and Guidance
notes for the Fund.

Business Gateway, HISEZ and Aspire to Enterprise will be able to offer support in
preparing recovery plans as part of their free service. CEiS may also be able to help
you and you may know of other local organisations that offer this service.

Links to these organisations are provided below:

•   Business Gateway
•   Aspire to Enterprise
•   CEiS



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•   HISEZ
•   FirstPort

Please be aware that some organisations may charge for this service.

7. Where can I get help with my application?
There are a number of national intermediary bodies and local support organisations,
such as Councils for Voluntary Services that may be able to offer you help with your
proposal. These include:

•   Senscot
•   Forth Sector
•   Social Firms Scotland
•   SCVO
•   CEMVO
•   SCVO
•   Local CVS

Unfortunately the Third Sector Resilience Fund Team cannot assist with the
development and detail of your application.

8. We do not have accounts for 2008/9. What should we send to you that will
help you understand our current financial position?
Ideally we want to see your accounts for 2008/9 as part of your application. If you are
unable to provide us with your latest draft/estimated accounts for 2008/9 for some
reason then we would need to see the latest management accounts for the
organisation signed by the Chief Executive or Treasurer. Alternatively you may be
able to provide detailed income & expenditure and balance sheet figures for the
year. Some organisations will use cash flow projections set up as a spread sheet
and input their actual figures on a month by month basis. Not all organisations have
their year ends in March. Where your year end is for example in December 2009,
you can use any of the above methods to send us your current financial position
from January 2009 to date.

9. How can I prove my organisation’s immediate financial hardship is due to
the recession?
Firstly you should be able to show through your 2008/9 accounts and income
projections for 2009/10 that your organisation has experienced a reduction in income
and that this is demonstrably linked to the economic recession, that for many had its
first impact during 2008. You may be able to show how interest on investments has
reduced, anticipated grants have not been forthcoming, contracts for service
provision have been terminated or not renewed as expected (unless through an
open competitive tendering process) or revenue income has fallen. These are just
examples and your application needs to ensure that it conveys your particular
circumstances to the Panel in clear language and statements that show the link to
recession based circumstances. The Panel will look specifically at your financial
position in 2008/9 and your supplied financial projections for 2009/10 along with your
application and Recovery Plan to understand your immediate financial hardship.




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10. I think that our financial hardship is due to the demand for our services
being put under strain because the recession has brought more vulnerable
and disadvantaged people to our door. Our budgets and cash flow projections
for this year are being threatened as we respond to this immediate front-line
need. Are we eligible to apply to the fund?
If you can demonstrate that there has been an increased demand for your services
as a consequence of the recession, and you can also demonstrate that responding
to this demand is placing a financial strain on your organisation you are eligible to
apply. If, for example, the increased demand for your services is causing financial
hardship for your organisation because your income is less than the cost of
delivering those services, you should make this clear in your application. You should
then show how any grant award will provide short term relief that will address this
situation and how there is continuity with your exit/sustainability strategy beyond
support from the Resilience Fund.

11. We are not sure that we can send all our files electronically in one single
batch. Is there a way in which you will be able to identify all those that we
send?
When you are assembling your computer files to send to us please include your
organisation’s name in the file name and that will help our administration and ensure
that we can match up all the files that make up your organisation’s application.

12. Can you accept PDF documents also or do we have to send these by post?
Yes we can accept documents in PDF format.

13. Our organisation was preparing to put a new service in place to meet the
needs of vulnerable and disadvantaged people who have been hit by the
recession. We are now unable to do this due to organisational financial
hardship. Will the Resilience Fund support our application?
It is unlikely that the fund will support an organisation that wishes to establish a new
service. The aim of the fund is to support organisations to maintain their service
delivery where they can evidence demand. We also need to be sure that you have a
proven track record in delivering the service(s) that you include in your proposal.

14. Is it acceptable for us to send you some information by post and some
electronically attached to an email?
Yes, so long as all submissions are clearly marked to show what they relate to. If
your supplementary documents are not available electronically please post them to
the address at the back of the application form with a covering letter clearly stating
what the documents relate to.

15. We are not sure that our organisation will survive beyond another year. Can
we apply to the fund to enable us to keep delivering valuable services just for
the next 12 months?
While funding is to enable services to be delivered in the short to medium term,
rather than any longer term work, we are more likely to award grants where you can
demonstrate your sustainability strategy and your ability to continue service provision
after the Resilience Fund ends.




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16. Can we apply to the fund to cover core costs and salaries?
Yes. The fund can be used to cover core costs of your organisation and the wages of
staff linked to your service delivery. You might consider increasing the paid hours of
some staff or using the grant to pay part costs of a post where their time is split and
some can be allocated to activity within your Recovery Plan.

17. We plan to establish a post for a fundraiser as part of our bid to the fund
and as an integral part of our Recovery Plan. Will this be eligible for support?
The fund is able to cover wages and on-costs for staff positions related to your
service delivery. In considering the post of fundraiser you need to tell us not only
that it is part of your Recovery Plan but describe the way in which funds raised will
support your organisation and what proportion of those funds will directly support the
work detailed in your Recovery Plan. We anticipate in such an instance that any
request to contribute to the costs of a fundraiser post will be proportionate.

18. Do I need to format my spread sheets before I send them as part of my
application?
Yes please. This will ensure we are able to read, understand and assess your
financial and any other information more accurately.

19. Can my Recovery Plan cover more than 8 sides of A4?
We expect to receive a large number of applications and have indicated that we
expect you to be able to tell us what you propose to do in a reasonably clear and
succinct way within 8 sides of A4. We believe a well thought through proposal
should fit within these parameters.

20. Can our organisation put in more than one application?
No.

21. Is there a deadline for spending an award?
No. The award must be drawn down by the end of March 2010, but you can use it to
cover costs for the period stated in your Recovery Plan which can include activities
and expenditure beyond March 2010.

22. Our organisation has not been in existence for more than 18 months; can
we still apply to the fund for consideration?
No. You have to show that you have a track record in service delivery of two years
or more for the delivery of the services you are requesting assistance for.

23. Are we eligible to apply if our income is from a variety of sources including
revenue, public sector bodies, grants and donations?
The fund does not specify where income should come from only that the applicant is
confirmed as a third sector organisation and grant is being requested to provide front
line services.

24. What is the upper limit in terms of income for applicants to the fund?
There is no upper limit?

25. Can we apply to the fund to build up our reserves?



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No. You cannot apply to this fund to set up or bolster a reserves fund for your
organisation. The focus for the fund is on helping organisations provide services
now.

26. What level of reserves can we have and still qualify for the Fund?
Your application should include a statement of your reserves policy, and
organisations with reserves equating to six months or more running costs will not be
eligible for the Fund.

27. Is the fund supporting people who are experiencing hardship due to the
recession or is it for organisations experiencing hardship as a result of the
recession?
The fund aims to support third sector organisations in Scotland facing immediate
financial hardship due to the recession to enable them to maintain their front-line
services.

28. Our organisation has recently been successful in an application to the
Third Sector Enterprise Fund/Scottish Investment Fund - can we now also
apply to the Resilience Fund?
No. Applicants cannot receive support from this fund and either the Third Sector
Enterprise Fund or Scottish Investment Fund.

29. Our organisation is awaiting the decision on an application to the Third
Sector Enterprise Fund/Scottish Investment Fund - can we also apply to the
Resilience Fund?
Applicants cannot receive support from this fund and either the Third Sector
Enterprise Fund or Scottish Investment Fund. If you apply to the Resilience Fund
and subsequently are successful in your bid to the Third Sector Enterprise Fund or
Scottish Investment Fund you will have to decide from which fund you need to
withdraw.

30. If we are successful in our application to the Resilience Fund can we
subsequently apply to the Third Sector Enterprise Fund or the Scottish
Investment Fund?
If you are successful in your application, you would need to have fully and
successfully implemented your Recovery Plan, as well as be able to show a period
of stability thereafter, before making an application to either of the other funds.

31. Do we need to include financial information within the eight pages of our
Recovery Plan or can these be attached as appendices?
Your detailed proposal should include all the necessary financial information to
enable us to assess your application. This will include budgets, cash flow, income &
expenditure and balance sheet figures related to your proposal for which you are
seeking grant funding.

32. Our most recent accounts have yet to be finalised and signed off by the
Chief Executive. Will the draft audited accounts suffice in their current state?
Yes. But please tell us the reason for the delay in finalising the accounts and the
implications of any potential changes or amendments.



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33. Ours is an independent organisation with a constitution and management
board. Staff are hosted by the local authority and finances are processed
through the council’s financial systems. We receive some core grant from the
local authorities but also rely on commissioned work and other grant funding.
Are we eligible to apply to the fund?
You would need to show that you are a third sector organisation constituted in your
own right, independent of any local authority control and delivering front-line
services. We are not able to pay grant to a local authority but only into an
organisation’s own bank account with demonstrable financial autonomy.

34. We are delivering front line services but experiencing difficulties as the
funding we receive to provide for service delivery does not meet the full costs
of the service we deliver. We are experiencing an increase in demand for
these services. Can we apply to the fund?
In essence the philosophy of the fund is that it is available to help third sector
organisations maintain front-line services but it is not intended to subsidise the cost
of that delivery if another funder is not paying the full cost. This seems to be more
about your organisation addressing issues related to ‘full cost recovery’ for the
services you are delivering.

35. Our project would have been up and running but for the recession and
promised funding being withdrawn. Can we still apply to the fund to run this
project?
It is the organisation that applies to the fund, not the project. If the organisation can
demonstrate a proven track record in service delivery related to the project
submitted, and meets all other criteria, it may be eligible for funding.

36. Do applicants have to show recession linked reduction in income or that
income has remained static but they have an increased level of demand for
their services?
You need to show that your organisation is experiencing financial hardship that is
recession linked. This may be due to a reduction in the level of funding to the
organisation. You also need to show that there is stable or increased demand for
your services due to the recession so both may apply.

37. Will you make a simple decision on who receives funding by awarding the
whole amount requested or nothing, or could you reduce the amount and
make a smaller award?
The Fund Panel will take account of all the information in your proposal including
value for money and may recommend an adjustment to a lower figure.



Scottish Government
October 2009




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