Third Sector Enterprise Fund by yco10525


          Third Sector Resilience Fund

               Information and Guidance for

                                     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.

Before you apply                                              3
Introduction                                                  3
How much is available and when?                               4
What will the Fund support?                                   4
What will the Fund will not support?                          5
Other Key Points about the Fund                               5
VAT                                                           6
State Aid                                                     6
Eligibility and Assessment criteria                           6
The application, Recovery Plan and supporting                 8
Appraisal and assessment process                              11
Monitoring and Evaluation requirements                        12
How to apply                                                  12
Annex A: Third Sector Resilience Fund - Application Process
Before you apply
Please read the following documents before completing your application:

   •   Third Sector Resilience Fund Strategy
   •   Information and Guidance for Applicants
   •   Application Form
   •   Application Form Help Notes

The above documents are available at:

Please ensure that your application for funding addresses the purpose of the
Fund, and the applicant organisation meets the eligibility requirements.
Please read carefully the supporting documentation that is required with your
application – any incomplete applications will be considered ineligible.

If you have any queries please contact a member of the Resilience Fund team:
•      Polly Chapman - 01463 663 918
•      Mary Lyden - 0141 305 4176
•      Gareth Allen - 0141 271 3775
•      Ricky Gachagan - 0141 271 3740
•      Guthrie Handley - 0141 305 4172

The Scottish Government has been clear from the outset that it wants to take a
strategic approach to government with a focus on outcomes. We are focusing all of
government and public services on a single, over-arching purpose:

       “to create a more successful country, with opportunities for all Scotland to
       flourish, through increasing sustainable economic growth.”

The Scottish Government established a National Performance Framework, published
in the Spending Review 2007, to underpin delivery of this purpose. You can view the
National Performance Framework at:-

As part of this commitment the Scottish Government has launched the Third Sector
Enterprise Fund. This provides an investment in the Third Sector of £12m between
2009 and 2011. In response to the recession the Scottish Government will make
£1.7m of this money available for the Third Sector Resilience Fund. The Resilience
Fund has the potential to mitigate the twin impacts of the recession on some
organisations of increased demand for their services and cash flow difficulties. The
Fund will provide a one-off cash injection to organisations that can demonstrate they
provide essential front-line services which, as a result of the recession, require short-
term financial support to maintain these services.

We will make between £10,000 and £100,000 available to viable organisations with a
track record of service delivery of at least two years, who can demonstrate that they
are suffering financial hardship as a consequence of the recession. Both capital and
revenue funding will be available but capital should not exceed more than 10% of the

How much is available and when?
£1.7 million is available. The Fund will open on 30 October and close five weeks
later on 4th December 2009. Successful applicants will be notified in early January
2010, with payments being made shortly afterwards. All awards must be claimed by
the end of March 2010 at the latest.

   •   The minimum award is £10,000;
   •   The maximum award is £100,000;
   •   Awards outwith these amounts can be made in exceptional circumstances,
       and subject to complying with rules on State Aids
   •   All applications must be accompanied by a Recovery Plan.

Associations that do not have a separate legal status will be eligible for an award of
up to a maximum of £10,000 (or up to £25,000 in exceptional circumstances).
Supplementary awards above this amount may be offered to those associations on
condition that they will gain a separate legal status prior to payment of that additional

What will the Fund support?
The Fund aims to support an organisation through financial hardship being
experienced as a direct consequence of the recession, where those organisations
are providing essential front-line services. Applicants need to detail clearly how the
recession has had an impact on their organisation and how they propose to address
this through the Fund to enable it to reach a position of sustainability again. The
Fund will invest in activities that will help secure the longer term future of the
organisation and the services it delivers. Costs that the Fund can support include:

   •   Staff costs for existing staff and associated on-costs
   •   Expenses for volunteers
   •   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 essential merger, partnership, take-over etc.

This list is not exhaustive but is intended to give an indication of the breadth of
activity that can be supported.

What will the Fund not support?
The following types of activities are not eligible for the Fund:

• Building work or refurbishment costs of premises
• Activities such as: services or events where the key purpose is to promote a
  religious doctrine, or mission; projects designed to benefit only the members
  of a particular place of worship or religious organisation without impact on
  wider society
• Any party political activity or party political campaigning.
• International activities or activities that are taking place outside Scotland.
  These include but are not limited to international conferences or travel and
  accommodation costs to visit communities based outside Scotland
• Purely commercial ventures that are not social enterprises
• Statutory organisations, such as local authorities, schools and the Police
  Force, including arms length public sector organisations that are controlled
  wholly or in part by, for example, a Local Authority, a NHS Trust or agencies
  of these
• Any purely social, cultural or leisure organisations as evidenced in their
  constitution that are not delivering front line services
• Any activity that is not consistent with your charitable objects, or your social or
  environmental mission if you are a social enterprise
• Organisations that are for the sole benefit or relief of animals or plants
• Funding cannot be used for the provision of services to asylum seekers when
  those services are inconsistent with immigration laws or Home Office policy
• Housing construction and management operations of Registered Social
  Landlords (RSLs) – however, in line with the general eligibility criteria, RSL
  owned subsidiary social enterprise trading companies with a separate identity are
• Proposals that relate to the delivery of a new service
• Costs associated with the loss of a contract through a normal competitive
  tendering process
• Organisations that can not demonstrate viability prior to the impact of the
• Proposals that would normally be funded by commercial loan finance or other
  funding sources.

Organisations can only make one application to the Fund. Multiple applications
from one organisation will not be accepted.

Other Key Points about the Fund F
   •   We will consider proposals from two or more third sector organisations
       working together in partnership. Each partner must complete an application
   •   We will consider applications from intermediaries in respect of a clearly
       identified and delineated front line service which has a track record of two

       years of delivery or subsidiaries of third sector intermediary organisations
       where the subsidiary has its own separate identity and has a track record of
       front line service delivery of at least two years;
   •   Applications can include a mix of capital and revenue funding, so long as the
       capital element does not exceed 10%;
   •   We will not fund retrospectively. This means we can’t pay for any expenditure
       incurred before a formal offer of grant has been issued and accepted;
   •   An application has to clearly demonstrate how the recession has directly had
       an impact on their organisation’s viability, and the proposed solution to this
       articulated in a Recovery Plan. Supporting documentation will be required to
       evidence the impact;
   •   If you are successful you must claim all funding by 31 March 2010.

If your organisation is eligible to reclaim VAT, the amount of funding you ask for must
exclude VAT. The Scottish Government will not support VAT costs where these can
be reclaimed.

State Aid
State Aid is a European Commission term which refers to forms of assistance from a
public body, or publicly-funded body, given to undertakings on a discretionary basis,
with the potential to distort competition and affect trade between member states of
the European Union. The 'State Aid rules' are set out by the European Commission.
Public funding to a single recipient of up to 200,000 euros over any 3 year fiscal
period does not require notification.

The Scottish Government is unable to invest in proposals that would breach the
200,000 euro ceiling over any 3 year fiscal period. It is the applicant’s responsibility
to ensure that it complies with EC State Aid rules.

Further information on State Aid is available at:

Eligibility and Assessment criteria
Organisations applying to the fund must be able to:

   •   Demonstrate, and describe, how the recession has significantly undermined
       or adversely affected their services (for example, committed funding lost
       through reduced income from trusts and investments, extraordinary demand
       for their services or withdrawal/loss of external investment income).
   •   Evidence that any increased pressure on their services is as a direct result of
       the recession. This could be in the form of increased financial pressures,
       increased demand on service delivery, or both.

   •   Demonstrate that prior to the recession they were a financially viable
       organisation with a proven track record of delivering essential front-line
       services over two years with sound financial management and accountability.
   •   Identify what caused the problem, and their proposed solution e.g. shared
       services, partnership, trade out, merger, takeover etc) and future plans for
       longer term sustainability articulated in an appropriate Recovery Plan.
   •   Show unrestricted reserves equating to less than six months’ running costs of
       the organisation.
   •   Provide certification by an auditor or chartered accountant of the requirement
       for the Resilience Fund and their longer term viability.
   •   Demonstrate appropriate safeguards are in place for both the expenditure of
       funding and, if the need arises, recovery
   •   Be located or operating/trading in Scotland – this could however include UK
       based organisations working with Scottish beneficiaries;
   •   Demonstrate appropriate management and governance arrangements in
       place to support our investment.

The following are not eligible for the fund:

   •   Organisations that are insolvent;
   •   Organisations that only provide services outwith Scotland;
   •   Organisations that have received funding from the Third Sector Enterprise
       Fund or the Scottish Investment Fund.

The Fund is aimed at organisations suffering the impact of the recession either
through seeing an increased demand for their services or experiencing cash-flow
difficulties, or both. Applicants must therefore clearly demonstrate the impact that
the recession has had and how they propose to address this through the use of
support from the Fund.

Applicants must be able to demonstrate how an award will help to make their
organisation sustainable in the long term through the successful implementation of
their Recovery Plan. Applicants should outline what the funding will be used for and
why the work is necessary.

The other assessment criteria will be:

   •   The applicant can demonstrate the potential to achieve sustainability as a
       result of our investment;
   •   The applicant can demonstrate an increase in its contribution towards at least
       one of the Scottish Government’s 15 National Outcomes;
   •   There is evidence that there is an effective monitoring and evaluation system
       in place;
   •   The organisation has considered how it will take forward or sustain the
       changes made once Scottish Government funding comes to an end;
   •   The amount of Resilience Fund grant requested is appropriate and
       demonstrates value for money.

The Application, Recovery Plan and supporting
documentation and Appraisal Process
Timescale for Applications

The Third Sector Resilience Fund will open on 30 October 2009 and remain open
until 4 December 2009.

The Applicant

We anticipate that most applications will be from individual third sector organisations.
However, consortium or partnership applications from two or more third sector
organisations are also welcome. In this instance the partners need to agree which
organisation will be the lead organisation which will be responsible for receiving the
award on behalf of the partnership or consortium. All partners must individually
meet the eligibility criteria and complete an application form. We also ask for
information about all the partner organisations and their individual roles in the
proposal and the completed forms must make clear which organisation is leading.
The lead partner must explain how any grant will be managed and distributed
amongst the other partners.

All applications must be supported by a Recovery Plan.

The Recovery Plan
There are 6 areas you need to cover in your Recovery Plan, as detailed below. The
Recovery Plan should be no more than 8 pages long.

1. What immediate financial hardship you are facing due to the
recession and why it is impacting on your ability to deliver frontline
Be clear on why you need the funding and the difference it will make to your
organisation – tell us what funding you have lost this year due to the recession
and how this has impacted on your ability to provide services. Remember that
you need to demonstrate this loss to us objectively. This can be substantiated by
a cash flow analysis to demonstrate the flow of money into and out of your
organisation, and/or through your budget and most recent management
accounts. Please therefore include this information in your proposal. You may
also include extracts from Board minutes etc. where these demonstrate the
recession’s impact on your organisation. Ensure you declare all sources of
actual and potential income in the financial year 2009/10. You need to provide us
with actual expenditure to date and projected (expected) expenditure over the
next 12 months to demonstrate how service delivery will be impacted.

Remember that this financial hardship might be due to loss of grants, contracts,
savings or interest. However, the Resilience Fund will not give a grant for
services previously funded via a contract which the applicant organisation lost in
a competitive procurement process to another organisation. In the same way, the
Resilience Fund will not pay for services that are not demonstrating stable or

increased demand. Remember, you must objectively demonstrate the stable or
increased demand for those services, and demonstrate that the services are
being used. We need this evidence in order to assess your application.

2. A clear description of your proposed front-line services, including
inputs, outputs, outcomes and timelines

This section is key and tells us what you plan to achieve with the funding.
Remember, it must be for the provision of front-line services.

An input can be money, time or resources. It’s what you plan to put into the work.
An output could be an event, publication, session, service, meeting etc. It’s what
you do during the work. An outcome is the difference it has made, e.g. 50 young
people supported in gaining training relevant to getting work, counselling support
for 70 families during a six-month period etc. It’s what you achieved as a result of
the project.

Please provide data on the anticipated number of people who will use the
services we would fund. This will help us judge the value for money aspect of
your work. Ensure you provide timelines for the work.

3. A detailed budget for the work
You need to provide a budget for the work you are applying for and show us how
you arrived at the calculation. Please ensure that this information relates solely
to the activity in your application; if we cannot clearly identify the income and
costs for an activity it will be hard to assess your application. This should be the
minimum amount needed for the recovery of your organisation and should reflect
the total summary budget information in your application form and give the
detailed breakdown of your budget under the headings in the summary budget,
for instance:
    • Wages and on-costs (e.g. National Insurance, insurances, pension). We
        need to see the detailed breakdown by staff post
    • Expenses for volunteers
    • Associated overheads (e.g. materials, heat and light, rent, telephone)
    • Delivery-specific costs (e.g. events, marketing, website and leaflets). We
        need to see the detailed breakdown by activity
    • Capital costs (no more than 10% of grant). Provide a list of items you plan
        to purchase
    • Contribution to core costs.

Please remember that the maximum size of the grant is £100,000 (or £10,000 for
associations that do not have a separate legal status) and you must make sure
that any irrecoverable VAT is fully and clearly reflected in the budget.
Irrecoverable VAT is where you need to pay VAT on a service or item you have
purchased, and are unable to recover this VAT from HM Revenue & Customs.
We need sufficient detail to assess your application for good value for money and
identify how you plan to make best use of the available funds.

An application to the Resilience Fund cannot be entirely or in the main for capital
purchases (e.g. computers, photocopiers, digital projectors etc). Where capital
purchases are absolutely essential for the continuation of the front-line service,
capital costs may be included, but cannot be more than 10% of the grant you are
applying for.

We strongly encourage applicants who require staff to carry out their activities to
contribute to existing staff posts (e.g. a part-time staff member getting more hours
for a year), share existing staff resources with another organisation, or use limited
and carefully thought through pieces of expert consultancy support. This is
because funding a new staff post can be unhelpful if continuation funding is not
secured or is not available for subsequent years.

4. How your proposal complements the aims and regular activities of
your organisation
We need to know that your proposals are related to your normal activities and
that you have a proven track record in delivering these services. We don’t want
you changing what you do just to access this funding. We will read your annual
accounts and annual report to validate this information.

5. How you will measure your success and how you will know whether
you have achieved your outcomes
As a condition of the grant, you will be required to carry out an evaluation at 6
and 12 months after the receipt of your award. You may wish to undertake
additional monitoring and evaluation as appropriate to your proposal, and details
of this should be included here.

We will want to know at the end of the funding what difference it made to your
organisation and the people you support, so plan to collect the data as you do the
work – the answer to this question will tell us what you plan to measure and how
you plan to collect the data to know the difference you made. For example, if you
are planning to run a series of training courses you need to tell us how many
courses you plan to run (output), for how many people (output), and the
difference it will make to those who attend (outcome) – and how you will find out
if it did help them.

6. Your exit strategy or sustainability strategy
Tell us what you plan to do when the Resilience Fund money comes to an end.

Other Supporting Documentation
A number of documents/evidence are required to support your application.
These are listed below, along with other documents which it may be
necessary for you to include. Please make sure that you include all relevant
documents with your application as failure to do so will result in your
application being ineligible.

   • A copy of the governing documents adopted by your organisation
     (constitution, memorandum and articles of association etc)

   • Your audited accounts, or independently signed statement of income &
     expenditure and balance sheet, for the last two years

   • Your current management accounts. We need these because the
     audited accounts may not yet show the impact of the recession on your

   • A certified statement from an auditor or chartered accountant of your
     requirement for the Resilience Fund and your longer term viability. We
     need this to show us that your organisation was viable prior to the
     recession, and that an injection of money is needed not because of mis-
     management of funds or not charging properly for your services, but
     because of the recession.

   • A copy of your Recovery Plan as detailed above

   • Supporting evidence to illustrate the impact of the recession on your
     organisation, as appropriate. This could include correspondence with
     other organisations, Board minutes, etc.

The following documents should also be submitted, where available/applicable

   • Your most recent annual report

   • A copy of your equality and diversity policy

   • A copy of your reserves policy, if available

   • A copy of your Business Plan, if available

Appraisal and assessment process
The Scottish Government Third Sector Resilience Fund Team will carry out an initial
eligibility check on all applications as they are received. All applications which meet
the eligibility criteria will be put to a Panel which includes third sector organisations.
The Panel will meet in mid-December and make a recommendation to Ministers on
the successful applications.

Panel decisions will be based on the application form, the information in the
Recovery Plan, and other supporting documentation. Successful applicants will be
notified in early January 2010 and a grant offer issued. The Panel may request that
certain conditions be built into the offer of grant, for instance the need to have a bank

account with at least two signatories, as they feel appropriate. There will be no
appeal process.

The diagram at Annex A illustrates the application process in more detail.

Monitoring and Evaluation requirements
You will be required to submit monitoring and evaluation information after 6 and 12
months of receiving an award, that is most likely in July 2010 and January 2011.
The fund will be externally evaluated and the information you provide will be used by
the external evaluators as well as by Scottish Government. Provision of this
information will be a condition of an award.

The information we expect you to provide is as follows:
   • Evidence of the difference that the award has made to the organisation and
       the services it delivers
   • What has been learned in attempting to implement the Recovery Plan
   • What impact the award has had on the organisation, its clients and services
   • Whether any jobs, services, or volunteers have been saved as a result of the
   • The turnover of your organisation and how this has changed as a
       consequence of receiving the award

There may be other things specific to your organisation or application that you will
monitor and these should be detailed on your application form.

How to apply
Please ensure you download and carefully read:

   •   The Third Sector Resilience Fund Strategy
   •   Information and Guidance for Applicants
   •   Help Notes for Applicants

The Help Notes for Applicants explain the information we are looking for and will
help you to focus your answers. Please ensure you read these documents carefully
when completing your application and that you include all the supporting evidence
we have stated. We will not be able to consider any incomplete applications. The
Application Form is available in Word format and all the documents are available at:
Please e-mail your completed application form and supporting documents to :

If you don’t have electronic copies of your supporting documents you can post hard
copies to:

The Resilience Fund Administrator
The Scottish Government
Third Sector Division
Mail Point 21
Area 3-H Bridge
Victoria Quay

If you do not have access to a PC, please complete a hard copy of the form in
BLACK INK and post it to the address above.

Data Protection and Freedom of Information

Applicants to the Third Sector Resilience Fund investment should be aware that the
Scottish Government is subject to the provisions of the Freedom of Information
(Scotland) Act 2002 as well as the Environmental Information (Scotland) Regulations
2004 and the Data Protection Act 1998. Please therefore note that information
provided, including personal information, may be published or disclosed in
accordance with the aforementioned legislation. When submitting an application,
please let us know if there are any parts of it which would prejudice your commercial
or other interests if they were made public. However, given our legal obligations,
please note we cannot guarantee confidentiality.

                                                  Annex A

Stage 1                 Application submitted to Scottish Government

                          Acknowledgement letter issued to applicant

                                Application confirmed complete?
 No                                                                             Yes

 Application rejected                                              Application meets eligibility

                                           Yes                                    No

                                                                                  Application rejected
Stage 2
                                     Application to Panel

                                       Successful at Panel?

 No                                                                               Yes

 Applicant advised and given                                Covering letter and grant offer letter
 feedback and signposted to                                 issued to applicant
 sources of support
                                                            Applicant signs and returns grant offer

                                                                       Applicant receives grant

Stage 3

                                    Monitoring and Evaluation
                              Applicant responsible for monitoring and
                             submission of evaluation material at 6 and
                                 12 months after making of award


To top