Third Sector Resilience Fund: evaluation

5. Conclusion

In total, £22,608,610 of vital emergency funding was delivered to some 1,371 organisations through the TSRF. At a time when third sector organisations across Scotland and beyond were badly hit by the immediate impact of the COVID-19 pandemic and the resulting lockdown, the Fund proved crucial in enabling these organisations to remain in business – and in many cases to remain operational – as they grappled with the challenges that confronted them in the short-term. As the applications data showed, when it came to applying for TSRF funding, organisations typically already had low levels of financial reserves and this represented a clear threat to their ability to remain viable.

The applications data showed that third sector organisations across Scotland benefited from the funding awarded through the TSRF – this included many organisations operating in Scotland’s most disadvantaged communities. The organisations in receipt of funding also represented a wide variety of business sectors and sizes, with smaller organisations in particular benefiting from funding. Given the diversity within the sample of awardees and the financial circumstances they faced at the point of application, it is clear that the TSRF played an important role in ensuring the continued provision of a wide variety of services in communities the length and breadth of Scotland.

The monitoring data collected from grant recipients indicated that the TSRF helped organisations to pay their staff, their overheads and their rent, as well as covering other general running costs – this included the new costs that organisations had to cover which resulted directly from the pandemic, such as the costs of remote working. Many organisations reported having more financial reserves at the end of the funding period than they did at the beginning. Since many organisations benefited from a package of different funding and support measures, this cannot be solely attributed to the impacts of the TSRF. However it appears that the overall package of support measures may have supported financial resilience amongst third sector organisations, helping them to maintain readiness to restart operations as soon circumstances would allow. The Fund also helped many organisations to continue aspects of their operations and to retain their staff. Supported organisations reported that they had been able to deliver support in a range of areas – in particular, around mental health and wellbeing – and to a wide range of groups, not least to people facing particular financial hardship or health risks.

Stakeholder interviewees also generally felt that the TSRF largely achieved its aims of helping third sector organisations to continue operating during the early stages of the pandemic. They reflected on the management and implementation of the Fund as being a relatively smooth and collaborative process, with generally clear eligibility criteria and a relatively straightforward application process. Moreover, they all agreed that TSRF had a significant positive impact on the third sector. They felt that the fund reassured third sector organisations that their role was valued and important, as well as providing organisations with essential support when they needed it most. Stakeholders felt that their experiences with the TSRF had generated useful learning that they were already applying to the design and implementation of new funds.

Despite these successes in the management, implementation and roll-out of the Fund, this report also shows that there were some challenges and limitations. While the Fund was only ever intended as a short-term measure, in many cases organisations remained uncertain about their future. While the TSRF funding was important to recipient organisations, it could not replace essential income – income which could often only be gained once lockdown restrictions eased. Respondents also expressed concerns in relation to the eligibility criteria relating to cash reserve levels. Some felt that the application process, although largely straightforward, could have been improved – some organisations struggled with this and needed help to apply, while there was also scope for greater efforts to provide unsuccessful applicants with feedback.

On balance, the evidence shows that the TSRF generally succeeded in its aims of providing crucial financial support to organisations in the immediate aftermath of the pandemic. This report shows that while there was scope to do more to reach organisations in need, it is also clear that the Fund had a far-reaching impact on a large and diverse range of third sector organisations.

While some of the organisations supported through the Fund were concerned about their longer-term viability following the COVID-19 pandemic, it was not realistic for the Fund to be in position to offset all of the impacts of the pandemic or to provide long-term security. Designed during a period of considerably uncertainty, the Fund was established to support organisations during the initial crisis period of unknown duration and severity, and to provide short-term support as quickly as possible.

The TSRF closed in September 2020. Following this, and to reflect the changing needs of the sector, Scottish Government and its partners launched the Adapt and Thrive Fund.^[22] With its focus on organisational resilience and longer-term sustainability, the Adapt and Thrive Fund provided an opportunity to build on the TSRF and to provide further, longer-term support to the sector during the next phase of the pandemic.