Introduction: Voluntary, Community, Social, and Faith Enterprise (VCSFE) organisations play a vital role in supporting local health and care needs, particularly among underserved communities. However, they can often operate in isolation, making it difficult for vulnerable populations to access coordinated support. Luton Public Health led a pilot called the Collaboration Fund that encouraged joint working among selected VCSFE organisations, delivering services that tackle health inequalities. The evaluation of the Collaboration Fund assessed the impact, effectiveness, and sustainability of this collaborative approach in addressing system approach to improving health outcomes.Methods: A parallel mixed-methods design was adopted to evaluate this collaborative approach among VCSFE organisations funded by the Collaboration Fund in Luton. Impact was assessed using quantitative data from five lead organisations. Effectiveness and sustainability were explored by conducting 13 qualitative interviews with project leads and managers. Descriptive statistics and geospatial mapping were used for quantitative analysis, and qualitative data were thematically analysed using Framework Analysis in NVivo v.20.Findings: The impact findings highlighted that 7,177 service users accessed services, mainly by women and those living in Luton’s most deprived wards. The effectiveness of working collaboratively improved service delivery through shared resources, co-designed services, and increased community trust and engagement. However, challenges included overlapping roles, limited communication, and a lack of diverse staff among a few of the organisations (One lead organisation and their three partner organisations). Sustainability was impeded by funding constraints, with stakeholders recommending stronger networks, shared outreach platforms, and improved visibility of the local VCSFE services to maintain and enhance collaboration.Conclusion: The Collaboration Fund enhanced inclusive, community-based services through strong partnerships, multilingual outreach, and creative engagement, improving access and reducing isolation among marginalised groups. Collaboration was most effective when organisations with strong community representation partnered with less diverse ones. Sustaining progress requires continued investment, resource sharing, and strategic support to deliver collaboration and address inequalities.