Agenda item

Report of the Managing Director of BHE

The Committee considered a report of the Managing Director of BHE requesting funding for phase two (incubation phase) of the development of the Baobab Foundation (Baobab), the first funder dedicated explicitly to growing, supporting, and strengthening groups and organisations led by and serving Black people and communities affected by racism and racial disparities in the UK.

The Managing Director of BHE introduced and presented the application, also setting out the process for onward approval to the BHE Board, should the Committee endorse the recommendations. The Chair commented that this was a complex piece of work, but an exciting opportunity and drew Members’ attention to the recommendations.

RESOLVED – That the Grants Committee of the BHE Board agree:

1. A grant of £200,000 be made to Hackney Council for Voluntary Service (HCVS), registered charity no:1069736 to be held for the benefit of the Baobab Foundation, towards phase two (incubation) running costs over two years (year one £120k, year two £80k) upon terms that provide that - upon the satisfactory constitution and registration of the Baobab Foundation (further to recommendation 2 below) and subject to entering into a grant agreement with the Baobab Foundation (i) the balance of grant funding held by HCVS shall be transferred to the Baobab Foundation and (ii) the balance of funding yet to be paid over at the relevant time shall be paid directly to the Baobab Foundation;

2. In principle, subject to the approval of the Bridge House Estates Board, a further grant of £2,000,000 (payment schedule to be agreed at the point of funds being committed) shall be made to the Baobab Foundation towards onward grant-making for the benefit of Londoners provided that the following conditions are met:

(i)    The Baobab Foundation becomes a constituted organisation registered in a manner which meets City Bridge Trust’s usual eligibility criteria, and your officers are satisfied that appropriate governance and management practices are in place.

(ii)   Subject to the condition at (i) above being met, the Chamberlain (through the Charities Finance Team) is satisfied with the financial position of the organisation.

3. Subject to the approval of the Bridge House Estates Board to Recommendation 2, a letter of comfort be sent to the Baobab Foundation to confirm the intention to make the grant of £2m subject to the stated conditions being met and also subject to a grant agreement being entered into;

4. Should the Bridge House Estates Board approve Recommendation 2 above and the relevant conditions be met, that authority be delegated to the Managing Director of Bridge House Estates in consultation with the Chair and Deputy Chair of the Bridge House Estates Board and the Chamberlain, to award the grant of £2,000,000 to the legally constituted Baobab Foundation subject to any additional conditions which might be considered prudent at that time; and

5. That, should there be substantive alterations to the arrangements set out in this report and/or to matters affecting the decisions taken, this matter will be reported back to the Grants Committee and Bridge House Estates Board.