Agenda item

Baobab Foundation (19019)

Report of the Managing Director of BHE

Minutes:

The Board 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 Chair introduced the item and advised that the Grants Committee had supported the recommendations. The Chair added that it was intended that BHE would commit the grant funding once certain conditions had been met, with a letter of comfort to be provided in the interim should the grant be agreed. The commitment would be made in either the current or the next financial year depending on when the conditions were met.

 

A Member commented that they had raised the matter of process for reporting to both the Grants Committee and the BHE Board, as the report had been amended between submission to the Committee and subsequently to the main Board, which was potentially confusing and a duplication of efforts. The Member advised that they were content with the explanation for doing so on this occasion but suggested that the process be reviewed going forward with a view to identifying any improvements that could be made.

 

In response to a question from a Member regarding the fundraising target, the Managing Director of BHE confirmed that the recommended £2m grant would go towards the £10m target for onward grant-making, with a separate grant of £200k towards Baobab’s running costs already having been directly awarded by the Grants Committee within their delegated authority. The Managing Director of BHE added that the recommended £2m grant would be in addition to the £3.6m already raised by Baobab, bringing them significantly closer to their target of £10 m. It was confirmed that BHE’s funding could still be used for onward grant-making by Baobab if the £10m target was not reached.


RESOLVED – That the BHE Board approve:

 

  1. A restricted grant of £2m (payment schedule to be agreed at the point of funds being committed) 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; and

 

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;

 

  1. 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;

 

  1. With the Bridge House Estates Board approval of Recommendation 1 above and should the stated conditions under that Recommendation 1 then be met, that authority be delegated to the Managing Director of Bridge House Estates in consultation with the Chairman and Deputy Chairman of the Bridge House Estates Board and the Chamberlain, to award the grant of £2m to the legally constituted Baobab Foundation subject to any additional conditions which might be considered prudent at that time; and

 

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

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