Agenda item

Report of the Managing Director of BHE

The Board considered a report of the Managing Director of BHE requesting funding of £2,004,000 to be awarded to Do It Now Now Community Interest Company (CIC) (DINN Enterprise CIC, registered company no. 11937494) over two years towards the ‘Continuum Fund’, a bespoke, holistic package of finance and support for Black-led Charity and Social Enterprises (CSEs) to become business ready with access to a wide range of external funding sources including social investment. The Chair introduced the item and sought clarification that the proposal fell within the scope of the charity’s geographical area of benefit in furthering its ancillary object as set out in the charity’s governing document. The Managing Director of BHE confirmed that the proposal accorded with BHE’s governing document, with any onward grant-making to go to London-focussed organisations, and funding for running costs proportionate to this, in line with usual City Bridge Trust (CBT) funding practices.

In response to questions from Members, the Managing Director of BHE gave the Board further information regarding the governance of DINN CIC, and confirmed that there were conditions attached to the funding which would mitigate risk. Funding would be released on a quarterly basis, in accordance with a funding schedule agreed with the BHE & Charities Finance team, who would also have additional oversight. The Managing Director of BHE added that being the first significant funder would have an important role in encouraging other funders to make commitments, which was known as ‘pump priming’, and that whilst DINN CIC was a relatively new organisation, it had successfully delivered an initial round of funding during the Covid-19 pandemic and had a successful record of running a grants programme.

The Chair invited the Deputy Chair, also the Chair of the Grants Committee, to comment on the Committee’s consideration of the proposal. The Deputy Chair commented that the charity, as a funder, had a stated objective of tackling inequality and should be seeking to support initiatives which would contribute to this on a wider basis. The Deputy Chair added that this was a strategic initiative rather than a straightforward grant, which may seem less orthodox, but CBT had an existing relationship with the organisation through two previous iterations, and had contributed to previous initiatives. The proposals were a positive opportunity to scale up DINN CIC’s work and would increase the reach of BHE’s funding.

In response to a question from a Member, the Managing Director of BHE confirmed that officers had undertaken the usual due diligence with regards to the organisation’s staffing, additional detail of which could be shared separately, and that the conditions provided assurance of ongoing sustainability.

A Member suggested that terminology such as ‘historic underinvestment’ should be qualified and provide an evidence base to facilitate the monitoring of activity and proportionality. The Managing Director of BHE responded that analysis of CBT grant-making undertaken by the Impact & Learning team took this into consideration and examples could be shared with Members.

The Chair thanked Members for their discussion which demonstrated clear scrutiny of the proposals, before thanking officers for their work on the proposals. The Chair added that strategic initiatives were an area where BHE could add significant value and were an engaging way of moving the charity forwards. Noting the steer from the Board to ensure that diligent monitoring and oversight of the initiative, the Chair drew the Board’s attention to the recommendation, which was agreed.

RESOLVED – That the BHE Board, in the discharge of functions for the City Corporation as Trustee of Bridge House Estates (charity no. 1035628) and solely in the charity’s best interests, agree the grant of £2,004,000 over two years to Do It Now Now CIC as per the terms recommended to the Board by its Grants Committee.