The Heart of England Community Foundation has completed the takeover of South Birmingham Friends Institute, whose long-term future supporting disadvantaged communities in the region was in doubt.

According to its latest accounts the Institute’s spending had been exceeding its income tenfold. For the year ending 30 September 2021 it spent £686,909, while its income was £69,293.

The takeover sees the Institute’s £1.2m in assets as well as five residential properties, valued at £280,000 each, transferred into the Foundation’s endowment as a named fund.

The trustees of the Institute, which was set up in 1906, will remain involved as panel members for future grant making.

According to Heart of England Community Foundation the move has been taken to “overcome succession challenges for the charity’s board. It also follows several years of collaboration between the two organisations for several years.

“Being part of Heart of England Community Foundation brings stability and succession to our Trust,” said the Institute’s former chair Robert Morris.

“We have now secured a permanent legacy for South Birmingham Friends Institute, meaning that we can continue to support disadvantaged communities in the West Midlands.

“We are excited to work with the Foundation to continue this important work over the coming years.”

Heart of England Community Foundation chief executive Tina Costella added: “Succession planning is vitally important for any charity – but it is crucial to know that winding up completely is not the only option should this succession not be in place.

“South Birmingham Friends Institute is an active grant-giving charity with values that are aligned with those of the Foundation and that works within the same geographical location.

“We provided trustees with an opportunity to continue supporting disadvantaged communities across the West Midlands as well as having an active involvement in grant-making decisions, while we manage the fund itself.

“For the Foundation, this takeover supports us to grow our investments to ensure we are sustainable for the long-term benefits of communities that we support.

“We now look forward to working with trustees to ensure the fantastic work of the charity is continued.”

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