Prospects of the endowment instrument in the financing system of the social sector in modern Russia

Abstract

Introduction. In modern socio-economic conditions of Russia, it is necessary to stimulate additional and long-term financing instruments for the activities of non-profit organizations to solve socially significant problems. Now endowment can be called one of the promising instruments for financing the social sphere. The relevance of considering this topic is confirmed by the fact that in our country there is an increasing interest in the philanthropic model, when non-profit organizations, charitable foundations, private donors, and businesses become subjects of the institute of social investment. The advantage of the endowment lies in its exclusively fundraising activities, that is, attracting finance, investing it on the basis of trust management and targeting income to finance socially significant areas. Goal. Determining the prospects for using the endowment tool in the social sector financing system. Materials and methods. The study is based on the analysis of the legislative base of the Russian Federation in the field of regulating the activities of endowment participants, the content, component composition of this financing instrument and successful practices of endowment functioning. Results and discussion. In the course of the work, the basic principles of the formation of endowments are characterized: targeting, exclusive treatment and isolated accounting of endowment capital, trustworthiness, stability of financing. The main functions of endowment participants are analyzed, the ranking of top management companies working with target capital and successful practices of endowment funds in Russia are presented. Conclusion. The prospects of using the endowment tool in the system of financing the social sphere are presented, its advantage in terms of the position of strategic partnership between the state, business and society in solving social problems based on long-term direct investments is revealed.

Keywords

• endowment
• endowment fund
• special-purpose capital
• special-purpose capitalfund
• fundraising