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.