LEGAL REGULATION OF THE ENDOWMENT FUND AS A TOOL OF CHARITY: CURRENT STATE AND PROSPECTS

Abstract

An important issue is the change in the structure of the domestic economy, which involves the transition from raw materials to technological economy. However, for Ukraine, the implementation of such experience is complicated by the state budget deficit, the growth of which in the ongoing war and mass destruction is inevitable. At the present stage, one of the alternative tools for raising funds for educational, scientific and cultural activities is the creation of endowment funds. Simply put, an endowment fund should be understood as a trust fund created for non-commercial purposes, such as funding for education, culture, medicine, etc. The Endowment Fund as a legal institution is quite similar to a charitable foundation, but its legal nature and mechanism of use are different, which makes it unique. First, the endowment is a certain capital, consisting of money, securities, the value of other property provided by individuals and / or legal entities-benefactors. Second, the philanthropist gains financial stability and institutional capacity by obtaining a guaranteed passive income from the use of fixed capital. Third, the increase in capital is provided by the relevant professional asset management company - a bank or non-bank financial institution, which determines the priority areas of investment. At present, funding for education, science, health and culture is largely budget-funded. It should be noted that endowment funds are currently an interesting tool for charity, which can be an important tool for extra-budgetary support of educational, scientific, health and cultural institutions. Meanwhile, the introduction and dissemination of such practices in Ukraine still requires intensifying the efforts of the state, business representatives and relevant institutions and agencies.