According to Black’s law dictionary 8th edition the word philanthropy is derived from the Greek word meaning ‘Love of Mankind’. It involves charitable giving to worthy causes to a large extent to the needy. The historical background could be traced from the ancient African word “Ubuntu” meaning humanity to others.
The practice of philanthropy and educational endowment in Nigeria can help provide the necessary underpinning for public policy especially for institutions not covered by general educational policies. If we access such policy measures intelligently, we must first understand the purpose that are served by practice of philanthropy and educational endowment.
Without educational endowment and philanthropic gifts, institutions would have had to cut back even further on their programs, increase tuition and fees even further, or obtain additional public funding to maintain current programs at current rate due to extreme high running cost of institutions.
The distinctive features of a philanthropic and educational endowment project, if properly managed will emerge strongly when contrast their financial behavior with that of large and sound Business Corporation.
The practice serve institutions and public by way of providing stability, encouraging innovation and flexibility, allowing a larger time horizon, and leveraging other sources of revenue.
The existing legal framework with regards to practice of philanthropy and educational endowment in Nigeria has provide for growth mediated social arrangement structures except for some corporate fraud which exist despite the regulatory sanctions.
Applicable Laws
- Constitution of the Federal Republic of Nigeria (1999)
- Companies and Allied Matters Act (2020)
- Companies Income Tax Act (CITA)
- Criminal Code Act
- Taxes and Levies (Approved List for Collection) Act (1998)
- Value Added Tax Act (1993
- VAT Amendment Act (2007)
- Federal Inland Revenue Service (Establishment) Act (2007)
- Personal Income Tax Act (2004)
- Personal Income Tax (Amendment) Act (2011)
- Money Laundering (Prohibition) Act (2011)
- Terrorism (Prevention) Act (PTA) (2011)
- Companies Income Tax (Exemption of Profits) Order (2012
Conclusion
Within the purview educational endowment and practice of philanthropy in Nigeria, universities education can adequately funded through additional resources. There’s need to support the philanthropic and educational endowment drive in Nigerian higher education institutions, which by so doing it will enhance the value chain of its stakeholders.
Education Trust Funds such as Tertiary Education Trust-Fund (TET FUND) intervention should also be extended to private universities too. This position would go a long way in providing institutions with more funds for the sustainable growth in Nigeria.
Suggestions:
To adapt formal spending that seek to address these challenges facing contemporary practice of philanthropy and educational endowment in Nigeria:
- Proper documentations and record keeping
- There should be accountability and transparency in handling of finances of endowed funds
- To ensure sufficient reinvestment drive so that the value of the endowment is maintained relatively to the raising cost over time.
- To permit greater predictability in budget by smoothing out year-by-year fluctuation in earning.
- Fast tracking of utilization of funds donated.