USING FOUNDATIONS AS A TOOL FOR POVERTY ALLEVIATION
Poverty is a major problem that affects millions of people worldwide. It is a multi-faceted phenomenon that extends to the multiple deprivations poor people experience in their daily lives, such as educational deprivation, poor standard of living, lack of empowerment, poor health, and environmental hazards, amongst others. Notwithstanding the several intervention programmes by governments, the private sector and some philanthropic individuals and organizations, poverty has not only persisted but is fast becoming endemic, leaving countless individuals trapped in a cycle of deprivation. In this article, we would attempt to highlight how Foundations could play a crucial role in addressing the challenges of poverty and promoting sustainable development.
What are Foundations?
Foundations are non-profit organizations established with a specific mission or purpose, typically devoted to charitable endeavours. Recognizing the fact that poverty has continued to ravage all spheres of our daily lives, some philanthropists have taken it upon themselves to set up structures that enable them to support the society that had given them so much through poverty-alleviating programmes. Although Foundations are set up for diverse reasons, they basically provide support for diverse causes and tackle social, environmental, or humanitarian concerns through grant-making and other impactful initiatives. They could also be used for the propagation of religion, promotion of education, provision of social amenities and poverty alleviation. These philanthropic organizations are effective tools in the fight against poverty, offering hope, empowerment, and tangible solutions to assist the poor and other marginalized groups. They typically operate independently, utilizing funds donated by individuals, corporations, or governments. Although Foundations should have Assets Allocated to specific projects and objectives, their flexibility in resource allocation enables them to respond swiftly to emerging needs and develop innovative strategies for meeting their objectives.
Globally, foundations hold a significant reputation for their pivotal role in financing programs that aid impoverished and marginalized communities. Additionally, they contribute to driving social change by advocating for social, economic, and racial justice. Through identifying and supporting projects that harness the collective strength of communities, foundations combat the harsh realities of poverty and structural racism, fostering an environment of empowerment and progress.
How Foundations can help mitigate poverty in Nigeria
With a population of over 200 million people, Nigeria faces significant challenges in its quest to address poverty and achieve sustainable development. According to the 2022 Multidimensional Poverty Index survey, 63% of persons living in Nigeria (133 million people) are multidimensionally poor. Also, the World Bank has revealed that in the first six months of 2023, a staggering number of four million Nigerians fell into the poverty trap. Moreover, an additional 7.1 million individuals are anticipated to face the same fate unless well-targeted measures are implemented to effectively cushion the effect of fuel subsidy removal and curb inflation. This reveals that despite being rich in natural resources, a considerable portion of the Nigerian population still struggles to meet basic needs.
Income inequality is one of the primary drivers of poverty in Nigeria. The country’s wealth is concentrated in the hands of a small elite, while a large proportion of the population struggles to meet their basic needs. The rural-urban divide exacerbates this issue, with rural areas experiencing higher poverty rates than urban centres. Other factors that have contributed to the persistence of poverty in Nigeria include corruption and inefficient governance, poor health infrastructure, lack of access to quality education and inequality and regional disparities.
Education is a fundamental aspect of poverty alleviation, as it empowers individuals with knowledge and skills to create better opportunities for themselves and their communities. In Nigeria, foundations make contributions to improve impoverished children’s access to quality education by offering scholarships, grants, constructing schools, and executing educational initiatives. These foundations help individuals, particularly children and young adults, break free from the cycle of poverty and make significant contributions to the development of the country by increasing literacy and numeracy skills.
Healthcare is another crucial focus area for foundations in Nigeria. Insufficient access to healthcare services exacerbates poverty and hampers socio-economic development. Foundations establish medical facilities, mobile clinics, and health awareness programs, particularly in rural areas where healthcare infrastructure is either limited or sub-optimal. These healthcare initiatives not only improve health outcomes but also reduce the financial burden on impoverished families, allowing them to direct their resources toward other essential needs.
Foundations recognize that equipping individuals with marketable skills is key to unlocking economic opportunities. They organize skill development and vocational training programs, as well as entrepreneurship initiatives designed to empower individuals with the expertise needed to secure gainful employment or start their own businesses. Economic empowerment projects, such as microfinance schemes, provide access to capital for aspiring entrepreneurs, particularly women in rural areas, enabling them to create sustainable livelihoods and improve their families well-being.
Beyond direct interventions, foundations also play a vital role in advocating for systemic changes to reduce poverty. They collaborate with governments, international organizations, and other stakeholders to influence policies and shape the development agenda. Advocacy efforts may involve promoting inclusive economic policies, social safety nets, and equitable distribution of resources. By addressing the root causes of poverty on a broader scale, foundations contribute to sustainable and lasting change.
Although foundations are making considerable progress in the fight against poverty, they face a number of challenges that hamper their efforts. These include lack of funds, bureaucratic obstacles, and the complexity of poverty-related issues. In addition, the socio-political climate and security problems in certain regions can have an impact on the implementation of anti-poverty programs.
The Role of the Board of Trustees (BOT) in Foundations.
Foundations, particularly those registered by the Corporate Affairs Commission (CAC), operate under and are overseen by a Board of Trustees or Corporate Trustees. A foundation’s board of trustees plays a significant role in assuring the organization’s success and adherence to its objectives. Trustees oversee the management of the foundation’s activities, making strategic decisions, and ensuring compliance with legal and regulatory requirements. They act in the best interest of the foundation and its charitable purpose, avoiding any conflict of interest or self-dealing. It is also the duty of Trustees to protect the assets and property of the foundation, ensuring that they are used efficiently and effectively for the beneficiaries and or public good. They also ensure that the foundation and its officers act within the laws and regulations governing the foundation. Trustees ensure that the foundation and its officers follow the governance charter of the foundation which sets out its mission, vision, values, and policies
Additionally, Trustees are also responsible for the regulation of the foundation’s financial administration. This includes approving budgets, monitoring financial performance, and ensuring that the foundation’s resources are used mobilised and deployed to meet set objectives. Trustees are equally involved in fundraising efforts and maintaining relationships with donors and stakeholders to secure funding for the foundation’s initiatives.
Greenwich Trustees Limited, partners with existing foundations in developing a workable structure that ensures effective and efficient distribution of their assets as well as monitors implementation of projects tied to their objectives. Greenwich Trustees Limited has also assisted in the setup and registration of foundations for select philanthropists who are interested in giving back to the society which has provided them with platforms to be successful in life.
In conclusion, the Board of Trustees in foundations is indispensable as they are crucial in making a substantial impact on poverty alleviation in Nigeria. Trustees play a vital role in ensuring that the foundation achieves its goals through the Trustees’ strategic guidance, financial expertise, and unwavering commitment to their mission. Foundations, with clear objectives and where effectively managed, can be a tool to creating lasting and meaningful differences in the fight against poverty, bringing hope and progress to countless lives in Nigeria.
Bunkaya Gana is the Managing Director of Greenwich Trustees Limited and can be reached at bunkaya.gana@greenwichtrustees.com or 08033335436, 08024490064