Service Delivery through Trust Funds
By Bola Bakare
In today’s fast-paced world, effective service delivery is crucial for governments to meet the evolving needs of their citizens. To bridge the gap between resources and requirements, trust funds have emerged as a vital tool for collaborative governance. By pooling resources and expertise, trust funds can enhance service delivery, foster transparency, and ensure accountability.
Trust funds are designed to support specific development initiatives, addressing critical gaps in service delivery. They mobilize resources by leveraging funding from diverse sources, including governments, international organizations, and private sector entities. They foster collaboration by bringing together government agencies, NGOs, and community organizations to share expertise and resources. They promote transparency by ensuring accountability through robust financial management and reporting systems. They encourage innovation by supporting pilot projects and innovative solutions to address complex challenges.
Trust funds do not exist in isolation. Their existence is based on collaborations with global agencies, government agencies and the organized private sector to name a few. These collaborations between trust funds and government agencies yields numerous benefits for improved efficiency depicting streamlined processes and reduced bureaucracy, enhanced expertise for access to specialized knowledge and skills, increased funding by leveraging resources from multiple sources, encourage better accountability for transparent financial management and reporting.
Trust funds have played important and substantial roles in Global Fund to Fight AIDS, Tuberculosis and Malaria as a pioneering public-private partnership supporting health programs worldwide. The World Bank’s Trust Fund for Gaza and West Bank in addressing humanitarian needs and promoting economic development. The United Nations Development Program (UNDP) Trust Fund in supporting sustainable development initiatives globally.
As with all laudable endeavors key principles for effective collaboration must be adhered to for clear objectives in aligning goals and outcomes. A strong governance stance in establishing robust oversight mechanisms. A vivid transparency and accountability to ensure open communication and financial reporting and finally a flexibility and adaptability that responds to changing needs and contexts.
Trust funds offer a powerful mechanism for governments to enhance service delivery, leveraging resources and expertise from diverse partners. By embracing collaboration and transparency, we can unlock meaningful progress, improve lives, and build resilient communities.
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Trust Funds are available on different platforms for better implementation namely, Revocable Trust which can be modified or terminated by the sponsors, An Irrevocable Trust that cannot be changed or terminated once established, A charitable Trust that benefits a charitable organization or cause, A Special Needs Trust that supports individuals with disabilities, A Pension Trust that manages retirement benefits, A Unit Trust that invests in diversified portfolios and Real Estate Investment Trust (REIT) that focuses on real estate investments.
Trust Fund Purposes are multi faceted and entails, Estate planning and wealth management, tax minimization, asset protection, charitable giving, retirement planning, education and healthcare support amongst other endeavors.
Trust Fund Benefits are inherent and make for flexibility and control, asset protection, tax efficiency, professional management, legacy planning within a concise framework. As with all endeavors, drawbacks are inevitable. These are due to complexity and costs, lack of control (irrevocable trusts), tax implications, regulatory requirements and potential for dispute resolution.
There are notable Trust Funds globally, Bill and Melinda Gates Foundation, Ford Foundation, Rockefeller Foundation, United Nations Development Program (UNDP) Trust Fund, Global Fund to Fight AIDS, Tuberculosis and Malaria and not forgetting our own NLTF (National Lottery Trust Fund) with the capacity and readiness to operate to global standards.
This article is a general overview of trust funds. NLTF (National Lottery Trust Fund) is a specific example and reference of what a trust fund stands for in terms of national, regional and sub national context and requirements coupled with expected collaboration with other government agencies.
NLTF as an agency of the federal government is a leading advocate of the value of lotteries as an alternative source of revenue to complement the efforts of the Federal Government.
It is a financial vehicle used to manage assets for the benefit of individuals, organizations, or causes. Established by an Act of Law by the Federal Government who also doubles as the highest contributor of assets to the fund.
It operates not only as a Trust Fund but also as a financial Intermediary fund for development with a serious yearning for Global, Continental and National Funds plus a good presence of Public-Private Partnership.
The NLTF does operate with strategies that include diversification, risk management, active management, passive management and Impact investment management, accounting and reporting, compliance and regulatory oversight and beneficiary support.
With the nascent administration that promises renewed hope and a young vibrant Executive Secretary at the helm of affairs at NLTF, expectations of Nigerians are high.
