(UKRAINE) LAW ON CHARITY AND CHARITABLE INSTITUTIONS
 
 
(UKRAINE) LAW ON CHARITY AND CHARITABLE INSTITUTIONS

 This Law determines the main principles of charity, secures legal regulation  of  relationships in society aimed at the  development  of charity,  asserting humanism and benevolence, guaranteeing  government support of all persons doing good works, and providing conditions  for the  adequate operation of charitable institutions1 in accordance with the laws of Ukraine.

 

Chapter I.     General Provisions Article 1.
Terminology The  following terms and notions contained in this Law  shall  be interpreted as stated below:
-  charity shall be understood as voluntary selfless donations by natural  and legal persons to beneficiaries in the form of  financial, institutional,  and  other assistance;  patronage [of  literature  and arts]  and  sponsorship  shall be regarded as two  specific  forms  of charity;
-   charitable  activities  shall  be  understood  as   voluntary disinterested activities on the part of charitable institutions; ( The Paragraph  changed  and amended according to Law of Ukraine # 3091-III ( 3091-14 ) of March 07, 2002 ) -  charitable  institution shall be understood as a nongovernment organisation meant basically to conduct charitable activities for  the benefit of society and separate categories of individuals as per  this Law;
-  benefactor  shall be understood as a legal or  natural  person engaged in charitable activities in the interests of the beneficiary;
- beneficiary shall be understood as a natural or legal person in need of and receiving charitable assistance;
-   patronage   shall   be  understood  as  the   voluntary   and disinterested material, financial, logistical and other  support   for recipients    of    the   charitable   aid   by   individuals;   ( The Paragraph  in  the  wording  of Law  of Ukraine # 3091-III ( 3091-14 ) of March 07, 2002 ) -  sponsorship  shall  be understood as the  voluntary  material, financial,  logistical  and  other  support  for  recipients  of   the charitable aid by individuals and legal entities in provided in  order to  promote solely own name, trade or service mark. ( The Paragraph in the   wording    of   Law   of   Ukraine   # 3091-III  ( 3091-14 )  of March 07, 2002 )

 

Article 2.
Principles of Charity and Charitable Activities Charity  and  charitable activities shall be implemented  on  the principles of legality, humaneness, common interests, equality of  all parties, openness, voluntariness, and self-administration.
The  efforts of benefactors and charitable institutions shall  be public  by  nature, which does not contradict their co-operation  with government  authorities,  and  does not  deprive  them  of  government assistance. ( The Paragraph changed and amended according  to  Law  of Ukraine # 3091-III ( 3091-14 ) of March 07, 2002 ) Natural  and legal persons make engage in charity on its  own  or together with relevant charitable institutions  registered in  keeping with  legally  set  procedures. ( The Paragraph  changed  and  amended according to Law of Ukraine # 3091-III ( 3091-14 ) of March 07, 2002 ) The  President  of Ukraine, People's Deputies of  Ukraine  [MPs], officials    of   government  bodies    and     organs     of    local self- administration, along with their families, may engage in charity only within the limits of incomes received and duly declared.

 

Article 3.
Laws on Charity and Charitable Institutions Charity  and  charitable institutions shall be  governed  by  the Constitution  of  Ukraine,  this Law, and other  regulatory  acts  and elements of law dealing with charity and charitable activities.
If   an   international  treaty  to  which  Ukraine  is  a  party establishes rules other than those set forth in the laws of Ukraine on charity  and  charitable institutions, the rules of this international treaty  shall have precedence, provided these rules were  approved  by the Supreme Council of Ukraine.

 

Article 4.
Basic Trends in Charity and Charitable Activities Charity  and  charitable activities shall be  basically  directed along these lines:
-  assistance in the implementation of national, regional, local, and  international  programmes aimed at improving  the  socio-economic situation;
-  bettering the beneficiaries' material condition, assisting  in the social rehabilitation of the destitute, invalids, other persons in need  of  help,  and  aiding people who because of physical  or  other defects  are  unable  to  fully  implement  their  rights  and  lawful interests;
-  aiding  victims  of calamities, ecological,  technological  or other  disasters, social conflicts, accidents, and purges, as well  as refugees;
-   assisting  in  the  development  of  science  and  education, implementation   of   research  and  educational  programmes,   aiding scientists, teachers, and students;
-  assisting  the  development  of  culture,  including  national cultural  development programmes, securing access to  cultural  values and creativity for all strata, especially the needy;
- iding talented youth;
-  assisting  in  the  preservation  of  the  cultural  heritage, historical and cultural relics, memorial and burial sites;
- assisting in the development of the publishing industry, media, and information infrastructure;
- assisting in the development of nature preserves and ecological programmes;
-  assisting  in  the development of health care,  mass  physical education,   sports,  and  tourism,  propagandising  healthy   habits, participating in public health protection programmes, social  care  of the  ailing, solitary elders, and other persons who because  of  their physical, financial or other problems need social assistance and care;
-  assisting  with  the protection of maternity  and  child-care, aiding large and  low-paid families.
Specific  charity targets shall be designated by benefactors  and laid down in the statutes of benevolent associations.

 

Chapter II.    Organisation and Legal Regulation of Charity and Activities of Charitable Institutions Article 5.
Founders of Charitable Institutions Charitable  institutions may be founded by citizens  of  Ukraine, foreign  subjects, and stateless persons on reaching 18 years of  age, as well as by legal entities regardless of the form of ownership.
Government  authorities,  local self-administration,  state-  and communally-owned  enterprises,  institutions,  and  organisations   of Ukraine  being  sustained  by the budget  shall  not  be  eligible  as founders of charitable institutions.
The founder of a charitable organisation shall make a decision to establish the charitable organisation, approve its charter, set up the organisation's  management  body,  hear  reports  of  the  supervisory council  regarding  the  control over the  utilisation  of  funds  and property of the charitable organisation for designated purposes, solve other issues included into its scope of competence by this law and the charter  of  the charitable organisation. ( The Paragraph changed  and amended  according to Law of Ukraine  #3091-III ( 3091-14 )  of  March 07, 2002 ) If  a charitable organisation is founded by two or more entities, the  issues listed in part three of this article shall be solved at  a general  meeting (congress, conference) of founders of the  charitable organisation. ( Paragraph 4 added to the Article according to  Law  of Ukraine  #3091-III ( 3091-14 ) of March 07, 2002 )

 

Article 6.
Organisation and Legal Forms of Charitable Institutions Charitable  institutions may be established having the  following organisation structures:
- member charitable organisation;
- benevolent foundation;
- charitable institution;
- other charitable organisations (foundations, missions, leagues, etc.).
Specific  organisation and legal forms of charitable institutions shall be determined by their founders.


Article 7.

Status of Charitable Institutions Charitable institutions shall be created and shall operate on the territorial  principle,  grouped, in  terms  of  official  status,  as all- Ukrainian, local, and international organisations.
The   all-Ukrainian   status  shall  be   due   such   charitable institutions  whose  activities spread over the  entire  territory  of Ukraine,   with   branches   (offices,   representations)   in    most [administrative] regions.
The  local  status shall be due charitable institutions operating in separate regions or other administrative-territorial units.
The  international  status shall be due  charitable  institutions operating in Ukraine and at least one other country.
Registered    all-Ukrainian    and    international    charitable institutions  shall  have the right to set up offices,  branches,  and representations in keeping with procedures established by the  Cabinet of Ministers of Ukraine.
The  territory  in  which a charitable institution  will  operate shall be determined in accordance with its statute (articles).

 

Article 8.
Official Registration of a Charitable Institution A  charitable  institution shall acquire the legal entity  status once its has been officially registered.
Official   registration   of  all-Ukrainian   and   international charitable  institutions  shall be carried  out  by  the  Ministry  of Justice  of Ukraine, and of local charitable institutions, as well  as offices (branches, representations) of all-Ukrainian and international charitable institutions, by the relevant local executive authorities.
Official registration shall be performed in return for a fee, the amount  of  which  shall  be adopted by the Cabinet  of  Ministers  of Ukraine,  provided  it  does  not exceed 3 untaxed  minimum  citizen's incomes.  (  The  Paragraph changed and amended according  to  Law  of Ukraine  #3091-III ( 3091-14 ) of March 07, 2002 ) The   following  documents  shall  be  submitted   for   official registration:
-  application  signed  by the founder(s) or  authorised  persons thereof;
- the statute (articles);
- protocol of the constituent meeting (convention, conference);
-   information  about  the  founder(s),  administrative  bodies, offices (branches, representations);
- a document attesting to the payment of the registration fee.
An  application  for the official registration  of  a  charitable institution  shall be processed within two months  from  the  date  of presentation  of  all  the  required  documents.  The  result  of  its consideration  shall  be notified the applicant within  10  days.  The registration  authority  may  verify  information  contained  in   the documents thus submitted. Depending on the results of consideration of the  application, official registration shall be granted  or  refused.
Following  official  registration, the founder(s)  of  the  charitable institution shall be issued a registration certificate using the  form adopted by the Cabinet of Ministers of Ukraine.
Registered,  the charitable institution shall be entered  in  the register  of charitable institution kept by the registration authority and  allocated a special number. All such registers shall be  kept  in accordance with procedures established by the Cabinet of Ministers  of Ukraine.
Information  about  charitable institutions registered  with  the Ministry  of  Justice  of Ukraine shall be made  public  knowledge  in official publications.
Each   charitable  institution,  after  receiving   an   official registration certificate, shall register with the local tax  authority within a month's time.
Each  charitable  institution shall within  10  days  notify  the registration authority on all changes in its statutory documents.
A   decision   on  the  official  registration  of  a  charitable institution  may be rescinded in due course of law if the registration authority finds any of the statutory documents to have been falsified.
Several charitable institutions shall not be registered under the same name.
Should several charitable institutions having the same name apply for  official  registration, the application  submitted  the  earliest shall be considered

 

Article 9.
Refusal of Official Registration Transgressions  of  any  of  the  procedures  of   formation   of charitable  organisations established by this Law and other regulatory documents  and elements of law of Ukraine, or the presence of  another charitable  institution under the same name shall warrant  refusal  of official registration.
If  a charitable institution is issued a legal address being  the same  as  the  address (place of residence) of a natural person,  this shall not warrant refusal of official registration.
A  decision refusing official registration may be appealed  to  a court  of  law  in  keeping  with procedures  legally  established  in Ukraine.


Article 10.

Reorganisation of a Charitable Institution A charitable institution may be reorganised if so resolved by its highest   administrative  body,  in  accordance   with   its   statute (articles).
In  the  event of reorganisation, all rights and responsibilities shall be inherited by the legal successor.
A   charitable  institution  shall  not   be  reorganised  as   a profit- making legal entity.

 

Article 11.
Liquidation of a Charitable Institution A  charitable  institution shall be liquidated  in  keeping  with legally set procedures.

 

Article 12.
Statute (Article) of a Charitable Institution A  charitable institution shall function in accordance  with  its statute (articles).
Each such statute (articles) shall indicate:
- name, address, status, and organisation and illegal form of the charitable institution;
- objectives, tasks, and basic forms of charitable activities;
-  procedures  of  formation and operation of the  administrative bodies;
-  sources of finance and procedures of use of property and funds of the charitable institution;
-  procedures of reorganisation or liquidation of the  charitable institution, and application of its property and funds in the event of termination;
- terms and conditions of membership and withdrawal;
- rights and obligations of members.
The  statute  (articles) may include other clauses in conjunction with operational specifics.
The statute (articles) shall not contradict the laws of Ukraine.

 

Article 13.
Rights of Charitable Institutions In  order  to  conduct their activities, charitable  institutions shall have the right to:
- independently resolve matters relating to benevolent assistance and  beneficiaries,  and use donations meant for charity  programs  in keeping with their designated purpose;
- set up branches, offices and representations in accordance with the laws of Ukraine;
-  join benevolent unions, associations, etc., established  on  a voluntary  basis  and  being instrumental in  reaching  the  statutory goals;
- exchange data and experts with foreign counterparts;
-  launch  fund-raising  campaigns involving  natural  and  legal persons, foreign governments, and international organisations;
-  constantly determine forms, objects, subjects, and amounts  of charity;
- open bank accounts in the national and foreign currencies;
-  set  up  mass media, enterprises, organisations, and  go  into publishing;
- become members of other charitable institutions;
-  have  their own symbols [emblems, logos], subject to  official registration  in  keeping with procedures set  forth  in  the  Law  of Ukraine On Citizens' Associations, where it stipulates registration of symbols [emblems, logos] of citizens' associations;
- promote their names (symbols, emblems, logos);
- have other rights in accordance with the laws of Ukraine.

 

Article 14.
Obligations of Charitable Institutions Each  charitable  institution shall be under  the  obligation  to carry out the tasks laid down in its statute, have free access to  its reports on economic and financial performance. The founders and  staff members  shall  have  the  right  to  receive  material  benefits  and additional  funds  on  the strength of their  ranks/positions  in  the charitable organisation, except those envisaged by this Law.

 

Article 15.
Charity Programme Charitable institutions shall adopt charity programmes consisting of measures aimed at solving benevolent tasks in conformity with their statutory goals.
Each  such  programme shall be financed using all funds  received during the fiscal year from enterprises and organisations owned by the charitable  institution, barring administrative  and  general  service expenses.  Long-term charity programmes shall be  carried  out  within time-limits stipulated therein.

 

Article 16.
Forms of Charitable Activities Benevolent assistance may be rendered in the form of:
- single  financial, material or other aid;
- systematic financial, material or other aid;
- financing target-oriented programmes;
- aid granted under charity agreements (contracts);;
-  donation  or permission to use property free of charge  or  on preferential terms;
- permission to use one's name, emblem, logo, etc.;
- assistance with one's own work, services or assignment of one's intellectual property;
- financing free complete or partial use of charity objects;
- other forms of charity not prohibited by the law.
Charity  in  the  form  of specific works (services)  subject  to compulsory  certification or licensing shall  be  allowed  after  such certification or licensing, in keeping with procedures established  by the laws of Ukraine.

 

Article 17.
Management Bodies of a Charitable Institution The  highest  management body shall be collective (e.g.,  general meeting,   convention,  conference),  discharging  its  authority   in accordance with the statute (articles) of this charitable institution.
Its  competence shall include approval of the statute (articles), changes   therein,   election   of  the  executive   and   supervisory authorities, adoption of charity programs, determination of priorities and guidelines, decisions on reorganisation and liquidation, and other matters   envisaged  by  the  statute  (articles)  of  the  charitable institution.
The  board  (committee)  shall  be  the  executive  body  of  the charitable  institution. Its jurisdiction shall be determined  by  the statute  (articles).  Daily  management  shall  be  entrusted  to   an administrative-executive    body    headed    by     the     president (director/general manager) and its competence shall be  determined  by the statute (articles).
Regulatory  and  controlling  powers  shall  be  vested  in   the supervisory  council  whose  membership shall  be  determined  by  the founder(s).
Except  the president, no member of the executive body shall   be paid  a  salary.  Expenses  sustained in  the  line  of  duty  may  be reimbursed  if  so  resolved  by  the  board  (committee),  using  the charitable institution's funds.
Workers  of the charitable institution's office shall be  subject to  the  laws  of  Ukraine  on  labour, social  security,  and  social insurance.

 

Chapter III.   Financial Support of Charity Article 18.
Property of  Charitable Institutions Charitable  institutions may own movable and immovable  property, tangible and intangible assets, funds, and other property acquired  on lawful grounds.
Each  charitable  institution shall have the right  to  make  any contracts  with  regard to its property and funds,  inasmuch  as  such contracts  do  not  contradict its statutory objectives  and  laws  of Ukraine.

 

Article 19.
Sources of Property and Funds of Charitable Institutions Property and funds owned by charitable institutions shall be made up of:
- contributions made by the founder(s) and other benefactors;
-  target-oriented donations (charity grants) provided by natural and legal persons, pecuniary and in kind;
- proceeds from benevolent fund-raising campaigns, lotteries, and auctions selling property and other donations supplied by benefactors;
-  yields from deposits and securities, revenues from enterprises and organisations owned by charitable institutions;
- other sources not prohibited by the laws of Ukraine.
Credits [loans] shall not be used as sources of property or funds of charitable institutions.
Property   or   funds  of  charitable  institutions   shall   not pledged/mortgaged.

 

Article 20.
Business Activity of a Charitable Institution Each  charitable  institution shall  conduct  business  aimed  at reaching its statutory goals and carrying out tasks.
Each  charitable  institution shall be independent  in  resolving business matters, determining wages for the office staff, using  funds and  other  tangible assets in accordance with the laws  currently  in effect.
The  amount spent to sustain a charitable institution  shall  not exceed 20% of its budget in the current year.
Natural and legal persons donating part of their incomes, savings or  property  to charity projects shall be entitled to tax  and  other preferential terms in accordance with current legislation.
Charitable  institutions sustained only by  membership  dues  and donations  shall be exempted from taxation and other payments  to  the budget and special funds.

 

Article 21.
Financial Activity of a Charitable Institution Charitable institutions shall keep funds for business and charity projects  on  separate bank accounts, in terms of  both  national  and foreign currencies.
The  National  Bank  of  Ukraine shall adopt  the  procedures  of opening and managing such accounts of charitable institutions.
A charitable institution's financial activities shall be governed by  the laws of Ukraine. Such activities aimed at achieving charitable goals  shall  not  be  qualified as business  or  other  profit-making endeavours.
Proceeds   from   the  financial  activities  of   a   charitable institution  shall be channelled exclusively in charity  projects  and supplying  this organisation's needs, in amounts and in  keeping  with procedures established by this Law.


Article 22.

Control over Charitable Institutions Executive authorities, acting within their respective competence, shall exercise control over charitable institutions, including use  of their property and funds for charitable purposes.
Controlling  executive  bodies, acting  within  their  respective competence,  shall  have the right to request [and receive]  any  such documents  and explanations from charitable institutions as  they  may require.
Benefactors assigning their property and other tangible assets to charitable institutions shall at their request receive  reports on how this  property and assets are being used. If such property and  assets are  transferred  for  a designated purpose, the receiving  charitable institution  shall  be  under the obligation to  keep  the  benefactor informed on how these donations are being used.

 

Chapter IV. The State and Charity2 Article 23.
Government Support of Charity The  state,  as  represented by its bodies  of  authority,  shall guarantee and secure protection of the rights and interests of natural and  legal  persons  involved in charity and benevolent  projects,  as provided by law.
Except  in  cases  stipulated  by  this  Law,  bodies  of   state authority, local self-administration, and officials thereof shall  not interfere  with  charitable institutions,  and  nor  shall  charitable institutions  interfere  with  bodies  of  state  authority  and local self- administration.


Article 24.

Accounting at Charitable Institutions The  amount  and  forms of statistical accounting  at  charitable institutions shall be adopted by the Cabinet of Ministers of  Ukraine, taking into consideration their specifics.
Forms and procedures of execution of balance reports relating  to the funds and property of charitable institutions shall be adopted  by the central tax authority, with an allowance for their specifics.

 

Article 25.
Responsibility for Transgressions of the Laws on Charity and Charitable Institutions Persons  guilty of transgressions of [any of] the laws on charity and  charitable institutions shall be held responsible under Ukraine's legislation.

 

Chapter V.     International Charity Article 26.
Charitable Activities in the International Arena Persons  engaged in charity shall have the right to conduct  such activities on an international scope as per this Law, other regulatory documents,  elements  of  law,  and international  treaties  to  which Ukraine  is a party and which were approved by the Supreme Council  of Ukraine.
International  charity shall be implemented by  participating  in international  eleemosynary projects and otherwise, inasmuch  as  this does  not  contradict the laws of Ukraine and norms and principles  of international law.
Co-operation  with the Ukrainian Diaspora shall be  considered  a priority in [Ukraine's] international charity.
Beneficiaries and charitable institutions shall have the right to receive   donations  from  natural  and  legal  persons  in  different countries.

 

Article 27.
Charity on the Part of Foreign Subjects, Stateless Persons, Foreign and International Organisations in Ukraine Foreign  subjects,  stateless persons, foreign and  international organisations  in  Ukraine shall have the right to conduct  charitable activities. One form of such charity shall be humanitarian  and  other material  aid, whose procedures shall be determined by the Cabinet  of Ministers of Ukraine.

 

Chapter VI. Closing Provisos 1. This Law shall take effect on the date of publication.
2.  Until such time as all the relevant laws have been brought in conformity   with  the  Law  of  Ukraine  On  Charity  and  Charitable Institutions, Ukraine's regulatory documents ad elements of law  shall be applied inasmuch as they do not contradict this Law.
3. The Cabinet of Ministers of Ukraine shall within two months:
-  submit proposals to the Supreme Council of Ukraine on how best to  bring the laws of Ukraine in conformity with the Law of Ukraine On Charity and Charitable Institutions;
- bring the government's decisions in conformity with this Law;
- secure revision and nullification, by executive authorities, of any normative documents running counter  to this Law;
- secure the adoption of regulatory documents and elements of law envisaged by this Law and which are within the Cabinet's jurisdiction.

 

     Leonid Kuchma, President of Ukraine City of Kyiv, September 16, 1997 #531/97-VR

 

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