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I registered a charitable foundation in Ukraine - what next? How to work with charitable help?

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Even before registering a charitable foundation you should already understand what kind of aid you will put on the foundation's balance, and how you will distribute it to the goals of the foundation - transfer it to the final recipients, etc.

Today we will talk about how exactly charitable aid can get on the foundation's balance sheet, and what to do with it next.

If you want to understand how it will be exactly for your fund - our specialists provide such consultations during the registration of the funds in Ukraine.

Standard ways to get help for a charitable foundation

The most common ways of receiving aid are direct transfers to the charity's account, fundraising through "volunteer boxes," and accepting humanitarian aid - that is, non-monetary aid.

There are a few important rules to follow here:

  • If you know that funds will be transferred to the account, or if you are posting a request to transfer funds to a specific account, it is important to provide information about the mandatory purpose of the payment. "For statutory activities" or simply "charitable contribution" is the universal purpose.

  • If we are talking about volunteers who collect funds in sealed boxes, it is necessary for each volunteer to execute a notarized power of attorney to collect such donations on behalf of the foundation. The power of attorney should specify the purpose of collection and the place where the collection will take place. 

  • When receiving humanitarian aid, if we are talking about standard donations such as clothes, books or food - they are accepted under the inventory, and then usually sorted in the logistics centers and passed on. If vehicles or expensive equipment are donated, it is advisable to draw up a contract for the transfer of items to the charitable foundation and an acceptance certificate.

Related article: Registration of a charitable organization in Ukraine and recruitment of volunteers

Non-standard ways of receiving charitable assistance and its distribution

Today cryptocurrency is officially in use in Ukraine. This means that donations can also come in cryptocurrency. Then you can do different things with it. For example, it is possible to withdraw it at the rate of exchange and transfer it to the account of the charitable foundation. Or you can assign a number of crypto wallets to the organization to receive crypto.

As for the distribution of funds, their transfer to final recipients and, most importantly, the accounting of these transactions, it is important first to understand who this final recipient is. What are the purposes for which the fund's funds go. So, today, if your fund transfers funds to help the AFU or the population groups that suffered from the invasion of the Russian Federation, such operations are not subject to any taxation.

If we are talking about tangible assets that you receive for the balance (in large amounts), they may need to be registered in the State Treasury. To do this, you will need documents with an estimate of their value or checks from the benefactor. If it is difficult to establish the value of the property, a commission is set up within the organization and an appraisal is made, after which a certificate of receipt in kind is prepared.

Important: When distributing the fund, it is important to remember that only 20% of the money can be left in the fund for administrative expenses - office maintenance, paying employees, etc.

If you need help with the registration of a charitable foundation in Ukraine, and you want to understand in advance how this fund will work - contact us.

The cost of services can be found here.

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