Registration or purchase of a ready-made charitable foundation in Ukraine in 2023?

In Ukraine, both registering a new charitable foundation and buying an existing one have their advantages and disadvantages.

Creating a new charitable foundation offers more control over the direction and goals of the organization. Founders have the freedom to shape the foundation’s mission, structure, and activities from the ground up. However, this process can be time-consuming and complex, requiring extensive legal and administrative work.

On the other hand, purchasing an existing foundation allows for a quicker entry into the philanthropic world and the ability to benefit from the foundation’s established reputation and existing networks. However, the goals and direction of the foundation may not align with the buyer’s vision, and significant changes to the foundation’s structure and activities may not be possible.

Ultimately, the decision of whether to register a new foundation or purchase an existing one depends on the specific goals and needs of the individual or organization in question. In both cases, it is important to thoroughly research and consider the legal and administrative requirements, as well as the potential benefits and drawbacks, before making a decision.

Our company can offer both options: both to create a charity organization for you from scratch, and to offer an already registered foundation, for which there has been no active work before. For more information, please contact our specialists via whatsapp.

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

The benefits of registering a new charitable foundation in Ukraine

The benefits of registering a new charitable foundation in Ukraine include:

1. Control over mission and activities: When registering a new foundation, the founders have complete control over the mission and goals of the organization, as well as the structure and activities carried out to achieve these goals.

2. Customization: New foundations can be customized to meet the specific needs and goals of the founders, allowing for a unique and personalized approach to philanthropy.

3. Flexibility: With a new foundation, the founders have the flexibility to make changes and adapt as needed, ensuring that the foundation remains relevant and effective over time.

The procedure for registering a new charitable foundation in Ukraine involves several steps, including:

1. Preparation: Founders should gather all necessary information and documents, including articles of incorporation, bylaws, and a list of founding members.

2. Submission of documents: The next step is to submit the necessary documents to the relevant government authorities, such as the Ministry of Justice.

3. Approval: Once the documents have been reviewed and approved, the foundation will be officially registered and recognized as a legal entity.

4. Obtainment of tax ID: After registration, the foundation must obtain a tax identification number and register with the tax authorities.

5. Ongoing compliance: Ongoing compliance with government regulations, including annual reporting and tax filing, is necessary to maintain the foundation’s legal status and operational effectiveness.

It is important to note that the process of registering a new foundation in Ukraine can be complex and time-consuming. Founders are advised to seek professional assistance to ensure a smooth and successful registration process.

You can learn more about the registration process here. Or just contact us for ordering the procedure.

Related article: What taxes does a charitable foundation pay in Ukraine?

The benefits of buying an existing charitable foundation in Ukraine

The benefits of buying an existing charitable foundation in Ukraine include:

1. Speed: The process of buying an existing foundation is generally quicker than starting a new one, allowing for a faster entry into the philanthropic world.

2. Established reputation: An existing foundation comes with an established reputation and existing networks, which can be leveraged to increase the impact and reach of philanthropic efforts.

3. Access to resources: Buying a foundation can provide access to existing resources, including staff, funding, and partnerships, which can help to achieve philanthropic goals more effectively.

However, it is important to be aware of the following when considering the purchase of an existing foundation in Ukraine:

1. Alignment of goals: The goals and mission of the existing foundation may not align with the buyer’s vision, and significant changes to the foundation’s structure and activities may not be possible.

2. Legal and financial considerations: The legal and financial aspects of the purchase should be thoroughly reviewed and understood to ensure that the transaction is in compliance with Ukrainian law and that the buyer is fully aware of the financial obligations and responsibilities involved.

3. Due diligence: Careful due diligence is necessary to ensure that the foundation is in good standing and that there are no legal, financial, or operational issues that could negatively impact the buyer’s investment.

Buying an existing foundation in Ukraine can provide a faster path to philanthropic efforts and offer access to established resources and networks. However, it is important to carefully consider the alignment of goals, legal and financial considerations, and to conduct thorough due diligence before making a decision.

Our company offers its own solution to the problem - we offer our clients a choice of several previously registered charitable and non-profit organizations, for which no activities were conducted. They were registered by our company, all documents are in order. Their advantage is several years of existence in the registers of Ukraine, as well as the speed with which you can start a foundation.

Related article: Purchase of a charitable foundation in Ukraine with re-registration

How to work with the charitable foundation in Ukraine?

Charitable foundations in Ukraine face a number of challenges and struggles in their efforts to make a positive impact in society. Some of the main struggles include:

1. Limited funding: Charitable foundations in Ukraine often struggle to secure sufficient funding to support their mission and activities. This can limit their ability to have a significant impact and can make it difficult to sustain operations over time.

2. Lack of public trust: There is a lack of public trust in charitable foundations and other non-profit organizations in Ukraine, which can make it difficult for foundations to engage with potential donors and partners.

3. Bureaucratic hurdles: The legal and administrative processes involved in setting up and running a charitable foundation in Ukraine can be complex and time-consuming, requiring significant resources and expertise.

4. Competition for resources: With a limited pool of funding and resources, charitable foundations in Ukraine face significant competition from other organizations and initiatives, making it challenging to secure support and make a meaningful impact.

5. Inadequate legal framework: The current legal framework for charitable foundations in Ukraine is inadequate, with limited protections and support for foundations and their activities. This can make it difficult for foundations to operate effectively and achieve their goals.

Charitable foundations in Ukraine face a number of challenges and struggles in their efforts to make a positive impact in society. Addressing these challenges will require a combination of efforts from foundations, government, and other stakeholders, including greater support and resources, a more supportive legal framework, and increased public trust and engagement.

From our side we offer comprehensive assistance in solving any legal and accounting issues of the fund in Ukraine. You will have a reliable rear and not be afraid that something will go wrong in accounting. All this is possible if you use the services of a complex support from our company.

You will be able to focus on the main tasks of the fund and on the assistance which you plan to provide in Ukraine. We will take care of the protection of your foundation.