Charitable activities are presently highly significant for our country, and it's no surprise that the number of charitable foundations is steadily increasing. A substantial amount of assistance comes from friendly nations and empathetic foreigners. Consequently, certain foundations should be granted international status. What is it, and how can such a foundation be established? Let's delve into this in detail in our article.
Creating a Charitable Foundation in Ukraine
Creating a charitable foundation commences with a firm decision by an individual to establish it. In terms of legal aspects, this decision must be documented in writing, along with an approved charter and a registration application, all of which are submitted to the registrar.
A charitable foundation can be created not only by an individual but also by a legal entity. There is no limit to the number of founders. It all begins with document preparation: the minutes of the general meeting of participants or the decision of a sole participant, along with the coordination and signing of the charter. If there is only one participant, there's no need for coordination, of course. You just need to be aware of the basic requirements for the charter, as we discussed in our article "Charitable Foundation Charter: What You Need to Know."
In summary, the charter must include information required by the "On Charitable Activities and Charitable Organizations" law and tax legislation for non-profit organizations. This includes the foundation's objectives, governing bodies, and the procedure for their election/re-election, as well as the grounds for the foundation's termination.
Another crucial document is the minutes of the general meeting regarding the foundation's establishment. If there is a single founder, the minutes are documented as a decision. This should also be provided for in the foundation's charter. The agenda for the meeting should encompass topics such as the foundation's establishment, the appointment of its leader/members of governing bodies, approval of the foundation's charitable program, and other issues deemed significant by the participants for record-keeping.
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Registering a Foundation in Ukraine
If you're unsure about where to submit your registration documents, it's advisable to turn to a private notary who has access to registration procedures. However, if you're not in a rush and are prepared to handle potential refusals and reapplications, possibly more than once, you can opt for the Administrative Services Center. This option is cost-free but can be time-consuming.
International Status of the Foundation
The term "international status" may sound impressive and can mislead many, if not all, into thinking it represents a transnational organization with branches in nearly every country, or at the very least, a presence in numerous places. Let's clarify this further.
Once upon a time, before 2013, charitable organizations were indeed classified as regional, all-Ukrainian, or international. At that time, meeting certain minimum formal requirements was necessary to attain this status. Specifically, if memory serves correctly, you had to have partners in at least one foreign country.
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In the present day, it's quite straightforward: you can incorporate the term "international" into your foundation's name right from its inception. The international nature of your foundation is determined and validated solely by its name. However, the absence of this term in the name won't hinder collaboration with organizations from other countries. So, whether you plan to engage with foreigners or foreign organizations or not, having the term "international" in your foundation's name won't impose any obligations upon you.
If you require assistance in establishing a foundation, including managing all organizational and preparatory aspects "from start to finish," we are delighted to offer our support. Our team provides the necessary legal consultation and reliable partnership assistance!
