Chief Lawyer, BGV Charity Fund
Let’s start with the legal definitions.
The Law of Ukraine, “On Charitable Activities and Charitable Organizations,” does not directly define “charitable assistance.” Instead, it provides:
Charitable activity: Voluntary personal and/or property assistance for the purposes defined by this Law, which does not involve profit for the donor, nor any reward or compensation to the donor on behalf of or by order of the final recipient.
Targeted free aid in cash or in-kind, as non-repayable financial assistance or voluntary donations, or in the form of services or work, provided by foreign and domestic donors for humanitarian reasons to those in need in Ukraine or abroad due to social vulnerability, lack of material resources, financial hardship, martial law or emergencies, occurrence of an emergency, or severe illness, as well as for the preparation for armed defense of the state and its protection in the event of armed aggression or conflict (Article 1 of the Law of Ukraine “On Humanitarian Assistance”).
Free transfer of funds, property, or property rights to beneficiaries by a donor to achieve specific, predetermined philanthropic purposes according to this Law (Article 6 of the Law of Ukraine “On Charitable Activities and Charitable Organizations”).
Previously, all humanitarian assistance was considered a type of charity, but from January 1, 2024, this provision was removed from the Law of Ukraine “On Humanitarian Assistance.” Now, humanitarian assistance is a separate concept, although it shares many similarities with charitable assistance. Let’s focus on their differences.
Charitable assistance is a broader concept because it includes assistance given without specific adverse circumstances, such as donations for building a church. On the other hand, humanitarian assistance is only provided due to specific adverse circumstances.
Donors of charitable assistance can be individuals and private legal entities only. Public or municipal organizations cannot provide charitable assistance, whereas there are no such restrictions for humanitarian assistance.
Charitable assistance can be provided to an undefined group of recipients. In contrast, humanitarian assistance is only given to a specific list of registered humanitarian aid recipients, such as public associations, non-profit state, and municipal organizations, local government bodies, the State Emergency Service, the Ukrainian Red Cross Society, charitable organizations, religious organizations, organizations that rehabilitate disabled persons, social service providers, designated medical and/or rehabilitation service providers, healthcare institutions, etc.
In turn, the organization receiving humanitarian assistance distributes it among the beneficiaries of humanitarian assistance, who can include individuals.
if a charitable organization decides to provide humanitarian assistance to those affected by the destruction of the Kakhovka dam through the local council, the charitable organization will act as the donor, the local council as the recipient of humanitarian assistance, and the local population as the beneficiaries of humanitarian assistance.
Charitable donations can be part of either charitable or humanitarian assistance, depending on the recipient and circumstances.
A key feature of a charitable donation is that it is given for specific purposes defined in the donation agreement. The recipient must use it strictly for those purposes, and the donor has the right to monitor its use. If the recipient fails to use the donation as intended, the donor can demand its return.
