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Our advice regarding drafting of charter of charity

A content of charter is one of the main factors for a charitable organization’s activity definitely.

We have to admit at the beginning of this article that establishers of a charitable organization often don’t understand and realize it during the registration and future activity. They suppose that a charter is a standard document and the main requirement for it is writing a charter to prevent state body’s remarks while procedure of registration.

So there are a lot of questions like who can be an establisher of a charitable organization, how many establishers should be, where you have to register an organization and other details.

Who can be an establisher of a charitable organization

Our answer for this is that legal entities and individuals can be establishers of a charitable organization. It means that charitable organizations can be established by foreigners, LLCs, public associations and even other charitable organizations! Of course, citizens of Ukraine can be establishers also. The law doesn’t regulate the number of establishers. It means that one person or one legal entity is enough for this. Establisher must be above 18 years old.

The charitable organization’s management

Charitable organization’s management is defined by the law. General meeting of establishers, executive body and supervisory board are related to the charitable organization’s management. At the same time the law doesn’t demand to establish a supervisory board if there are less than 10 members. Establishers decide by themselves whether to establish an executive body or not. The law doesn’t have any requirements for it. An executive body can be individual (Director, President) or collegiate (Board, Council). Establishers often choose an individual type of executive body and call it President.

Address of a charitable organization

There are also a lot of questions about address of future organization. It is not an obligation to put a legal address in a charter but Clients wish to put it in a charter in the most cases. We recommend doo not put it in a charter. That’s why You won’t have to pay for a notary confirmation of a new edition of a charter when the address is changed.

And, of course, it is allowed to register a charitable organization according to the place of establisher’s registration.

There are a lot of other questions which occurred during the registration but it is not impossible to look through all of them in this article. That’s why we would like to admit that there are other not so clear clauses of the law. If You understand them not correctly then there may be troubles for organization’s activity in the most cases.

One of these matters is getting a non-profitable organization a non-profitable status. Inclusion to the Register of non-profitable organizations is conducted by the State Fiscal Service of Ukraine. The copy of a charter is one of the main documents which is submitted to the State Fiscal Service of Ukraine. According to its content state body decides whether include an organization to the Register.

The examination of these clauses we will continue in our future articles.

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