Charitable Support for the Armed Forces of Ukraine

One of the most common questions charitable foundations face today is: Can an organization whose statute does not explicitly provide for support to the Armed Forces of Ukraine (AFU) deliver such assistance during martial law?

Regulation Under Normal Circumstances

Under ordinary conditions, the Tax Code of Ukraine stipulates that non-profit organizations may use their funds without tax implications only for the purposes set out in their founding documents. Spending on other activities could previously jeopardize their non-profit status.

Changes During Martial Law

With the outbreak of full-scale aggression, legislation was amended. According to the updated provisions of the Tax Code of Ukraine:

• non-profit organizations, regardless of their statutory objectives,
• may provide unrestricted support to the Armed Forces of Ukraine and other defense-related entities,
• and such actions are not considered misuse of income or a violation of non-profit status.

This applies not only to monetary donations but also to the transfer of property, goods, or services.

Eligible Recipients of Assistance

The law establishes a specific list of beneficiaries, including:

• the Armed Forces of Ukraine,
• the National Guard of Ukraine,
• the Security Service of Ukraine,
• the Foreign Intelligence Service of Ukraine,
• the State Border Guard Service of Ukraine,
• the Ministry of Internal Affairs of Ukraine,
• volunteer territorial defense units,
• and other military formations established under Ukrainian law.

Required Documentation

To minimize legal and tax risks, charitable organizations should properly document such assistance, including:

• Charitable assistance agreement (detailing the type and purpose of the aid);
• Acceptance-transfer act (specifying the assets, quantity, value, and parties’ details);
• Official request for assistance from the beneficiary;
• Bank statements or other financial documents;
• where necessary, photo or video evidence of the transfer.

Proper documentation not only ensures transparency but also protects the foundation from claims by regulatory authorities.

Liability for Violations

• Administrative liability: fines for improper bookkeeping (from UAH 85 to 255).
• Criminal liability: since March 2022, the Criminal Code of Ukraine includes penalties for the unlawful use of humanitarian or charitable aid for profit.

Conclusion

During martial law, charitable foundations are legally entitled to provide support to the Armed Forces of Ukraine and other defense entities even if such activities are not expressly stated in their statutes. The key requirement is proper documentation, compliance with accounting rules, and transparency in the use of funds.