Civil society

Section 1. Monitoring of the implementation of recommendations on reform priorities for 2020–05.2021

1. To develop and adopt a new state Strategy for Civil Society Development 2021-2026, create a Coordinating Council for Civil Society Development under the Secretariat of the CMU with the involvement of representatives of relevant ministries, CEBs and civil society organizations.

Partially done

In 2020, together with the involvement of representatives of civil society institutions, a new state Strategy for Civil Society Development 2021-2026 was introduced. It provides for the establishment of the Coordinating Council for the Civil Society Development under the Secretariat of Cabinet of Ministers (SCMU) with representatives of sectoral ministries, CEBs and civil society organizations. Despite the expectation that the new Strategy will be adopted in January 2021, as of June 2021 it has only been approved by the Government (June 16, 2021) and needs to be approved by the Decree of the President of Ukraine. The Plan for the implementation of the strategy for 2021-2022 has also not been approved yet.

2. To reject regulations that restrict the freedom of associations (bills restricting CSOs opportunities to receive foreign funding № 3936, № 3564, № 3193-1, №3326; bills restricting the freedom of CSOs to protect the interests of their target groups - bills on lobbying № 3059, № 3059-1, № 3059-2, № 3059-3, bills restricting freedom of assembly (№ 3291), bills restricting the right to work (№ 3326 on the cleansing of power).

Partially done

Despite a number of bills registered in the Parliament that restrict the freedom of association and human rights, only 4 bills on lobbying (№3059, № 3059-1, № 3059-2, № 3059-3) were recognized by the Committee on Legal Policy in 2021 as contradictory to the Constitution of Ukraine and were returned to the authors for revision. Bill №3059 was immediately returned by the author to the Parliament with minor amendments on March 29, 2021. The rest of the bills were not rejected.

3. To introduce online registration of all types of administrative services for CSOs registration and application for non-profitability.

Partially done

Registration of public organizations with the status of a legal entity was introduced in 2019 and the submission of an application for declaring non-profitability online as well as of a record extract was launched in 2020 through the Electronic Office of the Taxpayer. Other services remain unavailable online. The Ministry of Justice of Ukraine has only prepared and submitted a draft law “On Amendments to Certain Legislative Acts of Ukraine Concerning the Normalization of Activities and State Registration of Public Organizations” for public consultation.

4. To increase the amount of non-targeted non-tax-related charitable assistance to people in difficult circumstances to the amount of five subsistence wages.

Not done

Despite the fact that civil society organizations developed a draft law on increasing the amount of non-taxable non-targeted assistance, it has not been registered and adopted yet.

5. To establish tax incentives for businesses involved in charity assistance and to reduce tax pressure on charity recipients.

Not done

Despite the fact that tax incentives for business are provided in the new National Strategy for Civil Society Development in Ukraine for 2021 - 2026 and that civil society organizations drafted a bill that reduces the tax burden on people receiving charitable assistance, the documents have not been registered and accepted yet.

6. To cancel personal income tax on travel expenses, accommodation and meals for volunteers and participants of CSOs.

Not done

Despite the proposals of civil society institutions (CSOs) to the National Strategy for Civil Society Development to cancel personal income tax on travel expenses, accommodation and meals for volunteers and participants of CSOs, the Ministry of Finance blocked this proposal, arguing that it was an attempt to avoid taxation. At the same time, the abolition of such taxation will only reduce the financial burden on CSOs and promote the development of volunteering.

Threats

7. To adopt a new version of the Law on Humanitarian Aid, which provides for simplified procedures for the processing of humanitarian aid.

Not done

8. To ensure that the National Bank of Ukraine prepares an explanation for commercial banks on the procedure for servicing CSO payments for receiving services from non-residents and carrying out financial transactions under foreign economic agreements in order to simplify them. Amend the resolution of the National Bank of Ukraine and cancel the recognition of CSO operations as risky.

Not done

On May 19, 2020, the National Bank of Ukraine in its Resolution № 65 “On Approval of the Regulations on Financial Monitoring by Banks” recognized the operations of non-profit organizations as highly risky in terms of terrorist financing and money laundering.

9. To introduce transparent competitive procedures for public financial support for the Ukrainian Society of the Deaf and the Ukrainian Society of the Blind.

Not done

Despite the efforts of the civil society to introduce competitive funding for CSOs from the state budget, Ukrainian Society of the Deaf and the Ukrainian Society of the Blind continue to receive funding from the state budget without competition.

10. To introduce an electronic project competition for all types of state financial support provided to Ukrainian CSOs.

Partially done

Despite the fact that the work on the portal Vzaemodiia and preparation of the necessary amendments to Resolution 1049 "On approval of the Procedure for tendering to determine programs (projects, activities) developed by civil society institutions for the implementation (implementation) of which financial support" was almost completed, the work was not fully finished and the changes were not accepted.

11. To introduce a program of competitive support to CSO initiatives in all local self-government bodies.

Partially done

The implementation of programs of competitive support of civil society organizations' initiatives by local self-government bodies is uneven. In 2020, the UCIPR re-conducted a study on the financing of veterans' and disabled people's NGOs from local budgets.

In total, in 2020, regional and metropolitan administrations have allocated about 50 million UAH for public organizations of veterans and people with disabilities in local budgets. Of these - UAH 40 million for distribution through project competition and UAH 10 million - without competition.

Compared to 2018, the researchers noted some trends: increased funding in Kyiv and 15 regions. Since 2019, competitions have been launched:

for public organizations of persons with disabilities and veterans (Kyiv, Kirovohrad, Rivne, Kharkiv, Luhansk, Ternopil, Zhytomyr, Zakarpattia, Ivano-Frankivsk regions);
for public associations of persons with disabilities (Dnipropetrivsk, Mykolaiv regions);
for public associations of veterans (Chernivtsi region).

At the same time, a number of regions do not yet have a transparent procedure for providing funds. NGOs of persons with disabilities and veterans in Volyn, Vinnytsia, Donetsk, Zaporizhia, Odesa, Poltava, Kherson, and Chernihiv regions receive funding without a competition. In Chernivtsi region, direct funding is provided to the Ukrainian Society of the Deaf, the Ukrainian Society of the Blind, and the Ukrainian Red Cross Society.

As of 2020, 15 regions and Kyiv have introduced competitions for public associations of veterans and persons with disabilities. One region has a competition only for veterans' associations (Chernivtsi). 8 more regions do not have competitive procedures.

12. To initiate large-scale procurement of social services by local self-government bodies in accordance with the Law on Public Procurement or in accordance with the CMU Resolution “On Approval of the Procedure for Implementing the Social Procurement at the Budget Budget” № 450, from June 1, 2020.

Partially done

Although local authorities can purchase services from CSOs through Prozorro platform or social procurement, only a few local authorities use this tool. The reason is that local governments do not allocate funds in their budgets for such purchases, do not understand the procedure of social procurement, do not have complete information about existing needs (inefficient system for assessing the needs of the population in social services), do not have information about potential providers of such services or their absence.

13. To introduce mechanisms for the purchase of certain types of social services for communities at the expense of the state budget through special state institutions.

Not done

Despite the fact that in 2020 a special program for the purchase of social services was created with allocation of UAH 100 000, it was cut off due to COVID-19.

14. To provide an opportunity for CSOs that receive support from public funds to have administrative and organizational development expenditures.

Not done

UCIPR prepared amendments to Resolution 1049, which provide for the introduction of expenditures on administrative costs and organizational development costs, but these changes were rejected by the Ministry of Finance of Ukraine.

15. To provide on a legislative level an obligation of each community to adopt a statute of a territorial community in which to define procedures for public participation, such as public hearings, local initiatives, budget for participation, public consultation, etc.

Partially done

Despite of the fact that the obligation of territorial communities to adopt the charter of the territorial community was envisaged in the draft law on amendments to the Law on Local Self-Government, the bill was sent for revision. At the moment, no active action is being taken by the authorities on this issue. UCIPR, in its turn, is preparing a bill to solve this problem.

16. To adopt the Law of Ukraine on Public Consultations, which will set out clear procedures for all authorities.

Partially done

The draft law “On Public Consultations” № 4254 was developed and adopted in the first reading on March 5, 2021. The bill improves citizens' access to decision-making at the national and local levels. At the level of the Parliamentary Committee on the Organization of State Power, Local Self-Government, Regional Development and Urban Planning, a working group has been set up to finalize the bill, which includes experts from the public sector. UCIPR is also actively involved in this work.

17. To introduce electronic election of members of public councils acting within executive bodies.

Partially done

Despite the fact that in the Resolution of the Cabinet of Ministers № 996 has been amended and at present members can also be elected by electronic voting, introduction of the election of members of public councils operating under the executive authorities is unsystematic and slow.

18. To amend Articles 185-1 and 185 of the Code of Administrative Offenses to abolish administrative responsibility for violations of the order of peaceful assemblies in view of the actual absence of such an order.

Not done

Amendments to Articles 185-1 and 185 of the Code of Ukraine on Administrative Offenses and Administrative Liability for Violation of the Order of Peaceful Assemblies were not repealed.

19. To establish a permanent commission of inquiry on parliamentary oversight of the effectiveness of investigations into crimes committed against human rights defenders and civic activists in connection with their activities, based on the Parliamentary Human Rights Committee, the occupation and reintegration of temporarily occupied territories in Donetsk, Luhansk and the Autonomous Republic of Crimea, the city of Sevastopol, national minorities and international relations, and to ensure its membership with the members of this committee, the Parliamentary Committee on Law Enforcement, representatives of the Parliamentary Commissioner for Human Rights, law enforcement, human rights activists and civic activists.

Partially done

In December 2019, the Parliamentary Temporary Commission of Inquiry (TCI) was established to exercise parliamentary control over the investigation of attacks on Kateryna Gandziuk and other public activists during 2017-2018. On June 17, 2020, the Parliament approved the report of the TCI, which emphasized the need to continue monitoring the pre-trial investigation in criminal proceedings over the attack on Kateryna Gandziuk.

The TCI identified specific facts that may indicate an improper investigation into the cases Kateryna Gandziuk and Serhiy Sternenko, and therefore emphasized the need to continue its work to further verify information about attacks on civic activists. The commission also drew the attention to the need to significantly intensify the efforts of law enforcement agencies for a comprehensive, complete and objective investigation of the above criminal proceedings and the earliest possible transfer of relevant cases to the courts in the prescribed manner. TCI proposed to instruct the Head of the Parliament to immediately send a report to the Cabinet of Ministers of Ukraine, the Office of the Prosecutor General, the Security Service of Ukraine, the National Police of Ukraine, the Ministry of Internal Affairs of Ukraine to verify the information contained therein and, if justified, take legal action.

20. To the Government of Ukraine – to ensure the unhindered activities of public activists, prevent and effectively investigate all cases of pressure.

Not done

Despite the decision of the TCI, the number of attacks and other forms of persecution of public activists in the territory controlled by the government of Ukraine is constantly growing (101 in 2020 compared to 87 in 2019, according to the ZMINA Human Rights Center), the vast majority of which has not been properly investigated.

0 comments

Only authenticated can comment

Section 2. The current major challenges in implementation of the reform

Among the main challenges, which the CSOs are facing today, are primarily the attacks on activists, the number of which is increasing every year and there is no progress with their investigations.

Another challenge for CSOs is the unwillingness of the state to expand benefits that could potentially amount to budget losses.

Finally, there is always a threat in Ukraine that the reforms that have been adopted will be incorrectly implemented or curtailed.

0 comments

Only authenticated can comment

Section 3. Recommendations on reform priorities for 2021-2022

The key priorities for reforms in the upcoming year include:

Approval of the National Strategy for the Promotion of Civil Society 2021 - 2026 and the Action Plan for the Implementation of the National Strategy 2021 - 2023. The National Strategy and Action Plan are key documents for civil society, as they contain all necessary reforms for the development of civil society in Ukraine.
To adopt the Law on Public Consultations (№ 4554) in the second reading, which will define clear procedures for consultations by all authorities. Public consultations are the best practice in developed democracies, which enables citizens to influence decision-making and promotes direct democracy.
Introduction of an interest rate mechanism for financing of CSOs. Financial sustainability of CSOs is their weakest side according to the Civil Society Sustainability Index

In addition, we emphasize the urgency of the following recommendations:

To establish the Coordination Council for the Promotion of Civil Society Development at the SCMU with the involvement of representatives of relevant ministries, CEBs and civil society organizations.
To reject regulations restricting freedom of association (the bills on restriction of CSOs to receive foreign funding №3936, 3564, 3193-1, 3326, which restrict the freedom of CSOs in protecting the interests of their target groups - the bills on lobbying (№3059), bills restricting freedom of assembly (№ 3291), and bills restricting the right to work (№ 3326 on the “cleansing” of authorities).
To introduce online registration of all types of administrative services for the registration of civil society organizations.
To increase the amount of non-targeted non-taxable charitable assistance to people who find themselves in difficult life circumstances.
To establish tax incentives for businesses that provide charitable assistance, reduce the tax burden on people who receive charitable assistance.
To abolish personal income tax on travel expenses, accommodation and meals for volunteers and participants of CSOs.
To adopt a new version of the Law on Humanitarian Aid, which provides for simplified procedures for the processing of humanitarian aid and simplifies the procedure for importing humanitarian aid into the territory of Ukraine.
To improve the humanitarian access of non-governmental organizations providing humanitarian assistance to the conflict-affected population and the specified territories through changes in anti-terrorist legislation.
Ensure that the National Bank of Ukraine prepares an explanation for commercial banks on the procedure for servicing CSO payments for receiving services from non-residents and carrying out financial transactions under foreign economic agreements in order to simplify them. To introduce changes to the NBU resolution and cancel the recognition of CSO operations as risky.
To introduce transparent competitive procedures for public financial support for the Ukrainian Society of the Deaf and the Ukrainian Society of the Blind.
To introduce an electronic project competition for all types of state financial support provided to Ukrainian CSOs.
To introduce a program of competitive support to CSO initiatives in all local self-government bodies.
To initiate large-scale procurement of social services by local self-government bodies in accordance with the Law on Public Procurement or in accordance with the CMU Resolution “On Approval of the Procedure for Implementing the Social Procurement at the Budget Budget” № 450, from June 1, 2020.
To introduce mechanisms for the purchase of certain types of social services for communities at the expense of the state budget through special state institutions.
To provide an opportunity for CSOs that receive support from public funds to have administrative and organizational development expenditures.
To provide on a legislative level an obligation of each community to adopt a statute of a territorial community in which to define procedures for public participation, such as public hearings, local initiatives, budget for participation, public consultation, etc.
To introduce a single mechanism for the election of members of public councils operating under the executive branch.
To amend Articles 185-1 and 185 of the Code of Administrative Offenses to abolish administrative responsibility for violations of the order of peaceful assemblies in view of the actual absence of such an order.
To establish a permanent commission of inquiry on parliamentary oversight of the effectiveness of investigations into crimes committed against human rights defenders and civic activists in connection with their activities, based on the Parliamentary Human Rights Committee, the occupation and reintegration of temporarily occupied territories in Donetsk, Luhansk and the Autonomous Republic of Crimea, the city of Sevastopol, national minorities and international relations, and to ensure its membership with the members of this committee, the Parliamentary Committee on Law Enforcement, representatives of the Parliamentary Commissioner for Human Rights, law enforcement, human rights activists and civic activists.
To the Government of Ukraine – to ensure the unhindered activities of public activists, prevent and effectively investigate all cases of pressure.

0 comments

Only authenticated can comment

Civil society

Sectoral brief “Development of the civil society”