CIVIL SOCIETY AND MEDIA POLICY

Authors:

Ihor Razkladai — Deputy Director of Center for Democracy and the Rule of Law;

Anna Isichko — Deputy Director of Center for Democracy and the Rule of Law;

Maksym Latsyba — head of the civil society development program of the Ukrainian Center for Independent Political Research;

Halyna Petrenko — director of the NGO "Detector Media".

Group manager:

Viktoriya Shtets — project and advocacy manager of the RPR Coalition.

1. CIVIL SOCIETY, SELF-ORGANIZATION OF CITIZENS AND INTERACTION WITH AUTHORITY

1.1. STATE OF AFFAIRS IN THE FIELD OF CIVIL SOCIETY AS OF 2023 

At the beginning of 2022, the civil society of Ukraine had a fairly developed community of public and charitable organizations.

The main factors restraining the development of civil society organizations (CSOs) were and remain insufficient financial sustainability and inclusion of CSOs in power/state decision-making. Unfortunately, in 2020-2021, the attacks on activists and the lack of an adequate response from law enforcement agencies in Ukraine significantly negatively impacted the development of civil society in 2020-2021. The law enforcement system delayed the investigation of the attacks, did not arrest the attackers, and did not provide effective protection to the injured activists.

With a new political team coming to power in 2019, the dialogue between civil society and the authorities became much more complicated. Unfortunately, representatives of central authorities did not practice active involvement of CSOs and stakeholders in public consultations and the development of state decisions. For almost two years now, the Verkhovna Rada has not been able to approve the draft law "On public consultations" (No. 4254), applicable to all governmental subjects, including the People's Deputies and the President, which establishes clear consultation procedures for authorities when making official decisions. With the start of the armed aggression of the Russian Federation in February 2022, the activity of civil society, volunteer initiatives, and the volume of their contribution to the support of the army and people affected by hostilities have increased significantly. The authorities were forced to recognize this contribution and communicate better with volunteer communities and CSOs. Among other things, the Secretariat of the Cabinet of Ministers of Ukraine (CMU), the Ministry of Justice of Ukraine, the Ministry of Youth and Sports, the Ministry of Social Policy, the State Financial Monitoring Service of Ukraine, and the National Agency on Corruption Prevention (NACP) have become more open to dialogue with the sector. 

In September 2021, the President of Ukraine approved the National Strategy for Promoting the Development of Civil Society in Ukraine for 2021-2026 by his decree No. 487/2021. This strategy defines the main tasks of the state policy of promoting the development of civil society and the steps to achieve them. In February 2023 , the Government approved a detailed plan of measures for implementing the Strategy, which contains instructions to ministries and other executive bodies regarding activities to create a favorable legal and administrative environment for CSOs and activists.

As a result of the Russian Federation's full-scale aggression, the activities of CSOs and activists in the occupied territories and territories of hostilities became practically impossible. Many public figures joined the ranks of the Armed Forces or left for other regions of Ukraine or abroad, and a significant part of CSOs was relocated. Cases of activist killings in the occupied territories by the Russian military have been confirmed.

The legal conditions for the activity of civil society have changed significantly during, at first, the state of emergency and later the state of war. In accordance with Presidential Decree No. 64/2022, "On the introduction of martial law", the implementation of Article 8 of the Law of Ukraine "On the Legal Regime of Martial Law", according to which certain constitutional rights and freedoms of a person and a citizen can be limited in court, as well as temporary restrictions on the rights and legal interests of legal entities may be introduced to the necessary extent to ensure the possibility of introducing and implementing measures of the legal regime of martial law. Possible restrictions that directly affect the activities of civil society organizations are — property expropriation, prohibition of peaceful meetings, rallies, marches and demonstrations, and other mass events; prohibition of public associations (only if their activities are aimed at eliminating the independence of Ukraine, changing the constitutional order by violent means, violating the sovereignty and territorial integrity of the state, undermining its security, illegally seizing state power, promoting war, violence, inciting interethnic, racial, and religious hostilities, encroachment on human rights, freedoms, and public health). It is essential, however, that the right to freedom and personal integrity, the inalienable right to life, and the right to send individual or collective written appeals to state bodies cannot be restricted in conditions of war or emergency.

State and local funding of projects of civil society organizations was also suspended.

State authorities and local self-government bodies significantly limited the practice of public consultations on draft decisions and the involvement of CSOs in the meetings of government bodies. In addition, information on authorities' activities on their official websites and access to public registers are limited, particularly to the Unified State Register of private entrepreneurs and public formations. 

In June 2022, Ukraine received the status of a candidate for accession to the European Union and, accordingly, must bring its legislation in line with acquis communautaire.

The European Union does not have a particular directive or mandatory regulations in civil society development. However, among the requirements for countries planning to become EU members is the requirement to comply with the Copenhagen criteria, which includes ensuring the stability of institutions that guarantee democracy, the rule of law, respect for human rights, and the protection of the rights of representatives of various minorities. 

The European Union pays attention to the extent to which the authorities of Ukraine fulfill the standards and recommendations for the development of democracy expressed by the Council of Europe.

There are some specific EU directives on economic policy, tax policy, and freedom of movement of capital, services, and goods and labor, which partially affect the economic activity of CSOs. For example, there are standards for goods crossing the customs border that affect the procedures for importing humanitarian aid by CSOs.

The recommendations of the international organization FATF (Group for the Development of financial measures to combat money laundering), which are implemented in the legislation of Ukraine by several normative legal acts and are aimed at preventing money laundering and countering the financing of terrorism, have a significant impact on the activities of CSOs. Currently, the operations of Ukrainian non-profit organizations are considered high-risk, according to the previous rounds of national risk assessment (2016 and 2019). It, in turn, increases financial monitoring measures for the sector and often results in limiting or blocking non-profit organizations' activities.

Since the full-scale aggression of the Russian Federation in 2022, Ukraine is experiencing an explosion of volunteer initiatives. According to research by KIIS (Kyiv International Institute of Sociology), as of December 2022, 84% of Ukrainians trust volunteers. At the same time, as of June 2022, more than 57% of Ukrainian citizens from various regions of Ukraine were involved in volunteer activities, according to research by the Ilko Kucheriv Foundation. Volunteers undertook to provide the army with weapons, equipment, and food. Volunteers established networks for evacuating the civilian population and assisting IDPs. Volunteers organized a robust system of delivery and distribution of humanitarian aid. The phenomenon of volunteering in Ukraine was born nine years ago as a reaction to the armed annexation of the territory of Ukraine by the Russian Federation. After February 24, 2024, it gained even greater scope. No other country has experienced such coordinated work of this "army without weapons". The future of volunteering is in the participation in the restoration of the country (here, we can see a huge scope starting from volunteering in zoos, clearing debris, and urban development, up to providing psychological support to war victims). To maintain the culture of volunteering and to transform the movement itself into a valuable, peaceful volunteering format after the end of the war, it is essential to ensure support from the state, which involves a minimum of regulatory measures and a maximum of incentives (tax, social, reputational, etc.). While the war continues and the demand for volunteer contributions remains high, the main focus should remain on volunteers' safety, combating their burnout, and promoting youth volunteering development.

As of the fall of 2022, the authorities are taking tangible steps to create a more favorable environment for volunteer activity; for example, a more friendly taxation of volunteer activities was created (Law of Ukraine "On Amending the Tax Code of Ukraine on Promoting the Development of Volunteer Activity and Activities of Non-Profit Institutions and Organizations in the Conditions of Armed Aggression of Russia against Ukraine No. 2520-IX dated 15.08.2022", and expanding the areas of volunteer activity (Law of Ukraine "On Amendments to the Law of Ukraine, On Volunteering" No. 2519-IX dated 15.08.2022. The law proposes to simplify the procedure for registering volunteers-philanthropists in the Registers of Anti-Terrorist Operation volunteers (prepared for the second reading of draft law No. 8076 "On Amendments to the Law of Ukraine "On Charitable Activities and Charitable Organizations" regarding the improvement of the procedure for including benefactors - persons in the Register of Volunteers of the Anti-Terrorist Operation and/or implementation of measures to ensure national security and defense, repulse, and deterrence of armed aggression of the Russian Federation").

Only in January 2023, the Cabinet of Ministers plans to approve the Action Plan for the Implementation of the National Strategy for Promoting the Development of Civil Society in Ukraine.

Meanwhile, the draft of the National Recovery Plan of Ukraine does not contain a separate chapter or formulated positions regarding the particular place and role of Ukraine’s civil society. There is a need for additional dialogue between CSOs and government officials regarding the involvement of the potential of civil society in the recovery of Ukraine, as well as in expanding the agenda of the National Recovery Plan, including the development of a comprehensive security strategy, which will include the modernization of the military-industrial complex, the protection of the civilian population, and international security. In addition, the public sector does not control the disposition of funds for international technical assistance, which have been arriving in Ukraine since February 24, 2022.

1.2. VISION OF UKRAINE’S CIVIL SOCIETY DEVELOPMENT IN THE PERSPECTIVE OF 2030

CSOs, together with business associations, trade unions, and associations of local self-government bodies, are the main partners of authorities in developing state and municipal policy.

CSOs supply no less than a third of the social services that citizens need by order from the government and local self-government bodies.

The civil society of Ukraine is open to the world and actively integrated into global humanitarian and civic networks and initiatives. Ukrainian public and charitable organizations are actively importing and inviting social technologies, financial resources, humanitarian aid, and personnel for social and humanitarian progress in Ukraine. Ukrainian CSOs actively export Ukrainian practices of developing democracy, civil society, anti-corruption, overcoming humanitarian crises, security of activists, and protecting human rights.

The majority of social groups and collective associations based on their interests have formed their organizations, networks, and representative offices and are actively promoting the interests of their groups in state and municipal politics.

Different sectors of civil society (human rights, volunteers, monitoring, analytical centers, persons with disabilities, culture, artists, etc.) coordinate efforts to maintain the general framework of democracy, human rights, and the rule of law.

CSOs are the leading business partner in solving citizens' social and humanitarian needs. Joint education, health care, ecology, etc., initiatives are working.

CSOs, schools, and universities have become the leading carriers of civic education. Schoolchildren and students are involved in volunteering, activism, and philanthropy. The culture of charity and volunteerism is integral to responsible citizenship in Ukraine during peace or crisis.

Civil society and the media continue to be the central public controller of power, including providing public oversight of state and local budget expenditures, the integrity of judges, compliance with environmental standards, ensuring the rule of law, preventing corruption, implementing the policy of equal rights and opportunities, and complying with the Constitution.

Civil society is a driver in forming and implementing the human rights agenda. CSOs and the legal community are citizens' main providers of human rights services.

Civil society is the main driver in restoring the nation's mental health and the reintegration into Ukrainian society of persons affected by the war (military personnel, residents of formerly occupied territories, victims of violence, vulnerable categories of the population, etc.).

CSOs and the human rights community perform the function of civilian control over the special services and the army. CSOs are actively involved in ensuring the cyber resilience of the state and providing public control over the use of artificial intelligence technologies to protect human rights.

CSOs are the leading promoters of introducing culture and various practices of citizens' self-organization and public participation practices. About 15% of citizens are involved in CSO activities.

Organized civil society draws most of the resources for its development from local sources. Citizens of Ukraine have become the leading donors to CSOs due to deducting part of their income tax for the benefit of specific public or charitable organizations. Meanwhile, businesses responsibly use a tax discount and participate in forming endowments for non-profit organizations.

Regional networks of analytical centers consisting of researchers and representatives of the education field have been formed, and they carry out the analysis of state policy and provide recommendations for solving current problems of local development.

1.3. KEY POLICY CHANGES NEEDED FOR THE CSO SECTOR TO ACHIEVE DESIRED RESULTS

Introduce an opportunity for every citizen of Ukraine to direct 2% of their income tax to support public or charitable organizations (percentage mechanism).

Simplify the legislative regulation of CSOs' economic activity abroad and simplify the operations procedures for foreign CSOs and volunteers in Ukraine.

Adopt the law "On public consultations", applicable to all governmental subjects, including the People's Deputies and the President, and introduce clear procedures for the involvement of interested parties in developing authoritative decisions, including via open electronic consultations. Launch the government portal "Interaction", which contains crucial electronic tools for interaction with citizens (appeals from citizens, requests for information, public consultations, electronic contests of projects for CSOs, electronic petitions, etc.).

Local self-government bodies should adopt community charters and actively implement tools for the public participation of community residents.

Introduce the possibility of electronic registration of public and charitable organizations through the Diia portal.

Adopt a new law, "On humanitarian aid", which will introduce the European automatic recognition model of a specified list of goods as humanitarian aid.

Both the public and business sectors should promote the development of social entrepreneurship, especially based on CSOs, through preferential lending, preferential rent of premises for CSOs, educational programs for social entrepreneurs, etc.

Human rights organizations should publish an annual report on the results of monitoring the observance of human rights in Ukraine, which will be presented at annual parliamentary hearings.

Introduce a reduction in taxation of individuals receiving assistance at the Tax Code level, creating tax incentives for businesses to donate more to charity.

Introduce state subvention to local self-government bodies to purchase mandatory social services, including from CSOs.

Introduce the distribution of state financial support and funding from local budgets for CSOs which will be done exclusively through an electronic project competition.

Make changes to the National Risk Assessment Methodology in the prevention and countermeasures against the legalization (laundering) of crime proceeds and the financing of terrorism to implement the provisions of the FATF recommendation.

Ensure the participation of non-profit organizations in the preparation of state bodies of National Risk Assessment reports in the prevention and countermeasures against the legalization (laundering) of proceeds obtained through crime and the financing of terrorism.

Ensure a dialogue with law enforcement agencies based on democracy, cooperation, and mutual information.

1.4. POLICY FOR SOLVING ISSUES IN THE FIELD OF CIVIL SOCIETY DEVELOPMENT IN THE PERSPECTIVE OF 2030

1. Regulatory and legal framework 

1.1 Volunteering, charity, humanitarian aid

Adopt a new version of the law "On Humanitarian Aid", which will introduce electronic declaration of humanitarian aid through a unique automated system, classification of goods, services, works, and currency provided by foreign donors as humanitarian aid, electronic reporting on the use of humanitarian aid. To adopt a new version of the Resolution of CMU No. 927 "Issues in organizing the management of the automated system of registration of humanitarian aid", which will update the technical task for the operation of the automated system of humanitarian aid and the register of recipients of humanitarian aid.

Adopt amendments to the law "On humanitarian aid" (draft law No. 9111), which will simplify the procedures for declaring, distributing, and reporting humanitarian aid in martial law conditions.

Adopt the Cabinet of Ministers of Ukraine act on the adoption of the state target program for promoting the development of volunteering in Ukraine during the war and post-war period. Which, among other things, provide: grants for CSOs to promote the volunteering culture, educational events for citizens, civil servants, and representatives of local government organizations regarding involvement in volunteering, support for non-profit organizations (including communal and state) in developing their volunteer programs, conducting information campaigns on the application of legislation in the field of volunteering, assistance in the approval and implementation of local programs for the development of volunteering, measures to stimulate the involvement of Ukrainian citizens in regional (European) and international volunteering programs, etc.

Adopt amendments to the Tax Code (draft law No. 9237 ) to abolish income tax on the life and health insurance of volunteers.

Make changes to the law "On the legal status of foreigners and stateless persons." to simplify the procedure for issuing visas or temporary residence permits for long-term foreign volunteers in Ukraine.

Amend the law "On comprehensive general secondary education" regarding the promotion of volunteering in educational institutions.

Make changes to the current legislation of Ukraine to lower the age limit for volunteering (for example, make changes to the Law of Ukraine "On the Basic Principles of Youth Policy", defining the standards and conditions for involving children under the age of 14 in volunteering).

1.2 Creation and Registration of CSOs

Make changes to the law "On Public Associations" (draft law No. 8084), which will simplify the procedure for registering civil society organizations, introduce the possibility of registering NGOs electronically through the Diia Portal, cancel the burdensome registration of NGO symbols, and provide for registering NGOs in the National Register of Citizens. Adopt a variable model charter of a public organization by an act of the CMU, which will enable the automatic electronic registration of NGOs.

1.3 Development of the financial capacity of CSOs

It is necessary to adopt changes to the Tax and Budget Codes of Ukraine to introduce the interest deduction mechanism (for example, through the adoption of bills registered in Parliament 7500 and 7501). The mechanism will allow every citizen of Ukraine to direct up to 2% of their income tax to support non-profit (in particular, public, charitable, or religious) organizations (mechanism of percentage deduction).

In addition, it is necessary to develop and adopt subordinate legal acts that will regulate the procedures for applying this support mechanism to the public sector. Among other things, develop algorithms for keeping a register of organizations that can claim to be assigned a percentage of the tax, the procedure for submitting an application by taxpayers, reporting organizations, and distributing funds from the state budget, etc.

Make changes to the Tax Code to reduce the tax burden on citizens who need charitable assistance, namely:

1) Supplement paragraphs 170.7.3, clause 170.3 of Article 170 of the Civil Code, specifying the amount of non-taxable non-targeted aid in ten times the amount of income determined following the first paragraph of Clause 1. 169.4.1 Clause 169.4 of Article 169 of the Code, and for specific categories of persons who have fallen into difficult life circumstances, up to fifteen times the amount of income specified by the first paragraph of 169.4.1 clause 169.4 of Article 169;

2) Provide exemption from taxation of targeted charitable assistance by the requirements of paragraphs 170.7.4, clause 170.4 of Article 170 of the Tax Code of Ukraine, which is provided by non-residents of Ukraine, and add paragraph "A" of the mentioned subparagraph by the provisions covering the payment of expenses for the treatment of a person in foreign medical institutions;

3) Make changes to Article 14 of the Tax Code of Ukraine, fixing the definition of the "grant" concept, and apply Articles 170 and 292.

Make changes to the Tax Code to create tax incentives for private benefactors to donate to CSOs, namely:

1) Remove restrictions on amounts for business purchases of goods and services from non-profit NGOs and СOs (charitable organizations);

2) Increase the limit provided for in paragraph 140.5.9, clause 140.5 of Article 140 of the Civil Code, on the number of funds or the value of goods, completed works, provided to a non-profit organization, for exceeding which the financial result before taxation with corporate income tax must be increased from 4 to 10%;

3) Increase the limit of the amount allowed to be included in the tax discount for individuals to 10% of the taxable annual income;

4) Expand the scope of application of the tax discount to other personal income taxed by personal income tax, in addition to wages;

5) Provide for the possibility of applying a tax discount by natural persons - entrepreneurs who are taxpayers of personal income tax.

Amendments to all acts of the CMU and local self-government bodies, which will determine that project contests (state grants) for CSOs take place only in electronic format per the procedures defined in the Resolution of the CMU "On Approval of the Procedure for Conducting a Contest for Defining Programs (Projects, Activities) Developed by Institutes of Civil Society, for the implementation of which financial support is provided" No. 1049 .

Adopt the state target program for developing social entrepreneurship based on CSOs. This program provides state expenditures for conducting educational activities on social entrepreneurship, creating business incubators, grants for creating social entrepreneurship entities, preferential bank loans, etc.

Adopt amendments to the law "On State and Communal Property" to introduce a preferential lease of communal property for NGOs of persons with disabilities, veterans, and charitable foundations.

Make changes to The Resolution of the Board of the National Bank dated May 19, 2020, No. 65 "On approval of the Regulation on Financial Monitoring by Banks" , which replaces the control of commercial banks by the founders of CSOs with bank control over managers and members of the board or supervisory boards of CSOs.

Introduce at the level of the Budget Code and the law on a budget of the state subvention to local self-government bodies for the purchase of mandatory social services, including from CSOs.

Make changes to the National Risk Assessment Methodology in the field of prevention and countermeasures against the legalization (laundering) of criminal proceeds and the financing of terrorism to implement the FATF recommendation's provisions. Ensuring the participation of non-profit organizations in the preparation of National Risk Assessment reports in the prevention and countermeasures against the legalization (laundering) of criminal proceeds and the financing of terrorism by state bodies.

1.4 Involvement of citizens and CSOs in the development of national and local decisions

Adopt the draft law "On public consultations" No. 4254 , applicable to all governmental subjects, including the People's Deputies and the President, and introduce clear procedures for the involvement of interested parties in developing government decisions, including open electronic consultations. Launch the government portal "Interaction", which contains key electronic tools for interaction with citizens (appeals from citizens, requests for information, public consultations, electronic contests of projects for CSOs, electronic petitions, etc.).

Adopt changes to the law "On Local Self-Government in Ukraine" (draft law No. 7283 ), which obliges local self-government bodies to adopt procedures and implement public participation tools in all communities (public hearings, general meetings, local initiatives, consultative and advisory bodies, public assessment (expertise), mechanisms of residents' participation in the distribution of the local budget, public consultations, public budget, and school public budget). The draft law expands the circle of citizens with the right to participate in consultations with registered residents, IDPs, and youth from the age of 14.

Adopt amendments to the law "On self-organization bodies of the population" (draft law No. 6319 ), which simplifies the procedure for the creation and registration of bodies of self-organization of the population, the definition of the territory of activity, specifies the powers of the population’s self-organization bodies (SOB), and the reporting procedure of the management of the SOB to residents. SOB should become the collective voice of residents for the local authorities in all management matters of the SOB territory.

2. Institutional changes

2.1 Volunteering, charity, and humanitarian aid

The central institutions that receive and distribute humanitarian aid are local state administrations and local self-government bodies. It is vital to strengthen the capacity of these authorities to effectively and honestly distribute humanitarian aid (preparation of management procedures, methodological materials, and training of team members).

The Ministry of Social Policy should change its role as an "authorizer" and controller of humanitarian aid to the function of a service center for humanitarian aid operators. First, an open automated system for declaring humanitarian aid and reporting on its distribution should be created and implemented.

It is crucial to train the team members of local authorities to attract volunteers to create and manage long-term programs of working with volunteers to solve the social problems of communities and regions.

It is necessary to improve the qualifications of social science teachers in secondary schools, conduct volunteering lessons, develop a volunteering culture under the guidance of adults, and transfer relevant practices.

Develop the ability of tax inspectorate team members to provide free consultations on proper taxation and registration of charitable assistance for private benefactors.

2.2 Creation and registration of CSOs

During the transfer of the function of state registration of NGOs from the justice authorities to the registrars of local self-government bodies (Centers for the Provision of administrative services - CPAS), it is necessary to improve their qualifications, specifically regarding the creation and registration of public associations.

The Ministry of Information Technology and the Ministry of Justice should jointly create and put into operation the software for the electronic registration of NGOs on the "Diia" Portal.

2.3 Development of the CSOs financial capacity 

To implement the state youth policy effectively, the Ministry of Youth and Sports should create and launch the Ukrainian Youth Fund.

The Ministry of Finance and the State Tax Service should create a service in the Taxpayer's Electronic Office that allows citizens to electronically apply to transfer 2% of their income tax to CSOs. Also, the Ministry of Finance should create an electronic service for forming and maintaining a register of CSOs participating in the interest mechanism.

Tax authorities should conduct an informational and educational campaign for private benefactors (citizens and businesses) regarding new tax instruments for stimulating charitable activities and inform them on correctly issuing tax benefits and reporting documents.

To train team members of state authorities and local governments to organize and conduct electronic tenders for projects using the state service Space (Prostir) of electronic tenders (https://grants.vzaemo.diia.gov.ua/).

Introduce a risk-oriented approach to the work of commercial banks during financial monitoring of payments by non-profit organizations.

Conduct an informational and educational campaign for CSOs regarding the legal conditions and business models for the production and sale of social services as requested by the state.

2.3 Involvement of citizens and CSOs in the development of national and local decisions

Create an online government platform for public consultations and ensure the connection and holding of public consultations on this portal of all Ministry of Internal Affairs and Self-Government Bodies (SGB) bodies.

Improve the qualifications of team members of executive authorities and local self-government bodies who are responsible for conducting public consultations.

Improve the qualifications of team members of local self-government bodies who are responsible for relations with the public regarding the use of new legal instruments of public participation (public hearings, general meetings, local initiatives, consultative and advisory bodies, public assessment (expertise), mechanisms for the involvement of residents in the distribution of local budget, public consultations, public budget, and school public budget).

SGBs should update their official websites and include a "Public Participation" section to display information about the community's implementation of new legal participation instruments.

3. Funding 

3.1 Volunteering, charity, and humanitarian aid

Corporate and private philanthropists should, whenever possible, invest funds in enterprises' budgets to finance corporate social responsibility programs through which they support charitable and volunteer initiatives.

The Ministry of Social Policy should lay down annual expenses in the state budget for financing activities of the state target program to develop volunteer culture in Ukraine. Local self-government bodies should invest funds for activities of local programs to develop volunteering in the community within the framework of local budgets.

Charitable assistance is provided at the expense of foreign and national donors (natural and legal entities under private law).

3.2 Creation and registration of CSOs

State or donor funding is required to create and operate software for the online registration of NGOs on the "Diia" Portal.

Private legal companies can provide, as part of their corporate social responsibility programs, the financing of free consultations for citizens on the registration and activities of public and charitable organizations.

3.3 Development of the CSOs financial capacity 

The Ministry of Youth and Sports and the Ukrainian Youth Fund should fund programs and institutional grant contests annually for youth and children's NGOs.

The Ministry of Social Policy and the Fund for the Protection of Persons with Disabilities should fund annual competitions for programs and institutional grants for NGOs of persons with disabilities.

The Ministry of Veterans Affairs of Ukraine should fund programs and institutional grant contests for veterans' NGOs annually.

Local self-government bodies must annually provide within the framework of local budgets for expenses for holding project contests for NGOs, charitable organizations, and non-governmental organizations.

The Ministry of Social Policy and Local Government Organizations must annually allocate funds in the state and local budgets to purchase social services, including from CSOs.

The Ministry of Finance should start planning the state budget of Ukraine, considering the possibility of transferring part of the income from the personal income tax to the CSO's accounts.

The Ministry of Economy should invest annual expenses in the state budget for financing measures of the state target program for developing social entrepreneurship in Ukraine.

3.4 Involvement of citizens and CSOs in the development of national and local decisions

In their annual budgets, state authorities and local self-government bodies should include public consultations, policy analysis measures, public interaction measures, state or municipal policy explanation measures, and spending on digitalizing public participation tools.

Local self-government bodies should provide funding for such instruments of public participation as the public budget of the community and the school public budget within the framework of local budgets.

Local self-government bodies should finance programs to support the institutional development of the population's self-organization bodies as a tool for residents' participation in solving issues of local importance.

4. Communication of reforms to  society

4.1 Volunteering, charity, humanitarian aid

Leadership in developing a new open and electronic work system with humanitarian aid belongs to the Ministry of Social Policy. The primary opponents of a liberal and transparent work system with humanitarian assistance can be the Ministry of Finance, the Customs Service, and local state administrations.

The Ministry of Social Policy, the State Social Service Service, and local self-government bodies should lead in creating a state system of support for the development of volunteerism. The primary opponent may be the Ministry of Finance due to blocking expenditures from the state budget to implement volunteering development measures.

4.2 Creation and registration of CSOs

The leaders in implementing electronic registration of NGOs should be the Ministry of Justice and the Ministry of Digital Transformation. The main opposition in this process may arise from the Ministry of Digital Affairs due to the need to find funding to create such software.

There is also a risk that not all local self-government bodies will include the NGO registration service in their CPAS.

4.3 Development of the financial capacity of CSOs

Local self-government bodies, the Ministry of Youth Sports, the Ministry of Social Policy, and the Ministry of Veterans should be the leaders in developing the system of available state grants for CSOs. The Ministry of Finance traditionally opposes this reform.

The leader in implementing the interest mechanism (transfer of part of personal income tax to the activities of CSOs) should be the Ministry of Finance, which at the same time is the primary opponent of this reform.

Local self-government bodies and the Ministry of Social Policy should act as leaders in developing the system of procurement of social services in CSOs. The primary opponents of this may be the heads of communities.

Heads of banks and the National Bank of Ukraine should be leaders in introducing friendly banking services for CSOs.

4.4 Involvement of citizens and CSOs in the development of national and local decisions

The leading players in introducing procedures and practices involving the community's residents in solving issues of local importance are the heads of districts and deputies of local councils. Unfortunately, these same persons may be the main opponents of introducing this reform. At the national level, leadership in this reform belongs to the Verkhovna Rada's Committee on the Organization of State Power and Local Self-Government, the Ministry of Infrastructure, the Congress of Local and Regional Authorities, and associations of local self-government bodies.

The Secretariat of the CMU, the Ministry of Justice, and the National State Service should be the leaders in introducing public administration reform by implementing mandatory state consultations. The primary resistance to implementing this reform can come from the heads of executive bodies and local self-government.

5. Criteria for evaluating the reform’s success/failure

5.1 Volunteering, charity, humanitarian aid

A wide range of humanitarian aid operators (non-profit organizations, authorities, and international humanitarian organizations) can quickly and easily declare and import a wide range of humanitarian aid (goods, services, currency) and report on its distribution using an automated humanitarian assistance system.

In Ukraine, a public-private ecosystem has been developed to promote the development of volunteering, the effectiveness of which can be measured by the following indicators: 1) the percentage of citizens who identify themselves as volunteers; 2) the percentage of citizens who have agreements on volunteering with non-profit organizations; 3) volume (in hryvnias) of services provided by volunteers during the year; 4) the number of foreign volunteers carrying out their volunteer activities in Ukraine; 5) the number of CSOs and government bodies that officially (based on a contract) involve volunteers in their activities; 6) the number of funds spent from the state and local budgets to support activities for the development of volunteering culture.

5.2 Creation and registration of CSOs

Citizens of Ukraine will be able to quickly and conveniently register NGOs electronically through the Diia Portal.

Citizens of Ukraine will be able to register an NGO for free, within one day, at any CPAS.

5.3 Development of the financial capacity of CSOs

Every citizen of Ukraine can go to their electronic taxpayer's account and identify a public, charitable, or religious organization to which 2% of their paid income tax will be transferred.

All state and local project tenders for CSOs occur with the help of the transparent state service Prostir (Space) of electronic tenders. Youth, veterans, persons with disabilities, sports, and national and patriotic education NGOs are guaranteed annual project competitions at the expense of the state budget. The budget of one project is not less than UAH 500,000. These organizations have access to state grants for institutional development.

The abovementioned NGOs have a preferential regime for renting communal property.

Public and charitable organizations produce 50% of social services purchased by state and local budgets.

A 5-fold increase in the amount of funds received by NGOs and BOs from the sale of their services and business works.

Banking services for the financial activities of CSOs should not block their actions and should not create excessive administrative obstacles. Commercial banks implemented a risk-oriented approach during the financial monitoring of non-profit organizations.

5.4 Involvement of citizens and CSOs in the development of national and local decisions

All bodies of executive power and local self-government should conduct public consultations on all their draft regulations on the government's online platform for public consultations. All citizens of Ukraine and legal entities should have free access to public consultations and submission of proposals for legal acts projects.

In all 1,470 territorial communities of Ukraine, charters of gatherings and detailed procedures for tools of public participation have been adopted (public hearings, general meetings, local initiatives, consultative and advisory bodies, public assessment (expertise), mechanisms for the involvement of residents in the distribution of the local budget, public consultations, public budget, and school public budget). Not only registered residents of the community but also IDPs and youth from the age of 14 are allowed to use the participation tools.

Bodies of self-organization of the population (SOP) should be created and function in each community.

1.5. RED LINES WHICH CANNOT BE CROSSED IN THE FIELD OF CSO POLICY 

The authorities should not use the tools of administrative and criminal prosecution of activists, public figures, human rights defenders, and journalists for political reasons.

The authorities should not ignore and delay the investigation of criminal attacks on activists and public figures.

The government should refrain from the unjustified refusal of public consultations and public involvement in developing state decisions.

In wartime, the authorities must refrain from unreasonable restrictions on civil liberties (right to assembly, privacy, information, association, etc.). The authorities should refrain from using artificial intelligence technologies to introduce a system of total surveillance of citizens, which aims to collect and process personal information, which is then used to persecute activists.

CSOs must not violate the principle of apoliticality of their activities.

CSOs must not violate such principles of openness, transparency, accountability, and targeted use of funds.

2. MEDIA SPHERE

2.1. STATE OF AFFAIRS IN THE MEDIA SPHERE  AS OF EARLY 2023

Despite oligarchic groups in the television and radio space, Ukraine's media sphere is quite independent and pluralistic. There are national television stations, radio stations, as well as regional and local ones. Despite its chronic underfunding, the public is gaining momentum due to the viewer's trust and independent editorial policy.

In terms of the press, Ukraine has passed the stage of denationalization of the communal press. Private media exists within the global trends of decreasing consumption and moving to niche formats. A separate issue is the issue of printing because there is no production of quality newsprint in Ukraine, and the cost of foreign products is quite expensive.

The online segment is developing dynamically, represented by the Internet-like versions of traditional media, online press, Internet channels, and an element of professional blogging, the audience reaching hundreds of thousands of subscribers.

The main challenge for the media sphere in Ukraine, as well as for any sector of Ukraine's economy, is war. Since the beginning of the large-scale invasion of the Russian Federation, at least 215 broadcasters, online and print media (national, regional, and local) have stopped their activities fully or partially due to hostilities and occupation.

The full-scale war also caused enormous economic problems for the media in Ukraine. By the end of 2022, the country's GDP is expected to decrease by 30-35%. The advertising market, according to various estimates, may decline even more. Global international FMCG advertisers, which have always been a strong foundation of the advertising market, have yet to return to it since the beginning of the great aggression, even though sales of their products in Ukraine continue. The advertising market currently depends on local advertisers. Media in regions occupied by Russia, liberated from occupation, or close to the war zone are particularly affected by the lack of advertising funds.

In the first six months of the full-scale war, Russia committed 435 crimes against journalists and the media in Ukraine. As of August 24, the Russian military killed 37 journalists in Ukraine; another 14 journalists were injured, and four are considered missing. These numbers continue to grow.

Finding people who would like to work as journalists is extremely difficult in such cities as Kharkiv, which is constantly under shelling. As for the regions under Russian occupation, courageous people continue to work as journalists there and perform their journalistic work under the threat of life and freedom using partisan methods.

The Russian Federation is actively attacking the Ukrainian media space in the physical dimension by seizing media premises, attacking radio transmission complexes and shelling television towers, and in the virtual world - switching Internet traffic through Russian servers, to which the special services of the Russian Federation have access, and which also allows filtering and completely blocking Ukrainian resources in the occupied territories for complete control of information there.

A separate problem remains the Telegram platform, which does not have a European registration but has become not only a convenient communication tool but also the spread of disinformation. On February 24 and a few days later, about 100 anonymous local Telegram channels were launched with messages of Russian disinformation intended for settlements that Russia later either occupied or tried to occupy. .

One of the requirements of the European Commission for Ukraine's accession to the EU is the harmonization of Ukrainian media legislation with EU legislation. A new law, known as the Media Draft Law, has been in the works for a decade. This act should replace five morally outdated existing laws, extend its effect to the sphere of "new media ", strengthen the regulator, and introduce the institution of co-regulation. The government has set an ambitious goal to change Ukrainian media legislation by the end of 2022 — the media law was published on the last day of the year, December 31.

Despite the effect of martial law, which allows the state to interfere in the work of the media to a considerable extent, the government intervenes quite moderately: the most prominent TV channels broadcast 24/7 news (the so-called news marathon "Yedyni Novyny" (United News)), in the coordination of which representatives of the authorities participate in the creation. At the same time, Internet media and radio do so without such interference. In parallel, some channels broadcast non-news content. However, the growth in the number of state TV channels is a source of concern, which directly contradicts the idea of creating public broadcasting: first, before the war, we had the renewal and expansion of broadcasting of the parliamentary TV channel "Rada", parallel to the states, there were no foreign language broadcasting channels such as Freedom, and since the fall, the state entertainment TV channel "Dom" was restarted. According to some estimates, another channel, "We-Ukraine", created by a part of the team of the former oligarchic channel "Ukraine," can also be financed by taxpayers' money. At the same time, public broadcasting will receive the smallest amount of funding in 2023 - 32% of the minimum financial guarantee provided by law.

2.2. VISION OF THE STATE OF THE MEDIA SPHERE IN THE PERSPECTIVE OF 2030

In 2030, the media sphere of Ukraine should recover to pre-wartime indicators in terms of content production and distribution, as well as financial indicators. Traditional media such as television, radio, and online press deliver content on the chosen central platform and modern communication channels, particularly in centralized and decentralized social online environments.

The diversity of the Ukrainian media landscape is ensured by different types of media, which can be classified by territorial features such as national, regional, and local communities and by their thematic focus. The media, as sources of information, satisfy the information needs of the country's residents of various ages, income levels, education, etc., and also actively interact with similar subjects outside the country, which became a consequence of the migration processes strengthening, as a side effect of the war of the Russian Federation against Ukraine.

Bloggers have formed the rules of self-determination in two main categories: mono media with strict adherence to standards and free genre bloggers who do not enjoy media privileges.

The level of trust of Ukrainians in the media is no lower than the trust in the main public actors — the army, the church, volunteers, etc. Confidence grows due to the observance of journalism standards, the development and effective implementation of the rules of co-regulatory bodies, and the effective activities of the national media regulator.

Ukrainians are gradually increasing their media literacy: they can check official sources, they know the leading media, their owners, and political orientation, and they have a 50% + level of resistance to information leaks.

The Suspline's platform occupies an essential position as a source of verified information and a platform for forming public dialogue from all vital spheres of public life. Suspline produces educational, historical, and other content, which is distributed through the most appropriate channels of interaction with target audiences. The VoD Suspline's platform is a valuable resource for the entire media market. Suspline's broadcasting is provided with guaranteed financing mechanisms at a level sufficient for effective activity and production of quality content, both independently and through the involvement of independent content producers.

Ukrainian media space is part of the international media market. Ukrainian media produces content independently or in cooperation with foreign productions in demand on the European and world markets and meets non-discrimination requirements. The foreign broadcasting system of Ukraine delivers specialized content to global information platforms.

Ukrainian media legislation is harmonized with EU media legislation; Ukrainian media professionals take an active part in the development of pan-European policies in the field of freedom of speech and relevant actors.

Ukraine actively interacts with social platforms to combat disinformation and develop rules that prevent neutrality in the interests of information aggressors.

2.3. KEY ISSUES TO BE SOLVED TO ACHIEVE THE DESIRED OUTCOMES IN THE FIELD OF MEDIA

The biggest challenge of the next decade will be the recovery of the media market, which was affected by the COVID-19 pandemic and the full-scale invasion of the Russian Federation. One of the effective ways to restore the media environment is to comply with the financing guarantees of the Suspline broadcaster in full. Under such conditions, Suspilne begins to order content from media actors, thereby helping the media market to recover. In this way, there is an infusion of funds into the market, with a simultaneous increase in the quality of the content, which must meet the high requirements of the public.

On the one hand, it is necessary to establish cooperation with large distribution platforms regarding translation and adaptation. On the other hand, the distribution of Ukrainian content on platforms should strengthen the integration of the media space in the European and world context.

Ukraine should ensure adequate protection of copyright as a critical element of the sphere's development of intellectual property and thereby form the image of Ukraine as a reliable partner that provides the payment of royalties and invests in the development of cultural audiovisual products.

The media regulator and other state institutions must provide effective means of combating monopolization and concealment of real media owners.

The market should receive adequate protection from national and foreign "bad actors" influence on the media and individual journalists and bloggers.

Media literacy should be effectively integrated into various communication, educational programs, and social campaigns to reach different population segments by age and social indicators.

The education of journalists needs a radical reformation to train professional journalists, including thematic directions of study. Students should be able to continuously complete internships in foreign media through available exchange programs.

Carry out a comprehensive update of media legislation and ensure its synchronization with directives produced at the EU level.

Apply the best international leading media practices (for example, the Key Group on Gender Equality of the European Broadcasting Union), international organizations Recommendations and the Ukrainian expert environment on countering gender stereotypes, discrimination, gender-based violence, and ensuring gender equality and human rights in Ukrainian society.

2.4. POLICY FOR SOLVING ISSUES IN THE MEDIA SPHERE IN THE PERSPECTIVE OF 2030

1. Regulatory and legal framework 

Ukraine came close to formally fulfilling the requirements of the Association Agreement between Ukraine and the EU and seven requirements of the European Commission to Ukraine as a candidate country for EU membership in terms of harmonization with the EU Directive on audiovisual media services. In December, the Verkhovna Rada of Ukraine adopted the Law of Ukraine "On Media." and amendments to the advertising legislation and thus completed the implementation of the obligation at the legislative level. Adopted acts require proper implementation at the level of by-laws, actions of co-regulatory bodies, as well as the development of amendments to laws in case the proposed mechanisms are not properly implemented.

At the same time, Ukraine has to fulfill the commitments made before the Council of Europe, in particular regarding the creation of Suspilne Broadcasting. Thus, since 2017, the year of creation of the Suspilne Broadcaster (now a subject in the field of public media), the National Public Television and Radio Company of Ukraine has never received a minimum guarantee of 0.2% of the expenditures of the overall state budget for the previous year, as provided by law. Such a guarantee, as well as similar guarantees in other areas, are leveled by the Budget Code, and this forces us to look for a new financing model, particularly through rent funds for the use of the radio frequency spectrum or with the help of hybrid financing models.

At the same time, with the entry into force of the Media Freedom Act Ukraine should include this activity at the EU level in the list of acts that will require implementation, mainly due to the guarantees of independence of public media it provides.

Given the growing dynamics of content consumption from the Internet, in particular social networks and hybrid platforms such as Telegram, Ukraine should include in the implementation plan the acts of the European Union also the implementation of the already valid Act on Digital Services and Act on Digital Marketing, which affects the activities of Internet intermediaries, particularly social networks, whose role has increased significantly during the COVID-19 pandemic and full-scale aggression, including a negative context, creating a chilling effect for the media. In terms of freedom of speech, media development, and the right to information and privacy, the future EU Act on artificial intelligence will require special attention. .

In the context of media and elections, Ukraine should ensure the implementation of the future EU Act on Transparency and Targeting of Political Advertising. Because its main focus concerns the sphere of online and social networks. This aspect will also require the adoption of a draft law on changes to the Election Code of Ukraine — this package of changes was removed from the transitional provisions of the law on media and registered Separately.

Adopted in 2022, the new Law of Ukraine, "On Copyright and Related Rights," needs proper implementation, allowing authors to receive royalties and develop the content production market. In the context of media activity, the new law needs to be adjusted regarding properly introducing freedom of panorama. Adequate copyright protection - from legislative changes to the ability of courts and administrative services to protect it - is one of the essential foundations for media's further development and the entire market of creative services.

Given the crisis caused by the war, the sphere of creative services also needs additional tax incentives, particularly the legalization of patronage in the field of content production, because the recovery of the production market is not predicted before 2030.

Different activity, including in close cooperation with the expert environment of the EU itself, requires the search for solutions at the legislative level regarding unscrupulous actors or actors from third countries that offer their digital services and which are not under the jurisdiction of the USA or the EU, as well as improving the policies of large social networks in the context of the protection of freedom of speech and exceptions to countries under the aggression of other countries.

2. Institutional changes

The ecosystem of the information policy field that has developed in recent years shows the correctness of the movement both from the point of view of policy development and the coverage and analysis of the media environment. The emergence of the Center for Strategic Communications and Information Security under the Ministry of Culture and Information Policy, as well as the emergence of the "Filter" project for the development of media literacy, are important initiatives, both in short and long terms, as they establish a mechanism for countering disinformation and special information operations.

At the same time, the law on media for the first time in the history of the National Council of Ukraine on Television and Radio Broadcasting allowed it to be a true regulator and at the same time to cover the sphere of not only traditional media but also the newest forms, including program catalogs and online press. However, for the quality performance of its functions, the National Council must have an appropriate level of funding and a sufficient number of personnel capable of performing the scope of tasks defined by the law and the Strategy. At the same time, it is essential to ensure the independence of the strengthened regulator from the influence of both the government and private structures connected to the government (oligarchs) because, in this case, one can get a censorship body.

Transparency, independence, and accountability of the Ukrainian Cultural Fund and the State Agency for Cinema must also be developed. The withdrawal of the State Cinema from the Ministry of Culture, as well as the failure to re-elect the Supervisory Board of the Ukrainian Film and Television Academy in due time, and the exclusion of the public from the discussion of the strategy for the development of the film industry are examples that should not be repeated in the future. The role of these two institutions and Suspline Broadcasting are key to the post-war recovery of the media market. Ensuring their efficiency and independence is one of the main tasks for the coming years.

Strengthening the Ministry of Culture's institutional capacity and proper institutional support and financing of such projects as the Center for Strategic Communications and the Filter. State initiatives for the promotion of media literacy should effectively use existing developments and those developed by independent players, including involving them in implementing such programs within the framework of partnerships and coalitions.

In education, the Ministry of Education and Science and the Ministry of Culture and Information Policy should review approaches to the teaching of journalists, in particular, to determine the practicality of bachelor's programs. Also, given the projected shortage of personnel in all sectors, we need to take measures to train personnel in the field of journalism, cinematography, and related specialties (media management, jurisprudence, etc.) to provide the sector with a sufficient number of specialists of the appropriate quality, as well as to ensure competitiveness Ukrainian media sphere on the international market.

The future of the foreign language platform must consider the precise tasks and goals it will face, as well as the state's current capacity to ensure the production of content. A possible development is incorporating foreign languages into the public broadcasting system, more precisely targeting the target audience and, accordingly, forming a broadcasting network. An alternative development may be the transformation of foreign broadcasting into a production body, which will produce content for other broadcasters, including foreign agencies.

State authorities and media should develop and implement policies regarding communication about and with Ukraine's occupied and/or recently liberated territories.

A separate issue is the implementation of the information legislation on the territories liberated from occupation, which were occupied until February 24, 2022. Such performance will require not only a separate timeline and phasing but also the formation of the entire infrastructure from scratch — the restoration of Suspline's branches, representatives of the National Council, information departments of authorities responsible for access to public information, etc. Such a recovery will be possible only after the complete liberation of the regions. Currently, only a relative assessment of the phasing and time required to launch laws in the media field and freedom of information is possible.

3. Funding 

Financing of the media sphere should take place at different levels with different goals. 

The basic level is to ensure the independence of public media and the regulator following the guarantees established by the law on media  and on public media in Ukraine . Adequate funding for the regulator will enable it to fulfill its mandate, particularly to conduct a market assessment and form an adequate Strategy and annual plans. Funding Suspilne's Media ensures the fulfillment of its mission. It allows funds to be launched on the market through a pitching system, in which independent studios and other commercial media can participate.

The second level is financing the creative industry market through the UCF (Ukrainian Culture Fund) and State Cinema programs. Accordingly, the state budget should include funds to restore this market. In addition, Ukraine should take all necessary steps for the participation of media and productions in Creative Europe and other programs.

Attracting donor funding and creating conditions for foreign investments should allow large and local media to resume their activities, especially in the regions most affected by Russian military aggression, where media activities often have to start from scratch.

4. Communicating reforms with society

Society needs to continue to explain the importance of Suspilne media and the new phenomenon - community media. Communication about the importance of Suspilne for democracy as a whole, as well as for the media market, should occur constantly at all levels — from members of parliament to various social groups.

On the way to the post-war reconstruction of the media industry, Ukraine will face two potential dangers: the reluctance of the state to abandon the control over the media established during martial law and to abandonment of the created media. Today the radio and television station of the Ministry of Defense is already operating, and the parliamentary TV channel Rada has been transformed into a news channel, which does not correspond to its nature and functions. Also, a significant risk is the restoration of the media influence of the old or the emergence of new oligarchs due to the inability to build a self-sustaining media market.

5. Steps/stages of changes

The restoration and development of the media sector are directly related to the course of hostilities and the repair of control over the temporarily occupied territories. After all, after the liberation of the territory, it will take time to restore the telecommunications infrastructure — television towers, optical lines, and the mobile communication system.

The resumption of Suspilne's Service in the liberated territories will depend on the condition of the facilities and the amount of funding that will allow for the quick resumption of work at the liberated branches, provided hostilities do not damage them. Restoring or launching other media will depend on the population in specific regions because no media can exist without a small number of consumers.

Adaptation of European directives should take place as de facto as possible, without expectations of formal solutions, because the development of the media and information sphere is exceptionally rapid. With the unification of rules and the opportunity for various businesses and other actors to work in a single environment, Ukraine should make maximum efforts and move along parallel tracks with EU countries.

6. Criteria for evaluating the reform’s success/failure 

5. Ukraine implements the provisions of EU acts promptly, creating a virtually unified space for players in the media sphere.

6. Ukraine implemented EU obligations in the media sphere and opened the availability of such programs as Creative Europe, which allows the development of the media market.

7. Ukraine ensures adequate financing of the regulator and Suspilne.

8. Ukrainian subjects in the field of media implement advanced (digital) approaches to work and have funds for R&D;

9. Citizens can access information about national events, decisions, and events and decisions within their communities.

10. The level of media literacy in 2030 will reach more than 80% of the population;

11. The Rada channel has been transformed into a classic parliamentary channel; the rest of the media created during wartime have been privatized or liquidated.

When developing media legislation, it is unacceptable to create conditions for limiting freedom of speech under the formal pretext of ensuring the interests of national security for censorship.

The state should not engage in propaganda within its own country and/or concentrate it on its citizens.

The media cannot violate journalism's ethical and professional standards and spread misinformation in their work.