Parliament stimulates charity: it will allow businesses to increase charitable assistance
19 March 08:49
The President of Ukraine has signed the Law “On Amendments to the Tax Code of Ukraine to Stimulate Charity during Martial Law”. This is reported on the website of the Parliament, "Komersant Ukrainian" informs.
What does the law provide for?
The law stipulates that for the period of martial law, the amount of charitable contributions that will not be subject to taxation will double from 4% to 8%.
In addition, charitable assistance provided not only in cash but also in kind is now exempt from taxation. Such assistance should be directed to charitable organizations and individuals affected by the armed aggression of the Russian Federation.
The European Business Association, which welcomed the President’s signing of the law, believes that the new rules will encourage companies to increase their charitable giving.
The EBA cites its own study Business Forecasts for 2025. According to its results, 59% of companies that took part in the survey plan to implement social initiatives. On average, businesses planned to allocate 6% of their revenues to such projects.
Charity remains among the priorities of Ukrainians
The involvement of Ukrainians in charity has remained at 86% since 2022. And the share of donors is growing steadily: from 53% in 2019 to 73% in 2024. The share of volunteers is also growing, even compared to 2022. This is evidenced by an annual survey conducted by the Zagoriy Foundation and Info Sapiens, which covered 2,400 Ukrainians and 400 representatives of non-governmental organizations.
However, compared to the beginning of the full-scale invasion, the format of assistance has changed. In early 2022, impulsive volunteering was partly transformed into a regular activity, and partly into other formats of charity.
The Charitable Giving Index is now slightly lower than in 2023, but significantly higher than in 2021.
Trust in charitable initiatives in Ukraine varies greatly, with volunteers being more trusted (60% strongly or somewhat trust them) than charitable foundations (40%). Among foundations, international organizations are the most trusted (58%).
At the same time, when comparing the leaders of trust – volunteers and foundations – 70% of Ukrainians are ready to help volunteer initiatives with money or other resources, and only 16% – charitable foundations, with the majority rather ready to help local foundations.
What is Ukraine’s position in the World Philanthropy Ranking?
The level of charity in different countries is determined annually based on three key indicators: the percentage of people who have helped strangers, made financial donations, and engaged in volunteer activities.
According to the Charity Aid Foundation, which annually measures the global charity ranking, Ukraine was ranked 150th in 2010 and second in 2022.
“For the seventh year in a row, Indonesia has been at the top of the ranking because their charity is embedded in their religion and culture. For us, it is a response to a threat and crisis, an emotional response to what is happening,” explains Iryna Hrytsayenko, CEO of the Zagoriy Foundation.
In 2024, Ukraine dropped to seventh place, but the level of engagement is still high. According to Iryna Hrytsayenko, our ability to unite in times of threat needs to be transferred into a daily “routine,” into regular payments and monthly subscriptions, i.e. to make charity not emotional but sustainable.
