Scandal over charitable contributions: is Ukrposhta’s initiative legitimate?
10 January 2025 17:02
ANALYSIS FROM 
The initiative of Ukrposhta to transfer UAH 1 from each parcel to the account of the Kyiv School of Economics (KSE) charitable foundation has caused a wide public outcry. Amid growing interest in the transparency of charitable activities, former Minister of Economy and President of KSE Tymofiy Mylovanov published an explanation of the foundation’s expenses, saying that these funds are used for charitable projects and cover the salaries of the foundation’s employees. At the same time, the practice of such fees raises questions about its legality and compliance with the principle of voluntariness enshrined in the Constitution of Ukraine.
Voluntariness or coercion: legal assessment
Voluntary and compulsory charity is a rather controversial topic, says in an exclusive commentary
“Any form of coercion to participate in charity may be regarded as a violation of the constitutional rights of citizens,” Serhiy Lytvynenko
According to the Constitution of Ukraine, Article 41 guarantees the right of citizens to dispose of their own funds at their own discretion. The Law of Ukraine “On Charitable Activities and Charitable Organizations” also defines charity as an exclusively voluntary activity.
“In the case of Ukrposhta, if customers or employees are forced to participate in charity without their consent, it can be regarded as a violation of their constitutional rights,” Serhiy Lytvynenko said
In particular, if employees are obliged to contribute a portion of their salary to charity or are forced to participate in charity events under the threat of sanctions, this is a violation of their rights. It is important that any charity events are purely voluntary and without coercion, adds the managing partner of Winner Partners Attorneys at Law.
Possible consequences of forced charity
The expert notes what consequences forced participation in charity events may have.
- Legal risks. In case of violation of citizens’ rights, lawsuits against the organization are possible.
- Reputational losses. Dissatisfaction of customers or employees can lead to a decrease in trust in the company.
- Ethical disputes. Instead of a positive image, the organization may face criticism for lack of transparency or forced participation.
How to strike a balance between initiatives and citizens’ rights?
According to experts, to avoid such conflicts, it is necessary to:
- Ensure full transparency of reports on the expenditure of funds.
- Adhere to the principle of voluntariness in charitable activities.
- Thoroughly inform clients and employees about the details of the initiatives, leaving them free to choose.
“Any form of coercion, even with the best of intentions, can be regarded as a violation of rights and have negative consequences,” summarizes Serhiy Lytvynenko
“The Ukrposhta scandal shows the importance of transparency and voluntariness in charity, especially in the context of public sensitivity to such initiatives.
The investigation is ongoing
I would like to remind you that KSE President Tymofiy Mylovanov said in his Facebook post that the organization would conduct an internal audit to find out whether the contributions were truly voluntary:
“My understanding is yes. But we are now conducting our own check and if it turns out that this is not true, we will demand a clearer communication policy or cancel the contract. For us, it is important that voluntary contributions are voluntary,” Tymofiy Mylovanov
Mylovanov also promised to make the results of the investigation public.
In particular, MP Nina Yuzhanina stated that the contributions are not voluntary but are collected automatically, which may contradict the law. Yuzhanina also called on law enforcement agencies to check the actions of Ukrposhta CEO Ihor Smelyansky for legality.
Ukrposhta’s position
Ukrposhta CEO Ihor Smelyansky responded to the criticism by emphasizing that all financial transactions related to charitable contributions are subject to scrutiny by international auditors and law enforcement. He also noted that through its cooperation with the KSE Foundation, the company has donated over UAH 67 million worth of aid to the Armed Forces of Ukraine.
