№ 2/2020

Fìnansi Ukr. 2020 (2): 82–100https://doi.org/10.33763/finukr2020.02.082

SOCIAL AREA FINANCE

BAK Nataliia ¹

¹Yuriy Fedkovych Chernivtsi National University
OrcID ID : https://orcid.org/0000-0003-3774-1745

Private charity in Ukraine and opportunities for its enhancement to finance public development’ needs

The financial aspects of private charity and its impact on the performance of the state social and financial policies, in particular in Ukraine, have not been sufficiently studied. The charity method redistributes part of the national income based on voluntary contributions. The aggregate individual benefits of private charity recipients in some countries reach 0.5–1.0% of their GDP. Therefore, private charity is considered in the context of meeting not only individual but also public needs of development, including at the level of territorial communities. Private charity in Ukraine is characterized by social orientation (solving medical problems and problems of well-being of needy citizens), as well as assistance to the Armed Forces of Ukraine. Unfortunately, quasi-charity is common in Ukraine as a source of financing the current needs of budgetary institutions. Therefore, the urgent task is to improve the target structure of private charity for the development of territorial communities, culture, art, sports, science. There was an improvement in private charity indicators in Ukraine in recent years, namely: the share of citizens who provided donations or volunteer activity, the amount of individual donations. However, these figures are significantly lower than in other countries. The potential of private charity in Ukraine remains untapped by a third. Traditional incentives for private charity for the needs of social and economic development include the use of tax benefits. In Ukraine their characteristic features are limitedness and unfairness. In some cases, they lead to tax evasion. To maximize the quantitative and qualitative effects of private charity in Ukraine it is advisable to supplement and clarify tax legislation in the part of preferential taxation of citizens\\\\\\\' incomes in case of charitable donations and volunteer activities; to increase the level of public trust in organized philanthropic institutions – to strengthen the requirements on the composition, structure and procedure of financial reporting, information on founders, details of sources of funding and directions of use of funds, and the state, to increase the transparency and efficiency of the use of public financial resources. It is important to enhance the role of local governments in the development of private charity.

Keywords:philanthropy, private donations, volunteering, tax discount, social development, charities

JEL: G51, H24, H59, I31, J18, Z13

BAK N. . Private charity in Ukraine and opportunities for its enhancement to finance public development’ needs / N. . BAK // Фінанси України. - 2020. - № 2. - C. 82-100.

Article original in Ukrainian (pp. 82 - 100)

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