By Anna Bernadska, Program Director, Centre for the Development of Arts Education, Kiev
(September 2005)

Non-governmental organisations have existed in Ukraine since the country declared its independence in 1991. They were a product of the market reforms and liberalisation that took place as Ukraine made the transition from socialism to democracy.

Whereas most NGOs in the country were involved in economic and social reforms, cultural NGOs focused instead on promoting a new-found national identity and a spirit of national pride in the native language and culture of Ukraine. They widely embraced contemporary art in all its forms and supported the development of cultural policy and the advancement of arts management practices and education. Cultural NGOs were active internationally, quick to adopt modern practices, while state-owned Ukrainian cultural institutions lagged behind.

Cultural NGOs are spread throughout Ukraine. The NGOs in Kiev and other major cities are more developed than those in rural areas. The number of cultural NGOs is difficult to estimate: sources estimate the total to be between two and three hundred. The majority are small organisations lacking developed organisational capacities. The limited infrastructure of NGOs is due to a lack of funding opportunities and legislative restrictions.

The first law in Ukraine to touch on the function of NGOs as opposed to state cultural institutions was The Fundamentals of Legislation on Culture, which was adopted in 1992. This law defined NGOs as legal entities with the same rights to funding as state institutions. Despite this, cultural NGOs remained outside the system of government funding. Foreign foundations and limited business sponsorship have constituted the only sources of support for cultural NGOs for nearly fourteen years. Thanks to this support, cultural NGOs in Ukraine have managed to survive without government funding for a number of years.

The earned income of cultural NGOs remains very small because of restrictive cultural legislation. NGOs are not legally permitted to engage in a full range of commercial activities if they wish to maintain their status as non-profit cultural organisations. These restrictions have had a lasting negative effect on NGOs and have badly affected their sustainability.

Recent reforms in cultural policy, reflected in the new Conceptual Framework for State Cultural Policy (2005), have encouraged cultural institutions – both state-owned and independent – to increase their earned and donated income by engaging more actively in commercial activities and fundraising. However, the practice of raising funds has yet to be widely adopted by many NGOs.

Legal incentives for charitable giving and the private support of cultural NGOs remain limited in number, despite the Law on Charity and Charitable Organisations (1997), which grants tax exemption on up to 4 percent of taxable income donated to local budgets or non-profit organisations. Although the proposed tax incentives were intended to encourage more private contributions to culture, the common business practice in Ukraine of not reporting actual profits scuppered the chances of this law being properly implemented. A draft Law on Mécénats and Mécénat Activities,which is supposed to boost philanthropic activities in the field, has been under discussion for several years without any results as yet.

The funding situation is so difficult for cultural NGOs that they are pushing for the reform of restrictions on access to government funding and the ability to generate earned income. Recent changes have allowed cultural NGOs to improve their funding by forming partnerships with local government and participating in the grant-giving competitions of the Ministry of Culture and Tourism.

In spite of the financial obstacles faced by cultural NGOs in Ukraine, many actively seek international cooperation and participation in international activities. This cooperation occurs almost entirely at the level of personal connections, rather than institutionally. Although the Ukrainian government declared international cultural cooperation to be a political priority, it has done little to support it. Massive bureaucracy and government corruption have until recently prevented Ukraine from accessing major European foundations and programmes.

The situation has begun to change, however. Hopefully, in the aftermath of the Orange Revolution, the lack of large-scale cooperation will be remedied as the country stabilises and corruption is reduced. And if reforms in the cultural field are implemented successfully, Ukrainian culture might flourish and present a positive image of the country internationally.