Civil society organisation or a charitable organisations: what is better to register?

The choice between a civil society organisation (CSO) and a charitable organisation (CO) depends on several key aspects:

1. Number of founders

• CO: Can be established by one person or several founders.
• CSO: Requires at least two founders.

2. Field of activity

• CSO: The scope of activities is not limited by law. An NGO can carry out any activity that does not contradict the charter and laws of Ukraine.
• CO: Established exclusively to provide assistance within the areas of charitable activity clearly defined by law, such as:
• Education, science, culture, sports.
• Healthcare.
• Promoting defence capability.
• Social protection and other areas defined by law.

3. Entrepreneurial activity

• CSO: Has the right to engage in entrepreneurial activity, but only to achieve its statutory objectives.
• CO: Cannot carry out entrepreneurial activities.

4. Administrative expenses

• CSO: There are no restrictions on the amount of administrative expenses.
• CO: Administrative expenses may not exceed 20% of the organisation's total income.

5. Purpose of establishment

• CSO: Suitable for implementing a wide range of socially important projects, supporting communities or lobbying.
• CO: Ideal for focusing on charitable activities aimed at helping specific categories of people or solving social problems.

6. Non-profit status

• Both forms can obtain the status of a non-profit organisation, provided that the charter meets the requirements of tax legislation.

Conclusion: what to choose?

• If your goal is charitable activity in the areas defined by law, choose a CO.
• If you need an organisation with broader capabilities (for example, for project work or social initiatives) that can also engage in entrepreneurial activities, choose a CSO.