The Law - Charity Compliance Guide
Ukraine Charity Law
- Definition of Charitable Activity
- Who Can Operate as a Charity in Ukraine?
- Legal Obligations for Charities
- Transparency and Public Access
- Prohibited Use of Charity Funds
- Legal Liability for Violations
- Important Note for Foreign Charities
US Charity Law
- IRS Form 990 Requirements
- Public Inspection Rights
- Recordkeeping Requirements
- Retaliation and threats
UK Charity Law
- Registration & Governance
- Financial Recordkeeping & Reporting
- Public Access to Documents
- Trustees’ Legal Duties
- Unlawful or Abusive Behaviour
- Report Concerns
- Ukrainian citizens or legal entities
- Foreign charities (e.g., U.S. 501(c)(3)s) with local operations
- International NGOs providing aid or support
- Operate as non-profit entities
- Maintain accurate financial records
- Submit regular reports to state authorities
- Respond to document or information requests from the public and government bodies
- Publish annual reports including financial activity
- Disclose donors and recipients (unless anonymity is legally protected)
- Be accountable to public and government audits or enquiries
- Distributing profits among staff, board members, or founders
- Engaging in political or military fundraising
- Obstructing transparency or using funds for personal gain
- Administrative fines or penalties
- Revocation of registration
- Criminal charges for fraud, embezzlement, or tax evasion
- Annual income, expenses, assets, and liabilities
- Details on leadership, salaries, and large donations
- Public benefit activities
- IRS Form 990 (for 3 most recent years)
- IRS Form 1023 or 1024 (original tax exemption application)
- IRS determination letter
- 26 CFR § 301.6104(d)-1
- 26 U.S. Code § 6104(d)
- IRS Publication 557
- Contributions and grants received
- Expenditures and disbursements
- Program activities and impact
- IRS Publication 4221-PC
- IRS Revenue Procedure 96-15
- IRS Form 990 instructions
- IRS Whistleblower Program – IRC § 7623
- IRS Publication 3114
- First Amendment principles and case law
- Loss of tax-exempt status
- IRS audit or penalties
- Criminal referral for fraud or misrepresentation
- Use IRS Form 13909
- Submit evidence to IRS Exempt Organizations or the FBI Public Corruption Division
- Trustees must act in the charity's best interests
- Governance must follow the charity's constitution or governing document
- Changes to leadership or structure must be reported promptly
- Charities with income over £25,000 must file annual returns
- Audits or independent examinations required depending on size
- Trustees' annual report must describe the charity’s activities and public benefit
- Deliberately refusing access can be a breach of the Charities Act
- Failure to provide information may be reported to the Charity Commission
- Ensure compliance with charity law and the charity’s constitution
- Act prudently and with due care in managing resources
- Report serious incidents (fraud, abuse, governance failures)
- Charities Act 2011 (breach of duties)
- Protection from Harassment Act 1997
- Defamation Act 2013 (if making false claims publicly)
- Report serious misconduct online
- Anonymous submissions allowed if safety is a concern
Law of Ukraine No. 5073-VI
This section outlines how international and local charities must comply with Ukrainian law. All organizations providing humanitarian aid within Ukraine must follow these requirements regardless of their country of registration.
📘 What Is Charitable Activity?
According to Ukrainian law, charitable activity means voluntary help (in the form of money, services, or goods) to support humanitarian goals such as poverty relief, medical support, education, or disaster response.
🛂 Who Can Operate as a Charity in Ukraine?
Organizations must be officially registered in Ukraine to conduct operations legally on the ground.
📋 Legal Obligations for Charities
All charitable organizations operating in Ukraine must:
🔍 Transparency and Public Access (Article 17)
🚫 Prohibited Use of Charity Funds
Charities are strictly forbidden from:
⚖️ Legal Liability for Violations
Organizations that fail to comply may face:
This applies even to small, volunteer-led or privately funded charities operating in Ukraine.
📎 Important Note for Foreign Charities
If your organization is registered abroad (e.g., a 501(c)(3) in the U.S.) but operating in Ukraine, you are still required to comply with this law. This includes transparency, accurate recordkeeping, and non-retaliatory conduct toward public inquiries.
🇺🇸 U.S. Charity Compliance: Key Requirements for 501(c)(3) Organizations
This section outlines the legal obligations for U.S.-based nonprofits under federal law, particularly for organizations operating under IRS 501(c)(3) status—even if they work internationally.
📄 Mandatory Financial Reporting: Form 990
All tax-exempt organizations must file IRS Form 990, 990-EZ, or 990-PF annually (except churches or certain small orgs). This includes:
Legal Source: 26 U.S. Code § 6033
📬 Public Inspection Rights
Organizations must provide public access to the following documents upon request:
Documents must be made available without requiring identification or justification from the requester.
Legal Sources:
🗂️ Recordkeeping Requirements
Charities must retain accurate records of:
Poor recordkeeping may lead to loss of tax-exempt status or investigation.
Legal Sources:
🚨 Retaliation or Intimidation of Requesters Is Illegal
It is unlawful to retaliate, threaten, or intimidate anyone who makes a lawful public document request under U.S. law.
Attempts to chill transparency may be reported to the IRS Whistleblower Office, and may result in penalties or investigation.
Legal Sources:
⚖️ Consequences of Non-Compliance
Charities refusing to comply may be reported using IRS Form 13909 (Tax-Exempt Organization Complaint).
📥 Make a Complaint
If you believe a 501(c)(3) is in violation of its obligations, you may:
🇬🇧 UK Charity Compliance: Key Legal Responsibilities
This section outlines the legal and ethical obligations of charities registered in the UK or operating under UK law, with emphasis on transparency, governance, and public accountability.
📝 Registration & Governance
Charities must be registered with the Charity Commission if their annual income exceeds £5,000, unless they are already a registered charitable company.
Legal Sources: Charities Act 2011 §§30–39
📊 Financial Recordkeeping & Reporting
Charities must maintain accurate and complete financial records for at least 6 years, and file annual accounts with the Charity Commission.
Legal Sources: Charities (Accounts and Reports) Regulations 2008
📂 Public Access to Documents
Members of the public have the right to request access to the charity’s governing documents, financial statements, and annual returns.
Regulator: Charity Commission
✅ Trustees’ Legal Duties
Legal Source: Charity Commission Guidance: The Essential Trustee (CC3)
🚫 Unlawful or Abusive Behaviour
Misusing charity funds, refusing document access, or intimidating public requesters may violate:
Possible Consequences: Charity investigation, deregistration, fines, criminal charges
📢 Report Concerns
Use the Charity Commission’s official service to report a concern about a charity: