Ukraine Civil Society Environment Activity UKRAINE CIVIL SOCIETY ENABLING ENVIRONMENT ACTIVITY

Semi-Annual Progress Performance Report

Ukraine Civil Society Environment Activity (USAID “Citizens in Action” Project) FY 2019 SEMI-ANNUAL PROGRESS REPORT (01 October 2018 – 31 March 2019)

Award No: AID-121-A-14-00002

Prepared for USAID/Ukraine C/O American Embassy 4 Igor Sikorsky St., Kyiv, Ukraine 04112

Prepared by Mariya Heletiy Ukrainian Center for Independent Political Research (UCIPR) 5 Vuzivska St., Ap. 129 Kyiv, Ukraine 03037

20 Vynnychenka St., Office 42 Kyiv, Ukraine 04053

Table of Contents

I. ACRONYMS AND ABBREVIATIONS 2 II. CONTEXT UPDATE 2 III. EXECUTIVE SUMMARY 3 IV. KEY NARRATIVE ACHIEVEMENT 7 V. PROGRESS AGAINST TARGETS 16 VI. PERFORMANCE MONITORING, EVALUATION AND LEARNING 17 VII. LESSONS LEARNED 17 VIII. ENVIRONMENTAL MONITORING 18 IX. PROGRESS ON LINKS TO OTHER ACTIVITIES 18 X. PROGRESS ON LINKS TO HOST GOVERNMENT 18 XI. PROGRESS ON INCLUSIVE DEVELOPMENT 19 XII. FINANCIAL INFORMATION (Required for Contracts; Optional for Other Award Types) 20 XIII. SUB-AWARD DETAILS 20 XIV. ACTIVITY ADMINISTRATION 20 XV. ATTACHMENTS 23

1 I. ACRONYMS AND ABBREVIATIONS AA - Association Agreement with the European Union Cabinet Decree No. 156 - Cabinet Decree No. 156 of February 14, 2018 on Some Issues of Providing Financial Support to Civil Society Organizations CMU – Cabinet of Minister of Ukraine CO – Charitable Organization CSO – Civil Society Organization DOBRE – USAID/Decentralization Offering Better Results and Efficiency ECNL – European Center for Not-for-Profit Law ENGAGE – USAID/Enhance Non-Governmental Actors and Grassroots Engagements EU - European Union GOU – Government of Ukraine ICNL – International Center for Not-for-Profit Law IFES – International Foundation for Electoral Systems IRF – International Renaissance Foundation MP – Member of Parliament MoE – Ministry of Education MoJ – Ministry of justice of Ukraine MoF – Ministry of Finance of Ukraine MoSP – Ministry of Social Policy MTJD – Main Territorial Justice Department NGO – Non-Governmental Organization NUPAS – USAID’s Non-U.S. pre-award survey OSCE – Organization for Security and Cooperation in Europe PULSE – USAID/Policy for Ukraine Local Self-Governance RADA – USAID/Ukraine Responsible Accountable Democratic Assembly RPR – Reanimation Package of Reforms UCBI – USAID/Ukraine Confidence Building Initiative UCIPR – Ukrainian Center for Independent Political Research UNDP – United Nation Development Programme UNITER – Ukraine National Initiatives to Enhance Reforms U-RAP – USAID/ Ukraine Responsive and Accountable Politics Program USAID OFM – USAID Office of Financial Management USG – United States Government SFS – State Fiscal Service of Ukraine VAT – Value Added Tax VRU – Verkhovna Rada of Ukraine (Parliament)

II. CONTEXT UPDATE The fifth year of the project implementation was marked by the active Presidential election campaign which had negative impact on advocacy efforts of the civil society. Even with

2 significant and progressive civil society enabling legislative reforms, it was important to work for ensuring that regulatory framework fostered civil society strengthening and protected political and civil rights in Ukraine as well as prevented possible rollbacks. Remarkably, weak financial diversification of the civil society sector and willingness to control international funding to CSOs by authorities are the biggest challenges and concerns. Despite some improvements in the area of public funding of CSOs, most state funding is disbursed in non-competitive way. After the increasing transparency of public funding of veteran CSOs, there were attempts to return non-contest based public funding.

Moreover, amendments to the Tax Code allowed CSOs to benefit from more favorable tax regime, improved procedures for obtaining non-profit status and ensured better opportunities to conduct entrepreneurial activities, sometimes CSO struggle to enjoy these improvements due to poor implementation of newly adopted legislation. Also, amendments to the Tax Code in the part of tax incentives for charity and amendments to the Law on Registration, which were developed and registered in the Parliament, were not considered by the Parliament.

Upcoming presidential and parliamentary elections as well as attacks on civil society activists, which remain unpunished, and introduction of Martial Law in 10 oblasts significantly affected the environment for civil society, made CSO operation more difficult and forced them to focus on challenges and own protection instead of implementation of activities.

At the same time, decision-making of citizens at the local level improved, despite local democracy for improving citizens’ participation in decision making was developed unequally and very often even good local democracy mechanisms are not applied due to a low citizens’ engagement.

III. EXECUTIVE SUMMARY A. Key Narrative Achievements Overall purpose of the program is to improve the legislative and policy environment to become more conducive to civil society needs and to reflect the European standards. The Program envisages strengthening of public oversight and engagement in governance, which is only possible through improvement of legislative/policy environment for media and civil society, as well as strengthening CSO capacity to engage citizens and to represent their interests at the national and local levels. UCIPR’s unique approach covered the full cycle of improvement of legislative and administrative environment for civil society development in its key areas. Namely, UCIPR combined gaps and opportunity analysis, monitoring of emerging challenges, development of proposals for improvement of legal acts and administrative practices, initiating and leading advocacy campaigns as well as offered

3 awareness campaigns, methodological support and monitoring of adopted legislation for civil society development.

During the last 6 months, UCIPR monitored draft laws and legal initiatives and the practice of implementation of the laws (Laws on Public Associations, on Charitable Foundations, Tax and Budget Codes, Law on Registration, and the National Strategy for Promoting Civil Society Development); advocated for improving CSO legal frameworks, preventing additional CSO financial reporting, repealing asset declarations for anticorruption activists, ensuring financial sustainability of CSOs, and improving local democracy.

Together with the established coalitions, UCIPR improved CSO legislation in the area of CSO contest based public funding and introduced contest based public funding of veteran CSOs to increase opportunities of competitive financing for CSOs at the national and local levels, supported Dnipropetrovsk, Kharkiv and Zhytomyr oblast administrations with the introduction of CSO contest based public funding. It also developed Explanatory Note to the Tax Authorities to improve the practice of granting non-profit status to CSO conducting entrepreneurial activities, proposals for ensuring 20% of administrative expenses for youth CSOs receiving public funding from the Ministry of Youth and Sport, amendments to the Cabinet Decree No. 440 on Procedures for Maintaining the Registry of Non-Profit Organizations to simplify termination of the CSO operation, amendments the Cabinet Decree No. 183 on public funding of CSOs of people with disabilities aimed at introduction of the contest based public funding of CSOs of people with disabilities and proposals to the Action Plan 2019 for implementation of the National Strategy for Promoting Civil Society Development. Moreover, it extended public funding to all veteran CSOs, including those CSOs without the all-Ukrainian status, to receive public funding though amendments to the Budget Code and improved local democracy though amendments to the Draft Law on Amendments to the Law on Local Self-Governance, development model city charter and adoption of local acts in Khmelnytskyy, Kropyvnytskyy, Ternopil, Drohobych, Trostyanets, Zhytomyr, Kryvyy Rih, Mukachevo, Obukhiv.

Moreover, the UCIPR team advocated for simplification of the CSO registration proposals, introducing tax incentives for individuals and companies donating to CSOs and introduction of contest based public funding of CSOs at the local level, launching online registration of legal entities and contest based public funding of CSOs and adoption of the Explanatory Note for Tax Authorities regarding CSO right to entrepreneurial activities. Together with partners, it also prevented adoption of the restrictive CSO legislation (Draft Law No. 8501 on Additional CSO Reporting receiving funding from foreign countries and foreign non- governmental organizations) and improved access to information regarding CSO registration though monitoring of the websites of justice departments and providing recommendations for improving citizens access to this information.

In addition, it educated stakeholders in key issues of CSO enabling legislation; raised their awareness about existing opportunities though hotline and information materials, provided consultations regarding CSO enabling legislation and mechanisms of local democracy,

4 organized conferences for CSOs and public officials regarding proper implementation and use of new legislation.

Finally, UCIPR strengthened its own technical and organizational capacity by conducting its Journey to Self-Reliance to sustain its activities and to ensure the sustainability of the civil society sector. For this purpose, UCIPR improved its governing system and financial management, analyzed funding opportunities to be able to continue to secure CSO enabling environment after July 2019 and refined organizational strategies accordingly (UCIPR fundraising and organizational strategies and operation plan for the next two years). It strengthened its own technical capacity, improved its legal expertise and the quality of analytical materials. UCIPR also improved its communication with the international community, donors, local self-government bodies, citizens, other CSOs and strengthened its cooperation with donor organizations providing support to CSOs, including the EU, USAID projects, SIDA, DANIDA, IRF, and ICNL/ECNL (5 project applications were prepared and submitted for consideration).

B. Quantitative Highlights During the reporting period, UCIPR continued to improve CSO legislation together with 4 established networks. Jointly they ran 12 advocacy campaigns at the national level (10 were successful) and 12 at the local one (12 were successful). As a result, 1 public policy (Law on Local Self-Governance) and 3 bylaws were changed (Cabinet Decree No. 156 on Public Funding of Veteran CSO, Cabinet Decree No. 1049 on CSO public funding, Cabinet Decree No. 440 on Maintenance of Non-Profit Register), 2 bylaws were adopted (Model Territorial Community Charter, Cabinet Decree on Public Expertise of Executive Bodies), 1 bylaw was implemented (introduction of contest based public funding of veteran CSOs). During campaigns over 40 CSOs were involved and about 25% of CSOs improved their oversight capacity.

At the local level, due to the UCIPR efforts, e-consultations were introduced in 5 cities (Khmelnytskyy, Ternopil, Drohobych, Trostynets, Zhytomyr). 1 city adopted amendments to the City Charter – Kropyvnytskyy).

It also conducted 3 monitoring (legislative proposals, websites of Territorial Justice Departments to verify availability all information on CSO registration, granting of non-profit status to CSOs conducting entrepreneurial activities). Based on the monitoring, 1 methodological recommendation was developed (Explanatory Note of the Ministry of Finance regarding granting non-profit status to CSOs conducting entrepreneurial activities). Based on the result of the City Democracy Index 2018, recommendations to 24 city councils were developed.

UCIPR trained 265 people during its trainings (150 during webinar on CSO financial sustainability, 65 public officials and CSO representatives (38 women, 27 men) for 2 one-day Schools of Local Democracy and 50 during joint training with OCSE project Coordinator on

5 contest based public funding of veteran CSOs). UCIPR staff also provided over 50 consultations about CSO enabling legislation to both public officials and CSOs. It also continued to administer hotline on CSO legislation and supported CSO legal support center (partner organization) in Kharkiv. 165 consultations were provided though the hot line regarding CSO registration, taxation and reporting.

It developed 12 information materials on CSO legislation and local democracy (Booklet and infographic on organizing public hearing in Mariupol, Booklet and infographic on submitting draft decision to Mariupol city council under local initiative, Booklet and Infographic on holding public hearing in Bila Tserkva, Booklet and Infographic on submitting draft decision to Bila Tserkva City Council under local initiative, Infographics on organizing public hearings and submitting draft decision to city council under local initiative in Kropyvnytskyy, Manual on CSO Registration and Operation, and Booklet on tax benefits for Business in case of donating to CSOs.

UCIPR organized 5 public event devoted to civil society legislation, including media event Prostir-talks on social entrepreneurship (joint event with media partner “Civic Space”), presentation of monitoring of availability of information on CSO registration displayed at the websites of the Justice Departments (over 1500 people viewed infographic), presentation of the City Democracy Index 2018 (over 30 media outlets published news about the Index), Round Table “Transparency of CSO Public Funding” (February 7, 2019), Focus group “Interactions between State and Civil Society” (March 06, 2019), Conference “CSO Enabling Environment Achievements and Challenges” (February 21) to assess project achievements in 5 years (3 members of parliament, 20 members of the Cabinet of Ministers and over 50 CSO representatives ere acknowledged).

Finally, UCIPR continued its relationships with about 100 local and 4 international partners. It also disseminated 6 monthly policy updates in English and Ukrainian and 24 weekly updates to keep its partners informed about UCIPR achievements and developments in the area of CSO enabling legislation.

C. Activity Administration There was no significant management or operational challenges during October 2018 – March 2019.

D. Subsequent Reporting Period During the April – July 2019, UCIPR will continue all activities envisaged by the Implementation Plan and continue all efforts started before. It will hold consultations with leading CSOs regarding problems in CSO legislation or areas to be improved and will continue to advocate for introducing positive changes into existing CSO legislation, in particular for ensuring simplification of CSO registration, improving CSO symbols and identity protection (Draft Law No. 7372). It will also continue to advocate for launching on-

6 line registration of CSOs, adoption amendments to the Tax Code (Draft Law No. 8237) for ensuring tax incentives for charity givers and introduction of the contest based public funding of CSOs of people with disabilities (Cabinet Decree No. 183). In addition, it will continue advocacy campaign for introducing instruments of local democracy and adoption of city charters (Mykolaiv, Kyiv, Kryvyy Rih, Mukachevo, Ternopil, Zhytomyr, Khmelnytskyy, and Obukhiv) and present Methodological recommendations for developing Model Territorial Community Charter in the Ministry of Regional Development (April 2019).

Moreover, having learned experience of other countries, UCIPR will continue to analyze mechanisms for ensuring CSO financial suitability to be introduced in Ukraine as well as it will continue to monitor the implementation of the National Strategy for Promoting Civil Society Development, advocate against restrictive CSO legislation.

Finally, it will continue to implement UCIPR mission and to work in the areas of UCIPR expertise, including civil society enabling environment, political processes and elections, non-discrimination, minorities and indigent peoples’ rights protection, local democracy and civic education. After July 2019, UCIPR will continue its efforts under IR 3.2 “Government more responsive and accountable to citizens” which also reflects UCIPR Mission «Influence Public Policy in the Area of Democracy through Development, Communication, and Advocacy” to ensure capability of civil society, social unity and political accountability.

IV. KEY NARRATIVE ACHIEVEMENT The purpose of the activity is to improve the legislative and policy environment to be more conductive to civil society and reflect European standards. To achieve this, UCIPR will focus on three objectives:

Objective 1: (notional 40%) Quality of relevant civil society enabling legislation and policy improved Objective 2: (notional 40%) Capacity of public officials and CSOs to ensure effective implementation of legislation and policy improved Objective 3: (notional 20%) Technical and organizational capacity of UCIPR as a leader and driver of civil society legislative efforts increased

Objective 1: Quality of relevant civil society enabling legislation and policy improved Expected Results During the last 6 months, UCIPR monitored draft laws and legal initiatives submitted to the Parliament and central executive bodies related to CSO operation and general rights and freedoms, held consultations with leading CSOs regarding problems in CSO legislation and advocated for improving CSO legal frameworks. During that period, UCIPR efforts were focused on legislative proposals related to simplification of the CSO registration, preventing

7 additional CSO financial reporting, repealing asset declarations for anticorruption activists and ensuring financial sustainability of CSOs, and improving local democracy.

Together with the established coalitions (coalition for favorable tax environment and transparent public funding for non-profits, coalition for local democracy, coalitions for civil society development and CSO registration), UCIPR worked to improve CSO legislation in the area of introducing better tax incentives for CSO givers, contest based public funding of CSOs (CSOs of veterans and people with disabilities at the national and local levels), ensuring 20% of administrative expenses and 20% of expenses for institutional development for youth CSOs receiving funding from the Ministry of Youth and Sport and introducing local democracy mechanisms in the Ukrainian cities.

In the area of CSO enabling legislation, the UCIPR team drafted proposals to existing CSO legislation and advocated for their adoption. In this regard, it continued its advocacy campaign for simplifying state registration and operation of the civil society organizations (Draft Law No. 7372), held consultations with civil society organizations regarding provisions of the Draft Law No. 7372 on CSO registration to ensure that civil society feels ownership of the proposed changes to CSO legislation. Moreover, the UCIPR team continued to advocate for launching online registration of legal entities (including CSOs) via E-Services Portal of the Ministry of Justice of Ukraine and prepared Terms of Reference for launching this administrative service. For this purpose, it analyzed the amended Order of the Ministry of Justice (MoJ) No. 4146/5 of December 29, 2018 on Approval of Changes to Certain MoJ Orders Regarding Registration of Legal Entities, Private Entrepreneurs and CSOs1 in order to make sure that it did not negatively affect CSO registration procedures. It also developed amendments to the Cabinet Decree No. 440 of July 13, 2016 on Approval of the Procedures for Maintaining the Registry of Non-Profit Organizations, which resolved the issue of simultaneous exclusion of the CSOs from the Registry of Non-Profit Organizations and termination of state registration of such legal entities.

UCIPR team also continued to advocate against restrictive CSO legislation (Draft Law No. 8501 on Additional CSO Reporting for CSOs receiving funding from foreign countries and foreign non-governmental organizations). And it conducted monitoring of the websites of the Main Territorial Justice Departments in all oblasts of Ukraine and analyzed the quality of information displayed on the websites regarding CSO registration, applicability and access to this information to citizens. Based on the monitoring, the recommendations for Justice Departments were developed and the majority of them were taken into account.

As regards to the CSO taxation and financial stability, the project team continued to run advocacy campaign for adopting changes to the Tax Code of Ukraine (Draft Law No. 8237)

1 The amendments envisaged submitting for online registration only hard copies of e-documents with e- signature (before the amendments copies of documents were allowed). Such amendment can be perceived as an attempt to prevent fraud and raider attacks.

8 aimed at including introduction of tax incentives for individuals and companies for donations to civil society organizations. It also analyzed the Draft Law on Amendments to the Tax Code regarding Taxation of Repatriated Capital (Draft Law No. 8857) to the extent of its effect on non-profit status for civil society organizations. In addition, the project team held discussion with the RPR members regarding public funding of CSOs and gaps in legislation on public funding to be resolved through amendments to the appropriate laws or Cabinet Decrees (Cabinet Decree No. 156 on public granting of veteran CSOs, Cabinet Decree No. 183 on public funding of CSOs of people with disabilities, and Cabinet Decree No. 1049 on contest based public funding of CSOs). It also worked on ensuring 20% of administrative expenses for youth CSOs receiving contest-based funding from the Ministry of Youth and Sports (Cabinet Decree No. 116 and Order of the Ministry of Youth and Sport No. 808).

Due to UCIPR efforts, amendments to the Cabinet Decree No. 1049 on Procedures for CSO Public Funding and Amendments to the Cabinet Decree No. 156 on CSO Public Funding were adopted and contest-based public funding of veteran CSOs was launched. It also allowed eliminating corruption from public funding of CSOs, enlarged the number of recipients receiving public funding and improved veteran CSO capacity. In addition, UCIPR developed amendments to the Cabinet Decree No. 156 and the Article 87 the Budget Code to allow all veteran CSOs, including CSOs without the all-Ukrainian status, to receive contest-based public funding (amendments to the Budget Code were adopted and entered into force). The amendments allowed CSOs without all-Ukrainian status to receive contest-based public funding from the Ministry of Social Policy. Moreover, amendments to the Article 91 of Budget Code replaced the administrative expenses of the veteran CSO receiving funding from the local budgets by “activities” of veteran CSOs.

Furthermore, UCIPR team prevented cancelling of contest based public funding of veteran CSOs by drafting counter-proposals to the amendments of the MoSP to the Cabinet Decree No. 156 which were aimed at providing public funding to 4 CSOs with all-Ukrainian status without holding competition. As a result, non-competitive public funding of veteran CSOs was envisaged only for 2018 and 2019. To monitor the transparency of the CSO granting process, the UCIPR experts joined selection commission of the State Service of Veterans' Affairs which selected CSO projects to be funded from the State Budget. As a result of the contest, UAH 3.7 million was allocated for funding of 16 CSO projects in 2018.

Besides that, the UCIPR team developed amendments the Cabinet Decree No. 183 on public funding of CSOs of people with disabilities aimed at introduction of the contest-based public funding of CSOs of people with disabilities and advocated for introduction of contest-based public funding of CSOs by the State Oblast Administrations under the Cabinet Decree No. 1049. It supported Kharkiv, Dnipropetrovsk Ivano-Frankivsk, Zhytomyr and Kyiv city councils in developing Local acts on introduction of contest-based public funding of CSOs from local budget (CSOs of veterans, people with disabilities). The contests were launched in Dnipropetrovsk and Kharkiv. It also developed the model procedures for holding contest based public funding of CSOs for the Ministry of Social Policy (provided to oblast administrations and oblast councils use it for introducing the contest).

9

Because of numerous cases of denial to grant non-profit status to CSOs planning to conduct entrepreneurial activities (Vinnytsya, Kharkiv, and Donetsk oblasts), the working group at the Ministry of Finance was established and as a result of joint work of the group (UCIPR was a member), the Explanatory Notes of the Ministry of Finance No. 11210-09-5/3214 of February 06, 2019 to Tax Authorities regarding allowability of entrepreneurial activities for non-profit organizations were developed and adopted. They clearly set that non-profit organizations can conduct entrepreneurial activities according to the Tax Code and excluded possibilities misinterpretation by the tax authorities the Tax Code provisions.

Moreover, UCIPR team together with the Ministry of Youth and Sport conducted analysis of Ukrainian legislation and drafted amendments for securing 20% of administrative expenses for youth and children CSOs dealing with patriotic education and receiving funds from the state budget (Ministry of Youth and Sport).

Experience of other countries having implemented the percentage philanthropy mechanism for CSO funding and discussion of other mechanisms for CSO funding to be introduced in Ukraine was discussed during the round table on transparency of state funding of non-profit organizations (February 7, 2019) focused on the best European practices of CSO public funding and CSO public funding at the local level. The complicated issues in the area of CSO public funding were discussed during Focus Group on interactions between state and CSOs (March 6, 2019). UCIPR also organized a conference on CSO Enabling Environment Achievements and Challenges to share main achievements in the area of CSO enabling legislation made possible since 2014 and to highlight new challenges faced by civil society sector in Ukraine.

UCIPR also continued to monitor the implementation of the National Strategy for Promoting Civil Society Development at the national level and developed proposals to the Action Plan 2019.

As regards local democracy, amendments were developed to the Law of Ukraine on Local Self-Governance. The amendments were developed by the working group established under the Parliamentary Committee on State Building, Regional policy and Local Self-Governance and set the requirements for the regulating mechanisms of local democracy by local self- governance bodies and defined the list of issues to be regulated by local self-governing bodies.

On March 6, 2019, the Cabinet of Ministers approved the changes to Cabinet Decree No. 976 of November 5, 2008 on Procedures for Holding Public Expert Evaluation of Executive Bodies, which introduced clear timelines for holding public expert evaluation of executive and local self-governing bodies, set the 14 days' deadlines for considering the public expert evaluation opinion, and envisaged engaging CSOs in reviewing the conclusions of public expert evaluation. The Cabinet of Ministers also approved proposals to the Draft Law on Amendments to Some Laws of Ukraine regarding E-petitions, which propose to amend the

10 procedures for e-petitions considering by the local self-governing bodies and introduce considering of the e-petitions at council session or committee meeting.

UCIPR as a part of expert group of the Ministry of Regional Development, Construction and Housing developed methodological recommendations for the development of Territorial Community Charter (Model Territorial Community Charter), published at Ministry website on February 202). The Model Charter defines clear procedures for regulating local democracy and citizens’ participation in decision making, including local initiatives, public hearings, town hall meetings, public consultations, reporting of public officials and local self- government bodies. In addition, the charter envisages development of the strategic plan for community development and regulations about transparency and openness of the local self- government bodies.

New Charter of Kropyvnytskyy Territorial Community Charter was developed with the UCIPR support and approved by the local council on January 313. The new Charter simplified the submission of the local initiative (reduced number of signatures to be collected), identified clear list of prerequisites for denying to hold public hearings, and ensured obligatory consideration of the recommendations of public hearings and transparency of the process.

Under cooperation with the East Europe Foundation, it was developed model local act on e- consultations to regulate e-consultations with citizens through e-consultations web portal. The service provides opportunity for local self-government bodies to engage citizens into decision making process through discussions of draft documents, surveys and opinion polls. In partnership with EGAP Program (East Europe Foundation), UCIPR provided support to local councils of Khmelnytskyy, Ternopil, Drohobych, Trostyanets, and Zhytomyr4 regarding introduction of the e-consultations instrument5, in particular they helped representatives of local self-government bodies to draft local act on e-consultations taking into consideration the peculiarities of the region.

UCIPR team as a part of working group under the Parliamentary Committee on State Building, Regional Policy and Local Self-Governance developed amendments to the Law on Local Self-Governance of Ukraine to the extent of local democracy, which are aimed at binding local authorities to regulate local democracy by the territorial community charter and local regulations.

UCIPR team also participated in project-related conferences, including Workshop on CSO engagement into decision-making at the local level in Ukraine and Belarus (Minsk, Belarus, January 11-12), where shared Ukrainian experience in regulating local democracy and

2 https://decentralization.gov.ua/news/10653?page=0 and https://goo.gl/dGTME4 3 https://is.gd/viBSYd 4 https://goo.gl/ajTvCT and https://goo.gl/owK2zD 5 https://goo.gl/ajTvCT and https://goo.gl/owK2zD

11 cooperation of CSOs and local authorities. UCIPR team also participated in working groups of the Networks of 15 CSO Hubs working in the regions (Kyiv, December 13) to present Urban Democracy Index 2018. In addition, the Urban Democracy Index 2018 was presented during the meeting of the leaders of the local coalition of Reanimation Package of Reforms and the improving of local democracy was discussed.

During reporting period, the advocacy campaigns were launched and local acts for introducing local democracy instruments were adopted in Kryvyy Rih (Local Acts on Local Initiatives and on E-Consultations); Mukachevo (City Charter regulating such instruments of local democracy as local initiatives, e-petitions, public hearing, town hall meetings, public consultations, public expertise, reporting of public officials and local self-government bodies); Ternopil (renewed Local Act on Participatory Budget and City Charter regulating local initiatives, e-petitions, public hearings, town hall meeting, public consultations, public expert evaluation, reporting of public officials and local self-government bodies); Zhytomyr (City Charter regulating local initiatives, e-petitions, public hearings, town hall meeting, public consultations, public expert evaluation, reporting of public officials and local self- government bodies); Khmelnytskyy (amendments to the City Charter); Obukhiv (Territorial Community Charter regulating local initiatives, e-petitions, public hearing, town hall meetings, public consultations, public expert evaluation, reporting of public officials and local self-government bodies). According to the City Democracy Index 2018, recommendations were developed for improving local democracy in 24 cities. These recommendations were used during the drafting of the Kropyvnytskyy City Charter (adopted by city council on January 31).

Objective 2: Capacity of public officials and CSOs to ensure effective implementation of legislation and policy improved

The earlier adoption of progressive civil society legislation was a significant step forward, but it requires constant support in implementation. Organizations and public officials at the local level are often uneducated about new legislation and do not have skills, capacity and support to effectively implement or use it at the proper level. Moreover, civic and governmental stakeholders do not often monitor outcomes of implemented regulations in order to make adjustments and improvements. Therefore, during the last 6 months, UCIPR monitored the practice of implementation of the Laws on Public Associations, on Charitable Foundations, Tax and Budget Codes (to the extent of regulations for CSOs), Law on Registration, and the National Strategy for Promoting Civil Society Development. It educated stakeholders in key issues of CSO enabling legislation, raised their awareness about existing opportunities through hotline and information materials, provided consultations regarding CSO enabling legislation and mechanisms of local democracy, organized conferences for CSOs and public officials regarding proper implementation and application of new legislation. In particular, the project experts monitored the implementation of CSO enabling legislation, including the Cabinet Decrees No. 1049 on contest-based public granting and No. 156 on contest-based public granting of all Ukrainian veteran CSOs. They supported the implementation of the Cabinet Decrees No. 1049 and 156 by the Ministry of Social Policy and

12 State Service for Veteran Affairs, including participating in the selection process of veteran CSO projects and worked for ensuring proper implementation of the Cabinet Decrees No. 1049 and 156 at the oblasts level.

In addition, the project team continued to facilitate adherence to the Tax Legislation to the extent of granting non-profit status by the tax authorities and monitored the quality of work of tax authorities in terms of granting the non-profit status to CSOs and their approach to the CSO taxation under new regulations established by the latest amendments to the Tax Code and adopted bylaws. The monitoring was conducted through surveys of stakeholders and CSO partners, UCIPR public events and analysis of the questions received to the hotline. The results of the survey were used for advocacy campaigns aimed at improving implementation of the legislation by the Tax Authorities, Ministry of Finance and Cabinet of Ministers.

It also monitored the websites of Territorial Justice Departments to verify whether all necessary information on CSO registration was available at their websites. As an outcome of this monitoring, recommendations for improving citizens’ informing about CSO registration procedures were developed and provided to the Territorial Justice Departments and presented during public discussion.

Furthermore, UCIPR conducted trainings on recent civil society enabling laws and decrees. In particular, it held a seminar for public officials in Ivano-Frankivsk on new procedures for competitive public granting of social CSOs from local budget (CSOs of veterans and people with disabilities) according to the Cabinet Decree No. 1049 in Ivano-Frankivsk and round table on new opportunities for givers envisaged by the Draft Law No. 8237 on Amendments to the Tax Code. The purpose of these webinars was to familiarize representatives of the civil society and charitable organizations with new procedures introduced to the Cabinet Decree No. 1049, to explain which organizations are eligible for public granting according to the Decree and which legal acts have to be adopted at the local level as well as to make them aware of the existing benefits for philanthropists under the amended Tax Legislation, including tax exemptions for non-resident givers, threefold increase of non-taxable charitable aid, better conditions for treatment abroad and for social support. The webinars enhanced competencies of 100 CSO representatives in raising funds from the public authorities.

The UCIPR team conducted research on the City Democracy Index-2018 to identify opportunities and gaps for citizens’ participation in decision-making at the city level. In the framework of the research, legal acts of local self-government bodies were analyzed. The analysis covered regulations on introducing instruments of local democracy (local initiatives, public hearings, public consultations, participatory budgets etс.) in 25 oblast centers of Ukraine.

The UCIPR team also organized 2 Local Democracy Schools in Bila Tserkva (Kyiv oblast) and Mariupol (Donetsk oblast) to teach local activists and public officials how to apply the local democracy instruments available in the city. The Schools improved citizens’ awareness

13 about existing local democracy tools and opportunities for citizens’ participation in decision- making process at the local level and improved cooperation between public officials and civil society representatives. 65 people were trained.

Finally, UCIPR also developed information materials about availability and functioning of hotline for CSOs, CSO public funding and taxation, booklets about mechanisms of local democracy available in Bila Tserkva (contain information about existing local democracy instruments in the city and explanation about their application). It continued to administer hotline to assist CSOs, charitable organizations and volunteers in application of the Laws on Public Associations, on Charitable Foundations, Volunteering Activities, new tax legislation for non-profits and other issues related to CSO operation through phone, email, Facebook, and Google form.

Objective 3: Technical and organizational capacity of UCIPR as a leader and driver of civil society legislative efforts increased

During the last 6 months, UCIPR focused its efforts on its Journey to Self-Reliance to ensure UCIPR sustainability in the future and the sustainability of the civil society sector. For this purpose, UCIPR analyzed its development challenges and development challenges of the civil society sector as well as opportunities for fostering stable, prosperous, and self-reliant CSOs, including UCIPR financial viability. It also continued to work on strengthening its own technical and organizational capacity by improving its governing system and financial management, including implementation of the USAID OFM reviews and audit reports. In particular, it improved its governing system, financial management and organizational capacity, reviewed its Charter to the extent of responsibilities of its managing bodies and refined organizational and fundraising strategies to be able to continue to secure CSO enabling environment after July 2019. It also developed operation and fundraising plans for implementation of the UCIPR Strategy for 2018-2020 and monitoring and evaluation plan to assess the results and outcomes of the organization achieved for last 2 years and reviewed fundraising approaches for improving financial sustainability of UCIPR.

Furthermore, UCIPR analyzed funding opportunities and developed UCIPR fundraising strategy and plan for the next two years. In this regard, it is strengthening its cooperation with donor organizations providing institutional support to CSOs, including EU funding opportunities (USAID, SIDA, DANIDA, IRF, ICNL/ECNL and OSI) and potential CSO partners (ISAR/Yednannia, East Europe Foundation etc.). To ensure better understanding of the need of the sector at the national and local level, UCIPR organized focus groups and online surveys of the needs of its clients and partners (RPR, Coalition for Fair Referendum, Coalition to Protect Civil Society, advisory bodies etc.)

At the same time, UCIPR also continued to work on strengthening its own technical capacity and further developed its legal expertise and analytical skills through its staff participation in trainings, study visits, international events and in-country networking activities. Due to collaboration with the internationally recognized think tanks, such as the International

14 Center for Not-for-Profit Law (ICNL), European Center for Not-for-Profit Law (ECNL), Ukrainian Think Tanks Office in Brussels, FHI 360 etc., it improved the quality of UCIPR expertise and the quality of analytical materials. Participation in the training, discussions and conferences improved UCIPR staff skills in lawmaking, CSO legislation, international best practices in CSO regulation, fundraising etc.

UCIPR also improved its communication with the international community, donors and local self-government bodies, citizens and other CSOs by continuing to disseminate policy updates and the practice of sending out English-language information to key stakeholders. It continued to maintain its website, civic activist web portal and social media web page, to disseminate policy updates on instruments for oversight over authorities, CSO registration and reporting procedures, opportunities for public granting of CSOs is available.

Besides expert roundtables and participation in government working groups, UCIPR improved its ability to influence the public agenda. For this purpose, the project team participated in the ISAR/Yednannia Annual Forum of Organizational Development to present services provided to CSOs by the project, to promote the advocacy efforts lead by UCIPR and to disseminate information materials developed by the UCIPR team. During the Forum, the project team held legal quest on CSO operation during which participants learned about CSO legislation, including right to entrepreneurial activities, labor legislation, CSO reporting etc.

In addition, it was presented the monitoring of availability of information on CSO registration displayed at the websites of the Justice Departments. As a result of monitoring conducted by the project team, the infographic was developed (viewed by over 1500 people). In October 2018, the City Democracy Index 2018 was presented to the city mayors and civil society representatives in the Ukraine Crisis Media Center6, distributed among the national and local media, and presented in social media. In the course of promotion campaign, over 30 media outlets published news about the Index, including Obozrevatel, Ukrinform, Interfax, UNIAN, and local media7).

In addition, an information campaign was held for attracting CSO and public officials’ attention to the right of CSOs to conduct entrepreneurial activities and it included preparing expert opinions and their publications in media, holding media events and expert discussions. Together with media partner “Civic Space”, it was organized Prostir-talks media event to discuss social entrepreneurship development in Ukraine in the form of civil society organizations8.

6 http://uacrisis.org/ua/69286-urban-democracy-index 7 https://hm.oblast.online/news/hmelnytskyj-otrymav-3-mistse-v-ukrayini-za-indeksom-demokratychnosti/ 8 https://www.prostir.ua/2018/12/prostir-talks-sotsialne-pidpryjemnytstvo-kraschi-kejsy-vyklyky-ta-mozhlyvosti- dlya-ho/

15 Furthermore, UCIPR improved the use of social media, and this allowed to make them more interactive and engaging as well as to improve the highlighting project activities which were out of public attention. For instance, UCIPR launched the practice of publishing scan copies of official letters to public institutions and responses to them in the social media.

Finally, it was held the presentation of project achievements for the last 5 years and acknowledged public officials and civil society activists partnering with the project and contributing to civil society enabling environment. In particular, 3 members of parliament, 20 members of the Cabinet of Ministers and a number of city mayors and members of local councils were acknowledged.

V. PROGRESS AGAINST TARGETS Despite, M&E Indicators are reported annually, it is possible to define the most important achievements, reached by the project team for 6 months period, including the following: 1. Entering into force amendments to the Article 87 of the Budget Code of Ukraine allowing to take part in the competition for receiving public funding of CSOs of veterans and people with disabilities without all Ukrainian status. 2. Entering into force amendments to the Article 91 of the Budget Code envisaging funding of CSOs of veterans from the local budgets. 3. Adoption of the Explanatory Note of the Ministry of Finance No 1210-09-5/3214 of February 6, 2019 regarding the right of no-profit organizations to conduct entrepreneurial activities. 4. Providing consultations to CSOs regarding Report on use of the income and expenditures. 5. Launching of contest based public funding of veteran CSOs and ensuring transparent allocation of UAH 3.7 mln to CSOs in 2018. 6. Launched advocacy campaigns for improving local democracy (adoption of local acts for improving local democracy or amending territorial community charters) in Kryvyy Rih (Local acts on local initiatives and e-consultations), Mukachevo (Territorial Community Charter), Ternopil (Local act on participatory budget, Territorial Community Charter), Zhytomyr, Khmelnytskyy and Obukhiv (Territorial Community Charter). 7. Adopted Kropyvnytskyy Territorial Community Charter (January 31) which includes recommendations of the USAID “Citizens in Action” Project and model local acts on local initiatives, public hearings, public consultations, and townhall meetings. 8. Developed Model Act on E-Consultations (jointly with EGAP Project, East Europe Foundation) and provided support to Khmelnytskyy, Ternopil, Trostyanets, Drohobych, Zhytomyr regarding development and adoption of such act in the respective cities. 9. Held 2 one-day Schools of Local Democracy in Mariupol and Bila Tserkva. 10. Developed 12 information materials (it was planned to develop 10).

16 The webinar on procedures on public funding according to the Cabinet Decree No. 1049 was replaced by the face-to-face training, organized with OSCE Project Coordinator and ISAR/Yednannia due to the request from the veteran CSOs planning to participate in the contest.

VI. PERFORMANCE MONITORING, EVALUATION AND LEARNING During the 6 months period, performance monitoring, evaluation and learning activities were conducted. In particular, UCIPR studied the USAID assessment, conducted evaluation of trainings, held focus group to assess whether the UCIPR legislative proposals to reflect the needs of the civil society sector and organized online surveys. As a result of the USAID assessment, the online survey was launched and consultations with leading CSOs were held. Due to the evaluations of Local Democracy Schools, it was changed the agenda of the school and introduced case studies. The focus groups and online surveys helped to improve the provisions of the Draft Law No. 8387 on tax incentives for givers.

VII. LESSONS LEARNED

During the reporting period, UCIPR learned few lessons, including impact of political situation or prelection period on the adoption of CSO enabling legislation. Due to presidential election campaign, CSO legislation was not in the priority of the Members of Parliament and therefore, Draft Laws No. 7372 on improving CSO registration and No. 8237 on tax benefits for CSO givers were not considered. If the future it is better not to plan such activity but to replace with others.

For efficient implementation of the CSO enabling legislation, it is vitally important to work with local partners (CSOs and public institutors). For instance, cooperation with local CSOs and territorial justice departments helped to identify issues with CSO registration and granting of non-profit status and to resolve them.

During the introduction of the contest based public funding of veteran CSOs, UCIPR team learned that the biggest opponent of the contest were the veterans CSOs receiving funding without contest since independence and not providing real support to veterans.

In the area of improving local democracy, it was learned that the local democracy is improved only in those territorial communities where local authorities were opened to it (there was still low level of citizens’ engagement) and there was low level of understanding of the need to improve local democracy at the national level (much better understanding is at the local level). It proved by introduction of participatory budget in over 140 territorial communities in 3.5 years and e-consultations (introduced in over 10 territorial

17 communities) and denial to include progressive provisions for regulating local democracy into the Law on Local Self-Governance because such provisions would not be supported by MPs.

During Schools of Local Democracy, it was learned that such Schools would be more efficient if they were organized for representatives of civil society and public officials.

Finally, in the area of cooperation with media and promotion of information, it was learned that organizing of separate media events better engage top media and inform general population, but not civil society activists who use other media channels. To improve civil society activists’ informing, it was decided to use Civic Space.

VIII. ENVIRONMENTAL MONITORING The Environmental Mitigation and Monitoring Plan (EMMP) is not envisaged for this activity.

IX. PROGRESS ON LINKS TO OTHER ACTIVITIES Development of the high quality CSO legislation is impossible without partners, therefore, UCIPR tried to improve relationship with other USAID and donor activities. In particular, it continued its cooperation with the European Center for Not-for-Profit Law (ECNL) and has been implementing joint EU-funded project “Monitoring Progress Empowering Action” to monitor implementation of the quality of CSO legislation in Ukraine. It cooperated with the EGAP Project implemented by the East Europe Foundation to develop terms of Reference for software for launching online contest based public funding of CSOs and to develop draft local act on e-consultations at the local level, with the OSCE Project Coordinator to develop National Strategy for Social Entrepreneurship in Ukraine and with the International Organization for Migration to advocate against adoption of legal act on criteria for efficiency of CSO in the area of combating human trafficking which might restrict operation of CSOs (Opinion regarding this issue was developed for the Ministry of Social Policy).

X. PROGRESS ON LINKS TO HOST GOVERNMENT

During the reporting period, UCIPR closely cooperated with the Ukrainian Government, Parliament and local authorities. In particular, UCIPR worked with the Ministry of Justice as it’s Project Beneficiary, Ministry of Social Policy, Ministry of Finance and State Service for Veterans Affairs to introduce contest based public funding for CSOs of veterans and people with disabilities; the Ministry of Finance and State Fiscal Service for developing Explanatory Note regarding the right of CSOs to conduct entrepreneurial activities; the Secretariat of

18 Cabinet of Ministers of Ukraine to implement the National Strategy for Promoting Civil Society Development; the Ministry of Justice and State Agency on E-Governance to launch on-line registration of CSOs; the Ministry of Youth and Sport to introduce 20% of administrative expenses and 20% organizational development expenses for youth and children CSOs receiving funds from the State Budget; the State Fiscal Service, Ministry and Finance and Presidential Administration to introduce tax incentives for CSO givers (draft law No. 8237); the Ministry of Education to develop the Concept and Strategy for Civic Education Development; Secretariat of the Committee of VRU on State Building, Regional Policy and Local Self-Governance to develop proposals to the Draft Law on Local Self-Governance for improving local democracy; the Ministry of Regional Development, Construction and Housing to develop Model Territorial Community Charter; Members of Parliament, local councils members in Mariupol, Drohobych, Bila Tserkva, Kropyvnytskyy, Obukhiv, Kryvyy Rih, Zhytomyr, Ternopil etc.

XI. PROGRESS ON INCLUSIVE DEVELOPMENT Gender. During reporting period, UCIPR tried to engage equal number of women and men in its trainings and activities. Despite UCIPR tried to ensure gender balance during its trainings and other events, women dominated. It incorporated gender in all trainings to increase awareness of gender gaps in CSO legislation and facilitated women’s inclusion in formal decision-making processes at the local level through strengthening their skills in local democracy instruments. Moreover, after the adoption of the Territorial Community Charters or Local Acts for Improving Local Democracy, all community members (regardless of gender, age, political believes etc.) receive instruments for their access to decision making.

People with Disabilities. UCIPR assisted DPOs and CSOs engaged in disability issues, in particular, it included DPOs and CSOs in their networks and partnerships at the national and local levels, developed proposals for introduction of the contest based public funding of CSOs of people with disabilities to enlarge the number of CSOs receiving public funding and helped these organizations improve their capacities in preparing application for public funding through its training and webinars on contest procedures envisaged by the Cabinet Decree No. 1049.

Lesbian, Gay, Bisexual and Transgender Community. The project also assisted organizations focused on LGBT issues, along with other organizations, to support a legislative framework that protects and supports civil society. UCIPR engaged civil society organizations working to improve the legislative environment, including those that focus on LGBT issues, worked closely with other activities implemented under the Civic Oversight Project and invited LGBT organizations representatives to all events.

Finally, UCIPR worked for introducing 20% of administrative expenses for youth and children CSOs receiving funds from the state budget to improve their capacity and provided

19 consultations to the youth and children CSOs, CSOs of veterans regarding CSO establishment, reregistration and reporting.

XII. FINANCIAL INFORMATION (Required for Contracts; Optional for Other Award Types) The project expenditures made in accordance with the plan, without unexpected costs or changes. The accounting activity performed on a daily basis, in the database, including both - accounting and management accounting data. The payment vouchers created in the management accounting module of 1C Program and passed a three-stage authorization by the Executive Director, Finance Director and Chief of Party. The accounting system contains detailed data on financial transactions, personnel, donors, suppliers, tangible and intangible assets, inventory, bank accounts, receivables, and payables, revenues and expenses, foreign exchange transactions effect. The system allows generating financial reports and plan-fact analysis reports. The accounts reconciled on a monthly basis, closed on a quarterly basis.

Cash Flow Report and Financial Projections (Pipeline Burn-Rate)

In this section, please detail your financial projections. At a minimum, categories should include:

1. Obligations: USD 1 500 000.00

2. Actual expenditures through the current reporting period: USD 1 438 167.11

3. Pipeline projection: USD 6 301.89

XIII. SUB-AWARD DETAILS NA

XIV. ACTIVITY ADMINISTRATION

A. Constraints and Critical Issues During the implementation of the activity, no major challenges were identified. At the same time presidential elections negatively affected consideration and adoption of the CSO legislation and despite two draft laws (Draft laws No. 7372 and 8237) were included into parliamentary agenda, they were not considered by the parliament as not very important

20 one. In addition, authorities wanted to roll back the reforms adopted previously, in particular the area of introduction of the contest based public funding of veteran CSOs, there were attempts to return to non-competitive public funding of all veteran CSOs or part of it. Moreover, the attacks on activists refocused CSO efforts from activities to protection of activists.

B. Personnel

N/A

C. Contract, Award or Cooperative Agreement Modifications and Amendments

N/A

D. Status of Deliverables/Milestones All activities envisaged by the Implementation Plan for the 6 months period were implemented or in the process of implementation. In particular, for 6 months the following activities were implemented:

Activity Status Amendments to the Cabinet Decree No. 1049 on Procedures for Public Funding to Developed CSOs and adopted Amendments to the Cabinet Decree No. 156 on Pubic Funding of Veteran CSOs Developed and adopted Amendments to the Cabinet Decree No. 183 on Public Funding of CSOs of People Developed with Disability Local acts on local initiatives and e-consultations in Kryvyy Rih Adopted

Mukacheve Territorial Community Charter, which regulates such Adopted instruments of local democracy as local initiatives, e-petitions, public hearings, townhall meetings, public consultations, reporting of public officials and local self-government bodies

Local Act on Participatory Budget in Ternopil and Ternopil City Charter, which Adopted regulates such instruments of local democracy as local initiatives, e- petitions, public hearings, townhall meetings, public consultations, public expertise, reporting of public officials and local self-government bodies Zhytomyr City Charter regulating local initiatives, e-petitions, public hearings, Adopted townhall meetings, public consultations, public expertise, reporting of public officials and local self-government bodies

Amendments to the Khmelnytskyy City Charter developed according to the rating Adopted of the City Democracy Index (UCIPR)

21 Obukhiv City Charter regulating local initiatives, e-petitions, public hearings, Adopted townhall meetings, public consultations, public expertise, reporting of public officials and local self-government bodies Amendments to Kropyvnytskyy City Charter regulating local initiatives, public Adopted hearings, townhall meetings, public consultations Recommendations for improving local democracy developed under City Completed Democracy Index and provided to 24 cities Development of model local act in holding e-consultations jointly with East Completed European Foundation Providing consultations on introduction of e-consultations to city councils in Completed Khmelnytskyy, Ternopil, Drohobuch, Trostynets, Zhytomyr Model Territorial Community Charter Developed 2 Schools of Local Democracy Completed 8 information materials on CSO legislation Developed

E. Coordination and Partnerships All activities of the project were implemented in close collaboration with other Mission activities and projects, as appropriate, including those outside the democracy and governance sector portfolio. For instance, the Ukraine Civil Society Capacity Building Project supported UCIPR in sharing its knowledge and skills on CSO legislation (e.g., CSO taxation, reporting, funding, labor legislation, and social entrepreneurship). Therefore, UCIPR co- organized Annual Civil Society Development Forum, developed activities for implementation of National Strategy for Promoting Civil Society Development, conducted trainings for veteran CSOs on public funding procedures and supported IOM in advocating against restricting regulations for CSOs fighting human trafficking.

The coordination with the Enhance Non-Governmental Actors and Grassroots Engagements (ENGAGE Project) helped improve citizens’ engagement and coalition-building process at the local level. In particular, UCIPR supported the development of concepts for ENGAGE forums, shared own experience in the area of local democracy and presented Civil Society Activists Portal to ENGAGE partners, attracted ENGAGE expertise in the area of CSO sustainability, citizens’ engagement and Hungarian CSO legislation etc.

Joint efforts of UCIPR and Ukraine local governance programs (Policy for Ukraine Local Self- Governance (PULSE) and IREX helped increase citizen participation and engagement with local officials. In this regard, UCIPR supported city councils in improving city charters and procedures for local democracy. For this purpose, the City Democracy Index were presented among partners of the Association of Ukrainian Cities and the Model City Charter was developed and recommended to the Association of Ukrainian Cities.

The project also worked in close collaboration with non-US government donors, including the International Renaissance Foundation, UNDP, Swedish, the EU Delegation and EU projects implemented in Ukraine, including EU Together Project, EGAP (East Europe Foundation), etc.

22 In particular, UCIPR jointly with EGAP Project improved citizens access to the decision making at the local level through e-consultations.

Finally, the project worked closely with think tanks of not-for-profit law, including International Center for Not-for-Profit Law (ICNL), European Center for Not-for-Profit Law (ECNL), CSOs of Eastern Partnership Countries to improve the quality of Ukrainian civil society legislation based on best international practices.

F. Geographic Information

Most of the UCIPR activities are nationwide (improving CSO taxation, improving CSO registration, ensuring entrepreneurial activities for non-profit CSOs). At the same time, some activities were implemented at the local level, including those relating improving citizens participating in decision making at the local level – Lviv, Kyiv, Khmelnytskyy, Ivano- Frankivsk, Bila Tserkva, Kryvyy Rih, Kramatorsk, Mariupol, Chernivtsi, Chernihiv, Mukachevo, Ternopil, Zhytomyr, Obukhiv, Kropyvnytskyy, Drohobych, Trostynaets.

XV. ATTACHMENTS

A. List of Deliverables

Consultations

250 legal consultations regarding CSO registration, taxation, reporting and local democracy were provided.

Analytical documents and legal acts 1. Ministry of Finance Explanatory Note No. 11210-09-5/3214 of February 06, 2019 regarding CSO right to conduct entrepreneurial activities - http://sfs.gov.ua/zakonodavstvo/podatkove-zakonodavstvo/listi- dps/73251.html?fbclid=IwAR3t8JaYrfE8Rwl2yxAzqnHKKIldQlpH12uk1Vb8_laTMD BgX5F20tEeRt4 2. Amendments to the Cabinet Decree No. 440 of July 13, 2016 - http://sfs.gov.ua/diyalnist-/regulyatorna-politika-/regulyatorna- politika/arhiv/2018-rik/73037.html 3. Recommendations Territorial Justice Departments for improving access to public information in the area CSO registration - https://drive.google.com/drive/folders/1t8-MFYEryKHd8AaKn9JjnfOB8SH4Jb18 4. Draft Law No. 7372 of December 07, 2017 - http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=63100

23 5. Analytical Paper for International Organization for Migration regarding CSO reporting. 6. Expert Opinion to Constitutional Court regarding unconstitutionality of asset declarations for activists 7. Draft Law No. 8237 on Amendments to the Tax Code for Facilitating the Charity Development - http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=63800. 8. Proposals to the Cabinet Decree No. 183 on public funding of CSOs of people with disabilities (not adopted). 9. Proposals to the Cabinet of Ministers of Ukraine Decree No. 156 “On specific issues related to granting the financial support to veteran associations”. 10. Draft local act on e-consultation with citizens 11. Draft Law on Amendments to the Law on Local Self-Governance in Ukraine 12. Draft local act on local initiatives in Mykholaiv 13. Draft local act on local initiatives in Kryvyy Rih 14. Draft Territorial Community Charter of Mukachevo 15. Draft Territorial Community Charter of Obukhiv 16. Draft Territorial Community Charter of Ternopil 17. Draft Territorial Community Charter of Zhytomyr

Public Events 1. Conference “Transparency of CSO Public Funding”. February 7, 2019 (Kyiv). 2. Focus Group “Interaction between State and Civil Society”, March 6, 2019 (Kyiv). 3. Focus Group “Interaction between State and Civil Society”, March 27, 2019 (Kyiv). 4. Focus Group "CSO Right to Peaceful Assembly and Freedom of Expression”, March 27, 2019 (Kyiv). 5. Presentation “Citizens in Action: Achievements and Prospective of Civil Society Development in Ukraine after the Revolution of Dignity”, February 21, 2019 (Kyiv). 6. Round Table “Online Contest Based Public Funding of CSOs: How it will be Ensured”, March 15, 2019 (Kyiv). 7. School of Local Democracy in Bila Tserkva (November 17, 2018). 8. School of Local Democracy in Mariupol (October 6, 2018). 9. Working meeting on social entrepreneurship protection, October 3, 2019 (Kyiv).

B. Public Outreach Documents

1. Article on Social Entrepreneurship - https://www.prostir.ua/?blogs=minfin-i- hromadski-orhanizatsiji-bytva-za-sotsialne-pidpryjemnytstvo (3,256 views) 2. Article on the CSO Right to Conduct Entrepreneurial Activities - https://www.prostir.ua/?blogs=minfin-pidtverdyv-pravo-neprybutkovyh- orhanizatsij-na-pidpryjemnytsku-diyalnist (20,314 views)

24 3. Article on Contest Based Public Funding of CSOs - https://www.prostir.ua/?blogs=minfin-pidtverdyv-pravo-neprybutkovyh- orhanizatsij-na-pidpryjemnytsku-diyalnist (1,550 views) 4. Article on Potential Repeal of Contest Based Public Funding of Veteran CSOs - http://ua1.com.ua/blog/aleksandr-ravchev/kabmin-mozhe-znovu-pochati- finansuvati-bezsmertni-polki-veteraniv-kdb-47677.html (2340 views) 5. Article on CSO Registration - https://www.prostir.ua/?blogs=5-nezruchnyh-pytan- do-minyustu-pro-onlajn-rejestratsiyu-hromadskyh-orhanizatsij 6. Web portal for civil society activists - http://dovidnyk.org.ua/ 7. Booklet “How to hold public hearings in Mariupol” - https://drive.google.com/file/d/1rpvxIFK57CK-L0iFr19bvDforqky2Hdg/view 8. Booklet “How to receive 4% tax deduction for companies providing support to CSOs” 9. Infographic “Algorithm for organizing public hearings in Mariupol” - http://dovidnyk.org.ua/95-vplyv-na-vladu-mariupol/473-yak-provesty-hromadski- slukhannia-v-mariupoli. 10. Booklet “How to submit draft decision to local council under procedure of local initiatives in Mariupol” - https://drive.google.com/file/d/1MHIApx3KdXKaWdxuzME9YK91TEVYTf8p/view. 11. Infographic “Algorithm for submitting and considering local initiative in Mariupol” – http://dovidnyk.org.ua/95-vplyv-na-vladu-mariupol/97-yak-podaty-mistsevu- initsiatyvu-v-mariupoli. 12. Booklet “How to hold public hearings in Bila Tserkva” - https://drive.google.com/file/d/1iNsmjzxJcD5Cay8eyIhW3m2dGRo6Wlf8/view. 13. Infographic “Algorithm of organizing public hearings in Bila Tserkva” - http://dovidnyk.org.ua/146-vplyv-na-vladu-bila-tserkva/543-yak-provesty- hromadski-slukhannia-v-bilii-tserkvi 14. Booklet “How to submit draft decision to city council under local initiative in Bila Tserkva” - https://drive.google.com/file/d/1ArhPHuCRFfY8yzXoBKbV2Jrqka8TPcse/view. 15. Infographic “Algorithm for submitting and considering of local initiative in Bila Tserkva” - http://dovidnyk.org.ua/146-vplyv-na-vladu-bila-tserkva/541-yak- podaty-mistsevu-initsiatyvu-v-bilii-tserkvi. 16. Infographic “Algorithm for organizing public hearings in Kropyvnytskyy” 17. Infographic “Algorithm for submitting and considering local initiative in Kropyvnytskyy” 18. Manual on CSO Registration and Operation.

C. Performance Data Table Reported annually

D. Sub-Awards Table (if applicable) NA

25

E. Future Activities Table

Date Location Activity

April – July 2019 Kyiv Run advocacy campaign for introduction of on- line registration of civil society and charity organizations April – July 2019 Kyiv Run advocacy camping for positive changes into CSO enabling legislation. The UCIPR team will continue to advocate for the adoption of the Draft Law No. 7372, which is aimed at simplification of CSO registration, improving CSO symbols and identity protection etc. April – July 2019 Kyiv UCIPR team will continue to advocate against restrictive CSO legislation, in particular Draft Law No. Draft Law No. 8501 on Additional CSO Reporting for CSOs receiving funding from foreign countries and foreign non-governmental organizations. April – July 2019 Kyiv UCIPR team will monitor the legislative proposals registered at the parliament and published at the Cabinet of Ministers website. April – July 2019 Kyiv Run advocacy campaigns for favorable CSO tax legislation and CSO financial viability. The project team will continue to run advocacy campaign for adopting changes to the Tax Code of Ukraine (Draft Law No. 8237). April – July 2019 Kyiv Ensure implementation of the National Strategy for Promoting Civil Society Development. The project experts will continue to participate in development of the Action Plan 2018. April – July 2019 Kyiv Run advocacy campaign for introducing contest based public funding of CSOs of People with Disabilities and adoption of the drafted proposals to the Cabinet Decree No. 183 on public granting to CSOs of people with disabilities. April – July 2019 Kyiv Run advocacy campaign for ensuring better funding of youth and children CSO. In this regard, UCIPR team will develop amendments to the Cabinet Decree No. 116 and Order of the Ministry of Youth and Sport No. 808 to provide a right to

26 youth CSOs receiving funds funding from the Ministry of Youth and Sport based on the contest to envisage 20% of administrative expenses and 20% of expenses for institutional development. It will allow youth CSOs not only opportunity to develop a project but also to build CSO capacity. April 1-5 Kyiv City Discussion of the draft local act on public hearings Council, in Kyiv Permanent Council Commission April 8-13 Kyiv, Ministry Presentation of developed Methodological of Regional recommendations for drafting Territorial Development Community Charter April 8-13 Ternopil Adoption of the Ternopil City Charter by the Ternopil City Council

April – July 2019 Kyiv Administer call center for civic activists for facilitating their activity and providing support on legal issues. UCIPR will continue to administer hotline to assist CSOs, charitable organizations and volunteers in application of the Laws on Public Associations, on Charitable Foundations, Volunteering Activities, new tax legislation for non-profits and other issues related to CSO operation. April – July 2019 Kyiv Provide technical support to accounting software “1C”. UCIPR will continue to improve financial system of UCIPR, in particular, finalize its work on the system for producing financial statements on a quarterly basis for overall assessment of financial position of the Organization and for ensuring control over organization expenditures and income. April – July 2019 Kyiv Cooperating with international think tanks. Ensuring the quality of UCIPR expertise, UCIPR will continue its collaboration with the internationally recognized think tanks, such as the International Center for Not-for-Profit Law (ICNL), European Center for Not-for-Profit Law (ECNL), Ukrainian Think Tanks Office in Brussels etc. to improve the quality of analytical materials developed by UCIPR.

27 April – July 2019 Kyiv Improve UCIPR outreach strategic communications. UCIPR will continue to produce monthly policy updates in English and Ukrainian and continue to manage and update civic activist web portal, which contains information about CSO registration, taxation and operation as well as information about local democracy tools.

28