International Renaissance Foundation reaches out to others working in Ukraine (11/05/00)

International Renaissance Foundation reaches out to others working in Ukraine

by Irene Jarosewich

PARSIPPANY, N.J. - For more than 10 years the International Renaissance Foundation (IRF) has supported initiatives that encourage Ukraine's development, after decades of Communist totalitarianism, into an open and democratic society. The Kyiv-based foundation, part of the international Soros Foundation Network that operates in more than 30 countries, has given grants to hundreds of Ukrainian non-governmental organizations, publishing ventures, artists' organizations, educational institutions and community groups.

The IRF has invested more than $55 million in Ukraine to promote institutions and principles essential to a democratic society such as a free press, public debate and association, protection of the rights of individuals, civic responsibility and religious and ethnic tolerance.

IRF Executive Director Yevhen Bystrytsky was in the United States in October to meet with representatives from other foundations and organizations that also are working for change in Ukraine. On October 18, at a meeting organized by Bozhena Olshaniwsky of Americans for Human Rights in Ukraine (AHRU) at the Corporate Headquarters of the Ukrainian National Association, UNA President Ulana Diachuk introduced Mr. Bystrytsky to more than 20 representatives of Ukrainian American and American organizations, including members of the Ukrainian National Women's League of America, Children of Chornobyl Relief Fund, AHRU, Ukrainian American Professionals and Businesspersons Association of New York and New Jersey, Coordinating Committee to Aid Ukraine, Rukh Fund for the Democratization of Ukraine, Sabre-Svitlo, 20th Century Human Rights Fund, the Sabre Foundation and the UNA.

Noting in his introduction that many organizations from the diaspora have undertaken projects in Ukraine, Mr. Bystrytsky added that he had asked to meet with organization representatives since "many times our paths have crossed and we are aware of each other's efforts [and that] ... after 10 years, maybe it's a good time to come together to make an assessment of what has been done and set goals for the next 10 years."

After providing an overview of the numerous projects that the IRF has funded, Mr. Bystrytsky noted that the strength of the IRF is that the foundation's grant review experts are residents of Ukraine who are familiar with problems in Ukraine and collectively bring a broad background of knowledge and experience to the process of project evaluation. He also noted that another factor in the foundation's success is that "we've managed to avoid corruption and our outside experts manage our money to the penny."

Returning to the 10-year analysis, Mr. Bystrytsky commented that "it is not necessary that it be comprehensive, rather that it be an overview with a focus on the future." In order to aid with such an assessment, he stated that the IRF plans to finance and develop a website that will include information about activities that have been and are being undertaken by other foundations in order to provide a basis for comparison. The IRF will develop a short questionnaire that foundation representatives can complete on-line and then add their project information to the on-line database.

During the subsequent discussion Mr. Bystrytsky suggested some goals for the future, among them to change Ukraine's law on non-profit organizations, an idea supported by many of those attending the meeting.

Ukraine's law on non-profits offers no incentive for charitable contributions; in fact, it penalizes the donor and the recipient organization. For example, a publisher wanting to donate books is still required to pay a 15 percent value-added tax (VAT) on the donation, even though there is no sale. Organizations pay a 25 percent VAT on their publications even if they are distributed for free.

Olha Isaievych of Sabre-Svitlo, one of Ukraine's leading disseminators of free reference books and textbooks, stated: "It's absurd. Non-profits are treated as businesses. ... We pay taxes even though we have no profits. ... And there is an internal contradiction. The government supposedly welcomes the development of civic and non-profit organizations, yet overwhelms them with administrative and tax burdens."

Mr. Bystrytsky also noted that Ukraine's current laws do not offer any reduction in taxes as an incentive for charitable giving. He added that among the other factors that play a role in creating an environment in which charitable giving is not prevalent is that people are afraid to let others know that they have money and that those who do have money use it to gain political advantage, since, in present-day Ukraine, political power equals wealth.

Noting that George Soros, the businessman who funds the Soros Foundation Network, has promised to fund IRF projects until 2010, Mr. Bystrytsky ended his presentation stating that for Ukraine and her not-so-new independence, "the romantic period has ended and the time has come for hard work, very hard work, time to become a normal country."

To receive information about the IRF's database on foundations in Ukraine or for more information about the IRF, Mr. Bystrytsky can be reached via e-mail: [email protected].

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