Knowledge Base of a Professional Philanthropist

5 Steps to Creating a Charitable Foundation

A simple guide for those who want to transition from chaotic fundraising to systematic charitable activities.

Creating a charitable foundation is not as difficult as it seems. By moving step-by-step, you can quickly establish a clear and transparent system of work and gain the trust of donors and society. Below are the basic steps you should start with.

1. Familiarize Yourself with Legislation

Start with the Law of Ukraine "On Charitable Activity and Charitable Organizations."

This will help you understand how charitable organizations are created; how they function; what rights and obligations they have; what types of activities are possible; basic legal terms and statuses; and rules of state regulation.

A basic understanding of the legislation will help avoid mistakes from the start.

2. Form the Basis of the Future Foundation

Before registration, formulate answers to key questions:

• What is our goal?

• What is the foundation's mission?

• What areas of activity are important to us now and in the 1–5 year perspective?

• Who are our potential patrons and partners?

• What name do we want to choose?

These answers will help to:

• prepare the Statute;

• formulate a development strategy;

• choose the correct NACE codes (KVEDs);

• determine the scope of activity;

• understand what team you need.

3. Choose a Strong Foundation Name

The name is part of your reputation and communication.

It is important that it is short, understandable, easy to remember, meaningful, and appropriate for both Ukrainian and international audiences.

Avoid names with hints of weapons, explosives, or controversial topics (e.g., "Bayraktar," "Shell," "Bullet"). Some international partners or donors may perceive this ambiguously.

Before the final choice: check if the name is already registered; ensure that the name corresponds to the foundation's mission.

The name is a necessary element for the organization's registration.

4. Plan Communication and Social Media

Even before the launch, you should prepare a basic communication strategy.

Consider:

• who you will address;

• what channels to use for communication;

• how often to publish information;

• what topics to cover;

• what to emphasize.

Register social media pages in advance—this will help start building an audience even before the activity begins.

Draft your first communication plan: for a month, quarter, or year.

Systematic communication = greater trust and more effective fundraising.

5. Choose Fundraising Tools and Open Accounts

Before launching, study:

• how other foundations receive funding and organize fundraising;

• which banks provide tools for charitable giving;

• which services and platforms are convenient for donations and accepting payments.

Consult with the bank in advance—online or at a branch—to learn about accounts for fundraising and payment instruments.

After the foundation is registered:

• open an account;

• connect fundraising and payment acceptance tools;

• set up transparent financial reporting—this is not a formality, but a tool of trust.

This material was created within the "Architecture of Trust" project, implemented by PrivatBank and the Center for Social Change and Behavioral Economics.