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Introduction.
As the charitable sector in Ukraine is actively developing, the issue of transparency of organizations’ activities is of particular importance. Hundreds of foundations raise funds for humanitarian, medical, and social projects every day, and the level of public trust depends on how clearly and understandably they report on the use of these resources. Foundation reporting is not only a formality required by law, but also a tool for open dialogue between the organization and its donors.
It is important for charitable organizations not only to fulfill the requirement to submit reports, but also to make them understandable, accessible and informative for a wide audience. In this context, financial transparency means the willingness to explain every hryvnia spent, to document it and to show the real results of work. When charitable reporting is submitted on time and without concealing details, it becomes a powerful argument for those who decide to support the foundation, and helps to attract new partners and donors.
In this article, we will look at what charitable foundation reporting looks like, why it is a key element of effective work, and what you should pay attention to to ensure that your fees and expenses are transparent.
What is a charitable foundation’s reporting?
Charitable foundation reporting is a systematic set of data that reflects the sources of funds, the ways they are used, and the results of implemented projects. It is an official tool that allows you to assess the amount of resources an organization has and how these resources are spent. Unlike internal documentation, which is intended for control within the organization, public charity reporting serves to demonstrate openness to society, donors, and government agencies.
In the Ukrainian context, the foundation’s reporting is governed by the law, including the Law of Ukraine "On Charitable Activities and Charitable Organizations," the Tax Code, and the requirements for non-profit organizations. The legislation clearly specifies what information must be submitted, within what timeframe, and in what form. However, legal requirements are only the basis. To ensure true financial transparency, foundations often go beyond the minimum obligations by adding detailed explanations, visualizations, photos, and videos to their reports.
There are several main types of charitable foundation reporting. First of all, it is financial reporting, which contains information about all income and expenses in monetary terms. It includes data on donations from individuals and legal entities, grant funding, and international assistance. Expenditures are listed in separate blocks: purchase of equipment, medicines, payment for services, organization of events. There is also non-financial reporting: a description of the programs implemented, the amount of assistance provided, the number of people reached, and the geography of activities. It is the combination of financial and non-financial indicators that allows us to form a holistic view of the organization’s work.
An important element is the frequency of reporting. For government agencies, these are usually annual documents, but for the public and donors, many foundations publish quarterly or even monthly reports. This practice helps to maintain constant contact with the audience and shows that the organization does not avoid responsibility for each stage of its activities.
Modern technologies make it possible to post the foundation’s reports in the public domain on the official website or in special online databases. This makes the process of familiarizing oneself with the data convenient and fast: the user can download the document, view it in a browser, or filter the information by the required parameters. In addition, interactive formats such as infographics, cost maps, and video presentations help make charity reporting more visual and understandable for a wide range of people, even those who have no experience in analyzing accounting documents.
Thus, charity reporting is not just a formal requirement, but a tool for building trust and reputation. Its quality and accessibility directly affect whether donors will continue to support the organization’s projects and whether the foundation will be able to expand its activities by attracting new resources.
Why do we need financial transparency?
Financial transparency is one of the key indicators of the reliability and integrity of any charitable foundation. It means that an organization is ready to openly demonstrate where its funds come from, how they are distributed, and what they are spent on. For the charitable sector, this is not only a legal requirement, but also an important tool for building trust, without which it is impossible to maintain stable operations and attract new donors.
Transparency starts with honest accounting and timely publication of data. When a foundation provides a complete picture of its income and expenses, it allows everyone to make sure that donations are actually used for their intended purpose. For donors, such openness is proof that their support is producing real results. For partners and international organizations, financial transparency is a criterion by which they assess a foundation’s readiness for high-level cooperation.
In the charitable sector , transparency directly affects the amount of funding. Organizations that report regularly and in detail usually have a much higher level of support than those that limit themselves to minimal formal reports. Donors are more likely to repeatedly support those initiatives that provide a clear explanation of each expenditure and the results achieved. This applies to both large philanthropists and individuals who donate even small amounts but want to be sure that their contribution will not disappear without a trace.
Financial transparency also serves to protect reputation. Openness in reporting helps to avoid suspicions of abuse, which is especially important in an environment where society closely monitors the activities of charitable organizations. In case of questions from the media or regulatory authorities, the availability of complete and timely reports allows for quick and reasonable answers. This not only relieves tension but also demonstrates that the foundation operates honestly and professionally.
It should be borne in mind that financial transparency is not just numbers in tables, but also an explanatory context. Even the most detailed list of expenses will not be understandable if the report does not explain why these expenses were necessary and what results they brought. That is why high-quality charitable reporting combines dry financial data with descriptions of implemented projects, photos, comments, and examples of assistance stories.
International practice proves that transparency is the basis for the stability and development of organizations. Foundations that openly publish their financial and activity reports are more likely to receive grants, enter into long-term partnership agreements, and attract support from abroad. In Ukraine, this trend is also becoming more and more noticeable: people are ready to support projects that not only declare good intentions but also prove their effectiveness through open reporting.
Thus, financial transparency is not an additional bonus for reputation, but a strategically important element of a charitable organization’s activities. It ensures a constant flow of trust, strengthens relationships with donors and partners, and creates conditions for the long-term and successful functioning of the foundation.
What types of reporting do charitable foundations submit?
The activities of any charitable foundation are accompanied by the preparation of several types of reports, each of which has its own purpose, target audience, and requirements for preparation. They can be divided into official, internal and public, although in reality these formats often overlap. The main objective of any of them is to ensure financial transparency and provide evidence of the efficiency of resource use.
The first and most formalized type is official reporting, which the foundation submits to government agencies. In Ukraine, nonprofit organizations are required to submit annual financial statements to the tax service, which include a balance sheet, income statement, and other accounting forms required by accounting standards. These documents allow the state to control whether the foundation complies with the law and whether its activities are in line with the status of a non-profit organization. Late or incomplete submission of such reports may result in fines or even loss of benefits.
The second type is reports for donors and partners. Their structure often depends on the requirements of the party providing the funding. For example, international donors usually require not only financial tables, but also a detailed description of the work performed, proof in the form of photographs, acceptance certificates, or video materials. Such reports can be quarterly, semi-annual, or interim, depending on the duration of the project. Their purpose is to show that the funds received were used for the purposes agreed upon at the beginning of the cooperation.
The third important format is public charitable reporting, which the foundation places in the public domain. These can be monthly or quarterly reviews of income and expenditures, annual summary publications, and separate reports for each campaign or project. In modern conditions, such materials are most often published on the official websites of organizations, on social media, or through email newsletters. Public reporting is aimed at a wide audience and should be understandable even for those who do not know accounting terminology.
A separate group includes thematic reports prepared for specific initiatives or events. For example, if a foundation has organized a large fundraiser for medical equipment, it can issue a special report detailing the fundraising process, the amount of contributions, and the stages of purchasing and transferring the equipment. Such reports are especially effective in demonstrating results in a short time and maintaining interest in similar projects in the future.
It is also worth mentioning internal reporting, which is not published but helps the foundation monitor its own work. These can be weekly or monthly internal departmental reports, analytical reports, and financial forecasts. Although they are not intended for public disclosure, they help the foundation’s management to identify problems in time, plan resources, and improve efficiency.
Thus, the reporting system of a charitable foundation is a set of documents of various formats, each of which performs its own function. Together, they create a holistic picture of the organization’s activities and serve as the basis for trust from society, partners, and the state. The more thoroughly and timely a foundation prepares each type of report, the higher its reputation and support will be.
Mandatory elements of quality reporting
High-quality reporting by a charitable foundation is not just a set of numbers, but a logically structured document that gives a complete picture of the organization’s activities. It should be understandable for different groups of readers: from professional accountants and regulatory authorities to ordinary donors who want to know how their contributions are used. In order to ensure financial transparency, reports must contain several key elements, without which they lose their informative value and credibility.
The first mandatory block is a detailed description of revenues. It indicates all sources of funds received: charitable contributions from individuals, donations from companies, grants, and in-kind humanitarian aid. Each item should be accompanied by the amount, date of receipt and, if possible, identification of the source (if it does not contradict the terms of confidentiality). This approach makes it possible to trace the path of funds from the moment of receipt to their use.
The second important section is expenditures. Here it is necessary to show what exactly the foundation spent the resources received. These may include purchases of goods, payment for services, transportation costs, rent of premises, and organization of events. The most transparent charitable reporting is not limited to general statements, but discloses expenses in the context of specific goods or works. For example, instead of the phrase "medical equipment purchased," it should be stated "5 ventilators of brand X were purchased for the amount of Y hryvnias."
The third element is data visualization. Infographics, charts, tables, and diagrams help to perceive information faster and make the report more understandable for a wider audience. Visuals are especially important in large reports, where the amount of textual information can exceed dozens of pages. Photo and video evidence should be mentioned separately: they not only illustrate the work done, but also evoke an emotional response from donors, as they demonstrate the real result of the assistance.
The fourth component is the explanatory part. Numbers alone do not reveal the full picture. It is necessary to explain why certain expenditures were made, what tasks they solved, and what results were achieved. This section can include stories of specific people or communities that have received assistance, as this emphasizes the importance of the foundation’s work for society.
The fifth important element is the chronological structure of the report. It is good when the document allows you to see the dynamics of income and expenses over time: for example, monthly or quarterly summaries. This allows you to track how the foundation’s activity changes throughout the year and whether its financial flows are balanced.
The sixth aspect is the accessibility and clarity of the language. Even if accounting accuracy is maintained, the report should be written in such a way that its content is understandable not only to specialists but also to a wide audience. Simplicity of presentation combined with completeness of information is what builds trust in the fund’s reporting.
Thus, the mandatory elements of high-quality reporting are detailed income and expenses, data visualization, explanatory notes, clear chronology, and accessibility of the presentation. When all of these components are present, the document becomes an effective tool for financial transparency and reliable proof that the charitable organization operates openly and efficiently.
How to check the transparency of fees and expenses
Checking the transparency of a charitable foundation’s activities is a key step for those who want to be sure that their donations are used properly. Even the best-formatted charity reports will have no weight if they cannot be verified or if they are questionable. There are several proven ways to help a donor or partner assess the level of financial transparency of an organization, to understand how honestly it reports on the funds it has raised and spent.
The first and most obvious step is to read public reports on the foundation’s official website or social media pages. Reliable organizations publish reports regularly and in an easy-to-read format. These can be monthly summaries or detailed annual summaries with explanations. If the information is rarely updated or not available at all, this is a reason to wonder why the foundation does not share the results of its activities.
The second method is to check official state registers. In Ukraine, there are open databases where you can find information about the organization’s registration, its non-profit status, and reports submitted to the tax service. In particular, you can use the resources of the Ministry of Justice, the State Tax Service, and the open data system data.gov.ua. If the foundation does submit official reports, these registers should contain information about its activities.
The third tool is comparing data from several sources. For example, a foundation may report on the purchase of certain equipment, and this information can be verified through media news, official announcements from suppliers, or even photo and video reports of the aid transfer. The more independent confirmation you can find, the higher the probability that the expenditures actually occurred exactly as stated in the report.
The fourth way is to analyze the quality of the information provided. Transparent foundation reports always clearly indicate dates, amounts, specific recipients, or target projects. If the data is presented in a generalized way - for example, only the total amount of expenses without details - this may indicate an unwillingness to disclose information or a low reporting culture.
The fifth aspect of the verification is to contact the foundation itself with a request for clarification. A reliable organization will not refuse to provide additional information or explain why certain expenses were made. If you receive an evasive or aggressive response to a request, it is a signal that there may be problems with transparency.
The sixth criterion is the regularity of communication with the audience. Foundations that care about trust do not limit themselves to dry figures in their reports, but constantly inform about their work: they publish photos from the places where aid is delivered, tell the stories of recipients, and show the process of project implementation. This openness creates the effect of presence and demonstrates that the organization does not hide its real impact.
It is worth noting that transparency checks are not just a matter for large donors or grantors. Everyone who makes a donation has the right to know how their money was used. This approach creates a culture of responsible donation and motivates foundations to improve the quality of their charitable reporting.
Thus, to ensure the integrity of an organization, it is worth combining several methods: checking public reports, comparing them with official data, seeking independent confirmation, and observing how the foundation communicates with its audience. A comprehensive approach allows you to form an objective picture and make sure that the funds are spent for the stated purposes and that the foundation’s reporting is truly transparent.
Common mistakes and risks in reporting
Even foundations that have good intentions and strive to maintain financial transparency can make mistakes in preparing reports. Some of them are technical and easy to correct, while others can have a significant impact on the organization’s reputation and the level of trust from donors. Understanding these risks helps foundations avoid problems and improve the quality of their charitable reporting.
One of the most common mistakes is overgeneralization of data. When the report shows only the total amount of expenses for a certain area without detail, it creates the impression of non-transparency. For example, instead of the phrase "purchase of medical supplies - UAH 500 thousand", it is better to provide a list of goods, their quantity, cost and suppliers. Generalization may be convenient for preparing a report, but it reduces its informative value.
The second common problem is the delay in publishing reports. When a foundation publishes information several months or even years after the project is completed, it makes fact-checking much more difficult and reduces the effect of communication. Timeliness is one of the key criteria for trust, and delayed reporting always raises suspicions.
The third mistake is the lack of supporting materials. Even detailed figures in the financial report require visual or documentary evidence: photos from the place of aid transfer, copies of acceptance certificates, scans of invoices. The absence of such evidence is often interpreted as a sign of non-transparency or lack of attention to communication with donors.
The fourth risk is excessive reporting complexity. Too complicated accounting terms, a large number of technical abbreviations, or cumbersome tables without explanations make the report incomprehensible to ordinary readers. This reduces the effectiveness of the publication, as donors may simply not understand where their money has gone.
The fifth point is the discrepancy between the data stated in the reports and information from other sources. This can happen due to errors in internal accounting, improper communication between departments, or deliberate manipulation. In any case, such a discrepancy damages the fund’s credibility.
Another risk is ignoring non-financial indicators. Charitable reporting should contain not only numbers but also a description of the results of work, the amount of assistance, and the impact on the community or individual groups. If this is not the case, the report looks incomplete, even if the financial data is presented flawlessly.
Thus, avoiding these common mistakes is not only a matter of technical literacy, but also a strategic task that directly affects the foundation’s reputation. Clear, timely, factual, and understandable reporting is the key to stable support and development of the organization.
How the International Unity Movement Foundation implements the principles of openness
From the very first days of its activity, theInternational Unity Movement Foundation has relied on financial transparency and accountability to society. For the foundation’s team, transparency is not just a formal requirement, but a daily practice that determines all internal processes and external communication. Each donor, partner, or volunteer can receive information about how the collected resources are used, what projects they are directed to, and what results have already been achieved without additional requests.
The foundation’s public charitable reporting is updated regularly. Both short reports and detailed summaries with a detailed structure of income and expenses can be found on the organization’s official website and social media. The reports are accompanied by photos and videos confirming the transfer of aid, as well as stories of those who received it. This format not only informs, but also creates a sense of personal involvement of each donor in the common cause.
The internal accounting system is designed in such a way that each transaction has a clear digital trace - from the moment of receipt of funds to confirmation of their use. The foundation’s management monitors the compliance of all expenses with the approved project budgets and ensures double control of financial transactions. This helps to avoid mistakes, reduce risks, and maintain trust.
Communication with donors is another important element of openness. " UNITY INTERNATIONAL MOVEMENT promptly responds to inquiries, provides additional explanations for certain expenses and is open to suggestions from the public. Thus, the foundation’s reporting is not a dry document, but a dialog with people who support its mission.
Thanks to this approach, the organization has built a reputation as a reliable partner that can be trusted with significant resources. This allows the foundation not only to develop steadily but also to scale projects, knowing that donors and partners are confident in the transparency and efficiency of using every donated hryvnia.
Conclusion.
Foundation reporting is more than a formality or a legal obligation. It is the basis of mutual trust between the organization and those who support its activities. High-quality charity reporting combines accurate financial data, a clear structure, supporting materials, and explanations that give a complete picture of the results of the work. It helps donors to see the real impact of their contributions, and helps foundations to strengthen their reputation and attract new partners.
Transparency in financial and non-financial indicators creates an atmosphere of responsibility and honesty. For charitable organizations, including the UNITY INTERNATIONAL MOVEMENT, this is a strategic tool that allows them to build long-term relationships with the public, ensure stability of work and expand the scope of assistance.
In today’s environment, only those foundations should be supported that openly share information about their activities, publish regular reports, and are ready to answer questions. This approach ensures that every donated hryvnia is used to achieve the stated goals, and financial transparency remains the main criterion for effective and honest charitable activities.
