Civil society in Ukraine plays a vital role in driving social change. According to the State Statistics Service, by early 2023, the country had nearly 100,000 registered civil society organisations (CSOs). Many are actively involved in supporting both the military and the civilian population. However, they face serious financial challenges. On the one hand, new partners and donors have enabled organisations to scale up their projects. On the other, the war and economic crisis have narrowed available resources.
Experts note that the instability of donor support forces many CSOs to rely on private contributions and self-generated income, which especially limits the capacity of smaller organisations. Research also indicates that fundraising remains one of the key obstacles for NGOs, with most respondents identifying lack of funding as their main internal challenge and insufficient external support as a significant threat to sustainability.
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Financial challenges facing civil society organisations
The war has made traditional fundraising much more difficult. Over 70% of CSO representatives report that raising funds for civilian projects has become harder as donors increasingly prioritise military aid. In this environment, competition for private donations intensifies. With household savings depleted and incomes falling, even large charitable foundations are seeing a decline in both the number and size of contributions. At the same time, the number of actors engaged in fundraising has grown, making it harder for CSOs to secure funding without competing with one another.
Another issue is uncertainty and bureaucracy within donor frameworks. According to reports by ISAR Ednannia, Ukrainian CSOs often face a mismatch between donor priorities and the actual needs of local communities. While some organisations experienced increased grant support in the first year of the full-scale invasion, many others saw fundraising effectiveness fall. Legislative changes further complicate funding: updated tax and reporting rules often fail to reflect the realities of the non-profit sector. This leads to difficulties in complying with reporting standards and can undermine financial transparency.
Human resources are another concern. War-related displacement and mobilisation have resulted in the loss of qualified staff. Some have left the country, while others have moved to work in the public or defence sectors. In many CSOs, only the accountant receives a stable salary, with the rest of the team working on a project basis. This leads to high staff turnover and a lack of experience, especially in fundraising roles, where organisations report critical skills gaps.
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Sources of income and fundraising practices
In response to these pressures, CSOs are actively exploring diverse fundraising tools. Traditional funding sources include international and national grants, donations from local businesses and philanthropists, and membership fees. Grants from Western donors, city budgets, and social funds remain essential for project support. In some cases, local authorities offer in-kind assistance such as access to office space or transport.
At the same time, digital and community-based initiatives are becoming more common. Crowdfunding platforms (such as Spilnokosht or Dobro.ua) allow organisations to collect small donations from large audiences. This method not only brings in funds but also fosters closer engagement with the public. It helps CSOs build recognition and connect with supporters. Online campaigns and social media outreach enable organisations to reach national or even international audiences with relatively low costs. A good example is the use of “bank jars” (dedicated fundraising accounts), which can be shared via messaging apps or social networks to gather contributions.
Some CSOs are also developing social enterprises – producing goods or services that generate income. Selling branded merchandise, running paid educational programmes, or offering consulting services allows them to cover part of their costs and reduce dependency on grants. For instance, selling branded T-shirts or souvenirs helps raise both funds and public awareness. This work is often supplemented by sponsorships: in return for supporting a social cause, businesses gain visibility, while CSOs receive much-needed resources.
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Successful fundraising
Successful fundraising requires clear strategy and transparency. Experts emphasise that organisations must define their goals clearly and report openly on how funds are used, building trust with donors. Sharing experience within the sector is equally important: horizontal networking, media engagement, and cooperation with international partners all help to strengthen civil society. In the long term, analysts recommend promoting recurring contributions – such as monthly donor schemes – and simplifying access to grant programmes. These steps can improve financial stability and ensure CSOs can continue to meet critical community needs.
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