{"id":2064,"date":"2026-03-18T23:19:38","date_gmt":"2026-03-18T21:19:38","guid":{"rendered":"https:\/\/uhc.org.ua\/?p=2064"},"modified":"2026-04-01T16:51:08","modified_gmt":"2026-04-01T13:51:08","slug":"what-is-a-non-profit-organisation-eng","status":"publish","type":"post","link":"https:\/\/uhc.org.ua\/en\/what-is-a-non-profit-organisation-eng\/","title":{"rendered":"A new organizational form for public service providers: the concept of a non-profit company"},"content":{"rendered":"<div class=\"wp-block-post-time-to-read\">3\u20134 minutes<\/div>\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-ad06f40c8a77d04f32dd55ab4466c27a wp-block-paragraph\"><em>The abolition of the Commercial Code has opened a window of opportunity to rethink the operating principles of state and municipal non-profit organizations. So far, however, these changes have remained largely formal. This opportunity should be used to effect a substantive reset in how public services are organized.<\/em><\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-f728ff5c53c728abf5d3faf4a4f26673 wp-block-paragraph\">Experts of the Ukrainian Healthcare Center (UHC), with the support of the Government of the Kingdom of the Netherlands, have developed the concept of a <strong>non-profit company (NC)<\/strong>, a special organizational and legal form for public service providers working in the public interest in the fields of healthcare, education, culture, and social care.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-fe48e5de wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link has-background has-text-align-center wp-element-button\" href=\"https:\/\/drive.google.com\/file\/d\/1LBRd14rCFxhBrJNZxElEkRlom0TQPw17\/view?usp=sharing\" style=\"background-color:#f36e22\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Read about the NC concept<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:19px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<div style=\"height:19px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-1d8db398a221f28aea312d4450534234 wp-block-paragraph\"><strong>What do we propose?<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-f6a295b55466c6c790872d828fc0336f wp-block-paragraph\">We propose introducing the non-profit company as a universal solution for public service providers. This form would make it possible to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-black-color has-text-color has-link-color wp-elements-0d8a3fe853d3ec8768443f6682a88310\"><strong>Advance a public mission:<\/strong> orient activities toward the public good rather than profit maximization.<\/li>\n\n\n\n<li class=\"has-black-color has-text-color has-link-color wp-elements-c19f9a7d3c39370e70a1cbee7f4e9291\"><strong>Shift to corporate governance:<\/strong> establish a clear division of roles and responsibilities among the founder, the board of directors, and executive management.<\/li>\n\n\n\n<li class=\"has-black-color has-text-color has-link-color wp-elements-731348891665ec73d08392c67aa6a91e\"><strong>Ensure financial autonomy: <\/strong>allow organizations to generate income from multiple sources, provided that all surplus is fully reinvested in the institution&#8217;s development.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:19px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div style=\"height:19px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-36a1fa382909ec7e6a2c70dc2a11de22 wp-block-paragraph\"><strong>Why does this matter for the healthcare system?<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-1a9f9c078510d773a47e886cb4179de0 wp-block-paragraph\">Our analysis shows that the current organizational forms available in Ukraine for state, municipal, and private public service providers have substantial limitations. For example, they continue to operate under the traditional &#8220;owner-manager&#8221; governance model, in which the owner holds the decisive role and retains significant influence over management decisions. In practice, this influence is often exercised without sufficient time, motivation, expertise, or institutional capacity to ensure high-quality strategic governance of complex organizations.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"160\" src=\"https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-1-1024x160.png\" alt=\"\" class=\"wp-image-2065\" srcset=\"https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-1-1024x160.png 1024w, https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-1-300x47.png 300w, https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-1-768x120.png 768w, https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-1-1536x239.png 1536w, https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-1-150x23.png 150w, https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-1-240x37.png 240w, https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-1.png 1610w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-547be9d3438a24aef188ad24752dc91a wp-block-paragraph\">This governance model carries serious risks. Decision-making is often politicized, effective checks and balances are largely absent, and management attention shifts away from achieving public outcomes toward the technical administration of assets and processes. Even in healthcare, where providers have gained greater operational flexibility, managers remain dependent on the owner\u2019s decisions in all key matters.<br>By contrast, the introduction of the NC model would make it possible to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-black-color has-text-color has-link-color wp-elements-df47fec3a4bbf85f2e5b0b2f192733e5\"><strong>Create a level playing field:<\/strong> the NC is a clear, understandable form for both the state and international partners.<\/li>\n\n\n\n<li class=\"has-black-color has-text-color has-link-color wp-elements-087c1dd62d43a76dcf83455b5e57fd79\"><strong>Change the logic of governance:<\/strong> move away from vertical, politicized subordination toward self-governance and strategic accountability.<\/li>\n\n\n\n<li class=\"has-black-color has-text-color has-link-color wp-elements-884f4b334d46b0720ede22ae6a4a0a86\"><strong>Ensure institutional resilience:<\/strong> professional governance would reduce dependence on the decisions of individual owners or public officials.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-de40f1880454d1b9922025e78d554a4c wp-block-paragraph\">The NC will enable the advancement of the gains from autonomization while removing the structural constraints that currently hinder the development of institutions. This approach is relevant not only to healthcare but also to education, culture, and social care, creating a shared foundation for their development.<\/p>\n\n\n\n<div style=\"height:19px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div style=\"height:19px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-7907d43b29109e4f00e00d37930edc04 wp-block-paragraph\"><strong>How would the corporate governance model of the NC work?<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-7afb370530428ed363ad2a117dd2b828 wp-block-paragraph\">A key element of the NC concept is the shift from the &#8220;owner-manager&#8221; model to one in which the board of directors plays a central role.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-c03f85d94f1b9a0dea0b5156ff3bff69 wp-block-paragraph\"><strong>Governance structure:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-black-color has-text-color has-link-color wp-elements-d3bd09b5b8167d254ca2ef5bd1a2e6b0\"><strong>Division of powers:<\/strong> the board of directors is responsible for strategy, while the executive team, such as the CEO and CFO, manages day-to-day operations.<\/li>\n\n\n\n<li class=\"has-black-color has-text-color has-link-color wp-elements-66408fc881322a9184b07e7efbb01793\"><strong>Board composition:<\/strong> a combination of executive directors, independent experts, and representatives of key stakeholders, including the community and the founder.<\/li>\n\n\n\n<li class=\"has-black-color has-text-color has-link-color wp-elements-699e5fc35e677f934321fb56b16ab535\"><strong>Control and transparency:<\/strong> mandatory internal and external audits, risk management, and compliance mechanisms.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"545\" src=\"https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-2-1024x545.png\" alt=\"\" class=\"wp-image-2067\" srcset=\"https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-2-1024x545.png 1024w, https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-2-300x160.png 300w, https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-2-768x408.png 768w, https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-2-150x80.png 150w, https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-2-240x128.png 240w, https:\/\/uhc.org.ua\/wp-content\/uploads\/2026\/03\/Group-2.png 1380w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-026c5d00e5e891440e8d52edc205d5fb wp-block-paragraph\">This would create an effective system of checks and balances, protect institutions from political influence, and strengthen their long-term sustainability.<\/p>\n\n\n\n<div style=\"height:19px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--2\"><a class=\"wp-block-button__link has-background wp-element-button\" href=\"https:\/\/drive.google.com\/file\/d\/1LBRd14rCFxhBrJNZxElEkRlom0TQPw17\/view?usp=sharing\" style=\"background-color:#f36e22\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Read more about governance mechanisms, p. 7<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:19px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-e024ebe6edc82985af8a24ab02932c5e wp-block-paragraph\">The next step should be to develop a concrete legislative solution and transitional models for existing service providers.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-309471db2ab9733032c436dd1af14457 wp-block-paragraph\">We are convinced that the <strong>non-profit company<\/strong> is a pathway toward building a modern, transparent, and effective system of public service provision in Ukraine.<\/p>\n\n\n\n<div style=\"height:19px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--3\"><a class=\"wp-block-button__link has-background wp-element-button\" href=\"https:\/\/drive.google.com\/file\/d\/1LBRd14rCFxhBrJNZxElEkRlom0TQPw17\/view?usp=sharing\" style=\"background-color:#f36e22\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Download the document<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-653d88e9072214bc5c0efb11e6a1c533 wp-block-paragraph\"><em>The document was developed by the Ukrainian Healthcare Center (UHC) with the support of the Government of the Kingdom of the Netherlands within the framework of the project \u201cExpanding the Role of Private Providers in the Delivery of Primary and Specialized Care.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The abolition of the Commercial Code has opened a window of opportunity to rethink the operating principles of state and municipal non-profit organizations. So far, however, these changes have remained largely formal. This opportunity should be used to effect a substantive reset in how public services are organized. Experts of the Ukrainian Healthcare Center (UHC), [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":2069,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[12],"tags":[],"class_list":["post-2064","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analytics"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/uhc.org.ua\/en\/wp-json\/wp\/v2\/posts\/2064","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/uhc.org.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/uhc.org.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/uhc.org.ua\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/uhc.org.ua\/en\/wp-json\/wp\/v2\/comments?post=2064"}],"version-history":[{"count":3,"href":"https:\/\/uhc.org.ua\/en\/wp-json\/wp\/v2\/posts\/2064\/revisions"}],"predecessor-version":[{"id":2073,"href":"https:\/\/uhc.org.ua\/en\/wp-json\/wp\/v2\/posts\/2064\/revisions\/2073"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/uhc.org.ua\/en\/wp-json\/wp\/v2\/media\/2069"}],"wp:attachment":[{"href":"https:\/\/uhc.org.ua\/en\/wp-json\/wp\/v2\/media?parent=2064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/uhc.org.ua\/en\/wp-json\/wp\/v2\/categories?post=2064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/uhc.org.ua\/en\/wp-json\/wp\/v2\/tags?post=2064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}