Restore Ukraine is a nonprofit organization officially formed in Ukraine and in partnership with Humanitarian Social Innovations, a respected nonprofit in the U.S. How does this work from a legal standpoint?

Restore Ukraine began as a humanitarian arm of Atlant, a Kharkiv-based supply chain company that serves as the largest wholesale distributor of building materials in Ukraine. At the onset of the Russian invasion of Ukraine, Atlant set aside commercial concerns and converted its headquarters and warehouses into shelters and food banks for Kharkiv’s displaced civilians. In order to continue providing refuge for defenseless Ukrainian civilians, Atlant transferred its disaster relief services to Restore Ukraine as a legally recognized nonprofit. You can read more about this transition into a nonprofit organization here.

As the devastation continued to mount, Restore Ukraine faced an urgent and immediate need to develop partnerships with recognized nonprofit organizations in the U.S. To become a trusted partner and launch as quickly as possible, Restore Ukraine chose to operate under the umbrella of an already existing nonprofit organization that has the status of a public charity under IRS Section 501(c)(3). This alliance is known as a fiscal sponsorship. It means that all donations and grants to Restore Ukraine are tax-deductible to the full extent of U.S. Federal law. In legal terms, our U.S. partner, Humanitarian Social Innovations (HSI), treats funds received for Restore Ukraine as restricted under the charitable trust doctrine, and all funds are dedicated solely to the mission and vision of Restore Ukraine while complying with all nonprofit tax regulations, including federal, state, and local tax and informational filings.

Why not just form a separate public charity under IRS Section 501(c)(3)?

Restore Ukraine wants to minimize its expenses and make the best possible use of donated funds in order to maximize its impact on the ground in Ukraine. HSI specializes in erasing the complexities of launching and administering social programs like ours. This partnership allows Restore Ukraine to outsource the legal and accounting side of nonprofit operations to HSI, freeing up Restore Ukraine’s team to focus its energy and donated funds on serving Ukrainian families in dire need and delivering them out of chaos.

Through this approach, Restore Ukraine meets all legal U.S. requirements as an international nonprofit organization. Importantly, it also means Restore Ukraine can work with corporate sponsors and recognized foundations around the world since we adhere to the guidelines of every country’s taxation body.

Restore Ukraine’s goal is to serve, shelter, feed and protect Ukrainian families struggling to survive a brutal war. Through our partnership with HSI, we can invite Americans—and people around the world—to serve the people of Ukraine with us.