Expert Talks by Lighthouse Legal Advisory is a media platform for dialogue between legal professionals, social policy researchers, and the business community. In this edition, we speak with Larysa Verbytska — an expert in gender equality and social inclusion, co-founder of a social enterprise in Bern, and mentor of Ukrainian startups within the European initiative Seeds of Bravery. The topic of the discussion is endowments as a tool for long-term sustainability for non-governmental organizations and local communities.
What is an endowment and why is it important for Ukraine
An endowment is an untouchable core capital created by donors, which is invested through financial or business instruments and generates annual income. The investment income is directed toward grants and programs, ensuring stable funding not for months, but for years.
A few interesting facts
380 BC
In Ancient Greece, the well-known philosopher Plato established the first endowment fund in the modern sense. The fund was intended to support the development of the Platonic Academy, a religious and philosophical association.
1502
An analogue of modern target funds appeared in Great Britain. Lady Margaret Beaufort, grandmother of King Henry VIII, made a donation to establish chairs of theology at the universities of Oxford and Cambridge. Today, the endowment funds of Oxford and Cambridge are the largest in the United Kingdom, with capital of £4.1 billion and £3.2 billion respectively. According to the traditional British model, fundraising for these funds is carried out by a separate staff — the development department — comprising more than 100 employees.
In Europe, the United States, and the United Kingdom, endowments are a common practice among universities, foundations, and communities. For Ukraine, this is a new reality: the traditions of “old money” have not taken root, and the legal framework is still developing. At the same time, endowments can provide an answer to one of the key questions of the post-war period: how to transition from rapid humanitarian response to long-term change.
From “emergency aid” to sustainability
The years 2022–2023 became a period of large-scale emergency support — rapid deliveries, urgent aid programs, reactive decisions. This was necessary. However, by 2024–2025, communities and local foundations are recognizing a lack of sustainability. The endowment, as a tool, allows for planning the budget at least a year ahead, understanding the guaranteed volume of resources, and reducing dependence on short-term or situational grants.
Key Challenges
Legal Framework. In Ukraine, legislation has historically changed frequently; until full European integration, this will remain a risk. Clear rules are needed for the establishment and taxation of endowments and social entrepreneurship.
Culture and Financial Literacy. Long-term investment for socially beneficial purposes is only beginning to develop. Public communication is needed to explain that “the capital is untouchable, the income works.”
Uncertainty of the Post-War Context. We do not yet fully know future policies and regulations; therefore, flexibility is a critical requirement for managing endowments.
Due Diligence and Selection of Providers. For many Ukrainian NGOs, this is a new culture — transparent procedures for assessment and risk management.
Shared Responsibility. Sustainability emerges where local authorities, businesses, and beneficiaries co-finance projects and “vote with their wallets.”
Where to Establish Endowments: The EU or Switzerland?
International practice demonstrates different models — European and American foundations have been working with Ukraine for decades. The choice of jurisdiction should take into account three key factors:
• Local context — the needs and realities of a specific region in Ukraine;
• Management flexibility — the ability to quickly adjust priorities;
• Transparent procedures — partner selection, auditing, and reporting.
A separate issue concerns tax regimes for donations and social entrepreneurship in Ukraine. The anticipated adoption of a new law on social entrepreneurship (mentioned as a possible step in upcoming parliamentary sessions) could significantly simplify the mechanisms of local support.
The “Shared Responsibility” Model
The transition to sustainability is not only about investment but also about the architecture of partnerships:
• Local authorities provide resource support (premises, infrastructure, co-financing).
• Local businesses invest part of their profits in the community’s common goals.
• Citizens make small regular contributions, forming a culture of the common good.In this model, the endowment becomes the financial core, and social entrepreneurship serves as a tool for the regular replenishment of the fund.
Personal Motivation: Local Stories — Global Meaning
Larysa gives a telling Swiss example — the church tax that even secular people are willing to pay because they see its concrete local impact: the development of their community. The same logic could work in Ukraine: “I support Vinnytsia because I was born there; Sumy, because I studied there.”
Her personal drive is to create what did not exist before and to leave behind a mechanism that will continue to function after us. A separate source of motivation is Kharkiv — restored and flourishing, like “a star on the map of Ukraine.”
Risks and How to Manage Them
• Legal fluctuations. Minimized through the correct choice of endowment jurisdiction, a well-designed compliance model, and longer investment frameworks with adjustment options.
• Lack of trust or literacy. Addressed through systematic communication: public reports, independent supervisory boards, and training of NGO teams.
• Environmental uncertainty. Managed through adaptability principles: revising priorities at least once a year, scenario planning, and diversification of instruments.
Advice for Young Leaders and NGO Teams
- Check your motivation. The NGO sector is about long-distance commitment — emotionally and in terms of time.
- Seek mentorship and partnerships. Learn from those who have already done similar work — it saves years.
- Allow yourself to make mistakes. Mistakes are part of the journey; the key is not to lose enthusiasm and to accumulate experience.
- Avoid a competition mindset. In the social sector, cooperation logic works: the more players, the more resilience.
- Build a “road map.” Study best practices, set up due diligence, and define investment and reporting rules.
Conclusion
An endowment is not just a financial instrument. It is an agreement of trust and responsibility between the community, business, authorities, and donors. For Ukraine, it is a path from reactivity to long-term development — from one-time donations to capital that serves the common good for years.
Expert Talks by Lighthouse Legal Advisory will continue to explore the topic of endowments. Stay tuned — upcoming discussions will feature initiators of legislative changes and practitioners of social entrepreneurship.
