Supported culture — your name may appear on a museum or theater building: how they want to encourage patrons

Ukrainian museums, theaters, libraries, art schools, cultural centers, cultural heritage sites, and creative projects may gain more opportunities to attract private support.

The Verkhovna Rada proposes to legally regulate patronage in the cultural sphere so that businesses and citizens can finance cultural development under clear rules, and the mechanism itself becomes transparent and understandable for all participants. For this purpose, bill No. 15442 "On Amendments to Certain Laws of Ukraine Regarding Patronage Activities in the Cultural Sphere" was registered in parliament.

Currently, Ukrainian legislation lacks a separate regulatory act that comprehensively governs patronage activities specifically in the cultural sphere. The bill aims to define who can be a patron, who has the right to receive such assistance, in what forms it will be provided, how its use will be controlled, and what guarantees and incentives the state will provide.

Why they decided to regulate patronage

The draft law was developed to introduce a new institution of patronage as part of public-private partnership in the cultural sphere. The document was prepared based on the work of the Ministry of Culture of Ukraine together with the Verkhovna Rada Committee on Humanitarian and Information Policy in accordance with the legislative plans of parliament and government.

Patronage is an important tool for supporting culture, art, education, and the development of society’s creative potential. It can contribute to the restoration and renovation of cultural heritage sites, support gifted children, develop Ukrainian art, and establish cooperation between business and the cultural sector. At the same time, current legislation regulates only charitable activities and does not take into account the specifics of cultural patronage.

What new concepts will appear in the law

The bill proposes to supplement the Law of Ukraine "On Culture" with new definitions.

In particular, it is proposed to define:

• a cultural patron — a natural person or a private law legal entity engaged in patronage activities;
• patronage activities in the cultural sphere — voluntary and gratuitous provision of assistance to natural or legal persons;
• patronage assistance — material, monetary, or other support;
• a beneficiary — a natural or legal person resident of Ukraine designated as the ultimate recipient of assistance;
• a recipient of patronage assistance — charitable organizations, cultural institutions, educational institutions in the cultural sphere, as well as other legal entities whose activities are related to culture or support of cultural projects through grants or scholarships.

Additionally, among the priorities of state policy in the cultural sphere, it is proposed to define the development of interaction between participants in patronage activities and encouragement of patrons to support cultural projects.

What patronage assistance can be provided for

The document defines a list of areas in which patronage activities may be carried out.

In particular, assistance can be directed to:

• providing the material and technical base of cultural institutions;
• construction, reconstruction, restoration, conservation, major and current repairs, modernization, and renovation of cultural institutions and cultural heritage sites;
• creation and promotion of Ukrainian cultural products;
• holding exhibitions, festivals, competitions, art auctions, cultural and artistic projects, and sales exhibitions.

What forms patronage assistance may take

The bill provides that assistance may be provided in several forms.

Among them:

• free transfer of buildings, premises, structures, unfinished construction objects, land plots, vehicles, or funds;
• free performance of work or provision of services;
• purchase and transfer of equipment, inventory, and other property necessary for activities in the cultural sphere.

Who can receive assistance

The subjects of patronage activities are defined as the cultural patron and the recipient of patronage assistance.

The recipient is the recipient of patronage assistance and the beneficiary. If the ultimate recipient is a natural person, the contract will be concluded between the patron, the recipient of assistance, and the beneficiary themselves. At the same time, the beneficiary must use the received funds or property exclusively for the purposes defined by law and contract and cannot act as an intermediary for transferring assistance to other persons.

How patronage assistance will be formalized

Provision of assistance will be carried out exclusively on the basis of a written contract.

The document proposes to define its mandatory conditions, including:

• type of patronage activity;
• directions of assistance use;
• volume and terms of provision;
• procedure for monitoring the use of funds or property, including access to financial reporting;
• liability of the parties for breach of contract terms.

At the same time, the parties may provide other provisions if they do not contradict the legislation.

What restrictions are proposed

The draft law contains a number of safeguards.

Thus, the cultural patron, recipient of assistance, and beneficiary cannot be related persons within the meaning of the Tax Code of Ukraine.

Also, they cannot be legal entities whose ultimate beneficial owners, members, or participants with a share of 10% or more are the Russian Federation, Russian citizens (except those legally residing in Ukraine), or legal entities established under the legislation of the Russian Federation.

What support is proposed for patrons

The document proposes to introduce separate forms of state support for cultural patrons.

In particular, this includes:

• awarding state honors and honorary departmental distinctions;
• facilitating the commemoration of the patron’s name on buildings, structures, and other cultural facilities created or transferred thanks to patronage assistance;
• other forms of support in accordance with the legislation.

In addition, the state will guarantee natural and legal persons the opportunity to freely engage in patronage activities in the cultural sphere.

What other laws the document will amend

The bill also provides amendments to the Law of Ukraine "On Charitable Activities and Charitable Organizations."

In particular, it proposes to exclude references to art and cultural heritage protection from the current definition of patronage activities and to provide that patronage activities in the cultural sphere will be carried out according to a special law.

As the authors note, this should eliminate contradictions between legislative acts and clearly separate the regulation of cultural patronage from the general regulation of charitable activities.

Will the implementation of the law require additional funds

The implementation of the bill will not require additional expenditures from the state or local budgets. The authors also believe that the document does not create corruption risks, does not contain discriminatory norms, does not contradict Ukraine’s international obligations, and will not have a negative impact on the economy, labor market, public health, or the environment.

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