Donation or Gift: What is the Difference and What Rights Does a Benefactor Have
A donation is one of the most common ways to support people, organizations, or socially important initiatives. However, from a legal point of view, it significantly differs from a regular gift and entails additional rights and obligations for the parties involved.
As explained by the Ministry of Justice of Ukraine, a donation is considered the gifting of movable or immovable property, including money and securities, to achieve a predetermined purpose.
The presence of a specific purpose is the main difference between a donation and a regular gift. While property is transferred without specifying its use during a gift, the person accepting a donation is obliged to use it exclusively for the designated purpose.
The law also grants the donor the right to control whether the transferred funds or property are used according to the agreed purpose. If the donation is used improperly, the benefactor has the right to demand the termination of the donation agreement.
The form of the donation agreement depends on the subject being transferred. At the same time, the transaction is considered concluded from the moment the donation is accepted.
As previously written by the "Judicial and Legal Newspaper", gift agreements for real estate are often concluded between close relatives, but these agreements frequently become the subject of disputes after changes in family relations, inheritance opening, or conflicts arising. In practice, recognition of an agreement as invalid is often confused with its termination or cancellation, although these are different legal mechanisms.
Relations regarding gifting are regulated by Chapter 55 of the Civil Code of Ukraine. According to Article 717 of the Civil Code of Ukraine, under a gift agreement, one party gratuitously transfers property ownership to another. If the subject of the agreement is an apartment or other real estate, it must be concluded in writing, notarized, and subject to state registration.
After the transfer of ownership rights, the donor loses any property rights to the gifted property. Therefore, changes in life circumstances, deterioration of relationships, or the desire to reclaim the apartment are not grounds for canceling the gift.
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