TABLE OF CONTENTS
About East Europe Foundation
page 3
Board of Directors and Advisory Council
page 4
Letter from the President
page 5
Programs
page 6-9
Financials
page 10
Donors and Partners
page 11
East Europe Foundation is a privately managed non-profit organization supported by Eurasia Foundation and other public and private donors. Launched in January 2008, EEF mobilizes public and private resources for community, social and economic development in Ukraine and is a member of the Eurasia Foundation Network. For more information, please visit: www.eef.org.ua.
Eurasia Foundation is a privately managed non-profit organization supported by the United States Agency for International Development (USAID) and other public and private donors. Since 1992, Eurasia Foundation has invested more than $380 million through more than 8,400 grants and operating programs in Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, the Kyrgyz Republic, Moldova, Russian, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.
This publication is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents are the sole responsibility of Eurasia Foundation and do not necessarily reflect the views of USAID or the United States Government.
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EAST EUROPE FOUNDATION. ANNUAL REPORT.
About East Europe Foundation Approach East Europe Foundation works to achieve its mission by: - identifying and strengthening partnerships between nonprofit organizations, local authorities, businesses and other local stakeholders; - building the capacities of its partners to sustain their missions by providing knowledge, skills, financial assistance and other resources; and - cultivating innovative development models and fostering synergy among its programs and partners.
History East Europe Foundation (EEF) is a Kyiv-based international charitable foundation established in 2008. Since that time EEF has invested approximately $4 million through grants and operating programs in 20 oblasts of
Ukraine. EEF carries on the development work of its founder, Eurasia Foundation, which has invested more than $47 million in Ukraine. With an independent board of directors and a highly skilled staff, EEF implements economic and social development programs with the support of local and international donors, including USAID, European governments, multilateral organizations, foundations and corporations.
Partnerships EEF depends on its network of highly motivated civic leaders, community organizations, local governments and technical assistance providers. It constantly seeks new partnerships and opportunities to expand programming to new communities. For more information about partnership opportunities with EEF, please visit www.eef.org.ua
MISSION
East Europe Foundation empowers citizens to build their own futures by mobilizing resources, strengthening communities and fostering public-private cooperation.
ANNUAL REPORT.
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Board of Directors
Peter Chernyshov
Adriaan Jacobovits de Szeged
CEO Slavutich, Carlsberg Ukraine
Former Ambassador of the Netherlands
Margarita Karpenko
Trond Moe
Managing Partner DLA Piper Ukraine
Chairman Eastern Europe Group
Steven Pifer
Victor Liakh
Yuriy Sivitsky
Vitaliy Sych
Former US Ambassador Senior Fellow Brookings Institution
President East Europe Foundation
Advisory Board Member Intecracy Group
Chief Editor Korrespondent Magazine
Timothy Pylate
Alexei Kredisov
Helen Volska
Sandra Willett Jackson
Regina Yan
Senior Vice President for Development The National Math and Science Initiative
Managing Partner Ernst & Young Ukraine
Managing Partner and Director EBS
Co-Founder and Principal Strategies & Structures International
Chief Operating Officer Peterson Institute for International Economics
ADVISORY COUNCIL
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Dr. Serhiy Kozachenko
Boris Lozhkin
Morgan Williams
Natalie A. Jaresko
Marina Starodubska
Director International Centre for Enterprise and Management Development
General Director President United Media Holding Group Companies
President/CEO U.S.-Ukraine Business Council (USUBC)
Founding Partner and Chief Executive Officer Horizon Capital
General Director and Managing Partner Mikhailov & Partners Ukraine Strategic Communications Consultancy
EAST EUROPE FOUNDATION. ANNUAL REPORT.
Letter from the President Dear Friends and Partners! East Europe Foundation (EEF) is proud to present its annual report. We hope that 2011 was a year in which you gained invaluable experience, established new partnerships and implemented interesting and productive projects and initiatives as we did. Strengthening EEF to become a leading organization which supports the social and economic development of Ukrainian communities brings new goals and challenges for us to address. Based on feedback from Ukrainian and international partners and other stakeholders in 2011, EEF has developed a strategic plan for 2012-2014, according to which EEF will continue to implement programs focusing on four key areas: Local Economic Development, Local Social Development, Governance and Civil Society, plus Energy Efficiency and the Environment. The restructuring of our program portfolio is needed in response to priorities declared on the national level as well as local community needs which EEF tries to meet by developing and implementing new projects and initiatives. We continue to focus on initiatives aimed at solving urgent social issues of vulnerable communities as well as on projects that aim to create a solid foundation for further sustainable social development. Last year we actively worked to improve social living standards, namely as regards the integration of vulnerable youth into society, ensuring equal access for people with disabilities, and creating comfortable conditions and places in which the elderly can indulge in favorite pastimes and other activities. We have also aimed our efforts to support local initiatives that help to ensure active citizen participation in the development of local policy and agenda. For EEF it is important to show innovation in priority areas, so to make the work of local authorities more transparent and accountable, we have introduced egovernance technologies and actively monitored the work of local deputies. In 2011, EEF also focused on promoting ideas such as public-private partnerships, social entrepreneurship and corporate social responsibility. In addition, EEF furthered its work to improve energy efficiency and introduce new energy-saving technologies in public buildings, including kindergartens, schools, hospitals, libraries and more. Current and future EEF projects are aimed at providing Ukrainian communities with effective tools, expertise and skills to build their future and make responsible decisions. We are extremely grateful to all our partners and donors, who supported us and joined in our initiatives throughout 2011. EEF remains open to you and the synergies that can be created through our cooperation! Sincerely, Victor Liakh President East Europe Foundation
PROGRAMS
EEF PROGRAMS IN 2011 Local Economic and Social Development Effective Governance Corporate Social Responsibility and Responsible Philanthropy
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Local Economic and Social Development Program The program strengthens public-private partnerships at the local level and improves the capacities of communities to upgrade communal infrastructure, introduce energy-saving technologies, and provide social services and protection for vulnerable groups. Partnerships for Cleaner Energy The goal of the three-year initiative is to promote energy saving and CO2 reduction in Dnipropetrovsk oblast. The project aims to build the capacities of local government and business to design, evaluate, implement, and measure community-driven energy efficiency and CO2 emissions reduction strategies and projects. The USAID Partnership for Cleaner Energy project is being implemented by EEF in partnership with the Dnipropetrovsk Oblast Council, the Dnipropetrovsk Oblast State Administration and the DTEK company.
IN 2011 THE PROJECT HELPED: • Eight communities from Dnipropetrovsk oblast where energy-efficiency equipment has been installed, in particular: LED street lighting was installed in Zelenodolsk and Bohdanivka; solar panels to heat water for a kindergarten swimming pool were installed in
Pavlohrad; basic energy efficiency measures such as roof and wall insulation, windows and doors were replaced to improve comfort and save energy in the kindergartens of Novooleksandrivka, Tomakivka, Loboikivka and Mezhova, and at a library in Devladove. • More than 150 representatives of local authorities and businesses responsible for decision making that led to the introduction of energy-efficiency measures attended training seminars. • To develop approximately 30 publications on energy efficiency as part of a contest for journalists. • More than 2,000 people attended the 11th annual Energoprom national expo, which aims to promote modern energyefficiency technologies and to help establish cooperation between local authorities, businesses, other potential energy users and producers of energy efficiency technology.
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Municipal Partnerships for Better Energy Use
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Since 2006, EEF and its founder have invested nearly $400,000 in 21 local initiatives in 11 oblasts of Ukraine to support partnerships between municipal governments and community groups that improve energy efficiency, install alternative energy technologies and share best practices in saving energy. EEF raises public awareness of energy-saving approaches among various stakeholders,
installs energy-saving equipment at hospitals, kindergartens, schools and museums, and facilitates local government and community cooperation. To ensure the sustainability of local projects, EEF requires that no less than 50 percent of the funds for each initiative be raised from local resources, and that savings be reinvested in energy-saving plans.
IN 2011, AS PART OF THE EEF AND PARLIAMENT OF CRIMEA JOINT PROGRAM “ENERGY EFFICIENCY TECHNOLOGIES TO SERVE CRIMEANS”, THE PROJECT HELPED: • To assess possible sites for solar energy pilot projects and to identify 140 public buildings where alternative sources of energy could work; • To train 244 local government representatives and community activists; • 17 local authorities to receive consulting support; • To provide hot water supply to four educational establishments for youth: • a Kindergarten in Yevpatoria; • a Kindergarten in Poltavka’s Krasnohvardeysky distrist; • two Kindergartens in Pervomayske.
IN 2011, AS PART OF THE EEF AND SEVASTOPOL CITY STATE ADMINISTRATION JOINT PROGRAM “SUPPORTING RENEWABLE AND ALTERNATIVE ENERGY”, THE PROJECT HELPED: • To develop and introduce facultative course for schoolchildren of grades 6-7 and 9-10 as regards alternative sources of energy; • To conduct an energy audit of 74 city kindergartens and to prepare technical documentation on solar panel installation; • To train 50 representatives from local businesses dealing with hotels, restaurants and other hospitality industries on how to attract investments to implement energy-saving projects; • To start installing solar panels at educational establishment #5 to provide hot water supply and establish specialized classroom to demonstrate how these new technologies work.
EAST EUROPE FOUNDATION. ANNUAL REPORT.
Community Centers for Senior Citizens This project creates opportunities for social engagement among seniors and provides venues for their pastimes/social activities so that local seniors can gather to sing, dance, enjoy various hobbies and spend time with each other, as well as gain new skills through several specific groups. The project also helps improve the standard of living of local seniors by offering various services, including laundry and hairdressing, as well as medical, psychological and legal consultations. In total, EEF has invested in the creation of 11 such community centers for seniors across Ukraine.
IN 2011 THE PROJECT HELPED: • To establish three new seniors’ centers in Cherkasy oblast with 19 hobby groups and seven new social services, including massage, hairdressing and clothing repair, laundry, aromatherapy and shower service. GRANTEES • Care for the Elderly, Cherkasy branch of All-Ukrainian charitable organization • “Zolotonosha municipal Charitable Foundation of Health and Mercy” • Chornobay district Organization of Veterans of Ukraine
Everyone Has the Right to Work This project empowers vulnerable youth to better integrate into society by providing them with vocational training, helping them to access educational and employment opportunities, plus by improving social services. In 2011, social orphans from Zhytomyr and Kharkiv oblasts received intensive vocational training and were provided with information on employment and educational opportunities. The project also facilitates cooperation between local employers, state agencies and NGOs to increase their capacity and skills to jointly address the needs of social orphans and youth with disabilities.
IN 2011 THE PROJECT HELPED: • More than 300 orphans from 18 Zhytomyr and Kharkiv oblasts vocational schools to receive information, consulting and social support to better integrate into society; • More than 80 representatives of NGOs, teachers and social workers to receive new practical skills required to work with vulnerable youth; • To install modern equipment in Kharkiv oblast’s Kupiansk and Izuim Vocational Schools and adopt an Izuim School for needs of youth with disabilities; • To publish and disseminate a manual for trainers focused on assisting vulnerable youth with integration into society; • To publish and disseminate a practical guidebook for vulnerable youth on where and how to further their education and find meaningful work.
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Public Private Partnership: Extending Opportunities for Economic Grow Public-private partnerships, also known as PPP, represent an approach to addressing community economic development problems through the combined efforts of local governments, private enterprises and local development organizations. EEF, in cooperation with the USAID LINC project, is facilitating local community development by identifying and strengthening existing PPPs that support regional economic investment, help to develop new PPP mechanisms, build the capacities of regional champions for PPP, and provide practical recommendations and help to develop new PPP projects. IN 2011 THIS PROJECT HELPED: • To develop and distribute one of Ukraine’s first practical manual on the implementation of PPP mechanisms; • To train more than 150 local authorities and business
representatives from Chernivtsi, Volyn, Rivne, Luhansk and Odesa oblasts and the Autonomous Republic of Crimea on PPP implementation; • 17 local officials from six cites to receive practical skills within an intensive training program and study tours to learn Ukrainian best practices on PPP implementation in different areas, including waste management, heating supply, medical services and tourism. • Representatives of pilot cities (Odesa, Yevpatoria, Lutsk and Stakhanov) were consulted during the development and preparation of their own PPP projects aimed at: the establishment of an open-air museum featuring the old city (in Odesa); the development of a sports facility in a recreational zone around the Moinaki salt lake (in Yevpatoria); and the reconstruction of existing buildings and establishment of new hotels (in Lutsk).
Equal Access for People with Disabilities This project helps ensure equal physical access to public buildings and services for people with special needs and increases the quality of services provided to them by public and private organizations. GRANTEES: • Podilska Hromada Vinnytsia charitable foundation • NGO “Harmonia” from Vinnytsia • Svit Informatsii Association of Library Users from town of Bar (Vinnytsia Oblast)
IN 2011 THE PROJECT HELPED: • To make the Vinnytsia oblast Sadovski Drama Theater accessible for people with special needs; • To improve mobility for people in wheelchairs and people with visual impairments by providing special escort and transportation services around the city; • To expand the spectrum of library services and create an audio library for people with visual impairments.
Social Enterprise Development A social enterprise is a revenue-generating business whose surpluses are reinvested for social or charitable objectives in the community. This is a relatively new concept in Ukraine, and EEF in partnership with the British Council in Ukraine, PricewaterhouseCoopers, Erste Bank, the American Chamber of Commerce in Ukraine and the International Renaissance Foundation, is working to create a favorable environment for development of the social enterprise sector, as well as to provide those who want to run a social enterprise with the legal, financial and consulting support they need.
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EAST EUROPE FOUNDATION. ANNUAL REPORT.
GRANTEES: • Remisnycha Palata Krymu NGO • NGOs Association for Social and Economic Strategies and Partnerships (Donetsk Oblast) • Sokal Agency for Regional Development (Lviv Oblast)
IN 2011 THE PROJECT HELPED: • Approximately 400 people interested in launching a social enterprise to receive methodological and information support in specially established centers.
Effective Governance Program EEF helps improve the accountability and transparency of local governance by assisting in designing public policies, implementing national reforms and increasing the participation of civil society organizations in the public policy-making process.
Ukraine National Initiatives to Enhance Reform (UNITER) GRANTEES: • ECO Dovkillya NGO • Vinnytsia oblast “A-Vestа” NGO for people with disabilities • Kharkiv “Creavita” NGO for people with disabilities • “Face to Face” NGO • Association of Support of Municipal Government Development • Crimea Development Institute • Poltava Business Development Center • Eremurus Ecological Club • “Rosa Vetrov” Sustainable Development Center • Center of Support for Economic and Social Development in Ripky District • “Small Business Laboratory” NGO • Agency for the Development of Private Initiatives • Berdyansk Educators for Peace and Mutual Understanding NGO • Bilozerka district branch of the Kherson oblast civic youth organization “Youth Center for Regional Development” • Kherson Chamber of Commerce and Industry • Civic Initiatives Center charitable foundation, Perechyn (Zakarpattska oblast) • Development of Sevastopol NGO • “Harmony” Civic NGO for Youth with Disabilities (Vinnytsya oblast) • Ternopil Orphans Union Municipal Youth NGO • Tamarisk Center for Support of Public and Cultural Initiatives (Dnipropetrovsk oblast) • Kharkiv Communities’ Development Association IvanoFrankivsk Economic Development Association.
The aim of this project is to support local-level advocacy that helps influence public policy, protects citizens’ rights and holds government officials accountable through the work of active NGOs and citizens. In 2011, within 22 grants 22 advocacy campaigns were conducted to bring changes in the areas of government accountability, municipal housing reform, citizen participation, effective citizen input into local development planning, effective governance and empowerment for disadvantaged groups. Local project partners initiated the development of 31 regulatory acts and public policies, 23 of which were approved. Among those, transparent mechanisms for municipal funding of social projects were approved in Dnipropetrovsk, instructions for 78 administrative service procedures were approved by the Ivano-Frankivsk City Council and are now used in the City Administrative Service Provision Center, and a Vinnytsia city program to achieve a barrier-free environment initiated by local NGOs has been continued through the end of 2015. In 2011 UNITER partners announced a call for proposals encouraging NGOs to form coalitions to unite the efforts of local- and national-level Ukrainian NGOs to advocate on behalf of citizens’ interests and drive national reforms in areas important for Ukrainian society. In total, 61 coalitions uniting 299 organizations submitted projects for consideration. UNITER partners conducted an intensive training program for semifinalists to teach applicants how to build an effective coalition and how to work together. Grants will be awarded in 2012.
ANNUAL REPORT.
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Innovations in E-governance This project promotes transparency and accountability among government authorities and municipalities by improving government communications and enhancing government services for citizens through the computerization of various governmental administrative procedures.
IN 2011 THE PROJECT HELPED: • To develop and test administrative services set for the Odesa State Oblast Administration to provide services on the registration of interested foreign investors, developing investment proposals, plus supporting and monitoring implementation of investments plans. A newly developed website, http://invest.odessa.gov.ua, now helps investors and those interested in investing as well as significantly decreases the time needed to receive services. In addition, the circulation of documents between local officials has been digitalized.
Your Local Representative: Strengthening Citizen Participation in Ukraine This project aims to enhance the capacities of Ukrainian NGOs and citizens to influence local political life by receiving access to information about elected officials and monitoring the work of such elected officials. Elected officials use newly established online resources as a channel to inform citizens about what they do – sites which also allow citizens to comment or provide recommendations on how to improve the work of local councils and deputies. IN 2011 THE PROJECT HELPED: • To create “Your local representative” websites (www.dep.org.ua) in eight regions where detailed information on the composition of 87 pilot local councils and other important information is provided. In total, 4,671 special pages on local deputies were created. These pages summarize information on each deputy, including biography, political views, contact information and working hours.
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EAST EUROPE FOUNDATION. ANNUAL REPORT.
• The websites created were visited by approximately 210,000 users, 880 of which registered to participate in discussions, forums and provide feedback. Approximately 1,500 comments on the work of local council were left by users of such sites. • To accompany the websites, special pages on social networks where created and united around 900 active users. GRANTEES: • Odesa oblast branch of All-Ukrainian public organization "Committee of voters of Ukraine" • Volyn oblast - Center for Political Analysis and Electoral Consulting • Chernihiv Oblast - Center for Social Prosperity 'Dobrochyn' • Donetsk Oblast - Donetsk Oblast Organization of Committee of Voters of Ukraine • Luhansk Oblast - East-Ukrainian Center of Civil Initiatives • Kharkiv Oblast - Foundation for Local Democracy • AR Crimea - NGO "Crimea Development Institute" • Ternopil Oblast - Nivroku Art Youth Union
Corporate Social Responsibility and Responsible Philanthropy Program This program helps to form partnerships between local authorities, Ukrainian and international business, and NGOs to encourage sustainable decision-making and positive changes to the development and well-being of Ukrainian communities. EEF believes that CSR programs and social investments provided by business and their fruitful cooperation with local authorities will result in the further sustainable development of local communities. EEF promotes international standards and best practices with respect to CSR, advocates for a better legislative and regulatory framework for the advancement of CSR, and encourages corporate philanthropy.
Raising Public Awareness on Responsible Philanthropy and Best International CSR Standards By means of a weekly e-bulletin called “CSR in Ukraine�, EEF informs its more than 7,000 readers, including representatives of large companies, SMEs, international development organizations, local authorities, NGOs and the mass media, on the best Ukrainian CSR practices, international standards, non-financial reporting, new initiatives in this area and more. EEF is one of the founders and an active supporter of the Ukrainian Philanthropists Forum, a network of more than 26 charitable foundations. EEF together with the UPF focuses on the enhancement of effective philanthropy nationwide by participating in the development of a national agenda and the sharing of best Ukrainian and international practices in philanthropy. They also help create a favorable legislative environment for the transparent and meaningful development of philanthropy.
Cultivating Corporate Volunteering In 2011 EEF jointly with local and international partners organized two international conferences on corporate volunteering. More than 500 participants discussed key conference issues such as current trends, challenges and prospects for corporate volunteering development, plus best international and Ukrainian models and practices. For the second time EEF conducted its National Corporate Volunteer Contest in partnership with the UN Global Compact Network in Ukraine, the UN Volunteers Programme, the European Business Association, the American Chamber of Commerce in Ukraine, the U.S. PeaceCorps and the Ukrainian Philanthropists Forum. The contest, which aims to recognize and celebrate businesses with employee volunteer programs that help to solve vital problems in society, resulted in approximately 20 applications representing corporate volunteering programs being implemented by local and international companies in Ukraine.
ANNUAL REPORT.
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Financials
EEF REVENUES BY FUNDER, 2011
EEF EXPENSES BY FUNCTION, 2011
TOTAL REVENUES $950 953,74 (100%)
TOTAL EXPENDITURES $1 328 688,21 (100%)
Private Companies $244 905,98 25,78% Individual Donations $19 932,04 2,10% International Organizations $134 422,43
Foreign Embassies $53 683,19 5,65%
Administrative Overhead $245 929,70 18,51%
14,15%
17,18%
Grants $228 245,20
64,31% 52,32%
U.S. Government $479 111
Programs and Program Support $854 513,31
INDEPENDENT AUDITORS' REPORT
STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2011
ASSETS CASH IN BANK GRANTS AND CONTRIBUTIONS RECEIVABLE PREPAID EXPENSES TOTAL ASSETS
$443 406 $2 239 011 $12 551 $2 694 968
LIABILITIES AND NET ASSETS CURRENT LIABILITIES ACCOUNTS PAYABLE
$13 391
GRANTS PAYABLE
$44 048
ACCRUED SALARIES AND VACATION
$18 850
TOTAL LIABILITIES
$76 289
NET ASSETS UNRESTRICTED
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EAST EUROPE FOUNDATION. ANNUAL REPORT.
$140 374
TEMPORARILY RESTRICTED
$2 478 305
TOTAL NET ASSETS
$2 618 679
TOTAL LIABILITIES AND NET ASSETS
$2 694 968
OUR SPONSORS IN 2011 Names in bold indicate a direct donation of $10,000 and more Donors
Crimean Republic Committee of the ARC on Fuel,
American Chamber of Commerce
Energy and Innovation Policy
Donbass Fuel-Energy Company (DTEK)
Dnipropetrovsk Oblast State Administration
Embassy of Finland in Ukraine
Dnipropetrovsk Oblast Council
Embassy of Switzerland in Kyiv ERSTE Foundation Eurasia Foundation German Marshall Fund/Black Sea Trust
Yevpatoria City Council Kharkiv Oblast State Administration Main Kharkiv District State Administration
JT International
Department of Education and Science
OSCE Project Coordinator in Ukraine
Loboykivka Village Council (Dnipropetrovsk
Pact, Inc.
Oblast)
Philip Morris Ukraine
Ministry of Labour and Social Policy of the ARC
Royal Norwegian Embassy in Ukraine
Mezheva District Council (Dnipropetrovsk Oblast)
Slavutich, Carlsberg Ukraine UN Democracy Fund U.S. Agency for International Development (USAID) USAID LINC World Childhood Foundation
Novooleksandrivka Village Council (Dnipropetrovsk Oblast) Pavlohrad City Council Pervomaysk City Council Poltavka Village Council (AR Crimea)
Partners
Odesa Oblast State Administration Main
British Council
Department of Foreign Economic Affairs and
Business in the Community
European Integration
Civic Campaign New Citizen
Sevastopol City State Administration
Committee of Voters of Ukraine Cherkasy branch
State Employment Center
Erste Bank
State Social Service for Family, Children and
Expert Ukraine Magazine
Youth
Foundation for Socio-Economic Development of
Tomakivka District Council (Dnipropetrovsk
Sevastopol
Oblast)
International Renaissance Foundation Internews Ukraine John Smith Trust Microsoft Ukraine National Assembly of People with Disabilities
Trostyanets City Council (Sumy Oblast) Verkhovna Rada Autonomous Republic of Crimea Zelenodolsk City Council (Dnipropetrovsk Oblast) Zhytomyr Oblast Employment Center
PH International in Ukraine Platinum Bank PricewaterhouseCoopers Ukraine U.S.-Ukraine Business Council
Memberships in Coalitions, Associations and Networks American Chamber of Commerce Business in the Community Global Partnership
Ukrainian Government Partnerships
Network
Berdychiv City Employment Center
European Business Association (EBA)
Bogdanivka Village Council (Dnipropetrovsk
Ukrainian Philanthropists Forum
Oblast)
UN Global Compact Network in Ukraine
ANNUAL REPORT.
EAST EUROPE FOUNDATION.
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