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EAST EUROPE FOUNDATION

ANNUAL REPORT

2012


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 6-17

Financials

page 18

Donors and Partners

page 19

E AST E UROPE F OUNDATION

East Europe Foundation is a privately managed non-profit organization supported by Eurasia Foundation and others 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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About East Europe Foundation Mission

History

East Europe Foundation empowers citizens to build their own futures by mobilizing resources, strengthening communities and fostering public-private cooperation.

East Europe Foundation (EEF) is a Kyiv-based international charitable foundation established in 2008. Since that time EEF has invested more than $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.

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; cultivating innovative development models and fostering synergy among its programs and partners.

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

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BOARD OF DIRECTORS

Peter Chernyshov General Director Carlsberg Ukraine

Adriaan Jacobovits de Margarita Karpenko Szeged Managing Partner

Trond Moe

Former Ambassador of the Netherlands

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

Member of the Board 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 in 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. Sergey Kozachenko

Boris Lozhkin

Morgan Williams

Natalie A. Jaresko

Marina Starodubskaya

Director International Centre for Enterprise and Management Development

General Director President United Media Holding Group Companies (UMH)

President/CEO U.S.-Ukraine Business Council (USUBC)

Founding Partner and Chief Executive Officer Horizon Capital

General Director, Partner Mikhailov & Partners Ukraine Strategic Communications Consultancy

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LETTER FROM THE PRESIDENT Dear friends and partners! This report sums up East Europe Foundation’s activities and achievements in 2012. This year was very intense but full of new horizons and interesting experiences. We launched several new projects, started work in new directions, explored new formats, plus found new friends and partners. We are proud to see how successful program models developed by EEF and our partners are being replicated throughout the country. According to the strategic plan adopted for 2012–2014, we concentrated our efforts on the following areas: social development, economic development, effective governance and civil society development, and ecology and the environment. Such an approach has helped our team to focus on areas that are of the highest priority for Ukrainian society. Besides financial support provided by EEF, the foundation also pays a great deal of attention to improving the capacity of our local partners. By sharing successful models and engaging new communities in EEF projects, we believe that a focus on sustainable development created through partnerships developed between government, local communities and business at all levels will result in stronger and more proactive Ukrainian communities in the future. I would like to thank all who have helped EEF develop and implement the foundation’s programs, in particular Ukrainian NGOs and local authorities. Such partnerships are of mutual benefit because they provide EEF with unique opportunities to receive expertise and support on a grassroots level. In turn, local communities receive access to funds, new resources and knowledge to help carry out these programs. We can only be successful if our donors support our projects, and we want to thank the various international development organizations and foundations, businesses and governments that have helped make our programs a success. This support proves that many organizations and people share our values, our approach in program implementation and vision for furthering the development of Ukrainian communities. We are extremely grateful to all our partners and donors and believe that these partnerships should continue to provide benefits to all sides. We endeavor to continue our activities and involve new partners to implement the foundation’s many vital programs. Please join us!

Victor Liakh President Foundation East Europe Eur

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PROGRAMS

EEF builds its programs on the principles of sustainable development which stands for progress and regards social, economic and environmental issues inseparable and interdependent components of human progress.

Programs in 2012: Economic Development Program; Social Development Program; Good Governance and Civil Society Development; Energy Efficiency and the Environment.

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Economic Development Program aims to strengthen partnerships between the public and private sector and improve the capacity of local communities to employ innovative solutions for regional and local economic development, improve communal infrastructure, introduce new approaches for attracting investment, develop local infrastructure and stimulate social enterprises.

Social Entrepreneurship Development Project Project works to create a favorable environment for the development of the social enterprise sector in Ukraine as well as to provide those who want to run a social enterprise with the legal, financial and consulting support they need. Project partners considering a social enterprise as a revenue-generating business should be those whose surpluses are reinvested for social or charitable objectives in the community.

Journalists met with active social enterprises in Ukraine and Romania to see how they work. In addition, a promotional film featuring successful social enterprises in Ukraine was produced and is being disseminated through different channels, including social networks where the project also has a presence. Partners have also started to offer access to financing in the form of loans and grants for social enterprises to help them develop the commercial and social components of their business.

IN 2012: ORGANIZATIONS WHICH RECEIVED SUPPORT: The project was introduced to two new regions, Sevastopol and Mykolayiv, where, with support from RUSAL and the Foundation for Social and Economic Development of Sevastopol, an intensive training campaign for those interested in launching a social enterprise has started. Trainers were those who had passed through the project’s training program earlier in 2011, while the best business plans of those who completed the training seminars will receive funding. What’s more, the training program initiated by local activists who were previously trained by EEF was also held in Zhytomyr and Boyarka, and now more than 100 individuals are equipped with the knowledge of how to start a social enterprise. To promote the idea of social entrepreneurship and project activities, a press tour for national media was organized.

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Lviv NGO Oselia - UAH 57,915. Novoazovsk EcoSvit NGO of People with Dissabilites - UAH 99,244. Socium-ХХІ Youth Center - UAH 117,680. Funds were provided for the development of social enterprises, the purchase of necessary equipment and supplies, and promotion of the idea of social entrepreneurship throughout Ukraine. In addition, Socium-ХХІ will work to launch a nationwide resource center, develop and maintain a social entrepreneur’s database, develop of a web portal www.socialbusiness.in.ua and coordinate public events, in particular the National Forum for Social Entrepreneurs.

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Public Private Partnership: New Opportunities for Economic Growth Project EEF is a partner of the USAID Public Private Partnership Program which is implemented by FHI Development 360 LLC. The program offers assistance to the Ukrainian government in its efforts to develop a favorable legislative environment for PPP, providing expertise and consultation to responsible government institutions, conducting educational programs in target cities and assisting in all stages of design and implementation of PPP projects. EEF as a program partner focuses on providing training seminars and raising awareness on the PPP mechanism. IN 2012, EEF IN COOPERATION WITH PPP PROGRAM EXPERTS: Conducted eight training seminars in Lviv, Vinnytsia, IvanoFrankivsk, Simferopol, Zaporizhya, the Autonomous Republic of Crimea, Dnipropetrovsk and Kyiv. Participants, including more than 250 representatives of local municipalities, the private sector, NGOs and the media where taught about PPP and mechanisms of

funding them, cooperation between state and private partners, and legislative issues of implementing of PPP in Ukraine. Organized a study tour to Saky (AR Crimea) for representatives of local municipalities from AR Crimea, Vinnytsia, Ivano-Frankivsk, Kyiv, Lviv, Ternopil, Pavlohrad, Pershotravensk and Ternivka (Dnipropetrovsk oblast) to share best practices of launching partnerships between business and local authorities in the sphere of waste management. EEF conducted a press-tour for 10 representatives of national and local media. Journalists had an opportunity to participate in PPP Day in Yalta where they met more than 300 mayors, international and local experts, learned about the most relevant international experiences and best Ukrainian practices in implementing PPP in different spheres. They also had an opportunity to visit Gagarin Park in Simferopol where local officials presented their ideas on turning the park into modern entertainment center using PPP.

Raising Public Awareness on Best International CSR Standards and Sharing Best Practices The main project objective is to raise awareness and inform the public about CSR and corporate philanthropy best practices. The project also builds partnerships between business, society and government to jointly solve the most pressing social and economic problems facing Ukrainian today. IN 2012: 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, presenting the best Ukrainian practices in CSR, international standards, non-financial reporting, new initiatives in this area and more. For a third year in a row EEF and the UN Global Compact Network in Ukraine, the European Business Association, the American Chamber of Commerce in Ukraine and the Ukrainian Philanthropists Forum have run its national Corporate Volunteering in Ukraine contest.

This year EEF received nearly 20 applications. An evaluation was conducted according to a methodology developed by British organization Business in the Community, a known leader in CSR and corporate volunteering. The contest was also aimed at promoting volunteering among Ukrainian companies and included nominations in the categories of Life Quality Improvement, Education, Culture, the Environment, Joint Initiatives Involving Businesses and NGOs, and Best Volunteer. THE WINNERS BY CATEGORY WERE AS FOLLOWS: Life Quality Improvement: Metinvest and the Mykolayiv Alumina Refinery. Education: Ernst & Young Ukraine. Culture: Coca-Cola Beverages. The Environment: Prykarpattyaoblenergo. Joint Initiatives Involving Businesses and NGOs: PwC (winner among large businesses) and Bud-Bud from Lubny Poltava oblast (winner among small businesses). BEST CORPORATE VOLUNTEERS: 1st place – Igor Dzhebyan, Kyivstar. 2nd place - Yuliya Stepanchenko and Lyudmila Remsha, KraftFoods Ukraine. 3rd place - Anna Repkina-Van Velen, DHL Express Ukraine. Programs presented by companies brightly demonstrated how businesses can contribute their company’s expertise and the experience, energy, skills and time of company employees to solve various issues. Corporate volunteers help orphans and vulnerable youth better integrate into society and feel confident about their future, plus they offer schoolchildren and students new practical skills and unique knowledge which are not taught in schools and universities. Companies can be very active in protecting nature and preserving historical and cultural spaces.

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Social Development Program aims to improve the quality of life for underprivileged groups of the population, including people with disabilities, the elderly and vulnerable youth by providing access to quality services and working to protect their rights.

Community Centers for Senior Citizens This project creates opportunities for social engagement among seniors and provides venues for their pastimes/social activities. Specifically these centers enable seniors to gather to sing, dance, enjoy various hobbies and spend time with each other—even gain new skills through specific interest groups. The project also helps improve the standard of living of local seniors by offering various services, including laundry and hairdressing, plus medical, psychological and legal consultations. In total, EEF has invested in the creation of 14 such community centers for seniors across Ukraine.

IN 2012 THE PROJECT HELPED: To establish two new centers in Crimea (in Rozdolne and Bakhchysarai). In addition, local partner from Bakhchysarai established two affiliates in Vilino and Kuybyshevo. These centers now provide 15 hobby groups, including a computer club and several new medical services.

ORGANIZATIONS WHICH RECEIVED SUPPORT: Bakhchysaray District Council of Veterans – UAH 60,000. Rozdolne District Council of Veterans – UAH 100,000.

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Everyone Has the Right to Work

This project

empowers vulnerable youth to better integrate into society by providing them with vocational training, helping them access educational and employment opportunities, and by improving social services.

In 2012, EEF implemented the project in Zhytomyr oblast together with local partners. In particular, a grant totaling UAH 329,000 was provided to the Zhytomyr Association of Social Workers, while other activities were implemented by EEF itself. EEF worked with the Center for Professional and Technical Education from Zhytomyr, the Berdychiv Boarding School and Vocational School #12. Youth and people who work with youth on a daily basis received intensive vocational training and were provided with information on youth 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 orphans and youth with disabilities. IN 2012, THE PROJECT HELPED: More than 60 teachers, social workers and mentors completed seven days of training modules on life skills, financial literacy and IT technologies in teaching English as a second language. More than 80 young people completed a seven-day training program

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on life skills and financial literacy. Besides this, they actively participated in employment fairs and excursions to enterprises of potential employers, in particular a Berdychiv clothes factory, the local employment center, bank offices, bakeries, etc. To equip the computer class in Berdychiv Vocational School #12, an Internet connection was created for a Berdychiv orphanage as well. ÂŤCHAMPIONSHIP FOR THE FUTUREÂť AMONG ORPHANAGES OF ZHYTOMYR OBLAST METRO Cash & Carry Ukraine and EEF held a mini-football championship for orphans from four state-run boarding schools in Zhytomyr region. Funding of nearly UAH 63,000 for the championship was donated by METRO customers during a national fundraising campaign, which lasted from 16 May until 12 June 2012. The company also added its own donations to the money collected. In addition, competition organizers allocated part of the money to provide sports equipment for local boarding schools.

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Ecology and the Environment Program stimulates innovative and participatory solutions for the introduction of environmentally friendly practices among Ukrainian communities, targeting energy efficiency, renewable energy and effective waste management.

Partnerships for Clean Energy Project The goal of the 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 Partnerships for Cleaner Energy project is being implemented by EEF in partnership with the Dnipropetrovsk Oblast Council and the Dnipropetrovsk Oblast State Administration with funding from USAID and DTEK. IN 2012: 12 demonstration projects were selected, several of which are ongoing, while others will conclude in 2013. Projects that are being implemented on state-funded structures such as schools, kindergartens and hospitals are aimed at demonstrating the benefits on energy efficiency for public and local budgets. This year in the villages of Volodymyrivka, Ordzhonikidze, Buzivka, Loshkarivka, Shevchenkivske, Ternivka and towns of Pershotravensk, Pavlohrad and Verkhniodniprovsk, new equipment that will help to produce hot water supply and heating with the help of biomass, to provide energy efficiency street lighting using solar energy and other energy-saving technologies will be installed. Approximately 30 applications were entered in a journalism contest called Clean Energy – The Choice of the Future, which aims to raise

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awareness about alternative energy sources and implementing energy-saving technologies. The winners of the contest included Gennadiy Senkevich of the Dnipropetrovsk-based newspaper Zoria, Kateryna Vasylyeva of the Sodruzhestvo TV and radio company, and the regional newspaper Bereg Nadezhdy from Synelnykovo district. A media tour for more than 20 regional and five national journalists helped them to learn how different energy-saving technologies work in industry and for the public. In particular they saw how solar panels heat the swimming pool at Pavlohrad Kindergarten #47, how methane gas from coal mines is now used to heat the boilers of Shaft #2 of DTEK’s Pavlohrad Coal’s Stepna mine. More than 2,000 people attended the 12th-annual Energoprom national expo, which aims to promote modern energy-efficiency technologies and help establish cooperation between local authorities, businesses, other potential energy users and producers of energy efficiency technologies. More than 250 local authorities and businesses responsible for helping champion the introduction of energy-efficiency measures attended training seminars on how to implement energy-saving projects, how to use funding mechanisms for carbon capture initiatives and how to attract funding for energy efficiency pilot projects.

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Municipal Partnerships for Better Energy Use EEF has already invested more than UAH 4 mln in 29 projects in 14 oblasts of Ukraine that support partnerships between municipal governments and community groups working to improve energy efficiency, install alternative energy technologies and share best practices in energy-saving. EEF raises public awareness of energysaving approaches among various stakeholders, installs energysaving 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.

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IN 2012, AS PART OF THE EEF AND SEVASTOPOL CITY STATE ADMINISTRATION JOINT PROGRAM ÂŤSUPPORTING RENEWABLE AND ALTERNATIVE ENERGYÂť THE PROJECT HELPED: To develop and introduce into the curriculum a course for schoolchildren of grades 6-7 and 9-10 on alternative sources of energy. To conduct an energy audit of 74 city kindergartens and to prepare technical documentation on solar panel installation. To conduct a huge information campaign on the benefits of solar energy usage. 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 install solar panels at educational establishment #5 in Sevastopol to provide hot water supply and establish specialized classroom to demonstrate how these new technologies work.

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Partnership for Energy Efficiency in Zelenodolsk

EEF and Zelenodolsk City Council are working to create a model of energy efficiency in this city with a population more than 15,000. The steps to increase energy efficiency include putting into place an energy management system, modernizing the municipal heating supply and raising awareness on energy-saving measures. The main components of the project include conducting energy audits of the municipal heating systems and social infrastructure, analyzing energy consumption by the city’s budget-funded infrastructure and installing automatic energy-monitoring software in the city. Based on these results, the project’s experts will develop an energy efficiency plan for Zelenodolsk. In addition, more than 600 meters of the city’s heating mainline will be replaced, and an automatic temperature control system at the city heat exchange station will be introduced. The project was also accompanied by an information campaign to promote individual heat control among city households. IN 2012: EEF conducted an energy audit of all communal infrastructure buildings (kindergartens, schools, the hospital, the cultural center and the library) and did a strategic diagnostics of the costs to cover energy consumption by the city’s budget-funded infrastructure.

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A diagnostics of the municipal heating supply system was conducted and recommendations were provided to Zelenodolsk City Council. Students and teachers from Apostol district lyceum became active participants of the project. A young team was involved in conducting energy audits, while special promotional troupes promoted the importance of energy-saving measures during theatre performances. «OPEN DOOR» MECHANISM With a grant of UAH 148,422 from EEF, the Rivne-based “Eco Club” NGO worked to develop and test mechanisms for the collection and utilization of mercury-containing energy-efficiency lamps and to support environmental awareness among local residents, businesses and local authorities in Rivne. A multi-sector working group consisting of local authorities, NGOs and the media piloted the mechanism developed, and more than 200,000 local residents learned about how to safely use and utilize energy-efficient lamps and batteries thanks to a public information campaign. Collections of used lamps organized during the project resulted in 11 kg of batteries and 453 lamps gathered from local citizens.

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Effective Governance and Civil Society Development Program EEF helps to improve the accountability and transparency of local governance in order to ensure sustainable community development and provide effective services by assisting local governments in designing public policies, implementing local reforms, introducing e-governance and increasing the participation of civil society organizations in the public policymaking process.

Ukraine National Initiatives to Enhance Reforms (UNITER) In 2012, EEF once again joined forces with the USAID-funded UNITER project and the International Renaissance Foundation to support the development of democratic governance in Ukraine. While during previous years partners supported projects from separate grassroots and national-level organizations, this year the idea was to support coalitions of civil society organizations (CSOs.) The goal of the initiative was to unite the efforts of local- and national-level Ukrainian CSOs in advocating citizen interests and driving national reforms. A total of 26 organizations united in five coalitions and received support totaling UAH 2,939,425 (EEF provided support for 3 coalitions consisting of 16 organizations and IRF supported 2 coalitions consisting of 10 organizations). THE WINNING COALITIONS RECEIVED GRANTS TO IMPLEMENT THE FOLLOWING ACTIVITIES: Agency for Legislative Initiatives (coalition leader). The grantee led efforts to ensure the participation of local communities in local level decision-making by advocating for the institute of a local referendum and expanding the role of communities in local governance issues.

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COALITION’S MEMBERS: Center for Political Analysis and Electoral Consulting, Lutsk city NGO; Polissya Foundation for Independent and Regional Research; «Committee of Voters of Ukraine», Donetsk Region Organization; «Committee of Voters of Ukraine», Kherson Region Organization. All-Ukrainian NGO «Association for Community Selforganization Assistance» (coalition leader). The goal of the project was to develop and advocate national and local level regulations to ensure public control of self-organized citizens’ bodies over the utilities sector. COALITION’S MEMBERS: «Unity for the Future» Zaporizhzhya Charitable Foundation; «Our Law» Information and Law Center; «Luhansk Region Civil Initiative» NGO; «Mykolayiv City Development Foundation»; Community organization «Committee of «Rusanivka» microdistrict» Kyiv.

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National NGO Coalition for People with Intellectual Disabilities. Ukraine is currently undergoing reforms in the public health system and the first stage of reform implementation includes piloting of the proposed changes in Vinnytsia, Dnipropetrovsk and Donetsk oblasts and in Kyiv. The proposed reforms to the healthcare system add family doctors as the first and main medical focal point for all citizens, including people with mental disabilities. The grantee and local partners conducted an analysis as to how the reforms would affect people with mental disabilities in the abovementioned oblasts of Ukraine, plus monitored the situation in Kyiv. During the project the Association of Family Doctors of Kyiv put its main focus on the issue of family doctors’ lack of capacity to work with people with mental disabilities. COALITION’S MEMBERS: «Angel of Childhood», Dnipropetrovsk Region Charitable Foundation; «Nadia», Vinnytsya city NGO for Children with Intellectual Disabilities Assistance; «Believe in Yourself» City Club, Donetsk-based NGO. Ahead of Ukraine’s 2012 parliamentary elections, the project entitled «Parliamentary Elections in Ukraine 2012: Support for Civil Initiatives» supported 16 project applications with UAH 1,354,943 provided to local NGOs to help enhancing transparent and fair parliamentary elections in different regions of Ukraine. Among the major activities of the projects were voter education campaigns, providing Ukrainian citizens with access to balanced information on the election campaign participants and the election process, raising awareness among voters on new legislation regulating parliamentary elections and much more. ORGANIZATIONS WHICH RECEIVED SUPPORT: Donetsk oblast: Donetsk Youth Debate Center, «Every Voice is Valuable» project;

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Vinnytsa oblast: Vinnytsa «Parostok» City Organization for the Social Development of Unprotected Youth Categories, «Equal Opportunities for People with Disabilities during Elections» project; Zakarpattya oblast: Center for Civic initiatives Charitable Foundation, «Civic Interaction» project; Ternopil oblast: «Nivroku» Creative Youth Organization, «Youth Involvement for Active Participation in the Elections and Combatting Violations during Elections in Ternopil Oblast» project; Volyn oblast: Volyn Local Development Foundation, «Enhance Free and Fair Elections in Volyn Oblast project» — part of the «Filter the Verkhovna Rada» campaign by the civic movement «Chesno» («Fair»); Chernihiv oblast: «Initiative» Education Center, Chernihiv City Youth NGO, «Parliamentary Elections as an Opportunity to Solve Local Problems of Chernihiv Oblast» project; Rivne oblast: Committee of Voters of Ukraine, Rivne Oblast branch, «Voters’ Legal Awareness – the Pre-condition of One’s Conscious Choice» project; Chernivtsi oblast: Bukovynska Partnership Agency, «Grand Jury: Voters vs. Candidates» project; Odesa oblast: Committee of Voters of Ukraine, Odesa oblast organization of All-Ukrainian NGO, «From Fair Elections to Democratization of Society» project; Ivano-Frankivsk oblast: Center for Political Studies, «A Wealth of Choice among People from Prykarpattya Oblast» project; Luhansk oblast: Luhansk «Public Platform» Regional Organization, «Select a Fair Government» project; Sumy oblast: Students’ Brotherhood of Sumy Region Youth NGO, «Chesno» project; Lviv oblast: Western Ukrainian Agency of Regional Development, «Filter the Verkhovna Rada» project; Chernivtsi oblast: Youth Initiatives of Storozhynets Youth NGO, «Bukovyna Citizen of the 21st Century» project; Mykolayiv: Youth Information Agency Young Journalists’ NGO, «Filter the Verkhovna Rada» project; Kherson oblast: Kherson Oblast Foundation for Mercy and Health, «The Power of Voices – the Power of Democracy» project.

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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 their work. Elected officials use newly established online resources as a channel to inform citizens about what they do, web-resources also allow citizens to comment or provide recommendations on how to improve the work of local councils and deputies. IN 2012 THE PROJECT HELPED: To create a «Your Local Representative» website www.dep.org.ua in eight oblasts where detailed information on the composition of 87 local pilot councils and other important information was provided. In total, 4,671 special pages on local deputies were created. These pages summarize information on each deputy, including a personal biography, political views, contact information and working hours. The final publication provides step-by-step guidelines on how to create an effective public tool for cooperating with local officials by means of this website. Approximately 210,000 users have visited these websites. To accompany the sites, special pages on social networks where created and have united around 1,000 active users. To discuss the future and challenges of e-democracy during a final conference entitled «E-democracy in Ukrainian Oblasts» in May 2012. The conference, which was attended by approximately

80 representatives of local and national government officials, representatives of NGOs and the media helped to discuss best international, national and local e-democracy practices, mechanisms of interaction between governments and citizens, and summarized project results. To create a Monitoring Group, a nationwide coalition of civic unions that will conduct public monitoring campaigns and help control the activities of elected officials. Coalition which is looking for new partners has already united 13 organizations. To conduct a series of training seminars in various oblasts focusing on the introduction of e-democracy, tools to improve interaction between public and local officials, the use of social media, etc. ORGANIZATIONS WHICH RECEIVED SUPPORT: Odesa oblast branch of All-Ukrainian public organization «Committee of voters of Ukraine». Volyn oblast - Center for Political Analysis and Electoral Consulting. Chernihiv - 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.

Special projects EEF constantly looks for innovative formats as regards activities and new partners that share the foundation’s values. Developing a road map for Ukraine remains one of our major priorities. In order to create a new platform for discussions and develop recommendations from world-renowned experts, Ukrainian policy makers and business leaders, EEF in partnership with the English-language Kyiv Post newspaper launched a series of conferences. On 27 November, project partners conducted an interesting and bright fall event referred to as «The Tiger Conference». President of Georgia Mikhail Saakashvili opened the conference and was joined by Republic of Moldova Deputy Prime Minister Mihai Moldovanu and Ukrainian Minister of Economic Development and Trade Petro Poroshenko, plus CEOs, experts and politicians from Ukraine, the EU, the US and other countries that gathered to consider realistic strategies for national progress and suggest pragmatic actions needed to move Ukraine forward. The conference, officially entitled, «Ukraine: Will the Spleeping Tiger Awaken?» provided insights at this critical juncture of Ukraine’s history by bringing together more than 250 participants and a prominent lineup of panelists combined with the selfless contributions of dozens of people from Kyiv, Kuala Lumpur, Moscow, Chisinau, Tbilisi and Washington, D.C. The Kyiv Post/EEF conference turned into a series of discussions focusing on financial and corporate governance, the promise of agriculture in Ukraine, hopes for the energy sector and the booming Internet technology outsourcing business. Real practitioners that are the leaders in their sectors presented opinions and ideas on how to move forward to executives of international and Ukrainian companies, business owners, plus local, regional and national government officials and other interested observers.

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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 public services for citizens through the introduction of state-of the-art IT technologies into everyday activities and various administrative procedures. IN 2012, THE PROJECT IN COOPERATION WITH DNIPROPETROVSK OBLAST COUNCIL HELPED: To ensure that permits for citizens and entrepreneurs are issued in time by creating a virtual «Open Government» center which was developed as a part of the project and which decreased the time it normally takes to issue such permits. Currently most of such documents are issued before their declared deadline. In addition, for citizens who want to get permits, registration on the website of the center’s «Single Window» licensing procedures page is free. Today, residents of Dnipropetrovsk oblast can get permits

from 17 regional and eight local public services. The most popular public services remain those provided by the State Department of Environmental Protection, Sanitary and Epidemiological Service. A total of 25 touch information kiosks were established in government buildings of 22 districts of Dnipropetrovsk oblast. The information menu integrates electronic resources of local municipalities and the «Open Government» virtual e-services office, which allows people to get all the necessary information on administrative services, the progress of their application and to receive e-consultations. In addition, the virtual office unites 35 centers that provide permits, plus 19 permit issuing offices in the oblast. Now citizens have access to full information on all services provided in the oblast, have an opportunity to receive information about the progress of their application and receive advice on any permit center.

Capacity Building One EEF priority is to ensure the sustainability of the project after funding ends and further the development of the local community. For these reasons the foundation pays considerable attention to developing the capacities of local partners. EEF involves them as local experts in other projects, shares best practices, provides resources, expertise and consults them on further development strategies. We are extremely happy when they succeed, and one of their latest successes is that among the winners of a contest conducted by the

EAST EUROPE FOUNDATION.

ANNUAL REPORT.

Council of Europe’s Strengthening the Capacity of Local Authorities in Ukraine program, there were the Zelenodolsk and Pavlohrad City Councils. After receiving funding through EEF projects, these local councils have continued to introduce energy efficiency technologies by attracting funding from local budgets and additional sources. We are very proud they did not stop after presenting their final project results and are continuing to work in this area using project experience and knowledge gained through EEF.

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FINANCIALS

STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2012 EEF REVENUES BY FUNDER, 2012

EEF EXPENSES BY FUNCTION, 2012

TOTAL REVENUES $1 437 954 (100,00%)

TOTAL EXPENDITURES $1 530 947 (100,00%)

Private Foundations $402 395

27,98%

US Government $ 294 799 20,50% International Organizations $21 269 1,48%

14,70% European Governments $490 902

34,14%

Administrative Overhead $207 936 Grants $498 464

13,58%

32,56%

Individual Donations $17 153 1,19%

53,86%

Private Companies $211 436 Programs and Program Support $824 547

INDEPENDENT AUDITORS’ REPORT

STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2012

ASSETS CASH IN BANK

$586,476

GRANTS AND CONTRIBUTIONS RECEIVABLE PREPAID EXPENSES

$1,954,049 $35,425

TOTAL ASSETS

$2,575,950

LIABILITIES AND NET ASSETS CURRENT LIABILITIES ACCOUNTS PAYABLE

$ 2,710

GRANTS PAYABLE

$28,924

ACCRUED SALARIES AND RELATED BENEFITS

$22,856

TOTAL CURRENT LIABILITIES

$54,490

NET ASSETS UNRESTRICTED

18

$158,745

TEMPORARILY RESTRICTED

$2,362,715

TOTAL NET ASSETS

$2,521,460

TOTAL LIABILITIES AND NET ASSETS

$2,575,950

ANNUAL REPORT.

EAST EUROPE FOUNDATION.


DONORS AND PARTNERS Ç̲ÑÒ

OUR SPONSORS IN 2012 DONORS

UKRAINIAN GOVERNMENT PARTNERSHIPS

American Chamber of Commerce British Council C.H.Mott Foundation Council of Europe Donbass Fuel-Energy Company (DTEK) Embassy of Finland in Ukraine ERSTE Foundation Eurasia Foundation European Union FHI Development 360 LLC JT International Metro Cash & Carry Ukraine OSCE Project Coordinator in Ukraine Pact, Inc. Philip Morris Ukraine Royal Norwegian Embassy in Ukraine Unicredit Foundation UN Democracy Fund U.S. Agency for International Development (USAID) World Childhood Foundation

State Service for Youth and Sports of Ukraine Ministry of Social Policy of AR Crimea Zhytomyr Oblast Sate Administration Main Department of Education and Science Kharkiv Oblast State Administration Main Department of Labor and Social Protection Dnipropetrovsk Oblast Council Dnipropetrovsk Oblast State Administration Lviv Oblast Council Sevastopol City State Administration Kharkiv District State Administration Yevpatoria City Council Odesa City Council Lutsk City Council Tomakivka District Council (Dnipropetrovsk Oblast) Pavlograd City Council Zelenodolsk City Council (Dnipropetrovsk Oblast) Shevshenkivske Village Council Verkhniodniprovsk City Council (Dnipropetrovsk Oblast) Rohan Village Council Devladove Village Council (Dnipropetrovsk Oblast) Volodymyrivka Village Council (Dnipropetrovsk Oblast) Ordzhonikidze Village Council (Dnipropetrovsk Oblast) Loshkarivka Village Council (Dnipropetrovsk Oblast)

PARTNERS

British Council Business in the Community Civic Campaign New Citizen Committee of Voters of Ukraine Cherkasy branch Erste Bank Expert Ukraine Magazine Foundation for Socio-Economic Development of Sevastopol International Renaissance Foundation Internews Ukraine John Smith Trust Microsoft Ukraine PricewaterhouseCoopers Ukraine New Eurasia Foundation (Russia) East Europe Foundation Moldova U.S.-Ukraine Business Council

EAST EUROPE FOUNDATION.

ANNUAL REPORT.

MEMBERSHIPS IN COALITIONS, ASSOCIATIONS AND NETWORKS

American Chamber of Commerce Business in the Community Global Partnership Network Eurasia Foundation Network European Business Association (EBA) Ukrainian Philanthropists Forum UN Global Compact Network in Ukraine

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EAST EUROPE FOUNDATION

EAST EUROPE FOUNDATION 55 Velyka Vasylkivska, 3rd floor Kyiv 03680, Ukraine

The Eurasia Foundation Network promotes stability and prosperity throughout the Eurasia region by supporting institutions that advance open, pluralistic and entrepreneurial societies. Our programs harness the energy and aspirations of ordinary of ordinary citizens seeking to improve the schools, business and government in the communities where they live and work. We encourage cooperation across sectors and borders to address problems of mutual concern. As a network of five partner foundations rooted in local communities yet linked to international donor and experts, the Eurasia Foundation Network channels resources and expertise to the region and connects its citizens to the wider world.


East Europe Foundation Annual Report-2012