The scandal involving Nazariy Husakov, who collected funds allegedly for his own treatment, and then found himself at the center of a high-profile fraud accusation, once again forced Ukrainian society to ponder: to whom do we actually donate, and how can we verify that our money truly helps those who need it?
The police have already opened two criminal proceedings, conducted searches in Lviv and Kyiv, and the Minister of Internal Affairs reported to the president on the discovered facts that may indicate fraud. UNN spoke with Lolita Kuzina, head of the Charity Exchange "DobroDiy," founded by Olena and Yulia Sosiedka, about why such stories undermine trust in the entire field of charity and how to avoid falling for fake fundraisers. Since 2022, philanthropists have donated over UAH 130 million to help the army, hospitals, and seriously ill children, and our interlocutor knows exactly what honest charity looks like during a full-scale war.
- Lolita, what was Nazariy Husakov's main mistake?
Nazariy's main mistake lies in mixing personal finances with funds from charitable collections. This is a common mistake among many families of our wards. For some reason, they believe that the funds collected for assistance become theirs and can be disposed of at their own discretion. But charitable contributions always have a specific purpose: purchasing medicines, paying for rehabilitation services, and so on. This is important! Mixing personal and charitable funds creates huge risks and can lead to a violation of the targeted use of money. Compliance with the obligation to use funds for their intended purpose is not only a legal requirement but also an ethical responsibility to those who provide assistance.
- Why wouldn't a similar situation have arisen if the fundraiser had been conducted through a charitable foundation?
If fundraising is organized through a charitable foundation, there is a clear system of transparency, accountability, and control. Charitable organizations have defined procedures for collecting funds, verifying expenses, and providing regular reports. This includes accounting control, auditing, and clear reports for donors, which significantly reduces the risks of fraud. In the case of Nazariy Husakov, the absence of these procedures led to doubts and suspicions, as there was no clear information on how and for what purpose the collected funds were spent.
- There is still a widespread opinion that foundations "take a percentage for administrative expenses," and that it is better to make a direct transfer to a card. How would you comment on this?
The main advantage of an official charitable organization is the presence of a team of experts who bear full responsibility for receiving and distributing funds. They look for the most appropriate and rational ways to use funds to avoid duplication of public procurement or services already provided for by medical guarantee programs. And this is part of professionalism, so these people have the right to receive decent payment for their work. This is an international practice that is a standard worldwide. But for some reason, in Ukraine, there is still an opinion that employees of charitable foundations should work without financial remuneration.
- What mandatory reporting elements should be present when organizing a public fundraiser that are of most interest to people who donate?
Key reporting elements when organizing a public collection are:
- Collection goal. That is, a clear definition of what exact purpose the collected funds will be spent on.
- Regular reports. They should be at least monthly or after each stage of collection.
- Financial documents: receipts, acts of work performed, signed agreements.
- Public updates. Transparent publications about the use of funds, including videos and photos, will allow donors to see the real result of their help.
All this enables those who donate to be confident that their contributions are indeed used for their intended purpose. People want to see that their money is working for real change, and not dissolving without accountability.
- If we are talking about regular donors, especially international partners, what do they primarily expect from accountability?
International donors usually expect detailed financial reporting. They need clear amounts, what goes into every dollar or euro.
In addition, they need to provide performance reports: what exactly has been achieved thanks to their support.
It is also important to conduct an independent audit. For example, foreign donors often require confirmation that expenses were in accordance with the stated purpose. They want to be sure that their funds are being used effectively, so transparency and professionalism in reporting are key factors.
- How can philanthropists protect themselves from fraud?
First of all, we need to develop financial literacy in society. Many people join fundraisers due to an emotional call, but in such a state, they become vulnerable. Do not forget about emotional intelligence. Pay attention to the reputation of the fundraiser organizers, the presence of official documents confirming the reality of the need, and transparency in the use of funds. Transparency must be a priority. The money we transfer for personal fundraisers is not an investment or a contract, it is a gift with all the risks.
First, you need to pay attention to the absence of an official organization. A charity fundraiser without data on who is officially conducting it may be a signal of a lack of control.
If the fundraiser organizer does not provide clear and transparent expense reports, this may be grounds for doubt.
In addition, if a fundraiser promises overly quick or unrealistic results, this could be a sign of fraud.
- Do we understand correctly that it is better to support only fundraisers from organizations?
No, and again, no! We live in realities where the needs of seriously ill people are not fully covered, despite the joint efforts of the state, charitable organizations, and volunteers. People are often forced to conduct their own fundraising, as state programs do not cover all needs. It is important that such fundraisers have a clear goal, transparency, and accountability. It is also important to distinguish personal funds from funds from charitable collections.
- Has the scandal with Nazariy Husakov affected the charitable sector as a whole?
Undoubtedly, such a situation has a negative impact on the charitable sector. Every such case diminishes trust in charitable initiatives, even if the majority of fundraisers are honest. This emphasizes the importance of implementing control and accountability mechanisms in all collections, so as not to call into question the very essence of charity.
- How should society react to suspicions of fraud during a fundraiser for treatment?
Suspicions of fraud need to be verified. Society must be prepared to ask questions to fundraiser organizers and demand reports. In case of suspicions, one should contact the competent authorities to check the activity. It is also important to support organizations that demonstrate transparency and willingness to account for their actions.
- How to find a balance between compassion for a seriously ill person and the need for transparency?
Compassion is important, but it should not be a reason to abandon transparency. It is important to be compassionate, but at the same time insist on clear reporting mechanisms. This helps protect both donors and the person in need of help from possible manipulations and fraud.
- What lessons should society learn from the case with Nazariy Husakov? Do you think new legislative or institutional changes are needed?
This case highlights the importance of transparency and accountability in all charitable fundraising. Society must learn to ask questions and demand confirmation of expenses when it comes to transferring funds. Legislative changes are needed to establish clear standards for fundraising, regulate the activities of charitable organizations, and ensure their transparency. We need more attention to the culture of charity and the introduction of best practices in fund management. And, as always, trust the professionals — we've already eaten the dog on this. (Smiles.) By the way, the DobroDiy Charity Exchange is included in the prestigious rating of "TOP 100+ Transparent Charitable Organizations of Ukraine", and I, as its head, have been recognized three times as Manager of the Year in the field of charity according to the National Competition "Charitable Ukraine". This confirms our effectiveness, transparency, and expertise.
Let's add
Since the beginning of the full-scale invasion, the "DobroDiy" Charity Exchange, founded by Olena and Yulia Sosiedka, has provided assistance amounting to almost UAH 132 million.
Of these, the following received:
- Defense Forces of Ukraine - UAH 93,061,500;
- medical institutions - UAH 8,533,000;
- seriously ill children and adolescents - UAH 16,440,000;
- humanitarian initiatives and social projects - UAH 13,944,000.
You can join the projects of the "DobroDiy" Charity Exchange via the link.