Topic: institutional development

Implementation period: Duration: January 2026 — August 2026

Client: ISAR Ednannia

Details: The explainer outlines the transition of cultural institutions to new organizational and legal forms, specifically detailing what changes it entails and what changes it does not guarantee. This document will help managers and employees of cultural institutions understand what will happen with management, property, funding, and personnel issues during the transformation, as well as what decisions still need to be made so that the change in legal form becomes part of genuine institutional reform.

Document contents:

• Law No. 4196: Repeal of the Commercial Code;

• what state or municipal non-profit company (NKT, a new legal form for state-owned or municipal-owned entities, Law No. 4196-IX) is;

• potential benefits of transitioning to a non-profit company;

• what does not change automatically;

• what risks may arise during the transition to an NKT;

• experience with institutional reforms in the fields of healthcare and education;

• international experience.

Author: Anna Klipkova, policy development expert at the PPV Economic Development Agency, with contributions from Volodymyr Vorobey, a key expert on the project “Support and advocacy a comprehensive reform of the network of cultural institutions” and head of the RES-POL project’s expert group.

This explainer is produced as part of the project “Support and advocacy a comprehensive reform of the network of cultural institutions”, implemented by the NGO “Regional Development Center” of the PPV Economic Development Agency with the support of the Askold and Dir Fund, implemented by ISAR Ednannia, funded by Norway and Sweden. 

The contents of this publication are the sole responsibility of NGO “Regional Development Center” of the PPV Economic Development Agency” and can in no way be taken to reflect the views the Government of Norway, the Government of Sweden and ISAR Ednannia.