The activities of non-governmental organizations in the procurement sphere and their impact on regional economic development

Introduction. In today’s world, civil society organizations play a crucial role in addressing social, environmental, and economic challenges. The tragic events that have unfolded in Ukraine since 2014, and the full-scale war since 2022, have presented the country’s government and society with new tasks and challenges. In response, international and local non-profit non-governmental organizations (NGOs), civil society organizations (CSOs), and charitable foundations (CFs) have been actively engaged. Their activities often focus on providing humanitarian aid through the procurement of goods and services. Through effective procurement management and transparency, international NGOs have become a vital link between donors and beneficiaries, gaining recognition as effective partners of Ukraine in the successful implementation of humanitarian projects. The aim of the article is to study the procurement activities of non-governmental organizations and assess their impact on regional economic development. Results. The analysis revealed that, despite the presence of an established legal framework for procurement procedures, most non-governmental organizations face significant corruption risks and a lack of public trust. This points to serious issues in the practical implementation of legal norms, particularly in terms of transparency, accountability, and financial oversight. The absence of proper monitoring, effective internal audit mechanisms, and public control creates favorable conditions for abuse and reduces the efficiency of programs and projects funded through procurement systems. To address these problems, it is necessary not only to improve the legal framework but also to strengthen the institutional capacity of organizations, increase transparency in their operations, and promote the adoption of ethical management standards. Conclusions. It has been proven that an effective and transparent procurement management mechanism in Ukrainian NGOs is critically important for the successful implementation of humanitarian projects, as well as for the development and recovery of regions. It was found that a well-functioning procurement system positively influences the organization’s image and attractiveness to donors, who tend to prefer clear, transparent, and open tender procedures. The integration of advanced technologies and the development of a unified procurement management system for all NGOs could minimize or even eliminate corruption risks, allowing for higher-quality project implementation and the protection of donor funds from misuse. Improving procurement management mechanisms in NGOs is an essential step toward ensuring the successful execution of humanitarian initiatives, reducing the risk of inefficient resource use, and strengthening donor and beneficiary trust. Keywords: procurement mechanism, non-profit humanitarian organizations, civil society organizations, charitable foundations, tender platforms, contractor, project, public procurement.

Authors

Publication Details

Journal
Ukrainian Journal of Applied Economics and Technology
Published
2025-05-07
DOI
https://doi.org/10.36887/2415-8453-2025-2-31
Primary Topic
Business and Economic Development
Type
article
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article

The activities of non-governmental organizations in the procurement sphere and their impact on regional economic development

Ihor Tsysar
Ukrainian Journal of Applied Economics and Technology
Business and Economic Development
article

The activities of non-governmental organizations in the procurement sphere and their impact on regional economic development

Ihor Tsysar
article en

Abstract

Introduction. In today’s world, civil society organizations play a crucial role in addressing social, environmental, and economic challenges. The tragic events that have unfolded in Ukraine since 2014, and the full-scale war since 2022, have presented the country’s government and society with new tasks and challenges. In response, international and local non-profit non-governmental organizations (NGOs), civil society organizations (CSOs), and charitable foundations (CFs) have been actively engaged. Their activities often focus on providing humanitarian aid through the procurement of goods and services. Through effective procurement management and transparency, international NGOs have become a vital link between donors and beneficiaries, gaining recognition as effective partners of Ukraine in the successful implementation of humanitarian projects. The aim of the article is to study the procurement activities of non-governmental organizations and assess their impact on regional economic development. Results. The analysis revealed that, despite the presence of an established legal framework for procurement procedures, most non-governmental organizations face significant corruption risks and a lack of public trust. This points to serious issues in the practical implementation of legal norms, particularly in terms of transparency, accountability, and financial oversight. The absence of proper monitoring, effective internal audit mechanisms, and public control creates favorable conditions for abuse and reduces the efficiency of programs and projects funded through procurement systems. To address these problems, it is necessary not only to improve the legal framework but also to strengthen the institutional capacity of organizations, increase transparency in their operations, and promote the adoption of ethical management standards. Conclusions. It has been proven that an effective and transparent procurement management mechanism in Ukrainian NGOs is critically important for the successful implementation of humanitarian projects, as well as for the development and recovery of regions. It was found that a well-functioning procurement system positively influences the organization’s image and attractiveness to donors, who tend to prefer clear, transparent, and open tender procedures. The integration of advanced technologies and the development of a unified procurement management system for all NGOs could minimize or even eliminate corruption risks, allowing for higher-quality project implementation and the protection of donor funds from misuse. Improving procurement management mechanisms in NGOs is an essential step toward ensuring the successful execution of humanitarian initiatives, reducing the risk of inefficient resource use, and strengthening donor and beneficiary trust. Keywords: procurement mechanism, non-profit humanitarian organizations, civil society organizations, charitable foundations, tender platforms, contractor, project, public procurement.

Ukrainian Journal of Applied Economics and TechnologyVol. 2025(2)
Openalex Percentile: Top 81%
Business and Economic Development
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