PROBLEMATIC ASPECTS OF ENSURING THE TRANSPARENCY OF THE PROCUREMENT MECHANISM IN NON-PROFIT CIVIC ORGANIZATIONS IN UKRAINE

Abstract

Introduction. Non-governmental organizations (NGOs) in Ukraine play a critical role in humanitarian and social initiatives. However, their procurement processes lack standardized mechanisms, which creates significant risks of corruption, inefficiency, and mistrust from international donors. Current legislation does not adequately regulate NGO procurement, leaving them reliant on internal policies or donor agreements. Such inconsistencies hinder their ability to operate transparently and maintain accountability in public procurement. Purpose. The study aims to justify approaches for developing unified procurement policies tailored for Ukrainian NGOs and charitable foundations. These policies should align with international standards and ensure transparency, efficiency, and accountability, thereby improving collaboration with international donors. Methods. The research employs a systematic analysis of procurement mechanisms in Ukrainian NGOs and examines international best practices, such as the United Nations Global Marketplace (UNGM) and procurement systems in the USA. The study also incorporates a review of digital tools like Prozorro and explores the application of artificial intelligence (AI) in optimizing procurement workflows. Field data from Ukrainian tender platforms and monitoring of NGO procurement practices were used to identify common violations and challenges. Results. The study identifies major issues in NGO procurement processes, including discriminatory requirements for tender participants, improper use of tender platforms, and insufficient reporting practices. NGOs often fail to fully utilize digital procurement tools, and manual documentation processes overwhelm procurement specialists, leading to procedural errors. The research highlights the potential of platforms like Prozorro and AI-based solutions to enhance transparency and reduce administrative burdens. Furthermore, the absence of legally binding procurement standards for NGOs exacerbates these challenges. The findings support the need for a unified procurement mechanism to standardize procedures, mitigate risks, and enhance trust in NGOs. Conclusion. Transparent procurement processes are essential for ensuring the effective use of donor funds and reducing corruption risks in NGOs. The study recommends the development of a unified procurement mechanism that incorporates international standards, leverages digital technologies, and adapts to local NGO contexts. Such reforms would enhance the reputation of Ukrainian NGOs, strengthen partnerships with international donors, and enable better resource allocation for humanitarian projects. Future research should focus on integrating these mechanisms into Ukrainian legislation and providing training programs for NGO procurement specialists.