Italy’s tax donation scheme, 5 per mille, has raised more than €4 billion for good causes over the past ten years.
The scheme has been widely hailed a success, with millions of supporters donating in this way, raising €400 million annually. But fundraising experts are also calling for improvements to the scheme, which would enable charities to build longer-term relationships with their supporters.
Andrea Caracciolo, Consultant at Scuola di Roma fundraising.it and Board member of the Italian Fundraising Association (ASSIF)*, said:
“The 5% donation scheme has proved an important fundraising method, but with money typically taking two years to reach charities and no information given about those donors, there is little opportunity for charities to develop relationships with their supporters.
“It is vital that this process is improved, with funds received during the same year and the names of donors shared with the relevant charities. This would not only help charities develop supporter relationships, but to determine the impact of their fundraising activities.”
5 per mille enables Italian taxpayers to designate a percentage of their tax to a nonprofit organisation of their choice. They do this simply by inserting the fiscal code of the organisation in the relevant section of their tax return form. Charitable organisations must be registered with the Revenue Service to benefit from this income stream.
*Andrea Caracciolo is also Vice President of EFA.