One in three Italian nonprofits unclear on Third Sector reform changes

With Italy undergoing a major reform of its nonprofit legislation, a survey into the impact of the changes has found that around one in three nonprofits are either not up to date or don’t have an inaccurate understanding of the changes.

The reform includes 135 legislative acts, including rule changes, and new tax concessions and financing opportunities.

To understand the impact of the changes, the “Reform in Movement” survey, from Terzjus Observatory and Italia non profit with the involvement of ASSIF and other partners, questioned 1,671 third sector organisations, working mainly in the areas of personal services, cultural recreation and education, and education and training.

It found that 86% think the reform process is too long, while not everyone understands the changes, which include the introduction of a nonprofit register RUNTS and a new reporting tool, the Social Report, both of which are designed to improve the sector’s transparency.

Also being introduced is a new tax system, including changes to the 5×1000 rule, and legislation that will enable nonprofits to obtain and renovate unused public properties. For the first time too, third sector organisations, social enterprises and fundraisers are being given legal definitions, with the aim of bringing greater recognition of their role and work.

However, the study found that:

– Just under 1 in 3 are unaware of the opportunities RUNTS will present in terms of making all essential data from organisations accessible to all

– 40% are not aware of the newly introduced possibility of being able to support activities other than those of general interest

– Only 1 in 4 are aware that the reform has also affected 5×1000 income tax

– 1 in 4 organisations do not know about new tax benefits for donations introduced by the reform, while more than half of those who are aware have not yet shared the news properly with donors

– There is a lack of understanding over which organisations the new Social Report applies to, with it perceived as an obligation by just under 50% while 17% are unsure if it affects them.

– Few organisations are ready to adopt the new budget formats

– There is a lack of understanding over which organisations the new Social Report applies to, with it perceived as an obligation by just under 50% while 17% are unsure if it affects them.

The full report can be downloaded from Italia Non Profit’s site.

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