Italian non-profit sector growth and reform

The Italian non-profit sector has experienced notable growth in both institutional presence and employment. According to Istat researchers, the number of active non-profit institutions reached 372,384 in 2024, a 0.5% increase from the previous year. Employment within the sector rose by 2.8%, totaling 938,152 employees. While associations constitute the majority of these institutions, foundations saw a significant growth of 8.6%. Geographically, while the sector remains concentrated in Northern and Central Italy, the most significant growth dynamics are occurring in the South and the Islands.

Parallel to this growth, the regulatory landscape for charitable donations is undergoing a transformation. The full implementation of the Third Sector reform by 2026 is expected to reshape how citizens and businesses support non-profit organizations. This reform aims to clarify requirements for utilizing tax benefits and governs how Third Sector Entities (ETS) support areas such as healthcare, environmental protection, and social inclusion.