THE FUTURE OF WORK FOR THIRD SECTOR CONSULTANTS IN EUROPE CAN THE - - PowerPoint PPT Presentation

ROME AUTUMN CONGRESS THE FUTURE OF WORK FOR THIRD SECTOR CONSULTANTS IN EUROPE

“CAN THE VOLUNTARY SECTOR AND THE SOCIAL ECONOMY BE COHERENTLY INTEGRATED? NOTES AND SCENARIOS FROM THE ITALIAN THIRD SECTOR REFORM”

MARIA CRISTINA ANTONUCCI – NATIONAL RESEARCH COUNCIL – ITALY

THE THIRD SECTOR REFORM IN ITALY: THE PROCESS

GENERAL REFORM LAW ANNOUNCED IN 2014 STAKEHOLDERS CONSULTATION IN 2014 STAKEHOLDERS HEARINGS IN PARLIAMENT 2014- 2015 DELEGATION LAW APPROVED (LAW 106/2016) DELEGATED DECREES APPROVED IN 2017

Still missing: 42 administrative implementation acts to be released by 2019

1.

FIRST COMMON REFORM FOR THE WHOLE «THIRD SECTOR»: VOLUNTARY SECTOR + SOCIAL ENTERPRISES NOW SHARE A COMMON REGULATORY FRAMEWORK WITH SPECIFIC FEATURES.

2.

CODE FOR THIRD SECTOR ORGANIZATIONS (THE COMPLETE CODE OF REGULATION OF EVERY THE ASPECTS OF THIRD SECTOR ORGANIZATIONS).

3.

INSTITUTIONALIZATION OF THE 5 PER THOUSAND ALLOCATION OF INCOME TAX TO SUBSIDIAZE THIRD SECTOR ORGANIZATIONS.

4.

CREATION OF NEW PUBLIC/PRIVATE ENTITIES FOR THE THIRD SECTOR GOVERNANCE (NATIONAL COUNCIL FOR THE THIRD SECTOR) AND FOR FUNDRAISING (SOCIAL ITALY FOUNDATION).

5.

FUNDING AND FUNDRAISING.

6.

NEW TRANSPARENCY AND CONTROLS REGIMES.

THE THIRD SECTOR REFORM IN ITALY: THE MAIN CONTENTS

DEFINITION OF THIRD SECTOR

Third sector is defined as: "the complex of private entities constituted for the pursuit of non- profit, civic, solidarity and social utility purposes and which, in pursuance of the principle of subsidiarity and in accordance with their respective statutes or constitutive acts, promote and carry out activities of general interest by means of voluntary and free forms

• f action, mutuality or production/exchange of goods or services”.

DEFINITION OF THIRD SECTOR ORGANIZATIONS

• 1. Volunteer organizations
• 2. Social promotion associations
• 3. Philanthropic organizations
• 4. Social enterprises, including social cooperatives
• 5. Associative networks
• 6. Mutual aid companies
• 7. Foundations and other private entities constituted for the pursuit of non-

profit, civic, solidarity and social utility aims

THE THIRD SECTOR ORGANIZATIONS CODE (DECREE N. 117/2017): MAIN PROVISIONS

• Compulsory subscription of every organization to the National Register of Third

Sector Organizations in order to have juridical recognition and receive funding and tax benefits. The Register will be kept (and checked) by the Italian Ministery

• f Welfare.
• Modification to organizations’ statutes: full transparence on organizations

goals, governance model, budgets.

• Accounting and tax exemption. New, simplified accounting system regime

reserved to third sector non-commercial entities; new rules of transparency for the financial budgets and provision of social budget for all the organizations.

• Access to different fundraising (from the private sector) and funding (from the

public sector) opportunities for volunteer organizations, social enterprises, social promotion associations, community/participation foundations.

• New work regimes and salary ceilings for workers in social enterprises.

Different rules for volunteers’ refunding.

NEW ORGANIZATIONS AND FORUM FOR THE THIRD SECTOR GOVERNANCE

National council for the third sector

• 26 members (+ 3)
• 3 years mandate.
• Representative body of

the third sector

• rganizations
• advisory function for

policy making.

• Involvement in

monitoring and control functions on the third sector organizations Social Italy Foundation

• Public/private
• foundation. Tasks:
• financial resources

attraction from private subjects

• microdonations from

multiple donors

• savings management

company investing in social enterprises with very low returns National Control organ

• 7 members
• 3 years mandate
• Checks on funds

supplied for third sector special projects and network

• rganizations

NEW TAX REGIMES FOR THIRD SECTOR ORGANIZATIONS

1.

Third Sector Organizations assume the status of non-commercial entities when non-profit activities prevail over the commercial one. In this case, profits are taxed by benefiting from an optional flat rate system.

2.

For voluntary organizations and social promotion associations with revenues >130k euros, there is a special reduced profitability coefficients tax regime (1

• r 3%) without obligation for the entity to issue invoice and without VAT

deduction on purchases.

3.

Tax provisions, such as exemptions from tax on successions, donations, registrations, mortgages in the case of the transfer of assets are destined to carry out activities of general interest. Tax exemption or reduction on real estate for organization with the exclusive purpose of carrying out or financing non-commercial activities.

4.

From 30% to 35% tax deduction for liberal allowances in favor of entities in the third sector from 1 January 2018.

5.

'solidarity bonds' and social landing platforms in 2018.

NEW TOOLS AND PRACTICES FOR THIRD SECTOR ORGANIZATIONS

Budgetary transparency (with general public on website, and with the

• rgan of control)

Measurement of social impact of the action of third sector

• rganizations.

New social finance tools New formats for fundraising (testamentary leavers, microdonations and crowdfunding) Mixed public/third sector organization system of checks.

SCENARIOS AFTER THE THIRD SECTOR REFORM

General scenario in 4 points:

• Integration of the third sectors organization within the legal and fiscal regime released

by the reform.

• Legal and fiscal simplification for (big and national) social economy organizations

(social enterprise, social cooperatives) vs. bureaucratic burden for voluntary sector and social promotion (small and local) organizations.

• Systematic

public/private control system and transparency rules for all the

• rganizations.
• Outputs from new external tools (social impact, fundraising), proposed by legislator

and policy makers, for the future development of the sector

MAIN CONSEQUENCES FOR CONSULTANTS OF THE THIRD SECTOR

1.

New consulting areas (social impact measurement, transparency policies, new social investment tools, targeted fundraising).

2.

Construction of targeted consultancy paths based on the size, the nature, the

• bjectives and characteristics of the different third sector organizations (ability

to offer even more tailored advice).

3.

Cross-sectoral advice on access to funds, tax exemptions, construction of resilient and structured fundraising processes.

4.

Practices of advocacy (dialogue, representation and negotiation) with the new bodies and forums (National Third Sector Council, Organ of Control, Social Italy Foundation) posed by the reform.

5.

Pathways for integration of organizations and activities to co-managed social innovation.

For any question, please write an email. mariacristina.antonucci@cnr.it