The data presented by the Italian Donation Institute on the occasion of the Day of Giving in January 2024 reveal a low level of trust among Italians in charities . Many prefer direct, informal donations precisely to avoid going through organizations they don’t trust.
People’s distrust leads them to lessen their support for organizations and activities, even those pursuing similar goals. Even though they sympathize with the activities and goals, people choose not to donate because they don’t know how the funds raised will be used.
In this article, we’ll provide a list of practices and precautions to adopt for giving charitably , ensuring that the help you offer in person, or through a collection of donations, actually reaches those in need.
The RUNTS
Not everyone knows that there is a register of charities : it is the RUNTS , the National Register of the Third Sector (the Third Sector is that relating to organisations – public or private – that are not for profit).
The RUNTS is an online register that has been active since November 23, 2021. It aims to ensure the transparency of third sector entities by providing the public with an open and searchable list of registered organizations. Furthermore, all organizations registered with the RUNTS must comply with certain rules set by law. Specifically:
- Only third sector entities registered with the RUNTS can benefit from the tax breaks provided;
- Only entities registered with the RUNTS can enter into agreements with public administrations to carry out activities of general social interest on behalf of third parties;
- Only entities registered with RUNTS can access the 5 X 1000 ;
- Entities registered with the RUNTS can acquire legal personality .
The following can register for RUNTS:
- Philanthropic organizations,
- The ASP, Social Promotion Associations,
- Mutual aid societies that are not required to register in the company register,
- Private foundations established on a non-profit basis which pursue civic, solidarity and socially useful purposes,
- The ODV, Voluntary Organizations.
RUNTS membership serves the interests of both the non-profit organizations that register (because it gives them access to support, including tax relief), and the public as a charitable organization: donating to a RUNTS-registered organization means donating to a controlled organization and having greater guarantees on how the money or resources raised will be used.
The Third Sector Code
The reference legislation for non-profit and charitable organizations is the Third Sector Code , a set of rules that govern the non-profit sector with the aim of providing a guidance tool for all organizations that carry out fundraising and to improve the relationship of trust between associations and citizens.
Like the RUNTS, the regulatory framework also serves the dual purpose of providing guidance to charities and a guarantee to citizens.
The Third Sector Code is divided into numerous implementing legislative decrees, but the main points can be summarized as follows:
- To be recognized as such, third sector organizations are required to register with the RUNTS . The register is located at the Ministry of Social Policies but is managed and updated at the regional level.
- Entities registered with the RUNTS are required to comply with various obligations: transparency of financial statements , insurance of volunteers, internal democracy, transparency of the allocation of any profits.
- Entities registered with the RUNTS can access exemptions or financial benefits .
The Third Sector Code also contains a long section dedicated to Volunteer Service Centers . To monitor their work, the National Supervisory Body was established.
Like the RUNTS, the Third Sector Code is a point of reference for all associations that intend to carry out charitable activities, but it is also a form of guarantee for citizens .
Donating to charity: how to do it effectively and legally?
Does the requirement to register with the RUNTS mean that non-registered organizations and individuals cannot organize charity events? Can they not organize fundraisers and donate the proceeds to a charity or carry out charitable activities themselves? No, current legislation does not prohibit private individuals or individuals not registered with the RUNTS from donating to charity.
Anyone can pursue a charitable cause, including involving citizens who contribute with their donations, as long as they do so in accordance with the principles of truth, transparency, and fairness . So, how can you ensure your charity campaign adheres to these guidelines? Here are some practical tips for organizing solidarity campaigns that fully comply with the law and the people involved.
Clear objectives
The goals of the charity campaign must be specifically identified. It’s not enough to simply choose to donate a sum to a specific organization; it’s good practice to identify a more specific objective . For example, you can support the purchase of a specific piece of machinery, a specific branch of research, a specific project, and so on.
This way, public communication will be clearer and any confusion regarding the destination of the funds will be avoided for all parties involved.
Light modes
The methods of fundraising and use must also be clear and communicated clearly to the public. The available payment methods must be specified in easily understandable and detailed terms to minimize uncertainty and ambiguity.
If the charity is raised through the sale of merchandise, the organizer must specify to the public the percentage of the merchandise’s cost that, once the merchandise’s purchase price has been deducted, will actually be donated to charity.
Clear communication
To build trust and engage donors, it’s essential that communication with the public is precise and clear, leaving no room for ambiguity . Institutions or private organizers should always provide comprehensive information about their activities and goals.
In addition to the goals of the charity campaign, the public must also be informed of the amount raised, how it is used, and the results achieved. The goal of communication should be full transparency, engaging the public in the campaign’s objectives.
Transparency of financial statements
Transparency is the cornerstone of good charity. Charities must be transparent about how their funds are managed. To this end, it’s helpful to disclose certain information: how much money has been raised through the campaign and what it will be used for.
If the charity has funded a specific project, it’s a good idea to make the project’s progress public, as well as details on how the funds were used.
Charity in a safe way
Let’s shift our perspective and focus on donors. How can we ensure we donate safely, without falling victim to scams or dishonest practices? Just observe a few behaviors:
- Check the RUNTS : if the charity campaign is being run by an organization, the first step is definitely to check whether it is registered with the RUNTS.
- Visit the organization’s website to learn about its activities and annual reports. Signs of trustworthiness include all the information published about its work and, especially, its past charitable activities. Are there details on how past funds were raised and used? Is information about projects supported by donated funds updated?
- Check the publication of the financial statement : An essential practice for safe charitable giving is to check whether the charity regularly publishes its financial statement. This document should provide a clear overview of the organization’s revenues and expenses, allowing donors to transparently assess how the funds raised are used. Through the financial statement, it is possible to verify whether the organization manages resources responsibly and efficiently, ensuring that a significant percentage of funds are actually allocated to charitable causes rather than administrative expenses or other purposes. A well-structured and detailed financial statement, updated on a timely basis, is a sign of transparency and accountability on the part of the organization. Accurate reporting of financial activities.
- Check social media : Social media is a useful tool for delving into an organization’s project history, gaining more insight into its popularity, reliability, and expertise.
Conclusion
In a context where charity is often intertwined with marketing strategies and trust in charities can be undermined, it becomes essential to adopt practices that ensure fairness and transparency in making donations . There are ways to donate safely and transparently : by paying attention to the aspects we’ve explored in this article and following the guidelines of the Third Sector Code, it is possible to contribute effectively and responsibly to charitable causes, ensuring that your support has a positive and tangible impact on communities and the most vulnerable.
