Third Sector Entities: Documentary Checks on ETS

2026 represents a particularly important year for “Third Sector Entities” (basically, non-profit organizations), which will be faced with a more structured regulatory framework, both in terms of taxation and document controls.

On the one hand, the tax provisions of the Third Sector Code come into force; on the other, the Ministry of Labor Decree of August 7, 2025, introduced a new system of audits, which will significantly impact the internal organization of entities registered with the RUNTS.

The new framework aims to strengthen transparency, proper management, and consistency between the activities actually carried out by the entities and the general interest objectives declared in the bylaws.

♦ Interested entities and scope of application

The control system concerns entities registered in the National Third Sector Register, with particular reference to the main categories of non-profit entities governed by the Third Sector Code.

• Social promotion associations (APS);
• Voluntary organizations (ODV);
• Generic Third Sector Bodies;
• Philanthropic entities;
• Associative networks.

However, social enterprises and mutual aid societies remain excluded from the control system governed by the ministerial decree, and specific sector-specific regulations continue to apply to them.

The range of affected entities is very broad. The reference material highlights over 120,000 entities registered with the RUNTS and a minimum audit frequency of three years, with a significant number of audits to be conducted within the first three years of implementation.

♦ The subjects authorized to carry out the checks

The decree establishes a two-tier system. The first level consists of ordinary oversight, which can be carried out by National Association Networks and Volunteer Service Centers for participating organizations. The second level intervenes when critical issues arise, involving the territorially competent RUNTS offices.

National association networks and CSVs that intend to carry out checks must submit a specific request for authorization to the Ministry of Labor, documenting their operational capacity and the availability of an adequate number of appointed persons.

The persons in charge may be employees of the authorized body or external collaborators and professionals, provided they meet the requirements set forth in the decree.

♦ Requirements for the persons in charge

Collaborators and external professionals can take on the role if they possess at least one of the following requirements:

• successful attendance of a specific training course lasting no less than 40 hours and with a final exam;
• proven experience of at least three years in auditing, control, management or consultancy for third sector entities;
• membership in one of the professional categories referred to in Article 2397, paragraph 2, of the Civil Code.

This last category includes, among others, statutory auditors, chartered accountants and accounting experts, lawyers, employment consultants, and tenured university professors in economics or law.

Refresher training is also required, with courses lasting no less than 20 hours, to be attended at least once every three years. This requirement does not apply to individuals belonging to the professional categories indicated in Article 2397, paragraph 2, of the Civil Code.

♦ Subject of ordinary checks

• the effective carrying out of activities of general interest on at least a prevalent basis;
• the correct composition of the membership base and compliance with statutory requirements;
• the absence of direct or indirect distribution of profits;
• the compliance of the statute with the provisions of the Third Sector Code;
• the correct maintenance of company books, registers and mandatory documentation;
• compliance with tax and administrative obligations;
• regular communication of changes to the RUNTS;
• transparency and publicity of mandatory information.

♦ Procedure and results of the inspection

At the end of the inspection, the person in charge draws up a report. The possible outcomes can be divided into three main scenarios.

If amendable irregularities are not corrected, or if non-correctable irregularities are present, the report is forwarded to the competent RUNTS Office, which may take the measures required by law.

Possible consequences include prescriptions and corrective measures, administrative fines, suspension of activity and, in the most serious cases, cancellation from the RUNTS.

♦ Tax changes from January 1, 2026

In parallel with the new control system, from 1 January 2026 the tax provisions of Title X of Legislative Decree 117/2017, which regulate the tax regime of entities registered with the RUNTS, will become relevant.

One of the key aspects is the so-called commerciality test provided for by Article 79 of the Third Sector Code. This test determines whether the general interest activities carried out by the organization can remain non-commercial in nature or should be considered commercial for tax purposes.

Generally speaking, activities of general interest are considered non-commercial when they are carried out free of charge or for fees that do not exceed actual costs according to the criteria and tolerances established by law.

It is therefore essential to map the actual activities carried out by the organization, distinguishing between activities of general interest, any other activities, fundraising activities, and operations with potential commercial relevance.

♦ Flat-rate schemes for ODV and APS

For voluntary organizations and social promotion associations that also carry out commercial activities, the Third Sector Code provides specific preferential flat-rate tax regimes, within the commercial revenue limits indicated by the legislation.

These regimes can lead to significant accounting and tax simplifications, but require correct classification of income and document management consistent with the actual activity carried out.

♦ Beware of entities not registered with RUNTS and non-profit organizations

Entities not registered with the RUNTS cannot benefit from the regime specific to Third Sector Entities and remain subject to the ordinary regulations for non-commercial entities, with possible effects also on the use of previous benefits.

Particular attention must be paid to non-profit organizations (NGOs) that intend to maintain the tax benefits provided for ETS: the reference material highlights the need to complete registration with the RUNTS by March 31, 2026, with the consequent adaptation of their bylaws to the provisions of the Third Sector Code.

♦ Recommended actions

In view of the new control system’s implementation, it is advisable for entities to conduct a preliminary review of their position, both from a statutory and administrative and fiscal perspective.

In particular, it is recommended to proceed with:

In the event of any findings, it is important to act promptly to correct any remediable irregularities, respecting the deadlines indicated by the person in charge.

♦ Final considerations

The introduction of the new control system and the entry into force of the tax provisions of the Third Sector Code represent an important step for the entire non-profit sector.

The new structure requires institutions to pay greater attention to document management, transparency, and consistency between activities, statutes, and civic, solidarity, and socially beneficial purposes.

Preventive preparation allows you to face any checks with greater peace of mind, reducing the risk of disputes, prescriptions, or adverse measures.

Our firm remains available to provide assistance in verifying statutory and documentary compliance, mapping activities, applying the commercial viability test, and managing tax obligations related to the new regime.

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Don’t hesitate to contact us for further information or to receive support in complying with the new regulatory provisions.

Best regards,

Sara Razzi

This circular is the result of a collaboration between artificial intelligence and human expertise, with review and editorial care by Sara Razzi.