Charity sales: transparency requirements come into force for organisations, businesses and influencers

‘A proportion of the proceeds from sales will go to charity...’. How many times have we come across statements like this in adverts and on labels? From tomorrow, companies and influencers will have to be more specific: what proportion? For which charitable initiative and with which organisation? On Tuesday 21 July, the ‘Charity Act’ (No. 120/2026) comes into force – a bill proposed to Parliament in early 2024 by the Government – via the Ministry for Enterprise and Made in Italy (Mimit) – following the scandals that hit the headlines at the end of 2023.

In essence, the regulation aims to ensure greater transparency for consumers and third sector organisations (TSOs). No more vague wording or hidden cents: the product packaging must specify the amount or percentage of the sale price allocated to charity, the recipient organisation and the purposes for which the proceeds will be used. Alternatively, this information may be displayed on a label or on promotional materials at points of sale, provided that ‘clarity, simplicity and adequate visual prominence’ are ensured. These requirements also apply to online and offline advertising and to content produced viainfluencer marketing (advertising professionals are also subject to the regulation). Prior notification must also be given to the Competition Authority before launching the campaign.

“The new legislation will place even greater emphasis on the wording used in contracts between ETS organisations and businesses , which will need to be very precise,” explains Carlo Mazzini, a consultant specialising in Third Sector legislation. “From a legal point of view,” he continues, “these contracts often do not constitute a donation. If, for example, the company gains the right to use the non-profit organisation’s trademark, visibility in communication campaigns, co-marketing initiatives or other economic benefits, the relationship becomes synallagmatic. Essentially, this is a reciprocal exchange, which should be classified as sponsorship, licensing or a co-marketing agreement’.

The obligations arising from the new legislation and the resulting increased contractual constraints could – at least initially – hold companies back. “Not only might businesses perceive the new rules as a bureaucratic burden in cases of charitable donations,” continues Mazzini, “but it is also likely that, as the non-profit sector is not their core business, they may not be aware of all the regulatory changes. In this regard, at least initially, it will be up to the ETS to clearly explain the requirements and provide information.”

Whilst for smaller organisations the new law provides protection against the risk of receiving donations that are negligible or purely symbolic, for more established organisations it formalises principles that are already well-established. “For years we have adopted internal rules to govern initiatives carried out with companies, drawing on the regulations already in force,” says Silvia Carteny, chief governance officer at the AIRC Foundation. “The companies we work with are already subject to obligations of fairness and transparency in commercial communications , and many of the safeguards now required were already in place in both the campaigns and the relevant agreements.”