Works performed in 2006-2007 by the Committee studying foundations in Italy Following the publication of the White Paper on Foundations in Italy (2002), the Committee on foundations [1] coordinated by Sergio Ristuccia resumed its activities in 2006. An intense agenda was drawn up, with many recent developments happening over the four years since the publication of the White Paper to be examined, plus the reform of book I of the Civil Code, which appeared to be on the legislator's agenda. In the first meeting (30 September 2006, Superga) some problems relating to the work schedule were tackled, starting with a preparatory document from Sergio Ristuccia and notes from Piero Bassetti, Bernardino Casadei and Francesco Saverio Coppola, committee members.
The Committee agreed on a method of research that focused on critical profiles rather than on the subjects under study. It is of course natural to commence with the major foundations, those of banking origin, since these are capable of supporting major projects and, as a reference prototype, of steering the debate on the very nature of foundations, while taking into due account the importance of an analytical perspective, distinguishing between the physiology and the pathology of the "foundation" as a social phenomenon. Marco De Marie outlined what can rightly be stated and cannot be stated when talking about "foundations".
This pointed to the need to identify a carefully defined study area, since the term "foundation" covers a multitude of realities given different names: corporate foundations, commercial foundations, operatic foundations, cultural foundations, participatory foundations and so on.
The vast array of structures also includes hybrid forms. This variety has still not been assimilated in the existing legal system, which provides for specialist legislation on major foundations of banking origin yet reverts to standard legislation of a much more modest scope for other foundation types. The number of definitions too is quite insufficient to identify the requisites needed to classify cases and activities (commercial, grant-making, fund raising, etc.) within the foundation phenomenon. Said foundations being defined, in the logic of the Civil Code, as "assets for a purpose". Felice Scalvini pointed out that there are also organisations often endowed with a legal status whose purpose is in keeping with foundation traditions, but which do not have sufficient assets to guarantee the pursuance of aims and basic operations. On the other hand there are forms of associations and structures differing from that of the foundation that perform important grant-making activities. These are types of hybrid foundations that do not satisfy traditional requirements for foundations, yet at the same time bypass the democratic rules that should be typical of the association movement.
It is important to seek clarity, because if one considers the implications of the action of foundations, one must look at questions such as: the social responsibility of companies, upstream of the phenomenon; the value and relevance of foundations for social stability and development; the role of human capital and of social capital, crucial in the experience of foundations of Italian communities (capable of attracting donations from organisations and, above all, from individuals, usually through public notices having a quantified goal. Veritable "philanthropic intermediaries"[2]), starting with input provided in 1999 by the Cariplo Foundation in Lombardy, as mentioned by Casadei.
The new work phase of the Committee forms part of a context that is showing a growing interest in foundations, also in view of the recent tendency for foundations to multiply, at least in nominalistic terms, while often being detached from philanthropic ends (donation logic vs. exchange logic). Below are two examples: the continuation of the Istat survey to collect and analyse data on non-profit organisations ("Survey on Foundations", with a new census entailing the administration of questionnaires on the structure, activity and financial situations of about 7,000 hypothetical foundations, compared with the 3,800 foundations of the 2001 census); the start of works of the Committee chaired by deputy Minister Roberto Pinza to prepare the reform of Book I of the Civil Code (legal and technical regulations; statutory autonomy and governance rules; exercising of business activity; controls).
On the latter point, the Committee raised a further question, regarding liaison instruments between standard law and special legislation for foundations. With some critical points that are changing quickly and constantly: commercial activity performed by foundations; the dual governance model; distinctions between public utility foundations and family foundations (the latter should take on the form of trusts); the European foundation model.
It was thus deemed necessary to prepare a sufficiently relevant exploratory survey. This scouting work forms a substantial contribution to understanding the foundation phenomenon.
Accordingly, during the course of the second meeting (29 November 2006, in Rome), the Committee's work schedule was drawn up, following two main directions:
- a broad exploration of the current situation;
- the choice of some important topics for proposals to be put forward by the CSS.
As well as providing the Committee with useful information, this scouting activity will help to rebuild a global picture of the state of Foundations.
The Committee has decided to log some types of foundations, getting young researchers to do analytical work that will serve to highlight the viewpoints of privileged observers within the foundations themselves, with the goal, as defined by Giuliana Gemelli, of acquiring "a mobile, dynamic, evolving identity card" of the various forms in existence. Identified by cross-checking both objective and subjective data concerning activities performed. Followed by the gathering of data regarding: grant-making activity; types of grants; procedures adopted for each type; and for each procedure, the type of information and documentation produced.
Other topics will be studied by the Committee. Starting with some suggestions made by the President who, in the annual lecture given during the public session (4 April 2007, in Rome) to open the annual meeting of Council Members, spoke about "Major foundations in Italy: a special social responsibility", and fixed an agenda of profiles requiring careful and timely reflection on the part of leaders from the foundation world (governing bodies, local authorities, stakeholders) and of the legislator.
The points raised and challenges contained in the lecture and in the ensuing debate (attended, among others, by the Secretary general of Compagnia di San Paolo, the President of the Monte di Bologna Foundation, the Vice President of the Cassa di Risparmio di Venezia Foundation, the President of the "Giannino Bassetti" Foundation, the President of the Social Housing Foundation) were picked up by numerous attendees. Among specialist journals, the lecture was published in full by ACRI's Il Risparmio. On 28 May, in Turin, the discussion resumed during an international workshop promoted by CSS and Compagnia di San Paolo on the subject of "Foundations in the United States and in Italy: different histories, the same responsibilities?" with the participation of Sergio Ristuccia and Olivier Zunz from Virginia University.
Moving on from these developments, in the meeting of 5 July 2007 (in Rome) the Committee decided to broaden the area of discussion to include: the functioning of the dual governance model for foundations of banking origin, over the course of almost ten years of history and experience based on the legislation of 1998-99; the by-laws of foundations and the evaluation of their compliance with principles established by the Constitutional Court with the rulings of 2003; the role that some Foundations have had in the bank merger phenomenon (consequences, risks and opportunities); criteria for managing foundations' assets.
Committee members then assessed and discussed the preliminary results of ongoing scouting work on foundations of public origin (i.e. foundations formed by Public Administrations through non-legislative procedures), corporate foundations and community foundations (Italian and English), with an in-depth study on the question of venture philanthropy.
Researchers engaged in logging work have presented interim reports on:
- Some foundations created by local authorities and public administrations in the past two years, identifying the thirty most relevant in terms of the innovation of governance, activities and set-ups. To verify the extent to which public promotion is a real impetus to the birth and development of organisations operating in the sphere of subsidiarity.
- Corporate giving foundations in Italy, United States and Great Britain, paying attention to capitalism models and national tax incentive measures.
- Community foundations in Italy based on five indicators: 1) the degree of financial independence (i.e. financially independent from the promoting entity) and political independence (in relation to the composition of governing bodies and political institutions); 2) Operating methods for the publication of financial statements and access to the foundation's information; 3) The form of social legitimation within the reference community; 4) Evaluation and monitoring of the external social impact of professional skills within the foundation; 5) The relationship with donors in fund-raising strategies.
- Community foundations in Great Britain (created in the 1970s) with reference to the current growth of the Third sector associated with specific public policies.
- Venture Philanthropy (taken to mean the application of instruments and best practices of Venture Capital to the social sector) as a means of action for new community philanthropy that is beginning to develop in Italy.
In 2008 a book will be published containing updates on activities performed and texts reporting gathered evidence (polls, interviews and in-depth studies), providing groundwork for possible recommendations that the Committee will release to the foundation world: first, measure, describe and define the phenomenon; second, plan instruments, methods and areas of intervention.
Notes:
[1] The Committee consists of: Sergio Ristuccia (coordinator), Bernardino Casadei, Francesco Saverio Coppola, Antonio Di Majo, Marco De Marie, Giuliana Gemelli, Luciano Hinna, Felice Scalvini.
[2] Thus far the measure of this capacity is 3,000 donations for a global value in excess of 7 million Euro.
