Italian and international fiscal experts including a representative from the EFC, government officials and delegates from the Filarete, Giovanni Agnelli, Eni-Enrico Mattei and Poldi Pezzoli Museum foundations discussed the tax treatment of foundations at a workshop organised by Bracco Foundation in Milan on 25 November.

At a time of economic crisis for the West, more tax incentives for individual and private donors as well as tax allowances on investment income would be an important stimulus for foundations and their funders in Italy. The comparative analysis of Italian and European laws conducted during the conference showed that Italy could do more to stimulate philanthropic activity in the country. The analysis highlighted a number of possible recommendations and new policy-making options for Italy. For example income from asset administration of public benefit foundations is taxed in Italy, whereas it is tax exempt in most other European countries (see EFC Comparative Highlights of Foundation Laws, chart number 22)

An overall simplification of rules, in particular on tax incentives for donors, could also be worthwhile considering given that these are currently spread across various different laws and decrees. A more favourable fiscal environment could encourage private investments into culture, a field where availability of public money has decreased significantly in recent years.  “It would certainly be desirable for private investors to do more for the arts, hopefully helped by fiscal measures that act as a driver for the growth of cultural entrepreneurship,” Diana Bracco, Chair of the Bracco Foundation stated. In Italy, legislation governing foundations is fragmented and hard to understand, and difficult to interpret when it comes to taxation. A process of simplification, rationalisation and harmonisation of laws is needed in this area, to give players a small number of clear regulations and help foundations achieve their goals effectively and efficiently. The EFC mapping of foundation and tax laws could certainly provide some benchmarks for the discussion and way forward.  

The press-release of Fondazione Bracco can be downloaded here.