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Minimal Profit Earned from Expansion, Limited Use of Technology

Non-profit sector experiences a 20% growth, yet 40% of organizations exhibit limited digitalization, as per Istat's findings

Lack of Financial Benefits in Expansion Process, Minimal Application of Technology
Lack of Financial Benefits in Expansion Process, Minimal Application of Technology

Minimal Profit Earned from Expansion, Limited Use of Technology

Digitalization in Italy's Non-Profit Social Cooperatives and Associations: A Progressive but Uneven Landscape

Italy's non-profit sector, including social cooperatives and associations, is witnessing a progressive shift towards digitalization, albeit an uneven one, particularly in the realm of sports and recreational associations.

According to a recent analysis presented by Sabrina Stoppiello, head of the Permanent Census of Non-Profit Institutions at Istat, 79.5% of all Non-Profit Institutions (NPIs) in Italy were registered and using at least one digital technology in 2021. However, this figure includes inactive NPIs, making the total 92.3%. Among the digitally active NPIs, a significant 74.9% primarily rely on internet technologies for their operations.

The interest in digital tools among Italy's non-profit sector is evident, with a growing emphasis on fostering inclusion and improving service delivery. Local initiatives such as Agendo social cooperative's inclusive botanical café project, which integrates community and digital communication outreach, are indicative of this trend.

The country has made strides in digitalization through the National Recovery and Resilience Plan (NRRP), which supports digital projects broadly, including in the public and social sectors. However, spending and implementation remain somewhat sluggish, with delays in some projects but ongoing reallocation to more feasible digital initiatives.

The broader non-profit and cooperative domain is aligning with Europe-wide trends, with research being conducted into digital cooperative information systems (CIS). These systems aim to enhance cooperation, information sharing, and smart service delivery among organizations, potentially benefiting social cooperatives and associations by enabling flexible, scalable digital collaboration.

Although there is no sector-specific data about sports and recreational associations, these types of organizations within Italy’s non-profit sector are likely engaging with digital platforms at a growing but variable pace. They benefit indirectly from national digital initiatives and advances in cooperative digital systems.

However, challenges persist in Italy's non-profit social cooperatives' full digital integration due to infrastructure, funding, and organizational capacity constraints. These challenges are not unique to sports and recreational associations, which are mainly concentrated in the northern regions of Italy, accounting for 50.3% of digitally active NPIs.

Recent data suggests that only 2.2% of digitally active NPIs have adopted advanced technologies, while a smaller percentage (9.8%) have invested in cloud computing services. These associations not in the National Unique Registry of the Third Sector (Runts) are predominantly found in the sectors of sport, culture, and recreation, with associations making up 86.5% of NPIs not in Runts.

The national context with Italy’s NRRP-funded digital agenda and research into cooperative digital systems signals a supportive environment. However, practical implementation on the ground, especially in smaller or local social cooperatives and sports associations, is still evolving.

The need for sector-targeted studies or reports on digital maturity in sports and recreational non-profit associations in Italy is apparent, given the lack of recent data focused on these groups. Nonetheless, the overall digitalization trend favors gradual but steady adoption driven by national policies and emerging cooperative digital technologies.

The technology, in the form of digital tools and digital cooperative information systems, is being increasingly adopted by Italy's non-profit sector, with a significant 74.9% of digitally active institutions primarily relying on internet technologies for their operations. However, some challenges persist in fully integrating technology due to infrastructure, funding, and organizational capacity constraints, particularly in smaller or local social cooperatives and sports associations.

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