Legislative Decree n. 117/2017 has introduced specific requirements on the drawing up of financial statements related to not-for-profit organizations.

Given their peculiar status and the related fiscal benefits, such entities must comply with more stringent requirements in terms of financial and non financial transparency, accoridng to a precise framework of applicable accounting standards and principles set out by the regulator. The exact balance sheet and profit&loss scheme to be applied to the drawing up of the financial statements will be shortly set out by the in charge Ministry of Welfare and Labour.

The article also contains a deep analysis on the methodology and implication of social reporting, which sets forth the parameters for a comprehensive understanding of the impact that not-for-profit organizations have on society.