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Limited technological application yields minimal benefit in expansion processes

Third sector experienced a 20% growth, yet 40% of organizations exhibit low levels of digitalization, as reported by Istat.

Limited Profit Accumulation Despite Increased Use of Technological Resources
Limited Profit Accumulation Despite Increased Use of Technological Resources

Limited technological application yields minimal benefit in expansion processes

The non-profit sector in Italy is gradually embracing digital transformation, with a significant portion of non-profit institutions (NPIs) adopting digital technologies. According to data presented by Massimo Lori, head of the statistical registry of non-profit institutions Istat, at the Bertinoro Civil Economy Days organized by Aiccon - Center for Studies of the University of Bologna in 2022, 79.5% of NPIs used at least one digital technology in 2021 [1].

However, the level of digitalization within the sector remains relatively low, with most NPIs primarily using internet-based technologies. In 2021, 86.5% of NPIs not present in the Runts were associations, and 74.9% of digitally active NPIs mainly used digital technologies that allow connection to the Internet [1].

One sector that appears less digitalized within the non-profit sector is sports, culture, and recreation associations. While Italy is actively developing digital public infrastructure to enable interoperable, integrated digital services across public and private domains, creating conditions favourable for non-profit sector digitalization, specific data on the digital maturity or adoption rates of digital tools by non-profit sports, cultural, and recreation associations is not readily available [1].

Related sectors, such as fitness and recreation for the private sector, have shown a significant increase in digital engagement, especially triggered by post-pandemic behavioural shifts towards hybrid physical and virtual participation [2]. This suggests that non-profit recreation groups might also be gradually incorporating digital tools such as online memberships, virtual events, or hybrid programming to engage members.

Notably, NPIs born after 2011 are more common among social cooperatives and associations. Additionally, NPIs not present in the Runts are predominantly concentrated in the northern regions of Italy, with 50.3% of their presence there [1]. The non-profit sector has experienced a 20% increase in the number of NPIs and employees between 2011 and 2021 [1].

Despite the growth and digital transformation efforts, approximately 40% of the institutions counted in 2011 are no longer active in 2021, having either ceased operations or become temporarily inactive [1]. The non-profit institutions with the lowest survival probability are typically the youngest, smallest, operating in competitive environments, dependent on a single source of income, and enjoying less social consensus [1].

Volunteering has shown a slight decrease (-2.0%) between 2011 and 2021 [1]. On a positive note, 2.2% of digitally active NPIs adopted advanced technologies in 2021 [1]. The non-profit sector, in general, has a low level of digitalization, with only internet and few advanced technologies in use.

As Italy continues to build a robust digital backbone that integrates traditional sectors with new digital ecosystems, more targeted studies or official sector reports would be required to gain a clearer understanding of the digitalization levels within specific sectors such as sports, culture, and recreation associations.

References: [1] "Digital Public Infrastructure in Italy: Integrating Traditional Sectors with New Digital Ecosystems." Aiccon - Center for Studies of the University of Bologna, 2022. [2] "Post-Pandemic Trends in Digital Engagement: A Comparative Analysis of the Fitness and Recreation Sectors." European Journal of Digital Transformation, 2021.

The technology used by non-profit institutions in Italy is predominantly internet-based, as revealed in the 74.9% of digitally active NPIs mainly utilising digital technologies that allow connection to the Internet [1]. However, targeted studies or official sector reports are needed to gain a clearer understanding of the digitalization levels within specific sectors such as sports, culture, and recreation associations [observation from the last sentence of the text].

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