APS, ODV, ETS: the differences, and which legal form to choose for your association

Introduction: choosing the right legal form for your Terzo Settore entity

One of the most important decisions when setting up a non-profit association is choosing which type of Ente del Terzo Settore (ETS) — third-sector entity — to adopt. This choice isn't merely formal: it affects rights, obligations, funding opportunities, tax treatment, governance, and even how the organization can operate day to day.

If you're thinking about founding an APS, an ODV, or choosing among other ETS forms, or if you're already running one and want to understand whether your current legal form is still the right fit, this article is for you. Through a structured comparison, you'll discover what sets these categories apart and how to find your way to the right choice.

The 7 types of Ente del Terzo Settore (ETS) under the Codice

The Decreto Legislativo 117/2017 (the Codice del Terzo Settore, Italy's Third Sector Code) recognizes 7 types of ETS:

1. Organizzazioni di Volontariato (ODV) — Volunteer Organizations
2. Associazioni di Promozione Sociale (APS) — Social Promotion Associations
3. Enti Filantropici — Philanthropic Entities
4. Imprese Sociali — Social Enterprises
5. Reti Associative — Associative Networks
6. Società di Mutuo Soccorso — Mutual Aid Societies
7. Altri Enti del Terzo Settore — Other Third Sector Entities

In this guide we'll focus on the three most common and relevant types for Italian organizations: ODV, APS, and Enti Filantropici, leaving the rest for a future deep dive.

APS - Associazione di Promozione Sociale: features and requirements

Legal definition

The APS (Associazione di Promozione Sociale) is an Ente del Terzo Settore set up as an association (recognized or unrecognized) that carries out activities of general interest (Art. 5 CTS) for the benefit of its own members, their family members, or third parties (Art. 46 D.Lgs. 117/2017).

Distinctive features of the APS

| Aspect | Details |
|--------|---------|
| Main beneficiaries | Members (exclusively or predominantly), family members, third parties |
| Activities | Of general interest (Art. 5): education, culture, sport, local development, etc. |
| Paid staff | Yes, allowed |
| Volunteers | Not mandatory, but permitted |
| Profit | No profit purpose; no distribution of surplus |
| RUNTS | Registration essential to access benefits |
| Legal form | Recognized or unrecognized association |

Who can found an APS

An APS can be founded by natural persons (at least 3 members) or legal entities. There's no maximum number of members. Contrary to what's sometimes assumed, you don't need legal personality recognized by the Prefetto (the Prefect): an "unrecognized" APS still has full rights and duties.

Example of an APS

OnStage, the association behind this blog, is an APS: it carries out cultural promotion activities (Art. 5, letter g — organizing and managing cultural activities) for the benefit of its own members and the community of Botrugno and Salento. It employs both volunteers and paid staff, organizes workshops and events, and runs an online magazine.

Advantages of an APS

✓ Flexibility: you can serve both members and third parties
✓ Paid staff: you can hire employees or collaborators
✓ Diverse activities: you can run side activities (merch sales, paid courses) if they're instrumental to your mission
✓ Visibility: as an association, generally more visible than an ODV
✓ Access to funding: many public grants are open to APS
✓ Simple governance: less rigid than a company

Disadvantages/limitations of an APS

✗ Accounting obligations: financial statements and a mission report (though simplified for small entities)
✗ Staffing limits: if paid staff exceeds a certain proportion of overall "work", the tax regime changes
✗ Clear mission requirements: you need to demonstrate that your activities genuinely qualify as of general interest
✗ Oversight: being registered with the RUNTS means being subject to public checks

ODV - Organizzazione di Volontariato: features and requirements

Legal definition

The ODV (Organizzazione di Volontariato) — Volunteer Organization — is an Ente del Terzo Settore set up as an association (recognized or unrecognized) that carries out activities of general interest predominantly for the benefit of third parties, drawing predominantly on the volunteer work of its own members (Art. 32 D.Lgs. 117/2017).

Distinctive features of the ODV

| Aspect | Details |
|--------|---------|
| Beneficiaries | Third parties (not the members) |
| Activities | Of general interest; carried out mainly by volunteers |
| Paid staff | Very limited; if present, must be instrumental |
| Volunteers | Mandatory and predominant (at least 50% of activity) |
| Profit | No profit purpose; zero distribution of surplus |
| RUNTS | Registration essential |
| Legal form | Recognized or unrecognized association |

What "predominance of volunteering" means

This is the crucial requirement of an ODV: 50% or more of the activity must be carried out by unpaid volunteers. This means:

- Documented volunteer hours/days must exceed those of paid work
- The administrators of an ODV are usually volunteers (unpaid)
- If you hire full-time employees, you risk losing ODV status
- Funds spent on salaries and benefits must be lower than funds spent on other activities

Example of an ODV

Imagine an organization that runs a soup kitchen for homeless people: it has a paid coordinator (working 30 hours/week) and around 20-30 volunteers who prepare and hand out meals every day. This is an ODV: the volunteers are predominant, both in number and in hours worked.

Advantages of an ODV

✓ Highly favorable tax regime: 1% profitability coefficient (vs 3% for APS)
✓ Recognition of mission: formally recognized as a "pure" volunteer organization
✓ Access to volunteering-specific funding: many grants are earmarked specifically for ODV
✓ Simplified accounting: even more simplified if small
✓ Specific protections for volunteers: dedicated laws

Disadvantages/limitations of an ODV

✗ Bound to volunteering: if your mission requires permanent, qualified staff, it's hard to maintain predominance
✗ Less room for paid staff: you can't pay a significant staff
✗ Activities only toward third parties: you can't serve mainly your own members (e.g. a members-only sports club can't be an ODV)
✗ Tracking obligations: you must meticulously document volunteer hours
✗ Risk of downgrading: if the ratio of volunteers to paid staff drops over time, you lose the status

Enti Filantropici: features and requirements

Legal definition

An Ente Filantropico — Philanthropic Entity — is an ETS set up by natural or legal persons who hold a stable endowment to be devoted to charity, assistance, and/or general-interest purposes (Art. 59 D.Lgs. 117/2017).

Distinctive features

| Aspect | Details |
|--------|---------|
| Origin | Donation/inheritance with a philanthropic constraint |
| Endowment | Must be substantial and stable |
| Activities | Uses the return on the endowment for charitable purposes |
| Governance | Often a board of directors; less democratic |
| Staff | Professional, paid employees |
| Volunteers | Not mandatory |
| Beneficiaries | Third parties (the poor, the elderly, students, etc.) |

Example of an Ente Filantropico

A wealthy individual draws up a will establishing a foundation with an endowment of 1 million euros, dedicated to supporting talented but low-income students. This is an Ente Filantropico: it has a stable endowment and a charter that binds its activity to a specific charitable purpose.

Advantages of an Ente Filantropico

✓ Stable endowment: guarantees financial continuity
✓ Prestige: often associated with excellence and tradition
✓ Tax benefits: like all ETS
✓ Operational flexibility: can employ qualified staff

Disadvantages/limitations of an Ente Filantropico

✗ Hard to set up: requires a significant endowment
✗ Restricted governance: not based on a democratic general assembly
✗ Stability requirements: must demonstrate solid capitalization
✗ Less access to grants: some grants favor associations
✗ Administrative complexity: rigorous endowment reporting

Comparison table: APS vs ODV vs Enti Filantropici

| Criterion | APS | ODV | Ente Filantropico |
|----------|-----|-----|-------------------|
| Legal form | Association | Association | Association/Foundation |
| Paid staff | Yes, flexible | Very limited | Yes |
| Volunteer predominance | Not required | Yes (>50%) | No |
| Beneficiaries | Members, family, third parties | Third parties | Third parties |
| Flat-rate tax % | 3% | 1% | 3% |
| Flat-rate regime threshold | €85,000 | €85,000 | €85,000* |
| RUNTS registration | Essential | Essential | Essential |
| Mandatory financial statements | Yes (if >€220,000) | Yes | Yes |
| Democratic governance | Yes (assembly) | Yes (assembly) | Limited |
| Access to public grants | Many | Many (specific) | Some |

*Updated per D.Lgs. 186/2025; previously €130,000

Other types: Imprese Sociali, Reti, Società di Mutuo Soccorso

Imprese Sociali

An Impresa Sociale — Social Enterprise — is an ETS that pursues social aims also through commercial activity: it produces goods or services aimed at work reintegration, inclusion, etc., but generates significant revenue.

When to choose it: if your activity is hybrid (e.g. a social cooperative employing people with disabilities that also manufactures goods) and you generate substantial revenue to reinvest in your mission.

Reti Associative

A Rete — Network — is a grouping of several ETS for coordination on shared themes, without its own legal personality. It's a coordination tool, not a management structure.

When to choose it: if you want to coordinate several already-existing associations under a common umbrella (e.g. a regional network of sports-focused APS).

Società di Mutuo Soccorso

These are historic and today very rare entities, based on mutual support among members. Practically no new SMS are being set up anymore.

How to choose the right legal form for your organization

Self-diagnosis questions

Answer these questions:

1. Who are the main beneficiaries of your activity?
- Mainly your own members → APS
- Mainly external third parties → ODV or Ente Filantropico

2. How many volunteers do you have, and can you keep?
- Few volunteers, many employees → APS
- Predominance of volunteers (>50%) → ODV

3. Do you have a stable endowment to allocate?
- Yes, a significant endowment → Ente Filantropico
- No → APS or ODV

4. Does your activity generate significant commercial revenue?
- Yes, and you want to reinvest it in your social mission → Impresa Sociale
- No, mainly non-profit activity → APS or ODV

5. What tax regime do you need?
- Maximum tax benefit → ODV (1% vs 3%)
- More flexibility → APS

Simplified decision tree

```
START
│
├─ Do you have a significant stable endowment (>€100,000)?
│ ├─ YES → ENTE FILANTROPICO
│ └─ NO → continue
│
├─ Are beneficiaries mainly THIRD PARTIES (not members)?
│ ├─ YES → continue (ODV / Impresa Sociale)
│ └─ NO → APS
│
├─ Can you maintain a PREDOMINANCE of volunteers (>50% of hours)?
│ ├─ YES → ODV
│ └─ NO → APS or Impresa Sociale
│
└─ END
```

The crucial role of the RUNTS: whichever form you choose

Regardless of which type of ETS you choose, registering with the RUNTS (Registro Unico Nazionale del Terzo Settore, Italy's national register of third-sector entities) has become ESSENTIAL to:

- Access tax benefits
- Be visible and publicly searchable
- Take part in many public and private grants
- Sign contracts with public administrations
- Enjoy legal protections

Registering with the RUNTS (https://www.servizi.lavoro.gov.it/runts) is straightforward but requires:

1. Complete identifying data
2. A charter compliant with the Codice
3. A declaration of general-interest activity (Art. 5)
4. Data on the organization's leadership
5. The latest mission report/financial statement

Case study: OnStage APS

To illustrate, OnStage is an APS because:

- Beneficiaries: mainly young members from Botrugno (the artists and creatives who take part), plus the wider community (through open events)
- Staff: we have a few paid roles (coordination, administrative management) and many volunteers
- Activities: cultural promotion (art, hip-hop, street art, events) = Art. 5 CTS, letter g
- Tax regime: we benefit from the 3% rate on commercial revenue up to €85,000
- RUNTS: we're registered and fully verifiable

If OnStage operated only for the benefit of third parties (e.g. only running workshops in other schools) and had an absolute predominance of volunteers, it could choose ODV status to access the 1% regime. But our mission of community building and showcasing local talent fits an APS better.

Practical steps: how to register and how to change form

If you're founding a new association

1. Decide on the type (APS, ODV, etc.) using the criteria above
2. Draft a charter compliant with the Codice del Terzo Settore (templates are available on regional CSV — Centro di Servizio per il Volontariato — websites)
3. File it with the Agenzia delle Entrate (Italy's Revenue Agency, if you want legal recognition) or remain an unrecognized association
4. Register with the RUNTS using the online form on the Ministero del Lavoro portal
5. Get a dedicated CIN/IBAN for transactions

If you want to change form (e.g. from ONLUS to APS)

1. Consult an accountant to assess the tax impact
2. Amend the charter to align it with the new requirements
3. Call an extraordinary general assembly to approve the change
4. Update your RUNTS registration
5. Notify the Agenzia delle Entrate and your funders

Careful: some public grants require "continuity" of at least 12-24 months in your current form. Check before changing.

Conclusions: it's not a choice for life

Remember that the choice of legal form isn't irreversible: if your organization changes over time (e.g. you hire more staff and can no longer maintain the predominance of volunteers), you can evolve from ODV to APS.

What matters is that the choice is conscious, consistent with your mission, and properly registered with the RUNTS. With this solid foundation, you'll be able to access funding, demonstrate transparency, and operate in full compliance with the Codice del Terzo Settore.

Sources and further reading

- Art. 46-58 CTS - APS — Official text on Associazioni di Promozione Sociale
- Art. 32-45 CTS - ODV — Rules on Organizzazioni di Volontariato
- Art. 59-71 CTS - Enti Filantropici — Regulations on philanthropic entities
- RUNTS - Registration portal — National Single Register
- Italia Non Profit - The 7 types of ETS — Detailed comparison
- Passione Non Profit - ODV, APS, ONLUS — Clarifications on historical differences

Disclaimer

This article provides general information on ETS types under the Codice del Terzo Settore, updated as of May 2026. Choosing a legal form has complex legal, tax, and organizational implications. To decide which form best fits your specific situation, always consult a commercialista (chartered accountant) or a lawyer specializing in non-profit law.

Coming up in this series

In the next article, we'll take a deep dive into the 26 activities of general interest (Art. 5 CTS): what they are, how to choose the main one for your organization, and how to document it in the RUNTS.