Cautious about Italian making donation (7)
I believe the answer is:
charity
'donation' is the definition.
(thesaurus)
'cautious about italian' is the wordplay.
'cautious' becomes 'chary' ('chary' can be similar in meaning to 'cautious').
'about' is an insertion indicator.
'italian' becomes 'it'.
'chary' going around 'it' is 'CHARITY'.
'making' acts as a link.
(Other definitions for charity that I've seen before include "Pecksniff girl" , "Help for needy" , "Gifts to the needy" , "Act of giving to those in need" , "A good cause" .)