In-Country and Diaspora Philanthropy

In-Country and Diaspora Philanthropy
The Synergos Institute, working through a local community foundation, supports a New Mexico micro-entrepreneur as she raises her income by producing fabric on a traditional wooden loom.

In 2006, Mexico continued to be a focus of the Program’s support of indigenous philanthropy. Our goal is to increase the flow of funds to nonprofit organizations from Mexican philanthropies and from Mexican individuals, whether residing in the country or elsewhere. At the heart of this effort is our conviction that private philanthropy and organized civil society are critical factors for development in Latin America. To this end, our grantmaking encouraged fiscal and legal reforms designed to stimulate Mexican philanthropy:

  • Removing the arbitrary cap on nonprofits’ administrative expenses.
  • Lifting restrictions on tax deductibility for non-governmental organizations that are not charities.
  • Easing burdensome compliance procedures, such as annual applications to renew tax status.
In-Country and Diaspora Philanthropy Grants Authorized in 2006
 
2006 Highlights

Thanks to the efforts of our Mexican grantees, 2006 tax reform legislation in Mexico included provisions to make human rights organizations (including budget monitoring groups) eligible for tax deductibility. This change marks a significant advance for the nonprofit community.

In May 2006, the Tijuana Community Foundation won an unprecedented two-year legal battle allowing it to expand its grantmaking activities to a broader range of organizations. Although it had received Hewlett Foundation funding several years ago to support environmental organizations working on the U.S.–Mexico border, the Community Foundation learned that it was restricted from making grants to many of these groups. With its court victory, the Community Foundation now has permission from taxing authorities to make these grants.

2007 Goals for Mexico
 
  • Support grantees working to improve the effectiveness of non-governmental organizations and stimulate in-country donations
  • Strengthen specialized service providers for nonprofits
  • Analyze public funding available for non-governmental organizations, and develop policies to help provide public funding for organizations that promise equal access and transparent application procedures

For more information, please visit the Foundation Web site.