Private Philanthropy for Development in Mexico

4. Key lessons and way forward

This report highlights the characteristics and key developments of Mexico’s philanthropic sector. Based on data from 328 domestic organisations, it provides an overview of the sector’s size, strategies and obstacles, and compares resource flows with international philanthropy and official development assistance. Based on this analysis, the chapter puts forward recommendations to further improve philanthropy’s engagement in promoting sustainable development.

Recommendations

1. Increase transparency and collaboration in the philanthropic sector by promoting and facilitating data-sharing

Collecting more data on domestic philanthropic giving in Mexico is essential to address existing knowledge gaps in the funding landscape, identify priority areas for support and foster greater collaboration among philanthropic actors. Data from the OECD survey reveal that around one-third of foundations encounter challenges in identifying partners with shared objectives. All respondents also agree that increased transparency could facilitate stronger partnerships with other foundations and development stakeholders. However, the low survey response rate – only 62 out of 296 foundations with valid contact information –reflects persistent obstacles such as survey fatigue, limited institutional capacity and a lack of trust in data-sharing processes.

In this context, the public availability of the SAT’s data registry represents an important step forward in improving the understanding of the philanthropic sector. This registry has become a key data source for recent analyses of domestic philanthropy in Mexico (e.g. (Butcher García-Colín, 2022[1]; Cemefi, 2023[2]). Nevertheless, important information – such as the sectoral allocation of donations – is missing and not all financial flows are properly reported in the database. These limitations underscore the urgent need to streamline data collection processes and promote a culture of open data-sharing by public authorities. Strengthening reporting obligations and offering clearer guidance for philanthropic actors would not only improve transparency but also serve the government’s own interest in designing more effective partnerships and policies. A more comprehensive understanding of private giving could also help identify complementary roles for public and philanthropic funding. To address these limitations, future research efforts should concentrate on developing comprehensive and simplified OECD data capture architecture for philanthropic organisations. This would enable foundations to input data on a rolling basis while leveraging artificial intelligence (AI) tools to categorise and harmonise the information collected.

2. Simplify administrative procedures and establish a unified legal framework to strengthen the formalisation of the philanthropic sector

Mexico lacks specific legislation defining and regulating philanthropic entities, which are generally considered part of the broader non-profit sector. The legal framework for philanthropic organisations remains fragmented, with oversight dispersed across multiple national- and state-level regulatory systems. Establishing a clear and unified legal definition and framework for philanthropic foundations at the national level would provide greater legal certainty, enhance transparency and enable more accurate monitoring of philanthropic contributions to development goals.

At the same time, complex and burdensome administrative procedures have discouraged many organisations from seeking authorised donee status – a prerequisite for issuing tax-deductible receipts. As of today, only about one-quarter of charitable organisations have obtained this status, with many continuing to operate outside the formal regulatory framework.

Reducing bureaucratic barriers and streamlining the application process to become an authorised donee could facilitate greater formalisation of the sector. Broadening access to authorised donee status would also enhance the traceability of philanthropic flows, strengthen compliance with fiscal transparency standards and contribute to building a more robust, transparent and collaborative philanthropic ecosystem in Mexico.

3. Strengthen co-operation between the public and philanthropic sectors

There is a clear need to improve co-ordination and information exchange between public authorities and philanthropic entities and overcome the current climate of distrust. Currently, over two-thirds of the foundations surveyed report limited or no engagement with federal government bodies and other governmental agencies in the design and implementation of their projects.

Establishing structured platforms for dialogue and promoting open data-sharing mechanisms would facilitate greater strategic alignment and enhance the overall impact of development initiatives. A recent collective letter signed by 1 518 charitable organisations in October 2024, expressing their willingness to collaborate with the new administration of Claudia Sheinbaum Pardo, marks a positive step toward stronger public-philanthropy partnerships.

4. Addressing geographical inequalities by allocating funding to regions with high levels of poverty

Despite persistent levels of extreme poverty in Mexico, domestic philanthropic funding remains highly concentrated in urban and economically dynamic regions. Regions that are most affected by poverty only receive average levels of funding.

Given their local knowledge and flexibility to take on risks, domestic foundations are uniquely positioned to direct a larger share of funding to underserved areas with high poverty incidence where support is both most needed and least available. By doing so, domestic foundations can play a transformative role in reducing regional disparities and helping to combat extreme poverty.

Conclusion

This report marks an important starting point for the OECD Centre on Philanthropy’s engagement in Mexico, offering a first-of-its-kind overview of domestic philanthropic giving in the country. It sheds light on a range of critical issues, including the legal and regulatory environment, funding patterns, operational practices and challenges.

Findings highlight that the legal framework governing private philanthropy remains fragmented and recent policy changes have increased operational constraints for philanthropic organisations. The sector is highly concentrated, with a small number of large foundations accounting for a significant share of funding, much of which is directed toward urban areas where many foundations are headquartered. As a result, domestic philanthropy does not sufficiently reach Mexico’s poorest regions.

In terms of sectoral allocations, domestic philanthropy is primarily directed toward health, education and social infrastructure. This contrasts with international philanthropic funding, which focuses more on governance and civil society, and with official development assistance (ODA), which exhibits broader coverage across sectors such as humanitarian aid, environmental protection and reproductive health.

These findings are based on the available data; however, coverage remains incomplete for domestic philanthropy and, to a lesser extent, international philanthropy. In contrast, data on official development assistance (ODA) are comprehensive and transparent. Nevertheless, incomplete data are particularly evident in domestic sectoral allocation for which this report provides a first estimate. Strengthening data quality will be essential to deepen understanding and guide evidence-based policymaking. The OECD Centre on Philanthropy will continue to support this effort through ongoing research and engagement with stakeholders in Mexico.

Looking ahead, areas for future research could include examining other Latin American countries with unified legal structures to better understand how these frameworks differ from Mexico’s and their potential implications for philanthropic activity. Further analysis is also needed to explore how funding is distributed across sectors and regions, particularly to explain why certain areas – such as environmental protection and reproductive health – receive comparatively limited support. Similarly, in the Mexican context, it would be valuable to unpack sub-sectoral allocations in more detail, especially within the category of social protection, which emerged as the top-funded sub-sector.

References

[1] Butcher García-Colín, J. (2022), Generosidad en México III, Fuentes, causes y destinos, México: Porrúa, CIESC y Tecnológico de Monterrey, http://www.porrua.com.

[2] Cemefi (2023), Compendio Estadístico del Sector no Lucrativo - Segunda edición 2023, https://www.cemefi.org/centrodedocumentacion/11568.pdf.