Private Philanthropy for Development in Mexico

1. Introduction

Background and objectives of this research

Mexico’s philanthropic sector has experienced remarkable growth in recent decades. With the creation of large corporate foundations and those established by ultra-high-net-worth individuals such as Carlos Slim, private philanthropy has become a growing source of funding for the country´s social and economic development. Foundations in Mexico come in many different forms. They have emerged to address issues ranging from economic development and environmental protection to human rights.

Despite this growth, a detailed empirical understanding of the size, the volume of its giving and the challenges Mexico’s private philanthropic sector faces is still missing. Previous research has mainly used the open data registry of the Tax Administration Service (Servicio de Administración Tributaria, SAT) to analyse the income and funding of registered donors in Mexico (Cemefi, 2023[1]; Butcher García-Colín, 2022[2]).1 However, the registry is not limited to private philanthropic foundations but also includes universities, libraries and non-governmental organisations (NGOs). In addition, it is incomplete and lacks detailed information on the sectoral distribution of funds.

This report focuses on the activities and funding patterns of private domestic foundations engaged in development efforts. To this end, the OECD Centre on Philanthropy collected and analysed primary data from 62 foundations,2 using a standardised grant-making survey and an organisational survey, and secondary data from the SAT database for an additional 269 foundations. The report also examines international philanthropic flows from 27 cross-border organisations active in Mexico, providing a comparative perspective.

This research is part of a broader initiative by the OECD Centre on Philanthropy to analyse philanthropy’s role in emerging economies and provide recommendations for addressing critical goals outlined in the Agenda 2030. Previous studies have examined domestic philanthropy in the People’s Republic of China, Colombia, India, Nigeria and South Africa.

Sample and methodology

This study is based on data and insights collected from Mexican philanthropic organisations as well as 14 interviews with foundation leaders, academics and other stakeholders between September 2023 and February 2025.

Definitions and sample frame

This study defines private philanthropy for development as “transactions from the private or non-profit sector having the promotion of the economic development and welfare of developing countries as their main objective, and which originate from foundations’ own sources such as endowments; donations from companies or individuals (including crowdfunding); legacies; income from royalties; investments (including government securities); dividends; lotteries and similar. In addition, private philanthropy for development also includes financing towards basic or applied research that directly benefits developing countries or indirectly benefits developing countries through global public goods” (OECD, 2021[3]).

As there is no legal category in Mexico that corresponds to this definition, the OECD created a sample frame of organisations that met the following criteria in the reference year 2021. To be included in the sample, the organisation must:

• finance projects or other organisations

• not be primarily funded by the public sector

• generate income from private resources totaling around half a million USD or more in 2021

• have as its primary objective the promotion of Mexico’s economic and social development

• have its headquarters in Mexico.

To verify the first three criteria, the OECD relied on publicly available data from the SAT registry while the last two eligibility criteria were verified through desk research, mainly through foundations’ websites. However, not all foundations in Mexico are registered in the SAT database and even when they are, publicly available information on their funding sources is often incomplete. As a result, the sample may inadvertently exclude eligible foundations or include ineligible ones, affecting the accuracy and representativeness of the results.

Survey response and uptake

The OECD selected 328 organisations that meet these criteria, including many of Mexico's largest domestic foundations. However, due to incomplete, unavailable or outdated contact details, only 296 could be invited to participate. From this initial sample, 62 responded to the organisational survey and 30 to the financial survey (Table 1.1). Despite the low response rate to the survey, which warrants caution in drawing definitive general conclusions about the philanthropic sector in Mexico, the overall sample size is consistent with OECD research in other countries and still provides important indicative findings on the state of philanthropy in Mexico.

Table 1.1. OECD survey uptake in Mexico

Survey	Total sample	Invited to participate (valid contact information)	Participated	Response rate (percentage)	Secondary data	Total organisations included
Organisational	328	296	62	20.95	NA	62
Financial	328	296	30	10.13	298	328

The socioeconomic context in Mexico

Understanding Mexico’s socioeconomic challenges helps contextualise the role of private philanthropic financing for the country’s national development. This section presents the evolution of some key economic indicators and outlines the most pressing challenges the country faces.

Despite significant progress over the past decade, Mexico continues to face high income inequality and poverty and informality (OECD, 2024[4]; OECD et al., 2024[5]). Although higher minimum wages and government transfers have reduced the share of the population in moderate poverty, the level remains high by international standards. Moreover, insufficient targeted support for the most vulnerable has kept the rate of extreme poverty, affecting 7% of the population, largely unchanged since 2016 (Figure 1.1). In 2020, 64% of Mexico’s population lived in households where at least one principal earner held an informal job – close to the LAC average (64.9%). However, the share of fully formal households (36.0%) remains well below regional leaders such as Uruguay (65.4%) and Chile (59.2%), highlighting persistent informality challenges (OECD et al., 2024[5]; OECD, 2024[4]).

Figure 1.1. Moderate poverty has declined but extreme poverty remains unchanged

Share of people in poverty as a percentage of the total population

Note: This multi-dimensional poverty indicator by CONEVAL defines moderate poverty as individuals with insufficient income for basic needs (food, goods and services) and at least one social deficiency. Extreme poverty refers to individuals unable to afford essential food even if spending all income on it, coupled with at least three social deficiencies.

Source: (CONEVAL, 2022[6]).

Insufficient resources and infrastructure for quality education continue to limit opportunities, particularly for vulnerable groups. Mexico has the lowest tax-to-GDP ratio among OECD countries at 17.7%, which is also below the LAC regional average of 21.3% (OECD et al., 2025[7]; OECD et al., 2024[5]) Despite pressing spending needs in areas such as education, public spending in Mexico is low at less than 30% of GDP compared to an OECD average of nearly 50%. While pension funding has increased as a percentage of GDP, investment in education has declined. This decline is particularly concerning given the severe impact on Mexico’s educational outcomes of one of the longest COVID‑19 school closures in OECD countries. Regional disparities in the quality of education and high dropout rates, with many students leaving the system before completing secondary education, continue to hinder social mobility and economic progress (OECD, 2024[4]).

Gender-based discrimination remains another structural challenge to inclusive development. According to the 2023 Social Institutions and Gender Index (SIGI), discrimination against women and girls in social institutions – i.e. laws, social norms and practices – is relatively low. Mexico’s results in the SIGI are in line with the Latin American and Caribbean average score (22, both) and ahead of the global average (30).3 Legal reforms have played a key role in advancing gender equality in social institutions: since 2019, child marriage has been outlawed without any exceptions, and following landmark amendments to General Law on Women's Access to a Life Free of Violence, there has been comprehensive legal protection against all forms of gender-based violence since 2022. Nonetheless, discrimination persists in practice as deeply rooted social norms continue to determine women’s bodily integrity, rights and opportunities. For instance, 32% of the population think that it is acceptable for a man to beat his wife under certain circumstances and more than half of the population believe that children suffer when mothers work for pay (53%) and problems arise when women earn more than men (53%). While 38% of managers in Mexico are women – above global and regional averages – only 15% of firms are led by women. There is still a great deal of room for change in terms of women’s access to decision-making positions. Finally, some gaps in legal protection remain, including unequal divorce rights, limited access to safe abortion and the absence of equal pay guarantees (OECD, 2023[8]).

In light of these challenges, there is a significant opportunity for domestic private philanthropy to play a role in financing local development. Although philanthropic resources are only a fraction of government funding, they can advance development goals by funding high-risk initiatives that governments may be less able to support (OECD, 2021[3]). By offering innovative solutions and expertise, philanthropic organisations can act as a catalyser for Mexico’s development.

The political and legal context of private philanthropy in Mexico

Mexico has a long tradition of private giving and its philanthropic sector has undergone significant transformations over the last few centuries. While the Catholic Church historically played a significant role in co-ordinating philanthropic activities during the colonial period, the secularisation movement of the 19th century led to the emergence of independent charitable organisations (Wiepking and Handy, 2015[9]). In the following century, under the dictatorship of Porfirio Díaz and the 71-year rule of the Partido Revolucionario Institucional (PRI), philanthropic activities were closely aligned with government priorities. However, the political and economic crises of the late 1980s prompted the sector to become more autonomous and critical of government policies (Wiepking and Handy, 2015[9]). Since then, philanthropy in Mexico has professionalised and expanded its reach beyond traditional charity, including fields such as environmental and human rights. In addition, numerous corporate foundations have emerged, acting as the social philanthropic branch of their respective companies (OECD, 2020[10]).

As the sector grew and professionalised, foundations, alongside civil society, started advocating for a legal framework that would acknowledge their role in national development and establish a basis for public support and collaboration with the government. While there is no dedicated legal framework governing foundations, a number of laws were passed to support the ‘’third sector’’ more broadly. For example, in 2004, after a decade of negotiations, the Federal Law on Support for the Activities of Civil Society Organizations (the “Law on Support”) was passed. This allows charitable organisations registered at the Federal Registry of Civil Society Organizations to be eligible for government and state funding. Furthermore, the government enacted tax provisions that encourage philanthropic activity within the framework of the Income Tax Law (Becker and González Ulloa, 2018[11]).

The legal framework for private philanthropy is fragmented

Unlike most other Latin American countries, Mexico lacks a unified legal structure for private philanthropic organisations. Instead, they are governed by the same laws as other charitable organisations and commonly registered as either Civil Associations (Asociación Civil; AC) or Private Assistance Institutions (Instituciones de Asistencia Privada; IAP). Other legal forms for philanthropic organisations, though less common, include Institutions of Private Beneficence (Instituciones de Beneficencia Privada, IBP) and Associations of Private Beneficence (Asociaciones de Beneficencia Privada, ABP). Provided they remain non-profit, ACs can undertake activities beyond traditional charity, including human rights advocacy, environmental protection, research and member-focused initiatives. Besides foundations, this legal form also applies to universities, museums, sport clubs, knowledge centres and other non-profit entities. As of June 2024, there are around 43 000 ACs in Mexico. By contrast, IAPs focus solely on charitable services funded by private assets and operate under state-level supervision. This legal category exists in only about half of Mexican states, with their number at around 6 000 (ICNL, 2025[12]).

The regulatory framework for Mexico’s philanthropic sector is thus fragmented, with oversight dispersed across multiple national and state-level regulatory systems. In addition to the Federal Law on Support from 2004, 23 out of 32 Mexican states have enacted specific laws to support charitable organisations at the state level (Butcher García-Colín, 2022[2]). These laws are not always compatible with each other and sometimes create additional bureaucratic hurdles for charitable organisations. For example, in several states, charitable organisations are required to register at both federal and state levels and, in the case of IAPs, with the relevant Private Assistance Board. Furthermore, the support that charitable organisations can receive is not uniform throughout the country and depends on the state in which they are registered and based (Butcher García-Colín, 2022[2]).

Like many other countries, Mexico encourages philanthropic activity by providing income tax exemptions to charitable organisations. This exemption applies to income from donations, membership fees, bank interest and from selling property or leasing real estate (Council on Foundations, 2023[13]). Additionally, charitable organisations that meet certain criteria can issue tax-deductible receipts, including for international donations from certain countries, such as the United States. Mexican corporations can deduct up to 7% of their previous year’s taxable income. This is comparatively lower than the limits set in most other OECD countries with available data (OECD, 2020[14]).

To qualify for these tax benefits, charitable organisations must obtain an “authorised donee” status from the Mexican Tax Administration (Servicio de Administración Tributaria; SAT), which requires adherence to strict reporting, administrative and operational standards. Authorised donees must limit administrative costs to no more than 5% of their donations (Wiepking and Handy, 2015[9]), conform their statutes to a standard model provided by the SAT (Council on Foundations, 2023[13]) and submit annual applications and audited financial reports. These requirements are uniform, irrespective of an organisation’s size and budget, which can pose challenges for smaller organisations with limited resources (OECD, 2020[14]). The SAT reviews and renews this status annually, based on an organisation’s compliance with its tax obligations (Council on Foundations, 2023[13]). If an organisation loses this status, it has one year to requalify, after which it must either operate without tax-exempt status or transfer its assets to another eligible entity (Lilly Family School of Philanthropy, 2022[15]). As of 2023, less than a quarter of the 48 035 registered charitable organisations in Mexico hold authorised donee status (Cemefi, 2023[1]).

Recent policy changes reduced financial support and tightened operational rules for private philanthropy

Since the election of Andrés Manuel López Obrador in 2018, relations between the government and the philanthropic sector have become increasingly strained. In February 2019, his administration eliminated all federal funding for the third sector, including the Social Co-Investment Programme (Programa de Co‑Inversión Social, PCS), which had supported the third sector in assisting vulnerable groups. Additionally, the government disbanded the National Institute for Social Development (INDESOL), an agency that had provided financial and technical support to charitable organisations (Lilly Family School of Philanthropy, 2022[15]). Furthermore, the government has expanded the grounds on which a charitable organisation can lose its status as an authorised donee and conducts increased auditing efforts through the SAT (Layton, 2020[16]).

Reforms to the income tax law also restricted other funding avenues for foundations in Mexico. A 2020 reform of the Income Tax Law revoked the “authorised donee” status of charitable organisations whose income from non-mission-related activities exceeded 50% of their total revenue. The reform also ended the value-added tax (VAT) exemption for authorised donors and imposed income tax on unrelated business activities exceeding 10% of annual income (Council on Foundations, 2023[13]). Another reform in 2021 to the Income Tax Law imposed a new limit on tax-deductible donations for individuals. By grouping donations with other deductible items such as healthcare costs, retirement contributions and mortgage interest, the reform effectively forces individuals to prioritise among these categories, with the overall deduction ceiling set at 15% (Council on Foundations, 2023[13]).

In response to national policy changes, several states in Mexico have taken steps to mitigate the impact on charitable organisations. The Mexican states Jalisco, Chihuahua and Nayarit, for example, have adopted legislative reforms to strengthen and refine the legal framework for CSOs. Key measures include the formal recognition of networks and collectives as legitimate civil society actors and the inclusion of CSOs in budgetary decision-making processes that directly affect their operations (Council on Foundations, 2023[13]).

Overall, philanthropic organisations in Mexico are operating within an increasingly constrained environment, marked by a reduction in public support and a tightening regulatory and fiscal framework. At the same time, Mexico faces ongoing development challenges – many of which were further intensified by the COVID-19 pandemic. These circumstances underscore the importance of an active philanthropic sector to complement public efforts and support local development.

Chapter 2 presents an overview of available data on domestic philanthropy in Mexico for the period 2020‑23, examining its scale, scope and geographical distribution. In addition to mapping philanthropic resources, the chapter explores the types of beneficiaries and target groups supported by foundations, the strategies employed to share information and foster collaboration, as well as the tools used to measure impact. It also analyses how foundations have been affected by the COVID-19 crisis and recent legal reforms. Chapter 3 examines cross-border philanthropic flows and official development assistance (ODA), comparing their funding with those of domestic funders. The report concludes with policy recommendations to strengthen the contribution of domestic philanthropy to Mexico’s development agenda.

References

[11] Becker, C. and P. González Ulloa (2018), “Las Organizaciones de la Sociedad Civil en México: Hacia una reforma de la LFFAROSC”.

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

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

[6] CONEVAL (2022), Medición de la Pobreza, https://www.coneval.org.mx/Medicion/MP/Paginas/AE_pobreza_2022.aspx.

[13] Council on Foundations (2023), Global Grantmaking Country Notes.

[12] ICNL (2025), Mexico, https://www.icnl.org/resources/civic-freedom-monitor/mexico.

[16] Layton, M. (2020), Mexican President Targets U.S. Philanthropy, but It’s Mexican Civil Society That Could Take the Hit.

[15] Lilly Family School of Philanthropy (2022), The 2022 Global Philanthropy Environment Index in Mexico.

[4] OECD (2024), OECD Economic Surveys: Mexico 2024, OECD Publishing, Paris, https://doi.org/10.1787/b8d974db-en.

[8] OECD (2023), “Social Institutions & Gender Index Dashboard”, https://www.oecd.org/en/data/dashboards/social-institutions-gender-index/restricted-access-to-productive-and-financial-resources.html?oecdcontrol-18ae15c5e9-var1=MEX.

[3] OECD (2021), Private Philanthropy for Development – Second Edition: Data for Action, The Development Dimension, OECD Publishing, Paris, https://doi.org/10.1787/cdf37f1e-en.

[10] OECD (2020), Bringing foundations and governments closer: Evidence from Mexico, OECD Publishing, Paris, https://doi.org/10.1787/7332f360-en.

[14] OECD (2020), Taxation and Philanthropy, OECD Tax Policy Studies, No. 27, https://doi.org/10.1787/df434a77-en (accessed on 23 December 2024).

[7] OECD et al. (2025), Revenue Statistics in Latin America and the Caribbean 2025, OECD Publishing, Paris, https://doi.org/10.1787/7594fbdd-en.

[5] OECD et al. (2024), Latin American Economic Outlook 2024: Financing Sustainable Development, OECD Publishing, Paris, https://doi.org/10.1787/c437947f-en.

[9] Wiepking, P. and F. Handy (eds.) (2015), The Palgrave Handbook of Global Philanthropy, Palgrave Macmillan UK, London, https://doi.org/10.1057/9781137341532.

Notes

← 1.  Besides analysing all organisations in the database, Butcher García-Colín (2022[2]) conducts an additional analysis of the income and funding patterns of nearly 300 donating entities, defined as organisations that donated over MXN 1 million annually to five or more civil society organisations.

← 2.  A total of 62 foundations completed the organisational survey, of which only two also submitted responses to the financial survey.

← 3.  The SIGI scores range from 0 to 100, with 0 indicating no discrimination and 100 indicating absolute discrimination.