Panel: “Global Transformations: Opportunities for supranational articulation”

A perspective on philanthropy and social field in Mexico

Salvador, Bahia, Brazil. April 4, 2008.

Lourdes Sanz Moguel Effectiveness and Services

Director

600 million inhabitants

300 million living in poverty

Brazil, Mexico and Argentina among 20 major economies in the world;

4.3% constant annual growth until 2015 is needed to reduce poverty in the region by 50%.

In spite of economical growth during the last five years, extreme poverty has not been reverted.

Latin America in numbers

Fuente: Cepal, 2006

Mexico in numbers

Fuente: Cemefi

Almost 2 million Km2

104 million inhabitants

15 million in rural areas

25 million do not have access to basic services

45 million living in poverty

17 million in extreme poverty;

180,000 communities with under 500 inhabitants each, concentrate extreme poverty.

Only 20% pay taxes properly

22,000 million USD were sent into the country in 2007 by Mexican residents in US.

Non profit field in Mexico: in numbers

Fuente: Cemefi

20 000 non profits working in social causes

85% of CSOs´ income comes from fees and services provided, 9% comes from government and only 6% from philanthropy

5 752 Organizations endorsed by the SHCP (Tax Office) as “Deductible Gift Recipients (2006)

250 Grantmaking foundations.

461 000 people working in the field (includes volunteers and employees)

Tendencies on the growth of organizations endorsed by SHCP (Tax Office) as

“Deductible Gift Recipients”

1426

2714

3421

405144504512

5150550056005700

51285394

5752

0

1000

2000

3000

4000

5000

6000

1995 1997 1999 2001 2003 2005 2007Fuente: Cemefi

Deductible Gift Recipients 2006 in each State

Fuente: Diario Oficial de la Federación 2007

No. STATE Total Donatarias Autorizadas

No. STATE Total Donatarias Autorizadas

1 Aguascalientes 66 17 Morelos 85

2 Baja California 149 18 Nayarit 18

3 Baja California Sur 24 19 Nuevo León 384

4 Campeche 21 20 Oaxaca 100

5 Coahuila 171 21 Puebla 191

6 Colima 63 22 Querétaro 143

7 Chiapas 80 23 Quintana Roo 54

8 Chihuahua 267 24 San Luis Potosí 107

9 Distrito Federal 1744 25 Sinaloa 126

10 Durango 31 26 Sonora 181

11 Guanajuato 209 27 Tabasco 27

12 Guerrero 50 28 Tamaulipas 100

13 Hidalgo 66 29 Tlaxcala 16

14 Jalisco 376 30 Veracruz 178

15 Estado de México 320 31 Yucatán 141

16 Michoacán 238 32 Zacatecas 26

        COUNTRY TOTAL 5752

National Survey on Philanthropy and Civil Society (ITAM - 2005) found out giving habits in Mexico are as follows:

77% give to beggers, 82% give to the church and other religious organizations 91% reports that at least once, has given to an organization; 79% prefer to give to a person in need rather than to an institution.

Fuente: Encuesta Nacional Sobre Filantropía y Sociedad Civil. Instituto Tecnológico Autónomo de

México (Proyecto sobre Filantropía y Sociedad Civil), 2005.

Giving in Mexico

Grants in Mexico

Institutional Grants(According to Authority Report)

Amount of grants (million USD)

Annual Reserve for government grants (SHCP-2007 Budget)

2,550

Other grants reported 1,600

Fuente: Cemefi

Grantmaker Field composition %

Corporate Foundations 31

Corporate Social Programs 21

Independient and Family Foundations 26

Community Foundations 12

Intermediaries (pass through) 5

Operational Foundations (funds only its own projects and programs)

5

Grantmakers in Mexico, by type and State

Entidad Federativa foundations

Comunitarias

foundationsIndependientes

Y Familiares

foundations Intermediarias

foundationsOperativas

foundationsEmpresariale

s

Programasempresarial

esTotal

Baja California Sur 2           2

Chihuahua 2 3   2 1   8

Coahuila 1           1

D.F.   29 4 3 35 13 84

Durango         1   1

Estado de México   1   1 2   4

Guanajuato 1           1

Jalisco 1 1     1   3

Michoacán           1 1

Morelos 2           2

Nuevo león     1   1 1 3

Oaxaca 1           1

Puebla 1 1   1     3

Querétaro 2           2

Quintana Roo 1       1   2

Sonora 1 3     1   5

Tamaulipas 1           1

Veracruz 1           1

Total 17 38 5 7 43 15 125

Main Grantmaking Foundations in Mexico

Foundation Name Endowmentmillion US

Annual Grants million US

Fundación Grupo Carso 3,000

Fundación Teletón 45

Fundación Telmex 1000

Nacional Monte de Piedad 800 200

Fundación Gonzalo Río Arronte 600

Fondo Mexicano para la Conservación de la Naturaleza 1000 5

Fundación Mary Street Jenkins 80 1.3

Becas Magdalena O. Vda. De Brockmann 40

Fundación BBVA Bancomer 15

Fundación Wal*Mart 13

Comité Cívico de los Distribuidores de Ford 5

Fundación del Empresariado Chihuahuense 3 6

Fundación Merced 7

Compartir Fundación Social 5

Comité Cívico de los Distribuidores Ford 5

Fundación BBVA Bancomer 15

Fundación Manuel Arango 4

Fundación Mexicana para la Salud 3

Corporativa de Fundaciones 1

Fondo Nestlé para la Nutrición 1

Fundación Pfizer 1

Grantmaking Foundations Role

• To support and strengthen innovative ideas and strategies– Mobilize and develop leaderships– Widen perception and increase information about what can be done– Provide practical know how and tools for action

• Focused strategic philanthropic action,

• Flexibility and capacity to provide proper response to needs

• Social investment for public good

• Sustained support to effective CSOs and CSOs programs and projects

• Credibility and legitimacy as a basis to promote and mobilize participation, resources, interest, as well as convene people from different sectors in the community

• Collaboration and synergic action in order to increase impact

Historic overview of philanthropic field in Mexico

First Period: 1521-1860, Colonial Period, Independence and Reform

• Strong presence of Catholic Church in the creation of charities

• Church funded charities with its own wealth and with the gifts form filigrees

• Church´s charities were mainly: attention to the poor, hospitals and schools.

Second Period: 1861-1960

• Strong presence of Government in social issues, particularly after the nationalization of ecclesiastic goods during the Reform.

• In 1899 a decentralized government entity is created: JAP, to supervise and guarantee the use of gifts and legacies for the community, in the donor's intended social causes

• With Mexican Revolution, State consolidates public welfare policies: schooling, health, social security, homing.

Third Period: 1961-1985

• Increased citizenship awareness of social needs

• Increased participation in social issues

• New social causes are identified and supported

• Increased number of civil society organizations working in social causes, both for majorities and minorities

• Philanthropic civil society organizations emergence as a field

Fourth Period: 1986- up to date

• Promotion of philanthropy and voluntary work

• Promotion of corporate social responsibility

• Creation of new grantmaking foundations

• Increased participation in social causes

• New federal legislation approved recognizing social value of civil society organizations´ action and promoting government support for their activities. (2004)

• Fiscal Reform (2007).- Establishing a limit for tax deductible gifts (unlimited before, thus, step back)

Conclusions

There is an important tradition on social help, mainly for humanitarian reasons, closely related to religious motivations.

This tradition is expressed throughout society in every level, and is present also in legal framework.

In Mexico there is not a tradition of institutionalized philanthropy, understanding it as:

• social help linked to business or corporate giving to public good additionally to taxes

• endowed funds under the responsibility of Boards, managed by professionals and protected by specific frameworks

Conclusions

There is still not enough development of legal and fiscal frameworks that stimulate philanthropy or reflect comprehension of the field's relevance in the construction of public good.

Until recently, culture of philanthropy, social responsibility and voluntarism is being promoted.

Currently foundations´ grants are mainly applied to urgent needs rather than to development strategies.

Traditionally corporations tend to give through government institutions

Conclusions

Media promote charity more than grants or social investment.

Even though governments state they want civil society participation in the construction of public good, they fear opening the door to real growth and consolidation of a strong wide civil society field.

There is a surprising increase in the number of CSO and grantmaking foundations.

There is a strong debate on grantmaking effectiveness and transparency.

Challenges

Increase culture of citizenship: value the role of citizen participation in public matters;

Revalue and recognize the important role of civil society organizations as well as the need of their presence and contribution in democratic societies;

Strengthen corporate social responsibility

Recognition of private philanthropy role in the provision of private resources, additional to taxes, that contribute to public good.

Creation and adaptation of legal and fiscal frameworks to promote CSOs field growth and respond to current needs

Who should be involved?

Community: Citizens´paticipation, commitment, action Schools, universities, academic field: research, information and

analysis Civil Society Organizations: increased number, impact,

accountability, quality services Corporate field: increased, effective and strategically directed

corporate social responsibility actions and programs Grantmakers: increased strategic social investment Governments: recognition, promotion and support Congress: Legal and fiscal frameworks

656 Members: 187 Associates (84 foundations and

associations, 67 corporations y 36 individuals) 449 Afiliattes (mainly operative CSOs) 18 Users (government entities interested in

getting Cemefi´s services)

Membership Association created in 1988

El Centro Mexicano para la Filantropía, A.C. CEMEFI

Maria de Lourdes Sanz MoguelEffectiveness and Services Director

Centro Mexicano para la Filantropía, A.C.Cda. De Salvador Alvarado # 7, Col. EscandónMéxico D.F. CP11800 MéxicoTel.: (52) 5277-6111 Fax: (52) 5515-5448http://www.cemefi.orge-mail: cemefi@cemefi.org / lsanz@cemefi.org

Thank you