Law prevented domestic philanthropic funding
After 71 years of one-party rule in Mexico, the election of Vicente Fox in 2000 brought a wave of optimism and opportunity for broader social change, and accelerated the transition to democracy in the country. Societal expectations and demands led to the growth, expansion, and changing role of civil society organizations (CSOs) in a more democratic Mexico. However, there was concern about the long-term support and sustainability of organizations and the growing need to strengthen the capacity of CSOs and foster an improved enabling environment for domestic philanthropy.
During this period there was a growth of community foundations in Mexico, which was part of a global trend to build the field of philanthropy in the democratizing world. This movement to boost the strength of community foundations was supported by US-based funders who invested in the creation and capacity building of community foundations.
However, domestic philanthropy in Mexico was limited because Mexico’s fiscal framework (including tax deductibility for donations) restricted domestic philanthropy to traditional charities. This did not include the broad spectrum of organized civil society engaged in social and environmental change work (e.g. environmental, human rights, transparency and accountability, gender-based rights, civic, public security reform, etc.). These organizations, which were expanding in the context of Mexico’s democratic transition, were burdened by the fiscal framework and therefore largely reliant on international funding.
Community foundations had a mix of international and domestic support. Since Mexican donor institutions could themselves only make donations to traditional, narrowly defined charity groups, this limited their ability to serve local communities or partner as re-granters to international funders wanting to reach social or environmental change organizations.
All this came at a time when international funders were entering Mexico due to the opportunities that the democratic transition process presented. This is where the Hewlett Foundation enters the scene.
