Highlights from the Global Social Investing Council: Mexico
By Jeff Hoffman, Program Director, The Conference Board Global Social Investing Council
Last week, I reported on some of the discussions regarding investment opportunities in Africa from the Global Social Investing Council’s May meeting. The meeting also hosted a session addressing corporate philanthropy in Mexico. In this post, I summarize some of the main issues that were discussed.
Mexico’s business sector is growing increasingly vibrant, with rising foreign direct investment paving the way for an emerging middle class. Along with this, philanthropy and volunteerism have become more widely embraced, particularly by Mexico’s private sector. Corporate donations are the single most important source of grants for Mexico’s nonprofit sector, contributing more than half of all grants in the country. Of the top 100 donors in Mexico, 32 are corporate foundations. It is therefore safe to say that business is having a significant philanthropic impact in the country.
The Conference Board’s Global Social Investing Council was hosted at the Mexico Cultural Institute of the country’s embassy in Washington, D.C. A general theme of the discussion was that companies are truly beginning to respond to social responsibility and sustainability in Mexico. Speakers cited growing momentum towards transparency and accountability in the Mexican philanthropy sector, evidenced by the recent launch of Funds in Plain Sight, a website that aims to make data on nonprofits and grants publicly available. Volunteerism is also becoming more common in Mexico, and corporations are beginning to offer an increasing number of programs for their employees every year.
Social enterprises growing
Mexico’s nonprofit sector may be relatively small, but it contains a growing body of innovative organizations that are addressing important issues.
Unfortunately, however, there is evidence of dwindling trust in institutions as a whole, which also affects Mexico’s nonprofits. According to a poll conducted by the Instituto Tecnológico Autónomo de México (ITAM), 80 percent of individuals prefer to give directly to people in need, rather than through foundations or other nonprofit organizations.
Fiscal mechanisms intended to favor the nonprofit sector, such as tax exemption and the ability to receive tax-deductible donations, have been impacted negatively by recent regulations to curb money laundering. For example, grants of $7,100 or more now require the chief executive of the granting organization to disclose personal information—a significant deterrent. Regulators are aware of the issue, and the hope is that intermediaries may soon be able to provide a solution.
For companies looking to enter the Mexican nonprofit sector, there are a number of intermediaries offering assistance to launch new programs. These include:
- Fondo Unido Mexico, the first affiliate of United Way outside of the US
- US-Mexico Foundation, which seeks to facilitate binational partnerships
- FUNDEMEX, whose goal is to create sustainable and inclusive value chains
- Synergos Institute, which has a representative in Mexico City
- Alternativas y Capacidades, AC, a nonprofit that offers technical assistance and training.
Speakers noted that companies in Mexico often lack the skills to effectively plan and implement corporate social responsibility or philanthropic programs, presenting an opportunity for interesting cross-border collaborations on skills-based volunteering.
Speakers
- Michael D. Layton, Director of the Philanthropy and Civil Society Project at Instituto Tecnológico Autónomo de México (ITAM)
- Woodrow Wilson Center’s Mexico Institute
- US-Mexico Foundation
- CEMEX
About the author:
Jeff Hoffman
Program Director
The Conference Board Global Social Investing Council
Jeff Hoffman is an accomplished corporate executive who has served on the global stage in the areas of corporate social responsibility, philanthropy, human resources, operations, special projects and events. Through board and commission leadership roles, he has a distinguished history working with non-profit, civic and government agencies on strategic direction and innovative programs. Jeff is president of Jeff Hoffman & Associates, a global corporate citizenship, philanthropy and civic engagement firm that enables businesses, organizations and individuals re-imagine a world full of hope, promise and opportunity. He also serves as Program Director for The Conference Board Global Social Investing Council.
