ICNL and partners publish report on CSO Fiscal Framework in Mexico


ICNL and its working group partners in Mexico – the Instituto Tecnologico Autonomo de México (ITAM), Incide Social, and communications consultant, Cristina Galindez – are pleased to announce the publication of the report Definition of a Fiscal Agenda for the Development of Civil Society Organizations in Mexico (available in English and Spanish).

The report has a threefold purpose:

  • Present a snapshot of the CSO sector in Mexico that includes information on the number of CSOs operating in Mexico, their areas of activity, and sources of financing;
  • Outline conclusions reached during a series of regional and expert fora convened in the summer and fall of 2005, and
  • Summarize several proposed changes to Mexico’s fiscal framework as it affects organizations authorized to issue tax-deductible receipts to donors (authorized donees).

These proposals include:

  • Harmonizing the universe of activities covered by the Federal Law Promoting CSO Activities and the Mexican Income Tax Law (LISR) so that organizations covered under the promotion law are eligible to become authorized donees.
  • Revising the LISR Regulations to eliminate or raise an existing cap on a CSO’s administrative expenses. Currently, authorized donees are precluded from devoting more than five percent of donations or the revenues they receive to cover their administrative costs.
  • Providing training and capacity building assistance on the existing framework and future changes to the framework to tax administration service administrators, especially in state offices, professionals, such as accountants, notaries and attorneys, and CSO administrators of the organizations themselves

Civic Freedom Monitor: Mexico