The National Institute for Social Development (INDESOL or Instituto Nacional de Desarrollo Social) is the organization in charge of registering and monitoring nonprofit organizations in Mexico. There has been a steady increase in the number of charitable organizations registered since the 1990s. As of December 2017, INDESOL had registered a total of 38,363 charitable organizations.
In October 2021, The National Institute for Social Development (INDESOL) reported that the Federal Public Administration (FPA) has supported 14,000 CSOs with the disbursement of 1,611 million pesos to contribute to economic and social development actions.
History
Following the passage of the Law for Promotion of Activities Carried out by Civil Society Organizations in February 2004, the regulations applied to registered CSOs and the federal registry for CSOs became active by November 2004.
In July 2015, journalists reported evidence in which the Proacceso Foundation and company Enova have received 1.7 billion pesos by the federal government and the State of Mexico in the span of six years, but have not been subject to government audits or evaluations that prove that the funds are being allocated for their stated purpose of improving education within primary schools.
In September 2017, following the Puebla Earthquake, CSOs made large contributions by providing humanitarian aid to the affected population. This prompted national recognition of the role of CSOs in Mexican civil society.
Nonprofit organizations status
Mexico recognizes four types of nonprofit organizations: civil associations (AC), private assistance institutions (IAP), civil society (CS), and trusts. These types of organizations are eligible to receive benefits when registered under the Income Tax Law and/ or the Law for Promotion of Civil Society Organizations. To be eligible for registration, the nonprofit organization must follow proper administrative regulations, including using the designated accounting system, and submit annual reports to the Commission of Promotion of Activities for Civil Society Organizations that includes information on activities, achievements, and their income sources and expenditures. Governmental registration is voluntary, but registered nonprofit organizations are permitted to participate in the Federal Public Administration (FPA), consisting of the Presidency of the Republic of Mexico, the secretaries of state, and other governmental agencies, to confer with authorities, in order to promote their own organizational objectives and to help implement policy.
Definition
Created by the Civil Code for the Federal District (CCDF) in 1928, civil associations are composed of individuals united in a common purpose that does not include generating profit and falls under the boundaries of the law.
By contrast, private assistance institutions (IAPs) specifically provide social and humanitarian assistance. Like civil associations they must respect state law and operate with private means, while not seeking profit for their activities.
Political advocacy
The enactment of the Law for Promotion on Civil Society Organizations in 2004 provided the framework for nonprofit organizations to participate in development policy-making in Mexico. It encourages freedom of speech and assembly, so long as organizations do not disrupt the established law and order and do not contradict existing laws. CSOs are permitted to organize to engage in influencing the direction of proposed legislation. Beginning in December 2013, nonprofit organizations are permitted to undertake activities to influence legislation, on the condition that these activities are not in the interest of a particular donor. All political activities must be included in the organization’s transparency report.