Lourdes Sanz

Transparency and Accountability in a

nutshell: The Mexican Experience

Cemefi

Mexican context:

108 million inhabitants

40% living in poverty -20% in extreme poverty-

Current narcotraffic violence lead to decrease of investment and emigration

Less than 8 000 CSOs authorized to extend tax deductible receipts

Less than 250 grantmaking foundations

Lack of legal framework specifically meant for grantmakers

Cemefi

The Challenge

Grantmaking focused more on problem solving than on strategic philanthropy, or in transit from traditional philanthropy to strategic social investment

More than half grantmakers lack:

Grantmaking methodology;

Solid selection criteria;

Grantmaking established programs;

Public events for information on impact, results and positioning.

Small number of CSOs known and well positioned Difficulty on getting information on CSOs.

Cemef

Process

Research on Philanthropy and Civil Society Field

Development of a tool that works as: For Grantmakers (Foundations and Corporations):

Grantees selection criteria Grantees strengthening program

For CSOs:

Accountability and Transparency Standards Management Improvement Positioning Raising visibility

Alliances with local foundations and membership organizations: Alliance methodology

Capacity building tools for allies

Development of: workshop and handbook for participant CSOs

Cemefi

Research

Tool Development Team (Working group conformed with Cemefi´s members´ representatives, staff and board members)

Pilot program

Staff operational team

Grants received from: INDESOL (federal government social development institute) and from Kellog Foundation.

Alliance building methodology and capacity building tools for allies developed.

ResourcesInvolved

Cemefi

1. Formally constituted according to current legislation

2. Tax exemption and authorization to extend tax

deductible receipts by Mexican authorities

3. Mission, vission and objectives properly formulated

4. Verifiable address and telephone number: proper instalations according to social cause

5. Annual report : resources application, activities,

results and impact achieved

6. Board members different from staff members

7. Staff in payroll (labor law compliance)

8. Volunteers working on organization´s programs

9. More than three years of operation

10. More than three income sources

Tool: Indicators

350 CSOs have accomplished optimum level throughout Mexico

8 Alliances with localfoundations and membership organizations

Local alliances building: State and Municipal Govmnt / Corporations / CSOs and Foundations

Results

Results

CSOs accountability and public trust in the field has increased

Federal, State and Local Governments are supporting the initiative:

Federal Social Development Institute is funding promotion and workshops associated with IIT

Two state governments and a city government are supporting local CSOs to comply with standards as a mean to support philanthropy development

One state government has adopted the standards as grantees´ selection criteria

Cemefi

Results

20 Foundations have complied with optimum level indicators (14 of them –CF- have complied with other standards as well)

12 corporate and independent grantmakers have adopted the tool as grantees´selection criteria and/or strengthening tool for their grantees

Development of Standards for CSOs Professional Advisors and Consultants :

Tool development and implementation

26 Specialized CSOs advisors and consultants have complied

Local intersectorial alliances building

Cemefi

Need to develop more grantmaking tools for foundations and for corporate social responsibility programs involving grantmaking

Need to increase peer exchanges between grantmakers: corporations and foundations (Affinity group started 2010)

Need to systematize experiences and work in case studies in the philanthropic field: best practices

Need to increase advocacy for social causes as well as for the philanthropic field in general

Need to increase professionalization, accountability and raise visibility for CSOs

Lessons Learned

Cemefi

THANK YOU!

Cemefi

Lourdes Sanz-Moguel Effectiveness and Services

Directorlourdes.sanz@cemefi.org

Cerrada Salvador Alvarado 7, Col. Escandón

Delegación Miguel Hidalgo, Distrito Federal

CP 11800 MEXICOTel. +52 (55) 5276 8530www.cemefi.org

www.oscdigital.org www.hacesfalta.org.mx