Connecting Community and Family Philanthropy in Latin America: Mexico

This report explores the dynamics of community philanthropy and family philanthropy in Mexico in order to inform efforts to strengthen the connection between the two. In terms of community philanthropy, our primary focus is upon Mexico’s community foundation model, which is the most institutionalized form of community philanthropy and a uniquely important actor in the philanthropic ecosystem. Wealthy families and family businesses in Mexico are known to have strong local ties and to prioritize place-based development, and Mexico has more community foundations than any other Latin American country. In terms of family philanthropy, we have cast a wider net, interviewing families who work closely with community foundations, have their own private or company-linked foundations, or use a mix of organizational vehicles for their philanthropy. We also interviewed a handful of philanthropists who have not worked with community foundations, in order to get a sense of the full range of options.

In a second phase, the researchers intend to apply the lessons learned in Mexico and refine the project’s research methodology so as to explore the community foundation model’s potential for success in other Latin American countries. The model’s importance cannot be overstated, as community philanthropy is a powerful
catalyst for strengthening local philanthropic ecosystems and cultivating a strong culture of generosity.

Family philanthropy is a longstanding source of charitable contributions in Mexico, with deep and abiding connections to the Catholic Church and faith; however, in recent decades, it has taken on a more secular orientation, like Mexican society as a whole. As Mexico is characterized by families retaining control of businesses and consortiums, so too is there a close relationship between family and business philanthropy. As wealth has grown dramatically, Mexico is at a pivotal point of generational transition. The next generation is actively
seeking new ways to channel their generosity and social commitment to foster greater shared prosperity across society.

On the other hand, the community foundation model was imported to Mexico from the U.S. in the 1990s (Landa, 2020, p. 3). This institutional form has been adopted and adapted to meet a variety of local contexts in about half of Mexico’s 32 states. One of the strengths of this model — which emphasizes the creation of
an autonomous organization that mobilizes mainly local assets to promote sustainable development in its geographic community — is its flexibility and the diversity of roles open to community leaders. These leaders, whom we term evangelizers, play a crucial role of promoting the model, along with other key private and public
actors, and connecting their efforts to broader national and global community philanthropy movements.

One of the key roles that a community foundation plays in serving the community’s evolving needs is strengthening its philanthropic ecosystem, which is a set of interconnected actors (including organizations, individuals, donor institutions, and knowledge brokers), the norms and regulations that mediate their interactions, and the cultural norms and values that shape society and behavior. Historically, Mexico has presented a challenging enabling environment, characterized by low social and institutional trust, a largely hostile government, and a historically small and underdeveloped sector. Thus, in the absence of a strong culture of formal philanthropy, the promotion of community philanthropy has been challenged on all fronts: to encourage people to engage philanthropically; to support and promote a nonprofit sector that is relatively underdeveloped; and navigate a regulatory environment that aims more at constraint than encouragement.

This research project has captured the insights from anonymous interviews of more than 50 family and community philanthropists, professionals, and thought leaders. The project’s Advisory Council, composed of 18 members, not only provided guidance and insight but critically important introductions.

The report seeks to distill those insights as well as other recent research to assess the current challenges facing philanthropy in Mexico and offer recommendations on how to strengthen the connections between generous, community-minded families and their local community foundations. In addition, we developed five organizational profiles to place those insights in specific contexts, a key consideration for community philanthropy. The profiles include four community foundations — COMUNIDAR (Fundación para Unir y Dar A.C., Corporativa de Fundaciones, Fundación Comunitaria Puebla, Fundación del Empresariado Yucateco (FEYAC) — and a unique funders’ collaborative based in Mexico City, Ensamble.

In light of a history of largely faith-based and often informal giving on the part of families and a dynamic set of relatively new community philanthropy institutions, we identified five opportunities to improve connections between the two. The opportunities were derived from our analysis of insights from current and potential supporters of Mexico’s community foundations and recent research. They are intended to inform what the advocates for the movement can do to expand and deepen their relationship with potential supporters. Foundations can act on these opportunities to create strategies tailored to Mexico’s diverse state-level contexts:

1. Write a Compelling “Gospel of Community Philanthropy” for Mexico. Foundations can raise awareness by articulating their value, developing case studies, and promoting the concept of community philanthropy to a broader audience.
2. Cultivate Evangelizers and Spread the Good News. Leaders and board members can act as ambassadors by promoting the foundation’s work and fostering relationships between civil society, the private sector, the public sector, and the community.
3. Craft Compelling Narratives That Highlight Impact and Enhance Trust. By emphasizing transparency and showcasing measurable impact, foundations can build trust and foster greater generosity among donors.
4. Focus on Collaboration, Learning, and Advocacy. Philanthropic families are eager for opportunities to learn — from each other and from experts — and community foundations can provide such opportunities by convening local partners, facilitating multi-party collaborations, and advocating for a better environment for civil society.
5. Cultivate a Broader and Deeper Philanthropic Culture. By expanding beyond current donors, community foundations can engage with a more diverse donor base, including younger generations and everyday givers, through meaningful philanthropic opportunities.

Additionally, the report provides discussion prompts to spark conversations among community foundation leaders and potential supporters. The aim of these discussions is to deepen the community’s understanding of the community philanthropy generally and the community foundation model in particular and pave the way for more place-based partnerships and collaboration. Together, these opportunities and dialogues can help strengthen the sector and expand its impact.