Legal & Financial

Mexican Non-Profit Status (A.C.)


In the last 20 years charitable organizations in Mexico have expanded to include fields like the environment and human rights. However, tax incentives were limited to only a few charitable purposes, despite the emergence of organizations in new public interest fields that influenced public policy and had significant impact.  For more than a decade, organizations therefore pushed for a law that recognized the social importance of civil society activities.

 

In 2004, the Federal Law for the Promotion of Activities Undertaken by Civil Society Organizations ("The Law on Promotion") was enacted in order to provide a legal framework at the Federal Government level for non-profit organizations and a mechanism for the participation of non-profit organizations in the social development of Mexico. This legislation opened up possiblities for greater Government collaboration with mutual responsibility and transparency.

 

Amigos de La Cruz de Huanacaxtle, A.C. is a recognized Mexican non-profit Civil Association (A.C.)

It is noted in the Public Registry of Property and the Federal Taxpayers Registry.  To be eligible to receive government funds, an organization must be listed in the Registry of Civil Society Organizations (CLUN).

 

In order to be recognized, the constitution and bylaws must first be approved along with accounting and banking procedures.

 

Amigos receives most of its funds as grants from Banderas Bay Charities, Inc., it is also registered with Hacienda (Mexican equivalent to the IRS or Revenue Canada) as a foriegn agent.  This registration is to inhibit money laundering.  The Money Laundering Legislation classifies donations as a "vulnerable activity." As Amigos is closely monitored by the Mexican government; monthly reports are filed with Hacienda through the accountant and/or attorney.  

 

Amigos treasurer Amy Welch works with the offices of accountant Gabriela Rojas from Teran Rojas and attorney David Connell.  Their offices are in the Puerto Vallarta marina office complex.  The banking is through Scotiabank at Plaza Marina, where Jorge Angel is our contact.