1. Lourdes Sanz Transparency and Accountability in a nutshell: The Mexican Experience Cemefi

2. 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

3. 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

4. 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

5. 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. Resources Involved Cemefi

6. 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

7. 350 CSOs have accomplished optimum level throughout Mexico 8 Alliances with local foundations and membership organizations Local alliances building: State and Municipal Govmnt / Corporations / CSOs and Foundations Results

8. 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

9. 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

10. 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

11. THANK YOU! Cemefi Lourdes Sanz-Moguel Effectiveness and Services Director lourdes.sanz@cemefi.org Cerrada Salvador Alvarado 7, Col. Escandón Delegación Miguel Hidalgo, Distrito Federal CP 11800 MEXICO Tel. +52 (55) 5276 8530 www.cemefi.org www.oscdigital.org www.hacesfalta.org.mx