Connecting Community and Family Philanthropy in Mexico: New Insights on Strategies and Challenges

• In Event: Civil society and philanthropy

Abstract

Although Latin America is among the most unequal regions in the world (Economic Commission, 2019; Oxfam, 2020), its wealthy families are reported to be the least philanthropic (Montaner 2000; Capgemini & Merrill Lynch, 2007). However, in recent years there have been indications of expanded philanthropic engagement among the wealthy, and the development of organizations to engage these donors (Sanborn & Portocarrero, 2005; Salamon et al., 2017). Especially intriguing is the growing interest in collaborative and place-based giving in Latin America, particularly in the community foundation model. This model, and family donors’ engagement with it, is most advanced in Mexico, fueled by its tradition of community engagement by family businesses (Olvera Ortega et al., 2020).

While this is a crucial time for the study and practice of family and community philanthropy in Mexico, research on these topics is sparse (Johnson et al., 2015; Butcher García-Colín & Sordo Ruz, 2016; Butcher, 2022; Layton, 2022). Both scholars and advocates for growing philanthropy in the region need better data and practical insights.

The research reported in this paper seeks to meet this need by using a rigorous methodology while collaborating closely with an Advisory Council of Mexican philanthropy experts and practitioners. It addresses the following core questions: How do wealthy families in Mexico think about and practice place-based philanthropy? How does the cultural, socioeconomic, and regulatory climate of Mexico affect the family-community nexus? What strategies seem to increase family donor engagement with institutionalized community philanthropy, based on past success as well as insider reflections?

To address these questions, the project utilizes multiple methods and data sources, including:

● Literature Review: This is focused on existing research about philanthropy in Mexico, and what we know about the community-family philanthropy connection.

● Qualitative Interviews: In-depth interviews have been conducted (in English and Spanish) with over 50 individuals including Mexican philanthropists and high-net-worth families, community foundation leaders, and experts. Interviews were translated, transcribed, and formally coded using MAXQDA.

● Case Studies: Five illustrative community case studies focus on learnings from novel community institutions and collaborative initiatives in different Mexican regions.

Analysis of this data is revealing several major themes that will become the core findings reported in the paper. These include:

● The essential networking and resource mobilization role of local “evangelistas” – central figures who are themselves exemplars of generosity and who advocate for a shared community giving institution.

● The challenges presented by common barriers such as occasional distrust of philanthropy and nonprofits (Layton & Mossel 2015), and the common, sometimes self-fulfilling perception that Mexican philanthropy is underdeveloped or struggling. One interviewee called this the sector’s “collective low self-esteem.”

● The lack of a shared language about community philanthropy, and low level of awareness of institutional forms, which impedes wider development. Many philanthropic families do not understand the value proposition of community foundations or other collaborations, and hear few stories of success.

● The focus of fundraising efforts primarily on the most elite families unnecessarily limits the pool of potential community donors.

References

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Butcher García-Colín, J., & Sordo Ruz, S. (2016). Giving in Mexico: Giving by Individuals. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 27(1), 322-347. Retrieved January 15, 2020, from www.jstor.org/stable/44668742

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Olvera Ortega, María de los Ángeles; Michael Layton, Gloria Lisbeth Graterol Acevedo, and Luz Magdalena Bolaños Martínez. (2020). Community Foundations in Mexico: A Comprehensive Profile 2009-2016 – Report Summary. Mexico City: Alternativas y Capacidades, A.C., Charles Stewart Mott Foundation, and Inter-American Foundation.

Oxfam. 2020. Latin American billionaires surge as world’s most unequal region buckles under coronavirus strain. Oxfam International. (September 1). https://www.oxfam.org/en/press-releases/latin-american-billionaires-surge-worlds-most-unequal-region-buckles

Salamon, L.M., Sokolowski, W. & Haddock, M.A. (2017). Explaining Civil Society Development: A Social Origins Approach. Baltimore, MD: Johns Hopkins University Press.

Sanborn, C., & Portocarrero, F. (Eds.) (2005). Philanthropy and social change in Latin America. Cambridge, MA: Harvard University Press.

Authors

• Michael Dennis Layton, Grand Valley State University

• Michael Moody, Indiana University Lilly Family School of Philanthropy