Mexico Tax Authority Revokes Charitable Status for Some NGOs

Mexico’s Tax Authority Revokes Permits for Over 100 NGOs

Mexico’s Tax Administration Service (SAT) has revoked the tax-deductible donation status of more than 100 non-governmental organizations, citing compliance issues related to transparency and the scientific basis of their research. The move, announced on January 9th, impacts organizations across a range of sectors, including those focused on competitiveness, education and public policy analysis.

The revocations do not prevent the NGOs from receiving donations, but eliminate the tax benefits for donors, potentially impacting funding levels. According to the SAT, the organizations failed to meet requirements outlined in the Income Tax Law (LISR), specifically regarding documentation proving the scientific nature of their investigations – a requirement tied to their authorization status. The SAT detailed that organizations must demonstrate their activities align with the stated objectives in their founding documents and have supporting validation from a government institution.

The affected groups include the Mexican Institute for Competitiveness (IMCO), Mexicanos Primero, and México Evalua, organizations known for independent studies and evaluations of government performance. IMCO attempted to secure accreditation through the Ministry of Science, Humanities, Technology and Innovation (SECIHTI), but the SAT determined SECIHTI lacked the authority to grant “authorized donor” status. This highlights a potential bureaucratic hurdle for NGOs seeking to regain their tax-deductible status.

SAT officials insist the actions are based on technical criteria, not political motivations. Gari Flores Hernández, SAT’s General Administrator of Revenue Collection, stated the agency “does not see social reasons, does not see partners,” emphasizing that decisions are made based on compliance with tax requirements. Flores reiterated that over 270 organizations lost their authorized-donee status in 2025, and that the SAT provides organizations with an opportunity to address any irregularities before finalizing a revocation.

The SAT’s actions follow a broader trend of increased scrutiny of NGOs in Mexico, particularly those receiving foreign funding. While the SAT maintains the current crackdown is focused on legal compliance, the timing raises questions about potential government pressure on civil society organizations. A recent report from Riviera Maya News highlighted similar concerns about transparency and compliance issues, while other sources point to a growing pattern of restrictions on organizations critical of the government.

The agency has stated that organizations can reapply for authorized-donee status once they demonstrate their research meets the required scientific standards. However, the process for re-authorization remains unclear, and the SAT has not specified a timeframe for review. The SAT also noted that for any process where the law doesn’t specify a deadline, the authority has up to three months to complete it.

This situation is unfolding against a backdrop of increasing global concern over the operating space for civil society. The crackdown on Mexican NGOs echoes similar developments in other countries across the Americas, where governments are increasingly seeking to control funding and restrict the activities of organizations perceived as critical or challenging to the status quo. Observers will be watching closely to see whether the SAT’s actions represent a temporary enforcement of existing regulations or a broader effort to curtail the influence of independent civil society organizations in Mexico.