In recent years, we have witnessed the transcendence that altruism has had worldwide and everything that can be achieved through it. In our country, acting to help others has been steadily increasing, our society has been more empathetic in contributing to the change to the reality that exists for vulnerable groups.
Consequently, different non-profit organizations have emerged, which currently play an important role in actions that have improved the quality of life for the benefit of the community. Some of them have arisen as a response to temporary situations, and then stop operating; others in large numbers, have been created in order to help indefinitely, being structured in accordance with the Legislation of our country, professionalizing and obtaining authorization as an Authorized Non-profit that, once the requirements have been met, granted by the Tax Administration Service.
Obtaining the authorization of Donee to a non-profit civil organization brings with it a greater opportunity to obtain funds from potential donors for the activities to be carried out that are within its social purpose in favor of the community and vulnerable sectors.
In order to help civil organizations, we allow ourselves to publicize the three main aspects that must be considered when making the decision to form a Non-profit.
Constitution – Corporate purpose.
Regarding the different types of Non-profits, it is articles 79, 82, 83, and 84 of the Income Tax Law, which refer to the different activities of civil organizations subject to being non-taxpayers of Income Tax:
- Social Care
- Scientific or Technological Research
- Reproduction of endangered species
- Social development
- Financial Support
- Public works or services
- Museums and Private Libraries
Formality in the constitution
For this type of company or association to have legal personality, it is necessary to constitute themselves before a Public Notary. It will be the activities that the organization wishes to carry out that define the object of the organization at the time of its constitution. In addition to considering the following strict requirements embodied in the deed of incorporation:
Restrictions on the statutes.
- Declare that the organization must allocate its income, solely and exclusively to the activities that appear in its corporate purpose.
- Mention that the partners or associates may not have any type of benefit and / or remuneration from the organization.
- Describe the use of the organization’s assets.
- Expose the way to liquidate the organization if it’s the case.
However, it is important to emphasize the existence of Second Level Non-profit; organizations that serve as a channel between natural and legal persons, are finalized without an authorization, and the actions of contribution to an improvement of subsistence towards vulnerable groups in our country.
It is in the process of the constitution of the organization where transcendental legal aspects must be addressed, in order to avoid affecting that the organization can obtain authorization as an authorized Non-profit.
In our experience as part of the Legal Division in Terán Rojas & Asociados and advisors regarding the Constitution of Non-profits, I can assure you that civil organizations that wish to be constituted in this way, must do so hand in hand with professionals in the field.
As experts in the field, let us offer to contact you to solve your doubts and, if where appropriate, accompany you in the process you decide to start in this noble task of Giving to society.
Author: Claudia Lizzeth Encarnación González
Published on September 06, 2021
“In terms of article 89 of the Fiscal Code of the Federation in force, the content of this reproduction, exhibition, presentation, program, or transmission and/or the documents and/or examples used to expose it, may express positions that do not coincide with the criteria of the Mexican tax or judicial authorities. This reproduction or exhibition is not intended and may not be used by any person for the purpose of circumventing (i) a federal, local, or municipal tax, or (ii) the imposition of tax penalties in the United Mexican States.
Terán Rojas & Asociados is not responsible for the use or the criteria that any user may give or have derived from this reproduction or exhibition.” Likewise, the exhibitor is responsible for the originality and content of the work in front of the company and for the invasion or affectation of third-party rights that may be caused, so it is obliged to take out the company in peace and safety and to respond for the damages and / or losses that are caused.