By: Luis Gerardo Ramírez Villela
Civil society organizations must conduct their day-to-day operations in accordance with the normal operation of any business, regardless of their legal status (i.e. civil association, civil corporation, private assistance institution, etc.).
Below is a brief description, for each area, of the basic obligations that organizations must fulfill.
Corporate
In this regard, every organization must maintain its corporate records, just as commercial companies do, to keep track of its operations. They must also prepare the minutes of the General Associates Meetings and Board of Directors meetings.
Regarding their operations, organizations must enter into the contracts or agreements necessary for the ordinary course of their business, including, but not limited to, donation agreements, collaboration agreements, etc.
Accounting/Tax
From this perspective, organizations must maintain their accounting records like any other business. Specifically, authorized donee organizations must maintain stricter records and controls regarding the issuance of tax-deductible receipts (CFDIs) that comply with the tax regulations applicable to the donee.
In the case of donations from abroad, donors may grant them under the Double Taxation Avoidance Agreement (Convenio para Evitar la Doble Imposición) with that country, provided the donee is listed in the corresponding annex of the current Miscellaneous Tax Resolution (Resolución Miscelánea Fiscal).
Regarding tax obligations, organizations must file the corresponding tax returns (monthly, quarterly, or annually), which must also include the deductibility of the aforementioned donations in each fiscal year.
Regulatory Compliance
In this area, organizations must comply with all applicable regulations concerning anti-corruption, personal data protection, and other applicable provisions.
They must also have internal manuals and codes for their operation and functioning, as well as the necessary information and documentation regarding labor matters.
Labor
Like any other company, organizations with employees must enter into the corresponding individual employment contracts and register them with the appropriate labor authorities.
It should be noted that there may be specific situations where individuals are not employees (volunteers, independent service providers, or interns), in which case the relationship with each person must be properly documented to avoid any potential issues.
It is very important that civil society organizations seek appropriate advice, since their operations are similar to those of any other commercial entity.
