At the American Legion Post 14 Membership Meeting last week, the Commander introduced Minerva and Anabel from the Fundación Punta de Mita (Punta de Mita Foundation, or PMF), which, since 2007, has provided support to local communities in the Punta de Mita area.
They work with schools and opened a community center there. The PMF also has a regional strategy to strengthen other organizations that already exist and which serve communities in the Bay of Banderas area.
They do many workshops, provide feedback and support to local groups, expend community development funds locally, and manage funds for other organizations that are doing good work in the community but which do not have the budgetary capability to support the administrative costs that are necessary for having their own civil associations. The latter category is the one under which Post 14 was able to enter into a written agreement with the PMF whereby the PMF, for an administrative fee of 8%, manages the funds that Post 14 raises in the community. Thus, at a very small cost, the Post is able to continue its work serving youth and the community, while at the same time avoiding the enormous costs and administrative overhead that would be required to form and maintain its own civil association. The PMF builds alliances among organizations, creating synergy, with a staff of only four. They have 26 organizations with which they work, Post 14 being one.
The representatives explained issues relating to gifts made to community organizations, and that information, which will be written into our financial manual is provided here because it answers many of the questions that have been raised in our meetings over the years. It centers on the IVA (Impuesto al Valor Agregado) or the 16% Value-Added Tax. The IVA is paid to the federal tax authority in Mexico by businesses and by community organizations, unless they have status as an Organización Donitaria. An organization that holds the proper paperwork, designating it as Donitaria, is tax exempt.
When The American Legion, through its account with the PMF, decides to make a gift to an organization, it must determine whether or not that organization has Donitaria status. If it does, then the amount designated, for example 1,000 pesos, goes to the organization in its entirety. But, if the organization does not hold Donitaria status, then the 16% IVA must enter into consideration. If, for example, only 1,000 pesos are available, then the gift in itself must be limited to 840, so that 160, or 16% of 1,000 pesos, are available for the organization to pay the IVA. If, to offer another example, it is determined that the gift in itself must be exactly 1,000 pesos, then the Post must commit 1,160 ($1,000 pesos + 16% = $1,160) from its account with the PMF for that project. In projects that require the purchase of materials, the 16% does not come into consideration, because it has been computed at the outset in the price of the product that is being purchased; it must be shown on the factura (i.e., the bill) that is generated to document the purchase.
The Commander thanked the representatives of the PMF, and there was a round of applause by the members who much appreciated the content of the presentation and the high quality of the delivery.
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