According to Cemefi´s Registry of Philanthropic Institutions there are more than 8,500 non profit organizations in Mexico. However, only 3,000 of them have been authorized by the Ministry of Finances to issue tax deductible receipts. This authorization forces them to a certain bookkeeping method and other legal requirements. Nevertheless, this does not assure the correct administration, transparency and the correct use of public and private resources.

On the other hand, society’s increasing need and claim for transparency and accountability among institutions is forcing them to set up adequate mechanisms to allow the public to know how the resources are being used. The non profit organizations should not be exempt of this requirement as they use public resources and their activities are in and for the public. As a response to this need and claim, the Third Sector must establish a methodology to validate and show the accuracy of their activities.

The Index of Institutionality and Transparency is an answer from and to the Third Sector, and is associated to the current government’s policy of accountability and transparency in public institutions and use of resources.