In a 1994 interview at his home in Austin, Texas, author James Michener said a key ingredient missing in Mexico's formula for success was philanthropy. But since Michener's death in 1997, Mexico has been changing rapidly. The number of philanthropical organizations has been growing apace.

The Mexican Center for Philanthropy -- founded in Mexico City by Manuel Arango in 1988 -- is affiliated with 50 foundations and 220 nonprofit organizations. The third edition of its Directory of Philanthropic Institutions listed 4,246 institutions and groups.

Philanthropy is becoming more of a force on the Tijuana-San Diego border. The International Community Foundation in San Diego, formed in 1996 by former state Sen. Lucy Killea, has been directing much of its attention to nonprofit groups helping Mexicans in the areas of health, education, community building and the environment.

In Tijuana, an independent spinoff of the foundation came to life this year. The Fundación Internacional de la Comunidad is headed by Jacinto Astiazaran Rosas, who runs a major accounting firm. Mexicans are givers. They will dig into their pockets for a good cause or after hearing an individual's tale of woe. "Mexico gives -- but impulsively," said Killea.

This has often meant that giving was not well organized or consistent. "Charity is more of what we have in Mexico. We are trying for the institutionalization of philanthropy," Astiazaran said. Astiazaran said many Mexicans eventually tire of being pressed for money and are frustrated at not seeing results. That's where the new foundation comes in. It will collect the money and report on what the donation has helped accomplish. The foundation will also help nonprofit organizations apply for grants.

"Mexico needs the institutionalization of philanthropy and the professionalization of the nonprofit organizations themselves -- through financial planning, budgeting and controls," Astiazaran said.It is easier now in Mexico for groups to get nonprofit status that allows donors to take tax deductions. Astiazaran said President Vicente Fox has pledged to further improve the tax framework for nonprofits.

This year, Tijuana's Center for the Integration and Recovery of Alcohol and Drug Addicts applied for tax-exempt status for the first time, said Director Miguel Angel Marroqun.Corporations are getting into philanthropy in a big way. The Danone Mexico dairy products company since 1997 has been donating a percentage of sales to a fund to help poor children. This year, in a program running from May through July, Danone has collected nearly $1 million. Carlos Slim, the richest man in Latin America, told Business Week his Telmex and Grupo Carso foundations have combined funding that should reach $1 billion this year. He said they paid for 17,000 scholarships and "bail for 5,000 first-time arrestees accused of minor crimes, so that they wouldn't sit for years in jail waiting for the slow justice system to move."

Killea, 78, has seen the International Community Foundation go from five funds and less than $300,000 in assets to 32 funds and nearly $1 million. She is stepping down as chief executive officer; a new one is to be named soon. Astiazaran, 59, chairman of the San Diego foundation the past two years, will be succeeded in July by San Diego community colleges Chancellor Augie Gallego.

The foundation is truly international. One of its funds is helping build schools in remote areas of Yunan province in China. And a fund set up by Sempra sends money to the United Way in Nova Scotia. Could this be a fulfillment of sorts of the North American Free Philanthropy Agreement?

David Gaddis Smith can be reached at (619) 293-2211 and at david.smith@uniontrib.com