Charitable Activities of Border Maquiladoras

Results from BPP’s survey show that a majority of maquiladoras do provide charitable donations of cash and/or in-kind contributions on a regular basis. However, two facts must be noted: First, most charitable giving appears to be less concentrated at levels less than $10,000/year for most facilities; and second, a core percentage of maquiladoras – approximately one-quarter or one-third – do not appear to be active at all in philanthropic activities (see graph 2).

Anecdotal comments from interviews undertaken as part of this study imply that the above results may be a factor of the tax structure for maquiladoras, and that they have little operating cash of their own from which to provide large amounts of cash contributions. Some comments from maquila operators suggests that individual executives of maquiladora plants may “pool” their money, and provide larger amounts of funds either to local trade associations (which then make charitable contributions), Rotary Clubs, or via elected officials (which then turn the money over to charitable groups).