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The nonprofit sector in Mexico has a limited size and scope, despite of the urgent need faced by millions of citizens that do not have access to the most basic needs. Although Mexicans are regarded to be supportive and generous, they tend to engage in philanthropic activities and volunteering only sporadically and through informal means. Therefore, the fundamental problem faced by the sector is the lack of institutionalization and a poor legal and fiscal environment. The current paper analyzes the origins of the sector in Mexico to identify some of the underlying factors that have influenced it and that have limited its correct development. Then, it evaluates the current status of the sector and enumerates some of the causes that are preventing current organizations from expanding and serving an increased clientele. Finally, it proposes a set of solutions, aimed to eliminate the superfluous legal and fiscal restrictions, as well as to motivate an enhanced cooperation between the government and civil society in order to provide people with the necessary relief. [ABSTRACT FROM AUTHOR]