The Monarch Fund (MF) is a conservation strategy based on economic incentives for forest owners in the core area of the Monarch Butterfly Biosphere Reserve (MBBR). It began with payments for the transfer of forest use rights acquired prior to the publication of the Reserve’s decree on November 10, 2000. The payments for forest use rights ended in 2008, which allowed the transition to a Payment for Environmental Services (PES) scheme based on the area conserved, increasing the amount with National Forestry Commission (Conafor) contributions. 

The MF was created as an endowment fund within the Mexican Fund for the Conservation of Nature (FMCN) with a contribution of US$7.5 million, this endowment generates annual interests that are transferred yearly to a trust. Annually, the Technical Committee of the trust identifies the land that has not been deforested and grants payments to 34 communities.