In 1998, the word “NPO” entered the Japanese vocabulary with the establishment of the Law to Promote Specified Nonprofit Activities (hereafter, the NPO Law). At around that time, many books and commentaries were issued discussing the question of “what is an NPO,” leaving an impression that NPOs were a new and good thing for society, even if people weren’t sure what they were. The Japan NPO center (JNPOC) was created in 1996, and it became a Specified Nonprofit Corporation (conventionally known as “NPO Corporation”) in 1998. In a way, JNPOC was born at the same time as the very word “NPO.”
The first Executive Director of the Japan NPO Center, Mr. Yoshinori Yamaoka, explained “what an NPO is” through the following 6 points in his 1997 publication.
There is no simple answer as to whether NPOs (Nonprofit Organizations) existed in Japan before the enactment of the NPO Law. As there was no specific NPO Law, “NPO Corporations” (特定非営利活動法人 – Tokutei Hieiri Katsudo Hojin), as we know them today, certainly did not exist.
However, entities similar to NPOs have a long history in Japan, stemming from traditions such as the spirit of interdependence and cooperation among neighbors. Some degree of organized activity also existed in forms such as neighborhood and self-governing associations.
In the modern era, the 1896 Civil Code established a system for Public Interest Corporations, giving birth to the concept of private, nonprofit corporations. After World War II, other types of private nonprofit corporations, such as Social Welfare Corporations, were created. Additionally, from the 1960s onward, the student and citizen movements flourished, and it became common for people to express their views on society through various forms, including demonstrations and speeches.
During the 1980s and 90s, following Japan’s period of post-war economic growth, many Japanese people began to contemplate different forms of “richness” beyond just financial prosperity. They sought ways to actively participate in building society. This led to an evolution of the citizen movement; while it previously focused on expressing opinions, it now embraced more practical civic activities. People began implementing their own projects and making their own proposals on diverse topics, including welfare, the environment, and international relations.
However, the existing Public Interest Corporations operated under a system of government supervision, which significantly limited the freedom of private nonprofit activities due to its top-down administration. These Public Interest Corporations always functioned under a licensing system, requiring government guarantees for their nonprofit endeavors.
The search for a corporate structure that would allow for greater freedom in civic activities led to the “discovery” of NPOs, inspired by examples from other countries. This realization prompted civic activity groups, previously working in isolated fields, to recognize themselves as part of the broader category of “NPOs.”
In 1995, the Great Hanshin Earthquake struck, leading to a significant increase in volunteer opportunities for citizens. This surge in civic engagement bolstered support for an NPO Law. The political fluidity caused by the 1993 change of government also had an impact, ultimately leading to the enactment of the NPO Law in 1998.
*Yoshinori Yamaoka (writer and editor), “Lessons of the Foundation of NPOs” (1997, Gyosei)