Since the enactment of the NPO Law, many organizations, including the Japan NPO Center, have been striving to create an encouraging and supportive environment for the nonprofit sector to grow and flourish. Here are some examples of key concepts that underpin this effort:
The NPO Law was also revolutionary because it regulated information disclosure for the first time in the history of Japan’s corporate system. Under previous corporate systems, the policy was for the government to supervise project plans, reports, budgets, and account settlements, with no specific regulations for public information disclosure.
However, the NPO Law prioritized citizen supervision over government oversight, and it provided detailed regulations for information disclosure. One method requires NPO Corporations to submit the necessary paperwork to their jurisdiction office within three months following the end of each fiscal year. This office then makes these documents available for public inspection. A second method requires NPO Corporations to keep copies of these submitted documents at their own offices, making them available for inspection upon request from interested parties.
The Japan NPO Center defines collaboration as “organizations of different types” bringing together “their respective resources” to fulfill “shared social goals” and “work together cooperatively” on “an equal footing.” When a nonprofit can’t solve a particular problem alone, it may collaborate on projects with the government or a company. This specific meaning of the word “collaboration” (協働 – kyodo) first came into use in the 1990s.
Collaboration with the government encompasses a wide range of activities. This includes work in fields like public health, medicine, and welfare (e.g., nursing, transportation, and food distribution services), as well as the management of public facilities and parks in urban planning, and initiatives in nonprofit support. Collaboration that leverages the respective strengths of both the government and nonprofits is flourishing.
In a collaborative relationship with the government, for “co-sponsored” and “co-managed” activities such as events and courses, nonprofits might contribute by utilizing their networks to provide ideas and volunteers, while the government may offer funding and and space. Conversely, when specific activities are conducted independently by nonprofits, the government sometimes provides partial cost coverage through “assistance” and “aid” using public funds.
On the other hand, it has been pointed out that despite claims of equal partnership, there is a danger that government-nonprofit “collaboration” could actually lead to the government using nonprofits as cheap subcontractors in the name of “collaboration.”
Collaboration between nonprofits and companies is increasingly diverse, from environmental and artistic fields to areas like community development, youth support, regional revitalization, disaster relief, and addressing social welfare challenges.
Up until now in Japan, this has primarily been in the form of corporate philanthropy, such as donations and goods provided to nonprofits. However, with the recent spread of CSR (Corporate Social Responsibility) and the growing focus on corporate sustainability and ESG (Environmental, Social, and Governance) investing, this has been shifting from a one-sided relationship to a more mutual one. In this evolving partnership, nonprofits are utilizing their expertise and on-the-ground knowledge to benefit corporate activities and achieve shared social impact.
Specifically, nonprofits have been involved from the planning stage in a range of initiatives that have yielded positive results. These include organizing events and creating pamphlets to educate employees on volunteering, developing environmentally friendly products, composing social and environmental reports for companies, and even developing financial commodities tailored for nonprofits.
NPO Support Centers are locally or regionally based nonprofits dedicated to supporting other nonprofit organizations. They are also known as Intermediaries or Management Support Organizations (MSOs).
These centers operate under various management models: some are established and managed directly by the government; others have government-provided facilities but are managed by a nonprofit under a government contract; and many are entirely set up and managed by a nonprofit.
They typically offer a range of services, including:
While precise numbers are hard to estimate, there are over 200 NPO Support Centers across Japan. Beyond these local centers, other support organizations exist that focus on specific topics like environmental protection or international aid, rather than a particular geographic area.