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An Outlook of Japanese Grant-Making Foundations

Foundations and Their Chartering Agencies (Group A)


In Japan incorporated foundations, including grant-making foundations, are established upon approval by a government agency. The individual or organization wishing to establish a foundation applies to the government agency whose field of jurisdiction corresponds most closely to the aims and activities of the proposed foundation and negotiates with relevant officials for approval. The government agency that grants approval is the foundation's chartering agency. The foundation must submit financial reports and activity reports to its chartering agency every year, together with its proposed activity plan and budget for the coming year.

For this reason, in most cases, a foundation's program falls within the jurisdiction of its chartering agency. The foundation that focuses on scholarships is, for example, chartered by the Ministry of Education, Culture, Sports, Science and Technology, whereas the foundation that focuses on social welfare is chartered by the Ministry of Health, Labor and Welfare. When a foundation's programs fall within the jurisdictions of more than one government agency, it may be chartered jointly by plural number of government agencies.

Chartering agency is not limited to the central government. If a foundation's activities are restricted to one prefecture, that prefecture's governor's office or board of education may be the chartering agency.

Figure 2 shows the number of foundations in Group A chartered by various government agencies. Designated public interest corporations (tokutei koeki hojin), which are privileged in soliciting tax-free donations from individuals and business corporations, are also indicated in this figure.

Figure 2. Number of Foundations by Chartering Agency

ME: Ministry of Education, Culture, Sports, Science and Technology; MHLW: Ministry of Health, Labor and Welfare; METI: Ministry of Economy, Trade and Industry; MoFA: Ministry of Foreign Affairs; MLIT: Ministry of Land, Infrastructure and Transport; MPHP: Ministry of Public Management, Home Affairs, Posts and Telecommunications; MAFF: Ministry of Agriculture, Forestry, and Fisheries; ME: Ministry of the Environment; CO: Cabinet Office; MOF: Ministry of Finance; Oth: Other Agencies; Pref: Prefectural governor's offices or boards of education

At present the Ministry of Education, Culture, Sports, Science and Technology has jurisdiction 401 foundations in Group A, the largest number, followed by the Ministry of Health, Labor and Welfare (128), the Ministry of Economy, Trade and Industry (84), and the Ministry of Foreign Affairs (41). In addition to the foundations chartered by the central government agencies, 396 foundations are chartered by the prefectural governor's office or prefectural boards of education.

36% of all foundations in Group A are granted approval as designated public interest corporations; however, because of the criteria for approval, the percentage of designated public interest corporations are different in each government agency.


Introduction / History and Trends / Foundations and Their Chartering Agencies / Size of Assets and Grant Programs / Features of Grant Programs

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