Japanese Corporate Philanthropy

By Nancy R. London | Go to book overview

3
The Development of
the Nonprofit System

Economic growth and prosperity in Japan have led to an increased concern with and ability to provide for social welfare. At the same time, political pressure and the growing diversity of society have begun to alter traditional perceptions of what constitutes social welfare and by what means it ought to be looked after.

Social welfare, or social activities in the public interest, is normally provided through three different channels -- public institutions (i.e., the government or its agencies), private profit-making institutions (corporations), and private non-profit-making or voluntary organizations -- each of which has its own means and ends. In the case of profit-making organizations, activities are conducted primarily for economic gain, but indirectly, social welfare is advanced through research, provision of products and services, and employment. In the case of both government and nonprofit organization activities, the public good is more directly advanced (targeted), but while the government's motivation is essentially political, the voluntary organization's motivation is thought to be humanitarian or charitable.

The balance among these three different mechanisms and their degree of separation from one another varies from society to society and constitutes one of the major distinctions between Japan and the United States and, in particular, between Japanese and U.S.-style philanthropy. Japan has been, remains, and will probably continue for the foreseeable future to be much more reliant on government-provided services (and on corporate-provided services) than the United States is. I alluded earlier to some of the reasons for this. In addition, as mentioned in Chapter 2, the boundary between

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Japanese Corporate Philanthropy
Table of contents

Table of contents

  • Title Page iii
  • Preface vii
  • Acknowledgments ix
  • Contents xi
  • 1 - Introduction 3
  • Notes 8
  • 2 - Themes and Corollaries 10
  • Notes 20
  • 3 - The Development of the Nonprofit System 24
  • Notes 32
  • 4 - Establishing a Foundation Law and Practice 36
  • Notes 58
  • 5 - Taxation 66
  • Notes 90
  • 6 - The Philanthropic Process -- Management, Operation, and Grant Making 99
  • Notes 119
  • 7 - Recent Developments and Future Directions 123
  • Notes 129
  • Index 133
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