Trend & Trendsetters

Giving in Japan Today and Tomorrow
Series Introduction

A Snapshot of the Social Sector—And Why It May Finally Be Poised for Change

Japan is often described as a country where empathy and collective well-being are deeply held values. Yet when it comes to charitable giving and nonprofit activity, the numbers have long told a different story.

In 2020, total individual donations in Japan amounted to ¥1.2 trillion—approximately $8.08 billion. That represents just 0.23% of the nation’s GDP. In comparison, individuals in the United States donated more than $374 billion in the same year, or 1.37% of GDP—nearly six times the proportion.

This disparity cannot be explained by differences in wealth or generosity alone. It also reflects how Japan’s social sector is structured—and the barriers that have historically constrained its growth, shaping both how and how much the country gives to charitable causes.

“Despite the support from the social environment, the social sector has not yet become the main player in creating social innovation.”​ (5)

In October 2024, the United States-Japan Foundation commissioned a landmark study from the Japan Fundraising Association (JFRA), from which all citations are taken. The report offers an insightful comparison between the two countries and suggests that Japan may be on the cusp of a transformation in how it funds and supports social change.

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Executive Summary from JFRA

Japan’s social sector, while still emerging compared to that of the United States, stands at a pivotal stage with significant growth on the horizon. Both individual and corporate donations are on the rise, while reforms to public interest corporations and trusts are poised to create a more flexible system. Collaboration between corporate and social sectors is progressing, driven by partnerships led by Keizai Doyukai, the Impact Startup Association, and the Japan Association of New Public.

Additionally, younger business entrepreneurs are establishing impact-driven foundations, reflecting a growing interest in family governance and intergenerational wealth transfers. Contributions from high-net-worth individuals (HNWIs) through bequests, trusts, and funds are anticipated to increase. Meanwhile, the impact investing market is expanding at a remarkable pace, and the mobilization of catalytic capital from dormant deposits has also begun.

This blog is a three-part series that explores Japan's civil society ecosystem, the arrangement of non-profit organizations, players and policies, and the investing activity that is transforming it. The report will serve as a roadmap for USJF’s mission shift to a greater focus on Japanese civil society support. Here, we start by understanding the present: how Japan’s nonprofit sector is organized, why it struggles to attract support, and what makes its giving ecosystem distinct. 

(Please note that at times, the comparisons between the U.S. and Japan data are not entirely equivalent, as there are fundamental differences in systems, definitions, and data collection methodologies.)


Giving in Japan Today and Tomorrow


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