Cross-cultural Perspectives on Cultivating a Culture of Giving

as viewed from Japan

Paul Tsuchido SHEW, Ph.D.

Understanding the Culture of Giving in a Cultural

Context

The Fundraising Context in Japan

Fundraising in Japan’s Christian Higher Education

Cultivating Culture in our Schools

Outline

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Understanding the Culture of Giving in a Cultural Context:

the Case of Japan

Part ONE

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3%

45%52%

Philan-thropyGov-ern-ment

Nonprofit Revenue Sources in Japan

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JAPAN USA

Individuals 0.04% 1.76%

Corporations 0.10% 0.12%

Total 0.14% 1.88%

Charitable Giving as % of GDP

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Giving Money Volunteering Time Helping a stranger

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Is philanthropy dead in Japan?

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Giving in Japanese Culture Cash gifts for children at the New Year

(otoshidama) Cash gifts at weddings and funerals Seasonal gift exchanges

in summer (chugen) and New Year (seibo) Gift-giving (omiyage) culture

With an expectation of something in return (okaeshi)

Understanding the Culture of Giving in Japan

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Giving as a social or relational obligation Motivated by duty (giri) Motivated by indebtedness (on)

Japanese Buddhist concept of charity is limited

Fundraising is most successful for natural disasters or humanitarian crises Generous donations for domestic & international

needs

Giving as a Social Obligation

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Japan has a culture of generosity,but

is uncomfortable with fundraising

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How is your culture generous?

How can you tap into that generosity?

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The Fundraising Context in Japan:The social and economic context that shapes

fundraising

Part TWO

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Individual income tax deductions on charitable contributions are minimal Only relatively few organizations qualify (recently changing)

Of approximate 40,000 NPOs, only about 120 are recognized by the National Tax Agency.

Most workers file taxes through their employers, so it is difficult to claim a deduction for charitable contributions

Donations to accredited schools can qualify But separate approval by National Tax Agency is

required

Taxes and Charitable Contributions

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Christians were influential in advocating for the liberalization of income tax deductions

Changes in the Tax Laws

Shigeaki Hinohara,Christian doctor

who advocated tax

reform15

Individual’s income tax deductions are restrictive Restrictions on organizations Deduction restricted to less than 40% of contribution

Example: (¥100,000 gift - ¥2,000) x 40% = ¥39,200 deductionSo with ¥7,000,000 income, result is only ¥5400 tax benefit

Deduction limit up to 25% of income Corporation’s income tax deductions are more liberal

Wider variety of organizations recognized Higher deduction limit

Tax benefit for corporate gifts. Less for individuals.

Taxes and Charitable Contributions

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Japan

US

Developing/Transitional

Developed

All Countries

0% 20% 40% 60% 80% 100%

PhilanthropyGovernmentFees

Comparison of Non-Profit Revenue Sources

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Japan

America

0% 20% 40% 60% 80% 100%

IndividualCorporation

Individual vs. Corporate GivingComparison

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Weak giving patterns for non-profit organizations including higher education

Fundraising is relatively new idea Fundraising as a career almost does not exist

Many Japanese are uncomfortable with fundraising Some resent giving as a social obligation Confluence of obligation and generosity

Strong support for school from alumni and parents

The Challenges and Opportunities

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Where does charitable funding come from in your country?

What are the challenges in your culture?

How can you overcome them?

What are the opportunities?20

Fundraising in Japan’s Christian Higher Education

Part THREE

Focusing especially on Aoyama Gakuin

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Western and especially American influence is important regarding fundraising

Fundraising activities have become the norm for Japanese schools Capital campaigns Student scholarships Special projects

Major universities in Japan have endowments, but still small

Fundraising is part of broader effort to engage alumni

Cultivating a Fundraising Culture in Higher Education

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Fundraising Office Not run by career professionals, but general staff Focus more on accounting than solicitation Grant writing for corporate donors

Multiple Fundraising campaigns Capital campaigns Student scholarships Support organizations

Separate committees organized for capital campaigns

Fundraising Activities at Aoyama Gakuin

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Passive – Provide information and opportunity without being pushy

Non-personal for most donations Personal relationships in Japan connect with social

obligations, which make fundraising uncomfortable. Target individuals

Primarily 1) alumni 2) employees 3) parents Target corporations

Especially companies of alumni

Fundraising Approaches

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¥51,618,000

¥2,420,183

¥185,430,000

IndividualsOrganizationsCorporations

Capital Campaign DonationsHonda Memorial International Conference Hall Building

Fund

$516,000

$24,000

$1,854,000

25

454

14 11

IndividualsOrganizationsCorporations

Number of Donors Honda Memorial International Conference Hall Building

Fund

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¥37,555,000

¥23,488,656

¥4,560,000

Individuals (193)Organizations (20)Corporations (218)

Student Scholarship DonationsFiscal 2012

$375,500

$235,000

$45,600

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Over ¥100,000,000 raised in one year from employees

Supports students who lost a family member or home in the earthquake, tsunami or nuclear disaster

Donations primarily from faculty and staff Arranged for employees to deduct donations from

salary

Great East Japan Disaster Victim Student Support Fund

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Alumni are very important Student recruitment Help with sports teams and extra-curricular activities Cheer our sports teams Donate

Alumni association is very important Independent fund raising efforts and office

Public Relations Office connects with alumni

Institutional Loyaltyand Alumni ContributionsOnly small percentage of alumni are

active.But we engage those with interest.

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How do laws in your country influence

fundraising?

Who can give to your school?

Who are your targets for fundraising? (Alumni? Parents? Corporations? Employees?...)

What are your opportunities for

fundraising?(Student scholarships? Special events? Sports teams?)

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Cultivating Culture:Creating Methodist Culture

in Methodist Schools

Part FOUR

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Aoyama Gakuin was founded by the Methodist church through many generous donors

Continues to celebrate our heritage of generosity Observe founding anniversary of school (worship) Recognize and remember significant patrons Celebrate alumni who donated to the school

Celebrating a Heritage of Giving

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出来る限り設けよう。出来る限り蓄えよう。出来る限り与えよう。

Gain all you can.Save all you can.Give all you can.

- John Wesley

Celebrating a Heritage of Giving

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School motto: “Salt of the Earth, Light of the World”

Providing education not solely for individual benefit, but to benefit the world as salt and light.

Campus ministry program includes emphasis on charity.

Required courses on Christianity include history of the school and importance of giving in our heritage.

Cultivating a culture of generosity among our alumni starts with our current students.

Christian Ethos and Giving

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“From everyone who has been given much,

much will be demanded; and from the one who has

been entrusted with much, much more will be asked.”

Luke 12:48

Methodist values Faith and Spiritual Formation Justice and Social Holiness Service Accessibility: Educating all Emphasis on Reason, Academic Freedom, and

Tolerance Generosity

Cultivating a Culture of GenerosityMethodist Ethos and Identity

To cultivate generous alumni, you need life-changing education. 36

Leaders of Cultural Change Board members President, Chancellor, Principals, Deans and

administrators Chaplains

Influential Agents of Cultural Change Faculty Staff Alumni

Cultivating a Culture of GenerosityCultural Leaders

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What can you do to cultivate

a Culture of Generosity in your school?

What can you do to cultivate

Methodist Culture and Values in your

school?

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Thank you.

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