From Conventional Grant Making to New Partnership Approach
April 2015
The Nippon Foundation
1Agenda
1. The Nippon Foundation (TNF)
2. TNFs Granting Approach
3. From Conventional Grant Making to New Partnership Approach:
Loans and Investing
4. Pilot Projects
21. The Nippon Foundation (TNF)
1. Established in 1962
2. Active in more than 100 countries to date
3. In partnership with 40,000 non-profit organizations
4. Makes grants to more than 2,500 projects annually
5. Gives almost US$ 300M annually
6. Most funds are from proceeds of
motorboat racing
7. Also collects donations from
corporations and individuals
through new mechanisms
(e.g. vending machines,
a venture philanthropy fund)
32. TNFs Granting Approach
1. Project-based grant making as the principal approach.
2. However, in some cases, a capacity building approach is used through
support to co-designed programs with partner organizations, covering not
only project expenses but also core operating costs, rather than support to
individual projects.
Same with Venture Philanthropy (VP) in concept
3. Japan Venture Philanthropy Fund (JVPF), the first comprehensive venture
philanthropy fund, was established in 2013, funded by both individual /
corporate donors and TNF.
42. TNFs Granting Approach:
Japan Venture Philanthropy Fund (JVPF)
1. The first comprehensive venture philanthropy fund in Japan founded in
2013.
2. Current fund size is US$1.5 million and supports 2 investees.
3. Target social issues are:
a. Support for education and youth employment
b. Childcare, employment of women
c. Revitalization of local community
4. Management support is provided through the partner organization, Social
Investment Partners and pro-bono partners such as Bain & Company,
Clifford Chance, and Vox Global Japan.
52. TNFs Granting Approach:
Japan Venture Philanthropy Fund (JVPF)
Non-profit
organization
Individual
Donors
For profit
social enterprise
Corporate
Donors
Management SupportGrant/Loan/Equity
Donation/Grant
62. TNFs Granting Approach:
Japan Venture Philanthropy Fund (JVPF)
The first investee of JVPF, Houkago NPO Afterschool that provides a childcare program
73. From Conventional Grant Making to New Partnership Approach:
Loans and Investing
1. New approach includes social lending and credit guarantee, giving
momentum to social investing (yet to come).
2. Pilot projects are ongoing both in Japan and abroad.
a. Wagamachi Fund Project in Japan
b. Social Lending for Persons with Disabilities in Vietnam
c. Disability-inclusive Business Incubation Center in Myanmar
d. Creation of a Women Entrepreneurs Network, centered on Thailand
* (c) and (d) aim at incubating future loanees / investees
3. Target issues in overseas: persons with disabilities and women social
entrepreneurs.
84. Pilot Projects:
(a) Wagamachi Fund Project
1. In an effort to support reconstruction of the areas affected by the 3.11
earthquake, TNF started the Wagamachi Fund Project in partnership with 5
local credit unions in December 2013.
2. To support these 5 credit unions,
TNF provides about $4 million, and the credit
unions offers loans at zero or low interest rates.
3. Target businesses include:
small businesses which are necessary for reconstruction
newly established social businesses for the purpose of reconstruction
4. 1,059 loans have been offered. The total loan volume is about $230 million.
Products of a borrower
94. Pilot Projects:
(b) Social Lending for PwDs (Disability-Inclusive Finance) (1/3)
Advocacy work sees limitation: Small budget capacity of developing countries
governments. Helping PwDs become economically self-reliant has a more
sustaining impact.
Social Lending for Persons with Disabilities in Vietnam (since 2012)
This is a two-step loan project, where:
1. TNF provides the principle for a revolving loan fund
2. Vietnam Bank for Social Policies (VBSP) manages the loan operation,
including disbursement and collection
3. Eligible borrowers: Businesses owned / managed by PwDs and
businesses employing PwDs in Hanoi, HCMC, and Danang.
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4. Loan size: From USD 2,000 to USD 50,000
5. Interest rate: 7.8 -10.8% / year
6. Payment period: 3 years (could be 5 years, depending on each case)
7. Use of funds: Equipment investment (Production machinery, etc.)
8. As a capacity building component, credit appraisal training for the partner
bank is included.
9. Also includes business training for (prospective) borrowers.
(e.g. fund management, bookkeeping, financial reporting, etc.)
4. Pilot Projects:
(b) Social Lending for PwDs (Disability-Inclusive Finance) (2/3)
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4. Pilot Projects:
(b) Social Lending for PwDs (Disability-Inclusive Finance) (3/3)
An IT company in Danang (Business Process
Outsourcee).
The business owner has a disability in his hand
and language difficulty.
He expanded his office and purchased
computers with a loan of about $25k.
Before, he employed 50 workers (13 of them
have disabilities).
He employed 34 more (15 have disabilities)
thanks to the investment.
The business owners company has developed
an original Japanese-typing training software.
With the software, PwDs learn how to read and
type the Japanese (photo below), and qualified
trainees work for his company.
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4. Pilot Projects:
(c) Disability-inclusive Business Incubation Center (1/2)
The Disability-inclusive Business Incubation
Center is located on the premises of MILI
(Myanmar Independent Living Initiative, a self
help group spearheaded by youth with
disabilities).
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4. Pilot Projects:
(c) Disability-inclusive Business Incubation Center (2/2)
In addition to the financing scheme to ongoing businesses, there needs to be
a project to support PwDs to start their businesses, especially taking
advantage of ICT, which could lower the barrier experienced by PwDs.
Disability-inclusive Business Incubation Center in Myanmar
1. For a fee, users can use internet-connected PCs and take IT training.
2. Will be used as a remote office. Some companies are interested in
employing PwDs who can work remotely at the center.
3. The center will start a printing business as an income-generating activity.
4. Expect to produce entrepreneurs with disabilities, who will be investees /
loanees, and the role model of the next generations.
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4. Pilot Projects:
(d) Creation of a Women Social Entrepreneurs Network (1/5)
Limitation in its sustainability of NGO grant. Taking a business approach to
solve the social problems has a more sustaining impact.
Asian Women Social Entrepreneurs Network (since 2014)
1. TNF focuses on Women and Social Entrepreneurs in Mekong countries.
2. Our long-standing partner, Association for the Promotion of the Status of
Women (APSW) in Thailand is in charge of the project implementation.
3. In August 2014, an Asian Women Social Entrepreneurs Seminar was
organized and the Asian Women Social Entrepreneurs Network was
established.
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4. Pilot Projects:
(d) Creation of a Women Social Entrepreneurs Network (2/5)
Asian Women Social Entrepreneurs Network (since 2014)
4. In 2015, an Asian Women Social Entrepreneurs Network Conference will
be organized in May and November.
5. The main purpose of these conferences is to provide a networking and
experience-sharing platform for women social entrepreneurs from Mekong
countries.
6. In the future, there is a possibility that the network will provide various
kinds of assistance, including financial support, to those women social
entrepreneurs for expanding their own business.
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4. Pilot Projects:
(d) Creation of a Women Social Entrepreneurs Network (3/5)
Session 2: Mainstreaming Gender in Social Entrepreneur Fields
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4. Pilot Projects:
(d) Creation of a Women Social Entrepreneurs Network (4/5)
Session 3: Group Discussion by Sector (Photo of Handcraft Team)
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4. Pilot Projects:
(d) Creation of a Women Social Entrepreneurs Network (5/5)
Establishing Asian Women Social Entrepreneurs Network (AWSEN) on August 1, 2014
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Perspective for the Future
1. G8 Task Force
2. Dormant Bank Account Fund Legislation
3. Social Impact Bond
Proprietary & confidential 1
Impact InvestmentFor Tsunami Recovery Efforts
Mitsubishi CorporationCSR & Environmental Affairs Department
Yoshiyuki Nojima
Todays contents
How we started
Implementation
New initiativeProprietary & confidential 2
Proprietary & confidential 3
How we started
Proprietary & confidential 4
Corporate Philosophy The Three Corporate Principles
Proprietary & confidential 5
Initial commitment of USD100mil for 4 years
Proprietary & confidential 6
Implementation
Establishing another vehicleSpeed
Flexibility
Governance
Proprietary & confidential 7
Proprietary & confidential 8
Scholarships
Grants for Non-profits
Impact Investment
CORE PROGRAMS
Proprietary & confidential 9
ScholarshipsMore than 3,600 students
Proprietary & confidential 10
Grants for Non-profitsMore than 420 organizations
Proprietary & confidential 11
Impact InvestmentUSD 20mil to a total of 44 projects
Proprietary & confidential 12
Impact Investment
MitsubishiCorporation
Local Bank / NPO
Mitsubishi CorporationDisaster Relief
FoundationDonation
Coordination(Sourcing / Screening)
Operation
Investment/Finance
Small to Mid-sizeCompanies
which create job opportunities
Rebuildingfactories
Replacing /Restoring equipment
Starting up new businesses
Why invest?Close relationship with investees
Re-investment for sustainable recovery
Proprietary & confidential 13
Impact Investment
Proprietary & confidential 14
Impact Investment
Job creation for over 2,000 people
Repayment/Return: USD 40,000
Proprietary & confidential 15
New initiative
Proprietary & confidential 16
New initiative in Fukushima
Proprietary & confidential 17
Thank you!