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====“Article 34 of Civil Code” and “Law to Promote Specified Nonprofit Activities”==== | ====“Article 34 of Civil Code” and “Law to Promote Specified Nonprofit Activities”==== | ||
| − | Article 34 of Civil Code 0f1896 was the very first law for non profit organizations. Under this law, qualified organizations for Public Interest Legal Persons (PILPs also known as Koeki Hojin) are recognized as public benefit judicial bodies and also entitled to receive tax privileges from state. However, in order to register as PILPs, the organization must have significant revenues and capital: the organization must establish having a minimum 300 million yen ($2.5 million) in funds and at least minimum 30 million yen ($ 0.25 million) for annual operating budget . Besides these strict financial requirements, Article 34 of Civil Code also lists various qualifications that many start-up voluntary organizations or charities may not meet. In addition to those hurdles, in order to be PILPs, organization needs to pass the permitting system given by the government permitting ministry. If the organization’s objectives differ from the permitting ministry’s objects, it is also hard to gain PILP status . For these reasons, many charitable organizations have operated without recognition as public benefit judicial bodies by the Japanese government. The state registration for organizations has and continues to pose difficulties for small grassroots organizations to launch or expand their volunteer activities. Without official recognition by the state, they are unable to rent office space, open a bank account, and not able to receive tax deductions as a public benefit judicial body . | + | Article 34 of Civil Code 0f1896 was the very first law for non profit organizations. Under this law, qualified organizations for Public Interest Legal Persons (PILPs also known as Koeki Hojin) are recognized as public benefit judicial bodies and also entitled to receive tax privileges from state. However, in order to register as PILPs, the organization must have significant revenues and capital: the organization must establish having a minimum 300 million yen ($2.5 million) in funds and at least minimum 30 million yen ($ 0.25 million) for annual operating budget . Besides these strict financial requirements, Article 34 of Civil Code also lists various qualifications that many start-up voluntary organizations or charities may not meet. In addition to those hurdles, in order to be PILPs, organization needs to pass the permitting system given by the government permitting ministry. If the organization’s objectives differ from the permitting ministry’s objects, it is also hard to gain PILP status . For these reasons, many charitable organizations have operated without recognition as public benefit judicial bodies by the Japanese government. The state registration for organizations has and continues to pose difficulties for small grassroots organizations to launch or expand their volunteer activities. Without official recognition by the state, they are unable to rent office space, open a bank account, and not able to receive tax deductions as a public benefit judicial body . <membersonly> |
After the great Hanshin-Awaji Earthquake in January 1995, grassroots volunteer activities in Japan experienced a momentum and rapid growth. In the aftermath of disaster, Japanese bureaucratic civil service system was not able to respond to the disaster and provide relief effort early enough. On the other hand, volunteer groups reacted promptly to the massive disaster and provided enormous assistance. Two months after the disaster, more than 1.2 million volunteers went to the area to support victims and approximately $160 billion US dollars in donation flew in to the disaster area. Many of those volunteer groups are not PILPs but rather individuals or grassroots volunteer groups without legal recognition . | After the great Hanshin-Awaji Earthquake in January 1995, grassroots volunteer activities in Japan experienced a momentum and rapid growth. In the aftermath of disaster, Japanese bureaucratic civil service system was not able to respond to the disaster and provide relief effort early enough. On the other hand, volunteer groups reacted promptly to the massive disaster and provided enormous assistance. Two months after the disaster, more than 1.2 million volunteers went to the area to support victims and approximately $160 billion US dollars in donation flew in to the disaster area. Many of those volunteer groups are not PILPs but rather individuals or grassroots volunteer groups without legal recognition . | ||
This remarkable response of volunteer groups was recognized in the society through the media and after three years of intense lobbying, the Japanese government reconsidered its legal system to form civil society. In 1998, the Japanese government passed a new law that supports those volunteers groups to have legal status to operate their activities: The NPOs, the Law to Promote Specified Nonprofit Activities, also known as the NPO Law. | This remarkable response of volunteer groups was recognized in the society through the media and after three years of intense lobbying, the Japanese government reconsidered its legal system to form civil society. In 1998, the Japanese government passed a new law that supports those volunteers groups to have legal status to operate their activities: The NPOs, the Law to Promote Specified Nonprofit Activities, also known as the NPO Law. | ||
| − | The NPO Law was created to enhance the volunteer activities scope and activities of voluntary organizations. The NPO law states: “the purpose of this law is to promote the sound development of specified nonprofit activities in the form of volunteer and other activities freely performed by citizens to benefit society, through such measures as the provision of corporate status to organizations that undertake specified nonprofit a activities, and thereby to contribute to advancement of the public welfare” (Article 1 of Law to Promote Specified Nonprofit Activities). Furthermore, through the NPO Law, these grassroots volunteer organizations gained not only legal status to operate their activities but also established legitimacy in the society. | + | The NPO Law was created to enhance the volunteer activities scope and activities of voluntary organizations. The NPO law states: “the purpose of this law is to promote the sound development of specified nonprofit activities in the form of volunteer and other activities freely performed by citizens to benefit society, through such measures as the provision of corporate status to organizations that undertake specified nonprofit a activities, and thereby to contribute to advancement of the public welfare” (Article 1 of Law to Promote Specified Nonprofit Activities). Furthermore, through the NPO Law, these grassroots volunteer organizations gained not only legal status to operate their activities but also established legitimacy in the society. |
====Types of NPO in Japan==== | ====Types of NPO in Japan==== | ||
Latest revision as of 07:15, 17 July 2008
Brief History of Non Profit Organization Law in Japan
“Article 34 of Civil Code” and “Law to Promote Specified Nonprofit Activities”
Article 34 of Civil Code 0f1896 was the very first law for non profit organizations. Under this law, qualified organizations for Public Interest Legal Persons (PILPs also known as Koeki Hojin) are recognized as public benefit judicial bodies and also entitled to receive tax privileges from state. However, in order to register as PILPs, the organization must have significant revenues and capital: the organization must establish having a minimum 300 million yen ($2.5 million) in funds and at least minimum 30 million yen ($ 0.25 million) for annual operating budget . Besides these strict financial requirements, Article 34 of Civil Code also lists various qualifications that many start-up voluntary organizations or charities may not meet. In addition to those hurdles, in order to be PILPs, organization needs to pass the permitting system given by the government permitting ministry. If the organization’s objectives differ from the permitting ministry’s objects, it is also hard to gain PILP status . For these reasons, many charitable organizations have operated without recognition as public benefit judicial bodies by the Japanese government. The state registration for organizations has and continues to pose difficulties for small grassroots organizations to launch or expand their volunteer activities. Without official recognition by the state, they are unable to rent office space, open a bank account, and not able to receive tax deductions as a public benefit judicial body .
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