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 2

Understanding the Culture of Giving in a Cultural Context: the Case of Japan Part ONE 3

Nonprofit Revenue Sources in Japan 4

JAPANUSA Individuals0.04%1.76% Corporations0.10%0.12% Total0.14%1.88% Charitable Giving as % of GDP 5

 Giving Money  Volunteering Time  Helping a stranger 6

7

Is philanthropy dead in Japan? 8

 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 9

 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 10

Japan has a culture of generosity, but is uncomfortable with fundraising 11

How is your culture generous? How can you tap into that generosity? 12

The Fundraising Context in Japan: The social and economic context that shapes fundraising Part TWO 13

 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 14

 Christians were influential in advocating for the liberalization of income tax deductions Changes in the Tax Laws Shigeaki Hinohara, Christian doctor who advocated tax reform 15

 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 deduction So 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 16

Comparison of Non-Profit Revenue Sources 17

Individual vs. Corporate Giving Comparison 18

 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 19

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 21

 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 22

 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 23

 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 24

Capital Campaign Donations Honda Memorial International Conference Hall Building Fund $516,000 $24,000 $1,854,000 25

Number of Donors Honda Memorial International Conference Hall Building Fund 26

Student Scholarship Donations Fiscal 2012 $375,500 $235,000 $45,600 27

 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 28

 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 Loyalty and Alumni Contributions Only small percentage of alumni are active. But we engage those with interest. 29

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?) 30

Cultivating Culture: Creating Methodist Culture in Methodist Schools Part FOUR 31

 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 32

Celebrating a Heritage of Giving 33

 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 34

“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 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 37

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? 38

Thank you. 39