Japan Easing Restrictions on Nonprofits and Charity

Japan has long been uneasy about nonprofit organizations. It lacks a tradition of private philanthropy. Support for the needy is often expected to come from the family. Officials tend to regard NPOs as meddlesome amateurs.

So, even though public attitudes are changing, the law and formal attitudes tend to lag. Qualifying for favorable tax treatment, for example is nearly impossible in Japan.

However, a law passed June 22 that goes into force in two stages, on June 30 and next April, will significantly ease the process of getting favorable tax status.