61797    With strict conditions in addition to a great amount of funds, it is even difficult to obtain incorporation as a zaidan hojin (incorporated foundations) and shadan hojin (incorporated associations), which are known as organizations authorized under the provisions of the Civil Code.

61798    Also, even if incorporation has been granted, as they are under the supervision by an authority in charge, it seems unreasonable for citizen's groups which often express opinions against the government.

61799    Securing manpower is also a challenge without social recognition and, even if it has been secured, social insurance is unavailable: moreover, as office and equipment are under an individual's name, the reality is that there will be an inheritance tax problem when that individual dies.

61800    Consequently, there are groups that set up a profit-making business as a kabushiki kaisha (joint-stock company) or a yugen kaisha (limited liability company) where their primary non-profit business rents office space and the like from them, and the paradox of having a profit-oriented company and non-profit organization side-by-side is actually happening.

61801    Given this situation, the law for NPO (Non-Profit Organization) that has been acclaimed as the powerful driving force in revitalizing the American society has attracted much attention.

61802    This law provides a system for private corporations where profits will not be allocated in principle and will be entirely reinvested for the purpose of activities, instead of being distributed to the founders and stakeholders, and once an organization submit or mail to the state government a simple form filled out with the organization's name, name of the person responsible and other related items, it can be approved within several days of review; it is said that approximately one million organization have been registered in the US.

61803    This system provides accredited groups with the exemption status for both federal and state taxes, and donations for the approximately 500,000 organizations of particularly high public interest may be deducted from taxable income.

61804    Seeing the American system as a model, here in Japan the National Institute for Research Advancement (NIRA) has pushed ahead with "the study on developing a foundation for citizens' public-interest activities" which places civil activity organizations as a third force in addressing problems difficult for government and companies to handle, and while it proposes the enactment of the "Fundamental Civic Non-Profit Activity Law," the New Harbinger Party Sakigake got the study project to draft the bill off the ground.

61805    An international symposium will also be held in Osaka later this month.

61806    No obvious reactions to these movements from the government have been observed.

61807    It is expected that there will be considerable resistance from bureaucrats as implementing the NPO law may ultimately strip the government agencies of their authority, as was the case with other deregulations.

61808    As well, we are likely to hear the arguments that the tax breaks will result in lower tax revenue or will become a breeding ground for tax evasion.

61809    Needles to say, direct import of the American system would not solve the problem.

61810    As a matter of course, it will be necessary for the citizens' groups to become further aware of their social responsibility to grow out of their government subcontractor-like status and to reinforce the organizational skills to bring forward policy proposals.

61811    However, it will be more important to fully recognize that without community participation an aging society fast approaching in the near future cannot exist, and to fundamentally shift policies.