From Conventional Grant Making to New Partnership Approach

April 2015

The Nippon Foundation

Agenda
1.

The Nippon Foundation (TNF)

2.

TNFs Granting Approach

3.

From Conventional Grant Making to New Partnership Approach:

Loans and Investing

4.

Pilot Projects

1. 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)

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2. 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.
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2. 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.

2. TNFs Granting Approach:

Japan Venture Philanthropy Fund (JVPF)

Individual
Donors

Corporate
Donors

Donation/Grant

Grant/Loan/Equity

For profit
social
enterprise

Management Support

Non-profit
organization
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2. TNFs Granting Approach:

Japan Venture Philanthropy Fund (JVPF)

The first investee of JVPF, Houkago NPO Afterschool that provides a childcare program
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3. 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.

4. 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:

Products of a borrower

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. 8

4. 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.

4. Pilot Projects:
(b) Social Lending for PwDs (Disability-Inclusive Finance) (2/3)
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.)

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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

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Impact Investment
For Tsunami Recovery Efforts

Mitsubishi Corporation

CSR & Environmental Affairs Department

Yoshiyuki Nojima
Proprietary & confidential

Todays contents
How we started
Implementation
New initiative
Proprietary & confidential

How we started

Proprietary & confidential

Proprietary & confidential

Corporate Philosophy The Three Corporate

Principles

Initial commitment of USD100mil for 4 years

Proprietary & confidential

Implementation

Proprietary & confidential

Establishing another vehicle

Speed
Flexibility
Governance

Proprietary & confidential

CORE PROGRAMS
Scholarships
Grants for Non-profits
Impact Investment

Proprietary & confidential

Scholarships
More than 3,600 students

Proprietary & confidential

Grants for Non-profits

More than 420 organizations

Proprietary & confidential

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Impact Investment
USD 20mil to a total of 44 projects

Proprietary & confidential

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Impact Investment
Small to Mid-size
Companies
which create
job opportunities

Mitsubishi
Corporation

Rebuilding
factories

Operation

Donation

Mitsubishi Corporation
Disaster Relief
Foundation

Coordination
(Sourcing / Screening)
Local Bank / NPO

Investment/
Finance

Replacing
/Restoring
equipment
Starting up new
businesses

Proprietary & confidential

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Impact Investment

Why invest?
Close relationship with investees
Re-investment for sustainable
recovery

Proprietary & confidential

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Impact Investment
Job creation for over 2,000 people
Repayment/Return: USD 40,000

Proprietary & confidential

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New initiative

Proprietary & confidential

15

New initiative in Fukushima

Proprietary & confidential

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Thank you!

Proprietary & confidential

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