(Development of Community Fund)

When a business operator such as NPO engages in activities of public interest for a community, they tend to be able to raise only a limited amount of money as long as they rely on official supports and/or donations only. It is assumed that not a few citizens are willing to invest their money to improve their own community. It is required to have a scheme to let such “voluntary funds”, sleeping in communities, be invested to business operators who are to provide services of public nature.

As for a part of such a scheme, an entity to serve as financial intermediate called community funds are expected to go between the companies and individual citizens who work for the community and the citizens and corporations who want to provide money in some way. The purpose here is to raise funds from voluntary community citizens, the corporations, the local governments, etc., to invest them to the business projects of public interests that contribute to the community. By establishing such flow-of-funds scheme through these institutions, funds from a community will become available to use within that community.

## CASE Community Fund

### 1. Development of the NPO Bank

The NPO bank is one of such organizations regarded serving as the community fund. According to data provided by Japan NPO-BANK Network, 12 NPO Banks in total existed as of March 2011. Their total investment amounted to 540 million yen. They provide loans to local NPOs and projects in the fields such as environmental programs and regional developments.

Present Status of NPO banks in Japan

Unit: 1,000 yen
Name of organization	Year of foundation	Projects subject to finance	Amount invested	Cumulative loan amount	Loan balance
Mirai Bank	1994	Purchase of environmental goods, NPO, Ecohouse, etc.	162,885	967,294	62,573
Women/Citizens Community Bank	1998	NPO and W. Co (Note) operating in Kanagawa Pref.	127,440	477,765	82,656
Hokkaido NPO Bank	2002	NPO, W. Co	44,709	270,270	11,314
NPO Yume Bank (Nagano Prefecture)	2003	NPO	13,600	158,790	26,204
Tokyo Community Power Bank	2003	NPO, W. Co, Operator of projects for citizens, etc.	87,150	145,700	61,833
ap bank
(AP Bank, a General Incorporated Association)	2003	Projects on environment for natural energies, etc.
Community Youth Bank momo	2005	Projects to create communities where people can feel the productive future	45,490	52,460	19,407
Kumamoto Social Bank	2008	Projects with social nature operated in Kumamoto Pref.	3,480	0	0
Ten-nen Jutaku Bank	2008	Money for remodeling and emergency fund required when purchasing a house	39,315	8,504	1,623
Moyai-Bank Fukuoka	2009	NPO and entrepreneurs, etc. who operate projects with social nature in Fukuoka Pref. and neighboring regions	11,310	8,700	5,343
Shinrai Zaidan	2009	0	15,500	13,335
Peace Bank Ishikawa	2010	Projects by NPO, projects with social nature, and projects contributing to job creation and development of regions in Ishikawa Pref.	6,571	1,150	1,090
Total	541,950	2,167,012	201,676

Note: W. Co (Workers Collective) means a cooperative to commercialize “goods” and “services” required by a community as a citizens’ business through joint investment by workers who are not in employer-employee relationship but to work on equal terms as one business operator.

Source: Developed by MLIT based on data from Japan NPO-BANK Network

### 2. Citizens’ Windmills ~Natural Energy Fund ~

The Community Fund system is also used for financing natural energy projects.

The “Hamakaze-chan” constructed in Hamatonbestu-cho, Hokkaido, in 2001 became the first citizens’ windmill in Japan. Nearly 80% of its construction costs 200 million yen were afforded by the NPO Hokkaido Green Fund, in which system citizens donate 5% of their electricity charges for promoting widespread use of natural energies, in addition to the money invested by 217 citizens.

After this occasion, construction of citizens’ windmills has been rolling forward throughout the nation. Now the citizens’ windmills, which the fund raised in each region, are constructed in Hokkaido, Aomori, Akita, Ibaraki, Chiba and Ishikawa Prefectures.