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“AS THE PURSE IS EMPTIED THE HEART IS FILLED.”

A Report on the Status of Women in the Economy of the Modern World and the Success of the Third Sector in Japan

Jun-Ang NiAugust 27th, 2014

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GIVINGUnited States vs. Japan: the Consumer and the Producer

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DONATIONS IN THE UNITED STATES

• About 95% of all households in the United States donate money to charities while 89% of all people in the United States donated their time to volunteer efforts across the globe

• In 2005, the American people gave away a collective sum of $199 billion to various chartable funds. Since then, that number has risen to $229 billion in 2012. (During disaster-stricken times, that number has risen to as high as $295 billion).• This money then goes to a variety of recipients, mainly

(but not limited to) colleges/educational institutions, hospitals and other health-related organizations, human services such as welfare and disaster relief, environment/animals, religion, and the arts.

• Most of these donations go to educational institutions and hospitals, catapulting them to the top of most NPO list

• On average, every household in the United States donates somewhere around $2,213 each, which each state contributing varying amounts in correlation to the amount of people it holds.

4

2002 2004 2006 2008 2010 2012 20140

50

100

150

200

250

300

350

199

295

258.8

169.8

217.79228.93240.6

Money Given to Charity by Individuals in America

Years

Amou

nt o

f M

oney

(bi

llion

s)

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DONATIONS IN JAPAN• By contrast, donations in Japan are, unless in time of great need such

as the Great East Japan Earthquake aftermath, few and far between.• For example, Makoto Ohama, a man who was paralyzed from the neck

down after a tackling incident, struggles yearly to raise money for research in spinal cord surgery. For 3 years, Ohama only managed to acquire ¥3 million (about $24,000), and currently raises ¥ 21 million with little to no help from personal donations.

• In North America, however, similar foundations and organizations have raised over eight times as much money as Ohama manages to get per year.

• According to Hideyuki Yuze, the rich Japanese citizens almost never donate money because it is not tradition to acknowledge and utilize your wealth. If one is rich, one hides his money and does not flash it off to the world to see, the exact opposite of American society.

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DONATIONS IN JAPAN• Thus, if it is not due to a lack of money, why are the Japanese reluctant to give their money?

• Some say that it is due to the political and social stability of the nation, as opposed to economic stability.

• In Japan, where there is flourishing national health-care coverage and enormous philanthropic activity outside of their borders coming in, the people believe that the government is in charge of providing for these organizations and foundations.• However, while the U.S. spends 0.83% of its GDP on funding research and such things, Japan only spends 0.67%.

• Another issue in within society itself in regards to philanthropic action is the low rate of awareness throughout the masses. • Due to the inherent “shame” that lies with having disease or coming from a low socioeconomic status,

the Japanese people are afraid to come forward and show the rest of the nation and the world that their issues are real issues.

• No sports icons or celebrities come out with their support of a certain foundation or research area like those in America do.

• In fact, if a famous icon were to fall ill, in the case of Hisao Niura, a baseball pitcher for the Yomiuri Giants, they would rather hide their ailment from the world than actively come out and give their support to those also suffering from the same problem

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“THE 1% CLUB”• In 1989, the One-Percent Club was founded, which includes both

companies and individuals in the mix. • The Club promises to donate at least 1% of their after tax income to the

benefit of social causes each year. • This is both an act that not only provides information for the companies and

individuals involved, but supports the backbone of the Keidanren• The Keidanren is an economic organization comprised of over 1,300 members

(companies and individuals) that works to create a mutualistic air around the Japanese economy, with everyone doing their part to support the livelihoods of the Japanese people along with developing a secure and stable national economy

Based on total amount of money given

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TOP 5 CORPORATE DONORS

United States of America1. Wells Fargo & Company (1.3%)2. Walmart (4.5%)3. Chevron Corporation (0.6%)4. Goldman Sachs Group (3.9%)5. Exxon Mobil Corporation (0.3%)

Japan1. Mitsubishi UFJ Financial2. Toyota Motor3. Nippon Telegraph & Telephone4. Sumitomo Mitsui Financial5. Mizuho Financial

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NONPROFIT ORGANIZATIONSThe Work of the Kind and Few

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WHY THEY WORK• In America, nonprofits are known for their success and widespread use throughout the

nation. However, when one looks to other countries, this same success is almost nowhere to be seen.

• In order to create a successful nonprofit, one needs to understand that there are 5 myths about creating a nonprofit:

1. Perfect Management: Not all organizations will have exemplary methods of managing. Rather, they will have adequate management, ones that get the job done.

2. Brand-Name Awareness: You don’t need to aim to be known by all the people in the country, rather the people you are focusing to assist

3. A Breakthrough New Idea: Sometimes old ideas with a tiny bit of brain power behind them are the ones that do the best

4. Perfect Mission Statements: You don’t need to spend all your time and effort constructing a mission statement ha encompasses every single thing your organization plans to accomplish

5. Large Budgets: Size does not necessarily correlate with impact. As long as the organization knows what it is doing with its money, the amount does not matter

Source: Japan Non-Profit Organization Center

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Trends in Foundation Establishment in Japan

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2002 2004 2006 2008 2010 2012 20141,250,000

1,300,000

1,350,000

1,400,000

1,450,000

1,500,000

1,550,000

1,600,000

1368332

1410000

15811111560000

1534142

Number of NPOs in the United States

Years

Num

ber o

f Non

profi

ts

13

2002 2004 2006 2008 2010 2012 201430,000

32,000

34,000

36,000

38,000

40,000

42,000

34233

37268

38400

40871

Number of NPOs in Massachusetts

Years

Num

ber

of N

onpr

ofits

Based on total assets

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TOP 5 NON-PROFIT ORGANIZATIONS*

United States of America1. United Way2. Task Force for Global

Health3. Feeding America4. Goodwill Industries

International5. American Cancer Society

Japan(Data unsufficient for this purpose)

Massachusetts1. TERI (The Education

Resources Institute)2. WGBH3. Woods Hole

Oceanographic Institution

4. Boston Symphony Orchestra

5. The Trustees of Reservations

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AVERAGE SALARY OF A NONPROFIT WORKER

Median Salary by Years Experience - Job: Executive Director, Non-Profit Organization (United States)

Median Salary by Employer Type - Job: Program Manager, Non-Profit Organization (United States)

Median Salary by Years Experience - Job: Development Manager, Non-Profit Organization (United States)

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AVERAGE SALARY OF A NONPROFIT WORKER

Median Salary by Years Experience - Job: Chief Operating Officer, Non-Profit Organization (United States)

Median Salary by Years Experience - Job: Fundraising Director, Non-Profit Organization (United States)

Median Salary by Years Experience - Job: Development Supervisor, Non-Profit Organization (United States)

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Source: Japan Non-Profit Organization Center

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The Changes in Number of NPOs in Japan

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FOUNDATIONSFamilies with Purpose

Source: National Center for Charitable Statistics

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2002 2004 2006 2008 2010 2012 20140

20,000

40,000

60,000

80,000

100,000

120,000

66,401 67,736 71,097 72,477 75,187 75,592 76,000 76,61081,777

98,788

Number of Foundations in the United States

Years

Num

ber

of F

ound

atio

ns

Source: National Center for Charitable Statistics

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2002 2004 2006 2008 2010 2012 20142,600

2,650

2,700

2,750

2,800

2,850

2,900

2,950

3,000

3,050

3,100

2,753 2,752

3,026 3,037 3,042

2,974

2,901

2,846

3,009

Number of Foundations in Massa-chusetts

Years

Num

ber

of F

ound

atio

ns

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TOP 5 PRIVATE FOUNDATIONSUnited States of America1. Bill & Melinda Gates

Foundation2. Genetech Access To Care

Foundation3. The Abbvie Patient

Assistance Foundation4. Lilly Cares Foundation, Inc. 5. GlaxoSmithKline Patient

Access Programs Foundation

Japan1. Osaka Prefectural

Scholarship Association2. The Nation Horse Racing

Welfare Foundation3. Rotary Yoneyama Memorial

Foundation, Inc. 4. Scholarship Foundation for

Orphans5. Jin Kenyukai

Commonwealth of Massachusetts1. Boston Foundation, Inc.2. Genzyme Charitable

Foundation, Inc.3. Barr Foundation4. Citizens Programs

Corporation5. Sumner M. Redstone

Charitable Foundation

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WOMEN“Women's philanthropic leadership is fundamental to their advancement in society.”

- Kay Ballard

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WOMEN IN THE RANKS• By the end of 2013, only 365 of the top Fortune

500 companies had at least one female on their executive committees, leaving 135 remaining companies with all-male executives.

• About 4.2% of these 500 (21 companies) have female CEOs in place

• Women hold 16.9% of board seats in the largest companies in the United States, with only 8.1% of Fortune 500’s top-earning members being female.

• In the past five years, the percentage of women in executive positions have only risen 1.1%, from 13.5 to 14.6.

• Despite taking leaps and bounds in progress in the middle-ground of the economy, the amount of power available to women at the top is relinquished one grain at a time.

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201302468

1012141618

Percentage of Women Holding High-Ranking Seats in American Companies

Board Seats Executive Positions

Perc

enta

ge %

26

United States of America Japan

57.7

10.515

.9

1.12 4

14.6

1.6

Percentage of Women holding high-ranking po-sitions

Managers Board CEO Executive

Perc

enta

ge %

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WOMENOMICS• Kathy Matsui, co-head of Economics, Commodities and

Strategy Research in Asia, and Chief Japan equity Strategist for Goldman Sachs, was t first one to coin the term “Womenomics.”

• In 1999, Matsui published (and has continued to publish) her research on Womenomics, wherein she explained that the solution to the dwindling population available for work was not a flood of immigrants into the nation nor a forced increase of births per year, but women.

• The nation had huge untapped reserves of women that were not fulfilling their potential, despite having been educated and of working-age.

• Her own struggle to the top, coupled with her friends leaving her side in the corporate jungle, prompted Matsui to begin and publish her research, which, of course, was dismissed and ignored for the majority of its existence in the male-run world of Japanese business.

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WOMENOMICS• Since 1999, Matsui has published 3 more womenomics-related

research packets, adjusting her views and arguments to the changing Japanese wave. She has continued to advocate the power of women in the economy, not just as consumers and investors, but as producers at the head of companies.• In addition to the private sector, Matsui has, in recent years, begun

to advocate for women to become active in the government and law-making bodies in Japan, providing even more power to the purse.

• She continues to push for diversity quotas to be set in place, and raise those quotas to approach true equality in the workplace. Matsui also asks businesses, the government, and even society itself to loosen their views on the tradition of Japan and open their eyes to the infinite possibilities of gender equality and what it can do for their beloved nation.

• However, she does acknowledge the strides the Japanese people have taken since her initial report, and seeing that her efforts have been taken into account by Prime Minister Shinzo Abe, has a much more optimistic outlook on the future of women.

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HONEST ABE• Japan is currently in a strange yet fascinating

predicament. The amount of people currently living in Japan who are 65 years and older is nearly double that of the population below the age of 15. Thus, by the year 2035, a third of all the people in Japan will be elderly, leaving an enormous debt unable to be paid.

• This then leads to the problem of breaking red with the Japanese economy. Without anyone to work, there will be no revenue coming in, no money to be given to taxes, and a debt that just continues to grow infinitely.

• This, however, could be prevented with the equality of the genders in the Japanese work force. If 80% of women in Japan were to be employed (the same amount as men), then the GDP of the nation would raise nearly 14%.

• Japan’s Prime Minister, Abe Shinzo, has spoken out on his push for “womenomics” as a key player in the success of his “Abenomics.”

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HONEST ABE• Recently, Abe has set the goal of increasing the number of female executives in the

nation to 30% by the year 2020, along with making it mandatory that Japanese companies have at least one female executive employee

• Writing in the op-ed section of the Wall Street Journal, Abe explained that he wishes to see Japan have a 2% increase in productivity over the next ten years, and a 3% growth in the nations GDP. In order to accomplish this, he has decided that Japan needs to increase the population of women in the workforce from 68% to 73%, and that they “must bridge this equality gap,” referring to the difference in pay and wage between the two genders.

• By focusing on the health, medical, and familial fears that women across the globe have to face, Abe has begun to pave a path for women to have access to work and higher-paying jobs without having the burden of worry about their personal lives.• Child care, contraceptives, and various other factors have been provided/eliminated in the

past few years in order to create a healthy environment for both womenomics and Abenomics.

• This, actually, did not sit very well with the conservative Japanese people, who believed that traditional values and such were being broken by these new ideals (though Abe paid hem no mind)

• By flooding the lower levels with women, Abe hopes to have them flow upwards towards the higher ranks, though he is not outwardly or actively trying to resolve the issues starting at the top. Instead, he is relying on companies, who have followed suit and obeyed, to create their own quotas to fulfill the coming age of womenomics.• However, without actively encouraging women to strive for the top ranks, the women in the

workforce tend to spread far and thin, many leaving their jobs to pursue other “traditionally” female duties like marriage or childbirth.

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女三人寄れば姦しい• Although the prospects in America are quite dim

already, in Japan, the percentage of women holding executive roles in public companies falls to a sad 1.6%.

• Only 15% of companies have at least one female executive, as opposed to their American counterparts, who hold a 73% majority in this aspect

• For 8 years, the percentage of women holding board seats has remained below 17%, despite pushes for the more gender-diverse work environment for women across Japan.

• In finance business, a mere 0.3% of all companies are headed by women, and only 3.3% in private industry• In the middle-range company level, about 11% of all

companies have female managers

On'nasan'nin'yorebakashimashī

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女三人寄れば姦しい

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女三人寄れば姦しい• Teiko Kuda, a newly announced female Executive Director in

Japan’s Sumitomo Mitsui Banking Corporation, was once discriminated against in her first days with the company, where she was brushed aside via phone call for her male coworkers just because she was a woman.

• Similarly, Yuko Kawamoto became the first woman on the board of executives for Mitsubishi UFJ Financial Group, Inc., Japan’s largest money lender

• However, when asked about whether or not women will truly become integrated into the senior ranks of the companies, the phone lines all went silent.

• According to The Global Gender Gap Report in 2013, America ranks 83 places above Japan, who stands 105th out of 136, in terms of gender equality politically, educationally, healthily, and economically. • China ranks 69th in the world, while First, Second, and Third places

were taken by Iceland, Finland, and Norway, respectively.

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MAKING THE COMMON MARKET COMMON GROUND

• In the European Union (EU), only 4.4% of companies are chaired by a woman, and 2.7% have a woman actually sitting as CEO.

• In 2008, Norway decreed that all public companies in the nation were required to have at least 2/5 of their boards composed of female members• Spain, France, and Sweden have all

followed suit, setting gender-related leadership quotas in their own countries

• Even when their countries are not complying, individual companies and businesses have begun to set these same goals, attempting to create a significant change in the area of gender equality in the workforce.

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LEAN IN• In 2013, Sheryl Sandberg, the chief operating officer

of Facebook and longtime friend of the social media mogul himself, Mark Zuckerberg, published a book presenting her research into the issue of women being held back and holding themselves back when it comes to their opportunities in life.• Ranking among the most powerful women in the

world, Sandberg has advocated for women to stop standing to the side in this male-run world, but rather “sit at the table” and voice their own opinions.

• From this book, websites and numerous campaigns have been set forth, providing inspiration, education, and collaboration for women everywhere in their pursuits

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WOMEN IN THE THIRD SECTOR• In the nonprofit world, women are also striving to take full advantage of

their potential, with 57% of women who are not already CEOs claiming that they dream of someday achieving this goal• 44% of women in nonprofit organizations believe that their employers prefer

men over equally qualified women for leadership roles• Yet, since women are the largest and most loyal donors, this decision is

almost certainly a mistake. • However, there is logic behind the all-male boards of organizations. Instead

of hiring people with the credentials to support their work, boards will instead hire people they believe fit their “profile,” which most of the time means people just like them (men).

Source: Forbes.com, Kerry Hannon, 2010

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TOP REASONS WOMEN GO INTO NONPROFIT ORGANIZATIONS

1. In nonprofit organizations, the idea of the Flexible Schedule” is not merely a myth. With their busy schedules, many-a-time juggling a family and a job, a flexible schedule is just what many women need

2. Since the pay is slightly lower, men do not flock to fill the positions. However, this leaves more room for women to test out the waters and even score higher ranking positions than those of their male counterparts.

3. In such a social area of work, women tend to excel with their natural ability to collaborate and reach a consensus evenly and equally.

4. Women are not pushed aside when they ask for assistance, and being a fresh face is something nonprofits seek, rather than experienced and rough-and-tumble workers

5. Although nonprofits tend to pay less, women tend to be more readily prepared for pay cuts and other unforeseen circumstances

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TAX SYSTEMSWhere Is Your Money Really Going?

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THE FIRST ACT ON THE NPO STAGE

• On January 17th, 1995, The Great Hanshin-Awaji Earthquake struck the Kobe area, leaving devastation in its wake. Over one million volunteers came to the aid of Kobe within two months of the disaster. • People used to believe that there was no need for volunteerism nor a nonprofit sector in Japan, saying that

the government would take care of all their troubles.• Soon after the earthquake, in fact, the Japanese government began to publically support the volunteer

effort• Thus began talks of new bills and laws for small civil groups to incorporate and begin work, something that

was unheard of earlier. (In fact, there was no legal framework for such activity)• Before this, nonprofits and public benefit corporations ( 公益法人 ) were less like the Western-style

nonprofits, and more like smaller government-run programs• There are five types of corporations in Japan: 公益法人 koeki hojin – Public Benefit Corporations学校法人 gakko hojin – School Corporations社会福祉法人 shakai fukushi hojin – Social Welfare Corporations厚生保護法人 kosei hogo hojin – Readjustment Relief Corporations 宗教法人 shukyo hojin – Religious Corporations

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THE NPO LAW 1998• According to the 1998 NPO Law, unless a nonprofit organization has been

approved by the prefectural governor or the Cabinet Office, there is no way to become an incorporated NPO

• If a NPO is incorporated, donors have the option to write off their donations to be tax deductible. However, due to the severity of the process, only a little over 200 of the 90,000 NPOs in Japan have been incorporated. • The organizations must meet stringent guidelines and fit the perfect mold in

order to be considered for incorporation • Thus, NPOs in Japan are suffering due to the unwillingness of people to

donate their money, mainly due to the fact that there, unlike America, is no incentive to give to charity such as tax deductions.

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GIVE OR TAKE• Supposedly, the NPO Law was put in place in order to prevent the laundering of

money, but many people have started to disagree with this set up• Due to Japan’s economic collapse in the 90s, a policy has been established

where all banks support a low interest rate, causing a decrease in the incomes of the people and, as a result, the funds of NPOs.• With less money, nonprofits are forced to cut departments and programs and shrink

in size to accommodate the shrinking economy• Usually, Japanese citizens can have up to 25% of their income deducted from

their taxes if they donate to the designated and sanctioned nonprofits in the country

• Yet, in times of trouble, such as the months following the Tohoku Earthquake, the government eased a tiny bit, allowing donations to be 50% tax-deductible as opposed to the normal 10%.

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