TOKYO REPORT: Crowdfunding-Style Hometown Donations Gain Traction in Japan

TOKYO REPORT: Crowdfunding-Style Hometown Donations Gain Traction in Japan

29 settembre 2025 | 02.01

LETTURA: 3 minuti

Tokyo, Sept. 29 (Jiji Press)–Under Japan's "furusato nozei" hometown donation system, growing attention has focused on crowdfunding-style projects that earmark funds for specific purposes, such as passing cultural traditions to the next generation and supporting families with children. Such initiatives set clear fundraising targets and deadlines to solicit contributions. With more local governments adopting the model, donations are increasingly being used to address specific local challenges–the original aim of the broader hometown donation system. Japan's furusato nozei system was launched in fiscal 2008 and has grown steadily, helped in part by the popularity of thank-you gifts offered by recipient governments. The system allows taxpayers to donate to their hometowns or local governments they wish to support. The portion of a donation over 2,000 yen is then deducted from resident and other taxes in the following fiscal year, up to income-based limits. The market has continued to expand. In fiscal 2024, total donations reached 1,272,752 million yen, setting a record for the fifth consecutive year, while the number of donors climbed to an all-time high of roughly 10.8 million. Under the system, funds raised through the crowdfunding model increased to about 22.7 billion yen, up 40 pct from the previous year. The number of local governments adopting the model reached 451, or roughly a quarter of those designated under the hometown donation system. Internal affairs minister Seiichiro Murakami said, "It is meaningful that efforts aligned with the purpose of the system are spreading." According to Tokyo-based Trustbank Inc., operator of the Furusato Choice hometown donation portal, both donations and return gift offerings tied to fireworks festivals are on the rise. The company attributes the increase to growing public awareness that festivals across Japan are struggling with soaring costs for materials and labor. A Trustbank official said the hometown tax donation system is being used for support by people who fear "local fireworks festivals could disappear without support" and who "want to preserve uniquely Japanese cultural traditions for the next generation." The city government of Matsue in Shimane Prefecture introduced a crowdfunding-style hometown donation program in fiscal 2024 to help fund Matsue Suigosai, one of western Japan's largest fireworks festivals, held over a lake. In the year, the city sought 1 million yen in donations between July and August and raised about 900,000 yen, helping finance a record 21,000 fireworks over two days. In fiscal 2025, contributions exceeded the target, reaching roughly 1.3 million yen, which the city put toward fireworks and security costs. Amid rising expenses, the program has become a valuable funding source, bolstering the city government's resolve to keep the festival going. "We want to continue the fireworks festival," a city official said. The city government of Gero in Gifu Prefecture, central Japan, used crowdfunding to help finance new playground equipment for the city's main park, known for its expansive lawns. The initiative responded to concerns from families with young children about a lack of places to play. The campaign ran from November 2023 to January 2024 and raised about 2.8 million yen, exceeding its 2-million-yen goal. With the funds, the city installed a large play structure in April 2024 that combines multiple features, including a slide and a tunnel. It also added inclusive equipment for all people including those with disabilities. The park "has become more welcoming to individuals across a wide range of ages," a city official said. END [Copyright The Jiji Press, Ltd.]