Financial Flows for Lasting Impact Since its founding in 2017, SIIF has relied heavily on grant support from the Nippon Foundation to cover core operating expenses, particularly personnel costs. 13 The initial grants in the first two years were comparatively low, with ¥180 million (approximately US$1.15 million) in 2017 and ¥300 million (around US$1.92 million) in 2018. In 2019, funding spiked to ¥1,029.97 million (about US$6.59 million) due to the merger. From 2020 onward, the funding for operating costs has remained more consistent, averaging between ¥400 million (roughly US$2.56 million) and ¥500 million (about US$3.20 million) annually. Aside from these operational costs, in FY 2021 and 2022, SIIF received Nippon Foundation grants specifically for fund initiatives. Overall, SIIF’s reliance on Nippon Foundation grants for operational support remains high, and the organization aims to diversify its funding sources in the future. SIIF draws from several channels to fund its work, as shown in Figure C. Nippon Foundation Grants continue to support operational costs, with the majority allocated to the Annual Budget Account for personnel and overhead expenses, as well as the Social Entrepreneurs Account, which provides direct investments to social enterprises. For other investment projects, SIIF has mobilized capital from dormant bank accounts, a unique source coming directly from the government provisioner JANPIA. It also partners with external funds, where institutional investors, including large corporations and financial institutions, contribute as limited partners (LPs) in SIIF’s funds like Hataraku and Wellness, which focus on social enterprises and health-related impact investments. For the revenue SIIF generates through capital gains and general partners (GP) management fees, these returns are reinvested into SIIF’s other projects such as ongoing evaluations.
Figure C: SIIF Financial Flows 14
Annual Budget Account
SIIF’s Operational Costs (e.g. staffing and not-for-profit-projets)
Nippon Foundation Grant s
Social Entrepreneurs Account (stock)
Direct Investments/Grants (e.g. A0 and Heralbony)
Japan Venture Philanthropy Fund
Individuals’ Donations
Institutional Investors (LPs, co-GPs)
Funds (Hataraku, Wellness)
Dormant Account (JANPIA)
Dormant Account Projects
SIIF’s other projects (e.g. B Market builder Japan, Case Studies, Hataraku Fund Costs)
SIIF’s Revenues (e.g. Capital Gains, GP Commission Fee)
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Ten Years in the Making
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