In 2020, SIIF focused on growing the market of business entities that perform important social functions in each region through a collective approach—multiple organizations working together to solve social issues to create a greater social impact. A public call for interest was issued in January 2021, and four organizations were selected in May of the same year from the twenty-four organizations that applied. Subsequently, support was extended to three more organizations. Support totaled approximately ¥155 million (about US$992,000). 30 In 2021, SIIF launched a project to support the establishment and management of regional impact funds. This initiative provided financial support totaling 126 million (approximately US$806,000) to two funds. 31 SIIF identified unmet needs among regional financial institutions, such as local credit unions, which lacked the expertise, human resources, and knowledge of impact measurement and management (IMM) necessary to create these funds. The organizations that received the dormant deposit funds were required to implement IMM practices, which allowed for the visualization of the funds’ impact. Over five years, the more than one thousand Japanese NPOs and other organizations that received these funds became widely known to the public. However, as Mitsuaki Aoyagi noted, requiring IMM “led to some organizations merely going through the steps without improving their projects and organizations.” 32 Additionally, the process of receiving grants from the dormant funds is complex and involved. According to Aoyagi, this often “dissuades NPOs from leveraging this innovative but discretionary funding.” 33 To address these challenges, team members suggested making the IMM process more fruitful for fund recipients. They also emphasized the importance of maintaining an open line of communication with politicians and the Cabinet Office to ensure that the specific issues faced on the ground can lead to necessary changes. This initiative aligns with SIIF’s belief that big changes often stem from seemingly small opportunities . Like the dormant accounts themselves, societal change sometimes comes from unexpected places. By channeling these resources towards grassroots efforts, SIIF exemplified how systemic barriers could be overcome with creativity and persistence. The pilot projects of SIBs and dormant accounts allowed SIIF to explore their work within Japan’s larger structure. They worked within partnerships with other organizations and utilized funding from external sources. SIIF also wanted to work within its own walls to focus on specific themes, and to do so it established three funds: the Japan Venture Philanthropy Fund, The Hataraku Fund, and the SIIFIC Wellness Fund. 77
Ten Years in the Making
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