To obtain a Nintei NPO status, a certified nonprofit corporation status that expands tax benefits for donors, all of the following 8 criteria must be satisfied within the judgment period which consists of the two most recent fiscal years for first time applicants.
To acquire a provisional Nintei NPO status, criteria 2 through 8 need to be fulfilled in the above mentioned period.
If the applying NPO meets any of the six reasons for disqualification, the organization is not eligible to apply for a Nintei / provisional Nintei NPOstatus.
The applying organization must satisfy at least one of the three following conditions:
1. During the judgment period, income from donations exceeds 20% of the total ordinary revenue.
Applying organizations must submit a list of donors. Organizations must regularly create and update the donors’ list and ensure it includes the following information: donors’ complete names, addresses, amount of donations and date of donation. For further inquiries in creating donor lists or forms, please contact relevant authorities.
2. During the judgment period, an average of 100 people or more donate more than 3000 yen per fiscal year.
3. Approved as a designated NPO from a prefectural or municipal government authority based on local ordinances.
During the judgment period, expenditure for the following activities should make up less than 50% of the total operating expenses:
1. Sale of goods and services for members only.
2. Activities which benefit only specific groups or regions.
3. Activities promoting specific persons or publication.
4. Activities against any particular persons or group of persons.
1. Less than one-third of the Officers (Board of Directors and Kanji*) of the applying organizations can be related by blood or law.
*Kanji is an officer selected to review the Board of Directors’ activities and review financial activities.
2. Less than one-third of the Officers of the applying organizations can be Officers or employees of the same registered organization.
3. The applying organization must be audited by a Certified Public Accountant or must record and save all transactions in the same manner as Aoiro shinkoku hojin (literally “blue return corporations”)
4. Each member of the Board of Directors must have equal voting power and rights.
5. There are no unspecified expenses or fallacious records in the accounting books.
1. Does not recommend, support and/or oppose particular religious or political activities, and specific political parties or candidates.
2. Does not bestow any special benefit to Officers, members, employees or donors.
3. Does not donate money to for-profit organizations, religious organizations, political parties and/or candidates running for public office.
4. During the judgment period, the ratio of nonprofit activity operating costs divided by the total amount of operating costs is more than 80%.
5. During the judgment period, the ratio of nonprofit activity operating costs divided by the total amount of accepted donations is more than 70%.
Application documents for certification can be disclosed to the general public upon request.
Annual reports of activities and account statements must be submitted to the relevant government authorities each fiscal year.
Punctual submission is critical. Organizations must submit necessary reports within three months of the conclusion of each fiscal year.
1. Observe the law and have no record of violating the law. (i.e. proper report filing and payment of corporate, consumption and income taxes)
This criterion is critical in assessing the competency of the organization in following the NPO law, its articles of incorporation, taxation law and rules. It is important to follow operating processes and procedures on a regular basis.
2. Does not gain or try to gain any benefits through unjust or false means.
3. Does not act against the public interest.
Organizations are not eligible to apply for Nintei NPO status until one full year has passed since the date of establishment on the date the application is submitted.
Organizations are disqualified to apply for Nintei / Provisional Nintei NPO status if they meet any of the following:
1. Any of the Board of Directors of the applying organization is an Officer of any organizations in which Nintei or provisional Nintei NPO status has been cancelled within the past five years.
Officers of the applying organization have been sentenced to prison or found guilty of a felony, fined due to violation of the NPO Law, Organized Crime Law, or for delinquent payment of any national or local tax laws within the past five years.
2. Nintei / provisional Nintei NPO status has been revoked in the past five years.
3. Contents of the Articles of Incorporation or activity plans violate laws.
4. A penalty has been imposed on the organization for tax payment arrears for national and/or local taxes within the past three years.
5. A penalty has been imposed on the organization other than ordinary national and/or local taxes within the past three years.
6. Officers are affiliated in any way to organized crime group (Boryokudan) or under control of such crime group.