Dormant Deposits Utilization System Application Practical Guide (2026 Edition) — System Changes and Application Tips

Funding assistance based on the Dormant Deposits Utilization Act is an important funding source that enables NPOs, general incorporated associations, and social enterprises to secure activity funds on the scale of tens of millions of yen annually. Seven years have passed since the first public offering in FY2019, and the system has entered a maturity phase. The cumulative grant decision amount has grown to hundreds of billions of yen, and the number of implementing organizations continues to increase year by year (according to JANPIA annual reports).

On the other hand, the adoption rate has been declining year by year. In recent years, the adoption rate is approximately 25–30%. In a competitive environment where 3 out of 4 applications are rejected, the quality of applications determines adoption.

This guide provides practical knowledge directly applicable to practice, covering the selection of fund distribution organizations, application writing, and post-adoption obligations, taking into account the 2026 system changes. Positioned as an applied and practical edition, this article builds upon the Dormant Deposits Utilization System Guide as a foundational edition.

Understanding how dormant deposits flow and ultimately reach implementing organizations such as NPOs is fundamental to application strategy.

Understanding this three-tier structure is important because NPOs (implementing organizations) do not apply directly to JANPIA but go through fund distribution organizations. "Which fund distribution organization to choose" greatly affects the degree of freedom in operations and the quality of support.

Change 1: Full Introduction of Outcome-Based Grants

JANPIA has been advancing the introduction of Pay for Success mechanisms in some grant categories in recent years. This is designed so that part of the grant varies according to the achievement of pre-set outcome indicators (please check JANPIA's latest public offering guidelines for details).

• Target: Introduction is progressing in some programs in employment support and child/youth support fields
• Variable range: A certain percentage of the total grant tends to be set as the outcome-linked portion
• Measurement method: Verification by independent third-party evaluation organizations is required

This change means that practical ability in social impact evaluation directly affects application competitiveness. Organizations without experience in designing outcome indicators should refer to Outcome Indicator Design and prepare before applying.

Change 2: Strengthening Accompanying Support

JANPIA introduced a new "accompanying support supplement" from 2026. When fund distribution organizations provide accompanying support for organizational capacity strengthening to implementing organizations, up to 10% supplement to the grant amount is recognized.

This change means that in selecting fund distribution organizations, one should emphasize "what kind of accompanying support they provide, not just funding."

Change 3: Complete Transition to Digital Applications

From 2026, paper-based application acceptance has been completely abolished. Submission through JANPIA's electronic application system has become mandatory. Organizations unfamiliar with system operations are strongly recommended to complete practice in the test environment before the public offering begins.

Three Axes of Selection

Choosing a fund distribution organization is the most important strategic decision that affects the success or failure of an application.

Contacting Fund Distribution Organizations

Many fund distribution organizations hold briefing sessions and online consultation meetings before public offerings. Participating in these opportunities and directly confirming the following information is effective for improving adoption rates.

• Points emphasized in the review
• Common reasons for past rejections
• Recommended granularity of business plans
• Guidelines for budget scale

Mandatory Logic Models

In dormant deposits applications, submission of Logic Models (or Theory of Change) has become virtually mandatory. Clearly describe the following elements.

1. Identification of Social Challenges: Why address this issue, evidence based on data
2. Input: Resources to be invested (human resources, funds, facilities)
3. Activities: Specific business content to be implemented
4. Output: Direct products of activities (number of training sessions, consultations, etc.)
5. Outcome: Changes occurring in target groups (employment rate, quality of life improvement, etc.)
6. Impact: Ripple effects on society as a whole

Following the methods in the Logic Model Guide, logical construction of causal chains is required.

Budget Considerations

In reviews, budgets are considered a litmus test for "business seriousness." Pay attention to the following points.

• Optimizing Personnel Cost Ratio: Personnel costs exceeding 50% of the total risk being viewed as "subsidizing operating expenses rather than business expenses." Under 40% is one guideline
• External Outsourcing Cost Details: "Research outsourcing costs lump sum ○○ million yen" is not acceptable. Clearly show breakdown of outsourcing content, unit prices, and work hours
• Self-funding Contribution: 100% dependence on grants raises questions about sustainability. Contributing 10-20% self-funding is desirable
• Indirect Cost Rate: Design not to exceed the upper limit set in JANPIA's public offering guidelines (15% has been common in recent years)

Writing from the Reviewer's Perspective

Reviewers evaluate numerous applications in limited time. Readability itself affects adoption probability.

• Summary (Executive Summary) at the beginning: Enable understanding of the entire business overview in one page
• Use numbers: Not "many people are in trouble" but "○○ people in the target area face this challenge"
• Anticipate rejection risks: Incorporate responses to anticipated concerns within the business plan

Reporting Obligations

Dormant deposits grants have stricter reporting obligations after adoption compared to other grants.

The point that post-monitoring continues for up to 3 years after business completion is a feature not seen in other grants. Building a system to continue collecting evaluation data even after business completion is required.

Grant Return Risk

In the following cases, partial or full return of grants may be required.

• Expenditure for uses significantly different from the business plan
• False statements in reports
• Failure to meet targets in outcome-based grants (variable portion only)
• Dissolution or cessation of activities of the organization

The dormant deposits utilization system continues to be one of Japan's largest funding sources for the NPO sector. The 2026 system changes evolve the nature of the system from "funding provision" to "co-creation of social impact" through two axes: introduction of outcome-based models and strengthening of accompanying support.

The key to successful applications lies not only in technical document preparation skills. It depends on whether you can persuasively tell, with data and logic, what changes your organization's business will bring to society. Use this guide along with the related Logic Model Guide and Outcome Indicator Design to prepare for adoption.

References

休眠預金等活用事業の成果と課題 — JANPIA（一般財団法人日本民間公益活動連携機構）. JANPIA年次報告書

休眠預金等活用法の概要 — 内閣府. 内閣府NPOホームページ

社会的インパクト評価の実践ガイドライン — Social Impact Management Initiative (SIMI). SIMI