Application Guide for the Dormant Deposits Utilization Program — How the System Works and What NPOs Need to Prepare
The system is complex and it can be hard to know where to start. This guide organizes the overall structure of Japan's Dormant Deposits Utilization Program and the key points nonprofits should prepare.
Introduction
The Act on Utilization of Dormant Deposits (休眠預金等活用法), enacted in 2016 and enforced in 2018, channels bank deposits that have had no transactions for an extended period (generally ten years or more) into funding for private-sector public interest activities. It represents a novel social funding mechanism distinct from both government tax revenue and corporate donations, and its scope has been expanding steadily.
However, the system's complexity frequently leaves potential applicants uncertain about where to begin. This guide organizes the essential points that practitioners need to understand: the basic structure of the system, application requirements, how to develop an evaluation plan, and post-grant obligations.
The Three-Layer Structure
The most distinctive feature of the Dormant Deposits Utilization Program (休眠預金等活用事業) is that funds flow through three institutional layers before reaching the organizations that carry out the work.
The flow of funds can be summarized as follows:
| Layer | Organization | Role |
|---|---|---|
| Layer 1 | JANPIA (Japan Network for Public Interest Activities / 日本民間公益活動連携機構) | Manages and distributes funds. Conducts open calls, screening, and monitoring of fund distribution organizations |
| Layer 2 | Fund distribution organizations (資金分配団体) | Receive funds from JANPIA, define thematic areas, and conduct open calls to select and support implementing organizations |
| Layer 3 | Implementing organizations (実行団体) | NPOs and other entities selected by fund distribution organizations to carry out programs on the ground |
A critical point to note is that NPOs cannot apply directly to JANPIA. To apply as an implementing organization, one must identify an open call from a fund distribution organization whose theme and geographic focus align with the applicant's work, and submit an application through that call.
JANPIA's website and the Dormant Deposits Utilization Platform ("Kyu-Pla") aggregate information about fund distribution organizations currently accepting applications. These should be the starting point for any organization considering an application.
Eligible Fields and Funding Tracks
Three Eligible Fields
The Act on Utilization of Dormant Deposits designates three eligible fields:
- Support for children and youth: child poverty countermeasures, educational support, youth employment assistance, and related areas
- Support for people in financial hardship: homelessness support, livelihood reconstruction, food banks, and related areas
- Regional revitalization: responses to demographic decline and aging, community regeneration, urban-rural exchange, and related areas
Following a 2023 amendment to the Act, equity investments and support for intermediary support organizations were formally incorporated into the system. The scope now extends beyond direct grants to NPOs, encompassing investments in social enterprises and capacity building of intermediary organizations.
Types of Funding Tracks
| Track | Duration | Characteristics |
|---|---|---|
| Standard track (通常枠) | Up to 3 years | Standard program grants; the primary option for most implementing organizations |
| Emergency track (緊急枠) | Up to 1 year | Rapid response to issues of high social urgency |
| Equity investment (出資) | — | For social enterprises with revenue streams; established through the 2023 amendment |
The standard track allows for multi-year program design and is the primary option for most NPOs. The emergency track tends to have a faster screening process, though the funding period is shorter.
Application Requirements
1. Legal Entity Status
Only organizations with legal entity status are eligible to apply as implementing organizations. Eligible entity types include NPO corporations (NPO法人), general incorporated associations (一般社団法人), and public interest incorporated associations and foundations. Voluntary associations without legal status are not eligible. Organizations that have not yet incorporated must obtain legal entity status before applying.
2. Evaluation Plan (Logic Model + Outcome Indicators)
This is the requirement that typically demands the most preparation time. Since 2021, JANPIA has explicitly required the submission of a logic model and outcome indicators, and the quality of the evaluation plan directly influences whether an application is accepted.
What the evaluation plan must demonstrate is the logical structure explaining why and how the proposed activities will produce social change. The focus must be on outcomes — the changes experienced by the people served — rather than merely on outputs such as the number of people who received services.
Outcome indicators should be designed along short-term, medium-term, and long-term time horizons. The application must specify measurement timing, measurement methods, and how baseline data will be collected.
3. Governance Structure
The composition of the board of directors and auditors, financial management systems, and the status of internal policies and regulations are all subject to review. A "one-person operation" structure in which the representative also handles financial management is viewed as a governance weakness. The key question is whether the organization can demonstrate, in writing, clear separation of roles and functioning checks and balances.
4. Co-funding Ratio
A co-funding ratio of at least 20% is generally required. Program designs that rely entirely on grant funding are not accepted. Eligible co-funding sources include membership fees, program revenue, and other grants (provided their purposes do not overlap). Before applying, thoroughly review your financial plan and verify that the co-funding requirement can be substantiated.
Application Process
The following outlines the application process for implementing organizations:
Step 1: Identify open calls from fund distribution organizations
Check JANPIA's official website and the Dormant Deposits Utilization Platform for fund distribution organizations currently accepting applications. Look for open calls that match your organization's field, geographic area, and scale.
Step 2: Carefully review the call guidelines and seek pre-application consultation
Call guidelines can run to several dozen pages. Carefully review the list of required documents, application form templates, and evaluation criteria. Many fund distribution organizations offer pre-application consultation opportunities; resolve any questions at this stage.
Step 3: Prepare application documents
Prepare the program plan, logic model, evaluation plan, financial plan, and organizational information. The evaluation plan in particular can take several weeks to develop; beginning work one to two months before the application deadline is a realistic target.
Step 4: Screening by the fund distribution organization
Following document screening, most fund distribution organizations conduct interview-based assessments. Ensure that the entire team is familiar with the application contents so that anyone can explain them orally.
Step 5: Selection notification and contract execution
Upon selection, the implementing organization enters into an agreement with the fund distribution organization and commences program activities. Before the program begins, a detailed implementation plan and confirmed baseline values for indicators are required.
Post-Selection Obligations
Selection comes with ongoing obligations.
Three-Stage Evaluation
Programs under the Dormant Deposits Utilization Program undergo evaluation at three stages: pre-implementation, mid-term, and final.
| Evaluation Stage | Timing | Key Activities |
|---|---|---|
| Pre-implementation evaluation | Before program start | Confirm baseline indicator values; verify implementation structure |
| Mid-term evaluation | Midpoint of the program period | Review progress; revise plans as needed |
| Final evaluation | At program completion | Verify outcome achievement; document lessons learned |
While the fund distribution organization leads the evaluation process, the implementing organization is responsible for data collection, analysis, and reporting. It is essential to design in advance a system capable of sustaining evaluation activities in parallel with frontline service delivery.
Public Disclosure
Reports are published on JANPIA's website and made available to the general public. Since reports containing program details, fund usage, and evaluation results will be accessible to anyone, organizations should maintain records and draft reports with public disclosure in mind from the outset.
Common Pitfalls
1. Inadequate Evaluation Plans
Applications prepared with the attitude that "indicators can be decided later" will not pass screening. An evaluation plan in which the only outcome indicator is "participant satisfaction," baseline collection methods are undefined, and measurement timing is vague will raise doubts about whether the evaluation is feasible at all.
Complete the logic model before applying. Specify indicators, measurement methods, and timing in concrete terms.
2. Insufficient Co-funding Substantiation
A plan premised on "we will have co-funding if our other grant applications are accepted" is judged as weak. Can the 20% requirement be covered by confirmed revenue sources such as membership fees and existing program income? Conduct an honest review of your financial position before applying.
3. Underestimating Governance Gaps
The attitude that "we are a small organization, so this cannot be helped" does not hold. Are board meeting minutes properly maintained? Is there a separation between financial management and program execution responsibilities? Does the organization have a harassment prevention policy? These are items that reviewers will check. Advance internal policy development in parallel with application preparation.
4. Underestimating the Reporting Burden
Without a pre-designed system for data collection, progress tracking, and report writing alongside frontline service delivery, staff will face burnout after selection. Practical solutions include designating a dedicated reporting staff member and standardizing data recording formats — operational design that should be completed before the application is submitted.
5. Underestimating the Competition
The Dormant Deposits Utilization Program is competitive. In the FY2024 standard track (second round), 14 of 49 applications were selected — an acceptance rate of approximately 29%. The assumption that "if we apply, we will be selected" is ill-founded. Study the evaluation criteria carefully, review reports from previously selected organizations (available on the JANPIA website), and calibrate your application to the expected standard before drafting.
ISVD's Perspective
What distinguishes the Dormant Deposits Utilization Program from conventional grants is its premise of "funding predicated on evaluation and transparency." The requirements — logic model submission, outcome indicator design, mid-term and final evaluations, and full public disclosure of reports — are demanding, but they also present an opportunity for organizations to rigorously examine and articulate the logic underlying their programs.
The first step in application preparation is developing a logic model. Beginning with What Is a Logic Model? to learn the foundational framework, then proceeding to Designing Outcome Indicators to operationalize measurement — this sequence will substantially improve the quality of your evaluation plan before you turn to the application itself.
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