Under Japan's furusato nōzei hometown donation system, growing attention has focused on crowdfunding-style projects that earmark funds for specific purposes, such as passing cultural traditions to the next generation and supporting families with children.
Such initiatives set clear fundraising targets and deadlines to solicit contributions. With more local governments adopting the model, donations are increasingly being used to address specific local challenges — the original aim of the broader hometown donation system.
Japan's furusato nōzei system was launched in fiscal 2008 and has grown steadily, helped in part by the popularity of thank-you gifts offered by recipient governments. The system allows taxpayers to donate to their hometowns or local governments they wish to support. The portion of a donation over ¥2,000 ($13.40) is then deducted from resident and other taxes in the following fiscal year, up to income-based limits.
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