Crowdfunding emerges as major relief source in wake of central Japan quake

Self-Defense Force troops walk down a road littered with debris from collapsed buildings and partially blocked by fallen electric poles, in Wajima, Ishikawa Prefecture, on Jan. 3, 2024. (Mainichi/Tatsuro Tamaki)

Seventy crowdfunding projects have raised some 430 million yen (about $2.86 million) from approximately 22,000 contributors in just a month and a half since the Jan. 1 Noto Peninsula earthquake.

The amount reported by crowdfunding platform Readyfor Inc. is over 30 times that collected in the aftermath of the tremors that struck Kumamoto prefecture in 2016. Following the Kumamoto quakes, 10 crowdfunding projects managed to collect some 14 million yen (roughly $93,000) in support funds.

The latest figures indicate that crowdfunding has been gaining serious momentum as a source of support for areas hit by the recent temblor.

Disaster relief support infrastructure

Readyfor spokesperson Yuki Sato, 27, told the Mainichi Shimbun, “Compared to previous disasters, projects are starting up faster and the amounts are larger. Crowdfunding is becoming entrenched as infrastructure for disaster relief support.”

Furthermore, Sato notes, “There’s been an increase in projects initiated by businesses in the disaster-stricken areas for their own recovery.” Among these are efforts to preserve local traditions, such as one to rebuild the lacquerware industry in badly damaged Wajima, Ishikawa Prefecture, and another to repair the Shiroyone Senmaida terraced fields to resume rice cultivation.

Why crowdfunding?

One factor contributing to the growing use of crowdfunding is its flexibility compared to national and municipal subsidies and grants. For the disaster-stricken areas, there’s the benefit of being able to set the necessary amount themselves and quickly raise funds by consolidating the process.

Keiju Medical Center in the prefectural city of Nanao successfully raised its target amount of 100 million yen (around $666,000) in about a month with a crowdfunding drive launched on Jan. 5.

Moreover, for those providing support, there’s the advantage of being able to see how the money is being used and the progress of reconstruction projects through websites and other channels. Sato said, “I think the high level of transparency has led to positive results.”

Similar initiatives are also being carried out on crowdfunding platforms Campfire Inc., where over 140 million yen (approx. $932,000) has been raised for a total of 45 projects such as the reconstruction of heritage homes, and Makuake Inc., where some 65 million yen (about $433,000) has been raised for five projects.

(Japanese original by Sumire Kunieda, Digital News Group)