Factors Influencing Donation Management in Municipalities Under the Hometown Donation Policy

In Japan, hometown donation policy is becoming important for the survival of small local municipalities and the development of local businesses that produce local specialties. This study quantitatively examines the relationship between donations to municipalities and regional characteristics in view of less favored conditions. Using municipal data from Japan and applying a regression model, we found that, first, smaller municipalities tend to negatively affect donations. Second, the level of recognition of a municipality positively affects the amount donated. Third, disadvantageous conditions, such as heavy snowy areas, impact the amount of donations. These findings suggest that building and promoting regional brands and enhancing name recognition are crucial strategies for less favored municipalities.