Sip for sustainability: Non-profit Malawi coffee fuels school lunches
The Tokyo-based non-profit SEIBO Japan is making a difference in Malawi, Africa, through its school lunch programme feeding local children. This initiative is driven by the ‘Doing charity by doing business’ concept. Makoto Yamada, the representative, talks about the project.
Showcase your work! The section 'Voices in Relay' connects individuals involved in diverse businesses and activities across Japan in a relay format. First up is Makoto, the founder and representative of SEIBO Japan (hereafter SEIBO).
Providing school lunches for 17,000 children
(Q: Could you tell us what you are doing?)
SEIBO is developing a school lunch programme in Malawi, southeastern Africa, with the vision of 'A simple daily meal for every hungry child'. The programme provides school lunches to 17,000 children daily. While student staff members and I are based in Tokyo and work on donations and income-generating businesses, the school lunches are provided by local staff in Malawi.
SEIBO's activities are supported by donations from supporters, proceeds from selling speciality coffee from Malawi, and donations from Mobell Communications (hereinafter Mobell), a company selling international cell phones based on the concept of ‘Doing charity by doing business’. These revenues cover all the expenses of the school lunch programme and the local and Japanese staff, including myself, who work on it. Mobell has established a vocational training facility in Malawi, and we are working with this facility to deliver school lunches locally.
Efforts to build sustainable coffee business model for school feeding
(Q. Your coffee project is a profitable business the NPO runs, right?)
Yes, it is. Our business model, Warm Hearts Coffee Club, is based on charitable principles. We communicate in both English and Japanese, as expats in Japan tend to be quite socially aware.
Warm Heart Coffee Club offers speciality coffee grown in the Misuku Hills of northern Malawi, set against a breathtaking natural landscape at an altitude of 2,000 metres. The local Mzuzu Coffee Planters Cooperative adheres to stringent labour and environmental standards, ensuring that the coffee is produced ethically and sustainably. They have also obtained international Fairtrade certification.
Our coffee packages include a trial package of ¥1,200 and a monthly subscription starting from ¥2,200. All proceeds will be used for the school lunch programme.
(Q. ‘Doing charity by doing business’ is a very important and unique concept. It means not relying solely on donations, right?)
Yes, I find that interesting, too. I grew up in a church community and have been involved in church-based charities for a long time.
Still, I felt that charity was often limited to a small group of people who worked dedicatedly but only had a limited impact. I was eager to change that situation and worked hard, but also felt limitations. Therefore, when I came across the idea of Doing charity by doing business, I found it had potential.
From religious call to ‘Doing charity by doing a business’
(Q. Tell us about yourself)
I am the founder and representative of SEIBO Japan. When I was a student studying theology at Sophia University, I had the opportunity to meet Tony Smith, the founder of Mobell. Tony's vision and why he founded Mobell is Doing charity by doing business.
Specifically, doing charity by doing business means leveraging business to carry out charity, expand services, and, at the same time, positively impact the world. I found it interesting that Mobell, a mobile phone company, had that mission. By that time, I had already decided to join a missionary group after graduation, but I was so inspired by Tony's idea that I decided to work for Mobell. I became a salesperson there.
Changing my career path so suddenly required courage, but as I mentioned, I felt that combining business with charitable work could overcome the challenges I'd faced in my previous charitable endeavours. In 2015, while working at Mobell, I founded SEIBO. I have been working full-time at the NPO since last year.
Challenges for non-profits in Japan
(Q. Do you feel there are challenges in running a profitable business as an NPO?)
In Japan, it's commonly believed that 'donations should be the main focus' for non-profits. However, NPOs can also run profitable businesses. The key difference between NPOs and for-profit companies is that NPOs reinvest their profits back into their organisation or the causes they support rather than distributing them to shareholders.
In Japanese society, there's a strong perception that NPOs are synonymous with volunteer organisations. Many people find it unacceptable that I work for an NPO and receive a salary. Furthermore, many Japanese people struggle to understand that we generate income through profitable businesses like coffee roasting.
(Q. Yes, I agree. I also used to work for a non-profit organisation, and I received several phone calls from donors complaining that they could not accept the fact that their donations were also used to pay staff salaries. Why do you think running a profitable business in Japan is difficult?)
I think the term 'non-profit' is easily misunderstood. Moreover, the regulatory system for non-profits isn't clearly defined and has a large grey area. In other words, it's subject to the discretion of government officials. For example, the required accounting methods and record-keeping, including receipts for expenses like purchasing coffee beans and other supplies, can vary depending on the official in charge.
Against this backdrop, we established a general incorporated association (ippan-shadan-hojin in Japanese) in 2024 alongside our existing NPO. Our goal is to develop a system where our sustainable coffee business can thrive and generate profits, and we can then donate to the NPO to support projects in Malawi.
* An ippan-shadan is another type of non-profit organisation in Japan. While NPOs and ippan-shadan are considered non-profit, they are based on different laws. This difference results in different tax treatments. NPOs are generally exempt from corporate tax, except for income generated from profit-making activities. In contrast, ippan-shadans are subject to corporate tax.
More young people take charge despite challenges
(Q. That would incur administrative costs. Isn't it tough, even for achieving the goal?)
Yes, but that helps us work more confidently. Charity is still unfamiliar to many Japanese people, and one day, we were even reported to the Consumer Affairs Center simply for selling coffee for charity.
(Q. Running an NPO with the proceeds from Warm Hearts Coffee and donations, including profits from Mobell, is quite different from a typical Japanese NPO, but it might be more realistic than relying solely on donations?)
I think so. It's also easier to get people involved. For example, there has been an increase in Japanese students interested in businesses that address social challenges, such as ‘non-profit corporations’*.
*While Japanese law doesn't currently have a specific category for ‘non-profit corporations,’ there is a growing trend of companies operating with a non-profit focus.
It is also easier to present the benefits of participation to stakeholders. This also fosters stronger relationships by acknowledging individual perspectives, which in turn allows for more student volunteers and facilitates expansion.
(Q: It seems that the idea of Doing charity by doing business also has a lot to offer students.)
Yes. We are implementing it as an educational project, and I think young people today prefer it to traditional charity. It is also easy for Japanese people, who are still unfamiliar with donations, to understand.
Discover Malawi's fairtrade speciality coffee and be an ambassador
(Q. Tell us more about Malawi)
It is said to be the ‘most peaceful country’ in Africa. There are no conflicts on record. However, it is ranked 172nd out of 193 countries in the UN's World Development Index. Some people may criticise, saying, ‘Everyone is smiling in the pictures of people in Malawi. What's the point of supporting them?’. However, while it may not always be apparent, visiting their homes reveals the extent of their poverty. I believe they often conceal it. I suspect the same is true for 'relative poverty' in Japan.
(Q. Could you give a message to our readers?)
I have two messages.
First, I hope our Warm Hearts Coffee Club's sustainable coffee can bring you a warm-hearted moment during your daily coffee time, where you can think about Malawi and charity.
Second, if you are from an educational institution, could you partner with us and use our educational programme to spread the word about our project, like an ambassador? Expats are often proactive in charity, so I hope everyone can help us spread the culture of charity in Japan.
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