Masonic Foundation of Japan Newsletter
(Latter Half of Year 2004 Jul-Dec)

Vol. 2 February 2005

Greetings to the members of the Masonic organizations in Japan

This latter half of the year has been indeed remarkable for frequent disasters hit by the unusual number of typhoons and the unusually severe earthquakes. We hope that you have survived yourself safely.

Under the continued support of each members, we are pleased to provide you with the Vol. No. 2 of the newsletter of the Masonic Foundation of Japan.

Trustees of the Masonic Foundation of Japan

1. Charity Donations

• The following selections were made at the Board meetings in September and October, among the public subscriptions received.

Some of the above associations are providing computer classes for the visually handicapped, some others digitalizing the recording tape and printing publication in braille. In fact, "Naïve Net" (reference network of braille library) started in April 2001, and "Biblio Net"(reference and service network of daisy library) started in April 2004. Thus, the recent IT technology development changed dramatically the communication and reading environment of the visually handicapped. (Please refer to the attached letter of appreciation "A" from Japan Braille Library)

• Disaster Relief

* Please refer to the attached list "B" of the appreciation letter from the Governor of Niigata prefecture.

• Overseas Organ Transplants

• The following donations were made also from the Open Target Account:

*"The Masonic Foundation of Japan" will be listed on the official website and guide book as one of the major donators of the private sector. Opening period: Feb 26 to Mar 5, 2005, using the old Olympic facilities in Nagano Prefecture, accepting 2,500 athletes from 80 countries. For more details, please ask for a pamphlet from the office of Masonic Foundation.

• Second public offering for donations of ¥15 million in total through our homepage

Day training institutions approved by the Social Welfare Law exist in only a quarter of the total number of cities, towns, and villages in Japan. For the handicapped people, who cannot work in such institutes, therefore, their parents made donations and opened small-sized unofficial workshops. Currently, there are more than 6,000 of such workshops, and a national organization "Kyosaren" was organized to support their activities. (Please refer to the pamphlet "C" for Kyosaren.) They are suffering from serious financial problems with insufficient subsidies from the government. This time, we decided to help these community workshops providing instruments which are critically needed to their daily operation. Actual projects will be selected from many applications at the Board meeting in January 2005.

2. Bro. Diele going back to his home country

On September 25 at Tokyo Prince Hotel, Scottish Rite gave a grand farewell party in honor of Bro. Diele who was going back to his home country after serving 20 years as Chairman of the Masonic Foundation of Japan. A certificate of appreciation was read in the party and a memorial article was presented to Bro. Diele.

3. New tenants coming to the 38 MT Building/other related issues

Fujitsu (Facilities Management Group) and its related companies will occupy the 1st to 12th floor of the building with about 3,000 residents and started their movement on December 17. We explained about our traditional events of Masonic Group, such as, Children' Festival in May and Cherry Blossom Viewing in the spring, getting their ready consent. For more details, please refer to the attached memo "D."

Concerning the cleaning service, Mori Trust changed the company again from Taisei Company to Kyokuto Building Service Company starting on December 20 last year, while their plan to change all of the door locks within the Masonic Center Building was postponed and will be made sometime in February 2005.

4. Revisions of the accounting standards of the public interest corporation

On October 14, 2004, the Ministry in charge announced the revisions of the Accounting Standards to accomplish the three major objectives as under-mentioned.

1. Simplification of Financial Statements:
   The Cash Flow Budget and Statement are no longer a part of the financial statements though these documents are the important tools for the internal control.
2. Necessity of efficiency information:
   The format of Net Funds Statement should be based on the Flow Method only, showing, among others, the gross revenue and expenses, item by item, which is equivalent to the P/Lstatement.
3. Clarification of fiduciary responsibility:
   On the B/S, separate listing is required between designated net assets and general purpose net assets.

The new standards shall be enforced as early as possible as from the fiscal year starting on April 1, 2006 or after.

5. The announcement of the final report of the Experts Conference on the reform of the Public Interest Corporation System

On November 19, the captioned report was submitted to the Administrative Reform Promotion Bureau of the Cabinet The main points are as follows:

1. A new system "Non-Profit Corporation System" will be created, absorbing the current Public Interest Corporation System under Civil Code No. 34. Under the new system, nonprofit corporations can be established on a registration basis.
2. The operation of the corporations, however, are taxable in principle, but if the activities of the corporations are judged as public interest nature by a special committee of civil professionals to be created hereafter, special tax benefits will be given. According to the report, specific business categories of public interest nature will be listed up in the final bill to make their judgment standard clear and objective to everybody's eye.
3. Corporations of public interest nature should disdose activities, financials and officers' allowance through the internet to warrant the maintenance of the severe corporate governance as a public interest nature corporation.

The government is expecting to submit a bill for this new system at the ordinary diet session of the year 2006 after making tax reviews and other further adjustments during the year of 2005. The transit period of two years or so will be considered in sifting corporations under the old system to the new system. Chairman commented that your constant and proper attention on the further development of the issue should be firmly maintained because the final ccindusion is now approaching.

6. New Counsellors and New Officers of the Masonic Foundation for FY2005

Your kind attention is invited to the attached list "E", showing the new members of the Board of Trustees, Supervisors and the Board of Counsellors, who were elected in the last elections. Your continued patronage is highly appreciated.