This book discusses the concepts types models and patterns of Japan's Hometown Tax Donation
Payment system to provide a clear picture of this newly developed unique and innovative
fund-raising tool used by municipalities. It also sheds light on the influences that reciprocal
gifts provided by each municipality to donors have on local economies by reviewing empirical
works and surveys targeting local business owners and local financial institutions. A
distinguishing feature of the book is that it introduces a new social finance mechanism that is
unique to the Japanese market and could provide policy implications for small and medium-sized
enterprises (SMEs) as well as regional development. Furthermore the book explores the efficacy
of the demand-pull approach to support-strengthening SMEs especially in rural areas. Finally
the book identifies some lessons learned from the system with a view toward advancing research
on this phenomenon and making the system efficient and sustainable. As a whole the book can
provide ample benefits to novices academics researchers and policymakers interested in
Hometown Tax Donation Payment an innovative social finance tool. This is an open access book.