By now, you’ve likely heard of the devastating arson at Kyoto Animation, the studio behind anime series like The Melancholy of Haruhi Suzumiya, Clannad, and Violet Evergarden. The July 18th tragedy left over 30 people dead and another 30 injured, making this the worst mass casualty attack since World War II. The attack took place at Kyoto Animation’s main branch, and much of their creative works and materials were destroyed in the fire. The suspect has been apprehended.
Sentai Filmworks, who has released several KyoAni works in the US like Clannad and Beyond the Boundary, launched a GoFundMe for KyoAni that same day. A week later, Kyoto Animation released their own bank details for supporters to donate to them directly, and now Right Stuf is collecting money to make a deposit to that account.
It’s wonderful that so many anime and animation fans around the world are willing to help out the victims of the Kyoto Animation fire. Between Sentai Filmworks’ GoFundMe and Kyoto Animation’s own bank account, fans and organizations around the world have donated about $11 million as of this writing. That’s amazing.
However, this Answerman column points out that much of that money will be taxed. This isn’t just donating to an individual or a nonprofit. In fact, Japan seems to be pretty strict on charities. According to the Council on Foundations:
“Associations and foundations do not automatically enjoy tax privileges, but do receive tax privileges if the Committee for Public Interest Organizations (Kouekitou Nintei Iinkai) decides that these organizations’ activities are of public interest.”
As of this writing, it is unknown exactly how this money will be spent and distributed. Will the money be split 50-50 between the business and its employees? Or will the insurance take care of most of the building expenses so that more will go to the victims? Will those who are still alive get the same amount as those are deceased, or will it factor in future medical expenses? It’s particularly confusing for Sentai Filmworks’ GoFundMe, as that is all foreign money.
But perhaps the Japanese government will alleviate some of the hurdles by allowing money collected to be taxed at a lower rate. They are already considering ways to help the studio. However, fans are currently donating to a for-profit business, and it could be subjected to heavy taxation. As a general idea, if funds reach around ¥1.5 billion and are divided in half between Kyoto Animation and the other half among 40 employees, that would be ¥18.75 million per person. According to PwC, that amount falls in the 50% tax bracket meaning individuals would only get half of it. Converted to US dollars, that’s about $86,000. Meanwhile, according to Japan External Trade Organization, business taxes are about 30%.
So am I trying to discourage people from donating to KyoAni? No. But I also do want to remind people that this tragedy is still very fresh, and deciding what to do with $8 million is a lot to think about right now. Fans may want to set aside some money to give in case KyoAni or an affiliate organization launches an fundraiser or campaign for a specified purpose, like erecting a statue or creating a park. Let the survivors decide once the tragedy isn’t so fresh in their mind and they know what kind of support they need in their personal and professional lives. Maybe then they can get some outside input or let organizations sponsor a project.
Plus, while a lump sum of cash is nice, their future revenue is in jeopardy. Fans should consider ways to help out the studio in a month, three months, six months, and beyond — when the tragedy inevitably starts to fade from public memory. Perhaps purchase a digital image from Kyoto Animation directly every now and then. Buy or preorder those KyoAni Blu-rays you’ve been putting off. If you’ve bought all that you want, how about buying some as a gift for a friend or as a donation to a library, child in need, hospital, etc.? The holidays are around the corner, after all, or you can donate just because. Need a filler item to use a coupon at a site? Consider tossing in a KyoAni merchandise product.
The point I’m trying to make is that don’t feel like you have to give right now. KyoAni is going to suffer setbacks for quite a while, and support in a couple of months is just as important as support today. If you can do both, that’s great! But if you are on a tight budget, you might want to wait to make sure as much of your money is going directly to Kyoto Animation and its staff as possible. In the meantime, messages of support and raising awareness are also important.