Japan's Buddhist Temples Diversify Donations Amid Falling Income

Buddhist temples in Japan are facing financial challenges due to inflation, declining income from funeral services, and a decreasing number of believers. To cover costs, some temples have started investing donations in financial instruments.

Kongo-ji Temple on Hokkaido is one such example. Its priest, Kokyo Yoneta, invested donated funds in U.S. Treasury bonds, Japanese real estate investment trusts, and stocks, including BYD and Hyundai. Over two years, this portfolio generated more than 10% annually.

This income helped cover part of the 25 million yen ($162,000) needed to repair the over-century-old temple. The additional funds also allowed for expanded repair work beyond the original plan.

Falling funeral income has been a major concern for temples. During the COVID-19 pandemic, families spent less on funeral rituals, and this trend persisted due to increased inflation. A 2021 survey found that about half of Japan's 7,000 temples earned less than 4 million yen in annual income.

Daian-ji Temple in Nara Prefecture has taken a cautious approach by holding most funds in cash but allocating 10% to foreign currency-denominated insurance products. Deputy priest Yusho Kono described this as 'purely defensive,' stating that profit-making activities contradict monastic principles.