Will Your Startup Donate 1% Equity to Charity? : Under30CEO Will Your Startup Donate 1% Equity to Charity? : Under30CEO
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Will Your Startup Donate 1% Equity to Charity?

| November 11, 2011 | 6 Comments

Many startup entrepreneurs are interested in giving back but at the same time they have the small problem of being broke! There is a good rule of thumb that says “make yours first and then give back”. Basically saying that take care of yourself and then you will be able to do way more good and give way more than if you’re struggling to even pay your own rent.

However a new project has introduced a new twist to the equation. 1% of Nothing launched by Shervin Pishevar and Matt Galligan aims to get startups to donate 1% of equity to a charity. Now that 1% is probably worth nothing at first but if that startup succeeds or exits it can be a very significant donation.

Galligan has already experienced the model first hand. He was the founder of Socialthing where he had committed 1% equity to the Community Foundation of Boulder. A year later Socialthing was acquired by AOL and he had all but forgotten about the 1% until it became the years largest donation to them.

Their goal is for “early-stage corporate philanthropy to become an integral part of the startup world. We believe that just 1% of equity can potentially lead to 1% of worldwide change. That change could bring about 1% of newfound hope in the world. And if that newfound hope brings about 1% of a difference in the world our mission has been solved.”

What do you think of the idea and will startups start handing over their 1%?

About the Author: Jared O'Toole

Co-founder and editor of Under30Media. You can send an email to Jared(at)Under30CEO.com. Follow him on Google+ or @JaredOToole

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Category: Startup Advice

  • Daretofollowyourdream

    My start-up is big on giving back….we’ve donated a few thousand dollars during this fiscal year (our first)….when it all comes down to it profit doesn’t matter if you haven’t helped others along the way. People might think it’s a silly way to do business, but in my book it’s the only way.

  • Rvolzer

    Sounds like a good idea. I run a massage clinic and have pledged to donate a medical massage and therapeutic massage tips to charity.

  • http://www.i95dev.com Henry Louis

    It seems to be very nice idea. I have very impressed with this post. Thanks for sharing this post.

  • Littlemissbusiness1

    I am starting a new business and I would like to donate a percentage to charity but I am afraid that 1% sounds like nothing since my business is custom made items and jewelry (I’m not going to be making enough for that 1% to be significant).  I think I will wait and see if I can gain customers/make money then I will definitely incorporate this concept.  However, with company’s like TOM’s shoes etc.  I think this idea of giving something back is becoming more and more popular.

  • Rusheel Bhana

    interesting coz iv just started a business and iv been thinking of contributing 3% of every sale to a charity of my choice. In that way i will get brand recognition and effectively grow my network, help and give back to the community, and effectively gain respect, as it the 3% will be stated in the quote. Is that not a good idea? i think its great. . . . def willing to sacrifice 3% of every sale. Pls comment wud love to hear what u guys think

  • Rusheel Bhana

    handing over 1% kind of seems like nothing. . . . .especially when its a start up