‘1% of Nothing' Vows 1 Percent of Start-Up Equity to a Go
Patrick Walsh — November 15, 2011 — Lifestyle
References: blog.1percentof.org & techcrunch
‘1% of Nothing’ is a new company that allows startups to pledge one percent of their equity to a good cause. The hope is that the one percent could potentially grow to be a huge figure in the future. Therefore creating a revenue stream for the charitable cause they have selected. Individual employees can also make the pledge. It is run by Matt Galligan and Shervin Pishevar who had the idea after accidentally attending a philanthropy panel.
Galligan knows the potential of this scheme first hand as he pledged 1% of his first company ‘SocialThing.’ The company was subsequently acquired by AOL and that pledge became the single biggest donation to the ‘Community Foundation of Boulder’ for that year.
Moreover companies can also donate time or profits and along with giving back the entrepreneur also gets a tax write-off.
Galligan knows the potential of this scheme first hand as he pledged 1% of his first company ‘SocialThing.’ The company was subsequently acquired by AOL and that pledge became the single biggest donation to the ‘Community Foundation of Boulder’ for that year.
Moreover companies can also donate time or profits and along with giving back the entrepreneur also gets a tax write-off.
Trend Themes
1. Equity Pledging - The trend of startups pledging a percentage of their equity to a good cause, creating a potential revenue stream for charities.
2. Employee Philanthropy - The trend of individual employees making pledges to donate a percentage of their equity to charitable causes.
3. Corporate Social Responsibility - The trend of companies donating time, profits, or equity to support philanthropic causes while also benefiting from tax write-offs.
Industry Implications
1. Startup - Startups have the opportunity to leverage equity pledging as a disruptive innovation to generate revenue for charities and enhance their brand's social impact.
2. Philanthropy - The philanthropy industry can benefit from the trend of equity pledges, receiving potential significant donations and establishing long-term revenue streams.
3. Corporate Consulting - Corporate consulting firms can provide expertise on implementing and managing corporate social responsibility initiatives, helping companies navigate equity pledging and maximize tax benefits.
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