Pledge 1%

Pledge 1%
Founded: 2014

Mission: To make the community a key stakeholder in every local business.

About the Organization: Launched in 2014 on #GivingTuesday by Atlassian, Rally, the Salesforce Foundation, and the Entrepreneurs Foundation of Colorado, Pledge 1% is a corporate philanthropy movement aimed at changing the world through early–stage corporate philanthropy. The organization challenges entrepreneurs, executives, founders, venture capitalists, and companies  to support nonprofits in their local communities by donating 1 percent of their  equity, product, or employee time — or all three (1/1/1). To that end, the organization provides a turnkey solution that includes tools, best practices, and information aimed at making it easy for early-stage companies to incorporate philanthropy into their business model from the outset.

To date, more than five hundred companies ranging from small startups to post-IPO companies have joined the Pledge 1% movement, with 59 percent of participants pledging equity, 54 percent pledging employee time, 39 percent pledging product donations, and 18 percent pledging a portion of their profits.

Current Programs: Individuals and companies can pledge equity, employee time, and/or product(s) directly through the site, which includes a warrant form for setting aside shares and an allocation form for designating a cause, focus area, and/or nonprofit(s) to receive the realized value of the donated resources. Following an exit or liquidity event (such as an IPO or merger/acquisition), Pledge 1% exercises the warrant and liquidates the shares that have been set aside and then sends 100 percent of the cash value of those shares to the designated nonprofit(s). Because Pledge 1% is fully funded by its founding partners, all realized benefits from pledges made through the site go to the causes or nonprofits designated by the pledgees. Companies also have the option to make an additional donation to the organization following an exit or liquidity event.

Website: Visitors to the Pledge 1% site can learn more about the pledging options available to them as well as how to create a culture of giving in their companies; browse a list of companies that have pledged 1 percent; and/or learn more about the Pledge 1% movement. Those interested in making a pledge can browse resources, case studies, and best practices tailored to early-stage, mid- to late-stage, and post-IPO companies or fill out a pledge form, while those who already have pledged can update their list of designated charities.

Funding: Pledge 1% is fully funded by its founding partners — Atlassian, Rally, the Salesforce Foundation, and the Entrepreneurs Foundation of Colorado.

FEATURED NPO SPOTLIGHT

July 10, 2018