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How to Pledge 1% of Equity

Pledge 1% of Equity

Pledging 1% of equity can be one of the most effective ways to give as a company—and one of the easiest to execute as an early stage company. There are just a few quick steps required to process the pledge and after that, your giving will naturally grow as your company does. Pledge 1% of equity today, then we’ll follow up with template paperwork and everything else you need to complete your pledge.

Ways to Give Equity

There are a couple of options to consider when pledging equity. You can pledge:

It’s important to note that pledging equity does require formalization through legally-binding paperwork. You may want to seek financial/legal advice before moving forward. With that said, we’ll provide you high-level guidance on the equity allocation process in your country of incorporation, options for where to hold your equity (i.e. Donor Advised Fund or private corporate foundation), and key considerations to take into account before finalizing your pledge.

Where to Start

If you are at an early stage, finalize your company equity donation as soon as possible. The sooner, the better from an ease of execution standpoint!

If you are a late-stage company, we recommend connecting with existing companies who have gone through this process to learn from their experience. We would be happy to intro you to other Pledge 1% members who have gone through this process at a similar stage and who can guide you on next steps.

No matter your company’s stage or size, take the pledge as the first step today.

Member Highlight: Twilio

Twilio

Twilio started by giving product from their communications platform to social impact organizations. They also launched an employee volunteer program through Twilio.org. But they had a larger vision and idea to give back: impact investing.

To scale, Twilio pledged 1% of equity over the next 10 years and launched a Donor Advised Fund [DAF] at Tides to hold and protect the assets of Twilio.org. Through grants and strategy investments, Twilio is working with partners around the globe to have a major impact, including Omidyar Network, Kapor Capital, Village Capital and Draper Richards Kaplan Foundation, as well as Fast Forward Accelerator and the Bill & Melinda Gates Foundation. These partnership have not just allowed Twilio to invest more, but has enabled organizations to learn as they invest, so they get the benefits of expanding and tailoring their social impact strategies and social enterprises get access to investments. It’s a mutually beneficial system that’s having a great impact.

“We launched the Impact Fund to support both nonprofits and social enterprises. We want to do even more to deploy capital and provide access to communications that will scale impact, but to do impact investing well--we needed partners with more experience.”

— Erika Balbuena, Head of Strategic Initiatives, Twilio.org

See a full list of companies who have pledged.