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If you were the founder or CEO of a start-up company or later-stage firm, would you be willing to pledge 1 percent of your equity to charity? How about 1 percent of your profit? Or your products? Or your staff time? Pledge 1% is a global on-line movement that encourages and empowers companies of all sizes and stages to do just that. The founders of Pledge 1% believe that all companies have the capacity to give; it just takes the knowledge and flexibility to decide what way best suits a company’s values, culture, business goals and stage of development. If a company doesn’t have much cash or profit to give at an early stage of development, it’s possible that pledging 1 percent of your equity is a quick and easy way to get started. Businesses can pledge company equity at an early stage without diluting the value of the company, and this kind of pledge sets the tone for future funders and employees. Alternatively, founders can make personal equity pledges, which most likely will not require board or stakeholder approval. Another way to give without spending cash or pledging equity is employee time through volunteering in your community. This can be done through traditional hands-on volunteering like serving meals at a homeless shelter or cleaning up a waterfront in teams or individually. Or by encouraging employees to use their business skills (e.g., marketing, finance, technology) to help nonprofit organizations in their communities. One percent of a 40 hour work week is 20 minutes or about two days a year, so making this kind of pledge will motivate your employees to spend time making a difference in their communities. Likewise, pledging 1 percent of your products—either your products in full or by discounting your products for charities—can be an effective way of supporting nonprofit organizations in your community. Some typical ways of doing this, according to the Pledge 1% website are: tech products in existing form (via software or licenses), tech products in a form revamped specifically for nonprofit use, hardware or goods, and services. Pledge 1% counts 8,500 companies (mostly start-ups and early-stage firms) from over 100 countries as members. A few of these companies are highlighted on the organization’s website, including: In return, Pledge 1% lists the following benefits to companies for making a pledge: It’s completely up to the pledging company or individual to decide what nonprofit organizations and causes to support. Pledge 1% operates as a platform and resource provider, and does not promote specific charities or causes on its site. This piece was originally published on CSR Now!
Former President, American Express Foundation and Senior Vice President, Corporate Social Responsibility
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