‘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.