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Notable Track Record. Since 1999, over 175 high-growth companies in Central Texas have donated equity to the Entrepreneurs Foundation of Central Texas. So far, these donations of equity from predominantly venture capital-backed companies have generated approximately $1.4 million in cash and marketable securities for local non-profits. Our current portfolio contains equity from over 100 active companies.
Smart Companies Plan for Success. Growing companies, particularly within the technology sector, are uniquely positioned to benefit their community. Early on, startups face constraints of time and funds, but the upside to their business success is boundless. With a contribution of corporate equity to the Entrepreneurs Foundation of Central Texas, a company creates a nest egg that can fund its future community investment without impacting future corporate earnings or operating cash.
Cost-Effective Solution: Alternative to a Corporate Foundation. The Entrepreneurs Foundation of Central Texas hosts and manages the proceeds stemming from donated corporate equity. Once the donor company has a liquidity event (e.g., by acquisition or initial public offering), the foundation exercises and/or sells the equity, with proceeds deposited into a unique corporate donor-advised fund.
Through the company’s donor-advised fund at the Entrepreneurs Foundation of Central Texas, the company retains the ability to recommend how the fund is used and what charities the fund can support. The company also sets up its own schedule on when to distribute proceeds. A donor-advised fund at the Entrepreneurs Foundation of Central Texas is a corporate foundation without all the paper-work and costs associated with operating one.
Strengthen Corporate Culture. An equity donation to the Entrepreneurs Foundation of Central Texas literally gives the community a stake in the company’s success, publicizing a “culture of giving” even when current conditions do not provide for cash-based contributions. The donation markets even the earliest-stage company as deeply invested in its community and poised to share its business success.
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