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About What is a stock-tithe? The founders and seed investors of a new company sign an irrevocable contract that pledges to transfer 10% of their stock to a non-profit at a future date, typically 3-6 years after the company is started. Integrated:: This model creates an organization in which the worlds of business, philanthropy, and faith are integrated in an appropriate way thoughts.
Such a holistic approach may not always be easiest, but it is hard to argue that having these three important dimensions of one's life in synch wouldn't be good for all involved. Keeping things separate might be expedient, but how much energy is then exerted in the long-run, reconciling the dissonance that results from living in a world where major parts of one's life are not in harmony? As is often the case, the best long-run solution may be the one that appears harder in the short-run. Non-profit vs. for-profit:: Another interesting aspect of the stock-tithe is that it creates a hybrid—an organization somewhere between between non-profit and purely for-profit, as illustrated in the continuum shown here.
This is yet another way the stock-tithe creates an appropriate balance with some significant advantages: 1. It gives job-seekers deciding between the worlds of non-profit and for-profit, a third option. 2. There are many terrific models that integrate business and philanthropy. Each has it's pros and cons. For example, Newman's Own is essentially a non-profit competing in a traditionally for-profit industry. The company has given significant sums to great causes, but in some industries (or if your name isn't "Paul Newman") it is difficult to raise capital when 100% of the profits are being given away. (models compared) The more modest 10% of founding stock (a) allows follow-on investors to choose whether to participate in the stock-tithe or not, and (b) the case can be made (read it here) that the benefits of doing so more than offset the 10% cost, even on later-stage investments. It is also important to note that in many ventures a large portion of the eventual value created accrues to the founding stock. The entity created though a stock-tithe is fully a free-enterprise company and is subject to all the competitive forces of commerce while also having a non-profit "nugget" embedded within it. Success to significance? Many people are deciding at mid-life these days to follow a successful career in business with a commitment to non-profit or faith-related activities.
The stock-tithe, again, gives those considering this move an additional option. Success is of course not guaranteed, as with any new venture, but the opportunity to pursue both at once is perhaps the highest calling in business.
StockTithe.org—is maintained by Civicom and volunteers. To contact us, send an email to info@stocktithe.org, or call David West at 203-618-1811.
Thanks for your interest. more
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