Fast Company's Adele Peters takes a look at the Founders Pledge, a Founders Forum for Good-backed, legally-binding contract that has approximately 200 tech start-up founders committed to donating at least 2% of their company's proceeds to a charity of their choice—if and when they exit the company. Some have pledged to donate as much as 25%.
The Forum's director, David Goldberg, was inspired to establish the pledge after his experiences running a different program that gave funding away to social entrepreneurs in the tech space, and as an altruistic initiative for entrepreneurs who sell their businesses for hundreds of millions of dollars.
"The thinking behind Founders Pledge was, if we can't help the people who care most be better at being businesspeople, why don't we help the best commercial entrepreneurs be more socially responsible?" Goldberg says. "It was really just sort of flipping the equation on its head and saying, let's work with a different caliber of entrepreneurs, and make it really easy for them to give back and do good."