Beginning a successful venture means a lot to the individuals starting it, and with this concept in bloom, a lot more to the community from which it grew.
Great idea!
An excerpt.
Bob Shallit: Startups targeted as donors to charity
By Bob Shallit - Bee ColumnistPublished 12:00 am PDT Monday, October 23, 2006
Most companies wait until they're highly successful before becoming philanthropic.
But that's much too late, say several local business leaders. They've launched a foundation aimed at encouraging startup companies to develop a "giving" corporate culture.
"The goal is to get the entrepreneurs engaged in philanthropy at an earlier stage," says attorney Gilles Attia, who two years ago began forming a local chapter of the Entrepreneurs Foundation with venture capitalist Peter Gardner. They have since added tech backer Jim Schraith and banker Mark Lau as board members and recently hired Sharon Gerber as the group's executive director.
Under the EF model, young firms "bank" a small percentage of company stock. When their companies go public or are sold, the shares are converted to cash, which is used to create a charitable foundation.
Along with setting aside warrants or shares for the future, the companies are encouraged to participate now in community activities. (A Sacramento Food Bank collection drive this week is the new foundation's first event.)
Community involvement gives entrepreneurs and their employees familiarity with groups that might be worthy of their largesse down the road. It also fosters teamwork and help build strong corporate cultures, Attia says.
And it might help bond them to their community -- making them less likely to leave if their business gets sold.
