ImpactAlpha, April 8 – Tech CEO Jack Dorsey said (via tweet) that he would move $1 billion of his Square equity, about 28% of his wealth, into a limited liability company called Start Small to fund global COVID-19 relief.
“After we disarm this pandemic, the focus will shift to girl’s health and education, and UBI,” or universal basic income, a once-fringe idea that is gaining traction as a COVID relief measure (Spain is rolling out its version).
The LLC structure, also used by Omidyar Network, Chan Zuckerberg Initiative and Emerson Collective, will allow the Square and Twitter co-founder to make both grants and impact investments. Unlike a philanthropic foundation, tax deductions can be only taken when funds are disbursed to charities or to the donor-advised fund Dorsey intends to establish.
Start Small’s first donation was $100,000 to America’s Food Fund, a relief effort launched last week by Leonardo DiCaprio and Laurene Powell Jobs.
Dorsey committed to transparency in the form of a public spreadsheet that shows nearly 20 million shares of Square at about $50 a share.
“Why now? The needs are increasingly urgent, and I want to see the impact in my lifetime,” Dorsey wrote. “I hope this inspires others to do something similar.”