Jack Dorsey, founder and CEO of Twitter has announced he is moving $1bn of his total equity in Twitter to his foundation, Start Small LLC to fund global COVID-19 relief. Dorsey, who has a net worth of about $3.3 billion according to Forbes, announced the plan Tuesday on Twitter. He said the $1 billion represents 28% of his net wealth. The funds will be distributed through the Start Small Foundation, a donor-advised fund through the Silicon Valley Community Foundation.
“Why now? The needs are increasingly urgent, and I want to see the impact in my lifetime,” Dorsey wrote on Twitter. “I hope this inspires others to do something similar. Life is too short, so let’s do everything we can today to help people now.”
Here Is All You Need To Know
- According to a Google Doc that Dorsey set up to disclose his donations, the first funding he contributed was $100,000 on April 2 to America’s Food Fund, an initiative launched by Leonardo DiCaprio, Apple, Laurene Powell Jobs, and the Ford Foundation and backed by Oprah Winfrey to provide food to those in need during the coronavirus crisis.
- Dorsey said that “After we disarm this pandemic,” the focus of the fund will shift to two other causes: girl’s health and education and universal basic income. That’s because “I believe they represent the best long-term solutions to the existential problems facing the world,” he wrote. “UBI is a great idea needing experimentation. Girl’s health and education is critical to balance.”
- Jack Dorsey also explained that he is tapping into his Square holdings and not Twitter because “I own a lot more Square” and that he will need to pace sales of the stock “over some time.” He added, “The impact this money will have should benefit both companies over the long-term because it’s helping the people we want to serve.”
- Dorsey explained why is #startsmall is an LLC:
“This segments and dedicates my shares to these causes, and provides flexibility. Grants will be made from Start Small Foundation or the LLC directly based on the beneficiary org. All transfers, sales, and grants will be made public in tracking sheet.”
- Dorsey said the transparency is important to show his work “so I and others can learn.” He also said he had discovered and funded ($40m) many organisations with proven impact and efficiency in the past, mostly anonymously.
“Going forward, all grants will be public,” he said.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.