What is the Entrepreneurs Foundation of the Capital Region?
EFCR is a 501(c)(3) nonprofit organization comprised of entrepreneurs, venture capitalists, investment bankers, accountants, attorneys, bankers, consultants, corporate leaders and public relations and marketing firms who have come together to encourage entrepreneurs and their emerging companies to support community needs.
What is our objective?
To engage entrepreneurs and their companies in philanthropy early on in their companies' paths to success.
Where does this idea come from?
In 1998, the Entrepreneurs Foundation of the Bay Area was launched in California by the leading venture capital firms: Mayfield, Kleiner Perkins and Sequoia. The brainchild of venture capitalist Gib Myers, EFBA has already signed up over 90 companies, liquidated stock worth more than $10 million, assisted a number of innovative non-profits and engaged over 6000 employees in corporate community involvement programs.
EFCR is founded on this proven model; we know that the Capital Regions entrepreneurial visionaries who have the courage and foresight to start new ventures are exactly the kind of people who will most want to give something back to their communities.
Who can join EFCR?
Both private and public companies can join at any stage. Size and/or duration in business do not matter.
Why join EFCR's network?
Joining EFCR gives companies a chance to give back to the community while enhancing the company's team building, recruiting, retention and morale. It provides a virtual "staff" member who focuses on developing a corporate community involvement program. Additionally, joining the EFCR opens the door to the rapidly growing network of Entrepreneurs Foundations across the United States and in Israel that includes more than 300 companies and dozens of venture capital firms and professional service providers.
What are some of the key benefits of joining the EFCR?
Your company can defer charitable tax deductions until the shares are sold, allowing the company the potential for maximum charitable deduction.
- Converts equity into philanthropic programs benefiting the community without the expenses of setting up a corporate foundation.
- Provides a vehicle for companies to make charitable giving part of their business plan.
- Makes the company a better place to work and the community a better place to live through involvement programs; enhancing team-building, recruiting, retention, morale and employee satisfaction.
- Publicity regarding community involvement for start-ups is inexpensive advertising.
- Networking opportunities with like-minded corporate philanthropists.
How does a company get involved?
A donation of equity to EFCR is required for a company to "sign-up".
How much time is required of participating companies?
We recognize the time and resource constraints facing most start-up companies. In the first year, EFCR requires very little time to develop a corporate community involvement plan. The level of corporate community participation varies by company, and is up to each company.
How much equity stock does EFCR get from each participating company?
One half of one percent of the outstanding shares is suggested; the actual number varies with each company. Seventy-five percent (75%) of the donated shares go into a donor advised fund from which the company recommends grant recipients. Twenty-five percent (25%) of the shares support our corporate community involvement program where we will work with the company to develop its community involvement program, and also support EFCR's operations.
Doesn't a contribution of pre-IPO stock by an emerging company have a very small impact on the community?
No. Quite the contrary. A participating company may contribute stock options when its valuation is low, but the ultimate value of the contribution, when realized, can make a truly meaningful impact.
Why would the board or future investors approve this concept and accept the dilution?
We've found that this seems to be more of a concern for the entrepreneur than for the actual investors. Remember that this program was started by the venture capital industry. Although your investors/board members have a fiduciary responsibility to their limited partners and fellow shareholders to maximize value, they recognize that a company with a strong culture of community involvement is a better company.
If I want to contribute cash, or would like to host an event that "benefits" the EFCR, could I do that? How would the dollars be used?
Yes we would not only love to accept your contribution but also appreciate your willingness to serve as an ambassador for the organization by sharing our name and mission with others. Donations will either be deposited into the EFCR endowment ensuring the continued operations of the organization or may be donated towards specific project efforts as indicated by the donor.
Is the EFCR "related" to other Entrepreneurs Foundations across the country?
Yes. We have an affiliation with several Entrepreneurs Foundations. We primarily benefit from the exchange of best practices and new ideas. Cities outside of the Capital Region hosting EF affiliates include: Atlanta, GA; Honolulu, HI; Tel Aviv, Israel; Boston, MA; Portland, OR; Austin, TX; and Houston, TX. The newest site is currently launching in Seattle, WA.