A Good Option, a 501c(3)*, solicits donations of equity from early-stage US tech companies and their founders, senior employees, and investors, with the proceeds from eventual exits going to support US Jewish and Israeli charitable causes, among other non-profits. Every donor will be able to direct the proceeds to the 501c(3) organization(s) of their choice. We believe A Good Option can be both an additional source of funding for US Jewish organizations and Israeli non-profits (among others) and an effective way to engage the important young Jewish tech demographic in Jewish communal life.
*we haven’t applied for tax-exempt status yet, but expect to receive it.
The Tmura Story
A Good Option will be trying to replicate the success of Tmura, which launched in Israel 22 years ago. Tmura has received equity donations from 879 Israeli companies, with more joining weekly. And we've 'cashed in' more than NIS 110 million (approx. $30M) to date – from exits including Waze, Riskified, Outbrain, CyberArk, and many others – enabling us to support a broad variety of terrific and innovative Israeli youth and education non-profits. And we’ve done that with only one person - ever - on the Tmura payroll (Baruch Lipner).
The Good Option Team
Yadin Kaufmann, Founder & Chairman
Yadin is a long-time venture capitalist and social entrepreneur in Israel. After joining Athena, Israel's first venture fund, he co-founded Veritas Venture Partners (1990) and Tmura – The Israeli Public Service Venture Fund (2002). Separately, Yadin founded several initiatives to help create a Palestinian start-up ecosystem, including Sadara Ventures (2011), The Palestinian Internship Program (PIP) (2014), and The Palestinian Mentorship Program (PMP) (2020).
Yadin received his B.A. from Princeton, M.A. from Harvard, and J.D. from Harvard Law School, where he was an editor of the Law Review. He has been a member of the Board of Directors of the Anti-Defamation League (ADL) since 2019 and of the Board of Governors of The Hebrew University of Jerusalem since 2023.
Supporters
Donors – The following entities and individuals have committed to support part of Tmura’s start-up costs; additional donors are welcome:
Schusterman Family Philanthropies
Tmura
Pro bono services - AGO is grateful to the following generous pro bono service providers, who enable us to keep our overhead to a minimum:
Legal services: Morgan, Lewis & Bockius, LLP
Office space: Schusterman Investments, NY
FAQ's - For Donors
What is A Good Option?
A Good Option is a nonprofit organization established in 2024 to support charitable activities in the US and Israel, by sharing a portion of the wealth created by the US technology sector with worthy non-profits, with a focus on Jewish and Israeli organizations and on non-profits active in the fields of youth and education.
How does A Good Option work?
AGO receives donations of stock and stock options, mainly from early-stage companies and individuals involved with them. Once a company’s shares are liquid, AGO sells its holding and allocates the proceeds to worthy non-profits.
Who decides which charities to support once these stock options are converted to cash?
Upon a successful exit, each donor may direct the proceeds to a project(s) of its choice. Recipient organizations must have 501c(3) status (or the equivalent 46a status in Israel).
If the donor prefers not to “direct” its grant, AGO’s Grants Committee will allocate the proceeds to US Jewish non-profit organizations (40%); other US non-profit organizations, with a focus on youth, education, the environment and peace-building (40%); and Israeli non-profits (10%). AGO will retain 10% of the proceeds to help meet its own modest operating budget.
Who decides when to convert the stock options to cash?
AGO’s Board will decide when to convert the options the Fund has been granted and when to sell the shares. Generally, these options and shares will be liquidated at the earliest possible opportunity, in order to provide cash allocations to not-for-profit organizations.
Why donate equity through A Good Option?
AGO’s donor companies enjoy improved employee pride, morale and commitment, an advantage in recruiting and retention, improved corporate culture, increased visibility, and longer term, a stronger community in which to do business. And the knowledge that they are helping to develop US and Israeli society and improve educational opportunities for its youth.
Who should donate options or shares to A Good Option?
Mainly, Jewish start-up entrepreneurs, employees, angel investors, and VCs – but all are welcome.
How to support the launch of A Good Option?
AGO’s start-up funding is being generously provided in part by Schusterman Family Philanthropies and by Tmura. Morgan, Lewis & Bockius LLP is generously providing pro bono legal services.
Additional donors of cash (to cover the cost of an Executive Director) and services are welcome.
A Good Option expects to receive tax-exempt status under Sec. 501c(3).
How can my company contribute stock options to A Good Option?
The process is very simple. All you need to do is ask your board to approve a resolution granting the options and send us a copy of the warrant. Please contact us and we’ll be happy to help.
How many shares, or what dollar value, is required from each participating company?
The number of shares varies with every company, but it is almost always less than 1% of the outstanding shares (generally 0.5% – 1.0%). While no minimum number of shares is officially required, in order to make a significant impact upon a liquidity event, we request that you grant stock options a) equal to or greater than the number of options you would grant a senior engineer OR b) common stock valued at $50,000 (in the case of a very early-stage company) at the most recent investment price.
Is it appropriate for young companies to give stock to an organization like A Good Option?
Yes. For a small company, granting equity is a very effective way to leverage their community involvement and participate in something bigger. There is no cash impact on the donor company and the very minimal P&L impact is generally irrelevant at these early stages.
Will companies be required to give additional stock to A Good Option?
No. However, companies are welcome to make additional contributions in order to minimize AGO’s dilution following subsequent financing rounds.
What happens if a company never has a liquidity event and/or goes out of business?
These stock options or shares will be worthless. We hope you will consider making a grant from your next, more successful, venture as well.
If you have other questions regarding your contribution to A Good Option, please contact Yadin Kaufmann at yadin@agoodoption.org.