FAQs

What is A Good Option?

A Good Option is a new NYC-based organization supporting Jewish tech givers in the United States by enabling early-stage companies and their founders, employees and investors, to become philanthropists by donating equity. A Good Option aims to provide additional funding for US Jewish and Israeli charitable causes, among other nonprofits, and to foster a community based on shared values and driving social impact.

How does A Good Option work?

A Good Option receives donations and pledges of stock and stock options mainly from early-stage companies and from the individuals involved with them. A company or an individual can choose to pledge to make a future equity donation or donate shares today. Once a company’s shares are liquid, A Good Option sells its holding and allocates the proceeds to worthy nonprofits.

Who decides which charities to support once these stock options are converted to cash?

Upon a successful exit, each donor may recommend which nonprofit(s) should receive the proceeds from their donation. Recipient organizations must have 501c(3) status (or the equivalent 46a status in Israel). If the donor prefers not to recommend recipient organizations, A Good Option’s Grants Committee will allocate the proceeds to US Jewish nonprofit organizations, Israeli nonprofit organizations, and other US charitable causes.

A Good Option will retain 10% of all exit proceeds to help meet its own modest operating budget.

Who decides when to convert the stock options to cash?

A Good Option’s Board will decide when to convert the options the Fund has been granted and when to sell the shares, in consultation with the donor. Generally, these options and shares will be liquidated at the earliest possible opportunity, so that we may make cash allocations to nonprofit organizations.

Why donate or pledge equity through A Good Option?

  • By donating early stage equity, donors can participate in philanthropy even before they have achieved liquidity. Donors also gain access to a unique community and to relevant programming, events and networking opportunities as well as increased visibility and PR.

  • A small commitment today can lead to a significant impact in the future, enabling you to leverage a portion of your future success to support your community. Partnering with A Good Option helps you or your company establish a clear intention to drive social impact and cultivate a culture of giving from the beginning of your journey.

  • Receive the benefit of a tax deduction. (For more information, please see the section above and consult with your own tax advisor.)

  • Companies benefit from improved employee recruitment, retention and sense of pride and mission.

  • By donating through A Good Option, you’re setting an important example for others and encouraging them to donate, thus becoming a leader in the tech giving community!

Who should donate options or shares to A Good Option?

All individuals and companies are welcome to donate through A Good Option. We are primarily focused on start-up founders, employees, angel investors, and VCs who are driven by Jewish values or interested in Jewish causes.

How many shares, or what dollar value, is required from each individual or company donor?

  • A Good Option does not require donors to donate a minimum number or dollar value of shares. We request that every donation have the potential to turn into a significant cash grant to the community in the event the company has a successful exit. 

  • For companies: We expect that most donations will be of less than 1% of the Company’s outstanding shares. The specific number will depend on the stage of the company, how much cash they’ve raised, and other factors. We ask that donor companies grant stock options (or shares) that have the potential to make the company a “Communicorn®” - a cash donation to the community of at least $1M - if the company succeeds. This generally implies a donation of options similar to what the Company grants a senior engineer.

  • For individuals: The specific number will depend on the individual’s equity stake in the Company, among other factors.

How can my company contribute equity to A Good Option?

Following Board approval, your company signs a Charitable Contribution Agreement (we have a template).

Please contact us and we’ll be happy to help.

How can I contribute personal equity to A Good Option?

There are two options:

  1. You can sign a Charitable Contribution Agreement (we have a template). In general, this may mean that you exercise the number of options you wish to donate, wait a year, and then donate the shares to A Good Option.  

  2. Or you can sign a Pledge Agreement in which you commit to donating (a specific number of options or shares) in the future. This may help to maximize your charitable deductions for income tax purposes.  

Please contact us and we’ll be happy to help.

Is it appropriate for young companies to give stock to an organization like A Good Option?

Yes. For an early-stage company, granting equity is a very effective way to leverage the company’s 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. We have found most investors to be very supportive.

Can I make a donation if my company hasn’t set up a stock option plan yet?

A company does not need an option plan in place in order for an individual or a company to donate or pledge to give equity, all they need is to add a line item to the cap table.

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 A Good Option’s dilution following subsequent financing rounds.

What happens if a company never has a liquidity event and/or goes out of business?

A Good Option will “write off” the equity donation - and hope that you decide to donate again from your next venture, which is sure to be a success!