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Remember when Jack Dorsey said he would give away nearly a third of his stake in Square?
That was five years ago. Spoiler: He never did.
Why we should be asking @jack more questions about his new philanthropic promises, in my latest @techchronicle: https://www.sfchronicle.com/business/article/Jack-Dorsey-comes-out-as-a-philanthropist-15185885.php
That was five years ago. Spoiler: He never did.
Why we should be asking @jack more questions about his new philanthropic promises, in my latest @techchronicle: https://www.sfchronicle.com/business/article/Jack-Dorsey-comes-out-as-a-philanthropist-15185885.php
Here is @jack in 2015, promising to give away 40 million shares to a nonprofit foundation.
https://www.sec.gov/Archives/edgar/data/1512673/000119312515343733/d937622ds1.htm#toc937622_2
He never did.
He created a foundation, then dissolved it.
He lied to investors in Square’s IPO filing. But we should believe him now, because he’s “transparent.”
https://www.sec.gov/Archives/edgar/data/1512673/000119312515343733/d937622ds1.htm#toc937622_2
He never did.
He created a foundation, then dissolved it.
He lied to investors in Square’s IPO filing. But we should believe him now, because he’s “transparent.”
One more point: In forming an LLC, @jack gave $1 billion to himself. Unlike his previous promises to start a foundation, to which gifts would be irrevocable, he can take back the money anytime. So this is a serious step backwards in both philanthropic amount and form.
Oh, I guess I'm not done here ...
For all of his talk of transparency, Dorsey has indicated he will still use the least transparent form of philanthropy: a donor-advised fund. Click on the "Details" tab of his Start Small spreadsheet.
https://docs.google.com/spreadsheets/u/1/d/1-eGxq2mMoEGwgSpNVL5j2sa6ToojZUZ-Zun8h2oBAR4/htmlview
For all of his talk of transparency, Dorsey has indicated he will still use the least transparent form of philanthropy: a donor-advised fund. Click on the "Details" tab of his Start Small spreadsheet.
https://docs.google.com/spreadsheets/u/1/d/1-eGxq2mMoEGwgSpNVL5j2sa6ToojZUZ-Zun8h2oBAR4/htmlview
A foundation — which is what @jack originally said Start Small would be — must report its financial state and detail its grants in annual tax filing. A donor-advised fund has no such requirements.
A donor-advised fund yields an immediate tax benefit to the donor, but money or shares in the fund does not have to be immediately given to charity. It can just sit there, indefinitely, with no accountability for when or how it is spent.
Here's the Start Small Foundation's final statement on its brief, asset-less existence.
As a reminder, @jack said in Square's IPO filing that he had already transferred shares to this foundation.
Square later amended its filing to say the shares would go to a DAF.
As a reminder, @jack said in Square's IPO filing that he had already transferred shares to this foundation.
Square later amended its filing to say the shares would go to a DAF.
