Project Karma

Project Karma is a nonprofit initiative that inspires and enables startup founders and business owners to donate some of their equity to charity, with the goal of creating a movement of founders and business owners who are committed to using their company stock as a tool to make a positive impact on the world. By providing resources, support, and inspiration to founders and business owners who want to give back to charity through equity donations, Project Karma aims to create a community of like-minded individuals who are committed to using their business success to make a positive impact on the world. The inspiration behind Project Karma came from a desire to make a positive impact on the world as early as possible, and not just wait until later in life. As a young founder, the founder recognized that their main asset and net worth was tied up in their company's stock, and they wanted to figure out a way to leverage this asset to give back and do good. They were inspired by leaders and personal heroes who shared similar values, and motivated to not only do this themselves, but also create a blueprint or template that others could follow, in order to multiply the impact and inspire many others to do the same. The vehicle for equity donations proposed by Project Karma is the charitable remainder trust (CRUT), which allows founders and business owners to donate their equity to a trust that will hold the stock and distribute the proceeds to charities of their choice within 20 years. This structure provides a personal financial benefit for the donor in the form of an annual income stream (if desired), and also allows the donor to claim a tax deduction for the fair market value of the donated equity. Project Karma's mission is to inspire and enable startup founders and business owners to donate some of their equity to charity, in order to make a positive impact on the world and create a culture of philanthropy in the entrepreneurial community.